Fuel subsidy: Nigerian govt to consider recommendation on N702bn allowance for workers

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The National Economic Council (NEC) on Thursday set up a committee to look at the National Salaries, Incomes and Wages Commission (NSIWC) recommendations on palliatives for workers following the removal of the fuel subsidy.

Thursday’s meeting was the first for the Council headed by Vice President Kashim Shettima with the governors of the 36 states as members since the current administration assumed office last month.

The committee which has members from each of the six geo-political zones is headed by the Kebbi State Governor, Nasiru Idris.

The Bauchi State Governor, Bala Mohammed, who addressed State House correspondents at the end of the meeting, said the committee is expected to review the N702 billion recommended by NSIWC as a cost of living allowance to cushion the effects of the subsidy removal on civil servants.

President Bola Tinubu had shortly after the announcement on the removal of fuel subsidy directed NEC to work on measures that would reduce the burden of the policy on vulnerable Nigerians.

READ ALSO: NBA group demands measures to cushion effect of fuel subsidy removal 

Mohammed said: “The NEC had received recommendations on the various ways and means that the country can use whatever increases that we have in the revenue to mitigate the impact that this is going to make on the lives of our workers.

“And so they recommended that there should be a consequential adjustment, estimated at N702.92 billion as part of the allowances that should be given as petroleum allowance to all workers and as well as N23 or N25 billion monthly offer to cushion the effect on workers.

“In addition to the palliative, the government looked at all the issues, challenges, and problems holistically and set up a small committee of the council to review and come up with a term of reference to organise areas specifically where this palliative can come from and how it will be dispensed to alleviate the problem of workers and other vulnerable groups.”

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