The Nigeria Labour Congress has strongly criticized the recent hike in petrol prices, describing it as a severe blow to the already strained Nigerian masses.
Senior NLC officials expressed their concerns on Sunday, calling the move insensitive and urging the government to prioritize inclusive dialogue on critical issues.
This comes as oil marketers and the Dangote Petroleum Refinery attributed the increase to rising global crude oil prices and dismissed claims of exploitative practices.
Reacting to the price hike, the NLC Deputy President, Prof. Theophilus Ndubuaku, decried the lack of consultation with key stakeholders before implementing the changes. He argued that such an approach deepens economic hardship and fails to prepare Nigerians for the consequences of fuel subsidy removal.
“This pump price hike will not only affect food and transport costs but will also worsen inflation and erode the value of the naira,” Ndubuaku said.
He criticized what he described as “Tinubunomics,” calling for lessons from former administrations that engaged stakeholders on sensitive economic decisions.
“In the past, monthly discussions with stakeholders were held to address concerns. Today, there is no room for such dialogue, leaving Nigerians in frustration,” he added.
The Lagos NLC Chairperson, Sessi Funmi, blamed oil marketers for Nigeria’s economic woes, accusing them of exploiting the deregulated market for profit. She alleged that marketers manipulate prices, further burdening the masses.
“Marketers are the problem. They’ve been receiving subsidies without supplying products and now want to determine prices when they don’t even own refineries. Nigerians cannot continue to suffer due to their greed,” Funmi stated.
She, however, commended the federal government for reviving two refineries in Port Harcourt and Warri, emphasizing that these efforts should result in reduced petrol prices. Funmi urged the government to emulate the Dangote refinery’s direct supply model and eliminate middlemen who inflate costs.
In its defense, the Dangote Petroleum Refinery clarified that the price increase was due to higher global crude oil costs, not inefficiencies at the refinery. The company revealed it had adjusted its ex-depot price from N899.50 to N950 per litre, resulting in a retail price of N970 per litre across Nigeria.
“While crude oil prices have risen by 15%, we’ve only made a 5% adjustment to our prices, absorbing a significant portion of the costs to shield Nigerians,” the Dangote Group spokesman, Anthony Chiejina, said.
Chiejina also announced plans to publish weekly updates on ex-depot, ex-vessel, and pump prices to promote transparency and ensure consumers are not exploited.
Petroleum marketers, under the Petroleum Products Retail Outlets Owners Association of Nigeria, argued that the instability in petrol prices was beyond their control. They pointed to global crude oil prices and the fluctuating naira as the main factors driving the changes.
“Prices will rise and fall depending on international crude oil prices and the exchange rate. This is the reality of a fully deregulated market,” PETROAN representatives stated.
As of Sunday, crude oil prices remained high, with Nigeria’s Brass River crude trading at $83.69 per barrel. Analysts warned that the upward trend in crude oil prices, coupled with exchange rate instability, could result in further increases in petrol prices.
Labour unions and experts are urging the government to prioritize transparency, stakeholder engagement, and long-term strategies to mitigate the economic impact on Nigerians.
The NLC called for the implementation of alternative energy solutions, including Compressed Natural Gas buses, as promised by the government.
