Fuel Subsidy: Abiodun meets labour leaders on palliatives for workers

The Ogun State Governor, Dapo Abiodun, has promised to implement measures to cushion the effect of the removal of fuel subsidy on workers in the state.

The governor said this during a meeting with labour leaders at his Oke Mosan office, in Abeokuta, on Tuesday.

President Bola Tinubu in his inaugural speech on 29 May declared that “subsidy is gone,” bringing forward by one month the schedule for the removal made by the administration of former President Muhammadu Buhari.

Labour unions in the country condemned the removal and vowed to begin a strike today (Wednesday) but eventually suspended the plan after meeting with the representatives of the president.

Acknowledging that the subsidy removal would have harsh economic effects on Nigerians, especially disposable income earners, Mr Abiodun promised to find ways of cushioning the impact on the residents of the state.

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“I called this meeting so that we can rob minds to find different options in view of the recently announced long-awaited deregulation of the Premium Motor Spirit otherwise known as petrol by President Bola Ahmed Tinubu.

“We are not, as a responsible administration, unmindful of the consequences that the regulation would cause in terms of its effect on the disposable income of the workers.

“We have noted that the price of petrol is now N500 from slightly above N200. There is a relationship between the cost of PMS and transportation and cost of transportation and cost of goods and services.

“Since the announcement, as the governor and a player in the industry, I have been concerned on the multiplier effects as it would affect workers going to and from work and how it would affect their responsibilities and wellbeing,” the governor noted.

He said both the government and labour leaders need to sit and come up with implementable options that would make life bearable for the people.

The governor said the labour leaders should not see the plan of the government as compensation for the increase in the price of products, but to reduce the impact.

“What obtained in the past was that N4 trillion was spent annually. We had to borrow the money to subsidize our energy cost and it was not efficiently utilized. Our petrol made their way to Cameroon, Benin Republic, Togo and other West African countries around us.

“We are confident that with this action, we can know the true consumption of PMS in Nigeria and the savings can be used for other sectors for the benefit of our people,” he said.

Speaking with journalists at the sideline of the meeting, the Chairman of the Nigeria Labour Congress (NLC) in Ogun State, Hameed Ademola, said the meeting was called by the governor.

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Mr Ademola disclosed that the meeting set up some committees that will report back to the meeting on Thursday.

He commended the governor for showing concern about the plight of workers in the state.

Those present at the meeting were chairpersons and secretaries of the Trade Union Congress (TUC), Nigeria Labour Congress (NLC) and the Joint Negotiation Council (JNC).

Also at the meeting were the state’s Head of Service, Kolawole Fagbohun, and the Permanent Secretary of the Bureau of Establishment and Training, Lydia Fajounbo.