Subsidy removal

Escalating drug prices in Nigeria: Post-subsidy removal

By Abdullahi D. Hassan

Nigeria is described as the most populous black nation in the world, with over 200 million inhabitants, Africa’s biggest economy, and endowed with variant mineral deposits to improve the living standards of its citizens. Yet, the country is bedevilled by gross corruption. Poor governance, ethnic tension, and abject poverty threaten integrity and sovereignty.

Even though, in the past, Nigeria witnessed serial military rulers, The nation transitioned to democracy in 1999. Since then, Nigeria’s leadership has emerged; leaders have been elected from different platforms and regions. Thus, the problems lingered; most elections were marred by irregularities, political interference, and power tussles from one inch to the next.

The political parties adopt the concept of rotating power between the north and south to accommodate the plural ethno-religious groups in the country. After the two tenures of Muhammadu Buhari. Bola Tinubu was nominated by the All Progressive Congress (APC). Amidst serials of allegations labelled against him by the opposition to hinder his andidacy, The bulk of Nigerians were enthusiastic about the level of experiences and transformation built in Lagos from 1999 to 2032.

On May 29, a new Nigeria’s president, Bola, was sworn in. In his inauguration speech, he made a striking remark on Nigeria, mentioning, ‘Subsidy has gone, the controversial fuel subsidy scheme. Four decades of financial assistance were institutionalised in the 1970s by the government to minimise the excessive cost of fuel (Premium Motor Spirit) to consumers and affordability to average citizens. Within a week’s time, the prices of basic household items, transport fares, and electricity began to rise at a high pace. Thus, fuel subsidy is the direct government intervention for the common man that benefits directly, without an odd process. Subsequently, the price increment affects the pharmaceutical industry acutely.

In recent months, patients from economically deprived backgrounds with terminal illnesses and diseases have been on recommended drugs and life-support medications. They are exposed to the brunt of fuel subsidy removal principles. Patients with asthma, diabetes, cancer, hypertension, and sickle cell diseases find it hard to afford medications at exorbitant prices. Due to financial hardship, inflation, and 1000 per cent hikes in drug prices.

GlaxoSmithKline (GSK), a British pharmaceutical and biotechnological company, withdraws from Nigeria. After 51 years of operation, The pharmaceutical firm is known for producing effective drugs, anti-biotics, anti-asthma, anti-malaria, allergy relief, painkillers, pain cream, and nasal decongestion. According to the report by the International Centre for Investigative Reporting (ICIR), GlaxoSmithKline Consumer Nigeria faced a setback in sales of N7.75 billion ($9.83 million) from N14.8 billion last year. GlaxoSmithKline’s existence leads to a drug hike, patients being unable to have medication and an increase in fake drugs. Similarly, GSK faces challenges from the high cost of importation of active pharmaceutical ingredients (APIs), a lack of steady power supply, and the depreciation of the naira against the US dollar.

According to the National Bureau of Statistics (NBS), the value of pharmaceutical products imported into Nigeria rose by 68 per cent to N81.8 billion ($99.1 million) between July and September 2023. The reports revealed that most of the drugs were imported from China, India, the United States, France, and Germany.

From the price survey across the country, the drugs were selling: asthma inhalers from N4,000 ($4.86) to N12,000 ($14.57), hypertension drugs from N10,000 ($12.14) to N20,000 ($24.28), augmentin tablets from N6, 000 ($7.28) to N24, 000 ($29.14), and Glucophage from N3, 800 ($4.61) to N6, 200 ($7.53). The prices vary between cities and regions.

David Uja, 63, a retired army officer frail from prostate cancer, undergoes chemotherapy for two sessions. Each cost him $100. She said, “For almost two months. All the prescribed drugs I used have already expired. The little pension received from the government is not enough to buy medicines at a high price. The economy is bad for us; people battle deadly sickness.”

“After I complained to my doctor, who relocated to the UK, Thanks to him, he sent me an Orgovyx tablet via courier, an expensive drug over $400, said Mr David.

Dataphyte reports that in 2021, only three per cent of the Nigerian population will have health insurance. Despite the guidelines of the National Health Insurance Scheme (NHIS), it is mandatory for Nigeria to benefit from the insurance. Public servants have smooth access to it. An employer will contribute 10% of the monthly basic salary, while the employee contributes 5%. The insurance covers the contributor, spouse, and four biological children less than 18 years old. The current monthly minimum wage is $44.45. Technical non-government workers are denied access to health facilities and medication.

In October, the Central Bank of Nigeria lifted the ban on 43 items after 8 years to allow access to foreign exchange and import-listed goods in the country. Never, pharmaceuticals and medical essentials are excluded from the list.

Interestingly, oil is the mainstay of Nigeria’s economy. Even so, the country has remained poor, with its citizens living below the poverty line of $1 per day. Nigeria has been nearly six months without a fuel subsidy. The majority of Nigerians are unable to afford standard health service delivery. These led to fast and quick deaths among the vulnerable. Others reside in rural areas that lack the means to buy drugs at a high rate. Alternative to traditional medicines.

Therefore, deciding on traditional medicine, given its low cost of purchase, Such medicine lacks a scientific approach, and most traditional doctors determine the nature of an ailment by mere observation. Outwardly of any examination and sometimes depend on spiritual healings in order to detect the course of sickness. These have made life more difficult in a nation with a life expectancy of 53.87 years.

Abdullahi D. Hassan is a freelance journalist and writer from Abuja, Nigeria. His journalistic and literary pieces were published in Daily Trust, The Guardian, Triumph, Politics Today, The Daily Reality, and Kalahari Review.     

Tinubu’s 100 days: The ticking time bomb and the danger of the elite’s silence

By Abdelghaffar Amoka

It is 100 days in office and six months after President Bola Ahmed Tinubu won the election, and the government seems directionless. It is more news that the hardship that President Muhammadu Buhari introduced us to has multiplied. Whether he removed the fuel subsidy or Buhari did, he has no excuse to be clueless for the past six months on the way forward. He asked for the job.

My problem is how our leaders are comfortable putting burdens on the people, burdens they have not prepared them to carry. There was a plan to remove the fuel subsidy. Common sense should tell them that it will affect purchasing power. It is that simple. But why was it so difficult to put up a parallel plan to stabilise the purchasing power of the people once the subsidy was removed? How some people are comfortable with a policy that does not follow the natural law of growth and development beats my imagination.

When a child is born, he is nurtured and trained to become an adult. He is either sent to school or learns a trade and gets empowered to take responsibility. He then gets a wife, has kids, and starts to take responsibility. Imagine giving the boy a wife with kids at 15 without empowering him to take care of the responsibility and expecting him to be fine. It is against the law of nature to burden anyone without preparing him for it.

Fuel subsidy removal was a long battle, and many people have campaigned to remove fuel subsidies since 2010. They made it look like the removal would save the government money for infrastructure and do wonders. But they never discussed the consequences of the removal on the people. How much have we saved for 100 days, and what have we achieved with it? What infrastructure is better than the general well-being of the people?

Funny enough, some of the advocates of the subsidy removal are currently complaining about the hardship on the land. That made me wonder what they were thinking when advocating for the removal. Some are even intellectuals. They thought subsidy was like a tap that you just switch off, and everything is fine. They think it’s that simple. The state government has now given money to share some stuff as palliative. Is 5kg of rice or Semovita all we need to overcome this heartless burden? Who are the people giving them economic advice?

There are three schools of thought on the post-fuel subsidy removal. Those benefitting from the removal will never see anything wrong with it. Those who feel we should endure the hardship and wait for the government to invest in infrastructure. Then, those who see everything wrong with the removal instead of fighting the corruption that shrouded fuel subsidies.

We are being advised to cut our expenses. They seem to have agreed with Buhari’s “Sharholiyah” (wasteful spending) principle. Where is the waste to cut? Those people think everyone has as much as they have to spend. How do you expect a junior staff working at the federal secretariat earning about N40k monthly to cut his expenses and manage? What will he cut? How do you expect a graduate working at the federal secretariat and earning about N60k monthly to cut costs? What will he cut?

For the first time since I became an adult,  federal government workers are being asked to work 2 or 3 days a week to reduce the cost of going to the office. Unfortunately, that will not help reduce the cost of living.

Fuel subsidy is removed, and we are expected to be patient and cope. School fees have increased due to the present economic reality, as acknowledged by FG, and we are expected to come with it. Floating naira to dollar in a country that imports 80% of its needs is a disaster.

The danger of keeping quiet.

It is no more news that crime rates have increased over the last months and are getting worse. Meanwhile, there are three classes of people: the upper, middle, and the lower class. The upper class is inaccessible. They have security escorts, bulletproof cars, tall fences, and gigantic gates with security dogs. The kids are abroad or well-secured. The middle class is accessible and lives not far away from the lower class. As far as the lower class is concerned, the upper and middle classes ( a fast-depleting class) are responsible for the difficulties they are experiencing.

As long as you can still manage to drive your car and feed, you belong to the haves as far as the lower class is concerned. As the crime rate soars, your house will be the first target to be vandalised and bugled. This narration from my friend, Muhammed Hashim Suleiman, keeps ringing the bell in my ear. The narration keeps reminding me of our likely danger in this situation. 

He managed to muster the courage to buy a few litres of petrol for his old Tokunbo car. The petrol station was swarming with people, young and old, not buying petrol but waiting for any buyer to saunter in, and they descended on that unlucky buyer begging for alms. After he purchased the few litres he could afford, entering his car became a struggle because the beggars were begging between him and the car. He silently ignored them and found his way inside the car. Then, a very old woman stood before the car until the petrol attendant shouted at her. 

Instead of leaving the front of my car, the old woman walked towards the driver’s side. On reaching his window, in a cold voice, she said: “Kun kwashe kuɗin ƙasar, kun bar mu da yunwa, yanzu muna roƙon ku abun da zamu ci amma kun hana mu. Wallahi, idan muka mutu da yunwa, sai Allah ya kama ku.” That: “You people have stolen the nation’s money and left us in hunger, now we are begging you for what to eat, but you won’t give us. If we die of hunger, I swear God will never allow you free.”

We are all victims of public embezzlement, but the old woman who happened to belong to the lower class is unaware of it. As we keep quiet adjusting to living with the burden placed on us by these elitists in government, know that the lower class that has been driven far below the poverty line has placed you on the same page with those that have stolen the nation’s money.

It is 100 days of disaster. I hope the government gets its acts together and be purposeful. Any government that fails in the general well-being of the people is a failed government.

Dear Nigerians who are supposed to be in the middle class but tending towards the lower class, If nothing is done and the time bomb should explode, you will be the first casualty. Your silence will cost you a lot. That will be a double casualty for a crime you and I are victims of.

Abdelghaffar Amoka Abdelmalik, PhD, wrote from Ahmadu Bello University, Zaria. He can be reached via aaabdelmalik@gmail.com.

President Tinubu’s broadcast: A Muslim’s plea 

By Abubakar Suleiman 

1. The 7 pm national broadcast by President Bola Ahmed Tinubu on the 31st of July 2023 was timely, especially as many Nigerians are still trying to pick up the pieces of their lives necessitated by the country’s current economic realities and hardship. The removal of oil subsidy and redressing of the multiple exchange rate system are undoubtedly the major causes of this new current of hardship and inflation. 

2. There is seemingly no love lost between the government and the hoi polloi; hence Nigeria’s presidential speeches or live chats are not accorded due relevance. The masses see them as the old regurgitated rhetorics or decoys used to sway them from nagging realities. 

3. However, no matter how much we have lost confidence in the government’s promises, we still need to give it the benefit of the doubt and allow it to test-run its policies and strategies. At the same time, critical stakeholders hold it as responsible and accountable as is humanly possible. 

4. The little over 1700 words speech tagged “After Darkness Comes The Glorious Dawn” sounds promising and reassuring that Mr President’s removal of the subsidy and his intention or action plan to cushion the effect of its removal are noble. However, the noblest of plans might still fail if the economic and even cultural behaviours of the actual or direct beneficiaries of lofty government interventions are not considered. 

5. Therefore, it is against this backdrop that I wish to interrogate some aspects of the government interventions in the broadcast speech that have hugely and negatively affected many practising Muslims in the past and will invariably have the same effect in the coming months. 

6. In his speech, Mr President rightly emphasised that his economic interventions will drive financial inclusion by onboarding beneficiaries into the formal sector, but I think this inclusion did not take into cognisance many practising Muslims’ behavioural approach towards accessing loan facilities as it contravenes a delicate aspect of our religious dictates – usury

7. For instance, the economic intervention with the noble, planned scheme of funding 100,000 MSMEs and start-ups with N75 billion, whereby promoters will access between N500,000 and N1million, is laced with 9% interest per annum and a repayment period of 36 months. Despite the loan’s appealing single-digit interest rate, many practising Muslims who want to venture into start-ups have been shortchanged because a “non-interest” model seems not to have been incorporated into this scheme. 

8. Plus, the aforementioned is also the case with interventions in the manufacturing sector that is aimed at funding 75 enterprises that have the potential to “kick-start sustainable economic growth, accelerate structural transformation and improve productivity.” President Tinubu earmarked N75 billion between July 2023 and March 2024 for this promising purpose. Still, the “9% interest per annum” is a huge stumbling block for practising Muslims. 

9. In the twenty-third paragraph of the text speech, Mr President hinted that the know-how of Development Finance Institutions and commercial and microfinance banks would be tapped for a viable and appropriate transactional structure for all stakeholders. 

10. Therefore, an encompassing financial inclusion plan that carries all members of social strata (especially practising Muslims) bearing the brunt occasioned by oil subsidy removal and the eradication of multiple exchange rates is feasible and should also be implemented. And this should be quickly considered to bring business ideas to fruition, resurrect dying businesses and lift millions from among the Muslim populace above the poverty line. 

11. If there is one thing Tinubu’s presidency should help the Muslim Ummah with, then it should be financial inclusion through non-interest loans and financing of businesses. 

12. As a matter of necessity, the National Assembly shouldered with the responsibility of making laws should look into the Acts of Banks and other financial institutions and tweak certain provisions that impede the development of viable and encompassing solutions around non-interest loans and financing of businesses. 

13. Consequently, the likes of the Central Bank of Nigeria, the Bank of Industry, the Development Bank of Nigeria, the Bank of Agriculture, the Federal Mortgage Bank of Nigeria and other financial institutions should have workable solutions around non-interest issues to bring a significant chunk of the Muslim population on board government’s socioeconomic interventions. It is a gateway to take many Muslims out of poverty, in sha Allah

14. Again, the other thing Muslims would find useful from this presidency is collaborating with state governments to find a way around street begging and almajiranci – reformation or whatever works. 

15.  As a matter of urgency, Ulamas or faith-based organisations should make these demands as bargains for the 2027 presidential and National Assembly elections, for it will indeed augur well for Muslims going forward. These demands need nagging, strategic campaigns, and comprehensive media coverage. And immediate, mid and long-term results should be attached to these demands.

Abubakar Suleiman writes from Kaduna and can be reached via abusuleiman06@yahoo.com.

Tinubu, the kindle of hope is still glowing

By Musa Kalim Gambo

Approaching the first 100 days since Bola Ahmed Tinubu took oath as the president and commander in chief of the armed and unarmed forces of our beloved federation, life seems to have taken a painful and difficult dimension. This comes from the orthopaedic approach deployed to heal our irredeemably crippled nation –now on the edge of a hopeless recuperation from the previous government’s futile attempts at ‘change’.

How did we get here? Renewed hope! We rode on the feeble back of an aged horse, ultimately believing we could reach a place distant from the troubles of our land. Tinubu inspired hope for a better nation, that life will be better for even those ‘papa-mama-pikin’ fanatics who would rather ‘waste’ their inconsequential votes, in the words of a certain Woman of God. However, Tinubu remains the best horse for this turbulent race and is just coming on board.

We shouldn’t expect birth from a government that is still on honeymoon. The intercourse is not over yet. Tinubu’s government is still on a rough foreplay with the crippled Nigerian state, so there will be no immaculate conception.

After all, Tinubu has never promised to sell PMS to anyone at a cheaper rate! He has rather, at different times, threatened to withdraw government subsidy from this critical element of our daily lives – he said, “no matter what”, he will remove the subsidy. He boldly reiterated that there was no going back when he eventually inherited a nation without such subsidy. His top two contenders made similar threats, so why are we disturbed that he is now fulfilling one of his campaign promises?

We clapped at the justification because we believed the popular narrative that a certain top few political and business elite was short-changing us in this whole subsidy deal. We did not call on the government to go after them. We just simply hold this toxic populist notion that some big men are feasting on our commonwealth, which often comes in the format of ‘them’ against ‘us’.

What should be known is that no amount of political gra-gra can flip the side of the wealth distribution coin to favour the overwhelming destitute majority in a failed system. The few profiteering elites will always find their way around unfavourable government policies and return the burden on the proletariat.

In an edition of the Daily Trust (25th July 25, 2023), President Tinubu’s Senior Special Assistant on Print Media, Abdulaziz Abdulaziz, came up with the “Tinubu’s Seven Wonders in Seven Weeks” – a summary of his principal’s efforts as leader of Africa’s most populous nation, or rather the most complex and complicated country in Africa.

Abdulaziz started by reaffirming Mr President’s physical and figurative energy in grabbing some of Nigeria’s hitherto scary and untouchable issues with courage and decisiveness. Grabbing the bull of fuel subsidy and dollar rent-seeking by the horn is undoubtedly commendable – no one will disagree with Tinubu’s government. However, while Abdulaziz does his job quite well for his principal, it is possible that he is now too far and dining directly from the sound-proofed kitchen of power to hear the unending cries of the collateral victims of their policies. But Daily Trust’s editorial of July 24, 2023, which called for the reversal of Tinubu’s ‘chaotic subsidy policy’, painted a high-definition image of the situation. So it is possible that Abdulaziz’s “Tinubu’s Seven Wonders in Seven Weeks” is an attempt to neutralise the arguments contained in Daily Trust’s call for the reversal of the subsidy policy.

Now is not the time for arguments and counter-arguments; it is time to listen to the distant voices that defied the heat of the sun and, in some places, the threat to life by non-state actors to bring on board this much-anticipated government. The kindle of hope is still fresh and glowing, don’t blow it out.

Musa Kalim Gambo wrote from Zaria via gmkalim@hotmail.com.

On Tinubu’s “Renewed Hope” and the challenges faced in Nigeria

By Muhammad Sagir Bauchi

John Maynard Keynes was an economist who lived in the 1930s. He developed macroeconomic ideas parallel to the classical school of economics that believe in absolute economic freedom, which needs no government intervention to stabilise an economy when it’s disequilibrium.

The classical school ideas were centred around economic growth and freedom. During the 1930s great depression, many Western policymakers were proponents of classical schools. They believed that the economic downturn would be corrected by less government intervention (deregulation) in the economy and by encouraging businesses and investors to take advantage of the lower input and prices to pursue their businesses-interest.

In that regard, it would return output and prices to equilibrium. But to Keynes, the economic meltdown proved the classical notion flawed and needs rejigged. As there was low output corresponded with a high rate of unemployment and price instability. These inspired Keynes to think differently, which led him to develop the macroeconomic ideas that, according to him, represent the reality of economic downturn.

Keynes advocates for government intervention during an economic meltdown through spending, which will create jobs to stimulate more demand in the face of the economic slump, restoring the economy to equilibrium and not allowing businesses and investors to determine the fate of the economy. Although this theory is practicalised and in constant play in a capitalist model of the economy, it has the major implication of pushing the government to excessive borrowing to spend, making it a constant state of indebtedness without an end in sight. These formed the basis of Keynes’s famous quote, “In the long run, we are all dead”.

In Nigeria, the previous administration of President Muhammadu Buhari succeeded in administering poor economic policies, which plunged the economy into a slumpy state. Despite his huge spending, his utopian economic policies yielded close to zero positive results. Likewise, his border closure policy enriched a few local intensive rice farmers and deprived millions of their cross-border businesses. Even as the local farmers could not bridge the demand gap in rice production, he blocked major rice importers from bridging the gap.

No thanks to his performance in transportation and insecurity, where major roads in some parts of the country were constructed/renovated, while other populated regions were neglected, railways began to function. On the security side, fewer successes were recorded in the fight against secessionists, banditry and kidnappings, thus leaving some regions at the mercy of bandits, kidnappers and IPOB terrorists. Although, a remarkable success was recorded in the fight against Boko Haram terrorists.

Inflation, insecurity, communal clashes, unemployment, epileptic labour strike and high cost of living became the hallmark of the last administration, borne out of poor economic policies.

Tinubu, Renewed Hope and New Nigeria

In his effort to correct the economic sufferings caused by the wayward policies of the previous administration, President Bola Ahmed Tinubu is trying to implement economic policies that have long-term impacts. This has started with subsidy removal on some essential goods and services, more government spending, the introduction of students loan, unification of exchange rates, suspension of taxes on some commodities and services,  and others. These and many more policies are classical economic policies that have long-run positive impacts on the economy. In the long run, the downturn would be corrected, and the hardworking would have something to take home.

During his inauguration, President Bola Ahmed Tinubu announced the removal of subsidies on petroleum products. Without a doubt, the subsidy is a heavy burden to Nigeria’s economy, which few exploit to their advantage. Due to the problematic nature of the subsidy scheme, almost all the previous democratic presidents had promised to remove it at a time, for the same reasons that it has become a burden to the state, it is riddled with corruption, and only a few are enjoying it at the expense of the state, leaving the majority with negative consequences.

The country is entangled in a constant state of borrowing to finance the subsidy payment, which hinders it from funds to finance major infrastructural projects, social welfare programs and reforming the security sector to a variant capable of meeting these modern-day challenges. Therefore, if the subsidy scheme is abolished, funds will be available to finance all the critical sectors. If it can be done honestly and transparently, it is a legitimate cause worthy of support and sacrifice, but corruption in all levers of governance is what makes one sceptical of the government’s commitment to transparency and accountability in governance and its sincerity in abolishing the subsidy.

However, looking at the current state of the nation’s economy, petroleum subsidy is the only guaranteed general state welfare that will be enjoyed by all and has a general impact on the whole population. It directly links to transportation, manufacturing, energy, school fees, foodstuff prices, services and many more necessities. Any slight impact on the prices of petroleum products leads to inflation, a hike in transport fees, job cuts and high unemployment prospects.

Subsidy Against Subsidy Removal:

According to reports, the government has proposed a monthly N8000 allowance to be shared with 12 million households in the country for six months. Additionally, One Hundred Billion is marked for road construction, several billion for the judiciary, Seventy Billion for the national legislative welfare, and Eighteen Billion for agriculture. These are proposed as remedies to cushion the effect of petroleum products subsidy removal for the time being. No doubt, there are clear misplacements of priorities in this proposal.

If the policymakers are honest to cushion the effect of the subsidy removal, the agricultural sector is the most critical sector that needs urgent intervention to create windows that would encourage farmers to access soft loans, low-cost hybrid seeds, subsidised chemicals and fertilisers, and other farming implements. This would allow them the plant with ease; as such, the multiplier effects would be: the availability of food products in the market and the moderate prices of food items due to the subsidised mechanisms that farmers enjoyed. This would have a real positive impact on the common man’s life. But giving out Eight Thousand Naira to 12 million families could only cushion the immediate impact, exposing them to more suffering and an uncertain long-term future.

Now, let us examine the palliative distribution formula according to regions as reported; if numbers are anything to go by in governance, the majority must have his way, while the minority can have a say. If this is true, one will find it difficult to understand the rationale behind giving out 57% of N500bn to the South West Region of 47 Million people at the expense of the North West, a region with a stunning population of over 49 Million which was given only 4% out of that total amount. If population matters in the distribution of wealth, then there is an undeniable discrepancy here.

What is more alarming and unbalanced is how the Northeast region is almost left out of this allocation, even with its unprecedented challenges in social, political and economic destruction by Boko Haram insurgency, high poverty index and outrageous numbers of out-of-school children, it was reported that only 1% of that N500Billion is allocated to the region. This region comprises six states, with a population of 26 million and millions of internally displaced persons (IDPs) from within and neighbouring regions.

Frankly, I don’t want to believe that this administration has started on the wrong footing, with a preference for nepotism and sectionalism in the administration of appointments and lopsided distribution of the country’s wealth in this critical economic period. I hope President Tinubu will work hard to change this narrative and give hope to a renewed Nigeria.

This is a clear indication that some parts of the country will continue to be preferred over others by the present administration, even that fortnight, it was the primary beneficiary of the immediate administration of a Northerner, a president who mysteriously supervised the underdevelopment of his region to developed other regions economic future.

Muhammad Sagir Bauchi wrote via ibrahimsagir1227@gmail.com.

FG begs NLC to shelve planned strike over fuel subsidy

By Uzair Adam Imam

The Federal Government has appealed to the Nigerian Labour Congress (NLC) to shelve its planned strike over fuel subsidy removal.

The FG said it was doing everything possible to address issues raised by the congress, which threatened to embark on a nationwide strike in August.

The Daily Reality reports that the Congress Spokesperson, Ben Upah, made this disclosure on Wednesday, adding that they give seven days to the federal government to address the demand.

Speaking after the Steering Committee meeting on Palliatives, Olu Verheijen, the leader of the government team and Special Adviser to the President on Energy, pleaded with labour to give the federal government more time to look into its grievances rather than embark on industrial action.

She explained that the government was yet to roll out palliatives because it didn’t want to make mistakes, adding that the meeting with organised labour was productive and would continue tomorrow.

Asked about the agenda of the meeting, she said: “It involves labour and some parts of government; it’s a steering committee. it’s a wide group of people, a wide group of stakeholders representing the interests of Nigerians. And we’ve agreed to continue to make progress.

“It was a very productive meeting, the focus was really around how we fast-track a lot of the interventions that will bring relief, particularly around CNG, mass transportation, cleaner energy, transportation, and reduce the impact of the cost of transportation, the increased cost of transportation. So we’ve made good progress. And we’re going to continue to do so and so that we can start rolling out these opportunities and these relief measures as quickly as possible.”

Asked if Labour will not embark on strike as threatened, she said: “The labour unions will speak to that. But we are making progress; we’re trying to address the issues that will prevent a strike. So that is essentially why I feel we made very good progress today and will continue to do so.”

NLC to embark on nationwide strike over fuel subsidy removal

By Uzair Adam Imam

The Nigeria Labour Congress (NLC) has reportedly threatened to embark on a nationwide strike next month over the bitting economic hardship caused by the fuel subsidy removal in the country.

The Congress Spokesperson, Ben Upah, made this disclosure on Wednesday, adding that the they give seven days to the federal government go address the demand.

The Daily Reality recalls that President Bola Tinubu had, during his inauguration on 29 May, announced the removal of fuel subsidy.

The action had suddenly pushed up the price of the product, making life more difficult for the poor.According to Upah, the congress gave a nationwide strike notice beginning on 2 August to protest the removal of fuel subsidy by the federal government.

“Yes, the nationwide strike will commence on 2 August 2023. We will soon issue a communique to that effect,” Upah said.

This is coming a few hours after the National Association of Resident Doctors (NARD) began an indefinite strike in the country.

The doctors are demanding the implementation of a one-for-one replacement policy for healthcare workers, immediate payment of all salary arrears, implementation of a Consolidated Medical Salary Structure, and a new hazard allowance, among others.

Railway: A panacea for subsidy removal in Nigeria

By Tajuddeen Ahmad Tijjani

President Asiwaju Bola Ahmed Tinubu announced the end of subsidy in Nigeria in his inauguration speech on May 29, 2023, at Eagle Square, emphasising that there is no provision for it in the 2023 appropriation. However, these have no doubt brought untold hardship to average Nigerians. Though experts agree that these, among others, are the sacrifices we must make for the country to move forward, I agree with the belief that subsidies can no longer justify their ever-increasing costs in the wake of drying resources.

Thus, the sum of N500 billion has been extracted from the supplementary budget of N819 billion for the provision of palliative care by the President. Even though it raised much concern among Nigerians, looking at how unpatriotic elements within misused or abused all palliative ranging from covid-19 etc., by the previous administration, sadly, no one was punished for the infraction.

Rail transportation is a viable option that, if considered, will often be a potential solution for reducing the untold hardship presently experienced by the populace. However, it has the potential to be more cost-effective and sustainable, considering current circumstances. It would indeed give more life to our road pavement; most trucks that too often damage our roads would be off the road.

Indeed, one of the main advantages of rail transportation is its ability to transport large numbers of passengers or goods in a single trip. Yet it also has a higher capacity compared to other modes of transportation. This efficiency can no doubt help reduce the present unfortunate hardship. It’s, however, among the intentions of the President to channel the resources to infrastructure in the country. Again, the cost of commodities will drastically reduce, especially in transporting perishable from one location to another. 

The majority, or perhaps 90 per cent, of Nigerians, can’t even talk about saving when we’re all struggling desperately to survive in the face of merciless inflation that is, sadly, rapidly worsening every day. Inflation too often wipes off the little we earn to keep the wolf from the door. To me, hardship encourages corruption in all aspects. Perhaps the government is not aware of this precarious situation. Or maybe it looks the other way around. Indeed, this is not what we bargain with the government by entrusting it with our votes. 

Therefore, I call on the government to do the needful in short-term and long-term solutions. At the same time, the short term should be mass subsidising urban and rural transportation by both the three tiers of government. 

Tajuddeen Ahmad Tijjani writes from Galadima Mahmoud Street, Kasuwar-Kaji Azare, Bauchi State.

Embracing a hybrid mode of working in Nigeria amidst fuel subsidy removal

By Salisu Uba, PhD FCIPS

Nigeria has witnessed yet another transition in government after eight years of the previous administration. In his inaugural address, the newly sworn-in President, Bola Ahmed Tinubu, announced a ground-breaking policy decision to alleviate strain on the government’s finances. He declared the end of the long-standing subsidy on petroleum products, proclaiming, “Fuel subsidy is gone.” While addressing economic challenges, this decision will increase petrol prices and potentially impact other price points. The removal of the subsidy marks a crucial shift. It paves the way for the integration of hybrid and remote working, which holds the potential to positively impact Nigeria’s workforce, productivity, and work-life balance, among other aspects.

Removing the subsidy and transportation and commuting challenges can transform the work landscape in several significant ways. These changes can create opportunities for increased flexibility, renewable energy investment, on-demand workspaces, startups with affordable internet connectivity solutions, and the decentralisation of government ministries and departments away from the centralised Abuja city.

Flexible working, hybrid working, and remote working have emerged as popular modern work arrangements in recent years. Flexible working allows employees to exert some degree of control over their working hours, location, and work structure. It provides the flexibility needed to accommodate individual preferences and needs. Hybrid working combines elements of both office-based work and remote work, enabling employees to split their time between the physical office and remote locations. On the other hand, remote working involves working outside the traditional office environment, often from home or any other external location.

The genesis of these work arrangements can be attributed to various factors. Technological advancements, particularly the widespread availability of high-speed internet, have revolutionised how employees stay connected and collaborate remotely. This technological progress has facilitated the seamless integration of remote work into everyday business operations. The growing demand for work-life balance, increased autonomy, and the pursuit of enhanced productivity and job satisfaction have contributed to the rise of flexible, hybrid, and remote working.

The fundamental distinction between these modern work arrangements and traditional working lies in the level of flexibility and location independence they provide. Traditional working typically adheres to fixed working hours and mandates physical presence in the office for the majority of the workweek. In contrast, flexible, hybrid, and remote working empowers employees with the freedom to choose when and where they work, enabling them to manage both personal and professional responsibilities effectively. 

Since the onset of COVID-19, numerous companies and governments worldwide have embraced hybrid working. With the rising cost of petrol due to the subsidy removal, companies may find increased incentives to adopt more flexible work arrangements. Hybrid and remote working options enable employees to reduce their reliance on commuting, resulting in cost savings and a superior work-life balance. This shift towards flexible work arrangements can potentially increase employee productivity and job satisfaction.

The lack of infrastructure to support remote and hybrid working may raise concerns. However, this challenge should foster innovative thinking and serve as a catalyst for increased investment in renewable energy sources. Nigeria, endowed with abundant renewable energy potential, particularly solar and wind, can leverage this opportunity to diversify its energy mix. By promoting renewable energy infrastructure and technologies, Nigeria can create new job opportunities, reduce dependency on imported fossil fuels, and contribute to global sustainability efforts.

The infrastructure challenges associated with commuting and transportation to offices necessitate the growth of on-demand workspace providers and startups offering innovative solutions. These providers can establish affordable and convenient coworking spaces and shared offices in strategically decentralised locations, catering to the needs of professionals and government workers seeking alternatives to traditional office setups. This trend can encourage entrepreneurship, collaboration, and the development of vibrant startup ecosystems across Nigeria.

Access to reliable and affordable internet connectivity becomes crucial for the changing work landscape. The government and private sector should prioritise investments in broadband infrastructure to ensure widespread access to high-speed internet in urban and rural areas. Affordable internet connectivity can empower remote workers, entrepreneurs, and startups to thrive, promoting digital inclusion and fostering economic growth.

To streamline government operations and mitigate transportation challenges, decentralisation of offices is necessary. Removing the subsidy can serve as a catalyst for decentralising government ministries and departments away from Abuja City. This effort can involve establishing regional offices and administrative centres in different parts of the country, leading to increased accessibility to government services, better coordination with local communities, and the equitable distribution of resources and opportunities.

The future of work in Nigeria presents a ripe opportunity for shaping and thinking differently. The concept of hybrid and remote working has gained significant traction, and with the removal of the subsidy, the traditional work landscape should undergo a paradigm shift. Organisations must reconsider their operational strategies, leading to the rise of hybrid and remote working models. This transformative shift can potentially reshape the Nigerian work culture and enhance overall productivity.

Hybrid and remote working offer numerous benefits to Nigerian employees, such as eliminating the need for daily commuting, saving valuable time, and reducing the stress associated with traffic congestion. Additionally, working from home provides a more relaxed environment, allowing employees to customise their workspace and tailor it to their specific needs. This flexibility enhances work-life balance, fosters a sense of autonomy, and can even improve job satisfaction.

Contrary to conventional beliefs, hybrid and remote working can significantly boost productivity. Employees working remotely often experience fewer interruptions, resulting in increased focus and efficiency. Furthermore, the absence of a rigid office environment allows individuals to structure their day according to their natural productivity cycles, leading to better time management and enhanced output.

Forward-thinking Nigerian employers should embrace hybrid and remote working to remain competitive and attract top talent. By offering flexible work arrangements, companies can tap into a wider pool of candidates from different geographic regions. This allows for diversity in skillsets, perspectives, and experiences, ultimately fostering innovation and driving business growth.

While hybrid and remote working present numerous advantages, they also come with unique challenges that must be addressed. Reliable internet connectivity is crucial for effective remote work, and the government should invest in infrastructure development to ensure widespread access to high-speed internet across the country. Employers must also establish clear communication channels and implement robust remote work policies to maintain collaboration and cohesion among team members.

The removal of the subsidy and the adoption of hybrid and remote working have the potential to stimulate Nigeria’s economy. By reducing transportation costs, employees can allocate their savings towards other essential expenditures, thereby increasing consumer spending. This shift can open doors to new employment opportunities and increase workforce participation, benefiting both individuals and the economy as a whole.

The integration of hybrid and remote working into Nigeria’s workforce is an exciting prospect for the future. As technology continues to advance and businesses adapt, the concept of traditional office-based work may become less dominant. The government, private sector, and individuals must collaborate to create a supportive ecosystem that fosters innovation, provides training in remote work skills, and ensures equitable access to opportunities.

In conclusion, the removal of the subsidy in Nigeria must catalyse the adoption of hybrid and remote working, which offers numerous benefits for employees, employers, and the economy. By embracing this new working model, Nigeria can unlock the potential for enhanced productivity, improved work-life balance, and increased economic growth. Stakeholders must work together to address challenges and create an enabling environment that promotes the successful integration of hybrid and remote working into the fabric of Nigerian society.

Dr Salisu Uba, PhD FCIPS, writes from the United Kingdom.

Contact information LinkedIn https://www.linkedin.com/in/salisuuba/

Gov. Buni to unveil palliatives to cushion subsidy removal

By Muhamamad Suleiman Yobe

Yobe state Governor,  Hon. Mai Mala Buni, has assured to provide palliatives to the people of the state to cushion the hardships occasioned by the removal of the subsidy on fuel.

This is in a statement issued to The Daily Reality by Director General Press and Media Affairs to Mamman Mohammed Saturday.

The governor said the government will look into measures to support farmers, traders, transport, food and other essential needs of the people.

“Government is conscious of these hardships caused by the subsidy removal and will look into these critical areas to provide palliatives to our people.

“We will look into ways of supporting inter and intra-town transport and other necessary services to our people.

“Similarly,  the government would work out measures to provide shuttle buses to students of tertiary institutions at affordable costs,” Governor Buni said. 

He charged the people to be on the same page with the government to successfully execute the proposed measures and other state government policies and programmes. 

Governor Buni had early this week attended the Nigeria Governors Forum and the Nigeria Economic Council meetings where the states and federal government deliberated on measures to mitigate the effects of the subsidy removal.