*Sylva mulls 18-month extension

Following engagements with stakeholders, President Muhammadu Buhari has approved an extension for the implementation of fuel subsidy removal.

Already, the Federal Government is proposing a shift in the implementation of subsidy removal by 18 months.

By implication, the next administration will implement the policy.

President Buhari will leave office on May 29, 2023; 16 months away from now.

Minister of State for Petroleum Resources, Chief Timipre Sylva, on Tuesday, told State House Correspondents that the extension will give stakeholders enough time to remove impediments and put modalities in place for the smooth implementation.

Sylva said: “We don’t intend to remove subsidies now. That is why I am making this announcement. We also see the legal implication. 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 amendment of the law so that we would still be within the law.

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

The minister, however, ruled out any connection between the implementation extension and the 2023 general election.

Sylva said: “Of course not. This is just the human face of the government and the President. He wants everything to be in place and he insisted that if we want to remove fuel subsidy, we must make sure we put every measure in place to protect Nigerians.

“That is the President’s insistence. We are now taking steps to ensure that these processes are in place. And this entails talking with labour. We are already talking with labour and our discussions are around palliatives and mitigations.”

The minister explained that the new Petroleum Industry Act (PIA) provides for the unrestricted market pricing for PMS from the effective date.

However, he said, the PIA also envisaged 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 assent by the President on August 16, 2021, the PMS subsidy removal was therefore expected to take place effective February 16, 2022.

“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,” he said.

Sylva noted that this extension will give all the stakeholders time to ensure that the implementation is carried out in a manner that ensures all necessary modalities are in place to cushion the effect of the PMS subsidy removal, in line with prevailing economic realities.

“The President assures that his administration will continue to put in place all necessary measures to protect the livelihoods of all Nigerians, especially the most vulnerable,” he said.

TheStar