Nigeria’s two largest workers’ unions, the National Labour Congress (NLC) and the Trade Union Congress (TUC), have declared an indefinite strike starting on October 3 to protest the removal of a popular yet costly petrol subsidy, according to union leaders.
In a joint statement issued on Tuesday, the NLC and TUC expressed their determination for a “total shutdown” until the Nigerian government addresses the demands of both workers and the broader population, who have been grappling with the repercussions of the removal of the petrol subsidy.
“The Federal Government has refused to meaningfully engage and reach agreements with organized labor on critical issues arising from the unfortunate hike in petrol prices, which has inflicted immense suffering on Nigerian workers and the masses,” the union leaders stated.
The unions have been urging President Bola Tinubu to reconsider his decision made in May to eliminate the decades-old subsidy, which had historically maintained lower fuel prices but strained government finances. The government has encouraged unions to continue negotiations instead of resorting to strikes, emphasizing the potential adverse impact on an economy already burdened by double-digit inflation, foreign currency shortages, and low oil production.
The removal of the subsidy has resulted in sharp increases in prices across various sectors, including food, transportation, and energy, as a significant portion of businesses and households rely on petrol generators for electricity.
President Tinubu has defended these two major reforms—the removal of the subsidy and foreign exchange controls—asserting that, although they may cause short-term hardships, they are necessary to attract investments and enhance government finances.
The union leaders have called upon all workers to halt their activities from October 3 and have announced plans to organize street protests. The cost of fuel has contributed to the recent rise in food and commodity prices due to increased production and transport costs. Additionally, the Nigerian naira has depreciated significantly against the US dollar, with an average exchange rate of 780 naira to $1, leading to higher import costs.
The government has appealed to the union leaders to suspend the strike and create room for negotiations, highlighting the potential economic damage that the strike action could inflict.
President Bola Tinubu has underscored the necessity of ending the fuel subsidy, citing its excessive cost and the impracticality of maintaining artificially low petrol prices.
