The Trade Union Congress (TUC) has proposed a “production subsidy” for the Dangote Refinery and other modular refineries as a way to reduce the rising cost of premium motor spirit (PMS), commonly known as petrol.

TUC President Festus Osifo made the proposal on Friday while speaking on Politics Today, a current affairs programme on Channels Television.

Osifo said that since the Federal Government has ruled out reintroducing petrol subsidies, alternative measures are needed to ease the burden of high fuel prices on Nigerians.

“So for us as a country, we are making a lot of money. In excess of what we budgeted. All right, so today we make at least $35 or so dollars per barrel beyond what we budgeted,” Osifo said on the programme.

He outlined the TUC’s proposal, focusing on redirecting excess oil revenue to support local refining.

Osifo queried, “So, what we proposed, knowing and understanding that they wouldn’t want to bring consumption subsidy, we were advocating for a production subsidy.

“Production subsidy, in that today we have modular refineries, right?

“So we were advocating that this extra $35, for example, that you are making per barrel, why don’t you take half of it, for example, and use it to subsidise the crude that you are giving to Dangote Refinery and the modular refineries so that they will be able to produce cheaper PMS?”

Petrol prices have surged significantly in recent weeks, rising from about ₦800 to around ₦1,300 depending on location, following the outbreak of the US/Israel-Iran War.

Despite mounting pressure to reinstate fuel subsidies, which were removed when Bola Tinubu assumed office in May 2023, the Federal Government has maintained its stance against the policy.

On Tuesday, Nigeria’s Coordinating Minister of the Economy and Minister of Finance, Taiwo Oyedele, speaking in Paris at an event, said the Federal Government will not reintroduce subsidies or impose price controls, reaffirming its commitment to market-driven economic reforms.

“We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market… the situation in Iran presents new opportunities for us as the world looks to diversify sources of energy and invest in new markets,” said Oyedele.

Osifo, however, urged the government to explore creative solutions to support citizens amid rising living costs.

But Osifo wants the government to “think out of the box and quickly do things to assist its citizens”.

The National Assembly on Thursday passed the 2026 Statutory Appropriation Bill for the Federal Capital Territory, approving a total expenditure of N2.285tn for the development and administration of the nation’s capital.

The approval followed the presentation and consideration of the harmonised report of the Senate and House of Representatives Committees on the FCT during plenary.

The report was presented by the Vice Chairman of the Senate Committee on the FCT, Austin Akobundu (Abia Central), on behalf of the committee chairman, Ibrahim Bomai (Yobe South).

Presenting the report, Akobundu said the joint committees recommended the sum of N2.285tn as the FCT statutory budget for 2026 from a projected revenue of N2.385tn.

He explained that the budget proposal contained N165.7bn for personnel costs, N378.2bn for overhead costs, while N1.741tn was allocated to capital expenditure.

According to him, the structure of the budget indicated a strong focus on infrastructure development and public service delivery, with 76.19 per cent of the total allocation devoted to capital projects, while recurrent expenditure accounted for 23.8 per cent.

Akobundu said the appropriation process complied with constitutional provisions and emerged after extensive deliberations between the National Assembly committees and officials of the Federal Capital Territory Administration.

He said, “The committees met with the minister and other relevant officials of the FCTA and deliberated extensively on the subject matter.”

Lawmakers who contributed to the debate commended the fiscal framework of the budget, describing it as balanced and development-oriented.

Deputy President of the Senate, Jibrin Barau, praised the spending plan, saying it demonstrated a strong commitment to infrastructural renewal in the FCT.

He said, “Mr President, the budget is top-notch. You know, I am the only one in the history of the legislature in this country that has had the opportunity to serve as chairman appropriation committee in the House and in the Senate.

“So when I see a good budget, I know it’s a good budget. It is a budget that’s top-notch. We have to commend the FCT minister for doing a very good job.

“A budget that you have a total of N2.2tn, and out of this, N1.7tn is going for capital. It shows his willingness and determination to continue to show FCT to the admiration of all.”

Abdul Ningi (Bauchi Central) described the appropriation as well-structured and responsive to concerns previously raised by lawmakers during oversight engagements with the FCTA.

Ningi said the budget was well-packaged and well-balanced, considering the observations made by the Senate Committee on the FCT last year.

The Senate thereafter passed the bill through third reading, paving the way for its transmission for presidential assent.

At the House of Representatives, the lawmakers also passed the 2026 statutory budget proposals of the FCT.

They also passed N1.75tn respectively for the Niger Delta Development Commission.

The approvals followed the consideration and adoption of reports presented to the House during plenary by the relevant committees.

Presenting the report on the FCT budget, Chairman of the House Committee on the Federal Capital Territory, Muktar Betara, said the N2.29tn proposal was structured to address personnel obligations, overhead costs and critical infrastructure projects across the nation’s capital.

According to him, “Out of the N2.29tn, the sum of N165.78bn is for personnel costs while N378.23bn is for overhead costs.

“The balance of N1.74tn is for capital projects, for the service of the Federal Capital Territory, Abuja, for the financial year commencing January 1 and ending December 31, 2026.”

A breakdown of the recurrent expenditure showed that the Federal Capital Territory Administration secured N151.44bn for its operations.

In what lawmakers described as part of ongoing efforts to strengthen security architecture in Abuja and surrounding satellite communities, the House approved N6.79bn for the security services department of the FCTA.

The lawmakers also approved N1.51bn and N910.20m for the FCT Muslim Pilgrims Welfare Board and the Christian Pilgrims Welfare Board, respectively.

For capital projects, the education sector received N162bn, while engineering services got the largest allocation of N758.15bn.

The resettlement and compensation department was allocated N143.18bn, public buildings received N2.38bn, while the satellite towns development department secured N212.74bn.

Meanwhile, details of the N1.75tn NDDC appropriation obtained by The PUNCH showed that N47.57bn was earmarked for personnel costs, while overhead expenditure stood at N49.93bn.

The commission also secured N22.36bn for internal capital expenditure, with the bulk of the budget — N1.63tn — dedicated to development projects across the oil-producing Niger Delta region.

The approval followed the consideration of a report presented by the Chairman of the House Committee on NDDC, Erhiatake Ibori-Suenu.

For the NDDC, the passage of the N1.75tn budget is expected to strengthen intervention projects in the oil-rich region, where concerns over underdevelopment, environmental degradation and youth unemployment have persisted for decades despite the area’s contribution to national revenue.