TUC Boss Demands Production Subsidies to Tackle Rising Fuel Prices

By Omoyeni Ojeifo

Festus Osifo, President of the Trade Union Congress (TUC), has appealed to the Federal Government to implement immediate interventions to mitigate the effects of rising fuel costs.

Featuring on a Channels TV interview on Friday night monitored by Persecondnews, Osifo emphasized that the government must take a proactive stance against the country’s escalating economic distress rather than watching helplessly as inflation rises.

The labour leader explained that although the TUC understands the government’s position against returning to full fuel subsidy, authorities must still find practical ways to reduce the burden on citizens.

According to him, the union has proposed a model in which part of the excess revenue from crude sales can be utilized properly.

“We proposed a production subsidy model where part of the excess revenue we are earning from higher crude oil prices would be used to support local refining.

“The Government can use part of that excess to support local refining and reduce the pump price,” Persecondnews quotes Osifo as speaking to Channels TV.

He added that the idea is to ensure government revenue gains from crude oil production directly translate into lower cost of refined products within the country.

Osifo disclosed that the proposal had already been discussed with senior government officials, including the Office of the Secretary to the Government of the Federation.

He also called for urgent expansion of Compressed Natural Gas infrastructure, saying the current facilities are too limited to support the government’s transition plans.

“You cannot tell people to move to CNG when the infrastructure is not there. Most vehicles are still operating on PMS because if you travel across the country, there are not enough CNG stations where people can refill easily.”

According to Osifo, the government must think beyond policy announcements and invest in practical systems that directly improve the lives of Nigerians.

“You will not just be watching from afar and allowing the people to continuously struggle and allow inflation to keep rising once again,” he added.

Osifo also spoke on the Memorandum of Understanding signed between the Nigerian National Petroleum Company Limited and Chinese firms over the Port Harcourt refinery, describing it as a step toward deeper private sector participation in refinery operations.

He said the arrangement could eventually evolve into an incorporated joint venture model, where private investors hold majority stakes while government retains a minority share for energy security.

The union leader noted that the agreement is only an initial framework for discussions expected to cover financing, equity structure, operations and refinery expansion within the next three months.

He stressed that a final structure is still being worked out and will determine how ownership, investment and management responsibilities are shared going forward.