The removal of the fuel subsidy will be the worry of the next Nigerian government as the Federal Government says it would approach the National Assembly with a Bill to delay the implementation of the Petroleum Industry Act for another 18 months.

What this means is that the incoming administration will have to worry about fuel subsidy removal as the President Muhammadu Buhari-led regime would have elapsed before then.

With this, the Buhari-led administration would be dumping the responsibility of taking a decision on removal of the fuel subsidy to the next government.

The Minister of State for Petroleum Resources, Timipre Sylva, disclosed this at a press conference on Tuesday in Abuja, and confirmed the temporary suspension on the proposal to eliminate payment of fuel subsidies.

The minister disclosed that the government was planning to send a Bill to the National Assembly for an amendment of the Petroleum Industry Act (PIA) with a proposal to extend its implementation by 18 months, a period by which the present administration would have handed over power to another administration.

“The NNPC limited and any of its subsidiaries shall conduct their affairs on a commercial basis in a profitable and efficient manner without recourse to government funds. The organisation shall retain 20% of its funds to grow its business,” a section of the PIA read.

During the conference, Sylva stated that there was already a provision within the PIA which empowers the Federal Government to effect the total removal of fuel subsidies.

However, this mandate had to be suspended due to the lack of requisite infrastructures necessary to mitigate its effects on the populace.

“There is already a provision in the law but because President Muhammadu Buhari is concerned about the plight of the people, he believes that the impact the removal of subsidy will have on the people should be mitigated by putting the right structures in place — these structures are not in place.

“The modalities to ensure refineries are revamped are in place. The Dangote Refinery will commence at the end of the year; the Port-Harcourt refinery will also be functional at some capacity.

“There is a scheme to ensure the introduction of auto gas for automobiles with the conversion of one million cars by April with corresponding stations. We have discussed with manufacturers who are willing to set up the requisite infrastructure so it is a 50-50 arrangement which has been concluded.

“Thereafter, Nigerian marketers will be able to access the funding in order to ensure a widespread ripple effect. All these will come together before the removal of fuel subsidy.

“All these have to be in place before the removal of subsidies; also the introduction of palliatives by the Finance Minister.

“Therefore, the time is being extended which is not specific but subject to discussions to National Assembly and amendment of the PIA. At this moment, fuel subsidy removal is not on the cards,” the Minister explained.

He also implored Nigerians and stakeholders to desist from panic-buying and hoarding of fuel products which informed the need for an explicit clarification of the mandate and timeline by the FG.

“I noticed some queues building up and this is not natural due to the actions of profiteers who begin to hoard the fuel; all these informed the need for the panic buying which is why the FG had to issue this clarification in order to allay the fears of the populace.

“This reversal is not because of the upcoming elections but due to the need to ensure there are measures in place to mitigate the effects on Nigerians.”

https://newsroundtheclock.com/the-federal-government-has-shifted-the-removal-of-fuel-subsidy-to-the-next-government/

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