Labour to FG: Spend oil windfall on Nigerians

The Nigeria Labour Congress has urged the Federal Government to use increased crude oil revenues to cushion Nigerians from the latest surge in petrol prices, which it said had reached as high as ₦1,430 per litre in some major cities.

NLC President, Joe Ajaero, made the call in a statement on Wednesday, warning that rising fuel costs would worsen pressure on household incomes and push up the prices of food, transport, school fees, rent and other essential goods and services.

Ajaero said the Federal Government was currently earning an additional $35 to $40 per barrel above the crude oil price benchmarked in the budget, which he said translated into trillions of naira in additional monthly revenue.

He urged the government to use the windfall to provide immediate wage awards for workers, supply crude oil to domestic refineries in naira and expand petroleum storage capacity.

The NLC president said the latest petrol price increase was linked to renewed conflict in the Gulf but argued that Nigeria, as an oil-producing country with domestic refining capacity, should have measures to shield citizens from 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 also called for government intervention through subsidies, arguing that such measures could be justified during emergencies.

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

He said the proposed measures could also support job creation, stimulate economic activity and strengthen national security.

The labour leader questioned why domestic refineries were still importing crude despite the government’s efforts to expand local refining capacity.

He also warned the Federal Government against allowing marketers to pass the full burden of rising international oil prices to consumers under the deregulated petrol market.

“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,” Ajaero said.