Fuel Subsidy: TUC demands minimum wage increase to N200,000, tax holiday for workers

Nigeria’s Trade Union Congress of Nigeria (TUC) revealed its demands after calling off the planned nationwide strike following the removal of fuel subsidies.

In a statement signed by the union’s President, Mr. Festus Osifo, and General Secretary, Mr. Nuhu Toro on Monday, the TUC made a list of demands to the FG.

The demands include the Minimum wage should be increased from the current N30,000 to N200,000 before the end of June 2023 and a Tax holiday for employees both in the government and private sector that earn less than N200,000 or 500USD monthly whichever is higher.

Demands from FG

The demands by the TUC were made in a bid to make the fuel subsidy removal easier for Nigerian workers, they also called for maintenance of the status quo ante of Premium Motor Spirit (PMS) pump price while discussion continued, others are:

“Minimum wage should be increased from the current N30,000 to N200,000 before the end of June 2023, with consequential adjustment on the cost of feeding allowance, like feeding, transport, and housing, among others.

“A representative of state governors will be party to this communique and all the governors must commit to implement the new minimum wage.

“Tax holiday for employees both in government and private sector that earn less than N200,000 or 500USD monthly whichever is higher.

“PMS Allowance to be introduced for those earning between N200,000 to N500,000 or 500USD to 1,200USD whichever is higher,”

Intervention fund

They also urged for the setting up of an intervention fund where the government would be paying N10 per litre on all locally consumed PMS, with the primary purpose of this fund is to solve perennial and protracted national issues in education, health, and housing.

“A governance structure that will include labour, civil society, and the government will be put in place to manage the implementation.


“Federal Government should provide mass transit vehicles for all categories of the populace.

“State governments should immediately set up a subsidised transportation system to reduce the pressure on workers and students: the framework around this will be worked out.

“Immediate review of the National Health Insurance Scheme to cover more Nigerians and prevent out-of-stock of drugs.”

Medium-term

In the medium term, the union called for the deployment of Compressed Natural Gas (CNG) across the country in line with the earlier promise made by the government, citing that the framework and timeline would be developed and agreed upon by both parties.

They urged labour and government to design a framework that would be geared toward the reduction of the cost of governance by 15% in 2024 and 30% by 2025.

“A framework should be immediately put in place to maintain the road and expand the rail networks across the country.

“Government must design a framework for social housing policy for workers through Rent to Own System.

“The state of electricity in the country must be appraised and an action plan should be defined with timelines on how to get this fixed.

“A strong monitoring team comprising of all parties will be constituted"

What you should know

The Nigeria Labour Unions (NLC & TUC) agreed to call off their planned strikes scheduled for Wednesday, June 7th, 2023.

The union agreed to call off the strike after a closed-door meeting with government officials in Aso Rock late on Monday evening (5th of June 2023).

According to Television news station TVC, in attendance were CBN Governor Godwin Emefiele, former Governor of Edo State Adams Oshiomole, former Labour Minister of State Festus Keyamo, and Chief of Staff to the President Femi Gbajabiamila.

The outcome of the meeting was announced by the Speaker of the House of Representatives and the incoming Chief of Staff to the President, Femi Gbajabiamila, to the State House correspondents and confirmed by the NLC President, Joe Ajaero, after an almost 6-hour meeting between representatives of the Federal Government and organized labour at the Presidential Villa, Abuja.