…workers feel betrayed as fuel prices ambush new minimum wage
… ‘Hard decisions for development’, Tinubu defends petrol price hike
In a country where survival is already a daily battle, the recent hike in fuel prices has thrown a wrench into the lives of many Nigerians, casting doubt over the effectiveness of the newly increased minimum wage.
In July, the Nigerian government raised the minimum wage from N30,000 to N70,000 after months of tense negotiations with the Nigerian Labour Congress (NLC).
But what seemed like a victory for workers has been overshadowed by an alarming surge in fuel prices, leaving many wondering whether the struggle was ever worth it.
Just a few weeks after the minimum wage agreement, the pump price of petrol, which had already been on the rise, skyrocketed once again.
What was once sold between N600 and N770 now costs anywhere from N855 to N1,200, depending on location and filling stations.
This steep hike has not only diminished the gains from the still unimplemented new wage but has also triggered a domino effect on transportation costs, which in turn, is driving up the prices of food and other essential commodities.
“It’s like we’re taking one step forward and two steps back,” lamented a civil servant in Lagos who doesn’t want to be mentioned. “The minimum wage increase was supposed to improve our lives, but now it’s being eroded by rising fuel prices.”
This sentiment is echoed by many Nigerians who have watched their purchasing power erode faster than the government can implement its promises.
Nigeria has just heaved a sigh of relief from a near three-decade high inflation which has sparked a cost-of-living crisis and led to multiple social unrest as citizens demand an end to their economic maladies.
According to the National Bureau of Statistics (NBS), the July annual inflation rate declined to 33.40 percent up from 34.19 percent in June, 2024 on high base effect and lower food prices due to bumper harvest.
Food inflation, which accounts for over 50 percent of Nigeria’s headline inflation, also decelerated to 39.58 percent in the same month under review, fanning hopes of respite to households who have endured the worst economic crisis in a generation.
But with an inevitable hike in pump price, Nigeria might not be out of the woods yet in its fight to combat rising prices and weakening purchasing power.
With food prices now soaring, the anticipated wage increase offers little respite to households already stretched to their limits.
Grace Adebayo, a trader in Lagos, shared her frustration: “I’m spending almost double what I used to on transportation. And every time fuel prices go up, it’s only a matter of time before the price of everything else follows. We can’t keep up.”
Read also: Petrol price hike: NLC cries foul, threatens strike
“I don’t understand why the government can’t control the price of fuel,” said Nike Babatunde, another Lagos-based small business owner. “It’s affecting everything from transportation to the cost of living.”
The minimum wage increase, though welcome, was not enough to keep pace with Nigeria’s inflationary pressures, driven in large part by the removal of the fuel subsidy by President Bola Tinubu’s administration.
Even though the government promised the removal of the subsidy would eventually lead to better infrastructure and services, for now, Nigerians feel the immediate pain with little prospect of relief.
NLC accuses Tinubu of betrayal
The Nigeria Labour Congress (NLC) has accused President Bola Tinubu of betraying the trust of Nigerian workers following the recent sharp increase in the price of Premium Motor Spirit (PMS).
In a statement signed by NLC President Joe Ajaero on Tuesday, the union expressed shock and dismay over the secretive hike in fuel prices, calling it a “deep sense of betrayal.”
The NLC noted that one of the key reasons it accepted the N70,000 national minimum wage was the government’s assurance that there would be no further increase in the price of PMS.
The workers’ congress further criticised the government for breaking its promises and implementing what it described as “ferocious right-wing market policies” that have pushed Nigerians to their “all-time low.”
Read also: Hike in petrol price crucial for Nigeria’s growth, says Tinubu
‘Hard decisions for development’, Tinubu defends petrol price hike
President Bola Tinubu has addressed the recent increase in the price of Premium Motor Spirit (PMS), commonly known as petrol, explaining that the hike is part of a broader strategy to drive economic growth in Nigeria.
Speaking to Nigerians in China on Friday, Tinubu defended the price increase and other reforms introduced by his administration, stating that they are necessary steps to put the country on the path to long-term economic stability and prosperity.
“Nigeria is going through reforms, and we are taking very bold and unprecedented decisions. For example, you might have been hearing from home in the last few days about fuel prices,” presidential spokesman, Ajuri Ngelale, quoted Tinubu as saying.
“What is the critical part to get us there if we cannot take hard decisions to pave the way for a country that is blessed and so talented?
“The more you want everything free, it will become more expensive and long-delayed to achieve meaningful development.”
The Dangote Refinery: Hope underway?
Many Nigerians had placed their hopes on the long-anticipated Dangote Refinery, expecting it to ease the burden of high petrol prices.
Commissioned in May 2023, the world’s largest single-train refinery with a capacity of 650,000 barrels per day, was expected to not only meet Nigeria’s fuel demands but also crash prices by reducing the country’s reliance on imported fuel.
However, those hopes have slowly dimmed as it became apparent that the Nigerian National Petroleum Corporation (NNPC) would remain the sole buyer and distributor of the refinery’s fuel output, maintaining its monopoly on the market. This has led to growing skepticism among Nigerians, who now fear that the benefits of the refinery will not be felt by ordinary citizens.
“I was really hopeful that the Dangote Refinery would change everything. We thought prices would come down, but it’s the same story,” said Kunle Balogun, a banker based in Lagos.
“Now that the NNPC still has a monopoly, it’s like nothing will change. We’re stuck.
“We’re not asking for miracles; we just want to survive. They must keep fuel prices down. Right now, we’re just working to pay for transport.”
