No date fixed for fuel subsidy removal – FG

Minister of Information, Labaran Maku

THE Federal Government has denied speculation that it has surreptitiously removed the subsidy on petroleum products.

The government at the end of the weekly Federal Executive Council meeting in Abuja said it had not fixed a date for the commencement of the zero-subsidy regime.

Minister of Information, Labaran Maku, who briefed journalists on the outcome of the FEC said, “No take -off date has been announced for subsidy removal. But the truth of the matter is that our country is in a very difficult economic situation.

“To continue to run Nigeria using one third of the budget to (go on) one product is to absolutely a path to a greater difficulty for the economy. We have been talking and the consultation is a continuous one.

“We are talking about this because every sector we opened up had produced results. People who are emotionally talking about it are not actually addressing what we are saying.”

As part of the preparation for the deregulation of the oil sector, the minister said the original builders of the nation’s four refineries had been asked to carry out Turn-Around-Maintenance so that they could be producing at 100 per cent capacity.

Maku said FEC had also resolved to convene a special stakeholders meeting in 2012 to examine the options and opportunities available to the country to attract foreign investors through Public Private Partnership.

He added that all ministries, departments and agencies of government would also set up special units to train members of staff on ways of attracting PPP.

The FEC also gave the Ministry of Finance the go-ahead to pick up additional 62,000 shares allocated to the country in Africa Reinsurance Corporation.

The shares will cost the country $8.804m. Based on a memo presented by the Ministry of Petroleum Resources, the council gave approval for the award of contract for the execution of the outstanding works of gas supply to Niger Delta Power Corporation, Alaoji, in favour of Messrs OLISERV Limited in the sum of N2,582,787,557.23. The FEC adjourned for the year to resume January 11, 2012.

"Its quite obvious our govt at times dont think critically before they push policies of sensitive nature as this,now that the coast is getting clear for war they are now getting back to their senses but still dancing brake dance lol"........Fingers crossed