Subsidy removal: Reps finally allow Kachikwu in for questioning, here are 5 things he revealed

– Kachikwu makes clarifications on fuel subsidy
removal after embarrassment by lawmakers
– Reveals federal government had no option than to
remove subsidy
After the initial rowdy session that greeted his arrival at the
House of Representatives, Nigeria’s minister of state for
Petroleum Resources, Dr Ibe Kachikw u, has made
clarifications on the fuel subsidy removal.
There had been reports earlier today that some lawmakers
on the platform of the Peoples Democratic Party (PDP)
refused to allow the minister into the House for any
explanations on the fuel subsidy removal, but some of their
colleagues later prevailed over them.
And when he was finally allowed into the premises to make
his address, Kachikwu told members of the House of
Representatives that they were left with no option than to
increase the price of fuel.
Here are five major things he said during the meeting:
1. The diminished foreign exchange supply situation in
Nigeria, which forced marketers to stop importation and
imposed over 90 per cent supply on the Nigerian National
Petroleum Corporation (NNPC) since October 2015 is
responsible for the subsidy removal.
2. Significant decline in government’s foreign exchange
revenues and renewed sabotage and pipeline vandalism in
the Niger Delta.
3. There was no provision for subsidy in the 2016
Appropriation Act and as at Monday, the fuel price of 86.50
gave an estimate subsidy claim of 13.7 Naira per litre,
which translates to 16.4 billion Naira monthly.
4. The new price band had gone into effect and the market
had stabilised in terms of product availability.
5. NNPC will no longer resort to federation barrels and
would endeavour to meet its obligation to pay FAAC 100
percent of its entitlement from the 445,000 barrels per day
in the coming months.
Since the removal of fuel subsidy on May 11, there have
been series of reactions by Nigerians, especially one where
they said the immediate past president, Goodluck Jonathan
meant well for the citizens.
Meanwhile, the Nigeria Labour Congress (NLC) as well as
the Trade Union Congress (TUC) have agreed to shut down
the economy o n Wednesday, May 18, if the President
Muhammadu Buhari-led federal government refuses to
revert to the old price.
The unions have vowed to stage a nationwide protest and
industrial action that will cripple activities in one Africa’s
largest economies which they claim will not end until the
president agrees to their demands.