PBAT Call for Economic Transformation and Subsidy Mitigation


President Bola Tinubu addressed the National Economic Council (NEC) and emphasized that there should be no excuse for failure in transforming Nigeria's economy. The council, led by Vice President Kashim Shettima, consists of 36 governors, the governor of the Central Bank of Nigeria, and other government officials. Tinubu instructed the council to devise interventions to mitigate the impact of petroleum subsidy removal and support his administration's efforts to improve the country's economic fortunes.

During the meeting, the NEC discussed the recommendation by the National Income, Salaries, and Wages Commission to pay N702.919 billion as a consequential adjustment to workers as a cushion for the removal of fuel subsidy. Additionally, the council considered the provision of a monthly petroleum allowance of N25 billion to alleviate the effects of subsidy termination.

To address the challenges and problems associated with subsidy removal, a committee comprising governors from different regions, representatives from relevant agencies, and labor unions was established. The committee will submit recommendations within two weeks to the NEC for a comprehensive decision to alleviate the difficulties caused by subsidy removal.

The NEC meeting also focused on the removal of petroleum subsidy and its impact on prices. The National Automotive Design and Development Council presented the positive developments in the automotive industry, including the domestic production and assembly of vehicles by Nigerian companies, job creation, and the production of electric and CNG-powered vehicles. The governors discussed the need for legislative support and funding for these companies to reduce dependence on petroleum-powered vehicles.


The governors acknowledged the necessity of removing the petroleum subsidy, commended the government's decision, and highlighted the importance of implementing palliative measures to mitigate the impact on the poorest segments of society. The NEC meeting concluded with resolutions and recommendations, including leveraging the NG-Cares program, seeking additional financing from the World Bank, and involving the private sector in providing support to vulnerable individuals, households, and farmers.

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