Leadership (Abuja)

Nigeria: Man Protests Hike in Gas Price

Philip Nyam

9 November 2009


Abuja — The Manufacturers Association of the Nigeria (MAN) has petitioned the House of Representatives on the lingering impasse over gas price increment between its members and a gas distribution firm, Gaslink Nigeria Limited.

Chairman of MAN, Prince Felix Okojie, who presented the petition yesterday at the National Assembly, called on the House to compel Gaslink to revert to the old rate of N24.41, as against the newly introduced N59.66, and that supply should immediately be restored to the affected companies.

They accuse Gaslink of cutting supply to over 30 companies in Lagos, forcing many manufacturers to close down business. Okojie lamented that Gaslink was taking advantage of its monopoly as the only gas supplier engaged by the National Gas Council (NGC) to visit untold hardship on manufacturers.

"We are only managing to survive in the manufacturing sector after government encourages companies to make use of gas. Companies have spent so much in the last five years to change their machines in order to use gas. "What we are saying is that the new price is not acceptable because Gaslink is only taking advantage of its monopoly," Director General of MAN, Mr. Jide Mike, also told newsmen after the meeting.

The chairman said there was no need for Gaslink to benchmark gas in line with international prices, or have any link with price change for LPFO, arguing that gas was a natural resource, which was even being flared away as a waste by oil companies.

He said the position of gas users in the manufacturing sector was to maintain the status quo for the next two years.

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