The strike follows NLC President Joe Ajaero’s recent declaration, amplifying concerns over soaring fuel prices and an escalating cost of living since President Bola Tinubu’s announcement of the “fuel subsidy is gone” during his May 29 inaugural speech.

The NLC accuses the Federal Government of abandoning negotiations and failing to implement resolutions from previous meetings. On August 2, organized labor protested against what they termed “anti-people policies” under President Bola Tinubu’s administration.

Demonstrations led by the NLC, Trade Union Congress (TUC), and their affiliate unions took place in multiple states, including Lagos, Abia, Plateau, Kaduna, Kano, Rivers, Zamfara, Katsina, Cross River, Ebonyi, Enugu, Kwara, Ogun, Imo, Ondo, and Edo.

The protests followed a seven-day ultimatum demanding the immediate reversal of various “anti-poor policies,” including the recent PMS (Premium Motor Spirit) price hike, increased public school fees, and the release of eight months’ withheld university lecturers’ and workers’ salaries.

Additionally, the unions called for an upward review of the minimum wage from N30,000 to N200,000, citing the adverse effects of the “subsidy is gone” declaration on Nigerians’ well-being.

Despite several meetings between the Presidency and the unions to address the hardship caused by fuel subsidy removal, no concrete solutions have emerged.

NLC President Joe Ajaero emphasized the inadequacy of the N5 billion approved for each state and the FCT as a cushion against the impact of subsidy removal, highlighting that it would amount to less than N1,500 per person, raising questions about whether this sum constitutes a loan or a palliative measure.

Ajaero expressed concern that the initial and subsequent fuel price increases have pushed many Nigerians deeper into poverty, urging a thorough examination of how the N5 billion allocation will genuinely benefit the populace.

Tinubu delivered this message during a public event in Abuja on Thursday, where he attended the unveiling of the autobiography of elder statesman Edwin Clark.

Represented by George Akume, the Secretary to the Government of the Federation (SGF), Tinubu acknowledged the challenges posed by the subsidy removal but urged patience from the populace.

The Nigerian leader stated, “Solutions to problems can never be as instant as coffee. But we must certainly be there. I know the removal of fuel subsidy has created some things. And that is why palliatives are being put in place of 100 trucks.”

Tinubu affirmed that efforts were underway to counterbalance the repercussions of the subsidy removal. He highlighted the distribution of fertilizers and grains to states, the allocation of buses, and the ongoing provision of assistance.

He encouraged citizens to bear the temporary difficulties, emphasizing that the current trials are paving the way for a brighter future.

He added, “We can endure this for a moment. What we are going through today is for a better tomorrow. Nations are great because citizens have hope. They have hope that tomorrow will be better than today.”

Tinubu’s statement aligns with the Federal Government’s recently approved palliative measures for state governments. Following a National Economic Council (NEC) meeting, N5 billion was allocated to each state and the Federal Capital Territory (FCT), accompanied by the provision of grains and other essentials.

Governor Babagana Zulum of Borno State, while addressing the press, detailed the measures undertaken. He disclosed the allocation of rice and maize to state governors and the purchase of 100,000 bags of rice and 40,000 bags of maize. These actions were intended to mitigate the effects of the petroleum subsidy removal.

Zulum further elucidated that 52 percent of the funds were provided as grants, while the remaining 48 percent was allocated as loans.

Governor Babangana Zulum of Borno State conveyed this information to State House Correspondents on Thursday.

Previously, Zulum had disclosed that the Federal Government sanctioned a sum of N5 billion for every state in the federation, including the Federal Capital Territory.

Speaking on the purpose of the funds, Zulum noted that it is for the “procurement of food items.”

He further explained that it was part of measures to “bring temporary solutions to the high cost of living caused by the subsidy removal as government continues to work with more enduring programmes.”

He said, “The states are to purchase 100,000 bags of rice and beans among other items,” while adding that each of the state is also to receive five trucks of rice.

He also said the National Economic Council agreed that the frontier states bordering Niger Republic are to be assisted with more palliatives than other states, considering the influx of refugees into their domains from the beleaguered neighbouring country.

President Bola Tinubu’s recent endorsement of these measures has further strengthened the support.

In a recent event organized by the World Bank to evaluate Nigeria’s economy, Dr. Subham Chadhuri, the Country Director, acknowledged that while the policy would cause some hardships, it is crucial for the country’s economic reconstruction.

He also emphasized the need for measures to alleviate the impact on the population going forward.

Dr. Chadhuri revealed that the World Bank’s concessional funding to Nigeria currently exceeds ten billion dollars, underscoring the organization’s commitment to supporting the country’s economic reforms.

Additionally, Alex Seinart, a lead economist at the World Bank, projected that the removal of fuel subsidies would result in fiscal gains of approximately 3.9 trillion Naira in 2023.

Seinart cautioned that the subsidy removal might temporarily increase inflation in the coming months but predicted that it would contribute to disinflation in the medium term.

Regarding the exchange rate, Seinart, the senior economist, highlighted the drawbacks of the previous foreign exchange management approach.

It hindered investment and economic growth, contributed to inflation, and undermined the effectiveness of monetary and fiscal policies.

The fare adjustment aims to assist drivers in covering their growing operating expenses and is part of Uber’s ongoing commitment to supporting its driver community.

Tope Akinwumi, the Country Manager for Uber in Nigeria, stated that the company values its drivers and strives to make Uber the preferred app for them, while still providing an affordable service for riders.

Following a thorough assessment of the fuel subsidy removal, Uber made fare adjustments on June 3rd and 9th to reflect the current economic conditions.

These changes have contributed to improving drivers’ earning potential. Additionally, Uber reduced its service fee from 25% to 20% in February 2022, enabling drivers to have better opportunities to earn.

The company maintains regular communication with drivers through various channels such as roundtables, surveys, phone calls, and in-app interactions to understand their business realities and gather feedback.

Uber continuously monitors local dynamics to identify potential changes that can be implemented to benefit drivers and riders.

The service fee charged by Uber ensures the smooth functioning of the app and allows the company to invest in technology enhancements that cater to the needs of both drivers and riders.

Uber claims that its platform offers higher earning potential for drivers compared to other ride-hailing platforms in Nigeria.

In a nationwide address on the occasion of the 2023 Democracy Day in Abuja, the president acknowledged that the removal of subsidies would exacerbate the hardships faced by Nigerians.

However, he assured the nation of significant investments in transportation, healthcare, infrastructure, education, and other essential sectors.

Tinubu also pledged that his administration would draw inspiration from the ideologies of MKO Abiola, prioritizing the well-being of the people over the personal interests of the ruling class.

He emphasized the importance of creating a society where citizens can achieve personal fulfillment and happiness.

He stated, “During my inauguration speech on May 29, I implemented the decision made by my predecessor to eliminate the burden of fuel subsidies, liberating crucial resources for collective benefit that were previously monopolized by a privileged few. I understand the difficulties this decision imposes on our people. I share your pain. However, this sacrifice is necessary to rescue our nation from collapse and release our resources from the grip of a small number of unpatriotic individuals.”

Tinubu urged Nigerians to endure the temporary hardships, promising that his government would reciprocate their trust and support through substantial investments in transportation infrastructure, education, consistent power supply, healthcare, and other public utilities aimed at enhancing their quality of life.

He concluded by calling for a renewed dedication to the principles of the democratic system that MKO Abiola stood for, a system that prioritizes the welfare of the people and fosters personal fulfillment and happiness.

Tinubu urged all elected officials to rededicate themselves to selfless service, fulfilling their electoral promises and delivering tangible benefits to the citizens.

“On my part and that of my administration, I pledge anew our commitment to diligently fulfilling every component of our electoral pact with the people – the ‘Renewed Hope’ agenda”, he added.

The president made this call during a meeting with representatives of prominent oil marketers’ associations at the Aso Rock Villa in Abuja on Wednesday.

The discussions centered on finding a way forward to ensure a consistent supply of fuel products in the country.

Leading the oil marketers was Governor Dapo Abiodun of Ogun State.

In a Facebook statement, President Tinubu emphasized his government’s unwavering commitment to fostering a competitive, stable, and transparent oil market.

He challenged the marketers to collaborate with the government in order to ensure regular fuel supply and convenient access to fuel products throughout the country at the most affordable prices.

During his inaugural speech on May 29 at the Eagle Square in Abuja, the President announced the removal of petrol subsidies. He highlighted that the previous administration had not allocated funds for subsidies beyond June in the 2023 budget.

Following the meeting with the oil marketers, President Tinubu instructed the National Economic Council (NEC), led by Vice President Kashim Shettima, to devise an approach and initiate interventions to mitigate the impact of subsidy removal on Nigerians.

After leading a group of major oil marketers on a courtesy visit, Governor Dapo Abiodun of Ogun State confirmed that the marketers expressed solidarity with the President for removing the 4 trillion naira subsidy burden.

This move has the potential to enhance the Federal Accounts Allocation Committee (FAAC) allocation to states.

Speaking to reporters, Governor Abiodun, a former chairman of the Oil Marketers Association, announced the group’s intention to donate between fifty and a hundred “50-seater” mass transit buses within the next 30 days.

This gesture, estimated to cost approximately 100 million naira per bus and a total of 10 billion naira collectively, aims to alleviate the impact of subsidy removal on the population.

The marketers expressed hope that other corporate entities would follow suit and emulate their philanthropic actions.

In a statement released on Tuesday in Lagos, Adewale-Smatt Oyerinde, the Director-General of NECA, conveyed the organization’s stance.

However, Oyerinde emphasized the urgent need for the Federal Government to address the state of the country’s four refineries following the removal of fuel subsidy.

This action has resulted in an unprecedented surge in petrol prices and transportation fares.

The Director-General urged President Tinubu’s administration to adopt forward-looking policies to address the current fuel crisis effectively.

Oyerinde highlighted that many interventions capable of mitigating the crisis would require a medium to long-term timeframe for implementation.

“It is therefore advisable to plan for the future. We require programs and policies that offer permanent or long-term solutions,” Oyerinde remarked.

He further emphasized the importance of stimulating manufacturing and industrial production to foster the development of local economies.

“We reiterate our call for the complete removal of fuel subsidy, as it will promote sustainable enterprise growth and competitiveness. Subsidy removal will generate substantial financial revenue that can be allocated to infrastructure development, among other areas,” he explained.

Oyerinde urged the Federal Government to conduct extensive education and awareness campaigns to communicate the essence and benefits of removing petrol subsidy.

He emphasized the need for Nigerians to understand that this policy is in their best interest and will positively impact both their well-being and the economy.

This decision was reached at the conclusion of a meeting held on Monday Night.

The meeting, which took place on Monday, was attended by various dignitaries who endorsed the resolutions.

These individuals included Mr Femi Gbajabiamila, Chief of Staff to the President; Festus Osifo, President of TUC; Nuhu Torò, Secretary General of TUC; Joseph Ajaero, President of NLC; Emmanuel Ugboaja mni, General Secretary of NLC; and Ms Kachollom S. Daju, Permanent Secretary of the Federal Ministry of Labour and Employment.

The following resolutions were agreed upon during the meeting:

1. The TUC and NLC will continue engaging with the Federal Government to achieve closure on the aforementioned resolutions.
2. A meeting will be held between the Labour Centres and the Federal Government on June 19, 2023, to establish an implementation framework.
3. A joint committee will be formed by the Federal Government, TUC, and NLC to review proposals for potential wage increases or awards, and to establish a framework and timeline for their implementation.
4. The World Bank Financed Cash transfer scheme will be reviewed by the Federal Government, TUC, and NLC, with a proposal for the inclusion of low-income earners in the program.
5. The CNG conversion programme, previously agreed upon by the Labour centres in 2021, will be revived by the Federal Government, TUC, and NLC, with detailed plans for implementation and timing.
6. Issues impeding effective delivery in the education sector will be reviewed by the Labour centres and the Federal Government, who will propose solutions for implementation.
7. The framework for the completion of the nation’s refineries will be reviewed and established by the Labour centres and the Federal Government.
8. The Federal Government will develop a framework for the maintenance of roads and the expansion of rail networks throughout the country.
9. The joint committee will assess all other demands submitted by the TUC to the Federal Government.

In light of these resolutions, the planned strike has been suspended to allow for further discussions and negotiations between the Labour Centres and the Federal Government.

He reassured Nigerians that competition among major players in the oil sector would lead to a reduction in petrol prices, countering the recent upward trends that have caused panic in the country.

Following the discontinuation of petroleum subsidy, fuel queues reappeared at stations across the nation due to the recent hike in petrol pump prices.

The NNPC had adjusted the pump price of petrol to reflect market realities but did not disclose the new prices. Nevertheless, retail outlets in Lagos, Abuja, Ogun, and other states sold petrol at prices ranging from 600 to N800 per litre.

Talks between the Federal Government and organized labor regarding the removal of fuel subsidy ended in a deadlock. The parties failed to reach a consensus after oil marketers raised petrol pump prices to over N700 per litre from N195.

During an interview on Arise TV’s Morning Show, Kyari explained that the removal of subsidy would encourage new players to enter the market, promoting competition and phasing out monopoly. He emphasized that this would foster healthy competition, leading to a downward revision of petrol prices nationwide.

Kyari stated, “The removal of subsidy will attract new entrants to the market because oil marketing companies have been hesitant to enter due to the existing subsidy regime. With the market being regulated, oil marketing companies can import or buy locally produced petrol and sell it at retail prices.

“This will introduce competition, even with NNPC. According to the law, NNPC cannot control more than 30 percent of the market going forward. Once the market stabilizes, oil marketing companies will be able to participate.”

He added, “Competition will naturally arise, and the market will regulate itself. In a week or two, you will witness different prices as major players adopt different approaches. Competition will drive these changes downward, and increased efficiency will play a significant role.”

Regarding the price hikes by fuel stations despite holding subsidized stock, Kyari explained, “This is a typical stock management issue that applies to all commodities, not just petroleum.

“It could have been the opposite, with prices collapsing and those holding old stock forced to sell at lower prices to match market conditions.

“It’s not something unusual or alarming; it’s simply how stock management works. The prices at our stations reflect the current market conditions, and prices can decrease at any time as the market adjusts itself.”