Following Fuel Subsidy in Nigeria, here is the Latest Petrol Scarcity News and Subsidy Removal update For 4th June 2023.
Nationwide Strike Imminent as Nigerian Unions React to Fuel Subsidy Removal
Nigeria Labour Congress calls for nationwide strike, while Trade Union Congress rejects fuel subsidy removal initiative.
As Nigerians continue to express their concerns over President Bola Tinubu’s decision to remove fuel subsidies, the latest developments on petrol scarcity, fuel subsidy, and the reactions of the government and citizens have emerged.
NLC Calls for Nationwide Strike, Urges Affiliates to Join
The Nigeria Labour Congress (NLC) has taken a firm stand against the fuel subsidy removal, leading to a call for a nationwide strike scheduled to begin on Wednesday, June 7, 2023. In a letter signed by its General Secretary, Emmanuel Ugboaja, the NLC has requested all 43 affiliate unions to mobilize and actively participate in the industrial action. The NLC emphasized the importance of full compliance with the strike directive, as both public and private sector services are expected to be completely withdrawn.
Affiliates Urged to Join the Strike
Notable among the affiliates urged to join the nationwide strike are the Academic Staff Union of Universities (ASUU), Academic Staff Union of Polytechnics (ASUP), Nigeria Union of Teachers (NUT), Judicial Staff Union of Nigeria (JUSUN), and National Association of Nigeria Nurses and Midwives (NANNM), among others. The NLC’s call for unity among the unions seeks to exert substantial pressure on the government in response to the removal of fuel subsidies.
TUC Rejects Fuel Subsidy Removal, Calls for Dialogue
The Trade Union Congress (TUC) has also voiced its opposition to the fuel subsidy removal initiative implemented by the government. TUC President Festus Osifo, during an emergency meeting of the congress’s National Executive Council (NEC) in Abuja, expressed the congress’s disapproval of the decision. Osifo called on the Tinubu administration to revert to the previous status quo and engage in consultations with labor leaders before making such significant policy changes.
Expectation for Dialogue with Federal Government
The TUC emphasized the need for continued discussions with the government while demanding a return to the previous subsidy regime. The congress expressed its dissatisfaction with the lack of engagement with organized labor before the decision was made. The TUC’s expectation is that the government should maintain the status quo ante while discussions between the two parties continue. The TUC has presented a list of their demands, which will be discussed and deliberated upon by their organs before submitting them to the government.
APC Chieftain Alleges Political Motives
In a contrasting viewpoint, Bayo Onanuga, a chieftain of the All Progressives Congress (APC), has accused the President of the Nigerian Labour Congress (NLC), Joe Ajaero, of acting on behalf of the Labour Party (LP) to destabilize President Bola Tinubu’s administration. Onanuga questioned why Ajaero did not oppose the LP and its presidential candidate, Peter Obi, who also promised to remove petrol subsidies. Despite the concerns raised, Onanuga called on Nigerian workers and citizens to support the government’s efforts in implementing new wages and other interventions to mitigate the effects of the new fuel prices, as promised by President Tinubu.
As the tension surrounding the fuel subsidy removal escalates, the stage is set for a nationwide strike that could significantly impact the country’s socio-economic landscape. The government and labor unions remain at odds, while citizens brace themselves for the potential consequences of this contentious decision.
What is Fuel Subsidy in Nigeria
In Nigeria, fuel subsidy refers to the government’s practice of subsidizing the price of petroleum products, particularly gasoline (known as petrol) and kerosene, for the Nigerian population. The Nigerian government has historically maintained a fuel subsidy program to make fuel more affordable for its citizens.
The subsidy is implemented by selling petroleum products at a lower price than the actual market price. The difference between the market price and the subsidized price is covered by the government using public funds. The intention behind this subsidy is to alleviate the financial burden on consumers and ensure the availability of affordable fuel for transportation, cooking, and other essential purposes.
However, the fuel subsidy program in Nigeria has faced significant challenges. The subsidies have led to large fiscal burdens on the government and have been subject to corruption, mismanagement, and inefficiencies. The system has been prone to abuse, with reports of smuggling, diversion of subsidized fuel to neighboring countries, and fraud.
Due to these challenges, the Nigerian government has made efforts to reform and reduce fuel subsidies in recent years. In 2020, the government fully deregulated the downstream sector of the petroleum industry, effectively removing the fuel subsidy. This move allowed for market forces to determine the price of petroleum products, which fluctuates with global oil prices and exchange rates.
The deregulation of fuel prices in Nigeria has been a controversial topic, as it has resulted in increased fuel prices for consumers. However, proponents argue that it allows for more efficient allocation of resources, reduces government expenditure on subsidies, and encourages investment in the domestic refining industry.
