Workers to reject downsizing of public
work force
• Fuel scarcity persists despite price hike
• Naira may exchange for N283 to dollar
Three days to the threatened mass
action against government’s increase in
the price of petrol, indications emerged
yesterday that the Federal Government
would meet organised labour today in
Abuja over the issue, dangling a carrot
before labour leaders.
The Guardian learnt that at the meeting
slated for 3:00 p.m. at the Federal
Ministry of Labour and Employment,
the Federal Government will be coming
to the parley with the proposal for a
new minimum wage that is fixed at
N45, 000.But the increase comes with
some provisos including reduction in
the number of civil servants and
merging ministries and agencies.
Indeed, the President of the Nigeria
Labour Congress (NLC), Ayuba Wabba
confirmed the scheduled meeting
saying he got a text message inviting
him and other labour leaders to the
meeting.
A source in the Presidency told The
Guardian that ministers had been told
to lead the initiative on the
downsizing.Also, the Efficiency Unit in
the Federal Ministry of Finance, which
is saddled with coming up with cost
reduction strategies is working on the
template for the reduction.
The Federal Government would also be
relying on the report of the Steve
Oronsaiye’s panel on the rationalisation
of the civil service in the streamlining
process.
It was also learnt that though
government said it would not devalue
the naira, it would indeed embark on
what it termed ‘appropriate’ value of
the national currency, which may be in
the region of N283 to the dollar.
Meanwhile, fuel scarcity persisted in
most of the major cities of the country
yesterday despite hopes that petrol
would be available since government at
the last Federal Executive Council
meeting raised the pump price of petrol
to N145 per litre.Yet, some outlets are
retailing for as high as between N150
and N175 per litre.
A visit to some areas in Lagos showed
that most petrol stations were under
lock and key, with only one or two
selling the product for N145 per litre.
In a related development, the Arewa
Defence League (ADL) has called on
Nigerians to stand by the current
administration over the recent increase
in pump price of petrol, saying the
increase is not meant to worsen the
sufferings of the masses but aimed at
ensuring availability and sustainability
of the product.
But the NLC President, Ayuba Wabba,
berated the government that promised
to create jobs but was now tinkering
with the idea of embarking on one of
the most massive job losses Nigeria has
every witnessed.
He added: “We cannot be talking about
creating jobs and at the same time be
talking about mass sacking of workers.
This is a government that promised
jobs and now, it wants to embark on
mass sacking of workers. It is difficult
to reconcile the two extreme ends. We
will not accept any proposal for job cuts
if put across to us.”
Wabba pointed out that the challenge
of retrenching workers has always been
that government at all levels has failed
to make provision for payment of
entitlements.
He explained: “Well, every employment
has terms of agreement. Nobody can
force any worker on an employer and
no employer can insist a worker works
for him. But very importantly is the fact
that exit strategies must be in place for
painless exit. The problem over the
years has been that government
disengages people without preparing
for the payment of their gratuities and
pension. I believe there are many
employees that will be happy to leave
today if all their entitlements are
ready.”
While hinting that while the labour
centre and their civil society allies are
ready to come to the negotiation table,
he explained that the issue at stake is
far more germane than price increase.
He said: “I must say that the issues are
beyond the price increase and dollar
exchange rate. The issues are about the
totality of the corruption that has
characterised the downstream sector
for many decades. Simply pegging the
exchange at some N285 or so will not
address the problem. It is a simple
matter that if the demand outstrips the
supply end, the price of the dollar will
increase and Nigerians will continually
pay for petrol. So, there would be no to
price increments if the fundamentals
are not discussed.”
Wabba said while labour is open-
minded about all the issues, it will push
for solving the challenges with
timelines that would be respected.
“Just increasing the price is taking the
easy way out. This is because, as the
President and Dr. Kachikwu have
observed in the past, what has held the
downstream sector down is corruption
especially as it concerns the landing
costs. What government is trying to do
now is transferring the burden to the
Nigerian people. What government
needs to do is to find the right mix to
put an end to the quagmire.”
Long queues have remained at filling
stations, including at the popular NNPC
mega stations which offered Nigerians
some respite before the increase.Black
marketers were also in active business,
with some selling at N350 per litre.
Besides, with the upward review of the
Price of Premium Motor Spirit (PMS),
otherwise known as petrol from N86.50
to maximum of N145 per litre (about
$0.73), the cost of petrol in Nigeria is
about the lowest in Africa and among
some oil producing countries.
Data obtained from GlobalPetrolPrices,
which was updated at the weekend,
showed petrol in Chad costs $0.78 per
litre; Togo, $0.80 per litre; Kenya, $0.81
per litre; South Africa, $0.84 a litre;
$0.85 a litre; Niger, $0,90; Ghana, $0.92;
Sierra Leone, $0.94; Uganda, $0.97 and
Angola, $1.00 per litre.
Also, in Rwanda, Mali, Malawi, Guinea,
a litre of petrol sells for $1.15, $1.15;
$1.17; $1.17 respectively, which are far
higher than the price in Nigeria.
Long queues have remained at filling
stations, particularly at the popular
NNPC mega stations which offered
Nigerians some respite before the
increase.Black marketers were also in
active business, with some selling at
N350 per litre.
Attendants at one of the filling stations
along Oshodi -Apapa Expressway, Lagos
told The Guardian yesterday the retail
station had already run out of the
commodity before the announcement
of the new price regime.
Experts believed that the recent hike in
the price of fuel would lead to hardship
and have therefore urged government
to initiate measures to ameliorate the
effects on the economy.
A Head of the Department of Petroleum
Engineering and the Deputy Director,
Centre for Petroleum, Energy
Economics & Law. Dr. Olugbenga
Falode, told The Guardian that this is
because whatever happens in the oil
sector affects all other sectors of the
economy and by implication, it affects
the macro-economic policies of the
country.
Also, a Professor of Technology
Management, Obafemi Awolowo
University, Ile-Ife, Francis Eniterai
Ogbimi, said that mere adoption of
deregulation and privatisation cannot
build refineries and increase refining
crude petroleum. Increased production
is the solution to low supply, not the
adoption of ideologies like capitalism
deregulation, privatisation,
liberalisation, socialism or communism,
he said.
According to him, only seven per cent
of the nations in the world practise full
deregulation of the sale of petrol,
adding that the United States does not
practise full deregulation as the
American government controls the
price of petrol.
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