Sequel to engagements with stakeholders, President Muhammadu Buhari has agreed to an extension of the statutory period for the implementation of the removal of subsidy on Premium Motor Spirit (PMS), in line with existing laws.
The new Petroleum Industry Act (PIA) provides for the unrestricted market pricing for PMS from the effective date.
However, the PIA also envisages the potential for supply disruption with its resultant effect on the economy.
Consequently, it provides for a window of six months from the effective date for Government to request the services of NNPC Limited as supplier of last resort.
This is to forestall supply disruptions and guide market readiness preparatory to migration to the deregulated pricing regime.
With the assent by the President on August 16, 2021, the PMS subsidy removal was expected to take place effective from February 16, 2022.
However, following extensive consultations with all key stakeholders within and outside the government, it had been agreed that the implementation period for the removal of the subsidy should be extended.
According to a statement by the Minister of State for Petroleum Resources, Timipre Sylva, on Tuesday, this extension would give all the stakeholders time to ensure that the implementation was carried out in a manner that would ensure all necessary modalities were in place to cushion the effect of the PMS subsidy removal, in line with prevailing economic realities.
The President assured Nigerians that his administration would continue to put in place all necessary measures to protect the livelihoods of all Nigerians, especially the most vulnerable.
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