R
JOBS THE NATION
Website:- http://www.thenationonlineng.com
THE NATION MONDAY, OCTOBER 10, 2011
15
• NNPC building
Fuel subsidy: Job losses imminent There is panic among workers. The government is poised to remove fuel subsidy. To the Nigeria Labour Congress (NLC), this means more factory closures, relocation of more industries to other business-friendly countries. Other stakeholders share the congress’view. DUPE OLAOYE-OSINKOLU speaks with some of them.
T
HE relocation of Dunlop Tyres Nigeria Plc, Michelin Tyres and the collapse of Enpee Industries and many other textile mills because of the high cost of production following epileptic power supply claimed thousands of jobs. That is probably why workers are jittery over the planned removal of fuel subsidy which takes effect from January, next year, according to the government. The workers’ fear is premised on factory closures and job losses. Deputy President of the NLC Comrade Promise Adewusi said the removal means that small-scale businesses would be wiped out, and the remaining industrial concerns would further relocate to other countries. Not only that, the informal sector, ac-
cording to him, will also suffer as the cost of transporting food from the hinterland will further escalate in the face of deplorable roads, worsening the prevailing food and job insecurity. “This is the highest form of haram, the worst manifestation of economic rascality. It is unfortunate that the government has finally decided to declare openly a war of poverty on the Nigerian people with its anti-people policy of increasing their misery by increasing fuel price,” he said. Identifying with the workers, human rights lawyer Mr Femi Falana said the subsidy removal would cost many their jobs. He wondered why the government has deliberately refused to repair the refineries or build new ones, in order to provide jobs for Nigerians as well as generating foreign exchange.
“The late General Sani Abacha built a refinery in Sierra Leone. It was acquired and sold at a give-away price by the Obasanjo administration. The former president gave licences to some traders to build refineries. They kept the licences and decided to be importing petrol and diesel. NLC Vice-President Comrade Isa Aremu said the policy would not only claim jobs, but also undermine the new minimum wage, which President Jonathan has, commendably, put in place. He asked the president not to short-change the workers and masses since subsidy removal was not part of his campaign promises. Carrying it out, he said, will amount to a violation of the people’s mandate. Adewale Alaba, a job seeker, said he was a former staff member of Dunlop Nigeria Plc. He said his wife also lost her job at Enpee
Textiles Mill when the firm went down with about 2,500 jobs. His fear now is that fuel subsidy removal will compound his family’s problem as prices of goods will sky-rocket, possibly forcing his family members to suffer. “President Jonathan is talking of transformation agenda. You can’t transform if you don’t have a new transformed idea.” Director-General of the Nigeria Employers Consultative Association (NECA) did not rule out the possibility of job losses as he said subsidy removal would affect businesses in terms of cost of production and prices of goods would also rise. He, therefore, called for privatisation • Continued on page 16