Subsidy Removal: NEC Proposes Palliatives for Workers, Vulnerable Groups

• FG to seek World Bank funds to implement CNG

The National Economic Council (NEC) is proposing to Federal Government the provision of palliatives for workers and vulnerable groups following the removal of petroleum subsidy, which has heightened the cost of living in the country.

Rising from its maiden meeting under the Bola Tinubu administration which was presided over by the Chairman, Vice President Kashim Shettima at the State House, Abuja on Thursday, NEC announced the setting up of a committee to work out, within two weeks, the modalities for organizing and distributing the palliatives. 

Governor Bala Mohammed of Bauchi State, who disclosed this to newsmen at the end of the NEC meeting, said the council also discussed the possibility of obtaining funds from the World Bank and London partners to implement the programme of Compressed Natural Gas (CNG) for vehicles in the country as part of measures to bring down the price of fuel.

According to him,council deliberated on other  recommendations including the one by the organized labour for N702 billion consequential adjustment on allowances as well as the about N23 to N25 billion monthly they requested to cushion the effects of the subsidy removal.

While noting that NEC took very far reaching decisions and deliberations on the issue of the removal of petroleum PMS subsidy and its general impact on the economy, Mohammed said: “Specifically on the issue of national salaries, income and wages commission, 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 is going to make on the lives of our workers and all those people involved. 

“And so, they recommended and they gave us a scenario recommending that there should be a consequential adjustment, estimated at N702,919.8 billion as part of the allowances that should be given as petroleum allowance to all workers and as well as a 23 or 25 billion monthly offer to cushion the effect on workers and others suggestion that will go a long way in making sure that there is review of our salaries and wages.”

He revealed that the Council looked at all the issues including “the challenges and problems holistically and set up a small committee of council to review and come up with a term of reference to organized areas specifically where this palliatives can come and how it will be dispensed to alleviate the problem of workers and other vulnerable groups.

“Members of the committee is composed of Governor Kebbi as Chairman; Anambra representing the South East geopolitical zone; Governor Benue, North Central, Governor of Kaduna, Northwest; my humble self, Bauchi, representing the northeast; Governor Cross River, South South and Oyo state,southwest.

“Other relevant agencies were also included. They comprised of a budget office, representative of the CBN, representative of the Office of the Attorney General of the Federation, representative of NNPC, representative of TUC and NLC and of course, Rukayat El-Rufai, so that we can sit within two weeks to come up with recommendation to NEC for a wholistic decision that will be taken immediately to alleviate the problem that may be encountered by the removal of the subsidy.”