The Nigeria Labour Congress (NLC) has challenged the Federal Government to deploy its rising crude oil revenues to shield Nigerians from the fresh surge in petrol prices, saying motorists now pay as much as N1,430 per litre in major cities.
NLC President, Comrade Joe Ajaero in a statement on Wednesday, said the Federal Government was making an additional $35 to $40 per barrel above the budgeted crude oil price, translating to what he described as trillions of naira in extra revenue monthly, even as the rising cost of petrol deepens hardship across the country.
He therefore demanded immediate wage awards for workers, sale of sufficient crude oil in naira to domestic refineries and expansion of the country’s petroleum storage capacity, alongside other measures to cushion the effect of the crisis.
Ajaero in the statement titled “Save the Situation Now,” said the latest increase in petrol prices had inflicted severe pressure on wages and the living conditions of Nigerians.
He warned that the impact would extend beyond transportation, as higher fuel costs would push up the prices of food, school fees, rents, tariffs and other essentials.
The labour leader said the latest surge had occurred at a time when government pressure on marketers to reduce pump prices in line with international crude oil prices was beginning to produce results.
Ajaero acknowledged that the renewed increase was linked to the resurgence of conflict in the Gulf but argued that Nigeria, as an oil-producing country with domestic refining capacity, should have mechanisms to protect its citizens from such external shocks.
He said: “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 urged the government to immediately provide “reasonable wage awards” to workers, sell sufficient crude in naira to local refineries and expand national storage capacity as part of measures to strengthen energy security.
Ajaero noted that the measures would also create jobs, generate economic value and help address emerging security challenges.
The NLC president further argued that government intervention through subsidies could be justified under exceptional circumstances.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergency situations like this.”
Ajaero said the additional revenue accruing from higher international crude prices made the situation more compelling.
“These measures are all the more necessary and urgent because government is making extra money in the international spot market of between USD35 and 40 per barrel above the budgeted figure. This translates to trillions of Naira a month.
“Government ought to be satisfied with this as it is a windfall.”
On the long-term solution, Ajaero questioned why domestic refineries were importing crude despite Nigeria’s efforts to develop local refining capacity.
“We are of the view that a government that seeks re-election in the next few months 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.”
