The Trade Union Congress (TUC) has attributed the recent rise in fuel prices in Nigeria to the devaluation of the naira rather than the removal of fuel subsidies by President Bola Tinubu in May 2023.
TUC President Festus Osifo, speaking on Channels Television’s Politics Today program, criticized the current administration for the naira’s devaluation, which he claims is the primary factor behind soaring fuel costs.
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EKO HOT BLOG reports that Osifo, who also leads the Petroleum and Natural Gas Senior Staff Association of Nigeria, explained that without the naira’s devaluation, petrol prices would have been approximately ₦350 per litre instead of the current rates, which have surged from about ₦700/$1 to over ₦1,600/$1.
“The real issue is the devaluation of the naira,” Osifo emphasized, suggesting that if the naira had not depreciated concurrently with the subsidy removal, fuel prices would be significantly lower.
He urged the Central Bank of Nigeria (CBN) and the Nigeria Customs Service to provide a special foreign exchange rate for the Nigerian National Petroleum Company Limited (NNPCL).
According to Osifo, granting NNPC a rate of around ₦1,000/$1, compared to the current ₦1,600/$1 rate, would lower petrol importation costs and consequently reduce fuel prices to approximately ₦600 per litre from the current rates of over ₦900, depending on the region.
Osifo also pointed out that despite recent adjustments raising petrol pump prices from about ₦600 to over ₦900, the NNPC continues to shoulder the subsidy burden. He proposed that a special rate similar to what was granted to Dangote Refinery should be applied to NNPC, which could help in reducing fuel prices and eliminating the need for subsidies.
The TUC President warned of severe repercussions if the government does not address the issue promptly, including potential job losses and business closures, as predicted by industry groups such as the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), and Nigerian Employers Consultative Association (NECA).
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Osifo concluded by stating that the TUC would convene to determine their next steps if the government fails to reduce fuel prices to around ₦600.
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