Beyond Fuel Subsidy: NEC’s Vision for Wage Increments and a Gas-Driven Future

Explore NEC’s response to fuel subsidy removal, focusing on wage increments and the introduction of natural gas alternatives in Nigeria.

NEC’s Plan to Cushion Economic Impact

In response to the elimination of fuel subsidies, the National Economic Council (NEC), under the stewardship of the Tinubu administration, has proposed wage increments and the promotion of natural gas as feasible palliatives.

A committee is expected to be established by the NEC to orchestrate the distribution process for these measures, with the objective of finalizing operational modalities within two weeks.

Extensive Discussions and Significant Decisions

Bauchi State Governor Bala Mohammed conveyed that the NEC had held thorough discussions and made crucial decisions concerning the fuel subsidy removal and its ramifications on the national economy.

These decisions, according to the Governor, also incorporated insights from the preceding NEC, chaired by Vice President Osinbajo.

Deliberations on Salary Increment

The Council deliberated on recommendations for a consequential adjustment on allowances of N702.9 billion, and a monthly disbursement of no less than N25 billion naira.

Proposed by organized labor, these measures aim to mitigate the impact of the subsidy removal.

Furthermore, the Council considered suggestions received from the National Salaries, Income, and Wages Commission.

The Role of the Nigeria Labour Congress (NLC)

The NLC President, Mr. Joe Ajaero, recently proposed a wage award, which he suggested could be implemented promptly without waiting for the statutory period for the minimum wage law to expire.

This wage award, separate from the minimum wage, is designed to provide relief to the workers.

However, it doesn’t negate the upcoming review of the minimum wage slated for 2024.

Plans for Natural Gas Vehicles

The Council, according to Governor Mohammed, has considered soliciting funds from the World Bank and partners in London to introduce a Compressed Natural Gas (CNG) programme for vehicles in Nigeria.

This initiative is part of the measures envisaged to soften the impact of the fuel subsidy removal.

Confirmation from the Nigerian National Petroleum Company Limited (NNPC)

The Group CEO of the NNPC, Mele Kyari, confirmed the administration’s intention to introduce alternatives to petrol, such as compressed natural gas (CNG) and liquefied petroleum gas (LPG), for vehicles in Nigeria.

Who is Involved?

The committee comprises of the Governors of Kebbi, Benue, Kaduna, Bauchi, Cross River, Anambra, and Oyo State, each representing a distinct geopolitical zone in Nigeria.

In conclusion, the NEC’s response to fuel subsidy removal involves considering a salary increment and implementing natural gas alternatives.

This strategy will mitigate the economic impact and pave the way for a more sustainable energy policy.

for more info do follow /


What are the palliatives considered by the NEC in response to fuel subsidy removal?

The NEC is considering wage increments and the promotion of natural gas alternatives.

Who is leading the initiative to establish a committee for these palliatives?

The initiative is led by Vice President Kashim Shettima.

What is the role of the NLC in this matter?

The NLC has proposed a wage award separate from the minimum wage to provide relief to workers.

What is the proposed natural gas initiative?

A Compressed Natural Gas (CNG) programme for vehicles in Nigeria is being proposed to soften the impact of fuel subsidy removal.

Who are the members of the committee?

The committee includes the Governors of Kebbi, Benue, Kaduna, Bauchi, Cross River, Anambra, and Oyo State.

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