Fuel Subsidy: NEC to consider N302/litre new pump price

The National Economic Council (NEC) has begun meeting in Abuja to consider reports of its adhoc committee which recommended a N302 per litre price for Premium Motor Spirit (PMS) popularly known as petrol.

The meeting which is currently ongoing, is being chaired by Vice President Yemi Osinbajo.

The NEC meeting started at exactly 12 noon, with the Governor of Ekiti state and Chairman of the Nigeria Governors Forum NGF, Kayode Fayemi, Godwin Obaseki of Edo state and Udom Emmanuel of Akwa Ibom state in attendance, amongst other Governors.

BusinessDay gathered that although the NEC which is made up of the 36 state Governors, does not have the powers to enforce the new price, the recommendations have the capacity to affect the federal government’s final decision on the matter.

The Governors who have expressed their displeasure over the continued funding of fuel subsidy projected at N150bn monthly, see such expenditure as a drain on the federation accounts.

Read also: Fuel subsidy removal: Governors to engage organised labour

The NEC is Chaired by Vice President Yemi Osinbajo and is attended by other members such as Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN); and the Minister of Finance, Budget and National Planning, Zainab Ahmed.

The NEC adhoc committee which is headed by Vice President Yemi Osinbjo had received and reviewed the report recommending N302 /liter , as against the current N162/N165/ liter, at a virtual meeting of the adhoc committee, in preparations to the full NEC meeting during the week.

It was gathered that although a sub committee of the National Economic Council NEC, had made a recommendation that the new fuel pump price be pegged at N302 per liter.

The meeting, BusinessDay gathered, will also be used to flag off a new funding arrangement that will provide a new policy direction for funding government response to the Covid-19 pandemic in the country.

The Nigeria Covid-19 Action Development Funds, tagged NG- care program, is being carried out in collaboration with the World Bank and is aimed at further reducing poverty, enhancing jobs creation, as part of President Muhammadu Buhari’s efforts to lifting 10 million Nigerians out of poverty.

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