Nigerians Wait For Palliatives

By Debo Oyelowo

The angry mood of Nigerians was tickled last week, when news came that the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has proposed an increase in public officers salaries such as President Tinubu by 114%. The news made the headlines and grated ordinary Nigerians to no end, especially for a government that had heralded massive inflation with the fuel subsidy removal. Presidential adviser on communication Dele Alake had to issue a statement that the president had not approved such a measure. But Nigerians saw the announcement, which was made by a RMAFC commissioner, as insensitive when people are living in difficulty and those on the fringe have fallen off the cliff following price increases in the last month.

Following the removal of fuel subsidy, the federal government had said that it will introduce measures to cushion the impact. In the last month, the measures have come in talk, and more talk. A committee set up by the National Economic Council will submit its report this week on what palliatives and the modalities for organising and distributing them.

At the meeting he held with the National Economic Council, which is headed by the Vice President, Kashim Shettima, President Tinubu has asked the Council to come up with palliative measures for the most vulnerable. The president, who inaugurated the NEC, a constitutional body comprising the state governors with the VP as Chairman, asked them to set politics aside and work collaboratively for the citizens. He reiterated his administration’s focus on security, economy, jobs, agriculture, infrastructure, monetary policy, and removal of fuel subsidies.

President Tinubu said: “It is evident that the task of growing our economy is enormous, but you and I asked for it. We campaigned for it, we even danced for it, we begged for it, so we have no reason to complain. We must harness the growth potential of Nigeria and bring about serious development that will take us from ‘a potential nation’ to a pragmatic economic development in a rapid manner. Members of this country are behind us, they want reform and they want it quick to impact their lives. Collaboration is not a crime, please, let’s do it.”

The NEC is proposing to apply recommendations from the National Salaries, Incomes and Wages Commission to pay N702 billion as cost of living allowance to civil servants as part of the intervention plans. The Bauchi State governor Bala Mohammed who briefed journalists said the money will be applied as a Cost of Living Allowance. The NEC also looked at special petroleum allowance for civil servants.

While the governors have focused on the civil service, the impact is much wider and quite devastating on small and informal businesses, many of which are at a loss how to handle the situation. Some have taken to reduced work hours, a measure a few states have also announced. However, for a country that desires to grow, reducing work hours will contract the economy, rather than expand it. Experts believe that the government will need to encourage businesses and Nigerians to produce more and spend, not reduce, so as to spur Economic activity.

Sani Madaki, a member of the House of Representatives, made the point of the impact succinctly when he said while moving a motion for immediate succour for Nigerians, that “The implication of over 200 per cent price adjustment in fuel prices is that nearly all prices of goods and services have drastically increased.

“The sudden fuel subsidy removal has left millions of Nigerians terrified, thus causing untold hardship as they grapple with the challenges of meeting up with, not only the high cost of petrol but also the consequent increase in the prices of goods and services.

“The Federal Government is yet to provide palliative measures to mitigate the impact of the subsidy removal on Federal Government workers.

“Since the removal of the subsidy, several protests have been recorded as citizens accuse the government of being insensitive to their needs.

“The need to put in place measures to protect the rights of citizens and prioritize the provision of palliatives to mitigate the challenges that have arisen from the fuel subsidy removal and ensure a more sustainable and inclusive economic framework for the benefit of Nigerians is very crucial.”

The Labour unions are still meeting with the Federal Government team on wage review and measures to cushion the impact but say they have not taken the strike option off the table. Analysts fear that a strike can be devastating indeed, especially with the silence of the graveyard among very poor Nigerians.

The President’s Chief of Staff, Femi Gbajabiamila, said the government is keen on its promise to cushion the impact of its reforms, adding that: “The Federal Government, the TUC, and the NLC (agreed ) to establish a joint committee” to review the proposal for any wage increase or award and establish a framework and timeline for implementation,  review the World Bank Financed Cash transfer scheme and propose the inclusion of low-income earners in the programme, and revive the CNG conversion programme earlier agreed with Labour centres in 2021 and work out detailed implementation and timing.

But, having had its way one month after the subsidy removal, Nigerians fear that the federal government has turned its back on them. Aside from the fact that the policy came at a time when the economy was in difficulty, many argue that removing the subsidy was like putting the cart before the horse when the local refineries have not been revived. NLC Vice President, Adewale Adeyanju, said “The refineries need to be revamped. We cannot continue to import refined petroleum products and be spending on subsidies all the time. Labour has its set of demands. So the government should know that things are becoming difficult and they (the government) should not decide to do anything funny. The strike was only suspended. It was an ultimatum that was given out and it (strike) was suspended. We hope that the meeting is going to be fruitful. The expectations are very high. The nation is watching and people are looking at how the Nigeria Labour Congress is going to handle the situation.”

For the National Deputy President of the Trade Union Congress, Tommy Etim, “It is expected that the government will look into our positions. Since the removal of subsidies, workers have not been finding it funny, especially on the home front. Government must be fast in its actions.”

It is expected that President Tinubu will tackle these issues head on when he returns from his trip to France where he had gone for an investment summit. He needs to, else his vision to grow the economy by at least 6% per annum will be a mirage in a situation where small businesses and workers are in difficulty.