The Pacesetter Frontier Magazine

Tag: Petrol Prices

  • NLC, TUC Give FG Tuesday Deadline to Address Wage, Fuel Price Demands

    NLC, TUC Give FG Tuesday Deadline to Address Wage, Fuel Price Demands

    Precious Nwonu, Enugu

    The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have given the Federal Government until Tuesday, October 27, to make progress on workers’ demands, warning that nationwide industrial action could follow if the issues remain unresolved.

    The warning came after a meeting between organised labour and government representatives ended without an agreement in Abuja on Thursday.

    In a joint statement signed by the NLC General Secretary, Benson Upah, and the TUC Secretary-General, Nuhu Toro, the unions said the government delegation lacked the mandate required to negotiate substantive solutions to the issues raised.

    “No concrete commitments were secured, and the outstanding issues remain unresolved,” the unions said.

    The meeting, held at the Federal Ministry of Labour, focused on labour’s demand for a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of outstanding disputes involving health workers and other public servants.

    According to the statement, the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately and invite relevant ministers, as well as heads of departments and agencies, to participate in the negotiations.

    Organised labour said it remained open to dialogue but would not tolerate further delays in addressing workers’ concerns.

    “We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” the statement added.

    The unions also directed their affiliates and state councils, alongside civil society allies, to remain prepared and begin mobilisation in anticipation of possible industrial action.

    However, they urged workers and members of the public to remain calm while expressing hope that the next meeting would produce concrete responses from the government.

    The dispute comes amid continuing concerns over the cost of living, fuel prices and the purchasing power of Nigerian workers following recent economic reforms.

    The National Minimum Wage Act, 2024, raised the national minimum wage from N30,000 to N70,000 after negotiations involving the Federal Government and organised labour. The unions are now seeking further engagement on wages in response to prevailing economic pressures.

    Labour is also demanding the implementation of agreed tax relief measures and a resolution of outstanding disputes involving the Joint Health Sector Unions (JOHESU) and the Joint Public Service Negotiating Council (JPSNC).

    The JPSNC’s outstanding issues include peculiar allowances, wage awards and hazard allowances, while the JOHESU dispute concerns unresolved terms of settlement affecting health-sector workers.

    The outcome of Tuesday’s meeting is expected to determine the unions’ next steps, with any decision on industrial action to be taken by their respective decision-making bodies.

  • FG Insists NNPC Petrol Discount Will Not Use Public Funds

    FG Insists NNPC Petrol Discount Will Not Use Public Funds

    Precious Nwonu, Enugu

    The Federal Government has maintained that the petrol discount introduced by the Nigerian National Petroleum Company Limited (NNPC) will not be financed with public funds, describing the initiative as a temporary reduction in the company’s retail profit margin rather than a return to fuel subsidy.

    The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, explained the government’s position in a statement issued by the Federal Ministry of Finance in Abuja on Friday, titled, “The NNPC Retail Discount Is Not a Subsidy: No Public Money Is Involved.”

    The clarification followed an announcement by the Presidency that NNPC Retail Limited would temporarily forgo its profit margin on petrol and sell the product at cost to cushion households against fluctuations in global oil prices.

    The Presidency, in a statement signed by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, said the initiative had the backing of President Bola Tinubu and was not a reinstatement of the subsidy removed in 2023.

    Oyedele said the discount and fuel subsidy were fundamentally different, explaining that the former involved a retailer reducing its earnings to offer customers lower prices, while the latter required the government to pay part of the cost using public revenue.

    “Some commentators have described the discount as a return of fuel subsidy. That is not correct,” the minister said.

    He stressed that the financial burden of the discount rested solely on NNPC Retail, adding that neither the federal budget nor the Federation Account would be used to fund the price reduction.

    According to him, NNPC Retail purchases petrol from the Dangote Refinery and other suppliers at prevailing market prices and on commercial terms before applying its retail margin. Under the new arrangement, the company reduces or temporarily removes that margin to lower pump prices.

    The minister warned that selling crude oil below market prices could amount to a subsidy if the resulting revenue shortfall were covered with public funds.

    He explained that NNPC Retail, a wholly owned subsidiary of NNPC Limited, had operated for more than two decades as a petroleum marketing and retail company, with responsibilities that include improving the availability and affordability of refined petroleum products nationwide.

    Oyedele argued that the temporary reduction in profit per litre would not necessarily translate into lower overall earnings for the company, as increased sales volumes and stronger customer loyalty could compensate for the reduced margin.

    He said the arrangement could ultimately benefit both consumers and the government through higher sales and potentially increased dividends paid to the Federation.

    The minister also dismissed concerns that the discount could encourage petrol smuggling into neighbouring countries, noting that retail margins accounted for less than five per cent of the pump price.

    He said the discount would not significantly widen the price difference between Nigeria and neighbouring countries, where petrol prices were reportedly 20 to 40 per cent higher.

    According to Oyedele, the limited reduction in retail margins would therefore not create a new incentive for cross-border smuggling comparable to the distortions associated with previous subsidy arrangements.

    He listed other government interventions intended to reduce the impact of fuel costs, including expanding compressed natural gas adoption for transportation, waiving taxes and duties on petrol, and removing illegal charges that contribute to higher transportation costs.

    Oyedele said the measures were designed to provide economic relief without returning the country to a subsidy system the government considers financially unsustainable.

  • NLC Gives FG Two Weeks To Begin Minimum Wage Talks, Reduce Petrol Prices

    NLC Gives FG Two Weeks To Begin Minimum Wage Talks, Reduce Petrol Prices

    Precious Nwonu, Enugu

    The Nigeria Labour Congress has given the Federal Government a two-week ultimatum to begin negotiations for a new national minimum wage and take measures to reduce petrol prices, warning that failure to meet its demands could lead to fresh industrial action.

    The ultimatum, which commenced on October 9, was issued at a joint meeting of the union’s National Executive Council and Central Working Committee in Abuja.

    In a communiqué signed by NLC President Joe Ajaero, the congress demanded that negotiations for a new minimum wage begin before the end of October, arguing that the current wage had lost its purchasing power amid the depreciation of the naira and rising living costs.

    The union said workers were struggling to afford basic necessities, including food, housing, healthcare, transportation and education.

    “The current national minimum wage has been rendered worthless by the relentless depreciation of the naira and the astronomical rise in the cost of living,” the communiqué stated.

    The NLC called for a living wage that reflects the cost of living and protects the dignity of Nigerian workers.

    It also urged the government to work with relevant agencies to reduce petrol prices to the level recorded when the current national minimum wage was enacted in 2024.

    According to the congress, rising petrol prices have contributed to higher transportation costs and increases in the prices of food and other essential commodities.

    Beyond the wage and petrol price demands, the labour union directed the Federal Government to implement the terms of settlement reached with the Joint Health Sector Unions and Assembly of Healthcare Professionals on February 5, 2026.

    It also called for the resolution of outstanding demands arising from the agreement and the implementation of demands presented by the Joint Public Sector Negotiating Council.

    Meanwhile, the Association of Senior Staff of Banks, Insurance and Financial Institutions has urged the Federal Government to introduce measures to ease the economic pressure on workers.

    The association called for interventions to address rising costs of food, transportation, healthcare, housing and education, alongside improved security.

    Its Acting National President, Fanimokun Adesina, made the call on Wednesday during the commemoration of the 2026 World Day for Decent Work at the ASSBIFI Events Centre in Alausa, Ikeja, Lagos.

    Adesina criticised the inability of the current minimum wage to adequately cover workers’ basic needs, insisting that employees deserved to work and live with dignity.

    “A situation whereby the national minimum wage cannot buy a bag of rice or provide three square meals for an average Nigerian family of four for two weeks is nothing but slavery,” he said.

    “Workers are not slaves; we must be treated with the dignity that decent work reflects.”

    Adesina described the theme of this year’s event, *‘Young Workers Organising for the Future’*, as timely, noting that trade unions needed to address succession challenges and prepare for changes in the workplace.

    He said artificial intelligence, digitalisation, automation, platform-based employment and algorithmic management were already reshaping the future of work.

    The ASSBIFI leader also urged banks, insurance companies and other employers to respect workers’ freedom of association and allow them to join trade unions without intimidation, threats or victimisation.

    He cited International Labour Organisation Conventions 87 and 98, which address freedom of association and collective bargaining, and called for the ratification of Convention 158 on termination of employment.