FG Reaches Agreement with Labour Unions on Fuel Subsidy Dispute

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News360

In a significant development on Sunday, the Federal Government held a crucial meeting with the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) to address the ongoing dispute surrounding the removal of the subsidy on Premium Motor Spirit (PMS).

Malam Mohammed Idris, the Minister of Information and National Orientation in a statement at the end of the meeting in Abuja said key points were aknowleged.

He said  the Federal Government announced a provisional wage increment of N25,000 for all treasury-paid Federal Government workers over the next six months.

He said  a commitment was made to expedite the provision of Compressed Natural Gas (CNG) buses to alleviate the transportation challenges stemming from the removal of the PMS subsidy.

He also said that funds would be allocated for micro and small-scale enterprises., adding that VAT on diesel would be temporarily waived for a period of six months.

He said a significant social programme would begin, with N75,000 payments to 15 million households at N25,000 per month, spanning from October to December 2023.

Idris said in the aftermath of the discussion the following resolutions, dispute could only be effectively addressed when workers are actively engaged in their duties and not on strike.

He said the Labour Unions advocated for a higher wage award, with the Federal Government Team pledging to present this request to President Bola Tinubu for further consideration.

He said a sub-committee would be established to plan the implementation of all interventions aimed at mitigating the impact of fuel subsidy removal.

He said urgent resolution of the lingering issue involving the Road Transport Employees Association of Nigeria (RTEAN) and the National Union of Road Transport Workers (NURTW) in Lagos State, with virtual participation and commitment from Lagos State Governor, Babajide Sanwo-Olu were also discussed. 

The NLC and TUC are believed to carefully consider the offers made by the Federal Government, with the potential to suspend the planned strike, facilitating further consultations on the resolutions.

Some of the officials who participated in the meeting are: Gov. Abdulrazak Abdulrahman of Kwara State and Chairman of the Nigeria Governors Forum (NGF), along with Governor Dapo Abiodun of Ogun State. 

The meeting was chaired by the Chief of Staff to the President, Femi Gbajabiamila.

Other prominent figures in attendance included: the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Minister of Labour and Employment, Simon Lalong Minister of State, Labour, Nkeiruka Onyejeocha. 

The Head of Service of the Federation, Dr. Folasade Yemi-Esan and the National Security Adviser (NSA), Mallam Nuhu Ribadu were also present. 

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

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