President Muhammadu Buhari struck a cord with Nigerians recently when he hearkened to the voice of the people to shelve the proposed hike in the pump price of petrol to about N400 per litre under the guise of subsidy removal, Following the outcry by Nigerians across the divide, Buhahri took the path of honour and finally passed on the controversy around the desirability or otherwise of the fuel subsidy removal to his would-be successor in 2023.
And if the proposal sails through before the National Assembly that is expected to give it some legal bite via an amendment to the Petroleum Industry Act (PIA), then the subsidy may be taken out by July 2023, barely one month after a new administration must have been inaugurated.
The federal government dropped the hint penultimate Tuesday while providing insight into the reasons the subsidy remains despite an earlier position that it would be removed by the end of June. It said the president insisted all the necessary structures be put in place to cushion the effects of the removal in 18 months’ time.
Minister of State for Petroleum Resources Timipre Sylva announced this while briefing State House Correspondents in Abuja after a meeting with the president. He said the structures, as pointed out by the president, were not yet in place, adding that with Buhari’s intervention, petrol subsidy is not on the table for now.
The minister said the government would continue to engage the leadership of the organised labour who had earlier proposed nationwide protest on January 27 against the subsidy removal. The minister said the executive would propose 18-month extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA) that was meant to kick-start this month.
“We don’t intend to remove subsidy now. That is why we are making this announcement. We also see the legal implication. There is six-month provision in the PIA which will expire in February and that is why we are coming out to say that before the expiration of this time, as I said earlier, we will engage the legislature. We believe that this will go to the legislature; we are applying for amendment of the law so that we would still be within the law.
“We are proposing an 18-month extension, but what the National Assembly is going to approve is up to them. We would approve an 18-month extension and then it is up to the National Assembly to look at it and pass the amendment as they see it.
“Somebody mentioned here the possibility of gradual increase that is not on the table as well. Gradual or increment in whatever guise is not on the table. We are going to see how to rejig the law. This is not going to be the only amendment to the PIA. A few months ago, the president already proposed an amendment to the law,” Sylva said.
President Buhari had on August 16, 2021, signed the Petroleum Industry Bill into law. Buhari’s assent was in furtherance to the passage of the Bill by both the Senate and the House of Representatives earlier in July 2021.
The minister’s clarification came on the heels of the statement by Senate President Ahmad Lawan that President Buhari did not direct government officials to remove petrol subsidy. He told journalists after a meeting with the president that Nigerians are concerned about the consequences of fuel price hike should subsidy be removed.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, said in October last year that the federal government has only made provision for petrol subsidy for the first six months of 2022 as it looks forward to a complete deregulation of the sector.
But Lawan said the lawmakers had interacted with their constituents during their recess and were of the view that the burden of fuel subsidy removal shouldn’t be passed on to Nigerians.
“We’ve just finished our recess, we had gone home to our constituencies and senatorial districts. And we felt the pulse of our people. And I found it necessary to visit Mr. President, as the leader of our government and our leader in the country, to discuss this particular issue of concern to Nigerians, and I’m happy to inform Nigerians that Mr. President never told anyone that the petroleum subsidy should be removed.
So, I want to commend Mr. President for still keeping this philosophy of ensuring that the most ordinary Nigerian does not suffer in any way. Government is meant to serve people. And the essence of government we all know is to protect the lives and property and welfare of the people. And that federal aspect is part of the welfare.
If anything, the suspension of the removal of the so-called petrol subsidy is a masterstroke by Mr President against the subsidy cabal in the Nigeria’s oil and gas sector. In fact, the PIA will remain a mere paper tiger if the massive fraud in the petroleum sector remains unchecked. President Buhari may have, indeed, given Nigerians a memorable parting gift as he completes eight years reign on May 29, 2023.
