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Following outrage from Nigerians and increasing cost of living, President Bola Tinubu is considering to re-introduce petrol subsidy as crude oil prices and foreign exchange rates continue to increase.
According to sources close to the presidency the proposal is “firmly on the table” as Nigerians continue to lament high cost of living under following the removal of petrol subsidy in May 2023.
The Nigeria Labour Congress (NLC) on Monday vowed to embark on a nationwide strike without formal notice to the Federal Government if there is another increase in the pump price of fuel.
The NLC President, Comrade Joe Ajaero, made the declaration at the ongoing African Alliance of Trade Unions meeting in Abuja on Monday, August 14, 2023.
Ajaero also called on the Federal Government to change what he described as “those bad economic policies that make our wages next to nothing”.
The Kenyan government, on Monday, re-introduced fuel subsidies to curb soaring prices of petrol, kerosene, and diesel in the country.
The move came after months of violent anti-government protests over the burden of high cost of living.
According to a presidency official, the “realistic” amount of petrol consumed in the country is now known following the removal of subsidy on Tinubu’s inauguration, hence the amount spent on subsidy “can now be controlled”, TheCable reports.
On Monday, the Nigerian National Petroleum Company (NNPC) Limited said there are no plans to hike pump prices despite the rise in crude oil prices, landing cost, and fall in the value of the naira.
This is understood to be an option for Tinubu to keep the current prices, although private importers have not made a definite pronouncement on any possible adjustments.
But speculations around another increase in the pump price of petrol (currently at over N600) have caused tensions across the country, leading to panic buying in the early hours of Tuesday.
Since Tinubu announced the removal of the petrol subsidy, Nigerians have had no respite from price hikes.
Foreign exchange challenges, coupled with the unrestrained slump of the naira — Nigeria’s local currency — have led to a sustained upward trend, in the prices of goods and services.
On Monday, MoneyCentral reports that the Central Bank of Nigeria (CBN) revealed plans to adopt new measures to stabilize the naira from falling against the dollar.