By Dennis Mernyi and Cross Udo, Abuja
President Muhammadu Buhari yesterday directed that the planned fuel subsidy removal be stopped pending the time all necessary structures to cushion its effect on the masses are put in place.

The President approved the suspension following the outcry that had trailed the government’s decision on the policy.

The Federal Government also announced that it was shelving an increment in fuel prices now, even as organised labour has suspended its planned nationwide protests to check the hike.

But despite the announcement, long fuel queues returned to petrol stations in and around Abuja yesterday, with some stations with products dispensing on a few pumps.

The approval came amid a grand move by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to commence protests on planned adjustment in fuel prices.

Labour had opposed the government and had directed its 36 state chapters to begin mobilisation for a total shutdown of the country effective from January 27 to protest the subsidy removal.

It further said that subsidy removal would worsen the living standards and destroy the livelihood of Nigerians, especially the poor.

•‘No fuel increment for now’
However, addressing State House correspondents yesterday, Minister of State for Petroleum Resources, Timipre Sylva, said the structures to reduce the harsh effect of the subsidy removal, as pointed out by the President, were not yet in place.

He said the Federal Government has proposed June 2023 as a new date for the removal of fuel subsidy.

The government has also disclosed that there will be no fuel price increase as earlier announced last year.

The minister, who had earlier met with the president before the briefing, said the executive will propose an 18-month extension to the National Assembly for the implementation of the Petroleum Industry Act (PIA) that was meant to kick-start in February.

He said with the president’s intervention, fuel subsidy is not on the card for now.

The minister added that the government will continue to engage the leadership of the organised labour.

Buhari had on August 16, 2021, signed the Petroleum Industry Bill (PIB) into law to check flaws in the petroleum sector of the economy, grow investments and create more employment for the host communities.

Buhari’s assent to the bill was in furtherance to the passage of the bill by both the Senate and the House of Representatives earlier in July 2021.

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Sylva explained that the suspension is to give all the stakeholders time to ensure that the implementation is carried out in a manner that guarantees that all necessary modalities are in place to cushion the effect of the subsidy removal on Premium Motor Spirit (PMS).

At the briefing, Sylva said: “President Muhammadu Buhari has agreed to an extension of the statutory period for the implementation of the removal of subsidy on petrol (Premium Motor Spirit, PMS), under extant laws.

“However, following extensive consultations with all key stakeholders within and outside the government, it has been agreed that the implementation period for the removal of the subsidy should be extended.

“This extension will give all the stakeholders time to ensure that the implementation is carried out in a manner that guarantees that all necessary modalities are in place to cushion the effect of the PMS subsidy removal in line with prevailing economic realities.”

On the likely effects of the subsidy removal on the livelihood of the poor, Sylva said: “The President assures that his administration will continue to put in place all necessary measures to protect the livelihood of all Nigerians, especially the most vulnerable.”

Also fielding questions on the possible legal implications after the assent to the PIA by Buhari, the minister said: “We also see the legal implications. There is a six-month provision in the PIA that will expire in February, and that is why we are coming out to say that before the expiration of this time, as I said earlier, we will engage the legislature.

“We believe that this will go to the legislature. We are applying for some amendment of the law so that we would still be within the law.”

The minister added, “We are proposing an 18 months extension, but what the National Assembly is going to approve is up to them. We would approve an 18 months extension and then it is up to the National Assembly to look at it and pass the amendment as they see it.”

‘Denies fear of 2023 election behind decision’
Asked if the suspension has something to do with the 2023 elections, he said: “Of course not. As I said, first, it’s just the human face of the government, Mr. President especially wants certain structures to be in place. And he insisted if we want to remove subsidies, we must make sure that we put every measure in place to protect the suffering masses of Nigeria.

“That is the president’s insistence. So, we are now taking steps to ensure that these processes are in place. And this now gets into the labour engagement that you are talking about.

“We are already talking with labour. And our discussion with labour is also around these palliatives and mitigations,” he said.

According to Sylva, “All these will have to come together. That’s why we decided at this time, especially since we are running against time. With the legal timeframe approaching very quickly, we thought we should come to you and let you know that we are taking steps to amend the law and to ensure that we are within the law.”

On the possibility of gradual increase, that is not on the table right now, the minister said, adding, “Gradual or increment in whatever guise is not on the table. We are going to see how to rejig the law; this is not going to be the only amendment to the PIA. A few months ago, the president already proposed an amendment to the law.”

•Fuel queues
Fuel queues were noticed at petrol stations in and around Abuja yesterday, with some stations with products dispensing on a few pumps.

The queues forced many vehicle owners to resort to patronising black marketers who have cashed in on the situation to hike prices.

Commenting on the fuel queues that have resurfaced, Sylva advised Nigerians to stop hoarding fuel, even as he cautioned against people engaging in panic buying as the government has no plans to remove subsidies now.

He said: “We don’t intend to remove subsidies now. That is why we are making this announcement.”

•Labour suspends January 27 nationwide protest
With the government announcement that Buhari has directed that the subsidy removal should stop, Labour also announced the suspension of the planned nationwide protest scheduled for Thursday.

Addressing journalists, the President of NLC, Ayuba Wabba, flanked by the General-Secretary of the labour centre, Emmanuel Ugbaja, said the suspension of the planned protest was in line with labour’s demand for the suspension of the planned subsidy removal.

Wabba in a prepared text he read, said, “Fellow Nigerian workers and citizens, you would recall that on November 23, 2021, the Minister of Finance, Budget and National Planning at the launch of the World Bank Development Update, disclosed to Nigerians the policy of the removal of subsidy on the Premium Motor Spirit (PMS), also commonly known as ‘petrol’ or ‘fuel’. The policy of removal of petrol subsidy, as we all know, has become a euphemism for a hike in the pump price of petrol.

“The attendant effect of the proposed removal of petrol subsidy would push the pump price of petrol to between N320 and N340 per litre. There is no gainsaying the fact that this would have exacerbated the current scourge of inflation in the country, deepened poverty, heightened social tensions, and push the country and millions of poor citizens to the very precipice.

“Immediately, the Minister of Finance unveiled government’s plans on petrol price, the Nigeria Labour Congress issued a press statement on November 24, 2021 condemning the proposed policy of the government and warned of the dire consequences that would follow the implementation of the policy.

Continuing, he said, “The Nigeria Labour Congress went on to convene national organ meetings to deliberate on the issue.

“After a series of statutory organ meetings culminating in a National Executive Council (NEC) meeting which took place on December 17, 2021, the Nigeria Labour Congress renewed its traditional position of resisting an incessant increase in the pump price of petrol.

“The NEC went ahead to give directives for the mobilisation of workers and citizens for national protests if the Federal Government refuse to reverse the planned hike in the pump price of petrol.”

The labour leader added, “At the peak of very rigorous mobilisation of Nigerians by the Nigeria Labour Congress and a host of her Civil Society allies, the government, through the Minister of Finance on January 24, 2022, made a public announcement reversing the plans to increase petrol pump price.

“The position of the government was also officially communicated to the Congress with calls for further engagement. Following the reversal and re-approach by the government, the National Executive Council of the Nigeria Labour Congress met this morning virtually to consider the new position of the government.

“The NEC, after vigorous debates, decided to suspend the planned nationwide protest scheduled for January 27 and the national protest scheduled for February 2.

“The leadership of the Congress has communicated this organ decision to our civil society allies who have stood stoically behind Nigerian workers in our quest for social and economic justice for workers and the downtrodden people of our country.

“Going forward, we will continue to engage with the government on the very critical issues of ensuring local refining of petroleum, creation of sustainable jobs, and affordable price of petrol for Nigerian workers and people.

“Finally, we commend the Nigerian workers and people particularly our civil society allies for their unwavering solidarity and support during this struggle. We sure are stronger together.”