The Nigeria Labour Congress (NLC) has said it has not concluded plan to embark on strike today over the present price of fuel as a result of president Bola Tinubu’s pronouncement on fuel subsidy.
The congress in a statement by Benson Upah, Head of Information and Public Affairs, however said the meeting of the organised labour scheduled for today will come out with resolution on the next line of action.
“Our attention has been drawn to stories circulating in the social media space claiming that the Nigeria Labour Congress would commence protest action tomorrow (Friday, June 2nd) against the increase in the pump price of pms.
“In as much as we are outraged by this mindless price increase which is intended to bring untold hardship to ordinary Nigerians, we have no plan to start any action tomorrow.
“What we do have for now are organ meetings slated for tomorrow, Friday, June 2nd, 2023 to deliberate on the price issue.
“We promise to keep Nigerians informed on our next line of action after our meetings.
“In light of this, we advise the public to disregard these stories. They did not èmanate from the Congress.
Meanwhile, Alhaji Mele Kyari, Group Chief Executive Officer, Nigerian National Petroleum Company (NNPC), has said that contrary to speculations, the immediate past government did not make provisions for petroleum subsidy in 2023 budget.
He said this on Thursday in Abuja when he met with the Sen. Abdullahi Adamu-led APC National Working Committee (NWC) at the party’s National Secretariat.
“There was subsidy in 2022 but in 2023, not a single naira was provided for the purpose of financing the subsidy.
“And ultimately while we held back our fiscal obligations, we still have a net balance of over N2.8 trillion that the federation should have given back to the NNPC.
“For any company, when you have negative N2.8 trillion, there is no company in the whole of Africa that will lend to you, you cannot have receivables.
“The provision of subsidy is there, but absolutely there is no funding for it,” Kyari said, adding that it was only on paper and does not exist.
This, he said, was the true situation of things, adding the the Federal Government could no longer bear the burden of fuel subsidy.
“If we continue, we will run into defaults and the defaults of NNPC is the default of Nigeria.
“Once NNPC goes into defaults and liquidity, it affects every borrowing done by the country, even the sub-nationals. Your lenders will come back to you and say your country cannot longer pay,” he said.
The NNPC group chief executive officer added that subsidy constituted a huge amount of money which the country might not be able to survive and pay its debts.
Kyari, while admitting that Nigerians would have problems with the removal of fuel subsidy and that it would impact on inflation, assured that government was working on putting in place palliatives to cushion the effect.
According to him, President Bola Tinubu has directed some engagements and some palliatives will be put in place soon.
Kyari added that the market would stabilise with time following the removal of fuel subsidy and the current pump price when other players came in.
“There is a transition going on now and NNPC cannot continue to be sole importer. So, we know that this is going to vanish, the market will stabalise,” he said.
On when the country would have all its four refineries working, Kyari said there was an ongoing process of rehabilitation of the refineries.
He added that one of the refineries would come on stream before the end of 2023 while the second one would come on stream in 2024 and the third one would follow there after.
He maintained that the fuel subsidy regime was gone for good because government could no longer sustain it.
“Of course it is very obvious that we can no longer afford it. Subsidy bills have piled up, the country is not able to settle NNPC for the money we are spending on subsidy.
“And therefore, pricing petroleum at the market is the right thing to do at this point in time and I believe that this would benefit the country in the long time,” he said.(NAN)
Following the adjustment of petrol price at retail outlets by the Nigerian National Petrol Company (NNPC) Limited, the Independent Petroleum Marketers Association of Nigeria (IPMAN) says the new pump price of a litre of Premium Motor Spirit also known as petrol can’t be less than N500.
IPMAN Deputy President, Zarama Mustapha, stated this on Channels Television’s Sunrise Daily programme on Thursday.
He explained that the NNPC being the sole importer of petrol fixes the price for oil marketers across the country.
According to him, oil marketers will now lift petrol at over N460/litre at fuel depots, add transportation cost and profit margin which will make the new pump price go as high as over N500 per litre.
Already, a litre of petrol is being sold at over N500 across the country following NNPC price adjustment and the presidential pronouncement on subsidy removal.
Fuel queues have since surged for the vital commodity, compounding the traffic situation in parts of the country, even as transportation cost skyrocket to more than 100% increment.
Speaking on Thursday morning, the IPMAN executive said, “NNPC being the sole supplier is the determiner of how much we purchase. The deregulation is just taking effect. May be with time, they will allow other players to also participate in the importation of the product to compete with the NNPC Limited.
“I still believe the NNPC is still the government because it is owned by the government.”
No Provision For Subsidy
President Bola Tinubu during his inaugural speech on May 29 at the Eagle Square in Abuja announced the removal of subsidy payment on petrol. The President said that the immediate past administration of Muhammadu Buhari did not make provisions for subsidy in the 2023 budget beyond June.
Many Nigerians had expected that the new price regime would come into effect by July 1 but almost immediately after the presidential pronouncement, queues resurfaced at filling stations across the country even as retail outlets hoard the product and increase prices.
On Wednesday, the NNPC officially adjusted pump price of the commodity, stating that the price will continue to fluctuate market realities and dynamics.
Commenting on the price adjustment by the NNPC, the IPMAN Deputy President said oil marketers expected that the new price regime would begin by July and not in May.
Mustapha said, “We were not even expecting that such a thing is going to be implemented before the end of May; we were all surprised seeing a list stating the prices of NNPC retail stations across the nation.
“Each state has its own different price based on the location of the station or the location of the state from the source of the product – that is the depot where most of the products are being lifted and subsequently transported to all nooks of the country.
“As far as independent marketers are concerned, as at now, we have not been officially communicated in terms of the depot price today but there are some papers going round just like the ones we saw yesterday that is stating that a litre is going to be purchased at the private depot at the cost of N460.
“I don’t know the exact price but it won’t be anything less than N460, the new deregulated price that a marketer is supposed to buy. Then you will add up the transportation cost and the marketers’ margin and that will come to whatever price the government has announced yesterday.
“About N51 for transportation from Lagos to Maiduguri. So, if you lift at N460 something, you have to add that N51 and add up your margin for you to at least remain afloat in business.”
Labour Unions Kick
However, the Trade Union Congress of Nigeria (TUC) said the President cannot unilaterally take a decision on subsidy removal, saying that there was a reason the immediate past administration of Muhammadu Buhari pushed the “sensitive issue” to the new government.
TUC President, Festus Osifo, who also spoke on Sunrise Daily programme on Thursday, said the government cannot remove subsidy without putting practicable palliatives and alternatives in place. He also said the N5000 cash transfer proposed by the government as palliative cannot work.
Similarly, the Nigeria Labour Congress (NLC) kicked against the removal of subsidy at this time in Nigeria’s history.
NLC National President, Joe Ajaero, on Channels Television’s Sunrise Daily programme said the position of Labour has been clear that even if President Bola Tinubu has a good intention, alternatives must be provided.
He said the President should have asked questions and find out the implications of fuel subsidy removal on Nigerians on the streets.
The NLC boss listed the alternatives to include the repair of the nation’s four refineries, provision of transportation of alternatives for the Nigerian workers, amongst others.
Ajaero said the government cannot remove subsidy and still fix pump price through the NNPC.
Meanwhile, a meeting between the Organised Labour and Federal Government representatives ended in a stalemate on Wednesday as both parties couldn’t agree on a way forward.
