President Bola Tinubu has taken the commendable step of enhancing the provisional wage increment he announced for workers, aiming to alleviate the economic hardships brought about by the removal of fuel subsidies.
In his Independence Day address, President Tinubu initially revealed a N25,000 wage increase for low-grade workers. However, following discussions between labor union leaders and a Federal government delegation yesterday evening, the wage increment has been extended to encompass all grades of workers.
Furthermore, in a statement released yesterday night by Information and National Orientation Minister Mohammed Idris, it was announced that, following negotiations between government officials and labor unions regarding the planned industrial action on October 3, the Federal government has approved an additional N10,000 to the provisional wage increment. Additionally, the Federal government has sanctioned the removal of Value Added Tax (VAT) on diesel products for the next six months.
Please read the complete statement below for further details.
‘’The Federal Government, on Sunday, October 1, 2023 met with the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) on measures to address the dispute arising from the removal of subsidy on Premium Motor Spirit (PMS).
The parties noted the following:
i) The Federal Government has announced N35,000 only as provisional wage award for all treasury-paid federal government workers for six months following further consultation with President Bola Tinubu.
ii) The Federal Government is committed to fast-tracking the provision of Compressed Natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy.
iii) The Federal Government commits to the provision of funds for micro and small-scale enterprises.
iv) VAT on diesel will be waived for the next 6 months.
v) The Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for a three-month period from October-December 2023.
MEETING HIGHLIGHTS:
In light of the discussions held during the meeting, the following were the major highlights:
i) The Federal Government urged the Labour unions not to embark on strike action as the issues in dispute can only be resolved when workers are at work.
ii) Labour Unions made case for higher wage award.
iii) A sub-committee to be constituted to work out the details of implementation of all items regarding government interventions to cushion the effect of fuel subsidy removal.
iv) The lingering matter of Road Transport Employees Association of Nigeria (RTEAN) and National Union of Road Transport Workers (NURTW) in Lagos State needs to be addressed urgently.
v.) NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above.
Governor Abdulrazak Abdulrahman of Kwara State and Chairman of the Nigeria Governors Forum (NGF) and Governor Dapo Abiodun of Ogun State, participated virtually in the meeting, chaired by the Chief of Staff to the President, Femi Gbajabiamila.
Also in attendance were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Information and National Orientation, Mohammed Idris, the Minister of Labour and Employment, Simon Lalong, the Minister of State, Labour, Nkeiruka Onyejeocha, the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, the Head of Service of the Federation, Dr. Folasade Yemi-Esan and the National Security Adviser (NSA), Mallam Nuhu Ribadu.
The labour delegation was led by NLC President, Joe Ajaero, Dr Tommy Etim Okon, Deputy President, TUC, NLC General Secretary, Emma Ugboaja, TUC General Secretary, Nuhu Toro, among others.
Mallam Mohammed Idris
Minister of Information and National Orientation
October 1, 2023”
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