ABUJA, Nigeria — The Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, have criticised the Federal Government’s decision to release a N180 billion palliative package to states, aiming to mitigate the repercussions of fuel subsidy removal.
They contend that the funds, distributed as N5 billion per state, will more likely benefit politicians rather than the intended recipients, the impoverished citizens.
The subsidy withdrawal, which has triggered surges in fuel pump prices, has had a domino effect on the costs of goods and services, aggravating economic hardship and plunging many Nigerians deeper into poverty.
These economic strains incited widespread protests led by organised labour, demanding the repair of refineries as a condition for accepting subsidy removal.
Announcing the palliative on Thursday, August 17, 2023, at the 135th National Economic Council meeting in Abuja, Borno State Governor, Babagana Zulum, conveyed that the N5 billion allocation for each state was intended to address escalating food prices by enabling the procurement of essential food supplies, including rice and maize.
Shettima detailed how the palliative fund would be allocated and repaid, emphasizing that the Council lauds the Federal Government’s and Central Bank of Nigeria’s measures to alleviate the economic hardships from the subsidy removal.
To further address the issues surrounding the petrol subsidy removal, the National Economic Council has constituted an ad hoc committee, encompassing governors from various states and political backgrounds, tasked with negotiating with labour union leadership.
However, the NLC’s Assistant National Secretary-General, Mr. Chris Onyeka, expressed skepticism regarding the Federal Government’s strategy.
He questioned the rationale of disbursing funds to governors, many of whom have reportedly failed to implement the minimum wage.
The NEC’s interventions and the subsequent reactions underscore the complex challenges Nigeria faces, as government attempts to navigate economic reforms, while labour unions and other stakeholders demand more inclusive and transparent policies.
