By Yinka Ajayi
Organised labour and petroleum marketers have called on the Federal Government to channel the expected oil windfall from the escalating Middle East crisis into relief measures for Nigerians, including the payment of a Cost of Living Allowance (COLA) for workers and massive investment in Compressed Natural Gas (CNG) infrastructure to reduce dependence on petrol.
The calls followed the sharp spike in petrol prices across the country, now selling between N1,170 and N1,300 per litre, amid rising tensions in the Middle East involving the United States, Israel, and Iran, which have triggered volatility in global oil markets.
The Nigeria Labour Congress (NLC) warned that the surge in fuel prices has intensified the economic hardship facing Nigerian workers and citizens, urging the government to urgently intervene to prevent worsening social distress.
In a statement titled “Save Nigerians From This Shock: An Urgent Relief Has Become Necessary,” signed by its President, Joe Ajaero, the labour centre demanded the immediate introduction of a cost-of-living allowance, a wage award for workers, tax relief for low-income earners, and urgent steps to revive the country’s public refineries.
The NLC said the current situation has exposed the fragility of Nigeria’s downstream petroleum sector and deepened the suffering of workers and their families.
“The military escalation involving the United States, Israel, and Iran has sent shockwaves through global oil markets. As a result, petrol prices in Nigeria have skyrocketed to between N1,170 and N1,300 per litre,” the statement said.
“This is a direct assault on the Nigerian people. While imperialist rivalries play out abroad with bombs and military escalation, Nigeria’s working class is being bombarded with poverty and hunger because we have failed to ensure that our public refineries are operational.”
According to the Congress, the crisis has stripped away the illusion that local refining alone would shield the country from global shocks, noting that the Dangote Refinery had also adjusted its prices in line with global volatility.
The labour body insisted that as long as Nigeria remains tied to a market-driven pricing structure linked to global oil fluctuations, the country would continue to be vulnerable to international conflicts and market speculation.
It also renewed its call for the full rehabilitation and operation of the Port Harcourt, Warri, and Kaduna refineries, warning that the soaring cost of petrol and diesel has made transportation increasingly unaffordable for workers.
The NLC cited projections by the Nigeria Economic Summit Group (NESG) indicating that Nigeria could earn an estimated N30 trillion oil windfall from the ongoing Middle East crisis.
It warned that the potential revenue must not be squandered as in the past, insisting that it should be deployed to cushion the economic hardship facing citizens.
“The estimated N30 trillion oil windfall expected from the Middle East crisis must not disappear like previous windfalls. These resources must be invested in the Nigerian people and used to cushion the economic hardship caused by the current crisis,” the statement said.
While labour pushed for direct relief for workers, petroleum marketers urged the Federal Government to channel part of the anticipated oil gains into expanding Nigeria’s gas infrastructure as a long-term solution to rising fuel costs.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said the expected windfall could serve as a critical funding source for the country’s gasification drive, particularly the expansion of Compressed Natural Gas infrastructure.
National President of PETROAN, Dr Billy Gillis-Harry, said excess oil revenue above the budget benchmark should be invested in energy infrastructure and value chains rather than spent immediately.
According to him, the government’s push to expand the use of CNG as an alternative fuel for transportation is a strategic step towards easing the burden of rising petrol prices on commuters.
He commended President Bola Tinubu for approving funding for the distribution of 100,000 CNG conversion kits to accelerate the adoption of gas-powered vehicles nationwide.
“The initiative will help reduce dependence on petrol and lower transportation costs for Nigerians. What we should be talking about now is how to provide relief for commuters,” Gillis-Harry said.
He noted that PETROAN members operate over 8,000 filling stations across the country, many of which could be converted into CNG dispensing outlets to support the gasification programme.
According to him, the association’s network of stations, particularly across the Southern and North-Central regions, could help accelerate the rollout of CNG infrastructure if adequate investment is made.
Gillis-Harry also disclosed that PETROAN would soon engage with the Presidential Compressed Natural Gas Initiative and Electric Vehicles programme to explore areas of collaboration aimed at expanding gas distribution across the country.
He said strengthening CNG infrastructure would not only reduce transportation costs but also enhance energy security and promote cleaner fuel alternatives.