2 weeks ago
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..Experts demand incentives to help Nigerians grapple with hardship
..You’ve betrayed Nigerians, NLC tells Tinubu
BY MOTOLANI OSENI & UKPONO UKPONG
The Nigerian National Petroleum Company Limited (NNPC) has raised the price of petrol to an alarming N855 per litre, causing widespread public outcry and sparking calls for government intervention.
Experts and labour unions are urging the government to introduce incentives and promote renewable energy to mitigate the impact on Nigerians already struggling with high living costs.
The decision to increase the fuel pump price comes amid escalating financial challenges faced by NNPC, which has accumulated a $6 billion debt from fuel imports.
This debt has strained the company’s resources, jeopardizing the sustainability of fuel supply across the nation. An industry insider revealed that the NNPC is considering raising the ex-depot price to N850 per litre, which could push retail prices beyond N900, with some estimates suggesting it could reach N1,000 per litre.
Industry experts are calling on the government to quickly implement policies that will ease the transition to alternative energy sources. Dr. Muda Yusuf, Director/CEO of the Centre for the Promotion of Private Enterprise (CPPE), emphasized the importance of supporting the adoption of compressed natural gas (CNG), liquefied petroleum gas (LPG), and renewable energy solutions like solar and wind power.
He suggested that the government should roll out incentives to make these options more accessible to Nigerians, helping to alleviate the economic burden caused by the rising cost of petrol.
Labour unions have expressed their anger over the government’s decision to raise fuel prices. The Federation of Informal Workers of Nigeria (FIWON) described the price hike as “incredible and unacceptable,” highlighting the plight of ordinary Nigerians who are already facing economic hardship. FIWON’s General Secretary, Comrade Gbenga Komolafe, criticized the government for its anti-people policies and warned that the latest price increase could provoke a severe backlash from the public.
Komolafe argued that the reliance on private sector-led solutions to manage the oil and gas industry has proven disastrous, noting that Nigeria remains the only OPEC country still importing refined petroleum products.
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He criticized the government’s failure to maintain and operate the nation’s refineries effectively, leading to a situation where the country is forced to subsidize fuel imports continuously.
The call for transparency and accountability in NNPC’s operations has grown louder, with industry stakeholders questioning the efficiency and financial management of the company.
Group Executive Chairman of Lancelot Group, Mr. Adebayo Adeleke, pointed out that the NNPC’s operations have been marred by inefficiencies and corruption.
He criticized the company for its massive expenditures on non-functional refineries and called for greater involvement of private enterprises in critical sectors of the economy.
Vice President of Highcap Securities Limited, David Adonri, expressed concerns over the NNPC’s monopoly on the petrol supply and the potential abuse of this power.
He warned that the sharp increase in fuel prices could trigger rampant inflation, further eroding the purchasing power of Nigerians and destabilizing the economy.
Amidst the turmoil, the Dangote refinery, which recently commenced production, is being hailed as a potential game-changer.
To this end, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced that the refinery is expected to supply 25 million litres of petrol daily by the end of this month, with plans to increase this to 30 million litres per day by October 2024. This could significantly reduce Nigeria’s dependence on imported fuel and help stabilize the market.
However, there are concerns about the local availability of Dangote’s petrol. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, hinted that if local oil traders blocked the sale of Dangote fuel, the refinery would export its products, including petrol, diesel, and aviation fuel, to international markets.
This strategy has raised fears among petroleum marketers about market monopolization and unrealistic pricing that could stifle competition. With Nigeria’s economy heavily reliant on petroleum products, the ongoing fuel crisis poses a significant threat to national stability.
As the NNPC grapples with its financial woes and the government faces mounting pressure to find solutions, the push for increased local refining capacity and the adoption of renewable energy sources becomes more urgent than ever. Without swift and decisive action, the rising cost of petrol could lead to widespread economic discontent and deepen the hardship faced by millions of Nigerians.
Meanwhile, the Nigeria Labour Congress (NLC) has accused the federal government of betrayal following a “clandestine” increase in the pump price of Premium Motor Spirit (PMS).
In a statement issued by the NLC President, Joe Ajaero, the Congress condemned the government’s actions, describing the situation as both traumatic and nightmarish for Nigerians.
Ajaero expressed the deep sense of betrayal felt by the NLC and Nigerian workers, stating that one of the primary reasons the union accepted the new national minimum wage of N70,000 was the government’s assurance that there would be no further increase in the price of PMS.
“One of the reasons for accepting N70,000 as national minimum wage was the understanding that the pump price of PMS would not be increased even as we knew that N70,000 was not sufficient,” he emphasized.
The NLC President recalled a crucial decision point when President Tinubu presented the union with two difficult choices: a minimum wage of N250,000 tied to a pump price hike of PMS to between N1,500 and N2,000, or a lower minimum wage of N70,000 with the existing PMS prices. The union opted for the latter to avoid imposing further hardship on Nigerians.
“We opted for the latter because we could not bring ourselves to accept further punishment on Nigerians,” Ajaero noted.
However, Ajaero said that barely a month after this agreement, and with the government yet to commence payment of the new minimum wage, Nigerians are now facing a harsh reality with the sudden increase in fuel prices.
Ajaero expressed shock and disbelief at the situation, stating, “But here we are, barely one month after and with government yet to commence payment of the new national minimum wage, confronted by a reality we cannot explain.”
The NLC President also criticized the government’s approach to resolving the fuel subsidy issue, which the union had previously warned was flawed.
He recalled that the union’s concerns were dismissed by government officials who accused them of lacking basic economic understanding.
“Yet, when we told government that its approach to resolving the fuel subsidy contradictions was patently faulty and would not last, its front row cheerleaders sneered at us,” Ajaero said.
Ajaero further accused the government of having a history of betrayal, citing previous assurances by the National Assembly that a 250% tariff hike in electricity had been addressed. Instead of a reversal, the tariff has been further increased, putting additional strain on Nigerians and businesses.
“Instead of the promised reversal, the rate has since been jerked up further, putting more Nigerians and businesses in jeopardy,” he remarked.
The NLC also drew attention to the broader implications of the government’s policies, which have led to widespread discontent and the recent End-Hunger/End Bad Governance protests.
Ajaero condemned the government’s response to these protests, which included the arrest and detention of participants and even those unaffiliated with the demonstrations. He described the government’s actions as an attempt to stifle lawful dissent and muzzle the voices of the citizenry.
“In brazen pursuit, they have defamed and libeled not a few individuals,” Ajaero alleged, adding that the government has overstepped its bounds by interfering in the statutory roles of the Ministry of Labour and Employment. The NLC President warned that the government’s actions have reached an all-time low, but vowed that the Congress would not be cowed into submission.
The NLC believes the government’s recent actions are part of a broader agenda to distract and weaken the union and other civil society groups. Ajaero stated, “When the State and the security forces picked on us in a hybrid war, we had our suspicions. We knew they were up to something sinister and needed to distract/divert our attention or possibly frighten or weaken us.”
With the recent fuel price hike, Ajaero argued that the union’s suspicions have been confirmed. He warned Nigerians that this increase is just the beginning of more “sinister policies” that the government plans to implement. “Now that the chickens have come to roost, we were right in our suspicions,” he declared.
In response to the fuel price hike, the NLC is demanding an immediate reversal of the increase across the country. The union is also calling for the release of all individuals arrested or prosecuted in connection with recent protests, the reversal of the 250% electricity tariff hike, and an end to the indiscriminate arrest and detention of citizens on trumped-up charges.
“We insist that government cannot criminalize protests or basic rights in the domain of the citizenry,” Ajaero stated firmly. The NLC is also demanding an end to policies that engender hunger and insecurity and a halt to the government’s culture of terror, fear, and lying.
Furthermore, Ajaero reaffirmed the NLC’s commitment to the welfare of Nigerians and the sovereignty of the country.
He assured the public that the NLC, in collaboration with civil society, would continue to fight for justice and would not be intimidated by the government or its security agencies.
“In the coming days, the appropriate organs of the Congress will be meeting to take appropriate decisions, which will be made public,” he announced.
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