The Trade Union Congress of Nigeria has called on the Federal Government to introduce a “production subsidy” for the Dangote Refinery and other modular refineries as part of efforts to reduce the rising cost of petrol across the country.
TUC President, Festus Osifo, made the proposal while speaking on Channels Television’s Politics Today, amid growing concerns over the sharp increase in fuel prices following tensions in the Middle East.
According to Osifo, the union is not asking for the return of the old fuel subsidy regime but wants the government to support local refining by subsidising crude oil supplied to domestic refineries.
“So, what we proposed, knowing and understanding that they wouldn’t want to bring consumption subsidy, we were advocating for a production subsidy,” he said.
He explained that Nigeria is currently earning more revenue from crude oil sales than projected in the national budget and suggested that part of the excess funds should be used to reduce the cost of crude supplied to local refiners.
Osifo argued that such a move would lower production costs and eventually lead to cheaper petrol prices for Nigerians. He added that the policy would be easier to monitor than the previous subsidy system tied to imported fuel.
The labour leader also warned that petrol prices could continue climbing if urgent measures are not taken. According to the TUC, fuel prices in some parts of the country have risen from around ₦800 per litre to nearly ₦1,300 in recent weeks.
The Federal Government, however, has repeatedly maintained that it will not return to the former fuel subsidy regime, insisting that the policy created distortions in the economy.