How Tinubu Can Cushion The Effect OF Fuel Subsidy Removal
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News - June 1, 2023

How Tinubu’s Government Can Cushion The Effect OF Fuel Subsidy Removal

The House of Representatives has urged President Bola Ahmed Tinubu’s government to roll out palliatives and other measures to cushion the effects of the removal of the PMS subsidy on Nigerians.

This formed part of the recommendations presented by the House Ad Hoc Committee while deliberating on the motion titled, ‘Need to Investigate the Petroleum Products Subsidy Regime in Nigeria from 2017 to 2021’ during the plenary session today.

The report was presented by the Chairman of the committee, Ibrahim Aliyu, 11 months after the task was assigned to the panel. This comes after queues reemerged at various fuel stations across the country, following the stoppage of the subsidy on PMS.

Reps offer recommendations to Tinubu

First, The committee asked the government to outrightly remove subsidies on all petroleum products. Second, the reps noted that the government should provide Compressed Natural Gas buses as an alternative transport system with cheaper fuel consumption.

Also, the panel counselled that they should introduce intermodal, regional and national transport systems to ease the mass movement of people across the country.

Importantly, they suggested that the Nigerian Midstream and Downstream Petroleum Regulatory Commission should “issue stricter and most appropriate regulations as provided in the Petroleum Industry Act to ensure that Nigerians are not short-changed through profiteering.”

The report further noted that Tinubu’s administration “should, as a matter of urgency, liaise with the National Assembly to fashion out critical areas of economic development, in which the additional revenue from the proposed subsidy removal will be appropriately utilised.”

It reads in part, “With the subsidy removal, the Federal Government should forthwith suspend all Direct Sales Direct Purchase (oil swap) contracts. NNPCL should act by the provision of the PIA to ensure that the country is not sub-changed in both production, lifting, and sales of crude.”

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