Joe Ajaero, President of the Nigeria Labour Congress (NLC), disclosed that the organized labor accepted a minimum wage of N70,000 following an agreement with President Bola Tinubu aimed at preventing a rise in fuel prices. During an appearance on Arise TV’s Morning Show, Ajaero clarified that labor representatives initially opposed a fuel price increase during negotiations for the new minimum wage at the Presidential Villa in Abuja.

Ajaero recounted that the labor group was willing to consider the proposed alternative of Compressed Natural Gas (CNG) for vehicles but was dissatisfied when the government’s proposed conversion cost exceeded their expectations. Initially, the NLC had negotiated a rate of N300,000 for vehicle conversion to CNG, but government officials insisted on a price of N800,000, which led to disagreements.

In prior negotiations, the NLC had aimed for a minimum wage of N250,000, but after lengthy discussions with President Tinubu, they ultimately accepted the lower amount. Ajaero explained that during the negotiations, there was tension when the discussion shifted to fuel prices, with the President indicating that the removal of subsidies justified a price increase. Despite the proposal for labor representatives to assess fuel prices in neighboring West African countries, Ajaero rejected this sponsorship, emphasizing their focus solely on minimum wage discussions.

When questioned about the potential betrayal by President Tinubu regarding the fuel price increase, Ajaero acknowledged the complexities of the negotiations, stating, “I have to narrate the scenario to you, and then we now choose the appropriate word, whether it is betrayal, deceit, or whatever.”

ALSO READ: Nigerian Workers Confirm Receipt of New Minimum Wage Amid Rising Inflation

He continued, “While discussing, we were stuck at N62,000, even the states were saying they wouldn’t pay, so there was a stalemate that took us to Mr. President.” The President suggested that a higher minimum wage could be linked to an increase in fuel prices, yet the NLC representatives insisted that they had no mandate to negotiate fuel prices during the discussions.

Reflecting on the workers’ sentiments amidst rising fuel costs, Ajaero said, “The basis of accepting the N70,000 minimum wage was for the President not to increase the pump price of petroleum products.” He noted that the significant increase in fuel prices has a direct impact on transportation costs, leading to increased hardships for Nigerians.

Furthermore, Ajaero criticized the government’s handling of the CNG conversion initiative, indicating that the inflated costs had derailed progress. He remarked, “June 2023, after the ‘subsidy is gone’ statement, was the first conversation we had with the federal government, and we agreed that CNG was better than petrol.” He emphasized that there should have been adequate infrastructure to support the initiative before launching it.

Ajaero clarified that decisions regarding a potential strike by the NLC require thorough discussions within the organization’s administrative framework. He highlighted the importance of collective decision-making, stating, “Next week we should be able to meet and have conversations around this so that the personal views of the leader do not influence the position of the members.”

Economic expert Kelvin Emmanuel echoed concerns about the lack of gas infrastructure in Nigeria, explaining that while gas for power generation is gaining traction, gas for transportation presents unique challenges. He pointed out, “You don’t have high-pressure transmission pipes across Nigeria to deliver gas. These are the issues that the government has to tackle.”

Calls for the reversal of fuel price hikes continue, with various organizations, including the Nigerian Association of Chambers of Commerce, Civil Society Organizations, and the Peoples Democratic Party, urging immediate action to alleviate the burden on Nigerians.