TheNewsGuru

Tag: Subsidy removal

  • Good life Nigerians were living before subsidy removal was fake – President Tinubu

    Good life Nigerians were living before subsidy removal was fake – President Tinubu

    President Bola Tinubu has said the good life Nigerians were living before the removal of fuel subsidy was a fake one and that it was capable of leading the country to a total collapse unless drastic efforts were urgently taken.

    TheNewsGuru.com (TNG) reports President Tinubu said this on Saturday during the 34th and 35th combined convocation of the Federal University of Technology, Akure (FUTA), Ondo State.

    Tinubu explained that the need to salvage the future, and bring the country back from the brink of collapse necessitated the strategic decisions to remove the fuel subsidy and also unify the exchange rates.

    He went further to say the twin policies of fuel subsidy removal and unification of Naira to Dollar exchange rate are already yielding positive outcomes.

    “As you are all aware, we took the baton of authority at a time when our economy was nose-diving as a result of heavy debts from fuel and Dollar subsidies. The subsidies were meant to support the poor and make life better for all Nigerians.

    “We are all aware of the fact that the poor and average Nigerians were the sufferers of what was supposed to give them succour and improved standard of living.

    “Unfortunately, the good life we thought we were living was a fake one that was capable of leading the country to a total collapse unless drastic efforts were urgently taken.

    “The need to salvage the future of our children, and bring the country back from the brink of collapse necessitated the strategic decisions to remove the fuel subsidy and also unify the exchange rates,” Tinubu said.

    Recall that on his inauguration on May 29, 2023, President Tinubu, who is also the Minister of Petroleum Resources, began his administration by announcing the removal of subsidy on Premium Motor Spirit (PMS), popularly known as petrol. He subsequently went on to unify the Naira to Dollar exchange rate.

    The expectation was that the fuel subsidy removal would free up financial resources for other sectors, incentivise domestic refineries for more petroleum products, and reduce dependency on imported fuel and channel funds for the development of critical projects.

    However, since assuming office, the prices of goods and services have skyrocketed, with food inflation reaching astronomical heights.

    The President, who was represented at the event, by Wahab Egbewole, the Vice-Chancellor of the University of Ilorin (UNILORIN), said: “I am not unaware of the consequences of the tough decisions on our people. I sincerely wish there could be softer options”.

    He noted that the country’s macro-economic indicators are improving daily, while the micro-economy, which directly affects citizens, is gradually taking shape.

    Tinubu added that Nigeria is transitioning from a consumption-driven economy to one focused on production across all aspects of human endeavours.

    “The present challenges call for a high degree of patriotism and I can assure all Nigerians that there is light at the end of the tunnel. After rain comes sunshine. The brighter days are almost here,” President Tinubu said.

  • Subsidy removal: TUC demands relief for workers

    Subsidy removal: TUC demands relief for workers

    The Trade Union Congress has asked the Federal Government to hurry its plan to provide palliatives for Federal Government workers following the removal of subsidy on Premium Motor Spirit.

    The TUC said workers were getting more impatient due to the hardship occasioned by the removal of subsidy.

    The TUC president, Comrade Festus Osifo, stated this during a meeting with the Minister of Labour and Employment, Simon Lalong on Tuesday, September 19, in Abuja.

    He also clarified what seemed to be a division between the NLC and the TUC, maintaining that there were no cracks in their ranks.

  • Fuel Subsidy Removal: FG’s palliative highly insulting to Nigerians – PRP legal adviser, Mahmoud Aliyu

    Fuel Subsidy Removal: FG’s palliative highly insulting to Nigerians – PRP legal adviser, Mahmoud Aliyu

    The National Legal Adviser of the Peoples Redemption Party, (PRP), Professor Mahmoud Aliyu, has noted that the palliative measures put in place by the federal government to cushion the effect of fuel subsidy removal is highly insulting to Nigerians.

    Aliyu made this comment at a media chat organized by the Correspondents Chapel of the Nigeria Union of Journalists, NUJ, Kwara State in Ilorin, on Friday.

    He said that FG should empower Nigerians to feed themselves rather than give palliatives to them which will only serve as a short-term solution.

    “The government needs to do the needful to allow them to have access to a good life, palliative is not the answer to our problems,” he declared.

    The PRP chieftain, who also spoke on the state of the nation also condemned the Economic Community of West African States, ECOWAS for attempting  to  use force to push out the Junta government in Niger.

    He charged President Bola Ahmed Tinubu to secure Nigeria first before attempting to secure Niger Republic.

    He said, “bandits invaded a village in Niger State days ago and killed at least four or five people while others were maltreated by the bandits and nothing has been done to secure the country.

    “It is morally, spiritually and politically wrong, the situation now in the country is pathetic and dangerous.

    He claimed the current ruling class has been recycling themselves since 1999 and have turned government into a barber’s chair, saying that money politics is now prevalent in Nigeria.

    “The Emilokan declaration at Abeokuta, in Ogun State, prior to the 2023 elections, marked the highest point of money politics in the country.

    The PRP legal adviser described the eight years of former President Muhammadu Buhari as a disaster in the country in the areas of insecurity, education, health and rule of law, amongst others.

    He described the PRP as the oldest political party existing currently in the country and the only party that could rescue the people out of the present socio-economic and political predicament with its socialist programmes.

  • Subsidy removal: Lagos LG reduces staff workdays to 3

    Subsidy removal: Lagos LG reduces staff workdays to 3

    Agege Local Government Area (LGA) of Lagos State on Tuesday,  announced a reduction of its working days to three,  to help ameliorate the economic hardship being faced by workers.

    The council also lowered levies paid by traders and residents of the area.

    The Council Chairman, Chief Ganiyu Egunjobi, made the declarations in a statement in Agege.

    “These reductions became imperative in view of the effect of subsidy withdrawal by the Federal Government on  residents of the area,”

    “Our staff are not spared of the prevailing economic hardship brought about by oil subsidy removal by the government.

    “While the subsidy regime removal is welcomed as it was only benefitting few elites and smugglers at the expense of the critical sectors of the economy and the common man.

    “The council leadership is not unmindful of the unintended consequences it foisted on our staff and residents.

    “At this trying time, the council on my watch is determined to give solace to members of staff, residents and business operators in some measure,” he said.

    Egunjobi added: “Various forms of levies paid to the council by residents and business operators are hereby lowered.”

    The council chairman, however, said that the number of working days assigned to workers had been reduced to three,  based on roster so as to reduce the amount of money spent on transportation daily.

    According to him, it is meant to reduce the sum of money staff spend on commuting from home to work and vice versa in the face of rising fares.

    He said that only the staff in departments of Health and Environment, who were expected to be in office on usual days were exempted from the new development.

    The council boss, however, ordered the four free school shuttle buses meant to convey the public school children to begin transporting the workers freely,  pending the resumption of students.

    “Since our students are on holiday, and their four buses are redundant, we are putting it in the service of our staff to complement their own staff bus in commuting them to work and homes,” Egunjobi said.

  • Subsidy removal: Ondo Govt. announces palliative measures for residents

    Subsidy removal: Ondo Govt. announces palliative measures for residents

    Ondo State Government on Thursday announced a comprehensive palliative package to alleviate the harsh effect of petrol subsidy removal.

    Mr Wale Akinterinwa, the Commissioner for finance and Chairman, Palliative Strategy and Implementation Committee, announced the measures at a news conference in Akure.

    Akinterinwa said that the State Government would restore free shuttle buses for students, starting from their resumption in September to December 31.

    “Thereafter, affordable rates would be charged from Jan. 2024.

    “In like manner, free shuttle boats, equipped with life jackets for students in riverine areas, would be provided, starting at resumption in September to December 31.

    “Thereafter, affordable rates would be charged from January 2024.

    “We will immediately deploy all the existing buses in all the MDAs to serve as free shuttle buses to public servants until December 31.

    “Additional Compressed Natural Gas would be purchased to convey public servants to and from work at no cost to them, untill December 31,” he said.

    He also announced that unconditional cash transfer of N10,000 would be made to 1,000 vulnerable persons per local government in the 18 Local Government Areas, totalling 18,000 people.

    Akinterinwa further announced that all the state and local government pensioners would also receive N10,000 each from August to December.

    He said that one million households would be fed across the entire local government areas of the state.

    “Farm inputs at subsidised rates will be made available to farmers.

    “Our poultry and fish farmers will be given free drugs, maize and feeds.

    “In addition, training on local feed formulation and production will be given to interested poultry and fish farmers to help them look inwards.

    The commissioner said that the palliatives also included agrochemicals, seeds, drip lines, farm tools and power tillers.

    He said: “In riverine areas, fishing nets and kilns will be on offer.

    “To ease the movement of farm produce, tricycles will be given free to communities.

    “This will be supervised by officially recognised, community-based stakeholder groups.

    The State Government also announced the immediate suspension of hospital registration and consultation fees.

    “Government will reimburse the hospitals directly based on existing data,” the commissioner said.

    According to him, all the provisions are to complement Federal Government’s planned palliatives.

    He said that government also approved the immediate payment of 2020 leave bonus to public servants.

    “Also, various categories of small and medium enterprises in the state will benefit from the palliatives.

    “Students who are engaged in nano businesses on campus are not excluded.

    “They will also get financial support.

    “The money to nano, small, medium enterprises will be disbursed through existing government channels,” Akinterinwa said.

  • Subsidy removal: NLC expresses worry over wage award to workers

    Subsidy removal: NLC expresses worry over wage award to workers

    The Nigeria Labour Congress (NLC), has expressed worry over Federal Government’s promises to dispense wage award to workers since the removal of petrol subsidy in the country.

    Mr Joe Ajaero, the NLC President said this in a statement while reacting to President Bola Tinubu’s speech on Tuesday in Abuja.

    The statement was titled, “President Bola Ahmed Tinubu Speech not the Silver Bullet that Nigerians expected”.

    Ajaero said that the president’s statement on working with Organised Labour to review the national minimum wage was out of sync with what had played out since the removal of petrol subsidy.

    “In all the meetings scheduled by the government, Organised Labour has been forced to negotiate with empty chairs on the Federal Government’s side.

    ” As Federal Government has not matched its public promises with firm commitment to negotiate in good faith with labour.

    “As a matter of fact, the sub-committee on wage award has not been inaugurated and has not met.

    “Furthermore, organised labour is disturbed that while President Tinubu in his speech lavishly praised the Private Sector for quickly dispensing wage award to their employees, the Federal Government has failed to do the same for public workers in its employment.

    “This is a clear case of failing woefully to live up to the standards it has set for others to meet,” he said.

    He said that it was an open knowledge that the review of the national minimum wage was a matter of the law that was expected to happen in 2024.

    “How would Nigerian workers cope with the current reality of hyper inflation and suffering unleashed by the hasty removal of the so-called petrol subsidy till 2024 when the national minimum wage would be reviewed? This is incredible.”

    According to Ajaero,  the claims of interventions by the Federal Government through palliatives, loans and conditional grants to poor Nigerians, big manufacturing concems and small businesses and provision of CNG buses remain what they are – promises!

    According to the NLC president, Nigerians are used to such promises which have never produced any verifiable and meaningful changes in the lives of citizens.

    He also noted that the entire speech by Mr President was completely silent on the issue of the repair of the national refineries.

    He called on the Federal Government to unmask those behind the looting of Nigeria’s commonwealth under the guise of petrol subsidy.

    “What Nigerians expected from Mr President is a firm commitment to bring these economic saboteurs to justice and recover what they have stolen,” he said.

    He, therefore, assured Nigerians that NLC remained committed to matching discussions with government with the current realities of sufferings that Nigerians were going through.

    “We remain committed to continue with our struggle,” he said.

  • Subsidy removal: Borno, Adamawa, Yobe, subsidise transportation for workers, students

    Subsidy removal: Borno, Adamawa, Yobe, subsidise transportation for workers, students

    The governments of Borno, Adamawa, and Yobe have started taking steps to contain the hike in transportation caused by removal of fuel subsidy by the Federal Government.

    The state governments, which operate own transport companies, have continued to ensure that their fares remain lower than what obtains in motor parks.

    In Borno, Gov. Babagana Zulum had approved the release of 50 buses to address the situation.

    According to Mallam Isa Gusau, the Special Adviser to the Governor on Media and Strategy, the buses will be added to the fleet of the state owned transport outfit, Borno Express Corporation.

    Gusau said that 30 vans were also provided to provide farmers, particularly those residing inside Maiduguri, free ride to outskirts of the state capital where their farmlands are located.

    A University of Maiduguri student, Mustapha Abdullahi, and a government worker, Ali Modu who patronised government buses picking passengers at N50 per drop, lauded government for the intervention.

    “I patronise Borno Express buses everyday, paying N50 from Post Office to University of Maiduguri as against N150 being collected by taxis and tricyclists,”  Abdullahi said.

    In Adamawa, the state government had constituted a special committee on mitigating the effects of subsidy removal with Dr Amos Edgar, the Chief of Staff to Gov. Ahmadu Fintiri as Chairman of the committee.

    Edgar revealed plan by Adamawa Government to purchase shuttle buses for workers and inter-local government transportation at subsidised rate.

    He said that other measures taken by government was the approval of N10,000 monthly subsidy for all workers and pensioners.

    Mr. Labaran Salisu, the Director, Transport, Adamawa Ministry of Transport, said that some of the 250 partially leased vehicles in the ministry’s custody for inter-state services, would be deployed for town service at subsidised rate.

    In Yobe, the Executive Secretary of the State Emergency Management Agency, Dr Mohammed Goje, said that plans were underway to provide free transport to students and civil servants.

    “Very soon the state government will provide buses for free transportation for civil servants and students,” Goje said.

  • NLC explains why minimum wage increase not the focus amidst subsidy removal

    NLC explains why minimum wage increase not the focus amidst subsidy removal

    The President of the Nigeria Labour Congress (NLC) Joe Ajaero, has shed light on why the union is not currently seeking an increase in the minimum wage, calling for alternative solutions.

    In a recent chat with journalists on the sidelines of the ongoing 111th Session of the International Labour Conference, ILC, in Geneva, Switzerland, Ajaero emphasized that the NLC’s agreement with the governors pertains to wage awards, not minimum wage.

    He also criticized state governors for implementing ad hoc measures such as reducing working days, warning that these actions would exacerbate the country’s socio-economic situation.

    It would be recalled that following a series of meetings between the former Minister of Labour and Employment, Chris Ngige, and the leadership of organised labour, the Federal Government on 23rd October 2019, announced its decision to upgrade the national minimum wage from N18,000 to N30,000 effective from 18th April of the same year.

    The National Minimum Wage Act sets a timeframe for the expiration and subsequent review of the minimum wage to ensure that it remains relevant and reflective of the economic conditions of the country.

    Section 3 (3) of the National Minimum Wage Act states that “the National Minimum Wage expires after five years, and it shall be reviewed in line with the provisions of this Act.”

    Consequently, Ajaero stated that the minimum wage review will proceed as scheduled by early next year, fulfilling the statutory requirement outlined in the National Minimum Wage Act 2019.

    The NLC President stated, “The agreement we had with them is not on minimum wage. The agreement we had with them is on wage award and it must be understood clearly.”

    He further explained that the removal of fuel subsidies without any corresponding provisions had prompted discussions on minimum wage, but pointed out the failure of state governors to comply with the minimum wage law.

    While the Trade Union Congress has asked the Federal Government to increase the national minimum wage from N30,000 to N200,000, the NLC proposes an alternative solution in the form of wage awards to alleviate the impact of subsidy removal.

    Ajaero also highlighted the potential of Compressed Natural Gas (CNG) as a cost-effective fuel option, citing a pilot study conducted in the Edo area, where 10,000 vehicles were converted to CNG which would cost approximately N90 per litre.

    Acknowledging the resistance the NLC might face in implementing these alternatives, he stated: “We are not deceived because there is going to be a fight. The powerful force behind PMS subsidy that had fought us all these years would make sure CNG does not see the light of the day.”

    Ajaero called for an investigation into the subsidy regime to ensure transparency and urged the completion of modular refineries to lower fuel costs.

    The NLC condemned the reduction of working days as a temporary solution, arguing that it decreases productivity and poses significant challenges in crucial sectors like healthcare and education.

    He stated, “You are telling a doctor to come to work for three days, you are telling a nurse to work for three days. And you are telling a teacher with the challenges we are having in schools to come for three days. All these are ad hoc measures that cannot provide any solution.”

    As the NLC prepares to meet with the Federal Government on Monday 19th June for a continuation of discussions, its focus remains on wage awards and alternative solutions to mitigate the effects of subsidy removal, urging stakeholders to consider the long-term socio-economic impact and work towards sustainable solutions.

  • Subsidy Removal will dent Tinubu’s administration – Primate Ayodele

    Subsidy Removal will dent Tinubu’s administration – Primate Ayodele

    Primate Ayodele, the leader of INRI Evangelical Spiritual Church, has said that subsidy removal would damage President Bola Tinubu’s government.

    According to the prophet, Tinubu’s administration will only come good in 2026 if God decides to show him mercy.

    The Cleric  said it’s not yet time for Tinubu to remove the fuel subsidy because it will affect his government.

    In a statement signed by his media aide, Osho Oluwatosin, the clergyman said there will be serious economic hardship and things will only get better through God’s mercy.

    Primate Ayodele explained that the President didn’t address the issue of subsidy well.

    He said: ‘’No matter how you want to put it, It is not yet time to remove the fuel subsidy, it will damage the present government. They should work on the subsidy technically.

    “There is no way things won’t be hard, there is no way we won’t face economic hardship.

    “Tinubu will not get this government better until 2026 if God decides to show mercy.

    “There’s nothing bad in removing subsidy but the method of removing it is what is causing issues now.

    “Sincerely, Tinubu didn’t address the issue well. Nigerians should not expect so much from Tinubu within his first four years in office.’’

  • NEC to consult governors before subsidy removal

    NEC to consult governors before subsidy removal

    The National Economic Council (NEC) has agreed that the timing for the removal of oil subsidy should not be now but preparation work has to be done in consultation with the State Governments and other key stakeholders.

    Minister of Finance, Budget, and National Planning, Dr Zainab Ahmed, stated this when she addressed State House correspondents on the outcome of the valedictory session of NEC.

    The meeting was presided over by Vice President Yemi Osinbajo at the Council Chamber of the Presidential Villa, Abuja, on Thursday.

    She said the council also agreed to form an expanded committee to look at the process for the removal of the fuel subsidy.

    According to the minister, this include determining the exact time and the measures that need to be taken to provide support to the poor and the vulnerable as well as ensure the availability of petroleum products across the country.

    ”Yes, What I said is that it is not going to be removed now – which means it will not be removed before the transition is completed.

    ”But then we’ve two laws that have inadvertently made the provision that we should exit by June.

    ”So if the committee’s work, which will include the representatives of the incoming administration, determined that the removal can be done by June than the work plan will be designed to exit as at June.

    ”But if the determination is that the period is extended it will mean that as a country, we will have to revisit the Appropriation Act for example, because the 2023 budget only made provision upto June.

    ”So if we’re extending beyond June it means we have to revisit the appropriation Act or amend the PIA.

    ”So these are the reasons why we had to do this consultation, we would like to get inputs from the governors, they’re going to provide us their representatives to work together with us to have a defined process that will take us towards the removal.

    ”But one thing that is clear is everybody agrees that the subsidy should be removed very quickly because the cost is only not inefficient but is also not sustainable, and that when the time comes for removal, the removal will be done once and for all.”

    Also speaking on the outcome of the meeting, Gov. Abubakar Badaru of Jigawa disclosed that the council took reports of the presidential committee on flooding.

    He said the committee was saddled with the responsibility of aggregating the causes of flooding, the losses incurred in the recent time and possible palliatives for victims.

    He disclosed that 16 states had so far submitted their reports on flooding while the remaining 20 were expected to do same before the overall reports of the presidential committee would be presented to the National Executive Council.