Should the National Electricity Power Authority be privatized?
NLC Begins Fresh Campaign Against Fuel Price
By Chris Nwachuku, 12.06.2004
Nigeria Labour Congress (NLC) has formally written Nigerians commending them for the support they gave it in the suspended nationwide strike and urged them to remain firm in the defence of their collective well being. The NLC also requested Nigerians to insist that government policies should reflect the yearnings of the people, no matter the pressures of globalisation and the demands of the IMF and the World Bank. In a statement signed by its President, Adams Oshiomhole, titled "Appreciation and call for continued support," Labour said the current high price of petroleum products could not be justified especially in the face of present statistics from Organisations of Petroleum Exporting Countries (OPEC). It said the statistics provided that the fuel price regime in the country is not only the highest among the countries, the average monthly income in Nigeria remains the lowest. "As a member of the Organisation of Petroleum Exporting Countries (OPEC), we have attempted a comparison of Nigeria with her fellow OPEC members. This comparison clearly shows that among OPEC countries, petroleum products' prices are highest in Nigeria. In some cases the price in Nigeria is more than fifteen times the price in some other countries," labour stated. Urging Nigerians to disregard the statistics provided by government which it described as propaganda, the NLC stated that "the fundamental point Nigerians have been making is that as an oil-endowed and producing country, domestic petroleum products' prices should be insulated from the vagaries of international crude price fluctuation. This is particularly crucial since the international market for crude is innately oligopolistic and prices are driven by politics and ad hoc considerations and decisions that are not market-based." It noted that government in dishing out its figures failed to appreciate the fact that socio-economic conditions in these countries and income levels are different. "The average monthly income computed from World Bank data serves as a measure of affordability and differential socio-economic condition. It is obvious from the figures that with Nigeria having the lowest average income; her citizens can least afford high prices among these countries. The paradox is that Nigeria that can least afford has the highest prices," it stated. Reflecting on the suspended nationwide strike, NLC said the state of preparedness for the action and the general support for it across the length and breadth of our country and across all social strata were "clear demonstrations of the dissatisfaction and disenchantment of the vast majority of Nigerians with the petroleum products pricing policy of government, the general social malaise of poverty, job losses, insecurity and inflation which the policy has generated as well as government's refusal to subject its policies to dialogue in spite of the alarming social dislocations engendered by the policies" It further stated that it was the collective mobilisation for the planned strike that made possible the limited and last minute concessions that government made. On the situation in the oil sector, NLC stated that the downstream sector today is characterised by arbitrariness and favouritism including charges which NNPC continue to impose on consumers even when pipeline supply of products to depots across the country has virtually ceased for years. The body further noted that major marketers have continued to be granted financing charge on the pricing template, at a time when products are supplied to them on credit and dealers lift products from them on the basis of advance payment. It also alleged that favoured independent marketers continue to act as middlemen between the NNPC and other independent marketers. The favoured ones, it said, are earning a premium of as much as N3 per litre funnelled through them. "It is the final consumers that bear the burden of these ridiculous charges and mark-ups," the NLC stated. " It is a shame that even the announced price of kerosene (which remains way above the price of PMS) - the product the President chose to specifically single out for his intervention - is not being observed anywhere in the country" NLC added. NLC reaffirmed its faith in dialogue as the only means of resolving recurring crises emanating from pricing of petroleum products. It reiterated its commitment to utilising the platform created by the Senator Ibrahim Mantu Committee saddled with the responsibility of cushioning the effects of the recent hike in prices of petroleum products in seeking final solution to the problem. Labour requested the Federal Government to change the name of the Mantu committee to reflect the broader mandate entrusted to it. "We remain rooted in our conviction that the only way out of the present crisis in petroleum products' pricing is meaningful dialogue involving all stakeholders on how to ensure stable and affordable prices, taking into account the fact that Nigeria is blessed with oil. "It is our belief that this endowment of oil should be used to derive the country's comparative advantage and in stimulating economic activity and development in the overall economy. The economic and social linkages between petroleum products' cost and the overall economy are obvious given that any operator in Nigeria is virtually a municipality unto itself, providing power, water, etc. for its operations. "Based on this conviction, we are committed to playing our role in the Senator Ibrahim Mantu-led committee as long as we are sure of government sincerity in allowing it un-circumscribed scope for its search for enduring solutions. We call on government to amend the name of the committee to reflect its broad mandate as a way of eliciting greater confidence of Nigerians in it," it noted. NLC also appealed to Nigerians to remain committed to the defence of their collective well-being. It noted that the temporary truce on the agitation over the prices of petroleum products does not provide the desired long-term solution to the crisis. The body noted that the continuous support of the entire citizenry and commitment are crucial to the long-run objective of finding a lasting solution to this crisis as well as ensuring that other socio-economic reforms and policies are humane and development-oriented.
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