Fuel Subsidy Removal Shouldn't Affect Budget - NECA To Buhari

The organised private sector under the umbrella of Nigeria Employers’ Consultative Association (NECA) on Saturday, January 9, commended the Federal Government for the removal of the fuel subsidy.

The Director-General of NECA Olusegun Oshinowo made the commendation during a press conference in Lagos.

Oshinowo said that the new dispensation would be predicated on so-called “price modulation”.

He expressed his worry over the issue of fuel subsidy saying that hopefully its financing would not surface again in government’s budget.

According to the director-general of NECA, it is pertinent for the government to focus on the policy framework as well as incentives that will ensure that Nigeria is self-sufficient in the refining capacity to meet her energy needs.

However, Oshinowo noted that the organised private sector was expecting a decisive, unambiguous and explicit policy statement that the subsidy regime had ended.

He said that the government should also ensure the privatisation of the four refineries and jointly agree on a timeline and modalities with investors on the utilisation of the licences already issued for the setting-up of private sector-owned refineries.

The director-general stated that there should be redefinition of the role of the Petroleum Products Pricing Regulatory Agency (PPPRA) as an ombudsman.

This would ensure compliance with products standards and fair competition that would guarantee reasonableness of products pricing, Oshinowo claimed.

He urged the government not to delay any further in pursuing the points listed by NECA.