Leadership (Abuja)
Stevin A. Adikwu
16 November 2009
Abuja — The Chairman of the House of Representatives Standing Committee on Industry. Hon Solomon Agidani, has called for appropriate pricing of gas to stem eminent collapse of major manufacturing concerns, which had reconsigned their plants, in compliance of government's new push to encourage use of gas as cost effective means of production.
He said the present arrangement where the price of gas is benchmarked on the price of LPFO, was no longer realistic; and if sustained, would defeat the Federal Government's initiative at encouraging the use of gas for industrial purposes.
Agidani spoke to LEADERSHIP, in the wake of a petition addressed to the House by the Manufacturers Association of Nigeria, (MAN), jointly signed by the Director General, Jide Mike and Chairman, MAN Gas Users Group, Prince Felix Oba Oloju, following alleged severance of gas supplies to five major manufacturers in Lagos by Gaslink Nigeria Ltd.
This is owing to about 200 per cent price hike in gas as government step up implementation of its much touted deregulation of the downstream sector of petroleum products.
At least, 150 manufacturing plants that are gas complaint in Lagos, stand the risk of been shutdown if the disputed require is maintained.
Recently gas price was raised from N24.21 to N59.66 per standard cubic measure.
Even as the increase violates earlier agreement brokered by the Senate Committee on Industries in 2008, which passed the increase at 15 per cent, Agidani said there was no justification for any increase at all in view of the fact that gas is been flared for nothing, and the industries which had only recently become gas compliant must be protected and encouraged to survive.
He said the capacity utilisation of Nigeria industries in mid 80's was 80 per cent and employed over 2 million Nigerians but this has dropped to below 30 per cent, adding that government decided to put a stop to gas flaring because it is dangerous to the environment and explores its economic benefits by encouraging industries to revert to the use of gas.
He said industries that re-tooled and became gas compliant are now faced with gas prices that are competitive, thereby reducing any hope of cost reduction because the price of gas is benchmarked on the prices of LPFO.
He then asked Gas link Nigeria to stay action pending government's response on the issues adding, "We must bring down price of gas so that we can popularise its usage."
It would be recalled that in 1999, the Federal Government took effective steps to stop gas flaring and encourage exploitation of the country's vast reserves by distributing gas to industrial consumers through pipeline.
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nigeria is not just a land of contradictions,where a nation has so much in aboundance in both human and natural resouses yet her citezenry lives in abject poverty.there is no light,no good road,no water to use and the oll we have so much in aboundance is a curse for the nation.is deregulation the problem of naija now?all the trillions of naira that have been allocated and looted what has the govt done about that?the only are that excites our govt is any are that will inflict further pains on nigerians.honestly the only solution to naija problems is REVOLUTION.Nigerians lets arise and fight fight for our right.
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