Nigerian President Muhammadu Buhari, has approved the immediate suspension of fuel subsidy removal until further notice. ayokinews.com reports
According to the government, the decision to to remove fuel subsidy was put on hold after talks with relevant stakeholders and that it was in tune of keeping up with the country’s present economic reality.
The fuel subsidy removal which was earlier planned for June 2022, met a stiff resistance from the Nigerian labour unions comprising of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), who threatened to halt economic activities in the country should the President Muhammadu Buhari led administration proceed with the subsidy removal as planned.
Timipre Sylva, Minister of State for Petroleum Resources, told reporters after meeting with President Buhari on Tuesday that the executive was planning to propose an 18-month extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA), which was supposed to begin in February.
President Buhari signed the Petroleum Industry Act into law on August 16, 2021, after the bill was successfully passed by the two legislative chamber, Senate and House of Representatives.
The PIA is intended to increase investor trust in the petroleum industry while also providing additional job possibilities for the local population.
Prior to its decision to remove fuel subsidy, the Federal Government claimed that it spends N3 trillion annually on subsidizing petroleum consumption at current pump prices of N162 and N165 per litre.
Announcing intentions to end the subsidy in late 2021, the government also stated that it will provide N5,000 to the poorest set of Nigerians to help them weather the coming economic storm, that would result from the subsidy removal.