Nigeria’s new president, Bola Tinubu, has said he will unveil wage awards for workers next week to cushion the effects of removing the fuel subsidy. The subsidy, which kept petrol prices low for decades, was scrapped by Tinubu in his inaugural speech on Monday, sparking panic and chaos across the country.

The labour movement, comprising the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), had demanded wage awards to mitigate the impact of the subsidy removal, which they said would increase the cost of living and worsen poverty. The unions had also threatened to go on strike if their demands were not met.

However, Tinubu’s administration said it had engaged the unions in dialogue and reached an agreement on the wage awards. The Minister of Labour and Employment, Simon Lalong, told the TUC that he had met with Tinubu and the Minister of Finance, Wale Edun, on the matter and that the president would make a formal announcement next week.

Lalong also said the government had released palliatives to the states to help the poor and vulnerable cope with the subsidy removal. He said the government would monitor the distribution of the palliatives and ensure transparency and accountability. He added that the government was also working on other issues raised by the unions, such as taxation and the use of compressed natural gas (CNG) as an alternative to petrol.

The subsidy removal is part of Tinubu’s economic reform agenda, which aims to reduce the fiscal burden on the government and free up funds for infrastructure and social development. Tinubu, a former governor of Lagos state, won the February election with 37% of the vote, defeating his main rivals Atiku Abubakar and Peter Obi, who are challenging the outcome in court.

The subsidy removal has been met with mixed reactions from Nigerians, some of whom support the policy as a necessary step to improve the economy, while others oppose it as a harsh measure that will worsen their living conditions. Many Nigerians have also expressed frustration with the long queues and high prices at petrol stations, as well as the increase in transport fares and other goods and services.

The government has appealed for calm and patience, saying the subsidy removal will have long-term benefits for the country. It has also assured Nigerians that it will address the challenges of refining capacity, supply and distribution, and quality control of petroleum products. It has also promised to invest in renewable energy sources and promote environmental sustainability.