IMPI Opposes NLC's New Wage Demands Amid Economic Reforms and Fuel Price Reductions
The Independent Media and Policy Initiative (IMPI) has strongly criticized the Nigeria Labour Congress (NLC) for its recent demands for higher wages and allowances for workers, citing the ongoing Middle East conflict as a complicating factor. In a policy statement signed by its Chairman, Dr Omoniyi Akinsiju, the Nigerian policy group argued that such demands are ill-timed, given the economic reforms implemented by the current administration since 2023.
IMPI maintained that the government has been actively working to stabilize the economy and address structural challenges, efforts that require time to yield sustainable results. The group warned that conceding to NLC's demands could undermine these ongoing reform initiatives by placing additional pressure on public finances. Specifically, prioritizing immediate wage increases and tax relief without corresponding productivity gains could widen fiscal deficits and weaken the broader economic recovery strategy.
Fuel Price Adjustments Following Dangote Refinery's Move
In a related development, the Nigerian National Petroleum Company Limited (NNPCL) retail outlets have reduced their petrol price, just three days after Dangote Refinery announced a significant drop in its gantry fuel price. Checks revealed that NNPCL filling stations in Abuja adjusted their prices down to N1,295 per litre from N1,361, a reduction of N71 per litre.
This move came after Dangote Refinery reduced the price of petrol at its gantry by N85, bringing it to N1,200 per litre from N1,285. However, not all retailers have followed suit; the Dangote-backed MRS filling station had yet to reduce its retail fuel pump price, which remained at N1,367 per litre at the time of reporting. Similarly, Ranoil, Empire Energy, Emedab, and Total filling stations had not reviewed their prices downward, with petrol dispensing between N1,370 and N1,395 per litre.
Calls for Government Partnership with Dangote Refinery
Amid these developments, the Chief Economist at SPM Professionals, Dr Paul Alaje, has advised the Federal Government to partner with Dangote Petroleum Refinery to provide palliatives to the masses, especially following the escalation of the Middle East crisis. He made this recommendation during an appearance on Channels Television's The Morning Brief.
According to Dr Alaje, returning the price of Premium Motor Spirit (PMS) or petrol to N800 per litre, as it was before the war, would significantly alleviate suffering among Nigerians. He explained, "Before the war, Dangote Refinery had slashed prices to N800 per barrel. Now that prices are soaring, what that means is that the cost of living will keep soaring, and food prices will escalate."
He further suggested that the government should explore maintaining the pre-war cost of crude to Dangote as a subsidy to Nigerians and instruct specific selling prices for products bought from the refinery. Dr Alaje also commended initiatives like Governor Seyi Makinde's announcement of N10,000 support, encouraging other states to adopt similar measures to ease the burden on citizens.
Organised Labour, including the NLC, had previously called for the payment of wage awards and the introduction of new allowances for civil servants to mitigate rising living costs. They also urged the government to suspend taxes for low-income earners, proposing that anticipated increases in oil revenue be used for immediate relief. However, IMPI's stance highlights the tension between short-term relief measures and long-term economic stability in the face of global and domestic challenges.
