Nigeria’s primary trade union has halted its plan for a nationwide strike to protest against the significant fuel price hike caused by the government’s decision to remove subsidies. The Nigeria Labour Congress (NLC) President, Joe Ajaero, announced the suspension after a lengthy meeting with the government, stating that more time was needed for negotiations.
A court order has prohibited unions from engaging in industrial action until the government’s application is heard on 19 June.
Organized labor is demanding an increase in the minimum wage and tax exemptions for workers to mitigate the impact of the subsidy removal.
Fuel marketers raised petrol prices to a minimum of $1 per liter, resulting in subsequent price increases in transportation, food, and other goods. Meanwhile, the minimum wage stands at around $65.
Nigeria’s new President, Bola Tinubu, revealed the removal of fuel subsidies in his inaugural address on 29 May but did not specify an implementation date.
Immediately following the address, crowds rushed to the streets, either in vehicles or on foot with yellow jerrycans, in a bid to obtain fuel at the previous government-set price.
Despite being an oil-rich nation, Nigeria lacks the capacity to refine crude oil domestically to meet demand. The country’s four state-owned refineries are non-operational, leading to the importation of refined petroleum products, which are sold at government-fixed prices.
Mr. Tinubu explained that the government can no longer afford fuel subsidies due to declining revenue. Already, $7 billion has been allocated to subsidize fuel for the first half of the year.