The Ogun State Governor, Dapo Abiodun, on Wednesday, announced that his administration is working towards implementing the new minimum wage.
Abiodun also hinted that with this year’s N703bn state budget achieving 80 per cent execution by September, the state’s 2025 budget proposal is on track to reach one trillion Naira.
The governor made this disclosure during a meeting with the leadership of organised labour at the Governor’s Office, Oke-Mosan, Abeokuta.
Abiodun acknowledged the crucial role that workers have played in the state’s rapid economic growth.
He assured the union leaders that Ogun State would not lag in implementing the new minimum wage.
The governor stated: “Regarding the new minimum wage, everyone is working diligently, and I am confident that, as always, we will not be second in implementing it.
“I have instructed my team to roll up their sleeves and work efficiently without placing undue pressure on the people. We must be creative, plug financial leakages, and increase our revenue so that we can comfortably afford the new minimum wage. By the grace of God, we will not be second in its implementation.”
He urged continued partnership from organised labour, noting that their cooperation has been instrumental in the state’s economic prosperity. He highlighted the budget increase from less than N400 billion at the start of his administration to the current N703 billion, which has performed at 80per cent.
The governor added that the state is projecting a trillion Naira budget for next year.
Abiodun said the meeting was part of efforts to engage stakeholders involved in public transportation to find solutions to the challenges arising from the removal of the fuel subsidy.
The governor explained the complexities of the oil sector, acknowledging that the current realities are the result of the federal government’s decision, led by President Bola Tinubu, to reposition the nation’s economy for sustainability.
He said his administration had implemented several measures to cushion the effects on the public.
The governor stated, “We have commenced an energy transition programme by converting our mass transit buses to CNG and launching electric motorcycles and tricycles.
“On Monday, we met with transport unions. They requested that we increase the availability of alternative fuel sources in the state and expand the programme due to the success it has already seen.
“The Federal Government is making rice available for us to sell at highly subsidised prices to everyone. The government is also providing us with 500 CNG kits to convert commercial vehicles, which will help reduce transportation costs.”
He added that the federal government would initially send 20 CNG buses to the state, while the state government would provide 100 CNG buses to transport unions, with the expectation that transport costs would decrease by 50-80% as more people adopt electric motorcycles and CNG vehicles.
Abiodun attributed the current fuel scarcity to operational and financial challenges, while the increase in fuel prices was due to subsidy removal and the floating of the Naira.
“With the measures we’ve put in place, and as we transition from reliance on petrol to CNG and electric vehicles, you will begin to see a reduction in transportation costs, which is the root of the problem.
“Our commitment to energy transition is total. It is the only path to sustainability. Other countries have done this before,” he said.
He revealed that a Presidential CNG Initiative, involving experts from various sectors, had been established, and Ogun State had been chosen as the hub for vehicle transition in the southwest due to its expertise in the project.
Abiodun also announced that farmers’ markets would be established in three zones across the state, providing foodstuffs at affordable prices. A task force, comprising transport union executives and law enforcement agencies, has been set up to monitor arbitrary hikes in transport fares, with labour representation included.
In his remarks, the Ogun State Chairman of the Nigeria Labour Congress, Comrade Hameed Benco, appreciated the governor for always involving organised labour in decision-making. He emphasised the need to enforce price regulations, as market traders have been exploiting the current economic situation.
Benco also called for a special arrangement to transport workers and students to their offices and schools, saying this would help alleviate the hardship.
Additionally, the Ogun State Chairman of the Trade Union Congress, Comrade Akeem Lasisi, suggested that workers be allowed to work from home until the situation improves, while the Chairman of the Joint Negotiation Committee, Comrade Isa Olude, urged the government to provide relief measures for workers and pensioners.
