In response to the recent removal of the fuel subsidy, the Federal Government of Nigeria has declared the removal of the value-added tax (VAT) on diesel for the next six months. This decision was announced by Femi Gbajabiamila, the Chief of Staff to President Bola Tinubu, following discussions with the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).
Key resolutions from the meeting include a provisional wage increment of N25,000 for all treasury-paid federal government workers over a six-month period. The government also committed to expedite the delivery of Compressed Natural Gas (CNG) buses to address public transportation challenges arising from the removal of the petrol subsidy.
Other commitments involve allocating funds for micro and small-scale enterprises and acknowledging the 8.57% increase in diesel prices. The Federal Government pledged to commence payments of N75,000 to 15 million households at N25,000 monthly from October to December 2023.
The National Bureau of Statistics reported a significant spike in diesel prices attributed to a 7.5% VAT and forex challenges. The government’s decision to remove VAT on diesel aims to alleviate the impact on pump prices across the nation.
Discussions also touched on longstanding issues between the Road Transport Employees Association of Nigeria (RTEAN) and National Union of Road Transport Workers (NURTW) in Lagos State. The labor unions, NLC and TUC, are currently deliberating the government’s propositions with the aim of potentially averting their planned industrial action.
The Minister of Information and National Orientation, Mallam Mohammed Idris, emphasized the government’s dedication to addressing concerns and urged workers to remain at their stations for more feasible solutions. The labor delegation, headed by NLC President Joe Ajaero, expressed hope for forthcoming consultations.
