By Merit Ibe
Small business owners have again called for palliative measures to mitigate the pains that they are going through as a result of the fuel subsidy removal, which has led to skyrocketing cost of production and living.
Chairman, Lagos chapter of the Nigerian Association of Small Scale Industrialists (NASSI), Gertrude Akhimien, noted that apart from the salary increase being demanded by Nigerian labour unions, government should as part of palliative measures, provide commuter buses, reduce the cost of transportation; create policies to crash down food prices and make them available; lower electricity tariff and make it available; reduce fuel cost, make funds available to small businesses, among others.
“Nigerians will want to see a drastic reduction in the prices of staple foods, like rice, beans, wheat, millet, tubers, maize, etc. Availability of electricity, low cost of fuel are also essential for businesses. We know that if the cost of production does not reduce, sales cost cannot come down. If food production cost can be reduced drastically, our purchase cost can also be reduced. Government needs to grow our manufacturing, MSMEs and production sectors across value chains to improve employment.”
Akhimien noted that the decision to remove subsidy in the first place was a painful one, “but government needed to have to cushioned the effects.
It’s a pity that government is yet to provide measures and high cost is killing businesses, workers and citizens.”
On the request for increase in minimum wage by Labour unions, she said it is a good idea and pleaded with government to listen to their plea.
“It has been pending for quite a while. I plead for a dialogue to resolve the issue.
“Government should listen to the unions and reach a compromise.
“Apart from the wage increase, I also suggest that government can consider other palliatives that can be given to workers and businesses.
If there is improvement in transportation, electricity, food supply and the business environment, Nigerians will not demand so much money.
If transport cost is high, there is no food, electricity and fuel costs are high, when there is no purchasing power, there must be agitations.
I’m sure people will be willing to take even lower wages if these things are in place.
“The NASSI boss also noted that the demand for the increase has to be balanced so that the private sector can buy into it too. “When the wage is too high, the private sector might not be able to meet up. So there has to be some kind of balancing act.”
For his part, Export Manager, Aarti Steel, Okhai Ehimigbai, viewed that the agitation for increase in salary will not help the situation, calling for quick strategies to curb inflation now.
Blaming our leaders, he said: “Our leaders are asking the poor to tighten their belt, while they are loosening theirs and we buy from the same market. Right now a paint bucket of tomatoes is going for N15,000 to N18,000. So how are we going to survive? It’s painful.
“The president created this problem. If on the day he removed subsidy, he had at least given 100% increase to the minimum wage, we wouldn’t have gotten to where we are today.
He queried: “Where is the savings from the subsidy removal. The roads are still bad,” noting that
Nigeria is bleeding. “Anything can happen anytime from now.”
He called on the government to act fast and save the situation.