Compensation Mechanisms for Fuel Subsidy Removal in Nigeria /

Since the Vice President is the Chairman of the NPC, the periodic report of the DSRM should be submitted directly to him through the Minister of National Planning who, as per the 1999 constitution, is the Deputy Chairman of the NPC. [...] Based on the findings of this study, there should be a coordinating department and principal implementing agencies for the implementation of each of the fuel subsidy removal compensating programs.1 Initial estimates suggest that the proposed eight programs could be implemented with a budget not exceeding ₦250 billion (USD 1.2 billion) 2 at the year of inception of the programs, while the cost shou [...] The subsidy frequently strains the budget, forcing the government to resort to increasing the price of fuel at the pump. [...] It is difficult to ascertain the veracity of the claims by the PPPRA due to the opaque nature of the operations of the petroleum industry, especially the NNPC. [...] Also related to the subsidy regime is the power play between the three tiers of government (federal, state and local) in the management and sharing of revenue accruing into the Federation Account and the Excess Crude Account (ECA) because the payment of subsidies by the federal government through the Petroleum Support Fund (PSF) implicitly draws on the Federation Account.