How fuel hike, cost of living affecting workers’ productivity

long queue fuel scarcity

The common complaint of Nigerians is the rising cost of living, especially the hike in the price of premium motor spirit (PMS), popularly known as fuel. With over 100 per cent increase in transportation costs, many have expressed fears that the productivity of workers may be affected; PAUL OKAH reports.

It is no longer news that Nigerians are passing through trying times due to the rising cost of living, occasioned by fuel subsidy removal on May 29, last year.

While Nigerians were still trying to adjust to life, the Nigerian National Petroleum Commission Limited (NNPCL) recently increased the price of fuel from N617 to N897 per liter, thereby leading to independent marketers selling between N987 and N1, 050 and so on.

More discouraging is the fact that many filling stations hardly have supplies, leading to black market operators smiling to the bank, after selling at N1, 200 or N1, 500 per litre.

More affected are workers, especially civil servants, many of whom do not have cars and have to pay more than double of the usual transportation fare to get to their places of work.

Furthermore, workers spend hours and productive time queuing for fuel and then go back home in frustration when they don’t get a drop; instead of going to work.

NBS’ statistics

In its Petrol Price Watch for August 2024 released in Abuja on Sunday, the National Bureau of Statistics (NBS) said the average retail price of a litre of petrol increased from N626.70 in August 2023 to N830.46 in August 2024.

On state profiles analysis, the report said Benue paid the highest average retail price of N941.24 per litre, followed by Bauchi and Gombe states at N935.71 and N925.00, respectively.

The NBS also stated in its Diesel Price Watch Report for August 2024 that the average retail price was N1, 406.05 per litre, adding that the August 2024 price of N1, 406.05 per litre amounted to a 64.58 per cent increase over the N854.32 per litre paid in August 2023.

On state profile analysis, the report said the highest average price per litre of diesel in August was recorded in Kaduna state at N1, 979.23, followed by Bauchi at N1, 927.34 and Taraba at N1, 638.14.

Civil servants’ pains

Investigations by Blueprint Weekend revealed that many civil servants now find excuses to avoid going to work throughout the week by either feigning sickness or reporting to work twice or thrice a week.

Speaking with this reporter, a civil servant at the Ministry of Agriculture and Rural Development, who gave her name simply as Fatima, said she now goes to work twice a week and works from home other days as she can’t afford exorbitant transportation costs.

She said, “We are in trouble in this country. No one is finding it easy, whether you claim to be a big man or average man. Nowadays, I don’t even bother myself to go to work everyday because I don’t have the money to spend on transportation. I will be spending more than half my salary on transportation alone.

“So, if there’s no serious work for me to do in the office, I prefer to stay at home. If it comes to the worst, I will tell my Oga at the office that I am sick. I can’t kill myself on top the situation in the country. If you come to the office and don’t see me, you can always come back the next day if you need serious attention.

“Remember that the New Minimum Wage has not even been paid, so I am still receiving my old salary. If I will be paying more than twice of what I usually spend on transportation, it means I won’t be able to save anything at the end of the month. So, I prefer to organize myself and work from home whenever possible and save transportation costs.

Filling station owners, black market operators

Also speaking with Blueprint Weekend, an accountant, who gave his name as Peter Olufemi, said black market operators and filling station owners now connive to add misery to the lives of Nigerians.

He said the scarcity of fuel leads to patronage of black market operators, whom he accused of selling adulterated fuel that damages the fuel pump of cars and plunging motorists into grief.

“I don’t know what these black market guys mix in the fuel they sell to drivers. I am sincerely sure they mix the fuel with other chemicals that damage people’s cars. I have had many unpleasant experiences with them. 

“Many times, while traveling, I am often forced to buy fuel from the black market. However, I have to buy extra fuel pumps. I bought two or three fuel pumps before I could travel to and fro. That’s additional expenses because, instead of N2, 000 in normal shops, I buy fuel pumps on the way for N5, 000. It’s not funny,” he said.

Continuing, he said, “Nowadays, if I notice that my fuel is now on reserve and there’s no way of getting fuel, I just park the vehicle and use public transport instead of patronizing black market operators. I have had enough. If the fuel is available in filling stations, we will be buying. But they will have fuel and tell you they don’t have it because they prefer selling to black market operators at exorbitant prices.

“Just last week, I went to buy fuel at a filling station in Kubwa. Just when it was my turn, I was told they had run out of fuel. Can you imagine? That’s immediately after the guy before me was served.

“I had no option than to leave the station. But when black market operators come, the attendants will sell to them and car owners will use the opportunity to buy too. But once they have finished selling to black market operators, they will announce they have run out of supply. It’s not funny. This country is in trouble if things continue this way.”

Impact on workers 

In a chat with this reporter, a public affairs analyst, Nathaniel Agu, said working from home is not feasible for many workers as even epileptic power supply is not helping matters for this relying on light to work.

He said, “The fuel hike in Nigeria is significantly impacting productivity of workers, particularly those who commute to work. With transportation costs skyrocketing, onsite workers are facing reduced productivity and lower job satisfaction. The situation is further complicated by Nigeria’s unreliable electricity distribution, forcing remote workers to rely on fuel-powered generators, which increases their expenses.

“With fuel prices rising, workers are struggling to make ends meet. Higher fuel costs are eating into workers’ disposable income, making it difficult for them to afford basic necessities. The fuel hike is hurting economic growth, reducing household income, and making firms less competitive.” 

He said further, “Remote workers relying on generators for electricity are facing increased expenses, reducing their ability to work effectively. This leads to decreased productivity because unreliable electricity distribution and high fuel costs are definitely hindering economic growth and affecting remote workers’ productivity.

“The economic implication is basically on inflation. The fuel hike is expected to lead to higher prices for goods and services, further reducing workers’ purchasing power. The fuel subsidy removal may lead to reduced economic growth, at least in the short term.

“Overall, the fuel hike is having a ripple effect on Nigeria’s workforce, impacting productivity, job satisfaction and overall economic welfare.”

Students worse off

Speaking with our reporter, a secondary school teacher in Abakaliki, Ebonyi State, Mrs Chinyere Odinma, said she was recently transferred from a school in her neighborhood to another school far away and hence won’t be going to school regularly.

“I teach English and Literature to students in SS1, SS2 and SS3 classes. I have been enjoying teaching the subjects because my school was just a walk from my house. I usually attend school from Monday to Friday. However, I was recently transferred to another school, where I will need to be paying N1,500 as transportation to and fro.

“The implication is that I won’t be going to school everyday. My salary won’t allow that. The sudden transfer didn’t come with any allowance or additional salary. Therefore, I will be going to school twice a week. Subsequently, I will be attending once a week. I will be selecting classes to teach every week because I won’t teach all like before when I went to school everyday.

“That’s the only way to navigate the situation because I won’t meet up with other needs if I go to school everyday. Though the state governor has shown signs of being more interested in the welfare of civil servants than his predecessor, our salary cannot sustain us in the face of the rising cost of living. Honestly, the hike in fuel price affects productivity because transportation fare is very high for us to go to school everyday,” she said.

Adeleke reduces workdays for Osun civil servants

In a bid to reduce the cost of transportation for civil servants in Osun state, Governor Ademola Adeleke, Tuesday, reduced the number of working days for civil servants in the state and extended payment of palliatives for public servants for two months.”

According to a statement signed by his spokesperson, Olawale Rasheed, civil servants in grades level 01-10 will now be working for three days, while those in grade levels 12-17 will be working for four days.

However, he excluded workers on essential duties, including medical personnel, security operatives, political office holders and accounting officers.