Fuel subsidy removal would have set Nigeria on fire – NLC

• TUC urges stepping up local production of petroleum products

Nigeria Labour Congress has reacted to the decision of the Federal Government to suspend the removal of fuel subsidy to a later date, saying it is the right thing to do.

Indeed, the NLC, which spoke along with the Trade Union Congress, said the petrol subsidy removal would have instantly set the country on fire.

The Federal Government had earlier planned to stop the subsidy payments on petroleum products from July, having made provisions for only the first six months in the 2023 budget ending in June.

It however announced its postponement on Monday, saying it was due to “high inflation and economic hardship”.

Speaking on the issue, Head of Information at the NLC, Benson Upah, said the union was glad that the government “has seen the light and decided to do the right thing”.

He said the removal of petrol subsidy “would have set the country on fire”.

“There would have been an instantaneous reaction. Of course, we would have been glad to coordinate those reactions,” he said.

“But happily, they have begun to see the light. Our advice would be that they should take a lesson from the document we gave them on the so-called fuel subsidy removal.

“The answer cannot be far from domestic production.”

Upah said the decision would reduce the corruption in the system while he called on the government to fix the existing refineries or build new ones instead of importing refined petroleum products.

TUC

Secretary-General of the Trade Union Congress (TUC), Nuhu Toro, described the government’s decision as a good move.

He said, “Though it’s coming late, the Federal Government’s decision to suspend the move to remove fuel subsidy has alluded to the fact that such harsh economic policy ought to have been a product of social dialogue which was not done.

“We told Nigerians earlier on that the policy is ill-timed and is not acceptable. So it is good that the government has done a U-turn because the policy cannot be forced down our throat.”

He also said refurbishing the existing refineries and production of petroleum products in Nigeria would be in the best interest of the country.

“First, it would create jobs, make the petroleum products available for consumption and probably reduce the price of the products,” Toro said.

He said, “It will also guarantee foreign direct investment and make Nigeria a better place.

“We are confused that our refineries are not working and we have asked over time, why are the refineries not working.

“So there is a strong need for a deliberate effort by the incoming government to ensure that our refineries work.

“All the monies they claim go to the process of deregulation can actually be utilised to make our refineries functional.”

He urged the incoming government to leverage social dialogue on issues that affect Nigerians, warning against drafting policies overnight and pushing same down people’s throats.