In a bid to alleviate the impact of the recent removal of the petrol subsidy, the Nigerian federal government has announced a series of measures, including the waiver of the value-added tax (VAT) on diesel for the next six months. This announcement comes following extensive discussions between government officials and the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).
The decision was reached at the end of a four-hour meeting held at the State House in Abuja on Sunday, where resolutions were agreed upon between government representatives and labor leaders.
During the meeting, the Speaker of the House of Representatives, Femi Gbajabiamila, disclosed that both parties had come to a consensus on various resolutions to mitigate the effects of the subsidy removal.
A statement released by Mohammed Idris, the Minister of Information and National Orientation, outlined several key agreements reached during the meeting. These measures are intended to provide relief and support for Nigerians grappling with the subsidy removal.
Key highlights of the resolutions include:
Waiver of VAT on Diesel: The federal government will waive the VAT on diesel for the next six months, offering some relief to businesses and individuals who rely on diesel for power generation and transportation.
Provision of Compressed Natural Gas (CNG) Buses: The government is committed to expediting the delivery of CNG buses to improve public transportation and reduce the challenges associated with the subsidy removal.
Funds for Micro and Small-Scale Enterprises: The government will allocate funds to support micro and small-scale enterprises, aiding economic stability and job creation.
Direct Cash Transfer: The federal government will initiate a direct cash transfer program, with payments of N75,000 to 15 million households at a rate of N25,000 per month. This program will run from October to December 2023, providing direct financial assistance to vulnerable families.
Formation of a Sub-Committee: A sub-committee will be established to work out the implementation details of all the interventions designed to cushion the effects of the fuel subsidy removal.
The NLC and TUC, representing Nigerian workers, will consider these offers from the government, with the possibility of suspending the planned strike to allow for further consultations and the implementation of the agreed-upon resolutions.
In response to the government’s commitments, Joe Ajaero, President of NLC, stated that they would take these promises to their respective organizations for consideration, emphasizing the need for practical and workable solutions.
Tommy Etim Okon, Acting President of TUC, echoed similar sentiments, indicating that further discussions within their organizations would determine the next steps.
