Bisiriyu Olaoye
1 November 2009
One doesn't need any parapsychologist to look into his or her crystal ball and see whether or not another protracted strike is looming in the country over the insistence of the Federal Government to deregulate the downstream oil sector before the end of the year.
Since the beginning of the year, Federal Government has been toying with the deregulation regime with the organised labour insisting that this would bring untold hardship to the already impoverished masses. Government later dangled carrot to pretend as if it will not go ahead with the deregulation by reducing N5 from the N70 per litre of the fuel pump price. Despite this, the impact has not been felt as people in some parts of the country even buy above N70 per litre.
Recently, the Federal Government announced the plan to deregulate the oil sector with effect from November 1, when the pump price will be about N94 per litre. Later, it said no specific date for the implementation of the deregulation programme has been fixed but it will be definitely before the end of the year, with some people speculating that it will be by December 31.
While the organised labour is saying that strike is inevitable if government does not rescind its decision, the latter on the other and is insisting that there will be no going back on the deregulation as it can no longer continue to subsidise the petroleum sector- due to the enormous funds that had been sunk into the subsidy.
For the umpteenth time last week, the Nigerian National Petroleum Corporation (NNPC) said the deregulation of the downstream sector was to encourage investors to invest more funds in the sector. According to the NNPC's Group Managing Director, Dr. Mohammed Sanusi Barkindo, while addressing the NNPC Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) Group Executive Council second triennial delegates conference in Abuja the deregulation of the downstream sector has acted as a clog in the wheel of progress of the petroleum sector, adding that this has discouraged so many investors from investing in the sector, hence slowing down the pace of development in the oil industry.
Barkindo, who was represented on the occasion by the Group Executive Director, Refining and Petrochemicals, Austine Oniwon, an engineer, further justified the government's action, saying the deregulation was the rationale behind the huge investment in the sector of the oil and gas industry. "The deregulation policy of the Federal Government is in the best interest of Nigerians.
This is because over the years, the regulation of the downstream sector made it difficult for investors to be certain over their expected investments in the sector. The regulation of the downstream sector of the petroleum industry is the reason the downstream has not grown like the upstream sector. For the 50 years of oil and gas exploration in the country, Nigeria has been playing the second fiddle to the multinationals. The Petroleum Industry Bill (PIB) before the National Assembly is geared towards reviewing the way and manner the industry is being run.
The PIB seeks to provide a very viable and robust level-playing field for all operators in the petroleum sector. This is why the NNPC has decided to embark on a transformation process; we are no longer going to depend on government for funding. Challenges are real but the prospect are far more if we work together. I will continue to appeal to PENGASSAN to continue to sing the mantra 'yes', we can," Barkindo also said.
But all these talks by NNPC may not jeopardize the decision of the organised labour to embark on the mass rally and subsequent prolonged strike on the deregulation policy. Before Barkindo spoke, the meeting between the Federal Government and the labour on the issue had been deadlocked, with the Trade Union Congress (TUC) vowing that nationwide strike is inevitable.
It was reported that while the labour leaders at the meeting insisted that government should put something on the table in terms of welfare of workers, the government was said to stated that although the welfare of workers was very important to it, the subsidy is needed to do more.
Drumming it on the ears of Nigerians of the possibility of strike, the President of TUC, Mr. Peter Esele, was quoted s saying recently: "Yes, there will be (strike). What I keep saying is that labour leaders do not enjoy strike. They always feel we enjoy strike. We don't. that is why our doors are open. That is why when they call us for meeting we go event though we know that they will still tell us the same thing."
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