FG Strikes Deal with NLC: Strike May be Suspended


In a significant turn of events, the imminent nationwide indefinite strike, slated to commence on October 3, might be averted. A historic meeting took place on Sunday, October 1, 2023, between representatives of the Federal Government of Nigeria, labor leaders from the Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC).

This landmark meeting, chaired by Femi Gbajabiamila, Chief of Staff to President Bola Tinubu, marks a pivotal moment in the ongoing negotiations between the government and labor unions.

The key negotiators, Mr. Joe Ajaero, President of the NLC, and Chief Gbajabiamila, engaged in a fruitful dialogue that has the potential to reshape the industrial relations landscape in Nigeria. The discussions centered on finding an amicable resolution to the contentious issues arising from the removal of the fuel subsidy, which had ignited tensions and prompted the labor unions to announce their intention to embark on an indefinite strike.

Following hours of negotiations and deliberations, both parties emerged with a series of agreements aimed at addressing the grievances of the labor unions and the concerns of the Federal Government. These agreements, which encompass economic and social reforms, hold the promise of not only averting the impending strike but also laying the groundwork for a more equitable and prosperous future for Nigerian workers and citizens.

Chief Gbajabiamila, speaking on behalf of the Federal Government, emphasized the government’s commitment to addressing the subsidy removal issue comprehensively. He stated that the government would implement measures aimed at mitigating the impact of subsidy removal on the Nigerian populace. This commitment is a significant step forward in addressing the concerns of the labor unions.

In a press conference held shortly after the meeting, NLC President Mr. Joe Ajaero expressed optimism regarding the outcomes of the negotiations. He stated that he would present the government’s offers to the union members for their consideration, with a view to potentially suspending the planned strike action. Ajaero’s willingness to consult with union members underscores the importance of the decisions made during this meeting.

Additionally, a statement released by the Minister of Information and National Orientation, Mallam Mohammed Idris, outlined the specific agreements reached during the meeting:

Provisional Wage Increment: The Federal Government has agreed to provide a provisional wage increment of N25,000 for all treasury-paid federal government workers for a duration of six months. This move is intended to alleviate the financial burden on workers and their families.

Compressed Natural Gas (CNG) Buses: The government has committed to expedite the provision of CNG buses to improve public transportation and mitigate the challenges arising from the removal of the Petroleum Motor Spirit (PMS) subsidy. This initiative aims to enhance the overall mobility of Nigerians.

Support for Micro and Small-Scale Enterprises: The Federal Government has pledged to allocate funds to support micro and small-scale enterprises, which are crucial drivers of economic growth and job creation.

VAT Waiver on Diesel: In a bid to reduce the cost of living, the government will waive Value Added Tax (VAT) on diesel for the next six months.

Direct Cash Transfer: The Federal Government will initiate a direct cash transfer program, providing N75,000 to 15 million households at a rate of N25,000 per month. This financial assistance will be extended over a three-month period, commencing from October to December 2023. It aims to alleviate the financial hardships faced by vulnerable households.

The joint statement issued by the Federal Government and labor unions emphasized their shared belief that resolving the ongoing disputes is best achieved when workers are engaged in their duties rather than on strike. The government acknowledged the labor unions’ call for higher wage awards and pledged to present these demands to President Bola Tinubu for further consideration.

To ensure the effective implementation of the agreements, both parties agreed to establish a sub-committee tasked with working out the details of the government’s interventions to cushion the effects of fuel subsidy removal. This collaborative approach seeks to address the concerns of both the labor unions and the government while promoting transparency and accountability.

Additionally, the statement acknowledged the urgent need to resolve the lingering issues between the Road Transport Employees Association of Nigeria (RTEAN) and the National Union of Road Transport Workers (NURTW) in Lagos State. Lagos State Governor, Babajide Sanwo-Olu, who participated virtually in the meeting, pledged to expedite the resolution of this matter, thereby promoting peace and stability in the transportation sector.

The outcome of this meeting represents a significant step toward resolving the contentious issues that have plagued labor relations in Nigeria. The willingness of both parties to engage in dialogue and reach mutually beneficial agreements underscores the importance of peaceful negotiations in resolving national crises. While there may still be challenges ahead in the implementation of these agreements, the prospect of averting an indefinite strike and fostering a more harmonious labor environment is a cause for optimism among Nigerians.

In conclusion, the meeting between the Federal Government and labor unions on October 1, 2023, marks a turning point in the ongoing negotiations surrounding the removal of the fuel subsidy. The agreements reached during this historic meeting hold the promise of alleviating the financial burden on Nigerian workers, improving public transportation, and supporting small-scale enterprises. As both parties commit to working collaboratively to implement these measures, there is hope that this pivotal moment will lead to a more prosperous and equitable future for all Nigerians.

FAQ – NLC Strike

The strike was due to subsidy removal, but it may be suspended with new agreements.
A provisional wage increase and direct cash transfers to households.
Compressed Natural Gas (CNG) buses will be provided to ease transportation challenges.