The Nigeria Labour Congress (NLC) has urged the Federal Government to introduce emergency wage awards for workers and sell crude oil to local refiners in naira as petrol prices rise across the country.
The labour union also called for an expansion of Nigeria’s national petroleum storage capacity to strengthen the country’s ability to respond to energy emergencies.
NLC President Joe Ajaero made the demands in a statement titled “Save the Situation Now,” warning that rising petrol prices could further deepen the economic hardship facing households and businesses.
The union’s call comes as petrol prices reach about ₦1,430 per litre in some major cities, with higher prices reported in areas where the product is less accessible.
NLC warns of wider economic impact
According to Ajaero, higher petrol prices have consequences beyond the cost of transportation.
He argued that increases in transport costs typically feed into the prices of food, rent, school fees and other essential goods and services.
The NLC president said the latest increase was particularly concerning because government pressure on petroleum marketers to reduce pump prices following declines in international crude prices had reportedly begun producing results.
However, he said renewed conflict in the Gulf had contributed to fresh pressures in the international oil market.
“We are seriously concerned by the rising cost of the pump price of petrol across the country,” Ajaero said.
He warned that the latest increase was placing additional pressure on workers’ wages and living standards.
Labour seeks crude allocation to local refiners
The NLC called on the Federal Government to sell sufficient crude oil to local refineries in naira as part of measures to create a buffer against international oil-market shocks.
According to the union, Nigeria’s status as an oil-producing country should provide some protection for consumers when global energy prices rise.
The labour body also pointed to the country’s growing local refining capacity, much of which is operated by private companies.
It argued that greater access to locally produced crude could support domestic refining, create jobs and reduce the economy’s exposure to international supply disruptions.
Union demands emergency wage awards
Ajaero also called for the immediate introduction of reasonable wage awards for workers nationwide to cushion the impact of higher petrol prices.
The NLC argued that temporary support was justified because of the exceptional economic pressure facing households.
The union maintained that government intervention to cushion citizens during an emergency should not necessarily be viewed as a return to the former petrol subsidy system.
“There is nothing wrong with the government subsidising the needs of citizens, especially in emergency situations like this,” the NLC said.
The labour organisation argued that several oil-producing countries use different forms of intervention or palliatives when citizens face sharp energy-price shocks.
NLC links higher oil revenue to relief measures
The union also argued that the government has additional fiscal room because international oil prices are reportedly above the level used in the federal budget.
According to Ajaero, the difference could amount to between $35 and $40 per barrel above the budget benchmark, generating additional government revenue.
The NLC described this as a potential windfall that should be used, in part, to protect households and businesses from the effects of rising energy costs.
However, the actual amount available to government would depend on factors including Nigeria’s crude production, the volume of oil sold, government revenue-sharing arrangements and other fiscal obligations.
Labour calls for larger national fuel reserves
Beyond immediate wage support and crude allocation, the NLC wants the government to expand national petroleum storage capacity.
The union said larger strategic reserves would strengthen Nigeria’s ability to respond to energy emergencies and external supply shocks.
It also argued that expanding domestic refining and storage could create employment and economic opportunities while contributing to national energy security.
The latest demands come amid renewed concerns over the effect of petrol prices on the cost of living.
For Nigerian households, the impact of higher fuel prices extends beyond filling stations, as transportation remains closely linked to the cost of moving food, goods and people across the country.
The Federal Government has yet to indicate whether it will adopt the specific measures proposed by the NLC.
What the NLC is demanding
The labour union’s proposals can be summarised as:
- Emergency wage awards for workers nationwide.
- Crude oil allocation in naira to local refineries.
- Expansion of national petroleum storage capacity.
- Measures to cushion households and businesses against rising fuel prices.
- Greater use of domestic refining capacity to reduce exposure to international oil-market shocks.
