The National Economic Council (NEC) says it has received a proposal from stakeholders for a consequential adjustment estimated at N702.9 billion to cushion the effect of subsidy removal on Nigerian workers.
Gov. Bala Mohammed of Bauchi State briefed State House correspondents after NEC meeting presided over by Vice President Kashim Shettima on Thursday at the Presidential Villa, Abuja.
He said that it was resolved that a committee be set up to appraise the recommendation with regards to how funds would be sourced and the mode of disbursement.
“NEC has taken very far reaching decisions and deliberations on the issue of the removal of petroleum Premium Motor Spirit subsidy and its general impact on the economy, the federation and the sub nationals, including workers and everybody, that are vulnerable.
“Specifically on the issue of National Salaries, Income and Wages Commission, NEC has received recommendations on the various ways and means that the country can use whatever increases that we have in the revenue to mitigate the impact that is going to make on the lives of our workers and all those people involved.
“They gave us a scenario recommending that there should be a consequential adjustment, estimated at N702.9 billion as part of the allowances that should be given as petroleum allowance to all workers and as well as a N23 or N25 billion monthly offer to cushion the effect on workers.
“There were other suggestion that will go a long way in making sure that there is review of salaries and wages.
“In addition to the palliative, government looked at all the issues, the challenges and problems holistically and set up a small committee of council to review and come up with a term of reference to organised areas, specifically where this palliative can come and how it will be dispensed to alleviate the problem of workers and other vulnerable groups.’’
According to him, the committee is composed of Governor of Kebbi State as Chairman, Governor of Anambra representing the South East geopolitical zone and the Governor of Benue, representing the North Central.
Mohammed listed others as the Governor of Kaduna State representing North West, Governor of Cross River, South South, Governor of Oyo State, representing South West while he, Mohammed, represented North East.
He said that relevant agencies were also included in the committee.
“They comprised the Budget Office, representative of the CBN, representative of the Office of the Attorney General of the Federation, representative of NNPC Ltd, representative of Trade Union Council and Nigerian Labour Congress.
“And of course, Rukayat El-Rufai, so that we can sit within two weeks to come up with recommendation to NEC for a holistic decision that will be taken immediately to alleviate the problem that may be encountered by the removal of the subsidy,” he said.