This Day
13 January 2012
The chairman of Northern Governors Forum, Governor Mua' zu Babangida Aliyu, is canvassing that if fuel subsidy is restored after negotiations with labour,
states should henceforth pay according to consumption levels.
This means Lagos , which consumes an estimated 60 per cent of petrol in Nigeria
deregulation savings is estimated at a mere N10 billion.
Aliyu, who was part of the negotiating team yesterday, was said to have argued
that Northern governors were not in favour of the old subsidy payment regime
which was usually deducted from the federation account before allocations were
shared.
According to sources at the meeting, Aliyu said there were not many cars in
to the subsidy fund equally when consumption is mainly in the South.
Aliyu' s argument may re-ignite the debate about fiscal federalism, as Lagos
State has also been canvassing that the Value-added Tax (VAT), most of which is generated by consumption in Lagos
In the meantime, Delta State
He also directed commercial transporters to revert to the old transport fares
before the subsidy removal.
He set up a three-man palliatives committee on the removal of fuel subsidy with
Mr G. O. Onosode as chairman, as wellas Chief Philip Asiodu and Mrs. Elizabeth Adegite as members with the mandate to monitor the implementation of the proceeds from subsidy removal in the state.
Uduaghan said: “l appeal to transport operators in the state mass transit scheme
to revert back to the old fares charged before the removal of fuel subsidy as my
administration will subsidise the fares for the next six months.
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