FG Gives Labor Other Offers and Removes VAT on Diesel for Six Months

This was said in a statement released on Sunday following a meeting between government representatives and labor unions over the latter’s planned industrial action.

He stated that one of the agreements made at the meeting with organized labor in Abuja was to waive the VAT on diesel for the following six months.

While using alternative energy sources to offset the rising cost of transportation is one of labor’s demands, the minister stated that the 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”.

In addition, the government stated that it is dedicated to providing funding for micro and small businesses.

“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,” the statement continued.

Here is the whole statement:


On Sunday, October 1, 2023, the Federal Government met with the leadership of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) to discuss ways to resolve the disagreement that resulted from the elimination of the subsidy on Premium Motor Spirit (PMS).

The following was noted by the parties:

i) The Federal Government announced N25,000 solely as a provisional pay increase for all federal government employees who are paid by the Treasury for a period of six months.

ii) To alleviate public transportation issues brought on by the loss of PMS subsidies, the Federal Government is committed to moving quickly to provide Compressed Natural Gas (CNG) buses.

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.


In light of the discussions held during the meeting, the following resolutions were reached:

i) The issues in dispute can only be resolved when workers are at work and not when they are on strike.

ii) Labour Unions argued for higher wage award and the Federal Government Team promised to present Labour’s request to President Bola Tinubu for further consideration.

iii) A sub-committee to be constituted to work out the details of implementation of all items for consideration 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 and Lagos State Governor, Babajide Sanwo-Olu, who participated virtually, pledged to resolve the matter.

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, Deputy President, TUC, Dr Tommy Etim Okon, NLC General Secretary, Emma Ugboaja, TUC General Secretary, Nuhu Toro, among others.

Mallam Mohammed Idris
Minister of Information and National Orientation
October 1, 2023

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