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BREAKING: FEDERAL GOVERNMENT AND LABOUR UNION REACH AN AGREEMENT, AS FG TO WAIVE THE VAT ON DIESEL FOR 6 MONTHS

The Federal Government led by the Chief of Staff to the president RT Hon Femi Gbajabiamila, on Sunday, October 1, 2023 met with the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) led by the NLC President Comrade Joe Ajaeri, on measures to address the dispute arising from the removal of subsidy on Premium Motor Spirit (PMS).


During the meeting, the parties noted the following:


i) The Federal Government has announced N25,000 only as provisional wage increment for all treasury-paid federal government workers for six months.


ii) The Federal Government is committed to fast-tracking the provision of Compressed Natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy.


iii) The Federal Government commits to the provision of funds for micro and small-scale enterprises.


iv) VAT on diesel will be waived for the next 6 months.


v) The Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for a three-month period from October-December 2023.


RESOLUTIONS:


In light of the discussions held during the meeting, the following resolutions were reached:


i) The issues in dispute can only be resolved when workers are at work and not when they are on strike.


ii) Labour Unions argued for higher wage award and the Federal Government Team promised to present Labour’s request to President Bola Tinubu for further consideration.


iii) A sub-committee to be constituted to work out the details of implementation of all items for consideration regarding government interventions to cushion the effect of fuel subsidy removal.


iv) The lingering matter of Road Transport Employees Association of Nigeria (RTEAN) and National Union of Road Transport Workers (NURTW) in Lagos State needs to be addressed urgently and Lagos State Governor, Babajide Sanwo-Olu, who participated virtually, pledged to resolve the matter.


v.) NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above.

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