Nigeria's main labour union has announced its intention to embark on a strike starting from Wednesday in protest against the significant increase in fuel prices, following the removal of the fuel subsidy by President Bola Tinubu.

This strike will serve as a major challenge for the newly elected president.

The removal of the subsidy has resulted in a sharp increase in transportation fares, impacting the cost of living for Nigerians. In response, Estonian ride-hailing and food delivery startup, Bolt, has also raised its prices in Nigeria due to the higher operating costs resulting from the surge in fuel prices.

The fuel subsidy in Nigeria previously cost the government billions of dollars annually but was popular among the population as it helped maintain low prices in the country, despite being Africa's largest oil producer.

However, Nigeria continues to grapple with high poverty rates, with the Nigerian Bureau of Statistics reporting that 63% of the population lives in poverty, and the World Bank stating that up to 40% of Nigerians fall below the national poverty line.

The government argues that the removal of the subsidy, which caused fuel prices to skyrocket from 189 naira to 557 naira per litre, is necessary to address the ongoing funding crisis. However, the president of the Nigerian Labour Congress (NLC), Joe Ajaero, demands that the state oil company NNPC reverse the price hike.

Ajaero declared during an emergency meeting of the union's executive council in Abuja, “The Nigeria Labour Congress decided that if by Wednesday next week, NNPC, a private limited liability company that illegally announced a price regime in the oil sector, refuses to revert itself for negotiations to continue, that the Nigeria Labour Congress and all its affiliates will withdraw their services and commence protests nationwide until this is complied with.”

It is worth noting that a similar attempt to remove fuel subsidies in 2012 resulted in widespread strikes, eventually leading to the reinstatement of some subsidies.

At that time, President Tinubu, who was then in the opposition, was among those who opposed ending the subsidies.

President Tinubu also addressed the need to review the minimum wage, which currently stands at 30,000 naira ($65). He emphasized the importance of conducting a comprehensive assessment and strengthening revenue collection.

The coming days will reveal the outcome of negotiations between the Nigerian Labour Congress and the government, as well as the potential impact of the proposed strike on the country.