Governor Bala Mohammed of Bauchi State shared the outcomes of the NEC meeting, chaired by Vice President Kashim Shettima.
The Council extensively deliberated on the removal of petroleum subsidies and its implications for the economy. The submissions from sub-nationals and other stakeholders highlighted the need for measures to cushion the effect on workers and the vulnerable.
Governor Mohammed revealed that the NEC received recommendations from the National Salaries, Incomes, and Wages Commission, suggesting ways to utilize revenue increases in order to alleviate the impact on workers and other individuals. Among the proposals was a consequential adjustment estimated at N702,919.8 billion to be provided as petroleum allowances for all workers, along with a monthly offering of N23 billion or N25 billion to alleviate the burden on employees.
In addition to the suggestions put forward, stakeholders emphasized the importance of reviewing the country's salaries and wages system. To address these concerns and find solutions, the NEC established a small committee chaired by Governor Nasiru Idris of Kebbi State.
The committee comprises governors from different geopolitical zones, including Governor Charles Soludo of Anambra (South-East), Governor Hyacinth Alia of Benue (North Central), Governor Uba Sani of Kaduna (Northwest), Governor Bala Mohammed of Bauchi (Northeast), Governor Bassey Otti of Cross River (South-South), and Governor Seyi Makinde of Oyo (Southwest).
The committee also includes representatives from the Central Bank of Nigeria (CBN), the Budget Office, the Office of the Attorney-General of Nigeria, the Nigerian National Petroleum Company Ltd (NNPCL), the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and Rukayat El-Rufai.
Governor Mohammed affirmed that the committee would work diligently to determine areas for palliative measures and develop recommendations to alleviate the challenges faced by workers and vulnerable groups. Their proposed holistic decision will be presented to the NEC for prompt action within two weeks.
Furthermore, the Council discussed palliative measures to mitigate the impact of the subsidy withdrawal policy through the NG-Cares Programme. Governor Dikko Radda of Katsina State stated that additional funding from the federal government, World Bank, development partners, and the private sector in Nigeria would be sought to supplement the NG-Cares Programme.
This $750 million initiative, initiated in January 2022, aims to provide emergency palliatives and social safety nets to smallholder farmers and Micro, Small, and Medium Enterprises (MSMEs). Governor Radda specifically mentioned the possibility of approaching the World Bank for additional financing for the NG-Cares Programme.
The recommendations put forth by stakeholders and the ongoing discussions within the NEC reflect the commitment to address the challenges arising from the removal of petroleum subsidies and to alleviate the impact on workers and vulnerable segments of society.