National Economic Council Reveals When FG Will Take Final Decision on Subsidy Removal

National Economic Council Reveals When FG Will Take Final Decision on Subsidy Removal

  • Members of the National Economic Council have said that there would be a final decision on the removal of subsidy until June 2022
  • The announcement was made by the governor of Nasarawa state, Abdullahi Sule on Thursday, January 20
  • Sule's announcement was also collaborated by his colleague from Edo state, Governor Godwin Obaseki at the State House

The National Economic Council on Thursday, January 20, said that any decision to remove fuel subsidy would be taken by the Nigerian government in June.

Daily Trust reports that the council said the decision on subsidy removal would only be possible when the provision for its payment in the 2022 budget expires.

Speaking on the subsidy removal, the Nasarawa state governor, Abdullahi Sule, said it is expected that the Nigerian National Petroleum Corporation (NNPC) Limited run differently since it is now a limited liability company.

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National Economic Council meeting
The NEC meeting was attended by the governors of the various states across Nigeria
Source: Twitter

Sule who was responding to inquiries from State House Correspondents, Sule said it is understandable that the provision for the payment of the subsidy is made in the 2022 budget only until June.

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Joined by his Edo state colleague, Godwin Obaseki, during the press briefing, Sule said the council was yet to take a position on it despite its series of deliberations on the matter.

Vanguard reports that in his contribution, Obaseki said Premium Motor Spirit (PMS), which sells for N162-165 per litre in Nigeria, sells a hundred per cent higher in other countries.

He also said that the Nigerian government is spending about N2 trillion on petroleum subsidies - which he said could have been used for other purposes.

Obaseki also said that the council is wondering whether that should be allowed to continue in a situation where he observed that only two-thirds of the states of the federation consume the subsidy.

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The maiden council meeting for the year 2022 was presided over by the vice president, Yemi Osinbajo.

Subsidy removal and 3 other tough economic decisions by FG that may impact You heavily in 2022

There are tough economic decisions that the Nigerian government has lined up in 2022, all of which aims at the citizens.

The year ahead is predicted to be difficult as the government plans to dig into the pockets of Nigerians to make more money.

Among the decisions by the federal government are an aggressive tax drive and fuel subsidy removal which many fear may worsen things.

Coalition declares support for fuel subsidy removal by Buhari’s govt

Nigerians have been advised to be in tandem with the policy direction of the federal government in respect of the issue of fuel subsidy removal.

The advice was given by 100 community-based organisations, and grassroots-oriented institutions working in the civil society space.

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Updated: Fuel price may soon rise as NEC reportedly gives new recommendation

The groups stated that with the underlying reasons given for subsidy removal by the government, the policy will ensure the delivery of democratic dividends to Nigerians.


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