The Federal Government of Nigeria, Nigeria Labour Congress (NLC), and the Trade Union Congress of Nigeria (TUC) have reached a Memorandum of Understanding (MoU) following a dispute arising from the withdrawal of the subsidy on Premium Motor Spirit (PMS) and the subsequent hike in fuel prices.
Here are the key agreements reached in the MoU:
1. Wage Increase: The Federal Government has granted a wage award of N35,000 to all Federal Government workers starting from September 2023, pending the enactment of a new national minimum wage.
2. Minimum Wage Committee: A minimum wage committee will be inaugurated within one month from the date of the agreement.
3. VAT Suspension: The Federal Government will suspend the collection of Value Added Tax (VAT) on Diesel for six months from October 2023.
4. CNG Buses: N100 billion will be allocated for the provision of high-capacity Compressed Natural Gas (CNG) buses for mass transit. An initial 55,000 CNG conversion kits will also be distributed for an auto gas conversion program, starting in November.
5. Tax Incentives: The Federal Government will introduce various tax incentive measures for the private sector and the general public.
6. Labour Leadership: Labour matters, including the leadership crises in the National Union of Road Transport Workers (NURTW) and the purported proscription of Road Transport Employers’ Association of Nigeria (RTEAN), will be handled in line with relevant ILO Conventions and Nigerian Labour Acts.
7. Outstanding Salaries: The issue of outstanding salaries and wages of tertiary education workers in federal-owned institutions will be referred to the Ministry of Labour and Employment for further engagement.
8. Direct Payments: The Federal Government will provide N25,000 per month for three months starting from October 2023 to 15 million households, including vulnerable pensioners.
9. Fertilizer Distribution: There will be an increase in initiatives for subsidized fertilizer distribution to farmers nationwide.
10. State Government Wage Awards: The Federal Government will urge state governments, through the National Economic Council and Governors Forum, to implement wage awards for their workers, including local government and private sector workers.
11. MSME Support: The Federal Government commits to providing funds for Micro and Small Scale Enterprises (MSMEs) as announced by the President on August 1.
12. Refinery Rehabilitation: A joint visitation will be made to the refineries to assess their rehabilitation status.
13. Social Dialogue: All parties commit to abiding by the principles of social dialogue in future engagements.
14. Strike Suspension: The NLC and TUC have agreed to suspend the planned indefinite nationwide strike, originally scheduled to begin on October 3, for 30 days.
15. Legal Filing: The MoU will be filed with the relevant Court of competent jurisdiction within one week as a consent judgment by the Federal Government.
This agreement marks a significant step towards averting a national strike and addressing key issues affecting workers and the general populace in Nigeria.