13 December 2011
THE National Economic Council (NEC) yesterday reiterated its support for the withdrawal of petroleum subsidy next year, saying the consequences are less than those that Nigerians will suffer if it is retained.
NEC, comprising of the 36 state governors, Ministers of Finance, National Planning, the Chief Economic Adviser to the President and Governor of Central Bank of Nigeria (CBN), is chaired by Vice President Mohammed Namadi Sambo.
The Council also authorized states interested in distributing electricity to do so subject to their procurement of distribution licence.
Briefing newsmen after the meeting at the State House, Abuja, Anambra State Governor Peter Obi, who was joined by his Ondo State counterpart, Olusegun Mimiko, Minister of National Planning, Dr. Shamsudeen Imam and Minister of Power, Professor Barth Nnaji, said the removal of subsidy was a question of inevitability judging by the current debt portfolio of the federal government and gains expected.
“Like the President said, either way there will be grave consequences and one is lesser if we take it. There is no place such decision has been taken that people do not feel a temporary pain,” he said.
Obi observed that the opposition to the deregulation of the downstream sector of the petroleum sector arose from mistrust of government in the past.
“But there is a firm promise, it is documented and it is for all of us to hold on to it. If we do it, yes there might be temporary problems but the gains far outweigh the consequences if we don’t do it.”
The Anambra governor also said state governments wishing to distribute power using existing power distribution companies could enter into partnership with such companies but those that want to utilize their own companies could now apply for license.
The council set up a committee headed by Cross River State Governor Liyel Imoke to look into power distribution and harmonize it in view of the current decision.
Other members of the committee include: Governor Mimiko (South West), Benue State Governor Gabriel Suswam (North Central), Borno State Governor Kashim Shettima (North East) and Kaduna State Governor Patrick Yakowa (North West).
Ministers of Power, National Planning, Chief Economic Adviser to the President and the Director General of Bureau for Public Procurement are members.
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