The advisor body has called on Buhari to work out “detailed and coordinated” plan to remove subsidy on premium motor spirit (PMS), differently known as petrol, TheCable reports.
The committee, whose report is expectable for influence the policy way of the new administration, also suggested that kerosene subsidy should be scrapped immediately.
While kerosene is formally N50 per litre, Nigerians pay as much as N150 despite the existence of subsidy — a case of dual jeopardy for the administration and consumers but a source of massive income for traders and fuel import contractors.
The committee also asked the president to privatise Nigeria’s four refineries by taking the Nigerian Liquefied Natural Gas (NLNG) as a model.
These proposals are intended to “eliminate waste and redirect resources to fuel development, growth and job creation”, according to the committee headed by Ahmed Joda, former super perm secretary.
Petrol subsidy, which swallows billions of dollars every year, has been a very volatile case in Nigeria’s political economy since the mid-1980s, leading to riots and demonstrations because of the consequent increase in pump prices of fuel products.
Attempts by the government of ex-president Goodluck Jonathan to remove the subsidy in 2012 were welcomed with nationwide protests amidst claims of scam in payments to marketers running into trillions of naira. Jonathan finally reversed the policy.
Federal government now owes oil marketers over N200 billion, a development that recently resulted in a nationwide fuel scarcity as they cut down on importation.
The Joda committee has also asked Buhari to pay indebtedness of salary and fuel subsidy: “failing which it could lead to mass labour unrest which could undermine the goodwill of the Administration”.
The advisory body recommended that all superior subsidy liabilities should be audited and the confirmed claims paid to traders to “ensure PMS is readily available to the market to avoid further fuel queues”.
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