NLC Calls For Wage Increase, Tax Relief Amid Petrol Price Hike

The Nigeria Labour Congress (NLC) has called on the federal government to introduce an immediate cost-of-living allowance and tax relief for Nigerian workers following the recent surge in the price of petrol triggered by the ongoing conflict in the Middle East.

In a 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 sharp increase in the price of Premium Motor Spirit (PMS) has worsened the economic hardship faced by workers and ordinary citizens across the country.

The NLC demanded an immediate wage award and cost-of-living allowance (COLA) for workers to cushion the impact of rising living costs. It also called for the expansion and overhaul of the government’s cash transfer programme to ensure transparency and guarantee that support reaches the most vulnerable Nigerians, with payments adjusted to reflect inflation.

The labour union further urged the government to introduce immediate tax relief for workers, including the suspension of regressive taxes on low-income earners.

The group accused the government of leaving Nigerians exposed to volatile global oil prices driven by escalating geopolitical tensions.

“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 statement said.

“The military escalation involving the United States, Israel, and Iran has sent shock waves through global oil markets. As a result, petrol prices in Nigeria have skyrocketed to between N1,170 and N1,300 per litre.”

According to the union, the situation represents a direct attack on the welfare of Nigerians.

“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 organisation argued that the crisis has exposed the vulnerability of Nigeria’s downstream petroleum sector and challenged claims that domestic 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.

“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 labour body also urged the government to revive the country’s public refineries, insisting that billions spent on turnaround maintenance must be accounted for.

“No nation achieves economic independence by exporting jobs and importing prices,” the NLC said.

“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.”

The NLC warned that the rising cost of petrol and diesel has made transportation increasingly unaffordable for workers while food prices continue to soar.

“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 statement added.

The union also referenced projections by the Nigeria Economic Summit Group (NESG), which estimated that Nigeria could gain about N30 trillion in oil windfall from the ongoing Middle East 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,” the NLC said.

It also urged the government to engage in sincere social dialogue with workers, stressing that using the Middle East crisis as 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 union added.

The NLC’s demand came as global oil prices continue to surge amid the escalating conflict involving the United States, Israel and Iran. Brent crude rose by about three per cent on Monday to around $106.50 per barrel, intensifying pressure on fuel markets worldwide.

Nigeria’s downstream petroleum sector has been experiencing sharp price volatility, with marketers struggling to cope with frequent adjustments in fuel prices.

The crisis has also affected operations at the Dangote Refinery, which has repeatedly revised its petrol prices in response to global oil market movements.

On March 2, the refinery increased its ex-depot price from N774 per litre to N874 per litre, citing rising crude oil prices and higher replacement costs. Within days, the gantry price rose again to N995 per litre, representing an increase of about N221 within four days.

Subsequent adjustments pushed the price further to N1,175 per litre, marking the fourth revision since early March. Although the refinery temporarily reduced the price by N100 to N1,075 per litre after crude prices briefly dropped, the reduction was later reversed as oil prices surged again.

Meanwhile, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis‑Harry, warned that the volatility in fuel prices may persist as long as the Middle East conflict continues.

“So long as this war is raging in the Middle East, we will continue to have this fluctuation because the price of crude oil will continue to go high,” he said.

“The price of crude oil came down just a few dollars, and then it went up high again because the war is premised on the body language of the President of America and his speeches.”

Gillis-Harry added that retailers are currently sourcing most of their products from the Dangote Refinery due to limited alternatives.

“So, for us, we are only buying products from Dangote now. Maybe the government may consider some other options, but where will you even import from?”

He also called on the federal government to establish a domestic energy bank to provide financing for operators in the sector.

“Banks are not available to give us loans, and that’s why we have requested the government to set up a domestic energy bank that can take care of all the energy sources that are needed,” he said.