Home NEWS Subsidy removal: Address organised labour’s demands, Reps tell Tinubu

Subsidy removal: Address organised labour’s demands, Reps tell Tinubu

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Members of the House of Representatives on Tuesday urged President Bola Ahmed Tinubu to address Organised Labour’s demands on the controversies trailing the removal of fuel subsidy.

The resolution was passed sequel to the adoption of a motion of urgent Public Importance sponsored by Hon. Unyime Idem, who underscored the need for an amicable resolution of the agitation to embark on nationwide industrial action.

In his lead debate, Hon. Idem acknowledged that the abrupt announcement of the fuel subsidy has impacted negatively on the well-being of Nigerian citizens.

 

He said: “The House notes that the Federal Government announced on May 29, 2023, the removal of fuel subsidy as a means of saving the economy from total collapse and financial crunch.

“The House also notes, that this announcement has not been well received by the Nigerian Labour Congress and Trade Union Congress, who believe that it was made abruptly without proper consultations with relevant stakeholders and will further impose hardship on Nigerians.

“The House further notes, that subsidies were initially implemented in Nigeria in the 1970s in response to the 1973 oil price shock, which caused a global surge in oil prices. If international rates were adopted, Nigerians would have had to pay more, necessitating the government to regulate local pricing for energy items.

“The House acknowledges that subsidy payments have been depleting the national resources o our dear nation. Earlier this year, the Nigerian National Petroleum Company Limited (NNPCL) announced that the country spends over N400 billion monthly petroleum subsidy.

“The House is worried that over $10 billion has been spent on subsidy between 2015 and the present date.

“Additionally, the government budgeted a staggering 3.36 trillion naira for subsidy payments between January and June of this year alone.

“The House is also worried, that the continuous payment of subsidies has significant implications for the economy and the allocation of scarce resources.

“The House recognizes the right of the Nigeria Labour Congress (NLC) to engage in strike action on matters that impact the well-being of Nigerian workers.

“The House also recognizes the potential consequences of the proposed strike, including increased hardship for Nigerians, loss of work hours and financial resources, disruptions in economic activities, exacerbation of the country’s economic challenges, and potent disturbances to public peace.

“The House further recognizes that the Federal Government has chosen a dialogue approach to engage with labour leaders in order to find a way forward, considering the delicate nature of the issue.

“The House believes that dialogue is the preferred option over a confrontational stance by labour unions, as it offers the opportunity for fruitful deliberations, compromise, and a peaceful resolution of the issues at hand,” he noted.

To this end, the lawmakers urged the leadership of the Nigerian Labour Congress to suspend its planned strike action and embrace dialogue, just as it mandated the joint Committees on Labour and Petroleum Downstream to collaborate with the NLC and relevant authorities to ensure compliance with these resolutions.

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