Nigeria: Federal, State Govts May Not Pay Salary Beyond June Without Subsidy Removal - Obaseki

"Workers must now rise and ensure that they champion any discussion on subsidy removal."

Governor Godwin Obaseki of Edo State says the federal and state governments may not be able to pay workers' salaries beyond June unless it either resorts to "massive printing of money" or removing fuel subsidy.

Mr Obaseki stated this on Monday in his remarks during the 2023 Workers Day celebration in Benin City, Punch newspaper reported.

The federal government had in 2021 announced plans to remove petroleum subsidy but the Minister of Finance, Zainab Ahmed, last week said the plans had been suspended, adding that the timing for the subsidy removal should not be now.

Speaking at the Samuel Ogbemudia Stadium, the venue of the Workers Day's celebration, Mr Obaseki urged workers to change their traditional strategy of reacting after policies that affect them have already been made.

"It would be a miracle for the federal government and state governments to pay salaries beyond June this year without resorting to massively printing of money or removing fuel subsidy. Either of these decisions will bring more hardship and pain to Nigerians, particularly workers.

"We must all make sure that the burden and pain of these measures, which must be taken, are not carried by workers alone. Workers must now rise and ensure that they champion any discussion on subsidy removal.

"You must shift from the tradition of reacting when these policies have been made but insist that you take charge and ensure full transparency and disclosure. If we are all undertaking a reform, then the benefits and pains that will come out of the reforms must be mutually shared by all Nigerians, not just the downtrodden," Mr Obaseki said.

The governor, who said workers in Edo are the best paid in the country, wondered why the federal and other state governments were yet to increase workers' salaries.

"When we announced the increment of the minimum wage to N40,000 at this venue last year, I expected that the federal government and other state governments would follow suit immediately but I am surprised that it has taken them one year already.

He assured workers in the state that they will be fairly treated to ensure that their take-home pay can take them home.

"Our workers are the unsung heroes of society and the engine that powers our economy and we will continue to prioritise your welfare. This is why we will continue to embark on a series of reforms to boost your morale and productivity, ensuring the right incentives and enabling the environment to deliver quality service to the Edo people.

"This is in addition to the reforms we have embarked on in education, healthcare, technology, economy, agriculture, and many other sectors," Mr Obaseki said.

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