By Mathew Dadiya, Abuja

The National Economic Council (NEC) has moved to provide palliatives for workers and vulnerable groups in the country following the removal of petroleum subsidy, which has heightened the cost living. 

Arising from its maiden meeting under the present dispensation, which was presided over by the Chairman, Vice President Kashim Shettima at the Presidential Villa, Abuja on Thursday, it announced the setting up of a committee to work out, within two weeks, the modalities for organizing and distributing the palliatives.

Disclosing these to State House correspondents after the meeting on Thursday in Abuja,, Governor of Bauchi State, Bala Mohammed, joined by four other colleagues – Katisna State governor Umar Radda, Yahaya Bello of Kogi state,  Dapo Abiodun of Ogun State, and Abia State governor, Alex Otti said the council also discussed the possibility of obtaining funds from the World Bank and London partners to implement the programme of Compressed Natural Gas (CNG) for vehicles in the country as part of measures to bring down the price of fuel.

Mohammed said that the Council deliberated on other  recommendations including the one by the organized labour for N702 billion consequential adjustment on allowances as well as the about N23 to N25 billion monthly they requested to cushion the effects of the subsidy removal.

While noting that NEC took very far reaching decisions and deliberations on the issue of the removal of petroleum PMS subsidy and its general impact on the economy, the governor explained: “Specifically on the issue of national salaries, income and wages commission, NEC had 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 that is going to make on the lives of our workers and all those people involved. 

“And so, they recommended and 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 allowance to all workers and as well as a 23 or 25 billion monthly offer to cushion the effect on workers and others suggestion that will go a long way in making sure that there is review of our salaries and wages.”

He disclosed that the Council looked at all the issues including “the challenges and problems holistically and set up a small committee of council to review and come up with a term of reference to organized areas specifically where this palliatives can come and how it will be dispensed to alleviate the problem of workers and other vulnerable groups.

“Members of the committee is composed of Governor Kebbi as Chairman; Anambra representing the South East geopolitical zone; Governor Benue, North Central, Governor of Kaduna, Northwest; my humble self, Bauchi, representing the northeast; Governor Cross River, South South and Oyo state,southwest.

“Other relevant agencies were also included. They comprised of a budget office, representative of the CBN, representative of the Office of the Attorney General of the Federation, representative of NNPC, representative of TUC and NLC and of course, Rukayat El-Rufai, so that we can sit within two weeks to come up with recommendation to NEC for a wholistic decision that will be taken immediately to alleviate the problem that may be encountered by the removal of the subsidy.”

The Governor of Bauchi State, said the input of the committee on palliatives earlier set up and headed by former Vice President Yemi Osinbajo, would not be discarded but integrated into the ongoing process.

Governor Alex Otti explained that as part of the inaugural National Economic Council meeting, major focus was on the removal petroleum subsidy and implied removal of subsidy on foreign exchange, which has led to some convergence of some sort. 

He also said that the impact of these two actions definitely is increased prices, and that’s a way to solve the problem and reduced the shock, a presentation was made by the National Automotive Design and Development Council on the great things that are happening in the automotive industry. 

“It was that about six states in the country, including Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna and Kano and have benefited from domestic production of vehicles or assembling of vehicles by Nigerian companies operating in Nigeria. And these companies include INNOSON, Maikano, Dangote Peugeot, Peugeot automobile of Nigeria, Stallion Hundai, Honda, Elizade/Toyota, Coscharis and Ford, Kojo Motors, Jet Systems motors. 

“At the moment, about 50,000 jobs have been created by this simple action of either assembling vehicles in Nigeria or producing them Nigeria. A great feat is that some of these companies have gone into the manufacturing or assembly of electric vehicles and vehicles powered by CNG – compressed natural gas. The impact of this is that the pressure on the price of petroleum products particularly PMS will be reduced. The more we use electric vehicles and CNG powered vehicles,” he said 

According to the Abia State governor, some of the decisions that were taken include that legislative support will need to be given to these companies that are doing great things in Nigeria.

“It is important to underscore the point that former President had made a commitment that by 2060 that Nigeria would join countries that will eliminate fossil fuel powered vehicles and move to electric vehicles in pursuit of the net zero emission that some of the countries in Europe, America and Asia have signed on to. So if that must happen, then we need to ramp up the production of electric vehicles and CNG vehicles.

“It is estimated that if we give legislative support to this company, that about a million jobs from the 50,000 jobs that exist in that industry would be created,” he added.

Koki State governor, Yahaya Bello, said issue of flooding or flood disaster across the country was also discussed adding that at 128th NEC meeting held on 28th October 2022, the then chairman of Nigeria Governors Forum and the former governor of Sokoto state, Aminu Tambuwal, drew the attention of the council to the devastating effects of the 2022 flood which affected almost all the states of the Federation, resulting into loss of lives and livelihoods. 

Bello said that the council resolved, as at that time to set up a five man ad hoc committee on flooding, comprising of governance of Jigawa, Kogi, Anambra, Bayelsa, Lagos and Yobe States and co-opted  some other ministries and agencies. The terms of reference was to review the current flooding situation in the country and design a template for compensation of victims.

The Council, he said, noted that there were limitations in carrying out the assignment pointing out the delay in the non submission of field templates by some states, as only 16 states out of the total number of states affected forwarded their submissions to NEC Secretariat.

He said up to date, about 15 others were yet to do so, saying, “the submission from defaulting states are awaited as we speak.”

NEC recommended that the plight of victims of the unfortunate flawed disaster across affected states of the Federation could be alleviated if the much needed intervention from the federal government materialized without further delay.

 The Council called for the need to expedite release of funds to affected states as recommended by designated committees constituted by the federal government to that effect.

“So resolution of NEC, council resolved at all states should make a comprehensive submission by next week. Members are also to liaise with the Office of the Vice President, Office of the Secretary to the government of the federation and also all the private sector and other well spirited Nigerians to help I. tackling this flooding in the country,” the governor said.

Ogun State governor, Dapo Abiodun who spoke on petroleum, said, the contribution by some of the key oil and gas sector heads like the NNPC Group Chief Executive Officer, Mele Kyari and Nigeria Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk gave inputs. 

“We had from the marketers and of course, it was a robust dialogue, cross fertilization of ideas by all the executive governors across the length and breadth of Nigeria today,” Abiodun said.