Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari, has hailed the decision of labour leaders to suspend their planned protest scheduled to have commenced Monday.
Kyari, in a tweet on his official Twitter handle on Monday praised the leadership of the unions for choosing the pursuit of common good.
He said : ” Being a former union leader, I understand the difficulties of labour leadership when faced with choices between stark realities and legitimate follower expectations.
“The leadership chose the pursuit of common good and posterity will vindicate us all for standing with our country. “
Kyari said the Nigeria Labour Congress and the Trade Union Congress (TUC) had by their action demonstrated absolute faith in the country.
“They showed understanding on inevitability of Premium Motor Spirit (PMS) deregulation and jointly charted way forward to secure local refining sufficiency through greater stakeholder inclusiveness and transparency.
“We will follow through diligently,” he added.
The News Agency of Nigeria (NAN) reports that the NLC and TUC had suspended the strike at the early hours of Monday following a meeting with the Federal Government.
Labour had called for the strike in protest against the recent hike in electricity tariffs and pump price of PMS commonly referred to as petrol.
The Federal Government had agreed to make some concessions following the public outcry and protest over its recent twin policies on Electricity Tariff Reform and full implementation of deregulation of the downstream sector of the Nigerian Oil and Gas Industry resulting in the planned nationwide industrial action by Organised Labour.
Consequently, the Organized Labour under the auspices of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) also agreed to suspend the planned industrial action.
The agreement was reached between the Organized Labour and Federal Government in the early hours of Monday morning during a bipartite meeting held at the banquet hall of the Presidential Villa to address and resolve the issues in dispute.
During the meeting the Federal Government’s side made presentations to show the state of the economy and the drive behind the recent cost – reflective Electricity Tariff adjustments and deregulation of the downstream sector of the Petroleum Industry.
After exhaustive deliberations on the issues raised by Labour Centres, the Federal Government stated that it has fashioned out palliatives that would ameliorate the sufferings that Nigerian workers may experience as a result of the cost – reflective Electricity Tariff adjustments and deregulation of the downstream sector of the Petroleum Industry.
The palliatives will be in the areas of transport, power, housing, agriculture and humanitarian support.
To cushion the impacts of the downstream sector deregulation and tariffs adjustment in the power sector, the Federal Government agreed to implement the following; “A specific amount to be unveiled by the Federal Government in two weeks’ time will be isolated from the Economic Sustainability Programme Intervention Fund and be accessed by Nigerian Workers with subsequent provision for 240,000 under the auspices of NLC and TUC for participation in agricultural ventures through the CBN and the Ministry of Agriculture.
The timeline will be fixed at the next meeting.
“Federal Government will facilitate the removal of tax on minimum wage as a way of cushioning the impacts of the policy on the lowest vulnerable.
“Federal Government will make available to organized labour 133 CNG/LPG driven mass transit buses immediately and provide to the major cities across the Country on a scale up basis thereafter to all States and Local Governments before December 2021.
“10% be allocated to Nigerian workers under the ongoing Ministry of Housing and Finance initiative through the NLC and TUC.”
According to a communiqué signed by both parties at the end of the meeting, the meeting resolved among other issues, “to set up a Technical Committee comprising Ministries, Departments, Agencies, NLC and TUC, which will work for a duration of two (2) weeks effective Monday, September 28, to examine: the justifications for the new policy in view of the need for the validation of the basis for the new cost reflective tariff as a result of the conflicting information from the fields which appeared different from the data presented to justify the new policy by NERC; metering deployment, challenges, timeline for massive roll – out.”
The committee is to examine the justification for the new policy on cost – reflective Electricity Tariff adjustments, look at the different Electricity Distribution Company (DISCOs) and their different electricity tariff vis-à-vis NERC order and mandate, examine and advise Government on the issues that have hindered the deployment of the six million meters as well as look into the NERC Act under review with a view to expanding its representation to include organized labour.
Members of the Technical Committee includes; Minister of State for Labour and Employment, Festus Keyamo as Chairman, Minister of State Power, Mr Godwin Jedy-Agba, member; Chairman National Electricity Regulatory Commission, Prof. James Momoh, Member; SA to Mr. President on Infrastructure, Engr. Ahmad Rufai Zakari, Member/Secretary; Dr. Onoho’Omhen Ebhohimhen, Member (NLC), Comrade Joe Ajaero, Member (NLC), Comrade Chris Okonkwo – Member (TUC) and one representative of DISCOS as member.
On the issue of deregulation of downstream sector, the meeting upon critical review of the various challenges of the Nigeria oil and gas industry vis a vis the incalculable losses associated with a subsidy regime the Country has been incurring in terms of stifled growth in the downstream sector, diminished human capital development and massive financial leakages and flight in addition to the dire financial circumstances of the Federation that precludes any ability to sustain any subsidy on PMS and making deregulation of PMS inevitable, the Parties agreed to the following: “the urgency for increasing the local refining capacity of the nation to reduce the overdependency on importation of petroleum products to ensure energy security, reduce cost of finished products, increase employment and business opportunities for Nigerians.
“To address (1) above, NNPC to expedite the rehabilitation of the nation’s four refineries located in Port Harcourt, Warri and Kaduna and to achieve 50% completion for Port Harcourt by December 2021, while timelines and delivery for Warri and Kaduna will be established by the inclusive Steering Committee.
“To ensure Commitment and transparency to the processes and timelines of the rehabilitation exercise, the management of NNPC has offered to integrate the national leadership of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum and Natural Gas Senior Staff Association (PENGASSAN) into the Steering Committee already established by the Corporation.
“A Validation team comprising the representatives of the NNPC, Nigeria Extractive Industries Transparency Initiative (NEITI), Infrastructure Concession Regulatory Commission (ICRC), NUPENG and PENGASSAN will be established to monitor progress of the rehabilitation of the refineries and the pipelines/strategic depots network and advice the Steering Committee periodically.
“Post rehabilitation, NNPC shall involve the PENGASSAN and NUPENG in the process of establishing the operational model of the Nation’s refineries.
“The Federal Government will facilitate the delivery of licensed modular and regular refineries, involvement of upstream companies in petroleum refining and establishing framework for financing in the downstream sector.
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“NNPC to expedite work on the Build Operate and Transfer framework for the nation’s pipelines and strategic depots network for efficient transportation and distribution of Petroleum products to match the delivery timelines of the refineries as agreed.
“The Federal Government and its agencies to ensure delivery of 1 million CNG/LPG AutoGas conversion kits, storage skids and dispensing units under the Nigeria Gas Expansion Programme by December 2021 to enable delivery of cheaper transportation and power fuel.
A Governance Structure that will include representatives of organized Labour shall be established for timely delivery.”
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