Subsidy: Probe NNPCL’s spendings on refineries, Ohaneze youths tells FG
The Ohanaeze Ndigbo Youth Council has called on the federal government to investigate how funds were spent by the Nigeria National Petroleum Company Limited (NNPCL) on refineries in the last 8 years. According to the National President, Ohanaeze Ndigbo Youth Council, Maxi Okwu Nnabuike, it would help unravel the fraud in the subsidy scheme. The administration of immediate past President Muhammadu Buhari had stopped funding of petrol subsidy in the 2023 budget. According to the budget posted on the website of the Budget Office of the Federation, funding of petrol subsidy by the federal government is expected to end by June 30. However, President Bola Ahmed Tinubu during his inaugural speech had said the era of subsidy was gone. Nnabuike noted that by doing it, the government will earn the trust of Nigerians. He said the council have followed the major developments in the country over the removal of fuel subsidy by the immediate past administration of President Muhammadu Buhari. “We recall that prior to the 2023 general election, all the major presidential candidates, Alhaji Atiku Abubakar of the Peoples Democratic Party, PDP, President Bola Tinubu of the All Progressives Congress, APC, and Peter Obi of the Labour Party, promised one thing in common- removal of fuel subsidy. They all said it was fraud and must be made away with. “The immediate past administration of Muhammadu Buhari also prepared the ground for the eventual end of the subsidy regime by not budgeting for it beyond June, 2023. It is curious that the former president did not have the political will to end the subsidy regime but laid it as a landmine for the new administration. “If not, how could it stay in power for eight solid years without reviving even one out of the four refineries in the country? What happened to all the billions of naira spent on so-called turnaround maintenance of the refineries? “We demand that one of the first steps this administration must take is to probe into the spendings on the refineries in the past eight years. It should also take a step further in unravelling the fraud called subsidy. This is one of the ways the government will earn public trust and confidence as it goes on with the task of reshaping the country’s economy. “Having said this, we also want to observe that we view the opposition to the removal of subsidy by the Nigeria Labour Congress, NLC, with huge suspicion. We are not unaware of the harsh economic realities occasioned by the subsidy removal, but the truth is that judging by antecedents, we don’t trust the labour unions in the country. “On several occasions, they have failed the masses when it mattered most. Under the immediate past administration of Buhari, they always started a fight but chickened out at the last minute, leaving the masses to their fate. “Nothing has changed- they are at it again this time, trying to use the subsidy removal to cash out as usual. But our stand is that they should stop deceiving the gullible public; all of us cannot be fooled at the same time. “Besides, the independent marketers and the NNPCL are even the worst enemies of the citizens. We find it rather strange that a few hours after President Tinubu announced that the subsidy was gone, they promptly adjusted their pump price to over N500.000. Isn’t this the same subsidy that was budgeted for till the end of June,” he said.
NLC, TUC suspend proposed strike after meeting with FG
Nigerian labour unions have suspended the proposed strike scheduled for Wednesday, June 5 after meeting with government officials at the Presidential Villa in Abuja. Both parties met for two days but no resolution was met to halt the proposed industrial action. Labour unions are opposing the removal of fuel subsidy by President Bola Tinubu, causing petrol prices to jump over N500 per litre in different parts of the country. Nigeria Labour Congress (NLC) president Joe Ajaero and his team arrived at the presidential villa at about 5:45 pm on Monday. The NLC was absent at the meeting between the government representatives and organised labour on Sunday. Representatives of the Trade Union Congress (TUC) were however in attendance. Federal government representatives at the meeting on Monday included House of Reps speaker Femi Gbajabiamila, Dele Alake, spokesperson for the government’s delegation; group CEO of NNPCL Mele Kyari, former governor of Edo state Adams Oshiomhole and former governor of Ogun State Ibikunle Amosun. Our correspondent gathered that the labour unions agreed to halt the strike for government to introduce plans to cushion the effect of fuel subsidy removal on Nigerians. Gbajabiamila said the Federal Government, the TUC and the NLC would establish a joint committee to review the proposal for any wage increase or award and establish a framework and timeline for implementation. “The Federal Government, the TUC and the NLC would review World Bank Financed Cash transfer scheme and propose inclusion of low-income earners in the programme,” Gbajabiamila said. “The Federal Government, the TUC and the NLC to revive the CNG conversion programme earlier agreed with Labour centres in 2021 and work out detailed implementation and timing. “The Labour centres and the Federal Government to review issues hindering effective delivery in the education sector and propose solutions for implementation. “The Labour centres and the Federal Government to review and establish the framework for completion of the rehabilitation of the nation’s refineries. “The Federal Government to provide a framework for the maintenance of roads and expansion of rail networks across the country.” Prior to the meeting, the National Industrial Court restrained the labour unions from embarking on any form of strike. Ruling on an exparte application filed before the court, Justice O.Y. Anuwe restrained the defendants (the TUC and the NLC) from embarking on the planned nationwide strike on Wednesday pending the hearing and determination of the motion of notice dated June 5, 2023. The judge also ordered that the defendants be immediately served with the originating processes, the motion on notice and the order of the court.
Subsidy Removal: FG mulls TUC’s demands, sets up c’ttee to review minimum wage
The Federal Government has said it will consider the list of demands from the Trade Union Congress (TUC) which includes a review of the minimum wage for workers in Nigeria. Speaking to State House correspondents after a meeting between the Federal Government and the TUC which lasted for about several hours, the spokesperson for the Federal government, Dele Alake, said that it will also look at the practicability of the demands. Among things the government is considering is tax holidays for workers. Alake said that most fundamentally, President Bola Tinubu will constitute a tripartite committee to include states and organised labour and the private sector to study the dynamics of the minimum wage augmentation with a view to reach an amicable conclusion. According to him, there is no disagreement with the Nigeria Labour Congress (NLC) over their demand for a review of the minimum wage or a return to the status quo, noting that the FG representatives will meet with the President to crystallize decisions on the demands. He added that the absence of the NLC does not translate to an isolation of the group in the discussion but that the FG is making efforts to reach them as the parties agreed to reconvene on Tuesday 24 hours before the scheduled strike by the NLC. Meanwhile, the TUC has maintained that the Federal Government, in the interest of social dialogue, revert the price of fuel while discussions continue. President of the TUC, Festus Osifo, said the union is hopeful as the Federal Government promised to look into their demands, the top of which is a review of the current minimum wage among others. “The demands are so long, they are so many. Part of it is the demand for a (review) of the minimum wage and we stated that for us, it is quite apt that the minimum today is not a living wage, as we all know. The value of the minimum wage since it was negotiated, has plummeted to a very abysmal level as it is today.” *Channels
Proposed Strike: No division in our ranks-NLC
*Says media reports, a product of mischief The Nigeria Labour Congress (NLC) has refuted reports that it is divided in the group ahead of thier planned nationwide strike on Wednesday. The union had given the federal government till Wednesday to reverse the current hike in fuel price or face mass action to protest the removal of subsidy. In a statement on Sunday, the NLC Head of Information and Public Affairs, Benson Upah, said the lead story by ThisDay Newspaper was laughable and sheer mischief. “The lead story on the front page of ThisDay of Sunday, June 4th, 2023 entitled NLC Divided as North, South-West Chapters May Shun Planned Strike , is a laughable and desperate attempt by enemies of the people to polarise Nigeria Labour Congress along ethnic or regional lines on an issue with a national spread. “Happily, this scenario only plays in their imagination as Nigeria Labour Congress continues to be the biggest pan-Nigerian organisation united by a common vision/mission and shared national values. “On the looming strike action, we want to assure that all the affiliate unions of the Congress stand together with an unshakeable resolve to prosecute, come Wednesday, except the NNPC and Government do the needful. “Whereas, primordial sentiments such as religion, region or ethnicity may be refuge for some, at the Nigeria Labour Congress, they have no place. “What counts for us are issues such as the mindless and criminal increase in the pump price of pms whose burden will be borne by the already impoverished communities of the poor across Nigeria. “The burden of this malevolent policy will not be borne by other segments of the country to the exclusion of the North or South- West. Thus, there is no reason for these regions to back out of the strike. “We do not know from where ThisDay got their story. However, if this is their way of making up for the gaps in their relationship with the new entities in power, we would say, it is rather excessive!” the statement said.
Subsidy Removal: FG, TUC in closed-door meeting
The representatives of the Federal Government are meeting with the Trade Union Congress (TUC) at the State House over the removal of fuel subsidy. This is a follow-up to Wednesday’s meeting with the organized labour which ended in a deadlock. At that meeting, the Nigerian Labour Congress (NLC) demanded that the Federal Government go back to status-quo by reversing the price of fuel before resuming negotiations with the union. In Sunday’s meeting, the federal government’s team is led by the Secretary to the Government of the Federation (SGF), Senator George Akume. Others are the Governor of the Central Bank of Nigeria (CBN), Godwin Emefie; former Governor of Edo State, Comrade Adams Oshiomhole; and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari. Also in the meeting are the Executive Secretary of the National Sugar Development Council (NSDC), Zacch Adedeji; Executive Vice President, Downstream, of the NNPCL, Yemi Adetunji; former Lagos State Commissioner for Information and Strategy, Mr Dele Alake; Hon James Faleke, among others.
FG’s approval for private importers will crash fuel price, says IPMAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN), has commended the Federal Government for approving the importation of petroleum products by private firms. Mr. Chinedu Anyaso, Chairman of IPMAN Enugu Depot Community, in charge of Anambra, Ebonyi and Enugu States, said this while reacting to the development in Awka on Sunday. The Managing Director of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, on Friday, said private marketers could now import petrol into the country. Farouk said under the new arrangement, the NNPCL had ceased to be the sole importer of petrol into Nigeria. “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to any prospective importer. “The market is now open for everybody that wants to import as far as they meet all the requirements. The NMDPRA will no longer fix prices or release templates for petrol. “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said. Anyaso said this was a positive development and appropriate responses to the demands of marketers and Nigerian masses who had condemned the monopolistic grip of NNPCL on the oil and gas sector for decades. He said this would create the much needed competitive pricing environment and allow market forces to demand price of products. According to him, “two days ago, I repeated the call that the Federal Government should issue import licences to private investigators, I also said it is wrong for the NNPCL, which is a private company, to be the sole importer and determiner of prices. “I am happy that the same NMDPRA also announced that approval has been given to private importers. This is how it should be in a deregulated Industry. “The competition that will begin in the coming days will surely ease the pain of high prices of products,” he said. Anyaso commended the Federal Government for its bold step and called on it to extend the same to refineries to complement the contributions of Dangote refinery when it commenced production. He said the four existing refineries should be repaired to produce at optimal capacity while licences are issued to more people who could build modular refineries. He said this was the time to address the problem of Enugu Depot which had been moribund for over 15 years and had made distribution of products in the zone difficult as a result. “We are appealing that as the government is addressing the issue of supply, they should also address the problem of distribution, Enugu Depot has not functioned for over 15 years, we need the Federal Government to fix it. “It has not been easy for our members who source products from Lagos, Warri, Calabar and bring by road, the risk, accident and losses have been too much,” he said.
Subsidy Removal: NUJ to join NLC’s nationwide strike
The Nigeria Union of Journalists (NUJ) has threatened to withdraw its services nationwide as a result of the recent subsidy removal and increase in fuel pump price the federal government. According to a statement signed by the National Secretary, Shuaibu Usman Leman, the Union said its members will join the proposed NLC strike which begins Wednesday 7 June, 2023. “An emergency Central Working Committee meeting of the Nigeria Union of Journalists (NUJ) was convened online on Saturday, to discuss issues surrounding the decision by the Federal Government to remove Fuel Subsidy and the position taken by the Nigeria Labour Congress. “After presentations by the National President, Chris Isiguzo, and the National Treasurer Bamidele Atunbi on the position taken by NLC on the matter, members unanimously adopted the position of NLC on the issue. “The CWC reiterates the argument that although the removal of fuel subsidy will free allocations which can be channeled to the provisions of infrastructure and creation of additional jobs, the sudden removal could however lead to social unrests and protests as people may perceive Government as being insensitive to their plight. “CWC also notes that already there is an astronomical increase in the prices of petroleum products and high inflation which have drastically reduced the purchasing power of citizens. “Accordingly CWC directs all State Councils of the Union to mobilise members to withdraw their services and commence protests nationwide from Wednesday next week, 7th June, 2023, if the Nigerian National Petroleum Company Limited (NNCPL) refuses to reverse the new price regime in the oil sector,” the statement said.
We’ll no longer fix petrol prices– NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it will no longer fix prices or release templates for Premium Motor Spirit (PMS). Authority Chief Executive (ACE), Mr Farouk Ahmed, who said this at a news conference in Abuja on Friday, said that market forces would henceforth dictate prices under the liberalised market. “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said. The development was sequel to the removal of subsidy on PMS known as petrol. President Bola Tinubu had in his inaugural speech on Monday said fuel subsidy regime had ended with the commencement of his administration. Ahmed, however, said the market was now open for everybody that would import as far as they met all the requirements. “So, it is not about the Nigerian National Petroleum Company Limited (NNPC Ltd) alone. “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to prospective importer. “We make sure we guide the operations of everyone in the sector whether at the depot or wherever the product is but we will not put a cap to say this is what the price must be,” he said. According to Ahmed, the role of the NNPC is to fix prices of the petrol it imported and not take over the responsibilities of the Authority. “In the case of the NNPC, the organisation is the sole importer at this point. We told the NNPC to recover its costs because they know how much it cost them to import the product and sell it. “Of course, we also know how much shipping, offshore, ex-depot and ex-pump are. But we cannot tell them to sell at a price because the market is deregulated,” he added. The NMDPRA boss also disclosed that the Federal Government has officially scrapped petroleum equalisation as well as the national transport allowance. He said the NMDPRA, the federal government and Consumer Protection Commission (FCCPC) would mount aggressive monitoring of activities in the downstream sector to prevent profiteering by petroleum marketers. Ahmed further disclosed that marketers are now free to source their foreign exchange anywhere around the world to import petroleum products and recover their costs without impediments. On where the importers will source their forex from, Ahmed said the CBN would not give dollar to anyone because of open market, adding that anyone willing to import should get the dollars from anywhere to import. According to him, anyone willing to open a letter of credit from any part of the world can do that to import. “That marketers can source their forex from anywhere is the beauty of the liberalised market that the NMDPRA has introduced based on the provision of the law”. Ahmed said that the market would henceforth be modulated to allow the fluidity of prices, adding that though no template spelt out the pricing components of petrol price. He said that, “based on this, the price would no longer be static rather depend on the international price of the gasoline market.
Market realities driving up petrol price – Kyari
*Says prices will normalize within two weeks The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has said that the sudden hike in pump price of petrol in filling stations across the country is a reflection of the realities of the market. Despite having supplies, the filling station still went ahead to hike the price of their products. Speaking on a television program monitored by NIGERIAN ANCHOR on Thursday, Kyari said that the situation applies to all commodities and that it portrays the reality of the market. “It could have been the other way round; prices could have collapsed downwards and those holding the old stock would have to sell at lower prices to arrive at market condition. “It is not something serious or strange, this is a stock management issue and it is very typical, no one can do anything different about this. “The prices we are seeing today at our stations are the current price of the commodity. This means that prices in the market can go down at any time and of course, the market will adjust itself,” Kyari said. The GCEO however assured that the fuel hike currently being experienced will normalize in the next 2-3 weeks because competition among major players in the oil sector would force down the price of petrol. He added that the subsidy removal would allow new entrants into the market, a move he said, would aid competition and phase out monopoly. “The beauty of this (subsidy removal) is that there will be new entrants (into the market) because oil marketing companies’ reluctance to come into the market all along is the very fact of the subsidy regime that is in place. “And that subsidy regime doesn’t have a guarantee of repayment back to the those who provide the product at subsidise price and now that the market is being regulated, oil marketing companies can actually import product or even if it is produced locally, they can buy and take it into the market and sell it at its retail price. “Therefore, you will see competition, even with NNPC. And by the way, by law, NNPC cannot do more than 30 percent of the market going forward. As soon as the market stabilises, oil marketing companies will be able to come in,” he explained.
Subsidy Removal: NLC rejects new fuel pump price template
The Nigeria Labour Congress (NLC) has urged the Federal Government to immediately instruct the Nigerian Petroleum Company Ltd (NNPCL) to withdraw the just released pricing template to allow free flow of discussions by all parties. Mr Joe Ajaero, the NLC President, made the call in a statement signed by him and made available to newsmen on Wednesday in Abuja. Ajaero said that the new pricing template is vexatious, an ambush and may scuttle its ongoing dialogue with the federal government. According to Ajaero, government cannot in one breathe be talking about deregulation and at the same time fixing the prices of petroleum products. “We are worried that the Government through the NNPC despite the ongoing meeting of stakeholders in the Oil and Gas sector to manage the unilateral. “But unfortunate announcement by the President to withdraw subsidy on petroleum products, went ahead this morning to announce a new regime of prices under a new pricing template. “This is an ambush and runs against the spirit and principles of Social Dialogue which remains the best platform available for the resolution of all the issues arising out of the petroleum Down-stream sector. “This negates the spirit of allowing the operation of the free market unless the government has, as usual, usurped, captured or become market forces. “It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement,” he said. He added that what the government has done is like holding a gun to the head of Nigerian people and bring undue pressure on the leaders, thus undermine the dialogue. The NLC president said that Nigerians would not accept any manipulation of any kind from any of the parties, especially from the representatives of the government. “Our commitment to this process is buoyed on the fact that all the parties would be committed to ensuring that it is carried out within the ambits of liberty without undue pressure. “The release of that Template may not allow us to continue if nothing is done to withdraw it so that the dialogue can continue unhindered. It is clear that Government is actually trying to scuttle the process. “As it stands, the federal government has become fixated on their chosen course of action. Would this help this dialogue? It clearly will not. “There must be flexibility to allow concessions and reasonable accommodation that will produce the best result for Nigerian people. This is what we all seek at this time,” he said.