Subsidy Removal Has Increased Cost Of Living – Oshiomhole

The elimination of subsidies, according to the former Nigeria Labour Congress (NLC) leader, has abruptly increased living expenses.

The union steadfastly maintained that until a legitimate team had been assembled, it would not engage in any conversation with government representatives.

However, representatives from the Trade Union Congress (TUC) were present for the meeting, which was a follow-up to last week's impasse-filled negotiations with the NLC in the Presidential Villa in Abuja.

Speaking on the debate on Sunday Politics on Channels Television, Oshiomhole conceded that the demands of Nigerian workers had a lot of merit.

He claims that in order to lower the cost of transportation, the unions want the minimum wage raised as well as government investment in transportation.

"The Trade Union Congress came up with a list of specific demands which they will want the government to address. I believe that a lot of those demands are doable, are viable and they make a lot of sense.

“The government in return agreed to look at this comprehensively and revert back on Tuesday with a view to finding a common solution,” he said.

The former Edo State governor assured that the current administration is prepared to raise the minimum wage, but underlined that it must be done in accordance with the funding that the government has available.

He said, “When you withdraw subsidy, you try to make some savings…the fact of that saving means the cost of PMS is going to go up and therefore those who operate commercial vehicles or own private vehicles will have to pay more. Passengers will have to pay more to return from work, farmers will have to pay more to go to the market to sell their farm produce and also pay more to return back home.

“In a sense, there is no question that removing the subsidy means some level of increase in the cost of living beyond the cost of transportation. It will cascade to every aspect of life.

“Labour is opposed to the removal of subsidies because of the consequential increase in the cost of living. And now that you have done it, then you have to deal with the other side of it which is adjusting my wages in a manner that will enable me to cope with the increase in the cost of living so that overall, I protect my living standard. I think that is very legitimate.

“The business of labour is to protect and even improve the living standard.”

Oshiomhole asserted that the federal government would no longer enter into agreements without carrying them out and noted the need for negotiation.