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Nigeria’s main labour union, Nigeria Labour Congress (NLC) has said it plans to go on strike from Wednesday to protest against a hike in fuel prices. This will be the first big test for new President Bola Ahmed Tinubu, who scrapped fuel subsidies
Nigeria’s main labour union, Nigeria Labour Congress (NLC) has said it plans to go on strike from Wednesday to protest against a hike in fuel prices. This will be the first big test for new President Bola Ahmed Tinubu, who scrapped fuel subsidies. NLC’s President Joe Ajaero said that the NNPC (Nigerian National Petroleum Corporation) is a private limited liability company. It has illegally announced the price regime in the oil sector which NLC and its affiliates will object to.
Nigerians are struggling with surging fuel prices after newly elected President Bola Tinubu declared an end to popular subsidies. However, economic analysts opine that a hike was long overdue. Tinubu kept to his campaign promise and announced an end to the long-running arrangement, which has given Nigerians access to cheap petrol.
The continent’s biggest economy’s asset base is oil. But has a meagre refining capacity. For years, it has swapped crude for gasoline. Subsequently, the oil is subsidised for its domestic market, causing a huge drain on revenue, foreign exchange and contributing to ballooning debt. None of Tinubu’s predecessors had managed to scrap the hugely popular system, which has been a burden on public coffers for decades.
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Last year, the country spent more than 96 percent of its revenue on servicing its debt. The price of petrol tripled to around 540 naira ($1.20) at government-run filling stations on Wednesday, effectively putting an end to subsidized fuel for Nigerian
