▪Sets committee to review suggestions and submit report in two weeks
▪ Seeks legislative supports to strengthen local automobile production
▪ Eyes 1m jobs from local automobile production
▪ Says daily fuel consumption drops to 40m litres from 67m litres
The National Economic Council (NEC), presided over by Vice-president Kashim Shettima has set up a committee made of governors from each of the geo-political zones to review suggestions from the Salary and Wages Commission to address the impact of the removal of the fuel subsidy on the populace.
The committee is to consider recommendations from the National Salaries Income and Wages Commission to pay N702 billion as cost of living allowance to civil servants as part of intervention plans to mitigate the effects of the removal of subsidy as announced by President Bola Tinubu on May 29, 2023.
The Governor of Bauchi, Bala Mohammed made the disclosure while briefing alongside his counterparts from Katsina, Aliyu Radda, Kogi, Yahaya Bello, Abia, Alex Otti and Ogun, Dapo Abiodun,
Mohammed also disclosed that the intervention includes a recommended sum ranging from N23.5 billion to N45 billion per month as petroleum allowance for civil servants.
Recall that President Tinubu had directed the governors to concretise various palliative structures to ease the attendant hardship from the petrol subsidy discontinuance.
According to Mohammed, “The NEC had received recommendations on the various ways and means that the country can use whatever increases that we have in the revenue to mitigate the impact that this is going to make on the lives of our workers.
“And so they recommended that there should be a consequential adjustment, estimated at N702.92 billion as part of the allowances that should be given as petroleum allowance to all workers and as well as a N23 or N25 billion monthly offer to cushion the effect on workers.”
He said the council received other suggestions to review salaries and wages.
“In addition to the palliative, government looked at all the issues, the challenges and problems holistically and set up a small committee of council to review and come up with a term of reference to organise areas specifically where this palliative can come from and how it will be dispensed to alleviate the problem of workers and other vulnerable groups,” Mohammed explained.
“Members of the committee include the Governor Kebbi State as Chairman; Anambra representing the South-East geopolitical zone; Governor of Benue, North-Central; Governor of Kaduna, North-West; Governor of Cross River, South-South; Oyo, South-West; and the Bauchi State Governor representing the North-East.
“Other relevant agencies in the committee are the Budget Office, representatives of the Central Bank of Nigeria, Office of the Attorney-General of the Federation, Nigerian National Petroleum Company Limited, Trade Union Congress of Nigeria and the Nigeria Labour Congress and Rukayat El-Rufai.
“We will sit within two weeks to come up with a recommendation to NEC for a holistic decision that will be taken immediately to alleviate the problem that is being encountered by the removal of the subsidy,” the Bauchi Governor explained.
He said the input of the committee on palliatives earlier set up and headed by former Vice President Yemi Osinbajo would not be discarded but integrated into the ongoing process.
Also speaking, Katsina state Governor Umar Radda, stated that NEC devoted it discussions to palliative measures to mitigate the effect of the petroleum subsidy through the NG-Cares programme.
“As you are aware, the NG-Cares Programme is a programme that started 2021 running up to 2024. And then is to provide some emergency on palliatives, social needs on so many issues ranging from small farmers holders. MSMEs and other interventions.
“It’s a $750 million from the World Bank assisted funds and it has commenced long time ago.
According to him, some of the recommendations that were made include that states create platforms having strong capacity to handle the implementation of palliative to the new and existing poor and vulnerable individuals, household and farmers, including boosting economy of local operators in the country.
“Additional funding can be sourced from the federal government, World Bank, Development partners as well as Nigerian private sector.
“In specific, the World Bank can be approached for additional financing on NG-Cares programme. Discussion can start as soon as possible. So these are the recommendations that were made. And the Economic Council will pursue these recommendations for the benefit of the Nigerian, vulnerable and the poor”
Abia State Governor, Alex Otti, while also speaking on the interventions, disclosed that a presentation by the National Automotive Design and Development Council revealed that about six states in the country, including Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna and Kano are already benefiting from domestic production of vehicles or assembling of vehicles by Nigerian companies operating in Nigeria.
He listed the companies to include INNOSON, Maikano, Dangote Peugeot, Peugeot automobile of Nigeria, Stallion Hundai, Honda, Elizade/Toyota, Coscharis and Ford, Kojo Motors and Jet Systems motors.
“At the moment, about 50,000 jobs have been created by this simple action of either assembling vehicles in Nigeria or producing them Nigeria, adding that this can increase to one million, with federal government supports.
“It is a great feat that some of these companies have gone into the manufacturing or assembly of electric vehicles and vehicles powered by CNG – compressed natural gas. The impact of this is that the pressure on the price of petroleum products particularly PMS will be reduced. The more we use electric vehicles and CNG powered vehicles.
According to him, “some ofthe decisions that we were taken include that legislative support will need to be given to these companies that are doing great things in Nigeria.
“it isimportant to underscore the point that former President had made a commitment that by 2060 that Nigeria would join countries that will eliminate fossil fuel powered vehicles and move to electric vehicles in pursuit of the net zero emission that some of the countries in Europe, America and Asia have signed on to. So if that must happen, then we need to ramp up the production of electric vehicles and CNG vehicles.
“It is estimated that if we give legislative support to this company, that about a million jobs from the 50,000 jobs that exist in that industry would be created. It was also suggested that the funding that is required by most of these vehicle manufacturers and assemblers shall be made available to them.
“So that we begin reduce the dependence on PMS and other fossil fuel powered vehicles.
“Finally, it was also suggested that electric vehicle development plan, will fast track the development of electric vehicles should be supported wholeheartedly by the new government.
“The reality is that we cannot run away from the removal of petroleum subsidy. We should have done it a long time ago. But we must salute the courage of the current government to bit the bullet and remove it. “Initially, it had reduced the consumption from about 66, 67 million litres a day to just about 40 million.
“And as time goes on, the consumption will continue to go down. We know there are implications particularly for the poorest of the poor.
“And that is why this government is seriously looking at palliatives to at least deal with the shock that the poor of our society goes through”.
Yahaya Bello on his part recalled that at the 128th NEC meeting held on October 28th, 2022, the issue of flooding and flood disasters across the country was discussed.
He said the then Chairman of the Nigeria Governors Forum, former Governor of Sokoto State Aminu Tambuwal, drew attention to the devastating effects of the 2022 floods that affected almost all states in the federation, resulting in significant loss of lives, property, and livelihoods.
He said in response, the council had set up a five-man adhoc committee on flooding comprising governors of Jigawa, Kogi, Anambra, Bayelsa, Lagos, and Yobe states, and co-opted some other ministries and agencies to tackle the issue.
He said while reviewing the current flooding situation in the country and designing a compensation plan for victims, the committee faced some limitations, such as the delay in the submission of templates by some states, only 16 out of the total number of affected states forwarded their submissions to the NEC Secretariat, and about 15 others were yet to do so.
He said the committee is still awaiting submissions from the defaulting states.
Bello said to alleviate the plight of victims of the unfortunate flood disaster across affected states in the federation, it is recommended that the federal government intervenes and releases necessary funds without further delay.
“This will assist with addressing the needs of the victims as well as offset debts incurred by some states in their attempt to assist the victims”, he said.
He said given that various agencies that are responsible for giving early warnings and signs predicting this year’s flooding will be worse than last year, all states have been urged to make comprehensive submissions by next week.
He said members have also been directed to liaise with the Office of the Vice President, the Office of the Secretary to the Government of the Federation, and private sectors and other well-meaning Nigerians to help tackle flooding in the country.
Ogun state governor, Dapo Abiosun, in his comments disclosed that oil sector represented by the officials of DAPsMAN made suggestions on how to reduce the price of petrol to the Council.
According to him, the body urged the government to reduce the taxes being collected by the NPA, NIMASA and other government agencies on petroleum products.
The governor added that the Group Chief Executive Officer if the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari reported that the company noticed that with the subsidy removal, cost of fuel in the neighbouring countries has jumped up.
This he noted that those neighbouring countries have been relying on subsidized fuel from Nigeria.
Abiosun revealed that the NNPCL boss therefore suggested that Nigeria beging to export fuel to her neighbours with less capacity to import the product.
“The GCEO of NNPC says that the position of an NNPC now used to be in the active trade of actually trading petroleum products to the neighboring countries. Since they do not have the wherewithal to import petroleum products. We decided that we would have a subcommittee of NEC on oil and gas that will look at the issues have been brought to the fore or by the marketers, by the regulator, by NNPC to ensure that we harmonize report back to NEC and if NEC adopts it we will present it to Mr. President.”
The governor equally revealed that the price of fuel would drop by N40 when the local refineries begin to work at full capacity.
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