Ogun State Governor Dapo Abiodun revealed his administration’s commitment to implementing the new minimum wage on Wednesday.
Speaking at a meeting with organized labour leaders at the Governor’s Office in Oke-Mosan, Abeokuta, Abiodun emphasized that the state’s 2025 budget proposal is projected to exceed one trillion Naira.
Governor Abiodun highlighted the successful execution of this year’s N703 billion budget, which has achieved an 80 per cent implementation rate by September. He assured the union leaders that Ogun State is on track to lead in the implementation of the new minimum wage, stating, “We are working diligently, and I am confident that, as always, Ogun State will not lag in adopting the new wage.”
Abiodun reiterated his administration’s commitment to efficiency, urging his team to avoid unnecessary pressure on the public while focusing on creative solutions to manage financial resources. “We need to plug financial leakages and enhance our revenue streams to afford the new minimum wage. By God’s grace, we will be among the first to implement it,” he said.
The governor also stressed the importance of continued collaboration with organized labour, which he credited for contributing to the state’s economic growth. He noted that the state’s budget has increased from less than N400 billion at the start of his tenure to the current N703 billion, with an 80 per cent execution rate.
Addressing the impact of the fuel subsidy removal, Abiodun discussed the complexities of the oil sector and the federal government’s role in economic restructuring under President Bola Tinubu. He outlined several measures taken by his administration to mitigate the effects on the public, including the transition to alternative energy sources.
“We have launched an energy transition program, converting our mass transit buses to CNG and introducing electric motorcycles and tricycles. We are also increasing the availability of alternative fuel sources and providing subsidized rice and CNG kits to reduce transportation costs,” Abiodun said.
The governor announced that the federal government would supply Ogun State with 20 CNG buses and that the state would contribute 100 CNG buses to transport unions. This initiative aims to cut transportation costs by 50-80% as more people switch to electric and CNG vehicles.
Abiodun attributed the current fuel scarcity to operational and financial issues, exacerbated by subsidy removal and the floating of the Naira. “Our energy transition efforts are key to reducing transportation costs and achieving sustainability,” he added.
He revealed that Ogun State has been designated as a hub for vehicle transition in the southwest as part of the Presidential CNG Initiative. Additionally, the state will establish farmers’ markets in three zones to provide affordable foodstuffs and set up a task force to monitor transport fare increases.
Comrade Hameed Benco, Ogun State Chairman of the Nigeria Labour Congress, commended the governor for involving organized labour in decision-making and emphasized the need for price regulation to prevent exploitation by market traders. Comrade Akeem Lasisi, Chairman of the Trade Union Congress, suggested allowing workers to work from home until conditions improve, while Comrade Isa Olude, Chairman of the Joint Negotiation Committee, called for relief measures for workers and pensioners.
