April 23, 2024 3:31 pm
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Ogun Governor Steps Up: Offers N10,000 to Workers, Encourages Private Sector to Do the Same

With the removal of fuel subsidy, Governor Dapo Abiodun of Ogun State believes his government’s payment of N10,000 cash payments to workers and pensioners in the civil service will alleviate the hardships and serve as a model for similar interventions in the private sector.

The payment is one of the palliatives recently introduced by his administration, almost two months after President Bola Tinubu, in his May 29 inaugural address, declared that “fuel subsidy is gone”.

Under the new policy, fuel prices have soared from N185 to N500, and even up to N617 last week. The increase has caused transportation costs and food prices to skyrocket, forcing many people to walk long distances.

“We cannot intervene by this means to the private sector because they don’t work for us,” Abiodun said during a live appearance Tuesday on Channels Television’s Politics Today.

However, the Governor believes that his government’s monetary intervention will motivate the private sector to augment the take-home pay of its workers affected by the removal of fuel subsidy.

  1. The governor shared that his administration has introduced other provisions to alleviate the burden on the non-public service sector. These provisions include converting commercial vehicles’ engines from Premium Motor Spirit (petrol) to Compressed Natural Gas (CNG), which is more economical.

Abiodun explained that the payment of N10,000 was the result of lengthy discussions with the state chapters of the Trade Union Congress of Nigeria (TUC), the Nigeria Labour Congress (NUC), and the Joint Negotiating Council (JNC).

“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,” he said.

“And at the end of those several meetings, we all agreed that a payment of N10,000 across the board from level one to level 17 would create that immediate impact and bring relief to civil servants and of course pensioners that have to move from home to work every day.”

The payment will be made over the next three months, and it is estimated that approximately 74,000 persons in the civil service and pensioners in Ogun State will benefit. Taking into account dependents, this monetary intervention will directly and indirectly impact around 280,000 people.

“Yes, they probably represent less than 10 percent of the population of Ogun State, but what we aimed to do was to immediately begin this intervention believing that the private sector will also begin to follow suit,” he said.

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