Nigeria’s main labour union announced on Friday its intention to initiate a nationwide strike starting from Wednesday to protest against the threefold increase in fuel prices. This strike will serve as a significant test for newly elected President Bola Tinubu, who recently abolished the costly fuel subsidy.
The surge in fuel prices has resulted in a sharp rise in transportation fares, affecting the daily lives of Nigerian citizens. Ride-hailing and food delivery startup, Bolt, also confirmed that it had raised its prices in Nigeria due to increased operating costs resulting from higher fuel prices.
Nigeria’s fuel subsidy, which cost the government billions of dollars annually, had been popular among the population as it helped maintain low prices in the largest oil-producing country in Africa. However, Nigeria continues to grapple with high poverty rates, with the Nigerian Bureau of Statistics reporting that 63 percent of the population lives in poverty. Furthermore, a World Bank report from last year revealed that up to four in 10 Nigerians live below the national poverty line.
The government justified the removal of the subsidy, which caused petrol prices at the pumps to surge from 189 naira to 557 naira per litre, as a measure to alleviate a government funding crisis.
Nevertheless, Joe Ajaero, President of the Nigerian Labour Congress (NLC), expressed the union’s dissatisfaction during an emergency meeting of the executive council in Abuja, calling for the state oil company NNPC to reverse the price hike. Ajaero stated, ‘The Nigeria Labour Congress decided that if by Wednesday next week that NNPC, a private limited liability company that illegally announced a price regime in the oil sector, refuses to revert itself for negotiations to continue, that the Nigeria Labour Congress and all its affiliates will withdraw their services and commence protests nationwide until this is complied with.’
A similar attempt to remove fuel subsidies in 2012 triggered a wave of strikes, ultimately leading to the reinstatement of some subsidies. Interestingly, at that time, President Tinubu, then in the opposition, was among those who opposed ending the subsidies.
On Friday, President Tinubu acknowledged the need to review Nigeria’s minimum wage, currently set at 30,000 naira ($65). He addressed the ruling party state governors at his offices in Abuja, emphasising the necessity to strengthen revenue collection and conduct a thorough assessment of the minimum wage.
