In a significant turn of events, the planned nationwide strike by the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) scheduled for today has been suspended. This decision follows the Federal Government of Nigeria’s successful negotiation after several hours of talks on Monday, October 2, resulting in a Memorandum of Understanding (MoU) to address the dispute stemming from the removal of the petrol subsidy.
Critical aspects of the MoU include:
- A provisional wage increase of N35,000 for federal workers starts in September until a new national minimum wage is formally established.
- A six-month suspension of VAT on Diesel.
- A commitment of N100 billion for high-capacity CNG buses. Several initiatives to address labour concerns.
- The suspension provides a 30-day window for the MoU’s implementation.
Here is the complete list of the MoU between Labour leaders and the federal government.
1. The Federal Government grants a wage award of N35,000 only to all Federal Government workers beginning September, pending when a new national minimum wage is expected to have been signed into law.
2. A minimum wage committee shall be inaugurated within one month from the date of this agreement.
3. The Federal Government suspends the Value Added Tax (VAT) collection on Diesel for six months from October 2023.
4. The Federal Government accepts a vote of N100 billion for providing high-capacity CNG buses for mass transit in Nigeria. Provisions are also being made for an initial 55,000 CNG conversion kits to kick start an autogas conversion programme whilst work is ongoing on state-of-the-art CNG stations nationwide.
The rollout aims to commence by November with pilots across ten campuses nationwide.
5. The Federal Government plans to implement various tax incentive measures for the private and public sectors.
6. On the leadership crises rocking the NURTW and the purported proscription of RTEAN, the Federal Government commits to handling Labour matters in line with relevant ILO Conventions and Nigerian Labour Acts. A resolution of the ongoing impasse is expected by or before October 13.
7. The outstanding Salaries and Wages of Tertiary Education workers in Federal educational institutions are being referred to the Ministry of Labour and Employment for further engagement.
8. The Federal Government commits to pay N25,000 per month for three months starting from October 2023 to 15 million households, including vulnerable pensioners.
9. The Federal Government will increase its initiatives on subsidized distribution of fertilizers to farmers across the country.
10. The Federal Government should urge the State Government through the National Economic Council and Governors Forum to implement wage awards for their workers.
Similar consideration should also be given to local government and private sector workers.
11. The Federal Government commits to the provision of funds as announced by the President on August 1 broadcast to the Nation for Micro and Small Scale Enterprises. The MSMEs beneficiaries should commit to the principle of decent jobs.
12. A joint visitation will be made to the refineries to ascertain their rehabilitation status.
13. All parties commit to abide by the dictates of Social dialogue in all our future engagements.
14. The NLC and TUC accept to suspend for 30 days the planned Indefinite Nationwide strike scheduled to begin Tuesday, October 3, 2023.
15. This Memorandum shall be filed with the relevant Court of competent jurisdiction within one (1) week as consent judgment by the Federal Government.