Fuel Subsidy Removal News Updates 14th July 2023

Fuel Subsidy Removal in Nigeria: Tinubu’s N500bn Palliative Plan Approved

Key Points:

• The Nigerian Senate approves President Bola Tinubu’s request of N500 billion to alleviate the effects of fuel subsidy removal.
• The funds are part of the 2022 Supplementary Appropriation Act, and will be used for several key initiatives, including road infrastructure improvements and agricultural support.
• Tinubu’s request was initially presented to the House of Representatives, and was later approved by the Senate.

The Nigerian Senate, following the steps of the House of Representatives, has endorsed President Bola Tinubu’s proposition to set aside N500 billion for relief efforts to help alleviate the impact of the petrol subsidy removal on Nigerians.

This pivotal decision, carried out on July 14, 2023, is set to shape the future trajectory of Nigeria’s economic landscape.

Senate’s Approval

The Senate’s ratification arrived swiftly, mere hours after the House of Representatives had agreed to the appeal.

This legislative approval showcases the aligned vision between both chambers of the legislature, a significant development for the nation.

The upper legislative body granted this request following the amendment of the 2022 Supplementary Appropriation Act.

In essence, this N500 billion fund was earmarked from the total sum of the N819 billion Supplementary Appropriation Act of 2022.

Opeyemi Bamidele, the majority leader who put forth the motion, aimed to suspend the relevant standing rules of the Senate, thereby enabling the red chamber to provide swift approval to this pressing request.

As the Senate meticulously considered clauses of the bill within the “committee of the whole”, they approved N185 billion for the Federal Ministry of Works.

This substantial budget allocation is geared towards mitigating the impact of the flooding experienced across Nigeria in 2022, specifically targeting the restoration of damaged road infrastructure across the country’s six geopolitical zones.

Further Allocations

As part of the relief effort, the Senate also approved N35 billion for the National Judicial Council (NJC), and N19.2 billion for the Federal Ministry of Agriculture.

This allocation is aimed at counteracting the extensive damage to farmlands across the country caused by severe flooding in 2022. Additionally, the Senate approved N10 billion for the Federal Capital Territory Administration (FCTA) for implementing “critical projects.”

Tinubu’s Request to NASS

President Bola Tinubu had previously submitted a letter to the National Assembly, advocating for an amendment to the 2022 Supplementary Appropriation Act.

The aim was to allow the Federal Government to source N500 billion for palliative measures to cushion the blow of the subsidy removal.

The Speaker of the House of Representatives, Tajudeen Abbas, who read the president’s letter during a plenary session, announced that this money would be extracted from the 2022 Supplementary Appropriation Act of N819.5 billion.

The President’s letter underscored the necessity of the request, elaborating on the urgency of sourcing funds to provide necessary palliatives to alleviate the effects of the fuel subsidy removal in Nigeria.

The sum of N500 billion has been set aside from the 2022 Appropriation Act for the provision of these palliatives.

Tajudeen Abbas noted that lawmakers would consider Tinubu’s request at the plenary session on the following Thursday, and encouraged members intending to make contributions to be prepared for discussion.

Conclusion

The approval of Tinubu’s request is a significant step towards addressing the impacts of the fuel subsidy removal. It demonstrates the government’s commitment to lessening the burden on Nigerians, showcasing proactive measures to mitigate the challenges posed by subsidy removal. As the process unfolds, it’s essential to monitor the effective implementation and impact of these allocated funds on their targeted areas.

The leadership and commitment shown by the House of Representatives, the Senate, and President Bola Tinubu point towards a promising path ahead, where the challenges of today can be transformed into the stepping stones of tomorrow. This collective effort to source funds for palliative measures not only alleviates immediate burdens but also sets a precedent for future responses to national economic adjustments