Ogun State Governor Dapo Abiodun, on Wednesday, September 11, announced significant progress on the state’s financial and labor initiatives. Speaking from the Governor’s Office in Oke-Mosan, Abeokuta, Abiodun revealed that the 2024 state budget, amounting to N703 billion, has already seen an impressive 80 percent execution by September. This achievement sets a promising trajectory for the state’s 2025 budget, which is projected to reach one trillion Naira.
During his address, Abiodun also highlighted his administration’s commitment to implementing the new minimum wage. He acknowledged the crucial role that workers have played in the state’s rapid economic growth and reassured organized labor leaders that Ogun State is dedicated to staying ahead in adopting the new wage standards.
The governor stated: “Regarding the new minimum wage, everyone is working diligently, and I am confident that, as always, we will not be second in implementing it.
“I have instructed my team to roll up their sleeves and work efficiently without placing undue pressure on the people. We must be creative, plug financial leakages, and increase our revenue so that we can comfortably afford the new minimum wage. By the grace of God, we will not be second in its implementation.”
Governor Abiodun has called for sustained collaboration with organized labor, underscoring their essential role in Ogun State’s economic achievements. Reflecting on the state’s fiscal progress, he noted that the budget has surged from below N400 billion at the start of his tenure to N703 billion, with an 80 percent execution rate.
Looking ahead, Abiodun outlined plans for a one trillion Naira budget for the coming year. He explained that the meeting with labor leaders was part of broader efforts to involve public transportation stakeholders in tackling issues related to the removal of the fuel subsidy.
Abiodun elaborated on the complexities of the oil sector and attributed current economic conditions to the federal government’s strategy under President Bola Tinubu, aimed at repositioning the economy for long-term stability. He assured that his administration is actively implementing various measures to ease the public’s burden during this transitional period.
The governor stated, “We have commenced an energy transition programme by converting our mass transit buses to CNG and launching electric motorcycles and tricycles.
“On Monday, we met with transport unions. They requested that we increase the availability of alternative fuel sources in the state and expand the programme due to the success it has already seen.
“The Federal Government is making rice available for us to sell at highly subsidised prices to everyone. The government is also providing us with 500 CNG kits to convert commercial vehicles, which will help reduce transportation costs.”
Governor Abiodun announced that the federal government will initially provide 20 CNG buses to Ogun State. Additionally, the state government plans to supply 100 more CNG buses to transport unions. He expressed confidence that these measures could lead to a reduction in transportation costs by 50-80%, as more residents switch to electric motorcycles and CNG-powered vehicles.
He attributed the current fuel scarcity to operational and financial challenges and explained that the increase in fuel prices was due to the removal of subsidies and the floating of the Naira.
“With the measures we’ve put in place, and as we transition from reliance on petrol to CNG and electric vehicles, you will begin to see a reduction in transportation costs, which is the root of the problem.
“Our commitment to energy transition is total. It is the only path to sustainability. Other countries have done this before,” he said.
Governor Abiodun announced the launch of the Presidential CNG Initiative, a collaborative program designed to promote the adoption of CNG technology across Nigeria. Ogun State has been chosen as the central hub for this transition in the southwest, thanks to its expertise and leadership in the field.
In addition, the governor revealed plans to establish farmers’ markets in three regions of the state to provide affordable food options to residents. A new task force has been created to address concerns over rising transport fares, consisting of transport union leaders, law enforcement officials, and labor representatives, who will oversee and regulate fare increases.
Comrade Hameed Benco, Chairman of the Nigeria Labour Congress in Ogun State, expressed appreciation to the governor for involving organized labor in decision-making processes. He emphasized the need for strict price controls, noting that market traders are exploiting the current economic difficulties.
Benco also called for special transportation solutions to support workers and students during these challenging times. Comrade Akeem Lasisi, Chairman of the Trade Union Congress in Ogun State, suggested that remote working arrangements be considered for employees until conditions improve. Similarly, Comrade Isa Olude, Chairman of the Joint Negotiation Committee, urged the government to implement relief measures for workers and pensioners to ease the economic burden.
