The Nigeria Labour Congress (NLC) has urged the Federal Government to introduce emergency wage awards for workers and sell crude oil to local refineries in naira as petrol prices rise across the country.
The labour union also called for an expansion of Nigeria’s national storage capacity to strengthen the country’s ability to respond to energy emergencies and improve energy security.
In a statement titled “Save the Situation Now,” NLC President Joe Ajaero warned that the latest increase in petrol prices would deepen the economic hardship confronting Nigerians.
Checks showed that petrol now sells for about N1,430 per litre in major cities, with prices reportedly higher in less accessible locations.
Ajaero questioned why a government seeking re-election in the next few months would allow marketers to impose additional pressure on citizens in the name of deregulation.
The NLC maintained that there was nothing wrong with government subsidising citizens’ needs, particularly during emergencies.
According to Ajaero, rising transportation costs typically translate into higher prices for food, rent, school fees and other essential goods and services.
“We are seriously concerned by the rising cost of the pump price of petrol across the country. In mega cities where petrol is readily available, the cost ranges from N1,430. In less accessible areas, the cost is much worse. This has inflicted incalculable damage not only on wages but also on our state of being as a people and as a nation,” he said.
“It is an established fact that when transportation costs go up, everything else follows, including school fees, rents, tariffs, foodstuff, etc.
“These new costs continue to inflict or deepen poverty among the populace, stressing the quality of life to the limits.”
Ajaero said the latest surge came as government pressure on oil marketers to reduce pump prices in line with lower international crude prices was beginning to produce results.
“This new surge has come at a time when the government’s pressure on marketers to reduce the pump price to reflect crude prices in the international spot market was beginning to yield dividends.
“Yet, even as this new wave of costs is caused by the resurgence of the conflict in the Gulf, our situation need not be this bleak.
“Coupled with the fact that we are an oil-producing country, we have sufficient local refining capacity, even as this substantially resides with the private sector.”
The NLC President argued that Nigeria’s status as an oil-producing country and its available refining capacity should provide some protection against 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,” he said.
Ajaero called on the Federal Government to immediately implement measures to protect households and businesses from the impact of higher petrol prices.
“As part of the process of creating this buffer, we urge the government to immediately give reasonable wage awards to workers; sell sufficient crude in naira to our local refineries; and expand our national storage capacity in pursuance of meeting energy emergencies and security.
“These measures will create jobs and economic value, as well as deal with mutating security challenges.
“There is nothing wrong with the government subsidising the needs of citizens, especially in emergency situations like this.
“At the moment, there is no oil-producing country we know of that has not intervened or come up with sustainable palliatives in one way or another in these perilous times.”
The labour leader said the measures were particularly urgent because the government was earning additional revenue from the international spot market.
“These measures are all the more necessary and urgent because the government is making extra money in the international spot market, between USD35 and USD40 per barrel above the budgeted figure. This translates to trillions of naira a month. The government ought to be satisfied with this, as it is a windfall.”
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