Tinubu’s Ingenuity Over LG Autonomy, Minimum Wage

Tinubu’s Ingenuity Over LG Autonomy, Minimum Wage

He must have goofed for announcing the abrogation of fuel subsidy on his first day in office just after he was sworn-in, President Bola Tinubu may go down in history as a great problem solver.

Of course this is one of the worst period for Nigerians when the rate of inflation is hitting up to 39.19 per cent and the prices of foods have gone up by about 1000 per cent, with forex exchange rising above N1500 to a dollar, there is a ray of hope in this dark hours.

Currently, the Nigeria’s foreign reserve has crossed $35.01bn despite the prediction by Macroexonomic Outlook that it would drop from its $34bn in 2023 but rather it has increased to over $35bn according to the Central Bank Governor, Oluyemi Cardoso.

The implications of this is that Nigeria as a country can do business favourably with other countries and further increase its GDP.

According to IMF statistics, Nigeria’s GDP has increased from N202 trillion in 2022 to N234 trillion in 2024, showing that the economy is looking up despite various food and security challenges.

No doubt, an average Nigerian wants food on his table and won’t want to bother his head with IMF or world Bank statistics, the Bola Ahmed Tinubu’s administration believes in using two edged sword to deal with both macro and micro economics within the limited space.

The president is optimistic that his formula though tough will take the country out of the present economic doldrums and to ensure that the methods will work, he is steadily rearranging the politics of the country with the supreme court verdict of granting financial autonomy to 774 local governments in the country.

To him, local governments getting their statutory allocations directly from the federation account will make the council leadership more responsible and spread development to the grassroots.

At one of his meetings with the northern elders, Tinubu urged them to prevail on their governors to allow local government to work by releasing their monies to them.

Of course the president toed the judicial way to interpret the constitution and did not hesitate to commend the court verdict, which is now a law to the local government chairmen to work autonomously as the third tier of government.

While the country is waiting for the Port Harcourt oil refinery to begin production of premium motor spirit and other petroleum products to ease the incessant increase in the pump price of gasoline, the government is set to roll out CNG vehicles to solve the cost of transportation across the country.

Though, this may not be the last solution, it is a step in the right direction to ameliorate the suffering of the masses who now spend much of their hard earned money on transportation and foods.

As at today, the president has also directed that all salary arrears of the members of Academic Staff Union of Universities, Senior Staff Union of Universities and Non-Academic Staff Union of Universities to be paid urgently.

This, he mentioned during his campaign that never again will the universities be shut down over non-payment of workers salaries or any other legitimate demand by the academics.

A few days ago the president formalised the takeoff of the student loans for universities, polytechnics and colleges of education and according to the Managing Director of the Nigerian Education Loan Fund, Dr. Akintunde Sawyerr, about N35 billion is in the coffers for students to access.

These are little little steps that Tinubu is taking to restructure the economy, coupling with the steady removal and replacement of corrupt civil servants across ministries, agencies and parastatals.

He has been showing leadership despite the censure of his administration. This was revealed in his intervention on the issue of minimum wage in which he took his time to study the demands of the organised labour and consequently resolved it a few days ago.

Twice in less than three weeks, Tinubu sorted out two keys issues of local government autonomy and minimum wage that would have clogged the wheels of his government.

He met with the organised labour thrice in which the NLC and Trade Union Congress had asked for N250,000 as minimum wage.

At their second meeting, the president agreed to pay but with a clause that the labour leaders would also allow him to Jack up the price of petrol so that he could get money to fix the infrastructure.

It was a hard decision for the labour to take, having read all the datas tabled before them by Mr. President.

Being able to make the labour agree with him, shows that Tinubu did his proper homework and it reflects in his delivery that he understands fiscal economy, which of course made the labour leaders to go back home for the third and the last meeting that eventually closed the wage at N70,000.

As the president of NLC, Joe Ajaero put it, put it, “We declined President Bola Tinubu’s proposition to implement a ₦250,000 minimum wage and raise petrol prices. Accepting ₦70,000 was the best way to save Nigerians from further hardship,”

“At last week’s meeting, the President brought a proposal that ‘I will give you guys ₦250,000’ if you allow me to equally increase the pump price of petroleum products’ and we said, ‘No, we need to go and consult’.

“Today, we went there to tell him, ‘No’. The labour movement can make sacrifices without allowing Nigerians to suffer further on the increase in the pump price of petroleum products.”