The House of Representatives on Wednesday raised concerns that the recent rise in fuel pump prices could lead to social unrest.
This warning came after a meeting between the Federal Government and labor leaders, aimed at addressing the fuel price hikes, ended in a deadlock.
Last week, retail outlets of the Nigerian National Petroleum Corporation increased petrol prices in Abuja from N897 to N1,030 per litre, while in Lagos, the price surged from N868 to N998 per litre. Other regions saw similar increases.
This is the second fuel price hike in the month, marking a rise of about 14.8 percent or N133 per litre.
The hike has triggered higher costs in transportation and food across the country, compounding the economic challenges faced by many Nigerians.
The organized labor and the Organized Private Sector have called for an immediate reversal of the petrol price hike.
The Nigeria Labour Congress and the Trade Union Congress condemned the increase and demanded that the Federal Government reverse it.
During plenary, the House of Representatives called on the Federal Government to immediately reverse the hike in petrol and cooking gas prices due to the prevailing economic hardship in the country.
This resolution followed the adoption of a motion titled “Urgent need to suspend the increased cost of petrol and cooking gas in the country and provide a stop-gap,” moved by Minority Leader Kingsley Chinda and supported by over 100 other members.
The motion highlighted the growing hardship Nigerians have faced in recent months due to the escalating cost of essential goods and services, particularly petrol and cooking gas.
Chinda, a member of the Peoples Democratic Party expressed concern that the rising costs were putting an unsustainable financial burden on ordinary Nigerians and aggravating the cost of living.
He stated, “The removal of fuel subsidy coupled with global oil price volatility and the naira depreciation has contributed significantly to the rising cost of petrol at the pump and cooking gas for households.”
Chinda continued, “We are worried that the escalating fuel and gas prices are impacting the cost of transportation, food, essential goods, and healthcare, further increasing inflation and pushing many families into deeper financial hardship.”
He also noted that businesses, especially small and medium-sized enterprises were struggling with operational costs due to the increase in fuel prices, posing a threat to economic stability and job security.
The lawmaker reminded the House that the President Bola Tinubu-led government had previously pledged to repair domestic refineries and improve local refining capacity to alleviate the situation, but lamented that “it is yet to deliver significant results in this regard.”
Chinda warned that the rising cost of petrol and cooking gas “poses a significant threat to the livelihood of millions of Nigerians,” and without urgent intervention, Nigeria could face “an economic crisis leading to negative outcomes like increased crime and mortality rates.”
House Minority Whip, Ali Isa, also condemned the consistent hike in fuel prices, saying, “The people are suffering because of the increase in fuel price. The government should allow the people to breathe and should please not remove the cylinder giving Nigerians little oxygen.”
Isa added, “The government should listen to the cry of the people and take steps to review any policy that will affect Nigerians negatively. Those who signed this motion are of the view that their people and by extension, the Nigerian people, are suffering.”
Yusuf Gagdi, representing the Kanke/Pakshin/Kanam Federal Constituency in Plateau State, stated that the motion reflected the current challenges faced by Nigerians, emphasizing the need for the government to prioritize the welfare of its citizens.
Deputy Minority Whip, George Ozodinobi, highlighted that the fuel price hikes had rendered the new N70,000 minimum wage nearly useless due to the rising cost of goods and services.
He noted, “Our people cannot transport their farm produce to the market and because of that there is an increase in prices of food.”
Ozodinobi argued that the country should review its membership in the Organization of Petroleum Exporting Countries, stating, “We don’t have to be in OPEC because that is the only way we can address this issue.”
Following the adoption of the motion, the House urged the Nigerian National Petroleum Company Limited, the Ministry of Petroleum Resources, and other relevant agencies to “expedite action on the repair/maintenance of domestic refineries to enhance the nation’s local refining capacity as a stop-gap measure to reduce the dependence on imported refined petroleum products.”
The House also called on the Central Bank of Nigeria to implement policies that would alleviate the inflationary effects of the fuel price hikes, particularly regarding essential goods and services.
The resolution further urged the Federal Government to explore alternative energy sources, diversifying Nigeria’s energy mix to reduce reliance on petrol and gas, while promoting more sustainable and affordable renewable energy solutions.
State governments were also tasked with adopting policies that would ease the financial burden on their citizens, such as tax waivers or levies on transportation and goods impacted by high fuel prices.
Meanwhile, following the insistence of labor leaders for a reduction in fuel prices, the Federal Government team, led by Secretary to the Government of the Federation George Akume, held a closed-door meeting with union representatives in Abuja on Wednesday.
Other key government officials present included the National Security Adviser Nuhu Ribadu, Minister of Finance Wale Edun, Minister of Budget and National Planning Abubakar Bagudu, Minister of State for Labour and Employment Nkeiruka Onyejiocha, and Minister of State for Petroleum Heineken Lokpobiri, among others.
According to a source privy to the meeting, who spoke on condition of anonymity, there was no consensus reached between the government and the labor unions.
The source said, “At the meeting, the NLC expressed their disapproval of the price hike and held their ground that it must be reversed. The government team tried to convince them to reason with them, but they could not reach a common ground on the matter. They resolved to meet again.”
Minister of Information, Mohammed Idris, spoke after the meeting, stating that the engagement with labor leaders would be ongoing.
“It is a work in progress, it is not a one-off thing. There is going to be a continuous engagement between us and the labor leadership. Labour is an important component of this country. All of them are our brothers and sisters. Government is there for everyone, including Labour. So we will continue to engage Labour for the good of the country,” he said.
Bagudu acknowledged the tough decisions made by the government, explaining that they would soon begin to yield positive results.
He said, “Of course, tough decisions come with challenges and consequences. We are dealing with those now, which are part of the reasons we’re asking: why is there a spike in inflation for September, following the decline we discussed earlier? The answer lies in energy prices, which have yet to stabilize, affecting oil prices.”
Bagudu further stated, “We are currently in the midst of the harvest season, and we believe this will further impact food prices. Most of the measures taken are beginning to yield results, leading to greater levels of investment and efforts to mobilize even more investments, which we believe will solidify the rise in gross domestic product.”
He noted that Nigeria’s GDP had grown by over two percent in the first quarter and 3.19 percent in the second quarter of the year. “Some people may say that sounds slow, but let me put that into context. Germany, which is wealthier and has more resources to respond to challenges, saw a decline of 0.3 percent. The UK is struggling with a decline of 0.2 percent.”
Bagudu concluded, “So, what choices do we need to make? We’ve made bold choices. Today, state governments, local governments, and the Federal Government are better funded. Yes, inflation and the cost of living remain challenges, but they are not unique to Nigeria.”
He added, “Fertilizer prices, energy prices, and cost-of-living crises are being witnessed in many countries. This isn’t meant to comfort us, but to provide perspective. The message is this: we are confident that we’ve steered the economy in the right direction, and we have seen the worst. Moving forward, we expect to reap bountiful rewards.”
