Fuel Subsidy

File photo of past street activities of Nigeria Labour Congress. The Nigerian Industrial Court ruled that the Nigeria Labour Congress and the Trade Union Congress, which represent workers from the public and private sectors, could not proceed with the industrial action. — File photo of past activities of the Nigeria Labour Congress. The Nigerian Industrial Court ruled that the Nigeria Labour Congress and the Trade Union Congress, which represent workers from the public and private sectors, could not proceed with the industrial action.

ABUJA (Reuters) – Nigerian labour unions representing millions of workers have been blocked from staging a general strike in protest at government plans to increase petrol prices by up to 67 percent.

The unions announced last week that they would hold an indefinite strike from Wednesday unless the government reversed its decision to scrap a costly fuel subsidy scheme and raise gasoline prices to help it to tackle Nigeria’s worst economic crisis in decades.

Ministers hope the move will help to fund fuel imports needed because Nigeria’s refineries have been neglected for years.

The Nigerian Industrial Court ruled that the Nigeria Labour Congress and the Trade Union Congress, which represent workers from the public and private sectors, could not proceed with the industrial action.

“The defendants are hereby restrained from carrying out the threat contained in their communique,” Justice Babatunde Adejumo said in his ruling on Tuesday, citing the risk of civil disorder and people going hungry.

Nigeria tried to end fuel subsidies in 2012, doubling the price of gasoline overnight, but later reinstated some of the subsidy to end a wave of protest strikes held in defiance of another court ruling.

Talks between the unions and government officials aimed at averting industrial action were scheduled to take place on Tuesday.

The Nigeria Labour Congress and the Trade Union Congress could not be reached for immediate comment on whether they would obey the latest court order or if the talks would go ahead

CITA also asked Professor Wole Soyinka (pictured), Pastor Tunde Bakare, Hon. Patrick Obahiagbon, the leadership and members of the Save Nigeria Group to join in issuing the apology.

By Sylvester Ugwuanyi (Daily Post)

A group which goes by the name: Concerned Ijaw Transformation Ambassadors, CITA, has called on the national leader of the All Progressives Congress, APC, Bola Tinubu and the national chairman of the party, Chief John Oyegun to tender an unreserved apology to former President, Goodluck Jonathan for opposing the removal of fuel subsidy on the 1st of January, 2012.

Making this demand in a press statement signed by its President, Arerebo Salaco Yerinmene Peters and Spokesman, Obiri Wenebokefe Jonathan, CITA also asked Professor Wole Soyinka, Pastor Tunde Bakare, Hon. Patrick Obahiagbon, the leadership and members of the Save Nigeria Group to join in issuing the apology.

It averred that the professed patriots incited and led Nigerians to protest against the removal of subsidy on Premium Motor Spirit, otherwise known as petrol, adding that, “They blatantly criticized this policy of Dr. Goodluck Jonathan as a sheer scam targeted at unleashing untold hardship to the average Nigerian and sponsored protests and demonstrations which even led to the death of some Nigerians.”

The statement continued, “We are berserkly puzzled that these same persons who feigned patriotism and advocacy for social justice turned a new leaf and now pioneer and celebrate the removal of fuel subsidy under President Muhammadu Buhari.

“Have they become proponents of a new school of thought? Was their disenchantment with the removal of fuel subsidy under Dr. Goodluck Jonathan triggered by sentiments of ethnic and political differences? “Was the Save Nigeria Group a sheep covering veiling a calculated synergy to make Nigeria ungovernable for Dr. Goodluck Jonathan?

“It is crystal clear that the emotions of a great chunk of naïve and gullible Nigerians were incited and their passions ignited to fight against the success of the Nigerian Federal Government under a peace loving and law abiding democratic President tagging it as being anti-people.

“On behalf of the foregoing, we direct the Save Nigeria Group and its leaders and members to tender an unreserved apology to Dr. Goodluck Ebele Jonathan.”

Lifting of the subsidy on gas would nearly double the price amid a massive fuel shortage

LAGOS, Nigeria (AP) — Nigeria’s government announced Wednesday it is lifting a controversial subsidy on gas, nearly doubling the price amid a massive fuel shortage and militant attacks on oil installations in Africa’s biggest petroleum producer.

Previous attempts to end the subsidy have provoked riots and, in 2012, the biggest demonstrations ever seen, forcing the government to retract.

The 4-million-strong Nigeria Labour Congress immediately announced that it and its civil society allies will fight the “most audacious and cruel” move that will “make life more miserable” for Nigerians struggling with spiraling inflation and increases in electricity tariffs despite more blackouts. The year-old government of President Muhammadu Buhari said the decision was taken at a meeting that included legislators, labor leaders and Enough Is Enough Nigeria, which helped lead the 2012 protests. The congress said this implied an agreement that never happened as it advised the meeting that current prices should stand.

Petroleum Minister Ibe Kachikwu announced the new price of a maximum of 145 naira (73 U.S. cents) a liter, up from 86.5 naira (43 cents). He noted that the months-long scarcity has meant Nigerians already are paying up to 250 naira ($1.26) a liter on the black market.

Kachikwu said importers have had difficulty sourcing foreign currency because of a huge decline in foreign exchange earnings caused by low oil prices. Nigeria refines only enough crude to provide half its needs.

In this photo taken Sunday April 10, 2016, motorcycles wait for fuel at the petrol station in Abuja, Nigeria. Nigeria's government announced Wednesday May 11, 2016 it is lifting a controversial subsidy on gas, nearly doubling the price amid a massive fuel shortage and militant attacks on oil installations in Africa's biggest petroleum producer. (AP Photo/Sunday Alamba) — In this photo taken Sunday April 10, 2016, motorcycles wait for fuel at the petrol station in Abuja, Nigeria. Nigeria’s government announced Wednesday May 11, 2016 it is lifting a controversial subsidy on gas, nearly doubling the price amid a massive fuel shortage and militant attacks on oil installations in Africa’s biggest petroleum producer. (AP Photo/Sunday Alamba)

He said the government is liberalizing the market, allowing any Nigerian entity to import fuel using foreign currency from any source. That would include foreign exchange bureaus where the naira recently has traded at up to double the official rate of 199 naira to the dollar.

The meeting was led by Vice President Yemi Osinbajo, who has said that the subsidy costs the government $5 billion a year.

Eighty percent of Nigeria’s foreign currency comes from the petroleum industry, hit by renewed militant attacks that have cut production from 2.2 million barrels a day to about 1.68 million.

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