The All Progressives Congress (APC) transition committee has asked President Muhammadu Buhari to work out “detailed and coordinated” plan to remove subsidy on premium motor spirit (PMS), otherwise known as petrol.

The advisory body, whose report is expected to influence the policy direction of the new government, also recommended that kerosene subsidy should be scrapped immediately.

While kerosene is officially N50 per litre, the end users pay as much as N150 despite the existence of subsidy — a case of double jeopardy for the government and consumers but a source of massive income for marketers and fuel import contractors.



The committee also asked Buhari to privatise the nation’s four refineries by adopting the Nigerian Liquefied Natural Gas (NLNG) as a model.

NLNG is jointly owned by the Nigerian National Petroleum Corporation (NNPC) 49%, Shell Gas B.V. 25.6%, Total LNG Nigeria Ltd 15% and Eni International 10.4% — but it is not managed by the Nigerian government, unlike the nation’s refineries which are solely managed by the NNPC.

These recommendations, in a report seen by TheCable, are intended to “eliminate waste and redirect resources to fuel development, growth and job creation”, according to the committee headed by Ahmed Joda, former super perm secretary.

Fuel subsidy, which gulps billions of dollars every year, has been a very volatile issue in Nigeria’s political economy since the mid-1980s, leading to riots and demonstrations because of the resultant increase in pump prices of petroleum products.

But with dwindling oil revenue, ballooning subsidy claims and growing national debt, there is an emerging consensus that the expenditure can no longer be sustained.

Attempts by the administration of former President Goodluck Jonathan to remove the subsidy in 2012 were greeted with nationwide protests amidst allegations of scam in payments to marketers running into trillions of naira. Jonathan eventually reversed the policy.
Fuel Queue Kegs

Nigerians queue endlessly for kerosene

Federal government currently owes oil marketers over N200 billion, a development that recently resulted in a nationwide fuel crisis as they cut down on importation.

With another N400 billion owed in salary arrears to federal workers, the Joda committee has asked Buhari to pay arrears of salary and fuel subsidy, “failing which it could lead to mass labour unrest which could undermine the goodwill of the Administration”.

The committee recommended that all outstanding subsidy liabilities should be audited and the verified claims paid to marketers to “ensure PMS is readily available to the market to avoid further fuel queues”.

Other key recommendations concerning the oil and gas sector include:

Reviewing all Nigerian Petroleum Development Company (NPDC) operations and agreements especially the Strategic Alliance Agreements executed with third parties. This is to recoup any unearned royalties, taxes and any potential over-lifting under these agreements. This is one of the issues raised in the recent KPMG audit of NNPC.
Reviewing all pioneer status granted and tax waivers and renegotiating or revoking concessions granted in order to recoup unpaid taxes. The Nigerian Investment Promotion Council (NIPC) was recently accused of indiscriminately granting pioneer certificates which led to an estimated loss of $20 billion revenue over five years.
Commencing a full scale reorganisation and restructuring of NNPC and its subsidiaries to reposition it as a globally competitive national oil company and “significantly enhance reserves, output and revenues while creating major linkages with other sectors of the Nigerian economy”.
Incorporating the existing joint ventures (JVs) and reducing federal government stake to 49% “which should be on the listed on the Nigerian Stock Exchange”. This is expected to raise significant revenue from asset sale, relieve the government of the burden of cash call obligations and facilitate investment for accretion of reserves.
Commencing an audit of all Offshore Processing Agreements and Crude Swap Agreements entered by NNPC to identify and claim any reimbursements for excess crude lifted vis-a -vis products delivered based on a fair and transparent audit process.
Providing relevant security hardware and personnel to eliminate vandalism to critical pipeline infrastructure and unauthorised offshore vessel loading.

The Joda committee submitted its report on June 12, recommending, among other things, that Buhari should reduce the number of ministries to 19 from the current 28

http://www.thecable.ng/exclusive-transition-committee-proposes-removal-fuel-subsidy

Hello..
That one nor concern me...Wat many Nigerians knw is that they don't want to by fuel above 100naira infact if fuel subsidy will be removed and fuel price will reduce better...




And I also want to dedicate dis ftc to all supporters of change...and buhari sud knw that we don't have time...if I wanted to be patient I wud have voted for jonathan...
We are seeing change already sha...

please do the needful cc: l

The removal of subsidy would reduce corruption of public officials drastically

In PMB's voice: "I don't know wgat fuel subsidy means".

In other words, subsidy is a scam that PDP and GEJ used to milk the nation dry.

]Booking space is so easy these days that I'm even tired of it

[size=20pt] confused government[/size]

How I wish our so call leaders can come here on nairaland to go through some comments about their stupidity, act, and at times their disgusting plan for masses, maybe that could be of help for them all.

But I doubt if they know or heard of nairaland.

At times some nairalander no dey talk sense and that baffle a lot sef

Iyanga dey im own, una go dey find im trouble. Cc: Oando and Forte

Hmmm

Ohk

watever

Subsidy must go shikena.

Shout Change

Change!


U can do better!

Change!!



Again


Change!!!

That's all, but thought the Refineries will all start working next month? So what's d subsidy about?


ThefakeStan

Is ok

Nothing new here, your slaves protested against these same decisions in 2012.

i support

I opposed the motion in d past regime not because I didn't believe it was needed not to be removed but because I trusted nothing that that govt brought forward.
Now this Buhari govt, if he says removal of subsidy is the best for the country, so be it.

Summary: Life is about trust

What wld b d price of fuel if d subsidy is remove and wat are d assurance that we can trust d Govt with removal simple

Was it not same bloody thing Jonathan was doing? Tell me one thing Buhari has done differently apart from snapping photos like Kim Kardashian everywhere he goes.

Why are Nigerians so so gullible? Why? Na swear? Just this morning one 700 naira per day APC agent attribute turn around maintenance performed by Jonathan to Buhari and typical of the illiterates in Nigeria headed by a chief illiterate they swallowed it hook, line and sinker.

Please I beg you all o. Some of you may be too old already and almost irredeemable but please in God's name make sure your children go to school. Good school so they can know propaganda from fact. Please let's educate the next generation please.[

Good move

Ok
Its not as though nigerians really wanted the subsidy to stay during GEJ era, they only doubted the sincerity of the govt to put the funds to good use.

Now dat we have a new govt dat promising accountability , we manage to take the risk and walk this path

The horrors of fuel scarcity in the last two months is still a dripping wound in our memory

However if this govt "marsh" line by going back on its promise, we still know where our voters card dey

hmmmmm











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This is a welcome development.

I dont mind this decision, if they have thought about it carefully.

I only insist that any announcement of fuel subsidy removal must start with a sincere apology to GEJ for the hypocrisy we witnessed in Jan 2012 from the APC led opposition at Ojota.

Cest Fini!!!

which subsidy again? I thought they said they don't know any thing about subsidy? So, what are they planning to remove? Hypocrite every where? Mtcheeeew. let me go and look for some thing to eat jooor.