Editorial
Time To Resolve FG, Labour Impasse
President Bola Tinubu’s withdrawal of fuel subsidy during his inaugural speech on May 29 was a steely re-
solve well-made. But it has set the alarm bells reverberating. The decision sits nicely with the World Bank, International Monetary Fund (IMF), and technocrats who had participated in protracted advocacy for it; but not so for the downtrodden, who understand particularly the unpleasant effects that progress with it.
A day after the announcement, all hell was let loose at petrol stations. The Nigerian National Petroleum Company Limited (NNPCL) rolled out a fresh price template for the commodity, which supplanted the N185 per litre, for between N448 and N557 across the 36 states of the country and the Federal Capital Territory (FCT). But the retail marketers traded above the price dimension, for up to N800 per litre in some localities.
The organised labour’s expeditious and truculent reaction, with its threat of a nationwide strike, was not unforeseen. Its grouse was the non-consultation with varied stakeholders before the decision was reached and the paucity of measures put in place to insulate the deleterious effects of the price spike on workers. That the 2023 Appropriation Act (budget) captured fuel subsidy until the end of June made its precipitous and unilateral elimination further abhorrent to labour.
Earlier agreements snapped in the bud the planned 7th of June nationwide strike. These encompass the establishing of a joint committee to reconsider proposals on wage escalations; inclusion of low-income earners in the $800 million cash transfer programme; rehabilitation of the country’s ailing refineries; repair of highways, the $70 billion proposed fund for financing of the SMEs, among others.
The Trade Union Congress (TUC) had in its separate consultations with the government’s team, presented a N200,000 minimum wage demand to replace the prevailing N30,000. The Nigeria Labour Congress (NLC) endorsed it. However, finding a common ground on this proposition and the consequential adjustments on general wages to be conducted at both Federal and state levels will be convoluted.
Following a prolonged lag in winding up dialogues with the Federal Government regarding the implementation of subsidy incentives, labour resolved to call out workers in protest. They reached this step to communicate their dissatisfaction with the government’s unseriousness to engage in meaningful negotiations with the labour side. Tinubu’s moratorium in assembling a team is attributed to his filibustering in forming his government.
The government’s failure to agree on labour’s demands led to a recent two-day warning strike by workers. Following this, workers issued a 14-day ultimatum which expired last Friday. Labour leaders are now eager to confront the Federal Government, which may happen after their meeting tomorrow to determine the next course of action. The hasty removal of fuel subsidy, without adequate measures to alleviate its impact on Nigerians, reinforces concerns about President Tinubu’s readiness for effective governance.
The NLC acted within its rights as an organisation dedicated to workers’ welfare. Since the subsidy was withdrawn, life has not been easy for the average Nigerian. It has stoked inflation, at over 25 per cent. The inflationary spiral is already being felt in the over 200 per cent hike in transport fares. Frenetic discussions between labour and government representatives have not been producing any tangible advancement.
Organised labour is entitled to enlist in amicable mass actions. The anguish and hardship are real. The recent street protests that upset Benin City and the looting of warehouses and businesses in Yola, Adamawa State, are timely cautions. These call for immediate responses. The unfolding development is a clarion request for the Federal and State authorities to expedite effort on the promised palliatives.
Therefore, the Federal Government must end the gridlock with labour as the lamentable situation intensifies the misery Nigerians have been going through since the spontaneous fuel subsidy elimination. Tinubu must realise that thoughtlessly abolishing the subsidy which contributed to the hike in petrol price by over 300 per cent within a couple of weeks, while promising to administer palliatives thereafter, is comparable to operating on a patient and applying anaesthesia later.
To pursue the struggle to a logical conclusion, both the NLC and the TUC have to join hands, work together, and overthrow all dangerous policies of the government. The cacophonous tunes by the two labour centres in the present imbroglio are regrettable and do not portend well for labour activities in the country. For the trade union movement to be effective in any nation, there has to be solidarity of purpose. The struggle to salvage Nigeria is no longer a matter the organised labour alone should pursue, because the government’s grim strategies touch every citizen.
The two labour centres must move out to disparate groups in society so that their protests and strikes will be laudable and better productive. Market women and men, artisans and civil society groups must be approached because the struggle now belongs to everybody. Labour must re-strategise. They should build a dynamic alliance and function collectively to negotiate and obtain a stronger deal to enhance workers’ and the citizens’ welfare.
Tinubu must be aware of the dangers in ignoring obvious red flags in a distraught, hungry citizens of a nation and her disoriented youths. We are gratified that he is amenable to listen and react positively to the sentiments of the people. Labour should be malleable as well. We implore the Federal Government to explore an amicable solution to the standoff which will be acceptable to both parties. There is no substitute for a harmonious resolution of the dispute. The economy cannot afford a messy labour cul-de-sac.
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Making Rivers’ Seaports Work
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
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