· As CISLAC Calls on FG to Implement Cushioning Measures
THE Nigeria Labour Congress (NLC) and the Joint Action Front (JAF) on Thursday in separate statements out rightly rejected the increase in the pump price of petrol announced on Wednesday by the Petroleum Products Pricing Regulatory Agency (PPPRA).
PPPRA Contradicted Self – NLC
According to the NLC in the statement entitled; “The Nigeria Labour Congress Condemns and Rejects the Increase in the Price of Petrol (Premium Motor Spirit),” the PPPRA contradicted itself when it said that the latest price increase was an “advisory” meant to regulate a product that government claims had been de-regulated.
It also questioned the legality of the increment as it was done without the approval of PPPRA’s board and the oversight ministry. “That this new hike in the pump price of petrol was announced without the approval of the board of the PPPRA and the oversight ministry speaks volume of the arbitrariness and public contempt in the operations of PPPRA. We find this deeply disturbing,” the Congress said, adding that it is embarrassing “that the PPPRA boss while trying to defend the indefensible appeared to be out of sorts and ready to clutch at any available straws to sell his “ice block merchandise” to “Eskimos”.”
The NLC further stated: “Apart from contradicting himself that PPPRA is still trying to regulate a deregulated product through “advisories”, the PPPRA went on to exert more nails on the coffin of his own polemics when he argued that PPPRA was just like the Central Bank of Nigeria (CBN) and the National Insurance Commission (NAICOM) that would always act to protect the public interest. That was how far the niceties went. The rest of the statement by the PPPRA boss, as reproduced in the excerpts below, was about how PPPRA plans to protect investors and increase their profit.
“While the Market-Based Pricing Regime is a policy introduced to free the market of all encumbrances to investment and growth, it should not be misconstrued as to mean a total abdication of government’s responsibility to the sector and citizenry… that the new pricing regime would encourage oil marketers to resume supply of petrol, leading to further value creation in the downstream, foster job creation and ensure reasonable returns to investors”.
“It is unfortunate that Mr. Saidu Abdulkadir did not even feign pretense that government has abdicated its responsibility to protect Nigerians from the cut-throat tendencies of neo-liberal market forces. Contrary to the provisions of Chapter 2 of the 1999 Constitution, PPPRA claims that the abdication is not ‘total’. When the statement by the PPPRA is juxtaposed with the recent killer electricity charges unveiled by DISCOs, Nigerians cannot help but feel the heat of a potent threat to run millions of Nigerians under. It is even worse that this is coming at a time when our people are living on the precipice of the Covid-19 pandemic.
“Nigerians would recall that the last downward review in the price of petrol was at the beginning of the Covid-19 lockdown. The economic benefits of the so-called “downward” review was hardly enjoyed by ordinary Nigerians who were mostly indoors. Just as the lockdown is being eased out and as soon as the inter-state travel ban was lifted, the government decided to hike petrol price. Nigerian people and workers are forced to interpret this move as grand mischief and deceit.
“It is clear even to the blind that the crisis in our downstream petroleum sub-sector is ‘self’ nay “government-inflicted”. The refusal by successive governments to fix our national oil refineries is at the root of this problem. Government simply wants to transfer the cost of its own inefficiencies to the Nigerian people. Nigerian workers say “No” to such.
“It is grand mischief and deceit to keep comparing apples with mangoes. There is no way Nigerians would accept a situation where we are charged international rates for a product which Nigeria is the sixth largest producer in the world. The extra costs that the PPPRA wants Nigerians to pay in order to promote “growth” and “investment” are actually the cost of profits made by countries that we ship our crude oil to, the cost of sea freight of the refined products, the cost of demurrage at our seaports when the refined products arrive, the cost of frequent devaluation of our national currency, and the cost of official corruption by gatekeepers managing the downstream petroleum sub-sector. Nigerians have groaned to pay these unjust costs for years. This latest increase might just be the last straw that would break the camel’s back.
“We demand that the Federal Government reverts to the old price of petroleum especially given the fact that price of crude oil in the international market has only slightly increased from the previous price before the so-called downward review was announced two months ago. We also renew our call for a national conversation on the management of our oil assets which we insist must be in tandem with the provisions our country’s constitution which clearly mandates that the commanding heights of our national economy must be held by the government in the interest of the citizens of Nigeria. Finally, we demand that our four national petroleum refineries must be fixed without any further delay. Nigerian workers want to be appraised of the timeline set by government to ensure that this is effectively done.
“Nigeria belongs to all of us. Workers are major stakeholders in the Nigerian project. Nigerian workers and people must not only be treated fairly but must be seen to have been so treated by their government.”
Nigeria Needs System Change – JAF
JAF, in a statement co-signed by its chairperson, Dr Dipo Fashina, and its Secretary, Comrade Abiodun Aremu, said the increment is coming against the background of serious hardship the working people and oppressed masses are going through in the face of the state’s failure to provide adequate social support and access to mass testing as they are confronted by threats to survival by the Coronavirus pandemic.
It therefore called on organised labour to provide leadership for resistance against the increment which it said is inspired by the IMF.
“JAF has consistently maintained that the current unjust system of neoliberal order is incapable of addressing the quest of Nigerians for free education, free healthcare, jobs for all and security of life and properties, hence our call for a sustained struggle for SYSTEM CHANGE that would ensure a socio-economic arrangement that can guarantee provision of basic necessities to ALL.
“JAF calls on organised Labour to provide leadership for resistance against the IMF inspired hike in fuel prices and urges Nigerians to prepare for consistent resistance against attacks on jobs, education, healthcare, high cost of living and the urgent necessity to mobilise towards a new Political Alternative.”
Govt Increasing Cost of Living Despite Mounting Challenges – CISLAC
Meanwhile the Civil Society Legislative Advocacy Centre (CISLAC) has stated that the increment is “a very big disappointment” from the Buhari-led government as it will compound the cost of living of ordinary Nigerians in the face of the unprecedented socio-economic impact of the Covid-19 Pandemic that has continued to render many individuals and households incapacitated to finance basic needs.
CISLAC said in addition to the recent attempt to increase electricity tariff without an iota of intervention by the federal government, the latest pronouncement to increase fuel pump price is a clear indication of the total disconnect between government and the people.
In the statement signed by its Executive Director, Auwal Ibrahim Musa (Rafsanjani), CISLAC expressed surprised that in spite of the whopping unaccounted domestic and foreign donations to support and rescue the country, as well as reported repatriation of huge looted sums to the nation’s treasury, the government has not devised adequate measures to mainstream the funds in re-financing deficit in its budget.
“Also, we have, on several occasions drawn the Government’s attention to the existing loopholes in the petroleum industry which have not tampered with neither the law nor the structure of governance in the sector. It becomes a thing of worry what the basis of these regulations being churned out by the Petroleum Products Pricing Regulatory Agency (PPPRA) are based upon.
“We expected that the impact of the Covid-19 pandemic would provide the Government with a much-needed lesson towards holistic innovative thinking, like every other civilized nation, to block and harness these loopholes to mitigate people’s socio-economic plight.
“The biggest challenge with political office holders in Nigeria is the[ir] [in]ability to recognize the fact that they are serving the people, the citizens; the positions they hold is on trust. Since they fail to recognize this fact, they go ahead and churn out instructions, policies and regulations as if we were in a military junta. No explanations are made on why some decisions were taken. This makes even the best of these decisions to seem anti-people because the people do not relate with such,” CISLAC noted.
While acknowledging that the government cannot sustain the wasteful subsidy regime, CISLAC argued that it is worried that government has failed to take adequate note that the coronavirus pandemic has taken a huge toll on the global economy which demands of it to rethink the system of governance in Nigeria.
“The cost of governance has not changed a bit; it is still business as usual for the political office holders. There have been no noticeable adjustments in governance to face the new reality.
The statement further emphasised: “We therefore call on the government to cut down on the cost of governance at all levels of government.
“We ask that the government put measures that will ensure prudent use of the borrowed resources.
“The government should take time to relate with the people with explanations of some of these policy directions, their relevance and contribution to the entire citizens at large.
“The government should also seek expert advice, especially from the private sector who has the wherewithal as to better ways of tackling some of these economic issues and not depend on political advice that will only seek to patronize the ego of the party faithfuls. This is the time for efficiency and effectiveness, nothing less.
“CISLAC remains committed to ensuring that undue burden is not placed on the masses while others live off their sweat.
