NEWS
Subsidy Removal: Ogun State Govt Introduces Cash Payment For Workers
Following the removal of fuel subsidy and the hardship on the poor masses, Ogun State government has introduced a cash payment of N10,000 to workers and pensioners in the civil service.
The payment is part of the palliatives recently introduced by his administration, nearly two months after President Bola Tinubu declared the removal of fuel subsidy in his May 29 inaugural address.
However, this policy resulted in an immediate increase in fuel prices from around N185 to N500, and even up to N617 last week.
As a consequence of rising transportation costs and food prices, many individuals have been forced to trek long distances due to financial constraints.
The governor believes that this cash payment will provide some relief to those affected by the removal of the subsidy and also serve as a potential model for similar interventions in the private sector.
However, he clarified during a live appearance on Channels Television’s Politics Today that the government cannot extend this intervention to the private sector as they do not work for the state.
He said “We cannot intervene by this means to the private sector because they don’t work for us.”
In addition, Governor Dapo Abiodun revealed that on Monday, his government rolled out other provisions aiming to support as many individuals outside the public service as possible.
One significant measure involves the conversion of commercial vehicles’ engines from petrol (Premium Motor Spirit – PMS) to the more cost-effective Compressed Natural Gas (CNG).
Governor Abiodun believes that by implementing these initiatives and providing monetary support, the private sector will be encouraged to follow suit and enhance the take-home pay of its employees who have been impacted by the removal of fuel subsidy.
Governor Abiodun further clarified that the decision to make the N10,000 payment to civil service workers and pensioners was the outcome of extensive discussions with the state chapters of the Trade Union Congress of Nigeria (TUC), the Nigeria Labour Congress (NUC), and the Joint Negotiating Council (JNC).
He stated “We sat down with the TUC, JNC and NLC weeks ago. As soon as the subsidy was removed, we began to have these conversations and the idea was to reach a compromise as to what would be acceptable to all,”
NEWS
Adeleke Approves Adeyemi’s Appointment As Chairman, Governing Council, Osun State College of Education
Osun State Governor, Senator Ademola Adeleke has approved the appointment of Akinyele Sarafa Adeyemi, as the new Chairman of the Governing Council of the Osun State College of Education, Ila Orangun.
This was detailed in a statement in Osogbo on Friday by Spokesperson to Governor Adeleke, Olawale Rasheed.
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According to Rasheed, Adeyemi replaces Dr Peter Babalola who resigned his appointment after a controversial tenure at the College of Education.
He stated that “Adeyemi who holds a first and Masters degrees in Education from the University of Ibadan is a retired principal of the Federal Girls College, Ipetumodu.”
It was gathered that the swearing in ceremony for the new Council Chairman holds by 10am on Monday at the EXCO lounge.
The Committee on Consequential Adjustments in Salaries for Civil Servants has confirmed that the newly approved minimum wage will be implemented starting July 29, 2024.
This was disclosed in a Memorandum of Understanding (MoU) issued at the conclusion of the committee’s meeting in Abuja on Friday.
Read Also: NLC Accuses Tinubu Of Sabotaging Minimum Wage With Fuel Hike
The MoU reads, “The National Salaries, Incomes, and Wages Commission (NSIWC) will prepare and release the necessary salary templates for other consolidated salary structures. The implementation date for the new wage will take effect from July 29, 2024.”
The committee, comprising 16 members, was set up to oversee the execution of the National Minimum Wage Act of 2024. This legislation raised the country’s minimum wage from ₦30,000 to ₦70,000.
Among its key responsibilities, the committee is tasked with negotiating salary adjustments across various sectors and developing a template for implementing the newly approved wage structure.
With the pump price of Premium Motor Spirit (PMS) popular in the streets as petrol, hovering around approximately N1000-N1300 per litre, concerns are mounting about the viability of fuel subsidies in Nigeria.
Energy policy analyst, Adeyemi Adeoye, has underscored the critical role of the Nigerian National Petroleum Company Limited (NNPC Ltd) in this issue, shedding light on who bears the subsidy costs.
He shared his views on TVC News on Friday.
Biztellers reports that the pump price of petrol has risen from below N200/litre at at May 29, 2023 to around N1300/litre as at September 20, 2024, with little variations depending the part of Nigeria, consumers are buying from.
Read More: Fuel Pricing Should Serve Public Interest, Not Profit — Yemi Adeoye
He stated, “Only the NNPC can engage in negotiations of this nature. Their partnership with the Dangote Refinery gives them leverage to negotiate from a position of strength.”
Adeoye highlighted that while the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers lack significant influence over prices, the Dangote Refinery prioritizes profitability.
According to him, this makes the NNPC’s negotiations vital, as they are legally required by the Petroleum Industry Act to ensure fuel availability across the country and prevent long queues at gas stations.
Adeoye said, “It is only NNPC that could have gone into that type of negotiation because NNPC is coming to the table from a position of strength because they have a partnership with the Dangote Refinery, and they have other businesses they are supplying crude to, so they can come and say, ‘Look, this has to be this way.’
“The IPMAN and the other marketers cannot do that because Dangote is a profit-making organization; it is not a charity organization. So, the only thing that is important to the Dangote Refinery is to make a profit, which is the same thing that is important to any business.
“So, the NNPC went into these negotiations because it also understands that it is the last resort. In terms of fuel distribution in the country, NNPC is mandated by the Petroleum Industry Act to make sure that there are no queues in the country. So, even if they don’t want to do it, the law mandates NNPC as the supplier, the last resort, to make sure that there is petroleum product across Nigeria.
“That negotiation is such that NNPC took all the calculations in and said, ‘This is a fair pricing that we know we can withstand.’
“Because what NNPC was paying out, which you might call a subsidy or under-recovery, NNPC was paying the difference on behalf of the government, which is under the directive of the president, who has also said he wants to see this situation totally resolved.
“That was why he directed the NNPC to make sure that crude oil to the Dangote Refinery is sold in Naira, because NNPC produces the crude in dollars, and it has to be sold to the Dangote Refinery in Naira, which is good faith.” he added
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