National Economic Council (NEC) Proposes Post-Subsidy Palliatives: Key Highlights
The National Economic Council (NEC) convened to address the impact of petroleum subsidy removal on Nigerians. Under the leadership of Vice-President Kashim Shettima, the council engaged in over five hours of deliberation at the state house.
The outcome of the meeting included several key proposals aimed at easing the burden on citizens during this period. Here are the highlights of their recommendations:
1. Cash Reward and Salary Arrears for Civil Servants: The council proposed a cash transfer programme for states based on their respective social registers. Additionally, a cash reward policy for public servants for six months was recommended, along with the emphasis on paying outstanding liabilities such as pensions and gratuities to alleviate hardship.
2. Support for MSMEs: To stimulate business growth, the council suggested that the government focus on funding micro, small, and medium enterprises (MSMEs) with single-digit interest rates.
3. Conversion to Autogas: In a move towards energy transition, the council recommended the immediate implementation of the Energy Transition Plan, focusing on transitioning mass transit vehicles to compressed natural gas (CNG). In the long term, they proposed the establishment of manufacturing and assembly plants for electric vehicles (EVs) across the country. In the interim, encouraging the conversion to CNG was suggested to create employment and reduce petrol dependency.
4. Grains and Fertiliser Distribution: To address food security and price escalation, the council agreed that state governments should distribute food items, grains, and fertilisers at rates acquired from the National Emergency Management Agency (NEMA). States have the option to sell them at subsidised rates or distribute them for free to ease the burden on citizens.
5. Reducing Cost of Governance: The council stressed the importance of reducing the cost of governance at every tier of government. Public officials were advised to cut back on the number of cars in their convoys and the aides they appoint. The need for sensitivity to the current economic situation and the elimination of waste and irrelevances was emphasized.
6. Minimum Wage Review: Over the medium to longer term, the council mentioned the possibility of negotiating a new minimum wage. This topic will be on the table and subject to negotiation through appropriate structures.
These proposals reflect the government’s commitment to finding solutions that alleviate the challenges faced by Nigerians in the wake of the petroleum subsidy removal.
