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Fuel Price Surge: NLC seeks tax relief, wage award as Middle East war bites harder

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The Nigeria Labour Congress (NLC) has urged the Federal Government to immediately introduce relief measures to ease the mounting economic pressure on Nigerians following the recent spike in petrol prices linked to the ongoing Middle East conflict involving the United States, Israel and Iran.

The labour union called for urgent interventions including a cost-of-living allowance for workers, a wage award, tax relief for low-income earners, and accelerated rehabilitation of Nigeria’s public refineries.

According to the NLC, petrol prices have climbed sharply to between N1,170 and N1,300 per litre, worsening the already severe economic hardship faced by workers and millions of citizens across the country.

In a strongly worded statement titled “Save Nigerians From This Shock: An Urgent Relief Has Become Necessary,” signed by its president, Joe Ajaero, the labour body warned that the country could face social unrest if decisive steps are not taken to protect citizens from the economic fallout.

The statement said, “NLC voices the collective anguish of millions of Nigerian workers who are bearing the brutal cost of a global capitalist crisis they did not create. The military escalation involving the United States, Israel, and Iran has sent shockwaves through global oil markets. As a result, petrol prices in Nigeria have skyrocketed to between N1,170 and N1,300 per litre.”

The union argued that the price surge represents a major blow to Nigerians already struggling with inflation and declining purchasing power.

“This is a direct assault on the Nigerian people. While imperialist rivalries play out abroad with bombs and military escalation, Nigeria’s working class is being bombarded with poverty and hunger because we have failed to ensure that our public refineries are operational.”

The NLC said the crisis has further exposed structural weaknesses in Nigeria’s downstream petroleum sector and demonstrated the country’s vulnerability to international oil market shocks.

“This crisis has brutally exposed the fragility of Nigeria’s downstream petroleum sector. It has stripped away the illusion that local refining alone would shield the country from global shocks. The Dangote Refinery has adjusted its prices in line with global volatility, passing the burden directly to the masses. This undermines the narrative that domestic production alone guarantees price stability.”

According to the labour body, Nigeria will remain exposed to global economic disruptions unless the country restores full public refining capacity.

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“As long as Nigeria remains dependent on a market-driven pricing structure tied to global fluctuations, and refuses to revive its public refining capacity, the country will remain hostage to international conflicts and market speculation.”

The union also recalled its earlier warnings about the risks of allowing Nigeria’s public refineries to deteriorate.

“The NLC had earlier warned about the danger of sabotaging public refineries in ways that could create monopolistic control in the downstream sector. This moment must serve as a wake-up call to the managers of Nigeria’s economy.”

The statement stressed that Nigeria must stop relying on foreign markets for fuel pricing while neglecting domestic infrastructure.

“No nation achieves economic independence by exporting jobs and importing prices. The government must immediately halt the decay of the public sector and ensure the full rehabilitation and operation of the Port Harcourt, Warri, and Kaduna refineries. This is not a favour but the right of the Nigerian people, enabling the country to cushion itself against an increasingly hostile global economic environment.”

The labour organisation warned that rising fuel costs are already affecting transportation, food prices, and workers’ ability to sustain basic living standards.

“The soaring cost of petrol, PMS, and diesel (AGO) has made transportation a heavy burden on workers. Food inflation continues to rise, while meagre wages are being swallowed by the rising cost of living. When workers cannot afford transportation to their workplaces, the economy stalls. When families cannot afford three meals a day, society sits on a keg of gunpowder.”

The NLC further argued that the government cannot simply attribute the crisis to international events without taking steps to mitigate the impact at home.

“The government cannot foreclose any action that would offer relief to the people. It is the duty of the state to act decisively to prevent the suffering of its citizens, rather than helplessly attributing the crisis solely to the Middle East conflict.”

Citing economic projections, the labour body noted that the country may benefit financially from rising global oil prices.

“Recent projections by the Nigeria Economic Summit Group (NESG) indicate that Nigeria may gain an estimated N30 trillion oil windfall from the ongoing Middle East crisis.”

The NLC said such revenue must be directed toward cushioning the hardship faced by ordinary Nigerians.

“The Nigeria Labour Congress therefore demands the following urgent actions: immediate wage award and cost-of-living allowance (COLA) for all workers to cushion the rising cost of living; expansion and overhaul of the Cash Transfer programme to ensure transparency and guarantee that assistance reaches the most vulnerable citizens, with transfers adjusted to reflect inflation; immediate tax relief for workers, including suspending regressive taxes on low-income earners and taxing the informal sector. Taxing minimum-wage earners amounts to extortion. The NLC also demands a clear timeline for the full operationalization of all public refineries. The Nigerian state must be held accountable for the billions of naira spent on turnaround maintenance.”

The union warned that continued economic pressure on workers could have far-reaching consequences for the country.

“Nigerian workers are being pauperized and subjected to immense suffering. Workers are not statistics—they are the engine of the nation. When the engine overheats, the entire vehicle crashes.”

It also cautioned the government against mismanaging potential oil revenue gains from the crisis.

“The estimated N30 trillion oil windfall expected from the Middle East crisis must not disappear like previous windfalls. These resources must be invested in the Nigerian people and used to cushion the economic hardship caused by the current crisis.”

Calling for dialogue, the labour movement urged authorities to engage workers and citizens on solutions.

“The government must engage in sincere social dialogue with Nigerian workers and the broader citizenry. Using the Middle East crisis as a justification for policies that deepen poverty is unacceptable. The primary duty of the government is to ensure the welfare and security of its citizens. We demand action. We demand justice. We demand survival.”

The post Fuel Price Surge: NLC seeks tax relief, wage award as Middle East war bites harder appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.

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