NLC suggests fuel subsidy showdown after NNPC ‘ambush’

The Nigeria Labour Congress seems ready for a showdown with the federal government over the removal of fuel subsidy, saying the decision of the NNPC to increase prices while talks were ongoing amounted to an “ambush”.

– Key points to note

The labour union demanded a reversal to the old price and warned that Nigerians would not accept “any manipulation”. It suggested talks will not continue until the prices were reset.

“Nigerians would not accept any manipulations of any kind from any of the parties especially from the representatives of the Government,” NLC president Joe Ajaero said in a statement Wednesday.

“The release of that Template may not allow us to continue if nothing is done to withdraw it so that the dialogue can continue unhindered.”

– Why this matters

President Bola Tinubu’s comment on Monday that “fuel subsidy is gone” has thrown the country into chaos in the last three days with petrol stations increasing their price or refusing to sell altogether.

Transportation rates and the costs of goods have also risen at a time of decades-high inflation.

The government-owned NNPC Ltd announced new rates on Wednesday, with a litre of petrol selling as high as N557 in some cities, from less than N200 – making the margin of increase the widest in 30 years.

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The NLC said the increase came as it held talks with the government on how to manage the fallout of the president’s announcement. It said the price change showed the federal government “is actually trying to scuttle” negotiations.

“We are worried that the Government through the NNPC despite the ongoing meeting of Stakeholders in the oil and Gas sector to manage the unilateral but unfortunate announcement by the President to withdraw subsidy on petroleum products, went ahead this morning to announce a new regime of prices under a new pricing template,” it said.

“This is an ambush and runs against the spirit and principles of Social Dialogue which remains the best platform available for the resolution of all the issues arising out of the petroleum Down-stream sector.”

It accused the government of claiming to be deregulating the sector and yet fixing prices.

“This negates the spirit of allowing the operation of the free market unless the government has as usual usurped, captured or become Market forces,” it said. “It is therefore unacceptable and we seriously condemn it.”

A government representative, Dele Alake, said after the meeting in Abuja that both sides had a “very robust engagement,” and that talks will continue.