To alleviate the consequences of removing the petrol subsidy, the federal government has announced its intention to temporarily exempt diesel from value-added tax (VAT) for the next six months.
Femi Gbajabiamila, the Chief of Staff to President Tinubu, revealed this development as part of the waivers from the resolution reached between the Federal Government and leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) at the end of a four-hour meeting held at the State House on Sunday.
In a statement issued at the end of the meeting, Mohammed Idris, minister of information and national orientation, said the federal government is “committed to fast-tracking the provision of compressed natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy”
The proposal to implement CNG usage by the Federal Government and other stakeholders is a crucial step in the ongoing efforts to enhance the affordability of mass transportation, particularly following the removal of the fuel subsidy, which resulted in increased fuel prices.
Additionally, he stated that the government would see to the provision of funds for micro and small-scale enterprises, adding that the value-added tax (VAT) on diesel will be waived for the next six months.
In its latest monthly inflation data, the National Bureau of Statistics revealed that the average retail price of Automotive Gas Oil (Diesel) experienced an 8.57% increase.
In August 2023, consumers were, on average, paying N854.32 per litre, marking a rise from the lower cost of N786.88 per litre recorded in the same month of the preceding year.
Also, the Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for three months from October-December 2023.
“A sub-committee is to be constituted to work out the details of implementation of all items for consideration regarding government interventions to cushion the effect of fuel subsidy removal,”
“NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above,” the statement read.
