Edo State Governor, Mr. Godwin Obaseki, has announced a measure to alleviate the hardships faced by the people due to the removal of fuel subsidy. In a statement he personally issued, Obaseki expressed empathy with the citizens and assured them of the government’s support during these challenging times.
The governor acknowledged the significant increase in fuel prices, which has resulted in a rise in the cost of goods and services, as well as the overall cost of living. In response to these circumstances, the Edo State Government is taking steps to reduce the burdens and mitigate the sufferings of the people.
Obaseki highlighted that his administration had already increased the minimum wage for workers in Edo State to N40,000, the highest in the country. He affirmed the government’s commitment to maintaining this wage and expressed hope for further increments if the state receives an additional allocation from the Federal Government due to the anticipated savings from the fuel subsidy removal.
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Recognizing the hardships caused by the policy, particularly the increased transportation costs affecting workers’ wages, the Edo State Government has decided to reduce the number of workdays for civil and public servants. Instead of the usual five days a week, employees will now only need to commute to their workplaces three days a week. The remaining two days will be designated as work-from-home days.
Furthermore, the government plans to expand the EdoBEST@Home initiative, which aims to create more virtual classrooms. This expansion will lessen the commuting expenses for teachers, parents, and students. The Edo State Universal Basic Education Board (SUBEB) will provide more details on this initiative in the coming days.
Another governor towing the same path is Sheyi Makinde of Oyo State. On Monday, the governor constituted a committee to review the state’s workers’ salaries as part of efforts to mitigate the impact of the subsidy removal.
“Yes, the fuel subsidy removal is going to affect all of us but we do have control over certain things in this state, and one of these is to be proactive and engage ourselves. They may call for strike or certain actions at the Federal level but the labour leaders in the state must be aware of our own situation. So, we must appreciate the fact that our economy is fragile. We must be proactive and set the tone without prejudice to whatever negotiation is happening at the Federal level,” the governor said.
The Trade Union Congress (TUC), in a statement signed by its president, Festus Osifo, and Secretary General, Nuhu Toro, on Monday, demanded an immediate increase and implementation of N200,000 per month minimum wage, from the current N30,000. The union also demanded adjustment on Cost of Living Allowance (COLA), like feeding, transport, housing, etc. before the end of June.
Calls for a minimum wage increase have risen in the wake of the removal of fuel subsidy late last month, especially following economic reports that the federal government’s decision will have a severe economic impact on the Nigerian people if palliatives are not provided.
KPMG, a multinational audit, tax, and advisory services firm, on Tuesday, predicted that the subsidy withdrawal could see the inflation rate climb to 30 percent from June.
“Our internal macro model also supports the World Bank’s findings with a forecast of an increase of about six percent over the June 2023 inflation rate to bring it to about 30 percent,” the firm stated.