The Federal Government is optimistic that the planned indefinite strike by the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) can be averted, as it presents several compelling offers to address the ongoing dispute resulting from the removal of the subsidy on Premium Motor Spirit (PMS).
During a lengthy meeting held in Abuja on Sunday, the government outlined several proposals aimed at resolving the impasse and mitigating the impact of the subsidy removal on Nigerian workers and citizens.
The key highlight of these offers includes a substantial N35,000 pay increase for all “treasury-paid” federal employees.
Other key agreements include Provisional Wage Increment: The Federal Government announced a provisional wage increment of N25,000 for all treasury-paid federal government workers for a period of six months.
Compressed Natural Gas (CNG) Buses: To alleviate the transportation challenges associated with the subsidy removal, the government is committed to fast-tracking the provision of CNG buses for public transportation.
Support for Micro and Small-Scale Enterprises: The Federal Government pledged to provide funding support for micro and small-scale enterprises, recognizing their importance in driving economic growth and employment.
Waiver on VAT for Diesel: VAT on diesel will be waived for the next six months to help mitigate the effects of subsidy removal on businesses and individuals.
Cash Transfer to Households: The government will initiate a cash transfer program, disbursing N75,000 to 15 million households at N25,000 per month over a three-month period from October to December 2023.
Resolutions Reached: During the meeting, several resolutions were reached to address the ongoing dispute and ensure the welfare of Nigerian workers:
Work While Negotiating: The parties emphasized that the issues in dispute can only be effectively resolved when workers are at work and not during strike actions.
Higher Wage Award: Labour Unions advocated for a higher wage award, and the Federal Government pledged to present the request to President Bola Tinubu for further consideration.
Sub-committee for Implementation: A sub-committee will be constituted to work out the details of implementing all items related to government interventions to cushion the effect of fuel subsidy removal.
Resolution of Transport Workers’ Dispute: The matter concerning the Road Transport Employees Association of Nigeria (RTEAN) and the National Union of Road Transport Workers (NURTW) in Lagos State will be urgently addressed. Lagos State Governor, Babajide Sanwo-Olu, committed to resolving the matter.
Suspension of Planned Strike: The NLC and TUC will carefully consider the offers made by the Federal Government with the intention of suspending the planned strike. This will allow for further consultations on the implementation of the agreed resolutions.
Earlier, in his Independence Day speech, President Bola Tinubu had announced a N25,000 pay increment, indicating that it would apply exclusively to “low-grade” workers as a means of cushioning the effects of the fuel subsidy removal.
The meeting, chaired by Chief of Staff to the President, Femi Gbajabiamila, saw the virtual participation of Governor Abdulrazak Abdulrahman of Kwara State, who also serves as Chairman of the Nigeria Governors Forum (NGF), and Governor Dapo Abiodun of Ogun State.
The labour delegation, led by NLC President, Joe Ajaero, and Deputy President of TUC, Dr. Tommy Etim Okon, comprised key representatives from both unions, including NLC General Secretary Emma Ugboaja and TUC General Secretary Nuhu Toro, among others.
Numerous government officials attended the meeting, including the Information Minister, Wale Edun; the Minister of Finance and Coordinating Minister of the Economy, the Minister of Labour and Employment, Simon Lalong; the Minister of State for Labour, Nkeiruka Onyejeocha; and the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu.
Also in attendance were the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu; the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite; the Head of Service of the Federation, Dr. Folasade Yemi-Esan; and the National Security Adviser (NSA), Mallam Nuhu Ribadu.
A statement issued by the Minister of Information and National Orientation, Mohammed Idris, indicated that “NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above.
