The removal of petrol subsidy in Nigeria has sparked a lot of controversy and discontent among the citizens, especially workers and vulnerable groups who depend on affordable fuel for their livelihoods.
The National Economic Council (NEC), chaired by Vice President Kashim Shettima, has been working on finding solutions to mitigate the impact of the policy on the masses.
After a marathon meeting that lasted over five hours yesterday, the NEC announced two forms of allowances that could ease the burden of petrol subsidy removal: a living cost allowance and a petroleum allowance.
The living cost allowance is based on the demands of Labour and was recommended by the National Salaries, Incomes and Wages Commission. It amounts to over N702 billion and is meant to cover the increased expenses of workers due to the petrol subsidy removal.
The petroleum allowance, on the other hand, is a monthly payment that ranges from N23.5 billion to N45 billion, depending on the available funds for distribution. This allowance is aimed at subsidizing the cost of petrol for workers and vulnerable groups.
The NEC also discussed other palliatives that could help reduce petrol costs, such as obtaining funds from the World Bank and its London partners to implement the Federal Government’s Compressed Natural Gas (CNG) programme. CNG is a cheaper and cleaner alternative to petrol that could benefit both the environment and the economy.
To work out the modalities for the deployment of the two types of allowances, the NEC constituted a committee headed by Kebbi State Governor Nasir Idris.
The committee has two weeks to complete its assignment and report back to the council. The committee comprises representatives of six geopolitical zones, as well as representatives of the Budget Office of the Federation, CBN, Office of the Attorney-General, among others.
The meeting between the NEC and Labour was preceded by an inauguration ceremony where President Bola Tinubu charged the council members to work with his administration to revive the economic fortunes of Nigeria and its citizens.
Tinubu had declared in his May 29 inauguration speech that the era of subsidy was over, prompting Labour to threaten a strike action.
However, Labour suspended its planned strike after the Federal Government promised to work out measures to minimize the impact of the policy on the masses. The meeting between the Federal Government and Labour will resume on Monday.
