Decision on petrol subsidy removal to be made known by June – NEC

The National Economic Council (NEC) has asked Nigerians to expect a decision on petrol subsidy in June, when the provision for its payment in the 2022 budget expires.

Governor of Nasarawa State, Abdulahi Sule gave the update on behalf of the NEC, after a meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

Sule who was joined at the post-NEC press briefing by Edo state Governor Godwin Obaseki, noted that the Nigerian National Petroleum Corporation (NNPC) must be run differently since it is now a limited liability company, Tribune Online reports.

Revealing that the federal government spends about N2 trillion on petroleum subsidy, an amount which can be used for other things, Sule added that the NEC wondered whether that should be allowed to continue in a situation where only two thirds of the states of the federation consume the subsidy.

He asserted even though NEC has been having conservation on the matter, it was yet to take a position on it.

Also, Obaseki pointed out that Premium Motor Spirit (PMS), which sells for N162-165 per liter in Nigeria, sells a hundred percent higher in other countries.

The Edo governor stated: “As you all know and aware, the issue of subsidy has been one matter that NEC has deliberated on, for more than a year now. There was an ad-hoc committee, which was set up by NEC headed by Governor El-Rufai that included members of the executive arm of government.

”This committee worked on recommendations as to what we should do about the costs of PMS locally because as you realize, as has been told us, the cost of PMS in Nigeria today is about N162 per liter. Whereas every other country surrounding Nigeria is selling the same product at more than 100 percent of the cost in Nigeria.

“And the country as at last year spent in excess of almost I mean, we need to have the exact figures, but we must have spent almost N2 trillion subsidizing petroleum products. That is money that could have gone into building roads, money that could have gone into healthcare and education.

“So for NEC, the arguments have been put out, should we continue this regime of spending money we do not have to subsidize the living standards of only mostly those who have vehicles?”