According to a video posted on the official YouTube channel of Mic On Podcast on Saturday, October 3, 2026, the President of the Nigeria Labour Congress, Joe Ajaero, has explained how the exchange rate affects the price of petrol in Nigeria.
Ajaero spoke about the hardship faced by Nigerian workers and the 2023 agreement between organised labour and the administration of President Bola Ahmed Tinubu.
During the interview, the host noted that the exchange rate averaged about ₦789 to the dollar in October 2023, while petrol sold for about ₦631 per litre.
The host then asked whether the ₦70,000 minimum wage signed into law by President Tinubu would still have the same value following the changes in the exchange rate.
Responding to the question, Ajaero explained that the removal of fuel subsidy was closely linked to the exchange rate because Nigeria imports petroleum products.
He said, “You are trying to say subsidy is gone. Now, when you remove subsidy on a product that you are not refining here indigenously, it will depend on the currency, the exchange rate, for you to buy finished product into the country.”
Ajaero said the naira was valued at about ₦700 to the dollar when the agreement was reached with the Tinubu administration. According to him, the exchange rate later moved to about ₦1,400 to the dollar.
He said neither labour nor the government could have reasonably predicted such a significant change in the exchange rate when the agreement was reached.
Ajaero described the fall in the value of the naira as a market development that was beyond the control of organised labour.
He also said the government needed to address inflation and the declining value of the naira to ensure that the ₦70,000 minimum wage maintained its purchasing power.
When asked whether he would agree to another negotiation if there was another 100 per cent increase in petroleum product prices or further currency devaluation within the next three years, Ajaero answered in the negative.
COURTESY: KKDigitalTips
