₦airaland Forum

ABUJA—President Muhammadu Buhari plans to totally remove fuel subsidy and use the proceeds for the provision of free and compulsory primary/secondary education across the country.
The administration is also said to be working on unbundling the Nigerian National Petroleum Corporation, NNPC, to make it more efficient in the production and delivery of products to Nigerians.
These proposals form part of the strong recommendations made by the transition committee raised by Buhari to work out a blueprint for his administration.
Asked if the proposal for total subsidy removal had been discussed with labour, the source said that members of organized labour in the country were consulted by the committee and they made presentations on what should be done over the matter.
The source said: “ Labour is part of the decision; they have accepted the proposal of fuel subsidy removal.
“A committee is likely to be set up by the federal government to work out the modalities of what is to be done in that respect.
“But the truth is that total removal of fuel subsidy has been recommended with adequate provisions for palliatives on free education and social welfare for the unemployed”, a member of the transition committee said.
The source pointed out that unlike in the past, the Buhari administration is considering the provision of free meals for students to serve as incentives for them to enroll in school.
The source explained that the committee also recommended the unbundling of NNPC to reposition the agency to serve the needs of Nigerians better.
According to him, all refineries in Nigeria are to be made to work at maximum capacity by the federal government to be able to deliver adequate products to the consumers.
Corruption
He said that the era of allocating more crude than any refinery in Nigeria can process was over, as it was discovered that the policy encouraged corruption and diversion of funds.
In a tone that suggested that the Buhari administration might probe the operations of the NNPC, the committee member further disclosed that the federal government was set to block all channels of fund leakages in the corporation.
He said: “The federal government is keen on plugging all areas of leakages in the corporation and whoever must have caused them must be made to account for such unpatriotic wastages. We don’t know whether that is what you call probe or not”, he said.
It could not be established as at last night whether such decisions of the officials were influenced by the planned beaming of search light on the operations of the government agency.
FG to pay the controversial N160 billion subsidy claims
Meanwhile, hopes for resolution of outstanding subsidy issues hampering normal supply of petroleum products across the country appear kindled as the special investigation team on subsidy claims verification recommends payment of the controversial N160 billion claimed by oil marketers.
As a result, bankers have resumed credit lines to the sector while importation by marketers have resumed though it is still on cautious notes.
The supply shortages witnessed across the country since last month was as a result of a disagreement between the federal government and oil marketers over the subsidy claims resulting in the marketers’ refusal to import more products under the subsidy programme.
In the last week of ex-president Goodluck Jonathan’s administration, the finance ministry had paid a part of the subsidy claims totalling about N131 billion in the wake of the supply crises arising from this disagreement.
The former Minister of Finance, Dr Ngozi Okonjo-Iweala, had doubted the additional N160 billion claims ascribed to exchange rate differential and interest rate charges on banks’ funding for the petroleum products imports.
She had subsequently set up a special investigative team made of representatives of Petroleum Products Pricing Regulatory Committee (PPPRC), Central Bank of Nigeria (CBN), the Debt Management Office (DMO) and the finance ministry to investigate the claims before she can approve the payment.
The team couldn’t conclude their assignments before the expiration of ex-president Jonathan’s government and exit of the minister, hence validating the allegation of some of the marketers that the investigative team was designed to provide escape for the ministry from the agreement they had reached on subsidy payment. The marketers had also wondered why the setting up of the team whereas this assignment has always been done by PPPRC without any issues.
Return of confidence
Bankers who spoke to Vanguard last week said that their confidence was gradually returning to the oil marketing sector which they had classified as ‘high-risk’ in the wake of the subsidy claims disagreement, indicating that some of them have resumed granting loans to the sector.
The disagreement had put about N300 billion banks’ risk assets (loans) in danger of default, escalating the industry non-performing loan ratio to almost 4.0 per cent with the worst performing banks hitting above 8.5 per cent aggregate and over 40 per cent on the oil sector. The industry red line is 5.0 per cent at which any bank’s exposure would be dangerous and unacceptable.
Top executives of the oil marketers’ associations told Vanguard that they have information that the investigative team has validated the marketers’ claims in their report to the finance ministry two weeks ago.
However, they said that actual payment is waiting for the settling down of President Mohammadu Buhari’s government, a situation which they also said cannot last for too long otherwise the renewed confidence of their funding banks may wane.
One of the marketers informed that following a meeting with the permanent secretary, Ministry of Petroleum Resources two weeks ago, some of them have begun importation of products on a low scale while helping the Nigerian National Petroleum Corporation (NNPC) to distribute its stock to lessen the supply crises. The focused cities are Abuja and Lagos which according to him has been very successful.
He added that the agreement reached with the ministry was just a palliative to welcome the new government of Mohammadu Buhari, adding that eventually they will have to address the issue in a more lasting policy.
The marketers associations, according to him, are unanimous in pushing for removal of subsidy, but probably they will recommend a phased programme lasting not more than six months.


http://linkis.com/www.vanguardngr.com/2rI9g

What is Oil Subsidy? A don't believe it.

Correct

This will hit front page and once it does, make sure you like my comment and check out my link.

.

How many time you wan talk am na

Remove it since our refineries will start working to its fullest next month...........

Hummmm lets wait and see

PUSH1:
What is Oil Subsidy? A don't believe it.

kindly read the body of the message, then you will believe it

Its hypocrisy to reject subsidy removal in 2012 only to accept same in 2015 by same people. This move will be given different tribal interpretation in a long time.

Are we ready for the impact of officially selling PMS at 160 naira per litre in lagos and 230naira per litre in maiduguri and sokoto?

Are we ready to buy a cup of garri for 100 naira?, Are we ready to pay 50% more on food items coming down to the south?

What is the inflation impact? What will cushion the inflationary impact?

Until our trains are effective enough for transport of goods and max. production of our existing refineries and commence construction of new ones by the private sector....... It will be a premature move.

ojota people come here ooooo! see food!

Maczeelly:
Remove it since our refineries will start working to its fullest next month...........

Absolutely

The last regime turned subsidy to a front for pilfering our money. Hopefully the removal of subsidy will be followed by a detailed plan ob cushioning the effects.

Removing the subsidy is not the real issue but the real issue is implementing the proceed for benefit of the common citizen like me.

Can the slaves down south now realise that GEJ and his supporters who asked for removal of oil subsidy were right after all.



Sophisticated Slaves down south what next.?

Not so fast. Our refineries are barely operational. The system is not yet cleansed of corruption. I buy this idea at this at all.

Not so fast. Our refineries are barely operational. The system is not yet cleansed of corruption. I dnt buy this idea at this time at all.

Free compulsory primary and secondary education.
Absolutely necessary even for some nlanders!

The same subsidy that the cabals and Nigerians kicked against in 2012? Mr. Buhari we will return to the streets if you remove subsidy without adequate palliative.

The same subsidy some of supported the GEJ led administration to remove, and APC called us Saboteurs..... the same subsidy that saw us witnessing #occupyNigeria...... the same subsidy that claimed a few lives.





.
When will Hypocrisy en in Nigeria?

barcanista:
The same subsidy that the cabals and Nigerians kicked against in 2012? Mr. Buhari we will return to the streets if you remove subsidy without adequate palliative.

the nlc is actually looking the opposite way!

This subsidy saga reminds me of Brutus, Mark Anthony and thr Roman plebians in the famous Shakespeare drama Julius Ceasar, the Nigerian masses are in no way different from the fickle minded Roman pleabians, swayed more by emotion than logic. I have always believed that removing the subsidy is the best way to curb the massive corruption in the downstream sector, the only way those licensed to build private refineries can be sure of returns on investment. Those scurrilous individuals and organizations who turned the subsidy debate into a muscle flexing, diabolical campaign against Jonathan's govt for their selfish political reasons should try reclaim their honor by first apologizing to Nigerians for misleading and exploiting their naivity.

This is a surprising news to me. This same Buhari criticised Gej in 2012 for attempting to remove subsidy. Why is Buhari not sincere in criticising Gej. Absolutely, Buhari has been doing the same programme done by Gej. A copycat and plagiarist. Shame, shame and shame. No personal idea of his own .

The old dullard is a typical example of moving without motion. A govt run on hear-say, gossips and maybes. . . . The monkey is so confused that newspaper reporters now take the lead to publish ideas for him . . .


We can also talk about the hypocrisy of the sophisticated people of the Land of the coward slaves who came to Ojota to shout against this in 2012 when it was done in good faith.

We can also talk about the Parasite terrorists who want fuel to sell at the same price in Lagos at Kano and Maidiugri which by all means defeats reasoning and all Economic postulations.

What we should do is to build a fence between Biafra land and the zoo and have everyone rule themselves as they deem fit.

baralatie:
the nlc is actually looking the opposite way!

Don't mind them

Waiting....

Please do whats best for Nigeria, Uncle Jona tried it they revolted, lets see how it goes this time around
Meanwhile please patronize Hary Building Concept. As the best awaits you with us. Thanks.

He will but hasn't,


Let's wait till he does cus I'm allergic to promises not to be/not fulfilled...



Why not help me let's do it

It startsvtoday..


Join the team let's get it done!!!



[color=orange]#TeamRapLawd2015 4Mr Nairaland2015 [/color]

#SaiRapLawd2015



Here's the link to vote here in Nairaland... https://www.nairaland.com/2395706/mr-nairaland-contest-2015-elimination#35012992

Every of PMB's policy is and will be an apology to GEJ.

Every of PMB's policy is and will be an apology to GEJ.

I hope those APC members/self-styled activists that occupied ojota and protested Gej proposed removal of subsidy will show face to do the usual

Nnemuka:
the dullard of D knows how to talk without actions. we are tired of reading what he wants to do, someone should tell the Dullard to implement them and stop ranting.
phewwww govt of talk no action.

Ur clueless drunker (Jonathan) has destroyed Nigeria so much , dat is y baba Buhari has 2 b calm b4 taking any action.