… Calls for wage award to cushion the effect on workers
… Describes crude imports by local refineries as unacceptable
The Nigeria Labour Congress (NLC) has revealed that the federal government is currently earning about $40 per barrel from crude oil sales, below the $75 per barrel approved benchmark under the 2026 budget.
This is as the Workers umbrella organisation expressed deep concerns over the rising pump price of petrol across the country, which has risen to N1430 per litre at some filling stations in Abuja and more in far northern parts of the country.
BusinessDay checks show that Nigeria’s primary crude grade, Bonny Light, is trading at $126.32 per barrel, according to data tracked by the Central Bank of Nigeria.
This is as the global benchmark Brent crude stands at approximately $106.61 per barrel, but the federal government had approved a benchmark of $75 per barrel under the 2026 budget, among others.
Joe Ajaero, President of the NLC, stated in a statement that the government should be satisfied with the windfall.
He, however, noted that workers are bearing the heavy burden of the rising cost of fuel as 048ce of fuel peaks at N1430 per litre in mega urban cities where petrol is readily available.
He noted that ” In less accessible areas, the cost is much worse”, adding that “This has inflicted incalculable damage to not only wages but our state of being as a people and as a nation”
” It is an established fact that when transportation costs go up, everything else follows, including school fees, rents, tariffs, food stuff, etc.”
The NLC therefore urged the federal government to immediately consider a wage award to cushion the effect of the high cost of transportation.
The union also frowned at the situation where local refineries are forced to import crude oil and urged the federal government to sell crude to local refineries in naira.
“On a long term basis, we are equally concerned that local refineries are importing crude. This is unreasonable and unacceptable and defeats the logic and purpose of local capacity”
The NLC said the new costs continue to inflict or deepen poverty among the populace, stressing the quality of life to the limits.
“This new surge has come at a time government’s pressure on marketers to reduce the pump price to reflect prices of crude in the international spot market was beginning to yield dividend.”
“Yet, even as this new wave of costs is caused by the resurgence of the conflict in the Gulf, our situation needs not be this bleak”
“Coupled with the fact that we are an oil-producing country, we have sufficient local refining capacity, even as this substantially resides with the private sector.
The NLC declared that as people endowed with enormous fossil resources, “we are deserving of a certain level of protection or buffer against the gales from the Gulf, and indeed, other gales.
“As part of the process of creating the buffer,r we urge the government to immediately give reasonable wage awards to workers; sell sufficient crude in Naira to our local refineries; expand our national storage capacity in pursuance of meeting energy emergencies and security.
“These measures will create jobs, economic value as well as deal with mutating security challenges.
“There is nothing wrong with government subsidising the needs of citizens, especially in emergencies like this. At the moment, there is no oil-producing country we know of that has not intervened or come up with sustainable palliatives in one way or the other in these perilous times.
“These measures are all the more necessary and urgent because government is making extra money in the international spot market (of between USD35 and 40 per barrel above the budgeted figure). This translates to trillions of Naira a month.”
“Government ought to be satisfied with this as it is a windfall.”
“We are of the view that a government that seeks re-election in the next few months cannot afford to stand and watch marketers inflict suffering on the citizenry in the name of deregulation. Labour has an obligation to speak out or act accordingly.”
SOURCE: Businessday