Removal of subsidies and leadership of Dapo Abiodun

There is no doubt that the removal of the subsidy on Premium Motor Spirit (PMS) by the federal government is a bitter pill to swallow. Across the country, Nigerians are groaning over worsening poverty.

On the one hand, the Bola Ahmed Tinubu government gave compelling reasons why the subsidies should be removed, among them the habitual opacity and massive corruption that had characterized the process leading to the ousting of the very masses 'he's supposed to answer.

On the other hand, while understanding the government's decision, the vast majority of Nigerians, including trade unions, are still complaining about the difficult position the action has put them, with rising inflation and the drastic impact on disposable income.< /p>

And while the problem persists nationwide and governments at different levels strive to provide compensatory measures to cushion the impact of PMS liberalization and the vagaries of the global market on ordinary Nigerians, it is important to recognize and appreciate the efforts of pioneer state governments in responding to the difficult situation. In this regard, the efforts made by the government of Ogun State, led by Prince Dapo Abiodun, are remarkable.

As part of efforts to ameliorate the effects of the removal of subsidies on the people of Ogun, the Abiodun administration recently approved some measures for immediate implementation. But the point of interest is that long before President Tinubu announced the decision on the fuel subsidy in his maiden speech on May 29, Ogun's helmsman had anticipated the corollaries of a potential removal of the subsidy on the PMS and charted a data- and science-driven path to improve people's impact.

Among other measures, he decided to deploy a gas-powered public transport system, with the conversion of state Wi-Fi buses from PMS to gas-powered vehicles. The idea, which has now proven to be quite prophetic, is that with petrol costing significantly less than PMS and providing better value for money, public buses would cost significantly less and provide relief to people when they move from point to point.

While discussions with unions were still ongoing in various states, the Abiodun government announced a cash palliative of 10,000 naira for civil servants and pensioners for a period of three months initially, from July.

Ogun, having taken the lead, Adamawa and Kwara followed suit. But Abiodun's strategy is much more than this monetary palliative; it is multi-pronged, involving the use of a social registry developed during the COVID-19 crisis to distribute relief items to the people of Ogun; encourage transport workers to switch from a PMS-powered system to a CNG-powered system; e-mobility, i.e. the deployment of battery-powered motorcycles and tricycles, and the bulk purchase of foodstuffs to resell at controlled prices.

Laudable, is the government-approved risk allowance for state health and medical personnel and the special allowance for civil servants. He ordered the immediate publication of promotion letters for 2021 and 2022, the payment of March and April 2023 leave bonuses for civil servants and the immediate cash remittance of the quarterly payment of gratuities to retirees. That was not all. State ministries, departments and agencies should work out modalities to ensure that 20 percent of their workforce are on daily leave to ease the subsidy situation, while the government should immediately begin distributing food palliatives (rice , garri, beans, maize, etc.) to vulnerable citizens. In addition, the Gateway Trading Company was mandated to establish food distribution points throughout the state and sell the items at market available rates prior to the removal of fuel subsidies.

Furthermore, the State is setting up a commodity exchange to ensure the optimization of current and future investments in the agro-related sector of the economy, and the distribution of fertilizers and other inputs to farmers at subsidized and controlled prices.

It is also launching electric motorcycles and tricycles statewide and converting its transit buses to CNG, including staff buses and transit buses. It will actually acquire additional new CNG buses to facilitate transportation within the state, charging small fares. The government also supports micro, small and medium-sized enterprises through special programs aimed at boosting production capacity and job creation

According to Governor Abiodun, "We have two types of palliatives: money transfer and technology transfer. If you buy food at controlled prices in designated areas, you save a lot of money. If your transportation cost is lower, your disposable income will be higher and consequently the standard of living will be better CNG converted buses have been tested and people will now refuel their vehicles at the designated time...