The Federal Government’s plan to pay federal civil servants an additional N70,000 monthly transport allowance for six months has triggered questions over the sustainability of the intervention, with the Labour Party warning that the measure could deepen concerns about selective relief amid widespread economic hardship.
Muhammadu Maigari Dingyadi, Minister of Labour and Employment, told BusinessDay exclusively, through Amina Daniel, that the Federal Government would continue discussions and engagement with organised labour beyond the temporary allowance to find a permanent solution to issues raised by labour unions.
The assurance comes as concerns mount over what will happen when the six-month payment expires and whether the intervention adequately addresses the wider cost-of-living crisis following the removal of petrol subsidy.
Ken Asogwa, national publicity secretary of the Labour Party, in an exclusive interview with BusinessDay questioned the rationale for limiting the additional payment to federal civil servants, arguing that the economic consequences of subsidy removal extend far beyond government employees.
‘My major concern with the payment of an additional N70,000 monthly to all federal civil servants for a period of six months is what happens after the expiration of the six-month period,’ Asogwa said.
He argued that petrol subsidy removal was an enduring policy with far-reaching economic consequences and should therefore be accompanied by sustainable measures capable of providing lasting relief, rather than a temporary intervention.
According to him, the government must explain how it intends to protect the livelihoods of Nigerians who are outside the federal public service, particularly unemployed people and households struggling with rising living costs.
‘What happens to the over 200 million Nigerians who are not federal civil servants, many of whom are unemployed? This is the segment of the population that bears a significant brunt of the hardship occasioned by subsidy removal,’ he said.
Asogwa asked the government to clarify what palliatives were available to these Nigerians and how its policies would cushion their hardship.
The Labour Party spokesman also questioned the timing of the intervention, alleging that the temporary payment could be interpreted as an attempt to win the support of federal civil servants ahead of the next general elections.
‘The temporary intervention, with all due respect, bears the imprint of vote-buying,’ he said, adding that its timing raised concerns about whether the measure was intended to secure political support rather than address the broader economic difficulties confronting the country.
Recalled that, the Trade Union Congress of Nigeria (TUC) has rejected the Federal Government’s proposed N70,000 transport allowance, demanding an immediate review that will raise the salary of the lowest-paid worker to N300,000 per month.
The labour centre described temporary wage awards as inadequate to cushion rising living costs, insisting on a permanent salary increase and the honouring of outstanding agreements with workers.
This was contained in a statement issued on Wednesday by its President, Festus Osifo, and Secretary-General, N.A. Toro, following a National Administrative Council (NAC) meeting held in Abuja.
According to the congress, the proposed allowance will not provide sustainable relief amid rising costs of food, transportation, healthcare and other essentials. It disclosed that it has written to the Federal Government through the Office of the Secretary to the Government of the Federation (SGF) demanding an immediate salary review.
However, a cross section of federal civil servant who spoke with BusinessDay on conditions of anonymousity express satisfaction with the seventy thousand Naira transport allowance if it will be implememented as promised by the federal government.