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Subsidy Removal: FG okays N100bn for high-capacity CNG buses 



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As part of the agreement of the Federal Government and the Labour Union, the government has decided to approve a significant sum of N100bn for High-Capacity CNG buses to bolster the transportation sector.  

The plan was unveiled yesterday as part of the palliative measures to alleviate the petrol subsidy pain during the meeting with NLC and TUC. 

A huge transportation plan to alleviate the petrol subsidy pain was revealed last night to 

The decision also encompasses the distribution of 55,000 CNG conversion kits to initiate an auto gas conversion initiative, while waiting for the ongoing construction of advanced CNG stations across the country. 

According to the Federal Government, the plan will be unveiled within the next month with pilots across 10 campuses nationwide.  

The agreements were reached at the rescheduled parley at the State House in Abuja last night. 

The full agreements were contained in a Memorandum of Understanding (MoU) signed by the Minister of Labour and Employment, Simon Bako Lalong; Minister of State for Labour and Employment, Mrs. Nkeiruka Onyejeocha and Minister of Information and National Orientation, Mallam Mohammed Idris. 

NLC and TUC Presidents – Joe Ajaero and Festus Osifo, with the NLC General Secretary, Emmanuel Ugboaja and his TUC counterpart, Nuhu A. Toro signed for Labour.  

The statement reads in part, 

  • “Federal Government accepts to vote N100 billion for the provision of high capacity CNG buses for mass transit in Nigeria. Provisions are also being made for initial 55,000 CNG conversion kits to kick start an auto gas conversion programme, whilst work is ongoing on state-of-the-art CNG stations nationwide. The rollout aims to commence by November with pilots across 10 campuses nationwide.” 

At the end of the meeting, the Labour centres agreed to suspend for 30 days, the planned indefinite strike scheduled to begin today. 

After six hours of intense negotiations with the Federal Government, the Labour Party announced the suspension. 

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In addition, both parties agreed to extend the implementation of the N35,000 provisional wage increment for all federal workers until a new minimum wage is established.

Additionally, they decided to suspend the Value Added Tax (VAT) on diesel for a six-month period, commencing in October. 

Moreover, the Federal Government also pledged to address the leadership turmoil within the NURTW and the reported ban on the RTEAN, ensuring that labour issues are managed in accordance with the pertinent ILO Conventions and Nigerian Labor Laws, as well as implement measures for tax waivers as a short-term stimulus for economic growth in the private and public sector.  

  • ”The Federal Government plans to implement various tax incentive measures for the private sector and the general public. 
  • “On the leadership crises rocking the NURTW and the purported proscription of RTEAN, the Federal Government commits to handling Labour matters in line with relevant ILO Conventions and Nigerian Labour Acts. A resolution of the ongoing impasse is expected by or before October 13,“ the statement reads.  

After the six-hour meeting with the Federal Government and wide consultation with various stakeholders, the union decided to suspend the planned nationwide strike.  

Ajaero, however, said that if the agreements are not implemented within the stipulated timeframe, the strike issue would be revisited. 

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