NLC demands immediate wage awards as petrol prices rise

The Nigeria Labour Congress (NLC) has called on the Federal Government to introduce immediate wage awards for workers as rising petrol prices continue to increase transportation costs and worsen economic hardship.

NLC President Joe Ajaero made the demand in a statement issued in Abuja on Wednesday, citing the impact of higher petrol prices on workers’ purchasing power and quality of life.

Ajaero said petrol was selling for about N1,430 per litre in major urban centres, with prices higher in less accessible areas, and warned that rising transport fares could trigger further increases in food prices, school fees, rents and tariffs.

What the NLC is saying

Ajaero said the continued increase in petrol prices was significantly affecting workers’ purchasing power and quality of life, particularly as transportation costs continued to rise.

• “These new costs continue to inflict or deepen poverty among the populace, stressing the quality of life to the limits,” he said.

The NLC president attributed part of the latest petrol price increase to the resurgence of conflict in the Gulf but argued that Nigeria should have mechanisms to protect citizens from sudden international energy 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,” he said.

NLC proposes measures to cushion impact

Ajaero urged the Federal Government to immediately introduce reasonable wage awards, make sufficient crude oil available in naira to local refineries and expand the country’s storage capacity.

He said the measures would help cushion the impact of international market shocks, strengthen energy security, create employment opportunities and generate additional economic value.

• “These measures will create jobs, economic value as well as deal with mutating security challenges,” he said.

Ajaero also said government intervention through subsidies or palliatives remained justified during emergencies that placed severe economic pressure on citizens.

• “There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this,” he said.

The NLC president said the intervention was necessary because the government was earning between $35 and $40 above the budgeted crude oil price in the international spot market.

Get up to speed

Petrol prices have come under renewed pressure in recent weeks amid higher international crude oil prices and market volatility.

• On September 3, Nairametrics reported that Brent crude had risen to $96.98 per barrel as conflict in the Gulf intensified, while petrol prices at filling stations had risen above N1,310 per litre. The development came as oil marketers reviewed their pump prices amid higher international crude prices.
• Nairametrics subsequently reported on September 6 that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) attributed persistent petrol price volatility to factors including crude oil sourcing, domestic refining, logistics and transportation costs.

Earlier, in July, Dangote Refinery had moved from naira-denominated to dollar-based pricing for petrol, fixing its ex-depot price at $0.779 per litre. Nairametrics reported that the change meant the naira equivalent of the refinery’s petrol price would fluctuate with movements in the exchange rate.

What you should know

Broader cost-of-living pressures have continued to weigh on Nigerian households in recent times.

• On August 31, Nairametrics reported that economists said Nigerians could wait between 12 and 20 years to fully feel the benefits of the Federal Government’s economic reforms.

They noted that structural reforms typically involve a period of adjustment before improvements in productivity and real incomes become evident.