How FG Plans To Cushion Impact Of Fuel Subsidy Removal On Nigerians

President Tinubu triggered a hike in the pump price for fuel after declaring “subsidy is gone.”
The declaration made filling stations start selling petrol at an average price of N500 per litre.
The situation has forced a threat of a strike action from the leading labour group in the country.

Eko Hot Blog reports that Adams Oshiomhole, the senator representing Edo North in the National Assembly, has said that the Federal Government has plans to cushion the effects of the fuel subsidy removal on struggling Nigerians.

On Sunday, a Federal Government delegation which included Oshiomhole held a meeting with representatives of the Trade Union Congress (TUC) at the presidential villa in Abuja.

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Dele Alake, who briefed reporters after the meeting, said the demands of the union to cushion the effect of subsidy removal, include an increase in the minimum wage and tax holidays for certain categories of people.

The Nigerian government increased the minimum wage to N30,000 in 2019 but there has been no raise since that time despite persistent inflation.

Oshiomole, who spoke in an interview after the FG-TUC meeting, said the government recognises that there must be an immediate solution to Nigerians’ struggles as a result of the hike in fuel price.

He disclosed that the government’s plans include leveraging “some revenue” and improving wages.

“This president recognises that the effect of the withdrawal is already here, people are already going through some level of discomfort and therefore there has to be an immediate solution to it,” the former Edo State governor said.

“Now that immediate solution is what we discussed and the fact that we are meeting on Tuesday again shows that clearly, we realise that this is not one of those things you want to buy time because it has a real negative impact, on particularly, the most vulnerable group.

“But we have a solution to it because you are going to make savings, so take from that savings or even if it is borrowing. So, whatever it is, you can leverage some revenue and improve wages to cushion the cost of living. I think it is legitimate, I think it is doable, it is not something that you want to spend two to three months negotiating.

“Because those savings will go into the federation account which will be distributed among the three tiers of government and so every tier of government will have more money and should be able to meet the consequential wage increase.”