UPDATED: FG Bows To Labour Unions; Removes VAT On Diesel, To Pay N75K To 15m Households
The Federal Government said it will remove the 7.5 percent Value Added Tax imposed on diesel, while also agreeing to pay all Federal workers N25,000 monthly for the next six months.
Diesel used to power generators now sells for over N1,000 a litre.
Government also agreed to pay 15 million households N25,000 a month for the next three months.
These were among the concessions government yielded in Sunday’s talks with the leaders of the Nigeria Labour Congress and the Trade Union Congress.
Minister of Information, Alhaji Idris Mohammed issued a statement cataloguing the various decisions reached at the meeting in Aso Rock, Abuja,48 hours to the beginning of a nationwide strike by labour.
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.
Governor Babajide Sanwo-Olu, who also joined the meeting virtually agreed resolve the dispute between Road Transport Employees Association of Nigeria (RTEAN) and National Union of Road Transport Workers (NURTW) in Lagos State.
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.
Others at the meeting were 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, Deputy President, TUC, Dr Tommy Etim Okon, NLC General Secretary, Emma Ugboaja, TUC General Secretary, Nuhu Toro, among others.
The NLC and TUC leaders said the unions 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.
Details of the offers by the Federal Government to TUC, NLC as released by Alhaji Idris:
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 N25,000 only as provisional wage increment for all treasury-paid federal government workers for six months.
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.
RESOLUTIONS:
In light of the discussions held during the meeting, the following resolutions were reached:
i) The issues in dispute can only be resolved when workers are at work and not when they are on strike.
ii) Labour Unions argued for higher wage award and the Federal Government Team promised to present Labour’s request to President Bola Tinubu for further consideration.
iii) A sub-committee to be constituted to work out the details of implementation of all items for consideration 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 and Lagos State Governor, Babajide Sanwo-Olu, who participated virtually, pledged to resolve the matter.
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.
