Olushola Omogbehin
Sequel to the recent rise in the pump price of petrol across Nigeria, the Nigeria Labour Congress has called on the Federal Government to speedily introduce measures to reduce the impact of the hike, including the payment of reasonable wage awards to workers and the sale of crude oil to local refineries in naira.
This was disclosed in a statement signed by NLC President, Joe Ajaero, on Wednesday where he said petrol now sells for about N1,430 per litre in major cities.
NLC warned that the new increase in petrol would further worsen the economic hardship facing Nigerians because of the increment in transportation, food materials, rent, school fees and other essential goods and services that are typically triggered by higher petrol prices.
In its statement, titled “Save the Situation Now,” the NLC said the latest increase came at a time when government pressure on oil marketers to reduce pump prices in response to lower international crude prices was beginning to produce results.
NLC said as the latest surge is connected with the resurgence of conflict in the Gulf, Nigeria’s status as an oil-producing country means it should be able to provide some protection against 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.”
NLC therefore urged Federal Government to immediately introduce measures to protect households and businesses from the impact of the higher fuel prices.
In particular, NLC called for wage awards for workers, sufficient crude oil sales in naira to local refineries and an expansion of the country’s national petroleum storage capacity to strengthen energy security and prepare for emergencies.
These steps according to NLC would not only reduce the burden on Nigerians but also create jobs, generate economic value and help address emerging security challenges.
“There is nothing wrong with the government subsidising the needs of citizens, especially in emergency situations like this,” Ajaero said,
Adding, he said oil-producing countries were introducing different forms of intervention or palliatives to protect their citizens from the effects of the current global energy crisis.
Claiming that the Federal Government had benefited from higher international crude prices as crude was currently selling about $35 to $40 per barrel above the benchmark used in the national budget, NLC argued that the additional revenue should be regarded as a windfall that would provide fiscal space for interventions to protecting citizens from the rising cost of living.
Expressing worries over reported importation of crude by some local refineries, NLC said the development is contrary to the objective of developing domestic refining capacity.
“On a long-term basis, we are equally concerned that local refineries are importing crude. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity,” the statement said.
The NLC said the government needed to act quickly rather than allow the burden to fall entirely on workers and other citizens.
Ajaero said the Federal Government, which he noted was seeking re-election in the coming months, “cannot afford to stand and watch marketers inflict suffering on the citizenry in the name of deregulation.”
