…Faults Finance Minister’s insistence on fuel subsidy removal
…Presidency won’t bring back fuel subsidy — Finance Minister, Oyedele
The Nigeria Labour Congress has painted a grim picture of the state of the nation and its workers, warning that rising insecurity, deepening poverty, and worsening economic conditions are pushing citizens to the brink.
Recall that NLC and other stakeholders in the Nigerian project had consistently blamed hardship in the country on the manner fuel subsidy was removed by the present government.
However, Minister of Finance and Coordinating Minister of Economy, Taiwo Oyedele, has insisted that the Presidency will not bring back fuel subsidy, despite widespread clamour over the effect of its removal on the cost of living.
NLC President, Joe Ajaero, in an interview, said the situation has reached a critical point where survival, rather than productivity, has become the priority for many Nigerians, especially workers.
According to him, there is now a broad consensus across the country, including among government officials, that insecurity has severely undermined livelihoods, disrupted economic activities and heightened hardship.
He stressed that workers can no longer operate effectively in an atmosphere of fear, displacement, and uncertainty, with many forced to abandon their homes and means of livelihood.
Ajaero said: “Everyone in this country will tell you that insecurity has finished the country. It’s not a question of whether I am in government or not. Even people in government are lamenting. It is a problem for all of us. Workers cannot operate in those areas, and that is very important.
“The psychological fear of moving from one place to another is increasing, and that cannot even be quantified. People are moving from their communities to Internally Displaced Persons, IDP, camps. Insecurity has really dealt with us.”
Related News
Police nab Bayelsa sender of gun that led to Oghenemine’s killing by Delta officer
Ivory Coast dissolves election body criticised by the opposition
WHO says hantavirus case was not caught on ship
Linking insecurity to poverty, the NLC president noted that the crisis had gone beyond the question of decent work to the availability of jobs altogether.
“When you now talk of challenges, is it decent work or even work at all? Insecurity has affected employment in the country. Apart from lives lost, people can’t invest. Even Nigerians abroad will tell you insecurity is too much for them to return.
“People are running to areas they think will give them protection. Therefore, jobs are suffering and poverty is increasing. The majority of Nigerian workers, especially in rural communities, depend on their farms. If they can’t go to farm, their livelihoods collapse,’’ Ajaero said.
On the economic front, he criticised the disconnect between macro-economic indicators and the lived reality of citizens.
He argued that “If you say the economy has grown and I can’t move from where I am because transportation is high, how has that translated to my life? We are not seeing it.”
The NLC President also pointed to the impact of global events on local hardship, saying “the moment there was tension between Iran and America, fuel prices jumped to about N1,300–N1,400.
‘’That shows we are not insulated. But when crude prices go up and government earns more, how has that benefited the worker?”
Ajaero queried why increased government revenue had not translated into improved wages.
“Did you add N50,000 or N100,000 to workers’ earnings to cushion the effect? The worker is buying fuel at N1,400, while salary remains the same. Government is benefiting, but the worker is running at a deficit,’’ he said.
Growing burden on workers
The labour leader, who lamented the growing burden on workers amid rising taxation, said: “The level of taxation now is a problem. You have formal and informal taxes. Okada riders, market women, before they even start work, are paying levies. Nigerians are groaning.”
On alternatives to rising fuel costs, he expressed disappointment that “we thought Compressed Natural Gas, CNG, will stabilise transportation, but where are the stations? ‘’How many people have converted? The same applies to electric vehicles—there is no infrastructure. So people have no alternatives.”
Addressing human rights concerns, Ajaero argued that economic hardship itself constituted a major violation.
“Which human rights are worse than starvation? When you don’t pay people adequately, their fundamental rights are already compromised,’’ he added.
Ajaero also raised concerns about labour conditions in parts of the private sector, adding that “some employers subject workers to very harsh conditions.
‘’In some cases, workers are made to live in hostels and do excessive labour. The Ministry of Labour must strengthen its inspectorate because accidents and unsafe conditions are common.”
On civic space and workers’ rights, he criticised attempts to restrict peaceful protests.
“Even during May Day, in some states, police warned against processions. Meanwhile, people are not being paid. When workers ask questions, they are told about laws restricting protest,’’ Ajaero said.
Highlighting the irony of the situation, Ajaero said: “even the police are now protesting. The same people used to suppress protests are now expressing their own frustrations. That shows how deep the crisis has become.
“In many ways, workers’ rights are being violated, especially in the private sector, where there is little protection. Without urgent action, stronger policies and accountability, these challenges will persist.”
NLC faults Oyedele on fuel subsidy removal
Faulting the claims by Minister of Finance, Mr Taiwo Oyedele, that the federal government would not reconsider fuel subsidy, despite the sharp rise in global fuel prices, an official of NLC, said it was both disappointing and lacking in responsiveness to the current economic realities facing Nigerian workers and citizens.
The NLC official, who spoke to Vanguard yesterday, on condition of anonymity, said: “At a time the Middle East crisis continues to drive volatility in global energy markets, governments across the world are adopting pragmatic measures to cushion the impact on their people.
‘’It is, therefore, troubling that our own government appears unwilling to explore alternative forms of intervention beyond the narrow framing of fuel subsidy as a closed chapter.
“Subsidy, in practice, is not a one-dimensional policy. There are several targeted and more sustainable approaches the government can adopt to ease the burden on Nigerians. Strategic subsidies can be extended to critical sectors such as transportation, manufacturing, pharmaceuticals, and the food and beverage industry.
‘’These interventions would directly lower production and distribution costs, ultimately reducing the prices of goods and services for ordinary citizens.
“In addition, a temporary tax freeze or reduction on essential commodities and production inputs would go a long way in stabilising the economy and protecting purchasing power. These are practical, people-centered policies that can deliver immediate relief without necessarily reverting to the previous fuel subsidy regime in its old form.
“Furthermore, the government can adopt a proactive supply-side approach by allocating a dedicated volume of crude oil to local refineries for domestic consumption. With strict monitoring and transparent distribution mechanisms, this would help stabilise local fuel supply and pricing, at least, as an interim measure, pending the resolution of geopolitical tensions in the Middle East.
“The reality is that Nigerians are bearing the brunt of global shocks with very limited institutional support. A responsive government must be willing to think creatively and act decisively to mitigate these effects.
‘’Dismissing all forms of subsidy outright, without offering viable alternatives, only deepens the socio-economic strain on citizens. What is required at this moment is not rigid policy posturing, but adaptive leadership that prioritises the welfare of the people.”
Speaking with global investors in France, where President Bola Tinubu is currently on a state visit, the Minister of Finance and Coordinating Minister of Economy, Taiwo Oyedele, said the Presidency would not bring back fuel subsidy, the clamour against its effect notwithstanding.
He noted that subsidies created economic “distortions”, adding that the prices of petrol would not be controlled because the Presidency believed the market was capable of regulating itself.
Recall that following the removal of the petrol subsidy in May 2023, Nigeria’s inflation rate surged, reaching a 19-year high, with inflation rising from 22.41% in May 2023 to 34.19% by June 2024, driven by sharply higher fuel, food, and transportation costs.
“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market… the situation in Iran presents new opportunities for us as the world looks to diversify sources of energy and invest in new markets,’’ Oyedele said.
He also highlighted Nigeria’s strong GDP growth in dollar terms in 2025, adding that Nigeria recorded 11.2% GDP growth in dollar terms last year, a record that reinforced the country’s ambition to achieve a $1 trillion economy in 2030. Oyedele emphasised the government’s near-term priorities of translating reforms into results for the Nigerian people.