TUC to FG: Use Excess Crude Windfall to Slash Petrol Prices

ABUJA – The Trade Union Congress of Nigeria (TUC) has proposed a radical shift in energy policy, demanding that the Federal Government utilize “unbudgeted” excess crude oil revenues to subsidize local production and prevent petrol prices from soaring to N2,000 per litre.

​Addressing journalists in Abuja on Thursday, TUC President Festus Osifo warned that the relentless surge in the price of Premium Motor Spirit (PMS) has decimated the purchasing power of Nigerian workers, pushing millions deeper into poverty.

​The “Production Subsidy” Strategy

​Unlike the previous downstream subsidy regime—which was marred by allegations of corruption and smuggling—the TUC is advocating for a targeted “production-side” intervention.

ADVERTISEMENT

​Osifo explained that with the 2024 budget benchmarked at $64.85 per barrel, the current global oil prices provide a significant revenue windfall. He proposed that 60 percent of this excess revenue be redirected to lower the cost of crude oil supplied to domestic facilities.

​”Take that excess fund that was never budgeted for and use it to subsidize the crude being supplied to Dangote Refinery and modular refineries,” Osifo stated. “When you subsidize production directly, it cannot be abused like the previous system. This would result in an immediate and visible reduction in the pump price.”

​Geopolitics and the Naira’s Woes

​The TUC leader linked the current price volatility to a “perfect storm” of international tensions and domestic currency weakness. He noted that the brewing conflict involving the United States, Israel, and Iran has destabilized global supply chains, while the continued depreciation of the naira has made energy imports and local refining costs unsustainable.

​”Today, the cost of petrol is heading toward N2,000 per litre in many parts of the country,” Osifo lamented. “We cannot continue to watch as the real value of workers’ earnings vanishes into thin air.”

​Beyond the Pump

​The Congress also urged the Central Bank of Nigeria and the executive arm to take “deliberate and aggressive” steps to stabilize the exchange rate. According to the TUC, the high cost of energy is the primary driver of the current inflationary cycle, affecting everything from food transportation to manufacturing.

​The TUC confirmed it would formally submit this proposal to the Presidency and the Federal Executive Council. The union emphasized that using the “windfall” from high oil prices to protect domestic consumers is a matter of urgent national security and social stability.

​As the government weighs its options, the TUC’s proposal sets the stage for a fresh debate on how Nigeria can leverage its status as an oil producer to provide relief to its citizens during a period of unprecedented economic hardship.