Subsidy Removal: Makinde Announces Economic Recovery Plans

Oyo State governor, ‘Seyi Makinde, on Saturday, announced the short-term plans of the administration to mitigate the effects of the fuel subsidy removal on residents of the state, saying that his administration will continue to put the interest of the people first.

The governor, who gave this indication in a state-wide broadcast, maintained that food security, transportation and the sectors are among the immediate areas being targeted by the government to alleviate the economic difficulties facing residents of the state.

This was as the governor directed civil servants to resume to their duty posts on Monday, as his government will pay the two months deductions owed the workers with their August salary, while it will also explore further options on dialogue.

He noted that the government remained open to parleying with labour to ensure that the rights of the workers of Oyo State are protected.

He encouraged the union leaders to return to the negotiating table to discuss any increases in salary or possible harmonisation of pension payments.

Governor Makinde had, earlier in June 2023, announced measures to cushion the hardship faced by the people following the removal of fuel subsidy, including increasing the number of Omituntun Buses on various routes in Ibadan, the state capital and reduction of fares for all residents, including senior citizens and students, who were to pay half prices.

The governor, on Saturday, however, stated that in line with his promise to do more, the administration has arrived at decisions, which will benefit a majority of the people in the state, while it continues to explore other measures.

He said: “I am addressing you today to share our short-term plans, which will play a huge role in alleviating the effects of the removal of fuel subsidies and the resultant economic difficulties being faced by our people. You will recall that on June 9, 2023, following the removal of fuel subsidy, we announced measures to be taken to cushion the effect of the removal.

“We gave directives that the number of Omituntun Buses on various routes in Ibadan should be increased and that commuters must pay a reduced fare on these buses. Additionally, our senior citizens and students should board the buses at half price. We have received feedback that this immediate action has benefited our people.

“We promised that more will be done. Our plan has always been to roll out sustainable actions in keeping with our promise of sustainable development under Omituntun 2.0. Having been in government for the first four years, we know it is easier to make promises than to keep them.

“After wide consultations, we have arrived at decisions that we believe will be of the most benefit to the good people of Oyo State. In reaching these decisions, we considered the importance of using these economic packages to stimulate our economy and bring about sustainable development.”

The governor, who maintained that the short-term plans tagged the Sustainable Actions for Economic Recovery (SAfER) will target the poorest of the poor and the vulnerable and ensure a softer landing for them, said the action plans would also ease the burden of transportation for all residents and the civil servants and also address the challenges of food security.

He stated that under the SAfEr package, agropreneurs trained under the Youth Entrepreneurship in Agribusiness Project (YEAP), who have established agribusinesses will receive enterprise support of five hundred million naira (N500,000,000), while small businesses will benefit from low-interest-rate loans with the provision of five hundred million naira (N500,000,000) facility.

He added that the state government is already updating its social register to capture 200,000 of the poorest of the poor, who will be provided with food relief packages and that 100,000 health insurance packages will be rolled out for the vulnerable in the society.

According to the governor, the services of the Omituntun Mass Transit Buses will be extended to cover inter-city routes across all the five zones of the state and that more Buses will be provided for the transportation of civil servants in the state.

“Let me now share details of our SAfER package. Following the pattern of our actions during the COVID-19 pandemic,we are updating our social register to include two hundred thousand (200,000) of the poorest of the poor. These will be provided with immediate food relief packages. As usual, we will ensure transparency in the registration process so that only those who qualify will get this immediate relief.

saying: “We have paid all civil servants’ salaries and pensions on or before the 25th of every month without fail. And since January 2020, we have paid the minimum wage and consequential adjustments to all cadres of civil servants every month without fail.

“Presently, the civil servants’ wage bill stands at N7.2 billion monthly. We have continued to pay this despite having a state revenue of just below N10 billion monthly. It is, therefore, clear to understand why any increase in salaries or pensions may not be possible at this time.

He, however, announced that apart from the payment of the cooperatives deduction to be effected and paid with August salaries, the government will increase the number of buses made available for civil servants to commute to and from work from 9 to 12, so that more routes are covered to lessen the transportation burden of workers.

He further stated that the government will pay the health insurance premium for all pensioners under the Oyo State Health Insurance Agency (OYSHIA) scheme and that any pensioner who already made payment will be refunded.

He equally stated that the government will resume the monthly payment of gratuities to pensioners so as to continue to clear the backlog of gratuity payments inherited by our administration.