FG, Labour Strike Deal to Reduce Transport Costs, Food Prices

In a move aimed at alleviating the economic strain on Nigerians, the Federal Government and organized Labour reached an agreement to implement measures that will lower transportation costs and food prices. This was confirmed following a meeting held at the Office of the Secretary to the Government of the Federation (SGF) in Abuja.

The meeting also resulted in the decision to incorporate Labour into the Economic Council, enabling workers’ representatives to actively participate in shaping economic policies. Additionally, the Federal Government committed to meeting with state governors to ensure that the new ₦70,000 minimum wage is fully implemented across the country by the end of October.

A source at the meeting revealed that the government will roll out over 2,000 Compressed Natural Gas (CNG) conversion kits and provide 45 more CNG-powered buses to Labour, in addition to the 45 already promised. This initiative is part of efforts to reduce transportation costs, which in turn will lower food prices by making it cheaper to move goods across the country.

“This is part of a broader plan to cushion the impact of the recent fuel subsidy removal on Nigerians,” the source explained. The government also pledged to speed up the completion of five refineries as part of its long-term strategy to reduce fuel prices.

Addressing concerns over delayed agreements, government representatives acknowledged past failures but reassured Labour that they are committed to improving communication and delivery on promises. The meeting is expected to mark the beginning of ongoing dialogue between the two parties.

House of Representatives Calls for Petrol Price Reduction

Meanwhile, the House of Representatives has urged the Federal Government to reverse the recent hike in petrol prices and implement measures to stabilize fuel and cooking gas costs. The House highlighted the economic burden these rising prices are placing on Nigerians, particularly low-income households, and called for targeted interventions such as subsidies or tax reductions on Liquefied Petroleum Gas (LPG).

In a related motion, lawmakers pushed for an accelerated repair of the country’s domestic refineries to boost local fuel production and reduce dependency on imports. They also called on the Central Bank of Nigeria (CBN) to introduce monetary policies that would mitigate the inflationary effects of fuel price hikes, especially in sectors like transportation, food, and healthcare.

This move by the House comes in response to widespread concerns that the escalating costs of fuel and essential goods are deepening financial hardship for Nigerians, with small and medium-sized enterprises (SMEs) particularly feeling the pinch.