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NEC recommend N702bn as allowance for civil servants to cushion subsidy removal

Following the removal of fuel subsidy, Stakeholders have made presentations to the National Economic Council, NEC, recommending over N702.92 billion consequential adjustments on workers’ allowances to cushion the effect of the removal of subsidy on the premium motor spirit in Nigeria.

The Governor of Bauchi State, Bala Mohammed stated this on Thursday while briefing State House correspondents at the end of the Council’s meeting presided over by Vice President Kashim Shettima.

Governor Mohammed said that the NEC took “very far-reaching decisions and deliberations on the issue of the removal of petroleum subsidy and its general impact on the economy.”

According to the governor, the Council had submissions from sub-nationals and other stakeholders on the impact of the policy on workers and the vulnerable.

“Specifically, on the issue of national salaries, incomes and wages commission, NEC received recommendations on the various ways and means that the country can use whatever increases that we have in the revenue to mitigate the impact on the lives of our workers and all those people involved.

And so they gave us a scenario, recommending that there should be a consequential adjustment, estimated at N702,919.8 billion as part of the allowances that should be given as petroleum allowances to all workers as well as a N23billion or N25 billion monthly offer to cushion the effect on workers.”

He said the stakeholders made other suggestions that would go a long way in making sure that there is a review of the country’s salaries and wages.

Small Committee

Governor Bala Mohammed said the NEC looked at all the issues, challenges and problems and “set up a small committee of the Council to review and come up with a term of reference to determine areas where palliatives could come from and how it would be dispensed to alleviate the problem of workers and other vulnerable groups.”

He said the committee has the Governor of Kebbi State, Nasiru Idris, as Chairman.

Other members of the committee are Governor Charles Soludo of Anambra, representing the South East geopolitical zone; Governor Hyacinth Alia of Benue State, representing, North Central; Governor Uba Sani of Kaduna, representing Northwest; Governor Mohammed of Bauchi State, representing the northeast, Governor Bassey Otti of Cross River, representing the South-South and Governor Seyi Makinde of Oyo state, representing southwest.

Representatives from the Central Bank of Nigeria, CBN, the Budget Office, the Office of the Attorney-General of Nigeria, the Nigerian National Petroleum Company Ltd, NNPCL, the Nigeria Labour Congress, NLC, the Trade Union Congress, TUC, and Rukayat El-Rufai are also members of the committee.

We can sit within two weeks to come up with a recommendation to NEC for a holistic decision that will be taken immediately to alleviate the problem that may be encountered by the removal of the subsidy,” Governor Mohammed said.

NG-Cares Programme

Governor of Katsina State, Dikko Radda said that the Council discussed palliative measures to mitigate the impact of the subsidy withdrawal policy through the NG-Cares Programme.

The NG-Cares Programme is a $ 750 million from the World Bank, which commenced in January 2022 in Nigeria.

It is designed to provide emergency palliatives and social safety nets to smallholder farmers and Micro, Small and Medium Enterprises, and MSMEs.

Governor Radda said recommendations were made for additional funding to be sourced from the federal government, World Bank, Development Partners and the Private Sector in Nigeria.

Specifically, the World Bank can be approached for additional financing on NG-Cares Programme,” Governor Radda said


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