NLC Urges FG to Roll Out Palliatives as Petrol Price Hits ₦1,460/Litre
By Nafiu Muhammad Lema
The Nigeria Labour Congress (NLC) has called on the Federal Government to urgently introduce measures to cushion Nigerians from the impact of the latest increase in petrol prices, including wage awards for workers and the sale of crude oil to local refineries in naira.
The call was made in a statement issued on Wednesday and signed by NLC President, Joe Ajaero, who said petrol was selling for about ₦1,430 per litre in major cities, with prices reportedly reaching ₦1,460 or higher in some locations.
The labour union warned that the rising cost of petrol would further increase the financial pressure on households and businesses, particularly through higher transportation costs.
According to the NLC, increases in transport fares have wider consequences, often driving up the prices of food, rent, school fees and other essential goods and services.
In the statement titled “Save the Situation Now,” the NLC said the latest price surge occurred despite indications that pressure on oil marketers to reduce pump prices following lower international crude prices was beginning to yield results.
The union attributed the latest development partly to renewed conflict in the Gulf, but argued that Nigeria, as a major oil-producing country, should have mechanisms to protect its citizens from international oil-market shocks.
“As a nation, and as a people endowed with enormous fossil resources, we are deserving of a certain level of protection or buffer against the gales from the Gulf, and indeed, other gales,” Ajaero said.
The NLC urged the Federal Government to introduce immediate interventions, including reasonable wage awards for workers, increased crude oil sales in naira to local refineries and expansion of national petroleum storage capacity.
It said such measures could reduce the pressure on Nigerians while also supporting job creation, economic activity and national energy security.
The labour body also maintained that government subsidies should not be completely ruled out during emergencies.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” Ajaero said.
The NLC further argued that the Federal Government had gained additional revenue from higher international crude oil prices, claiming that crude was currently trading about $35 to $40 above the benchmark used in the national budget.
It described the additional revenue as a potential windfall that could create fiscal room for emergency interventions to protect citizens from rising living costs.
The union also criticised reports that some domestic refineries were importing crude oil, saying such a development undermines efforts to build Nigeria’s local refining capacity.
“On a long-term basis, we are equally concerned that local refineries are importing crude. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity,” the statement said.
The latest petrol price increase comes amid Nigeria’s ongoing deregulation of the downstream petroleum sector following the removal of petrol subsidy in May 2023.
Under the deregulated regime, domestic petrol prices are more directly affected by international crude prices, exchange rates, logistics and other market conditions.
While the Federal Government has promoted increased domestic refining as part of its strategy to reduce dependence on imported petroleum products, fluctuations in global oil prices and other costs continue to affect pump prices and transportation expenses.
The NLC urged the government to act swiftly to prevent the latest fuel-price increase from worsening the cost-of-living crisis.
Ajaero said the Federal Government, which he noted was preparing for the coming elections, “cannot afford to stand and watch marketers inflict suffering on the citizenry in the name of deregulation.”
“Labour has an obligation to speak out or act accordingly,” he added.
