TheCable

After days of deliberations on the report of its committee on public finance and revenue, the national conference has finally approved the removal of subsidy on petroleum products.

Hon. Dan Nwanyanwu, the chairman of Labour Party, had moved the motion on behalf of 24 other delegates supporting the removal. The house later amended the recommendation and adopted it.

The motion, which had the support of majority, mandates the federal government to build new refineries and upgrade existing ones to full capacity within three years from the date of the recommendation’s approval.

It also stated that private sector entrepreneurs who have been granted licences to build new refineries should automatically forfeit their licences if they are unable to build new refineries within three years.

This, according to the motion “is to enable other participants who are ready and willing to build such refineries within a period of three years the opportunity to do so.”

The motion further stated that upon fulfillment of the preceding conditions, the federal government shall be free to remove any existing subsidy from petroleum products.

Until today, the removal or retention of subsidy on petrol had generated different reactions among members, with tension rising anytime the issue was brought to the floor of the conference.

The confab’s removal evokes memories of President Goodluck Jonathan’s announcement, on January 1, 2012, of the removal of fuel subsidy. However, following the nationwide Occupy Nigeria protests (pictured) seeking a reversal to the status quo, the president was eventually forced to effect only partial removal of subsidy.