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Fuel Subsidy Removed,No Going Back.

Governors and Ministers yesterday held a meeting (National Economic Council) chaired by Vice President Namadi Sambo which lasted for hours in Abuja. The purpose of the meeting was to endorse the proposed fuel subsidy removal. The fuel subsidy removal was endorsed and NEC also approved the removal of the electricity distribution from the Exclusive list to the Concurrent list.

Governor Peter Obi said that the Governors have unanimously agreed to support the removal of subsidy by President Goodluck Jonathan January  next year. The  Federal  Government has also played its own part by mapping out plans on how the funds from the deregulation next year is going to be used in creating safety paths and infrastructural projects to help the poor ones cushion the effect of the aftermath of deregulation.

Reduction of infant mortality rate, maternal mortality, youth unemployment, urban mass transport scheme, high profile infrastructures such as roads, rails, water resources, refineries and power. States and Local Governments should also  prepare their own plans and work hand in hand with the Federal Government to see that these programmes are implemented to the benefit of Nigerians.

Free entry and exit of investors, competition and adequate supply of products are part of the benefits/advantages of the deregulation. On power sector reform, NEC said that any state that wants to generate power can do so but has to get a license. Federal Government’s policy is to also encourage the  states to generate power to enhance economic growth. To this end, the National Electric Regulation Commission(NERC) has been directed to issue operational licenses to states which intend to generate or distribute Power.

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