Page 4 - AfrOil Week 04 2022

AfrOil COMMENTARY AfrOil

Ahmed (L) and Sylva (R) confer on January 24 (Photo: Nigeria World)

Nigeria puts PIA on hold

Following tumult over elimination of gasoline price subsidies, the Buhari

administration delays full implementation of the country’s new petroleum law

ACCORDING to the provisions of the Petro- not want to see ordinary citizens bear the finan-
leum Industry Act (PIA), Nigeria’s federal gov- cial burden of a policy change, but stopped short
WHAT: ernment is legally obligated to eliminate the of making any explicit statements about what
Nigeria’s federal gov- gasoline subsidy that has long kept domestic Abuja might do next beyond allocating addi-
ernment is proposing an gasoline prices far below market level within six tional budget funds to ensure that the subsidy
18-month postponement months of the law’s adoption. continues to be paid for the remainder of 2022.
for full implementation of That six-month deadline was due to fall next Earlier this week, though, the federal govern-
the new oil and gas law. month, in February, and officials in Abuja began ment made its intentions clear.
dropping strong hints last week that the admin- Following a meeting with Buhari on Jan-
WHY: istration of President Muhammadu Buhari uary 25, Minister of State for Petroleum
The suggestion comes in was looking for a way to defer its duty. Senate Resources Timipre Sylva told reporters that the
the wake of threatened President Ahmad Lawan took the lead on this Buhari administration intended to propose an
protests over the pending front, emerging from a meeting with Buhari on 18-month extension of the term for implemen-
removal of domestic
gasoline price supports. January 18 to say he had conveyed voters’ con- tation of the PIA, pushing the start date back to
cerns about the potential economic impact of a August 2023. The government will reach out to
WHAT NEXT: sudden rise in gasoline prices to the president. the National Assembly on this front soon, he
The postponement could According to Lawan, these statements struck said.
bolster the fortunes of a chord with Buhari. “I’m happy to inform Nige-
Buhari’s political party rians that Mr. President never told anyone that Protests called off
ahead of the next presi- the petroleum subsidy should be removed,” he The Buhari administration’s decision seems
dential election. declared. to have drawn a positive reaction for the time
The Senate leader went on to say that he did being.

P4 www. NEWSBASE .com Week 04 26•January•2022