To Help Subsidy, Nigerian Government Proposes 18 Months Delay For PIA

To Help Subsidy, Nigerian Government Proposes 18 Months Delay For PIA   

Nigerian Government on Wednesday proposed an 18-month delay in implementation of the Petroleum Industry Act (PIA) to enable it to continue with the payment pay of petroleum subsidy. NIGERIAN TRIBUNE reports.

The Minister of State for Petroleum Resources, Timipre Sylva, announced the initiative while briefing correspondents at the presidential villa, Abuja, saying that the decision was reached as a result of President Mohammadu Buhari’s insistence that all the necessary structures must be put in place to caution the effect of the subsidy removal. Information Guide Nigeria

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The government had made subsidy provision in the 2022 budget only up till June with the hope that the PIA will become fully operational by then. Sylva said the decision was reached as a result of President Mohammadu Buhari’s insistence that all the necessary structures must be put in place to cushion the effect of the removal.

Reading from a prepared text, the minister said, “President Muhammadu Buhari has, following engagements with stakeholders, agreed to an extension of the statutory period for the implementation of the removal of subsidy on Premium Motor Spirit (PMS), in line with existing laws”.

“The new Petroleum Industry Act (PIA) provides for the unrestricted market pricing for PMS from the effective date”. jamb results

“However, 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 a 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.

“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.”

Fielding questions, the minister made further clarifications, saying: “We don’t intend to remove subsidy now. That is why are making this announcement.

“We also see the legal implication. There is six months provision in the PIA which 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.

“Somebody mentioned here the possibility of gradual increase. That is not on the table. Gradual or increment in whatever guise is not on the table.

“We are going to see how to revive 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”.

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