•Moves to avert strike
•Labour asks Nigerians to stockpile food, threatens
to shut down economy
•Let’s endure – Ngige
By Victor Ahiuma-Young & Johnbosco Agbakwuru
ORGANISED labour, yesterday, insisted it would
shut down the economy from Wednesday, May 18,
should the Federal Government fail to revert the
pump price of petrol to the pre-May 11 price of
N86.50, among other demands, by midnight of
Tuesday, May 17.
The declaration was made on a day indications
emerged that government was disposed to
amicable settlement of the price hike impasse with
labour.
In the meantime, the umbrella body for private
sector employers in the country, Nigeria
Employers’ Consultative Association, NECA, has
faulted the plan by labour to go on strike, urging
the private sector employees to ignore the strike
directive and go about their normal businesses.
Also, the Nigeria Labour Congress, NLC, faction led
by Mr. Joe Ajaero, said it would be meeting with
market women and other informal sector workers
and civil society groups on how to force the
Federal Government to meet its demands.
At a joint National Executive Council, NEC, meeting
in Abuja, Trade Union Congress of Nigeria, TUC,
and the NLC faction, led by Ayuba Wabba,
threatened that once the strike commenced, all
financial institutions, airports, seaports and private
schools, companies and others would be shut.
They urged Nigerians to stockpile food and other
essential needs to last them during the duration of
the strike.
In a communique at the end of the NEC meeting,
the Wabba-led faction of the NLC and the TUC
leader, Bobboi Kaigama, argued that the price hike
from N86:50 to N145, representing 67.63%
increase, was the height of insensitivity and
impunity as there were no consultations with
stakeholders, especially the organised labour, “or
any justification for this reckless decision other
than the fact that government believes it is
accountable to no one.”
The two labour leaders said the meeting debated
extensively the implications of government’s
unilateral increase in the prices of petroleum
products, noting government’s disinclination for
consultation on issues of public interest and its
obsession with protecting product marketers at the
expense of the public.
“During the electioneering campaign last year, the
presidential candidate of the All Progressives
Congress (APC), Muhammadu Buhari, had
promised that, if elected, he would not remove fuel
subsidy if there was any at all. After his election,
President Muhammadu Buhari had maintained that
there was no subsidy in the petroleum product
price regime and that, even if there was, he did not
see how its removal would be beneficial to the
ordinary Nigerian, noting that the slightest product
price adjustment often leads to inflationary spiral
and unimaginable suffering for the people,”they
said.
The labour leaders went on: January 18, 2016, the
government further allayed the fears of the Nigerian
people by reducing the pump price of PMS to
N86:50, explaining that the reduction was in
furtherance of the implementation of the revised
component of the Petroleum Products Pricing for
PMS and kerosene. The Minister of State for
Petroleum Resources, Dr Ibe Kachikwu, had been
speaking from both sides of his mouth. Whereas
last year, he had strongly canvassed for the
removal of ‘subsidy’ in defiance of President
Buhari, about a month ago, he claimed the subsidy
had been removed through his ingenuity and that
Nigeria was saving $1billion from this process.
Organized labour wonders what has informed
government’s sudden and dangerous policy
summersault and its desperate attempt to
convince the public that labour was part of the
decision that led to this price increase.
“In view of the fact that the board of the Petroleum
Products Pricing Regulatory Agency (PPPRA),
which is statutorily vested with powers to
recommend prices, has not been reconstituted, the
price variation announced by any officer of the
agency or outside the agency is not only ultra
vires and illegal, it is a criminal imposition on the
citizenry. The price hike from N86:50 to N145,
representing 67.63% increase, is the height of
insensitivity and impunity as there was no previous
consultation with stake holders, especially the
organized labour, or any justification for this
reckless decision other than the fact that
government believes it is accountable to no one.
“The Minister of State for Petroleum Resources
declared that marketers will have to source their
dollars from the secondary market. The attendant
pressure on the dollar will lead to unimaginable
rise in prices of commodities and other services,
thus creating further hardship for the people. Due
to the volatility of the black market, organized
labour doubts that government would be able to
maintain PMS pump price at N145 per litre were
the hike acceptable or justifiable. At the time the
PMS pump price was fixed at N145, the exchange
rate at the black market was N320 to the Naira.
“Between Wednesday and today (Saturday) when
the new pump price was announced, the Naira has
further crashed against the dollar, first to N340 on
Thursday, then N365 on Friday morning and N385
by close of business on Friday, all in 48 hours. At
this rate, we believe it will not take long before the
Naira becomes entirely useless against the dollar.
It is thus morally and economically suicidal to have
tied the importation of products to the secondary
market exchange rate.
“In view of the fact that in the past five years, there
has been no increase in salaries or wages or
pensions in the face of devaluations, spiralling
inflation and other vagaries of the economy, this
product price increase is unrealistic, unaffordable,
unacceptable and is thus rejected. Government is
unable to justify this price increase other than the
puerile explanation that marketers need to recover
their costs, without a thought for the aggregate or
larger national interest including the need for local
refining and creation of jobs.
To avert anything that could paralyse the economy,
the organised labour advised government to “revert
to the old price regime in order to reduce the
suffering of the people and to consider this singular
act of mindless pump price increase as a betrayal
of trust. Revert to the pre-45 percent electricity
tariff increase, make meters available to consumers
and stop estimated billing. Reconstitute the boards
of PPPRA and NNPC without further delay and give
them their statutory right to function alongside
DPR in order to deepen the process of
consultation, checks and balances in the
downstream sector of the petroleum industry.
“Intensify the prosecution of all those involved in
subsidy scams with a view to recovery and
sanctioning of the culpable. Put in place enhanced
local refining capacity within a specified period in
place of endless importation as an enduring
solution to the perennial problem of scarcity.
Reverse the entire deregulation and privatization
process which foists on the nation, private
individuals as drivers of the economy in
contravention of the constitutional provision that
says government shall be the driver of the
economy and engage the organised labour in the
process of negotiation on key policy issues;
uphold its electioneering promises to Nigerians
instead of subjecting them to the vagaries of
slavish policies such as full devaluation of the
naira and total removal of subsidy as enunciated
by the IMF and its agents in the system.”
They however warned that if the government
became adamant to adhere to the above advise,
before 12 midnight on Tuesday, May17, 2016, the
Nigeria Labour Congress, the Trade Union
Congress and their civil society allies would
mobilize to the streets across the country, ordinary
and helpless Nigerians to whom they owe the duty
of protection.
Other actions that would be taken by the labour
they enumerated include the shut down of all
banks, sea and airports, government and private
offices as well as markets and indefinite nationwide
strike action.
NECA faults strike
Plea for understanding
There were indications, yesterday, that government
was disposed to engaging the organised labour
to avert the labour strike.
Multiple sources in Abuja told Sunday Vanguard
that the Federal Government was counting on the
understanding of labour to resolve all issues
relating to the fuel price hike.
“We have been meeting with the labour unions in
our bid to carry them along on this matter. But
government is ready to engage them further to
ensure that we are on the same page in the
interest of the nation”, one of the sources said.
“The Minister of State for Petroleum, Dr Ike
Kachikwu, had been meeting with the labour
unions. NLC, TUC, PENGASSAN and NUPENG were
all involved in the meeting that had in attendance
the Minister and the National Assembly leadership.
You will notice that NUPENG and PENGASSAN
have supported the move by government to hike
the price of petrol.
“The only objection I believed NLC raised was on
the composition of the Board of the PPPRA. And
government told them that work would be done on
that. I have not yet checked the status of that.
Beyond that, that was no other issue.
“Now, the more important part is that the
petroleum minister has been meeting with them
even before last Wednesday meeting.
“The minister is confident because he has been
talking with them. Government had understanding
of the NUPENG and PENGASSAN. It is now NLC and
TUC that have refused to do so.
Let’s endure– Ngige
Also, yesterday, the Minister of Labour and
Employment, Senator Chris Ngige, told
Nigerians to endure the hike in the price of petrol,
saying it would help to revive the economy.
The Minister explained that the government action
was influenced by the need to reposition the
economy into a productive one.
Speaking when he paid a visit to the South East
regional office of the Nigeria Social Insurance Trust
Fund, NSITF, in Enugu, he explained that Nigeria
was passing through painful structural reforms
necessary for rebirth.
“The Federal Government is not unaware of the
hard times Nigerians are passing through as a
result of the re-structuring of the economy. The
President is genuinely concerned and personally
feels the pains too. But this is a necessary phase
we must all endure for the restoration of better
days,” Ngige said.
Also speaking to Sunday Vanguard, yesterday,
member of House of Representatives representing
Mangu/Bokkos Federal Constituency, Plateau State,
described the petrol price hike as ill-timed. He
said, “We are all aware that the APC government
promised that if elected, it will make N1 equal to
one dollar. But today, what do we have? It is N340
to N350 to a dollar and you are removing subsidy.
Meanwhile, NECA has expressed support for
government’s deregulation of the downstream
sector of the oil and gas industry, saying “the
policy is a crucial first step in the resolution of the
perennial dependence of Nigeria on imported
petroleum products.”
Speaking in Lagos, the Director General, Mr
Olusegun Oshinowo, praised the Federal
Government for the courage it had demonstrated,
which past administrations had unwittingly shied
away from by embracing a policy option that
would jump start significant reform in the
downstream sector and impact positively on the
economy both in the short and long terms.
Pro-democracy group mobilises
The leadership of the United Action for Democracy,
UAD, yesterday, told the Federal Government to
reverse its decision to remove petrol subsidy or
face the wrath of the people.
In a five-point demand, the National Convener of
UAD, Comrade Baba Aye, called for “immediate and
unconditional reversal of PMS (petrol) to N86.50; a
public audit of the NNPC’s cash flow, involving
trade unions, professional associations and civic
organisations.”
Other demands by the group included,
“nationalisation of the petroleum industry and its
democratic management and control by, and for
working class-people; an end to the wave of anti-
poor people neoliberal policies of privatisation and
deregulation as well as putting people before
profit; Enactment of a N56,000 national minimum
wage Act.”
Meantime, Petroleum and Natural Gas Senior Staff
Association of Nigeria, PENGASSAN, has said it
did not support fuel hike but deregulation.
The leadership of the association, the press briefing
by the NLC and TUC, in Abuja, debunked the claim
that it had supported the hike, saying no decision
had been taken on it.
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