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Subsidy: Stakeholders, Experts Convene National Dialogue, Proffer Short, Long Term Solutions

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By Adeola Ajiboye

A group of civil society organisations (CSOs) and other relevant stakeholders have met in Abuja to explore ways out of the file prices hike crisis after the fuel subsidy removal by the federal government.

The stakeholders under the banner of ‘National Dialogue on Subsidy Removal’, facilitated by United States Agency for International Development (USAID) and Palladium, reviewed the policy which took effect on May 29th, 2023 and concluded that more proactive actions were required on the part of government and the citizens to ameliorate its effects.

Speaking at the event, Executive Director of Centre for Transparency Advocacy (CTA) Faith Nwadishi, urged politicians and government at all levels to urgently engage Nigerians to find workable solutions that would mitigate the hardships trailing the removal of subsidy.

She argued that besides it’s disruption to lots of development in the country, the hasty removal of subsidy has led to some deaths due to the suffering and inability of many people to meet up with the high increase in transportation, goods, services and other basic needs needed for survival.

She said that in the spirit of transparency, accountability and citizen participation, it has become critical for government and the political class to engage the people whom they have vowed to serve, to find out their specific problems, needs and how best they could be addressed, as the voices of those directly affected by the subsidy removal must be heard and considered.

“The decision to remove fuel subsidy have had significant implications on the lives of our fellow citizens. It has resulted in increased costs of living, affecting transportation, essential goods, and services. As we gather here today, it is imperative that we recognize the urgency of coming up with sustainable recommendations to mitigate the hardships faced by vulnerable groups in our society,” Nwadishi said.

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Also, one of the participants at the event, Dr Micheal Uzoigwe, said that it was of strategic importance for government to cushion the socio-economic effects of the subsidy removal on citizens.

He noted that fuel subsidy failed to achieve its aim in Nigeria because its administration was flawed and characterized by lack of transparency, mismanagement and corruption.

Dr Uzoigwe also said that it is important to recognise that the essence of fuel subsidy removal was not to make more revenue available to government, which will be subjected to the same systemic inefficiency that drained government revenues and denied the poor the full benefits of fuel subsidy.

“The figure has been quoted to be as high as 68m litres per day. The Nigeria Extractives Industry Transparency Initiative (NEITI) shares the same concern about the bogus consumption figures and is currently seeking to conduct a study that could provide a more accurate estimate.

“Without a strong signal on fighting corruption, there is no guarantee that the potential savings from subsidy removal would be safe or appropriately utilized. Government should disclose plans for repositioning critical accountability institutions for improved performance and delivery of their mandates.

“The sacrifice required to salvage the country’s struggling economy cannot be made only by the poor and vulnerable. The annual salary and benefits of a Nigerian senator come to about N350m while those of a minimum wage earner are less than N400,000,” Uzoigwe said.

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Uba Sani: Least Paid Worker In Kaduna Earns N72,000

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Uba Sani, governor of Kaduna, says no worker in the state earns less than N70,000 as salary in compliance with the new minimum wage.

Sani spoke on Thursday at Murtala Square in Kaduna on occasion the Workers’ Day celebration.

The governor said the least paid worker in the state earns N72,000, noting that he believes in the dignity of labour, adding that the issue of incremental adjustment of salaries would be addressed soon.

“I have been involved in the struggle for labour rights, workers’ rights. That is my antecedent. Because of my background, I sat down with the leadership of the Nigerian Labour Congress (NLC),” Sani said.

“I made it clear to them that though we have met the minimum wage requirement but there is something called incremental adjustment which is discretionary.

“Because of my relationship with both NLC and TUC, I asked them that we should sit down and come up with a formular that will make every worker in Kaduna state happy, irrespective of his or her status and they came up with three different options.

“Today, I want to reaffirm to all of you here that by the grace of God, we will look at the incremental adjustment and ensure that even senior civil servants will benefit because we have to make our workers happy.’’

The governor added that his administration also prioritises improving the living conditions of pensioners.

He said the state government has released N3.8 billion to settle outstanding gratuities, death benefits, and accrued rights under the contributory pension scheme in April.

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“Since the inception of our administration, we have cumulatively paid the sum of N10.4 billion in gratuity, death benefits, and accrued rights in the Contributory Pension Scheme,” Sani said.

The governor said the payment of such a huge sum to pensioners is “unprecedented.”

Commenting on the ongoing industrial action by the Kaduna State University branch of the Academic Staff Union of Universities (ASUU), Sani said his administration has done everything to reposition the school.

According to him, more than 60 percent of the courses were not accredited when he assumed office, but his administration spent over N300 million to secure National Universities Commission (NUC) accreditation.

The governor said the striking lecturers’ demands had accumulated over 17 years, with about three of his predecessors unable to settle the liabilities, which now total between N5 billion and N6 billion.

“In spite of this, the lecturers want us to settle these liabilities now, and I said no. I said that we have to sit down and have a dialogue. I then asked them, where were their voices in the last 17 years?” he said.

He promised that the problem would be addressed owing to the importance of education, which he described as the “greatest leveller”.

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PETROAN Asks FG To Prioritise Welfare Of Oil, Gas Workers

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the government to prioritise the welfare of oil workers, given the hazardous nature of their work.

In a statement on Thursday, Billy Gillis-Harry, PETROAN’s president, hailed oil and gas workers across the country on Workers’ Day.

According to Joseph Obele, PETROAN’s spokesperson, Gillis-Harry, while addressing journalists in Abuja, appealed to the government and stakeholders in the industry to improve welfare packages and expand health insurance for oil workers.

“Studies have shown that workers in areas where gas flaring is prevalent are at high risk of several health challenges, which can affect them physically, mentally and even increase cancer risks,” Gillis-Harry was quoted as saying.

The association said gas flaring remains a serious problem in Nigeria’s energy industry, exposing workers and nearby communities to harmful health and environmental effects.

The group said the impact of gas flaring highlights the urgent need for better health protection and general welfare for those working in the sector.

According to the statement, Gillis-Harry urged regulatory bodies to strictly enforce existing laws aimed at stopping gas flaring in the country.

“It’s imperative that we prioritise the health and well-being of our workers and protect the environment from the harmful effects of gas flaring,” the president said.

The spokesperson said PETROAN believes ending gas flaring would reduce its harmful impact on workers and host communities and help build a more responsible oil and gas industry.

Obele said PETROAN commended governors who have started paying the new minimum wage, especially those paying above the set rate.

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“Billy Gillis-Harry called on governors who are yet to comply to do so in the shortest possible time, emphasising the need for workers to receive fair compensation for their labour,” he said.

He said the association also reaffirmed its commitment to collaborating with stakeholders to support oil and gas workers and ensure safe and healthy working environments.

Obele said PETROAN is of the view that better welfare and an end to gas flaring would boost productivity, reduce accidents, and raise performance across the industry.

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MTN Nigeria posts N1trn revenue surge

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MTN Nigeria Communications Plc generated N1.0 trillion in service revenue in the first quarter of 2025.

This marks a 40.5 per cent increase from the N752.99 billion earned in Q1 2024.

The company confirmed this in a corporate filing with the Nigerian Exchange Ltd. on Tuesday.

Profit after tax dropped by 134 per cent, falling to N133.7 billion from N392.7 billion in the same period of 2024.

Its total subscriber base grew by 8.2 per cent to 84.1 million, with 3.2 million new additions in Q1 2025.

Active data users rose by 13 per cent to 50.3 million, following the addition of 2.6 million users.

EBITDA climbed 65.9 per cent to N492.7 billion, while EBITDA margin improved by 7.2 percentage points to 46.6 per cent.

The company recorded free cash flow of N209.9 billion and earnings per share stood at N6.38.

MTN Nigeria CEO, Karl Toriola, expressed satisfaction with the Q1 2025 results, citing strong strategic execution and resilient service demand.

He said momentum from Q4 2024 had helped put the firm on track to restore profitability and achieve a positive net asset position.

He added that regulatory approval for price adjustments was essential to sustain investment and maintain service quality.

This approval enabled N202.4 billion in capital expenditure, up 159 per cent, aimed at expanding capacity and enhancing user experience.

Toriola said the 40.5 per cent growth in service revenue underscored strong demand and commercial discipline.

He noted that Q1 results do not yet reflect the full impact of price changes made late in the quarter. (NAN)

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