NLC Warns Against Accepting World Bank’s N750/litre Fuel Price Proposal, Predicts Potential Anarchy

The Nigeria Labour Congress (NLC) has issued a stern warning to the Federal Government, cautioning against heeding the World Bank’s suggestion to raise the pump price of petrol, also known as Premium Motor Spirit (PMS), to N750/litre. Benson Upah, the Head of Information for NLC, emphasized that any further hike in petrol prices could lead to chaos in the country.

In response to the World Bank’s recommendation, Upah urged the government to reject the proposal, citing potential social unrest. The current petrol prices range between N620 and N650/litre across most locations in Nigeria.

Oil marketers countered, stating that without government subsidies, the cost of PMS would be around N1,000/litre. However, the Federal Government denied these claims on Thursday, asserting that there is no ongoing subsidy on petrol.

The World Bank had urged the Federal Government to cease subsidy payments on petrol and increase the product’s cost to N750/litre, emphasizing that current fuel prices in Nigeria do not reflect the actual market conditions.

Reacting to the World Bank’s stance, the NLC criticized the institution as a globalist entity with little regard for the welfare of Nigerians. Upah stressed that the current petrol pricing regime has already caused significant challenges in the country.

In a counterargument, the government insisted that there is no subsidy on petrol, and President Bola Tinubu, from his first day in office, made it clear that the subsidy would not be sustained. The Minister of Information and National Orientation, Mohammed Idris, highlighted that the removal of the subsidy has increased revenue for the Federation Account.

However, oil marketers disagreed with the government’s assertion, stating that subsidy still exists, and the government fears unrest if it is completely removed. They argued that even at N750/litre, petrol would still be subsidized, pointing out global fuel prices as a reference.

As the debate continues, fuel queues have appeared at filling stations, prompting the Independent Petroleum Association of Nigeria to seek more supply from the Nigerian National Petroleum Company Limited. The association pledged full participation in the government’s Compressed Natural Gas program as an alternative to petrol.

In related developments, there are calls for Civil Society Organizations to organize nationwide peaceful demonstrations to address the economic challenges faced by Nigerians following the removal of the fuel subsidy. The government plans to scrutinize the dollar oil revenue flow from the subsidy removal, aiming for transparency and accountability. The details of this plan will be released upon completion.

As the nation grapples with these issues, concerns grow over the immediate and long-term impacts of the subsidy removal on the socio-economic well-being of Nigerians.