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Reading: FG, Labour Unions Reach Agreement on Fuel Subsidy Dispute
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Economy

FG, Labour Unions Reach Agreement on Fuel Subsidy Dispute

In a bid to address the ongoing dispute arising from the removal of the fuel subsidy on Premium Motor Spirit (PMS), the Federal Government o...

News Agency of Nigeria
News Agency of Nigeria - Agency Reporter October 02, 2023
Updated October 2, 2023 at 9:25 AM
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FG, Labour Unions Reach Agreement on Fuel Subsidy Dispute
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FG, Labour Unions Reach Agreement on Fuel Subsidy Dispute
In a bid to address the ongoing dispute arising from the removal of the fuel subsidy on Premium Motor Spirit (PMS), the Federal Government of Nigeria held a crucial meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) on Sunday, October 1, 2023. 

The meeting, chaired by the Chief of Staff to the President, Femi Gbajabiamila, aimed to find a resolution to the concerns raised by labour unions and the general public regarding subsidy removal.

During the discussions, several important points were noted, signifying progress toward resolving the dispute:

  • Provisional Wage Award: The Federal Government announced a provisional wage award of N35,000 for all treasury-paid federal government workers for a period of six months. This decision followed further consultations with President Bola Tinubu.
  • Compressed Natural Gas (CNG) Buses: The government committed to expediting the provision of Compressed Natural Gas (CNG) buses to alleviate the transportation difficulties that have arisen due to the removal of the PMS subsidy.
  • Support for Micro and Small-Scale Enterprises: The Federal Government pledged to provide funds to support micro and small-scale enterprises, aiming to boost economic growth and stability.
  • VAT Waiver on Diesel: In a significant move, the government announced the waiver of Value Added Tax (VAT) on diesel for the next six months. This measure is expected to have a positive impact on various sectors that rely on diesel for power generation and transportation.
  • Direct Cash Transfers: The government also committed to initiating a program in which N75,000 would be paid to 15 million households at N25,000 per month for a three-month period, from October to December 2023.

While these developments signify progress in addressing the concerns related to the fuel subsidy removal, several important highlights emerged from the meeting:

  • Strike Action: The Federal Government urged labour unions not to proceed with their planned strike action, emphasising that the issues under dispute could only be resolved through dialogue while workers are at work.
  • Higher Wage Award: Labor unions presented a case for a higher wage award, indicating their continued advocacy for improved conditions for workers.
  • Implementation Details: A sub-committee is to be constituted to work out the implementation details of all items related to government interventions aimed at cushioning the effects of the fuel subsidy removal.
  • Lagos State Transport Unions: The lingering matter of the Road Transport Employees Association of Nigeria (RTEAN) and the National Union of Road Transport Workers (NURTW) in Lagos State was highlighted as needing urgent attention.
  • Further Consultations: NLC and TUC agreed to consider the offers made by the Federal Government with a view to potentially suspending the planned strike action. This would allow for additional consultations on the implementation of the resolutions.

The meeting saw the virtual participation of Governor Abdulrazak Abdulrahman of Kwara State, who is also the Chairman of the Nigeria Governors Forum (NGF), and Governor Dapo Abiodun of Ogun State. 

In attendance were several government ministers, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Minister of Information and National Orientation, Mohammed Idris; the Minister of Labour and Employment, Simon Lalong; the Minister of State for Labour, Nkeiruka Onyejeocha; the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu; the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu; the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite; the Head of Service of the Federation, Dr. Folasade Yemi-Esan; and the National Security Adviser (NSA), Mallam Nuhu Ribadu.

The labor delegation was led by NLC President, Joe Ajaero, and included Dr Tommy Etim Okon, Deputy President of TUC, NLC General Secretary, Emma Ugboaja, and TUC General Secretary, Nuhu Toro, among others.

Tags: Economy, Nigeria

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