NLC Demands Urgent Refinery Revival and Oil Windfall Investment as Fuel Crisis Bites Harder Amid Middle East War

By Angel Nwaozuzu

The Nigeria Labour Congress (NLC) has issued a scathing indictment of the Nigerian government’s handling of the downstream petroleum sector, alleging that its fragility has been laid bare, inflicting deeper suffering on workers and their families as fuel prices soar amid an escalating global crisis.

The union called for immediate action to revive the nation’s moribund refineries, declaring, “The government must immediately halt the decay of the public sector and ensure the full rehabilitation and operation of the Port Harcourt, Warri, and Kaduna refineries. This is not a favour but the right of the Nigerian people.”

Holding the state accountable for billions of naira squandered on failed turnaround maintenance, the NLC lambasted the taxation of minimum-wage earners as “extortion,” emphasising that such policies exacerbate the plight of ordinary Nigerians.

The union recalled its prior warnings, stating, “The NLC had earlier warned about the danger of sabotaging public refineries in ways that could create monopolistic control in the downstream sector. This moment must serve as a wake-up call to the managers of Nigeria’s economy.”

NLC painted a dire picture of the economic fallout, noting how “the soaring cost of petrol, PMS, and diesel (AGO) has made transportation a heavy burden on workers.
Food inflation continues to rise, while meagre wages are being swallowed by the rising cost of living. When workers cannot afford transportation to their workplaces, the economy stalls. When families cannot afford three meals a day, society sits on a keg of gunpowder.”

The group stressed that workers are not statistics, they are the engine of the nation. When the engine overheats, the entire vehicle crashes.”

The labour body’s outcry comes against the backdrop of the Iran war entering its third week, with no signs of de-escalation from either side and diplomats scrambling to secure safe passage for tankers through the vital Strait of Hormuz.

This conflict has roiled global oil supply chains, causing stocks to fluctuate wildly and triggering immediate consequences worldwide.

On Monday, Brent crude surged around three percent to as high as $106.50, prompting swift price hikes in fuel markets globally, with import-dependent nations bearing the brunt.

Compounding the pressure, recent projections from the Nigeria Economic Summit Group (NESG) suggest Nigeria stands to gain an estimated N30 trillion oil windfall from the Middle East turmoil.

NLC warned that the estimated N30 trillion oil windfall expected from the Middle East crisis must not disappear like previous windfalls, demanding these resources be channeled directly to alleviate hardships.

“These resources must be invested in the Nigerian people and used to cushion the economic hardship caused by the current crisis,” the union asserted, while rejecting any use of the crisis to justify poverty-deepening policies.

In a rallying call, NLC urged sincere social dialogue with workers and citizens, insisting, “No nation achieves economic independence by exporting jobs and importing prices. The primary duty of the government is to ensure the welfare and security of its citizens. We demand action. We demand justice. We demand survival.”

As countries heavily reliant on imported refined products reel from the shockwaves, Nigeria’s labour movement positions itself as the vanguard against further pauperization of the workforce.