FG, NLC, and TUC Reach Historic Agreement Following Fuel Subsidy Dispute
NEWS DIGEST – In a crucial development aimed at averting a nationwide strike over the withdrawal of the subsidy on Premium Motor Spirit (PMS), the Federal Government of Nigeria engaged in productive negotiations with the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC). The talks successfully concluded with a Memorandum of Understanding (MoU) on Monday, the 2nd of October, 2023.
The withdrawal of the subsidy on PMS had led to a surge in fuel prices, prompting the NLC and TUC to issue a strike notice. The labor unions were prepared to commence the strike on Tuesday, the 3rd of October, 2023.
However, following an urgent meeting, key agreements were reached to address the concerns raised by the labor unions. The outcomes of the meeting include:
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- Wage Award: The Federal Government has granted a wage award of N35,000 to all Federal Government workers, effective from September, pending the enactment of a new national minimum wage.
- Minimum Wage Committee: A minimum wage committee will be inaugurated within one month from the date of this agreement.
- VAT Suspension: The Federal Government will suspend the collection of Value Added Tax (VAT) on Diesel for six months, starting from October, 2023.
- CNG Bus Provision: The Federal Government commits to providing high capacity CNG buses for mass transit, along with CNG conversion kits for an auto gas conversion program.
- Tax Incentives: Various tax incentive measures will be implemented for the private sector and the general public.
- Resolution of Labor Disputes: Commitment to handle labor matters in accordance with relevant ILO Conventions and Nigerian Labor Acts.
- Outstanding Salaries and Wages: Referral of the issue of outstanding salaries and wages of tertiary education workers to the Ministry of Labor and Employment for further engagement.
- Social Welfare: The Federal Government will provide financial support to vulnerable households and increase initiatives on subsidized fertilizer distribution to farmers.
- Encouragement for Wage Awards at State Level: Encouragement to state governments and private sector employers to implement wage awards for their workers.
- Support for MSMEs: The Federal Government commits to providing funds to Micro and Small Scale Enterprises, promoting the principle of decent jobs.
- Refinery Rehabilitation: A joint visitation to the refineries will be conducted to assess their rehabilitation status.
- Adherence to Social Dialogue: All parties commit to abiding by the principles of social dialogue in future engagements.
- Strike Suspension: The NLC and TUC agree to suspend the planned indefinite nationwide strike for 30 days, initially scheduled to begin on October 3, 2023.
- Legal Filing: The MoU will be filed with the relevant Court of competent jurisdiction within one week as consent judgment by the Federal Government.
The MoU was signed by the NLC, represented by Comrade Joe Ajaero and Comrade Emmanuel Ugboaja, the TUC, represented by Comrade (Engr) Festus Osifo and Comrade Nuhu A. Toro, and the Federal Government, represented by H.E. Simon Bako Lalong, Honourable Minister of Labour and Employment, Hon. Dr Nkeiruka Onyejeocha, Honourable Minister of State for Labour and Employment, and Mallam Mohammed Idris, Honourable Minister of Information and National Orientation.
This historic agreement marks a significant step towards addressing the concerns of the Nigerian workforce and ensuring a conducive economic environment.
