The Minister of State for Labour and Employment, Festus Keyamo has disclosed the harmful effects of subsidy payments on the economy.
Keyamo spoke on Monday during his speech at the opening ceremony of the 17th NLC Harmattan School in Ilorin, Kwara State.
A number of labour leaders were also in attendance at the event.
According to the Minister, the government presently pays N200 billion monthly on subsidy which he said was not sustainable and good for the economy.
He said, “The issue of subsidy removal is an economic necessity or the political problem of all governments. It is that political problem we want to address now. NLC sees the economic problem and economic necessity but at the same time, they have a mandate to ensure that workers’ welfare is well protected and taken care of.
“There will be a convergence somewhere but we are prepared to revive all the clashes we have with the labour unions to ensure that we make amicable resolutions.
“This government nothing is cast in stone government may have made a proposal but we are going to sit with the labour unions for government to make that kind of proposal that means that government knows that this will bring some kind of economic hardship or ripple effect on the masses but by the time we sit with the labour unions and they think that we should tweak it a bit, or to make it in any way to ensure we accommodate the interest if the workers, the government will be prepared to listen to it.
“At any point in time when labour sneezes we catch cold son, there is no time that when they snap their fingers we don’t quickly call them to the table to talk about some of these issues.
“This issue of removal of subsidy may not lead to only increase in petroleum products it may lead to a reduction. For example, if the price of crude falls now I can assure you we can buy petroleum products for as low as N120 per litre depending on how it falls. Remember immediately after COVID the price crashed to N123 per litre. “