The Trade Union Congress of Nigeria (TUC),
Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN),and the National Union of Petroleum and Natural Gas worker (NUPENG) as well as petroleum marketers have faulted moves to limit fuel imports to few operators in the country’s oil and gas sector.
They described the moves monopolistic and a deliberate attempt to frustrate the challenges the Petroleum Industry Bill (PIB) is intended to solve.
They advised that the market should be left open if the government truly wants to be sincere in addressing the problem of the sector.
The labour chiefs expressed dismay by the conspiracy to waste another opportunity to fix the sector.
They said that from the lawmakers’ position and body language one could infer they are serving the interest of some few individuals to the detriment of the over 97 per cent of the country’s population,adding that the congress will not allow that to happen.
In a statement, TUC president, Comrade Quadri Olaleye, FCIA, MNIM and Secretary General, Comrade (Barr.) Musa-Lawal Ozigi mni said, the country cannot afford to continue toying with the oil and gas sector as it remains the only major source of foreign exchange. The labour leaders urge the lawmakers to rise up and provide true leadership instead of serving the interest of few capitalists. It is high time “these principalities and powers” removed their knees from the neck of Nigeria and Nigerians.
According to the statement, the congress is not against the companies holding refining licences; we are only saying the sector should be left open so the destiny of the country will not be in the hands of a few individuals.
It said:”The pertinent questions are; how well are the products and markets controlled by these same few people doing? Why are the lawmakers failing to see the large number of companies and employment that could be created when more investors are allowed to invest? Are these people (lawmakers) not disturbed by the unprecedented insecurity challenge in the country caused by unemployment? How long are these people going to continue to exploit the country?
“There is no sugarcoating the matter, the capitalist trajectory in Nigeria is morally, economically, and legally wrong as it tends to impoverish Nigeria and Nigerians. It hinders the country’s financial and economic progress because it transfers a huge chunk of public wealth to “favoured businessmen”. This is not only treacherous but also a serious form of corruption. We urge them to use their money for the social benefits of all; after all, they enjoy forex largesse financed by Nigerians’ hard earned oil revenue.
“We are calling on the government, especially the legislative arm to rescind their decision immediately as it would only worsen the problem it is meant to solve. Nigerians are going through a very difficult period now, and no bill against protest can stop us from opposing undemocratic and dictatorial laws and policies of government.
Besides,the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN),and the National Union of Petroleum and Natural Gas worker (NUPENG) have cautioned against the insertion of a clause into the Petroleum Industry Bill (PIB) that says oil importation should be restricted to only those that owns refineries in the country.
The leadership of the two Union, PENGASSAN and NUPENG,emphasized the need to have rethink on the provision in the bill that restrict import license of products to only few Refiners in the country.
They said the provision will stifle price competition and leave pricing to be solely dictated by a few local refiners which is against the spirit, letters and intent of this bill.
The bill should be crafted in manner that will engender competition while also encouraging local refining.
“We should avoid running from one ugly scenario to an uglier situation that is avoidable.
Regarding incentives in the industry,they advised that the PIB should provide sufficient incentives to IOCs and indigenous oil producers to invest in the downstream sector of the oil and gas industry.
Oil marketers further picked holes in the restriction of licence to import petroleum products to only owners of refineries.
The oil marketers said in a statement issued in Lagos that the insertion of the clause in the Bill would create a monopoly that would exploit ordinary Nigerians.
The oil marketers expressed their dissatisfaction in a statement signed jointly by Mr Olufemi Adewole, Executive Secretary, Depots and Petroleum Products Marketers Association (DAPPMAN) and Mr Clement Isong, Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN) and made available to Daily Independent
The two associations noted that the restriction extended to products like diesel, kerosene, liquefied petroleum gas and base oils that had long been deregulated.
They also noted, however, that “as industry stakeholders and professionals with heavy investments in the downstream sector, we welcome the entry and participation of local refineries.
“We believe that local refining ultimately benefits Nigerians and our economy. We also commend the government’s plan to repair all existing refineries boosting our refining capacity,’’ they stated.
They stated also that their opposition to Section 317(8) was based on the premise that it posed monopoly risk that must be avoided.
The marketers said that it was imperative that a level playing field was set for all operators across the oil and gas value chain.
“Any provision that does not guarantee a free and open market will give room to price inefficiencies and eventually kill off small businesses in the downstream sector.
“This provision will stifle price competition and leave pricing to be solely dictated by a few local refiners. If Nigerians are to pay higher international prices at the pump, we should also benefit when prices go down internationally,’’ they stated
They argued that this was not guaranteed unless there was healthy competition.
“Prices must be kept competitive at the pump for the benefit of the average Nigerian whose income is constantly being eroded by inflation.Allowing imports by major players across the supply chain will protect consumers by ensuring that local pump prices are not higher than regional and international prices”.
