Osinbajo Denies Recommending Hike In Price Of Petrol

By Fola James

Vice President Yemi Osinbajo has denied report that he recommended, to the federal government, an increase in the pump price of petrol.

The vice president spoke as the Nigerian Labour congress, NLC and its affiliates said they will proceed on strike if the federal government goes ahead to remove subsidy on petrol which ultimately will lead to increase in its pump price. The labour unions have already directed their members to embark on a warning strike next month.

Senate President Ahmad Lawan had after a meeting with President Muhammadu in Abuja this week, said the government was yet to decide on the controversial subsidy removal.

Osinbajo as the head of the National Economic NEC ad-hoc committee interfacing with the Nigerian National Petroleum Corporation, NNPC on the deregulation of the petroleum sector was said have recommended that the price of petrol be increased to N302 from its current price of N162.

Apart from the Vice President, Other members of the committee are Godwin Obaseki, Kayode Fayemi, and David Umahi, governors of Edo, Ekiti and Ebonyi states respectively; as well as Godwin Emefiele, governor of the Central Bank of Nigeria (CBN).

Others are Mele Kyari, Group Managing Director, GMD, Nigerian National Petroleum Corporation, NNPC and Zainab Ahmed, Minister of Finance, Budget and National Planning.

According to the report by Sahara Reporter, the committee last year submitted a report to the federal government where it recommended a total face out of subsidy by February 2022, a development that could raise the price of the commodity by as much as N140 per litre.

But responding, Laolu Akande, Senior Special Assistant to Osinbajo on Media and Communications, said the report was tissues of lies.  He explained that deliberation is still ongoing on the plan by the federal government to remove subsidy, adding that NEC has not make a final decision on the issue.

“While there are indeed ongoing discussions on the issue of fuel subsidy, at no time has NEC made any such resolution as this report claims. Public discourse can be better served by seeking further clarification from relevant quarters on matters of such importance,” Akande said on his twitter page.

Sahara Reporter reported that the Osinbajo-led committee made series of recommendations on the deregulation issue, including the hike of petrol to over N300 per litre by the first quarter of the year.

The Committee, the online medium said “recommended that all retailers should post PMS prices at all times on a designated website and smartphone app — and they are expected to post price changes no earlier than within 15 minutes of the price change.

“At current rates, the PMS subsidy is reducing transfers into the federation by about N250billion per month, and could, if PMS subsidies are not eliminated, result in deductions of NGN 3 trillion in 2022

“The large-scale time-limited (6-months) cash transfer proposed as a way of transferring the subsidy “directly to the people” would cost N600 billion but would by paving the way for the elimination of PMS subsidies, enable the federation to recover N3 trillion in revenues that would otherwise go to PMS subsidies.

“If PMS subsidies are eliminated by February 2022, N250 billion in deductions would have been incurred, but the remaining N195 billion in anticipated PMS subsidy deductions could be redirected towards FGN funding of the cash-transfer programme.”

Meanwhile, a former Head of State Abdulsalami Abubakar, has warned that an increase in the price of petrol will push more Nigerians into poverty. “The expected fuel price increment will push more Nigerians into poverty. Over 80 million Nigerians are still cut off by poverty. Nigeria faces a food crisis worsened by the global COVID-19 pandemic,” he said at an event in Abuja on Thursday.