The stipend the FG proposes to cushion the effect of fuel subsidy removal is not enough according to the Labour body.
The Nigerian Labour Congress has rejected the Federal Government of Nigeria’s plan to pay a transport allowance to every Nigerian in order to cushion the effect of soaring fuel prices that will be experienced after fuel subsidy removal. The Labour body is of the opinion that the intended stipend will not be enough to cover the blowback effect that rising fuel costs will have on the Nigerian economy as inflation will most likely rise even higher than it already is.
The NLC president Ayuba Wabba, in a statement he made on the topic, said that the Labour body was not consulted in the attempt to make such a defining economic move by the Federal Government. He opined that the current state of the Nigerian naira relative to the dollar will make the deregulating move worse on Nigerians as processed fuel will have to be purchased from foreign countries due to the lack of processing means available within the country.
The rejection of the deregulatory move is in the best interest of the country according to Wabba. The 200% increase that may be coming to fuel pump price will definitely lead to bigger socio-economic issues in the country if embarked on and it is within the purview of the NLC to therefore reject the FG’s plan after assiduously considering all angles of the matter.
His statement said, “This situation will definitely be compounded by the astronomical devaluation of the naira, which currently goes for N560 to 1US$ in the parallel market. Thus, any attempt to compare the price of petrol in Nigeria to other countries would be set on a faulty premise as it would be akin to comparing apples to mangoes”.
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