By Michael Oche
The Nigeria Labour Congress (NLC) has called for emergency intervention by the Federal Government to cushion the impact of rising transportation costs on workers and other Nigerians following the increase in fuel prices.
The NLC said the hike in transport fares had further deepened the poverty of workers and pushed their quality of life to its limits.
Speaking to Nigerian Pilot, NLC spokesperson, Comrade Benson Upah, said the increase in transportation costs would have a ripple effect on the wider economy, with the prices of other goods and services expected to rise.
He said, “When transportation costs go up, everything else follows, including school fees. So, as it were, we are trapped.”
According to him, although the latest increase in fuel prices is linked to the ongoing conflict in the Gulf, the situation should not be allowed to become this difficult for Nigerians, particularly given the country’s status as an oil-producing nation.
Upah said Nigeria also had sufficient local refining capacity, arguing that the government could reduce the cost of refined petroleum products by making crude oil available to local refiners at affordable rates.
He specifically called for crude oil to be sold to local refiners in naira, saying such an arrangement would reduce their production costs and ultimately lower the price of petroleum products for consumers.
“This reduces cost of production which naturally will be passed to consumers. This constitutes a buffer or smart subsidy. Serious countries all do this for their citizenry,” he said.
The NLC also faulted what it described as the government’s failure to adequately cushion the impact of rising international oil prices on Nigerians.
Upah said the government was benefiting from the increase in international oil prices, noting that crude oil was currently selling about $35 to $40 per barrel above the figure contained in the budget.
He argued that the additional revenue accruing to the government should provide room for measures to protect citizens from the consequences of rising fuel and transportation costs.
“Government ought to be satisfied with this. But it is eating from abroad and at home — eating with both hands at once! This is unreasonable and unacceptable,” he said.
The labour centre therefore demanded immediate emergency interventions to mitigate the effects of the fuel price hike and rising transportation costs across the country.
It also urged the Federal Government to urgently make crude oil available to local refiners, noting that some domestic refiners were still importing substantial quantities of crude despite Nigeria’s status as an oil-producing country.
“These are not the best of times,” the NLC said.
