Fuel Subsidy Palliative: Gov Abiodun Reveals Key Decisions Taken At NEC Meeting

Ogun State Governor, Dapo Abiodun, has revealed key decisions taken at the National Economic Council (NEC) meeting on Thursday, July 20, 2023.

Naija News reports that NEC met yesterday and discussed issues relating to the outcries of Nigerians following the recent increase in the pump price of petrol as a result of the removal of the petrol subsidy by the federal government.

Sharing the outcome of the meeting, which was held at the Council Chambers of the State House in Abuja on Thursday, Governor Abiodun said the Council agreed to palliative measures.

According to him, during the meeting presided over by Vice President Kashim Shettima, NEC executives resolved to use cash transfers based on state social registers and the peculiarities of each state.

The Ogun State governor explained that the fuel price hike was not the doing of the federal government but a consequence of market forces since petrol had been deregulated.

Abiodun noted that after extensive deliberations on the proposals of the NEC Ad hoc Committee on cushioning the effect of petrol subsidy removal led by Anambra State Governor, Prof. Charles Soludo, the meeting also resolved to support enhanced engagements between state governors and the leadership of the labour unions across the states, and proposed the provision of the cost-of-living allowances to be paid to civil servants in both the state and federal civil services.

He said the payment to be made for six months in the first instance would be devoid of tax.

Another decision taken by the NEC was the need to fund Micro, Small and Medium Enterprises (MSMEs) and begin immediate implementation of energy transition plans, especially the conversion of buses and taxis from fuel to CNG.

Abiodun said the long-term plan was the use of electric vehicles, adding that it would take six to eight months to establish such factories in each geo-political zone.

The governor spoke about an ambitious plan to provide 10,000 buses powered by electricity.

Naija News reports that the NEC meeting yesterday was attended by governors of the 36 states of the Federation, the Director General of the Nigerian Governors’ Forum, as well as stakeholders from the World Bank and other agencies of government.

Recall that Nigerians had earlier expressed their disapproval of the proposed fuel subsidy palliative sharing of ₦8,000 to citizens, saying the initiative would only pave the way for government officials to steal the money.

Due to the reactions, President Bola Tinubu’s government announced that it would review the plan.

Meanwhile, Vice President Shettima had earlier read the resolutions of the Council, noting, “We will also pursue vigorously the mass deployment of CNG-powered vehicles and establishment of autogas conversion plants/kits in all States in the short-term and deployment of electric buses and cars with charging infrastructure across the country.”