VAT On Diesel Scrapped For Six Months As FG Increases Provisional WageS To N35K

The interim salary increase that President Bola Tinubu promised for workers earlier today has been approved with an additional N10,000. The pay increase, which will endure for six months, is one of the steps taken to lessen the impact of the financial hardship brought on by the elimination of gasoline subsidies.

On July 4, President Tinubu announced a N25,000 provincial salary hike for low-grade workers. However, following a meeting this evening between labour union officials and a delegation from the federal government, the provincial wage hike was approved for all classes of workers.

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However, in a statement issued this evening, the Minister of Information and National Orientation, Mohammed Idris, said that the Federal government had also approved an additional N10,000 to the provisional wage increment following a meeting between government representatives and labour unions regarding the latter’s planned strike on October 3. Additionally, he added that the Federal government has decided to eliminate the Value Added Tax (VAT) on fuel items for the next six months.

The whole statement is below;

‘’The Federal Government, on Sunday, October 1, 2023 met with the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) on measures to address the dispute arising from the removal of subsidy on Premium Motor Spirit (PMS).

The parties noted the following:

i) The Federal Government has announced N35,000 only as provisional wage award for all treasury-paid federal government workers for six months following further consultation with President Bola Tinubu.

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.

MEETING HIGHLIGHTS:

In light of the discussions held during the meeting, the following were the major highlights:

i) The Federal Government urged the Labour unions not to embark on strike action as the issues in dispute can only be resolved when workers are at work.

ii) Labour Unions made case for higher wage award.

iii) A sub-committee to be constituted to work out the details of implementation of all items 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.

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.

Governor Abdulrazak Abdulrahman of Kwara State and Chairman of the Nigeria Governors Forum (NGF) and Governor Dapo Abiodun of Ogun State, participated virtually in the meeting, chaired by the Chief of Staff to the President, Femi Gbajabiamila.

Also in attendance were the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Minister of Information and National Orientation, Mohammed Idris, the Minister of Labour and Employment, Simon Lalong, the Minister of State, Labour, Nkeiruka Onyejeocha, the Minister of Budget and Economic Planning, Abubakar  Atiku Bagudu, the Minister of Humanitarian Affairs and Poverty Alleviation, Betta Edu, the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, the Head of Service of the Federation, Dr. Folasade Yemi-Esan and the National Security Adviser (NSA), Mallam Nuhu Ribadu.

The labour delegation was led by NLC President, Joe Ajaero, Dr Tommy Etim Okon, Deputy President, TUC,  NLC General Secretary, Emma Ugboaja, TUC General Secretary, Nuhu Toro, among others.

Mallam Mohammed Idris

Minister of Information and National Orientation

October 1, 2023”