By Egena Sunday Ode
The Federal Government is proposing an 18-month extension to the National Assembly for the implementation of Petroleum Industry Act, PIA.
This suggests that the proposed removal of fuel subsidy may not happen within the life span of the President Muhammadu Buhari administration as the 18 months will lapse in July 2023, a month after the current government would have exited.
This decision followed angry reactions and protests plans by Nigerians, led by the organised labour against alleged moves by the government to remove fuel subsidy, which would have jerked up the price of petrol.
Specifically, the Organized Labour comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have begun mobilization nationwide for a total shutdown of the country effective from January 28 to protest the subsidy removal, saying it will further worsen the living standards and destroy livelihoods of Nigerians especially the poor.
In a swift reaction to avert the looming strike and it’s consequential effects, the Petroleum Ministry quickly announced the suspension of the subsidy removal on Monday.
Recall also that last week, the President of Senate, Ahmad Lawan, after a meeting with President Buhari at the Aso Rock Presidential Villa, Abuja, told newsmen that the President did not order anybody to withdraw petroleum subsidy.
Lawan said he had gone to meet the President over the displeasure of his constituents on the proposed subsidy removal.
Addressing State House Correspondents at a special briefing in respect of the subject matter, the Minister of State for Petroleum Resources, Timipre Sylva, the 18-month extension would enable the government to put in place all necessary palliatives in order to cushion the effects of the policy.
By the provisions of PIA, petroleum subsidy would have been removed by government in six months when the Act comes into effect in February.
President Buhari had on 16th August 2021 signed the Petroleum Industry Bill into law.
Buhari’s assent to the bill was in furtherance to the passage of the Bill by both the Senate and the House of Representatives earlier in July 2021.
The PIA is expected to grow investors’ confidence in Nigeria’s Petroleum Industry and create more employment opportunities for the populace in the host communities.
Sylva who emerged from a meeting with President Muhammedu Buhari, and the NNPC management team to address newsmen said the President has approved the suspension of the removal of fuel subsidy meant to be effective from June this year, until further notice.
He explained that the suspension, is to give all the stakeholders time to ensure that the implementation is carried out in a manner that guarantees that all necessary modalities are in place to cushion the effect of the PMS subsidy removal.
Sylva said: “President Muhammadu Buhari has agreed to an extension of the statutory period for the implementation of the removal of subsidy on petrol (Premium Motor Spirit, PMS) in accordance with extant laws.
“However, following extensive consultations with all key stakeholders within and outside the government, it has been agreed that the implementation period for the removal of the subsidy should be extended.
“This extension will give all the stakeholders time to ensure that the implementation is carried out in a manner that guarantees that all necessary modalities are in place to cushion the effect of the PMS subsidy removal in line with prevailing economic realities.’’
On the likely effects of the subsidy removal on livelihoods of the poor,
The Minister added: “The President assures that his administration will continue to put in place all necessary measures to protect the livelihoods of all Nigerians, especially the most vulnerable.’’
On the fuel queues that have resurfaced at filling station across major cities, he advised Nigerians to stop hoarding fuel shun panic buying as government has no plans to remove subsidy, “We don’t intend to remove subsidy now. That is why we are making this announcement,” he said.
On the possible legal implications arising from non implementation of the PIA after President Buhari had duly assented to it, the minister said:
“We also see the legal implications. There is six months provision in the PIA which will expire in February and that is why we are coming out to 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 some amendment of the law so that we would still be within the law.
“We are proposing an 18months extension but what the National Assembly is going to approve is up to them. We would approve an 18 months extension and then it is up to the national Assembly to look at it and pass the amendment as the see it.”
Asked if the suspension has anything to do with 2023 elections, he said: “Of course not. As I told , first it’s just the human face of the government, Mr. President especially wants certain structures to in place. And he insisted if we want to remove subsidy, we must make sure that we put every measure in place to protect the suffering masses of Nigeria. That is the President’s insistence. So we are now taking steps to ensure that these processes are in place. And this now gets into the labor engagement that you are talking about.
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