NLC Demands Wage Awards, Naira Crude Supply to Local Refineries as Petrol Prices Rise!

NLC President Joe Ajaero addressing concerns over rising petrol prices, wage awards and crude oil supply to local refineries in Nigeria.

Reported by Simon Daniel Yusuph l Journalist at Weng Global

The Nigeria Labour Congress (NLC) has demanded immediate government intervention to cushion Nigerians from rising petrol prices, calling for reasonable wage awards for workers, sufficient crude oil supply to local refineries in naira and an expansion of the country’s national petroleum storage capacity.

The demands were contained in a statement issued on Wednesday, September 16, 2026, by NLC President Joe Ajaero and titled “Save the Situation Now.” The labour centre said petrol prices had risen to about ₦1,430 per litre in major urban areas, with prices higher in less accessible locations.

The NLC warned that the increase was putting additional pressure on workers and households already struggling with the rising cost of essential goods and services.

NLC Calls for Immediate Wage Awards

The labour union said the Federal Government should introduce reasonable wage awards to help workers cope with the latest increase in transportation and living costs.

According to the NLC, higher petrol prices have consequences far beyond motorists because transportation is closely connected to the movement of people, food, agricultural products and other goods across Nigeria.

The union said increases in transport costs eventually affect the prices of food, rent, school fees, tariffs and other essential services.

The NLC described the situation as an additional burden on workers whose wages are already being stretched by the cost-of-living crisis.

The organisation argued that temporary wage support would provide workers with some protection while longer-term measures are developed to address the structural pressures affecting fuel prices and domestic energy supply.

Labour Wants Crude Sold to Refineries in Naira

A major part of the NLC’s proposal is its demand that sufficient Nigerian crude oil be supplied to local refineries through naira transactions.

The union argued that Nigeria’s status as an oil-producing country, combined with growing domestic refining capacity, should provide a stronger buffer against international oil-market disruptions.

The NLC also expressed concern that some local refineries were reportedly importing crude despite the country’s substantial crude oil resources.

It argued that continued reliance on imported crude by domestic refineries undermines the objective of developing Nigeria’s refining capacity.

The labour centre said reliable domestic crude supply would strengthen local refining, create economic value and reduce Nigeria’s vulnerability to external disruptions in the petroleum market.

NLC Seeks Expansion of National Petroleum Storage

The NLC also called for an expansion of Nigeria’s national petroleum storage capacity.

The union said greater storage capacity would help the country respond to energy emergencies and strengthen national energy security.

Strategic petroleum storage can provide a buffer during periods of supply disruption or sudden changes in international energy markets.

The demand is particularly relevant as Nigeria continues to deal with fluctuations in crude prices and domestic petrol costs while seeking to increase the role of local refineries.

The NLC said stronger storage infrastructure, adequate domestic crude supply and other interventions could help protect consumers from sudden energy-market shocks.

Gulf Conflict Adds Pressure to Global Energy Markets

The labour union linked the latest petrol-price pressure partly to the resurgence of conflict in the Gulf and its impact on international energy markets.

The NLC argued that Nigeria should have mechanisms capable of shielding citizens from at least some of the effects of international energy-market disruptions because the country produces crude oil and has increasing domestic refining capacity.

The union said Nigeria should establish a stronger buffer against external shocks rather than allowing international developments to translate directly into severe pressure on households.

Recent reporting by The Guardian also placed the NLC’s demands within the wider pressure created by rising petrol prices and their impact on household purchasing power.

NLC Says Government Intervention Should Remain an Option

The NLC further argued that government intervention, including subsidies or other forms of emergency support, should not automatically be ruled out during periods of severe economic pressure.

The position comes more than three years after Nigeria’s petrol subsidy was removed in May 2023.

Since then, petrol prices have been influenced more directly by market conditions, including crude oil prices, foreign exchange costs, logistics and other factors affecting the downstream petroleum sector.

The NLC said emergency circumstances could justify government intervention aimed at protecting citizens from sudden and severe increases in the cost of essential energy.

The labour centre also argued that other oil-producing countries had introduced various forms of intervention or palliatives during periods of energy-market pressure.

Union Points to Higher Crude Oil Revenues

The NLC also claimed that the Federal Government was benefiting from higher international crude prices.

According to the union, crude oil prices were between $35 and $40 per barrel above the benchmark used in the national budget.

The NLC described the additional revenue as a windfall and argued that part of the fiscal benefit could provide room for measures designed to protect citizens from the rising cost of living.

This figure represents the NLC’s stated assessment and should not be treated as an independently verified government revenue calculation.

The union maintained that government intervention was necessary because workers and households were already facing significant economic pressure.

Rising Petrol Prices and the Cost of Living

The latest increase in petrol prices has wider economic implications because of Nigeria’s dependence on road transportation.

When fuel becomes more expensive, transport operators face higher operating costs. These costs can then be reflected in fares paid by commuters and the prices charged to move goods around the country.

For households, higher transportation costs can reduce disposable income and increase the cost of accessing workplaces, schools, markets and essential services.

For businesses, particularly small and medium-sized enterprises, higher fuel and transportation expenses can increase operating costs and place additional pressure on prices.

This explains why petrol pricing remains closely connected to Nigeria’s broader inflation and cost-of-living debate.

The NLC’s demand for wage awards is therefore part of a wider argument that workers’ incomes should receive additional protection when essential costs rise sharply.

Domestic Refining Remains Central to the Debate

Nigeria has continued to pursue greater domestic refining capacity as part of efforts to reduce dependence on imported petroleum products.

The expansion of private refining capacity and efforts to rehabilitate government-owned refineries have increased expectations that more locally refined petroleum products can eventually reduce Nigeria’s exposure to international supply disruptions.

However, domestic refining requires reliable access to crude oil, as well as functioning infrastructure, financing, logistics and efficient distribution networks.

The NLC’s demand for naira-based crude supply to local refineries therefore focuses on one of the key requirements for sustaining domestic refining operations.

The labour union’s position is that Nigeria should maximise its own crude resources to support domestic production rather than remain vulnerable to external energy-market pressures.

Wider Implications for Nigerian Workers

For workers, the latest petrol-price increase represents another potential pressure on household budgets.

Many Nigerians depend on public transportation to reach their workplaces, while businesses depend on road networks to move goods and services.

Higher fuel costs can therefore affect both sides of the economy simultaneously.

The NLC says wage awards would provide immediate relief while government policies aimed at strengthening domestic refining and energy security could address some of the underlying problems.

The challenge for policymakers is balancing emergency relief with the broader fiscal and economic consequences of government intervention.

What Happens Next

The immediate issue is whether the Federal Government will respond to the NLC’s demands for wage awards, naira-based crude supply to domestic refineries and increased petroleum storage capacity.

The government will also have to consider the fiscal implications of any emergency relief measures and how they would fit within Nigeria’s existing downstream petroleum-market framework.

Meanwhile, developments in international oil markets will remain important for Nigeria’s domestic fuel situation.

For Nigerians, key indicators to watch include further petrol-price movements, crude supply to local refineries, refinery output, transportation costs and any government announcement on emergency relief for households and workers.

Weng Global – stories beyond borders

sources

  1. Nigeria Labour Congress (NLC) — “Save the Situation Now” press statement issued on September 16, 2026.
  2. Punch Newspapers — Report on the NLC’s demand for emergency palliatives and wage awards as petrol prices reached about ₦1,430 per litre.
  3. Vanguard News — Report on the NLC’s demand for wage awards, naira-based crude supply to local refineries and expanded national storage capacity.
  4. The Guardian Nigeria — Report on the impact of rising petrol prices on Nigerian workers and the NLC’s demands.
  5. The Guardian Nigeria — September 17, 2026 report on pressure over petrol prices and the NLC’s call for emergency intervention.

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