Relief On The Way FG-Labour Agreement Set To Slash Transport And Food Costs

Relief On The Way FG-Labour Agreement Set To Slash Transport And Food CostsThe Federal Government and Organised Labour have reached a pivotal agreement on Wednesday aimed at curbing transport fares and reducing the soaring prices of essential goods, particularly food items. This agreement comes amidst growing public concerns over rising inflation and the escalating cost of living.

Following a meeting held at the Office of the Secretary to the Government of the Federation (SGF), the announcement was made on the same day that the House of Representatives urged the government to reverse the recent hike in petrol prices.

Lawmakers called for immediate action to stabilize petrol and cooking gas prices, recommending interventions such as temporary price reliefs, tax cuts, and subsidies on liquefied petroleum gas (LPG) for low-income households.

During the meeting, the government also committed to discussions with state governors to ensure the implementation of a ₦70,000 minimum wage nationwide, starting in October.

Sources from the meeting revealed that both sides agreed to maintain ongoing dialogue to strengthen the relationship between the government and Labour.

“The government pledged to release over 2,000 Compressed Natural Gas (CNG) conversion kits and 45 CNG buses to complete the earlier promised 90 buses to Labour. These efforts are intended to help lower transport fares, which in turn would reduce food prices by lowering transportation costs for goods,” a source told Vanguard.

Additionally, the government agreed to convene a meeting with state governors to further the use of CNG buses across the country. This would help ease the impact of fuel subsidy removal on citizens.

The government also committed to fast-tracking the completion of five refineries and ensuring the payment of outstanding arrears and wage awards to workers. Labour representatives will also be included in the economic council, allowing them to participate in shaping economic policies.

A source stated, “It was agreed that the meeting will be an ongoing process, signaling a shift toward more productive engagement between the government and Labour.”

Asked about Labour’s satisfaction with the meeting, a source said, “It’s less about satisfaction and more about establishing a productive dialogue that moves beyond past grievances. Continuous discussions will likely reduce disputes between the government and Labour in the future.