One of the first major decisions taken by President Bola Ahmed Tinubu when he came to power was the removal of the long-standing fuel subsidy. In his inaugural speech on May 29, he declared the removal of the subsidy saying it was ‘’gone.”
However, the decision has caused the prices of petrol and other basic commodities in the country to skyrocket.
Many experts had predicted the short-term negative implications of the fuel subsidy removal, including pushing up petrol prices, a decrease in economic growth, worsening inflation and poverty rates, and the loss of jobs in the informal sector.
Being one of the most impactful dividends of democracy to the citizens of Nigeria, fuel subsidy has in many ways touched the lives of the citizens.
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That is why the organised labour in the country is unhappy with the government’s decision. The labour unions recommended measures to alleviate the suffering of the masses as a result of the subsidy removal.
After a series of negotiations, the federal government came up with palliative measures in collaboration with state governments.
The government has promised cash support for the poor and providing a subsidised public transport system with state-run buses in major cities.
The economic programmes are meant to cushion the adverse effects on individuals and businesses.
But there are concerns that the palliative packages might not reach the targeted beneficiaries due to corruption.
There is also the problem of inadequate data on the actual number of the needy in Nigeria, coupled with the high number of the less privileged in the country, which means the budgeted funds may be insufficient to cover the country.
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) are also not convinced by these measures by the government. That is why they threatened an indefinite strike action to force the government to do more and better.
Thus, after a series of meetings and discussions between organised labour and the federal government, agreements were reached to increase the salaries of workers, which resulted in the suspension of the strike earlier scheduled to start on October 3, 2023.
The federal government announced an increase in the salaries of all categories of workers. This is also seen as problematic because salary increases always come with commodity price increases. Some also say government workers represent only a small percentage of the Nigerian population, which means the vast majority of Nigerians might not benefit.
Many are wondering how the citizens who are not workers are going to survive the hardship.
The NLC and the government should review the decision in order to avert adding salt to the wounds of ordinary citizens.
The government must come up with long-term economic measures to provide job opportunities for the country’s teeming youth and tackle poverty. It must also judiciously invest the trillions of naira being saved from fuel subsidy removal. This will ensure the long-term anticipated benefits of the subsidy removal are enjoyed by a wide spectrum of Nigerian society.
Bashir Khalid Furyam, a journalist, resides in Bauchi
