Following the withdrawal of fuel subsidy and the subsequent increase in the price of Premium Motor Spirit (PMS) by the Federal Government of Nigeria, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) issued a strike notice set to commence on October 3, 2023.
However, a meeting was convened by the Federal Government to prevent the strike, resulting in several agreements being reached between the government and the labor unions. Here are the key points of the agreement:
- The Federal Government will implement a wage award of N35,000 for all Federal Government workers starting in September, pending the signing of a new national minimum wage into law.
- A minimum wage committee will be inaugurated within one month from the date of the agreement.
- The Federal Government will suspend the collection of Value Added Tax (VAT) on Diesel for six months, beginning in October 2023.
- The government commits to allocating N100 billion for the provision of high-capacity Compressed Natural Gas (CNG) buses for mass transit in Nigeria. Additionally, 55,000 CNG conversion kits will be provided to kickstart an auto gas conversion programme.
- Various tax incentive measures will be implemented for the private sector and the general public.
- The leadership crisis within the National Union of Road Transport Workers (NURTW) and the purported proscription of the Road Transport Employers’ Association of Nigeria (RTEAN) will be addressed by the Federal Government in line with relevant labor laws.
- Outstanding salaries and wages of tertiary education workers in federal-owned educational institutions will be referred to the Ministry of Labour and Employment for further resolution.
- The Federal Government will provide N25,000 per month for three months to 15 million households, including vulnerable pensioners, starting in October 2023.
- Subsidised distribution of fertilisers to farmers across the country will be increased.
- State governments, through the National Economic Council and Governors Forum, will be encouraged to implement wage awards for their workers, including local government and private sector workers.
- The Federal Government will provide funds for Micro and Small Scale Enterprises (MSMEs) in line with the President’s announcement on August 1, 2023. MSME beneficiaries are expected to promote the principle of decent jobs.
- A joint visitation will be conducted to assess the rehabilitation status of refineries.
- All parties commit to adhering to the principles of social dialogue in future engagements.
- The NLC and TUC have agreed to suspend the planned indefinite nationwide strike for 30 days, which was scheduled to commence on October 3, 2023.
- The memorandum will be filed with the relevant court of competent jurisdiction within one week as consent judgement by the Federal Government.
This agreement effectively averts the nationwide strike that was looming due to the removal of fuel subsidy and the associated increase in fuel prices.
