The NLC sought tax breaks and wage increases as Middle East wars worsened

The Nigerian Labor Congress (NLC) is urging the Federal Government to immediately introduce relief measures to ease the increasing economic pressure on Nigerians following the recent spike in petrol prices linked to the Middle East conflict involving the United States, Israel and Iran.

The union called for immediate intervention including cost-of-living allowances for workers, remuneration, tax relief for those on low incomes, and accelerated rehabilitation of Nigeria’s public oil refineries.

According to the NLC, petrol prices have risen sharply to between N1,170 and N1,300 per litre, exacerbating the severe economic hardships faced by workers and millions of citizens across the country.

In a strongly worded statement titled “Save Nigerians From This Shock: Urgent Assistance Has Become Necessary,” signed by its president, Joe Ajaero, the labor body warned that the country could face social unrest if decisive steps are not taken to protect citizens from the economic impact.

The statement said, “The NLC gives voice to the collective suffering of millions of Nigerian workers who are bearing the brutal consequences of a global capitalist crisis they did not create. The military escalation involving the United States, Israel and Iran has sent shockwaves through the global oil market. As a result, the price of petrol in Nigeria has skyrocketed to between N1,170 and N1,300 per litre.”

The union argued that the price spike was a major blow to Nigerians already battling inflation and declining purchasing power.

“This is a direct attack on the Nigerian people. While imperialist competition rages abroad with bombs and military build-ups, the Nigerian working class is bombarded with poverty and hunger because we have failed to ensure that our public oil refineries are operational.”

The NLC said the crisis has further exposed structural weaknesses in Nigeria’s downstream petroleum sector and demonstrated the country’s vulnerability to international oil market shocks.

“This crisis has brutally exposed the fragility of Nigeria’s downstream petroleum sector. It has dispelled the illusion that local oil refining alone would protect the country from global shocks. The Dangote refinery has adjusted its prices in line with global volatility, so that the burden falls directly on the public. This undermines the narrative that domestic production alone guarantees price stability.”

According to the labor body, Nigeria will remain exposed to global economic disruption unless the country restores full public refining capacity.

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“As long as Nigeria remains dependent on a market-driven pricing structure linked to global fluctuations, and refuses to revive its public refining capacity, the country will remain hostage to international conflict and market speculation.”

The union also recalled previous warnings about the risks if state-owned oil refineries in Nigeria were damaged.

“The NLC has previously warned about the dangers of sabotage of public oil refineries that could create monopoly control in the downstream sector. This moment should serve as a wake-up call for managers of the Nigerian economy.”

The statement stressed that Nigeria must stop relying on foreign markets to determine fuel prices and ignoring domestic infrastructure.

“No country achieves economic independence by exporting jobs and importing prices. The government must immediately stop the destruction of the public sector and ensure the full rehabilitation and operation of the Port Harcourt, Warri and Kaduna refineries. This is not a favor but a right of the Nigerian people, enabling the country to protect itself from an increasingly hostile global economic environment.”

Labor organizations warn that rising fuel prices have affected transportation, food prices and workers’ ability to maintain basic living standards.

“Soaring prices of fuel oil, PMS, and diesel (AGO) make transportation a heavy burden for workers. Food inflation continues to rise, while low wages are swallowed up by rising costs of living. When workers can’t afford transportation to their workplaces, the economy stalls. When families can’t afford three meals a day, society is left with a powder keg.”

The NLC further argued that the government cannot simply attribute this crisis to international events without taking steps to mitigate its impact at home.

“Governments cannot stop any action that could provide relief to their people. It is the duty of states to act decisively to prevent the suffering of their citizens, rather than helplessly attributing this crisis only to the conflicts in the Middle East.”

Citing economic projections, the labor body noted that the country may benefit financially from rising global oil prices.

“Latest projections from the Nigeria Economic Summit Group (NESG) indicate that Nigeria may gain a N30 trillion oil windfall from the ongoing Middle East crisis.”

The NLC said the revenue should be directed towards alleviating the hardships facing ordinary Nigerians.

“Therefore, the Nigerian Labor Congress demands the following urgent actions: immediate provision of wages and cost of living allowances (COLA) for all workers to cushion the rising cost of living; expansion and overhaul of the Cash Transfer program to ensure transparency and guarantee that aid reaches the most vulnerable, with assistance adjusted for inflation; immediate tax relief for workers, including suspending regressive taxes on those on low incomes and taxing the informal sector. Taxing those earning the minimum wage is tantamount to extortion. The NLC also demands a clear operational schedule. all state-owned oil refineries must be held accountable for the billions of naira spent on turnaround maintenance.”

Unions warned that continued economic pressure on workers could have far-reaching consequences for the country.

“Nigerian workers are impoverished and suffering tremendously. Workers are not statistics—they are the machinery of the country. When the engine overheats, the entire vehicle crashes.”

The report also warns the government against mismanaging potential oil revenue gains from this crisis.

“The estimated N30 trillion oil windfall expected from the Middle East crisis should not be lost like previous windfalls. These resources should be invested in the Nigerian people and used to cushion the economic hardship caused by the current crisis.”

Calling for dialogue, the labor movement urged authorities to involve workers and citizens in finding solutions.

“The government must engage in genuine social dialogue with Nigerian workers and society at large. Using the Middle East crisis as justification for policies that exacerbate poverty is unacceptable. The primary duty of government is to ensure the well-being and security of its citizens. We demand action. We demand justice. We demand survival.”