Sunday 7 December 2014

The Effect of Fuel Subsidy on Nigerian Civil Servants: Christian Ethical Point of View



Ayodele Omojuwa
University of Lagos, Nigeria

Abstract

"The Petroleum Products Pricing Regulatory Agency wishes to inform all stakeholders of the commencement of the formal removal of the subsidy on Premium Motor Spirit, Petroleum products marketers are to note that no one will be paid a subsidy on PMS discharges after 1st January 2012," said the statement signed by PPPRA executive director Reginald Stanley. The tempo of activities within the polity became overtly charged immediately after the announcement of the removal of fuel subsidy on January 1, 2012 by the Petroleum Products Pricing and Regulatory Agency (PPPRA). This indeed, came as a shock to most Nigerians as they were not prepared for the sudden change. Labour and transport unions, human rights groups, market women, taxi drivers and lawyers' associations have been bitterly opposed to having the subsidy removed. That led to the announcement of a nationwide strike by the organized Labour, comprising the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC) starting from January 9. That strike successfully grounded economic activities around the country for one whole week, with Nigeria losing approximated N320 billion per day. From some state capitals came reports that governors, who earlier decided at the National Economic Council (NEC) to advise the Federal Government to remove fuel subsidy had started siding with the people and encouraging protests.” The Nigerian Governors Forum (NGF) had also earlier in 2011 announced it was incapable of paying the N18, 000 minimum wage if the government retained fuel subsidy. The strike lasted for a week, after which, it was called off. As a result of the problems enumerated above, this paper identified the effect of fuel subsidy removal on the welfare of civil servants in Lagos state. It also described and measured the effect the subsidy removal on their level of poverty and the extent at which their standard of living has been affected. All these, altogether highlighted and assessed the welfare improvement or decline of public servants. The productivity level of civil servants after the subsidy removal also, was considered alongside their motivation or commitment to work. 

Key words: Subsidy, Stakeholder, Fuel, Marketers, Petroleum, Strike, Labour-Congress.

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