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LogoDaily Independent Online.         * Wednesday, June 16, 2004.

House of Reps to recall members over fuel crisis

• Fuel marketers re-adjust price to N42 per litre

• NLC strike costs airlines, FAAN N2.5 billion

By Chuks Isiwu,

Habib Aruna.

Rotimi Durojaiye (Lagos)

Uchenna Awom (Abuja)

and Gbenga Faturoti (Osogbo)

There are strong indications that the House of Representatives may hurriedly recall its members on recess to discuss issues surrounding the fuel price crisis. A likely supplementary Appropriation Bill from the Presidency is also on the agenda.

Committee on Media and Public Affairs Chairman, Abike Dabiri, confirmed the plan on Tuesday. She said reconvening the House is based on the thinking of the majority of members who are worried about the state of the nation and about complaints by their constituents on the suffering in the land.

Besides, she said the on-going discussion with President Olusegun Obasanjo on the possibility of him submitting an Appropriation Bill to subsidise the price of fuel makes it expedient to recall members for an emergency session.

According to her, feelers from Aso Rock suggest that the President is strongly disposed to the supplementary budget option as an immediate palliative for biting hardship caused by his economic reforms.

According to Dabiri, the House has realised that it would no longer remain indifferent to growing complaints from the people, stressing that the leadership is currently meeting to take a decision on the matter.

The House is currently on six weeks’ recess from which it will resume on July 20.

It did not take a resolute stand on the face-off between government and Labour over the fuel price brouhaha, which led to a national strike, called off at the weekend.

Most Lagos fuel stations on Tuesday adjusted to a price of N42 and above for a litre of petrol as relative ease returned to supply.

The development came as the National president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Louis Brown Ogbeifun, insisted that the only solution to the perennial fuel crisis is the repair of the four refineries in Warri, Kaduna and Port Harcourt, and the building of new ones.

The view is supported by a member of the board of trustees of the ruling People’s Democratic Party (PDP), Bode Olajumoke, who also urged the government to re-activate the refineries as a panacea to the lingering fuel troubles.

Olajumoke, fielding questions from newsmen during his brief visit to Osun State, observed with regrets that Nigeria, the sixth largest oil-producing nation, could be bogged down by incessant fuel crises.

Time-conscious aviation industry may have suffered an estimated N2.5 billion loss in the three-day national strike last week, going by figures sketched on Tuesday.

Such an amount would have been incurred by about 41 airlines operating scheduled, non-scheduled and cargo flights together with the Federal Airports Authority of Nigeria (FAAN).

The strike was called by the Nigeria Labour Congress  (NLC) to protest recent hikes in the prices of petroleum products.

Airlines suffered huge loses on their daily operations running into about N2 billion, with FAAN alone losing about N500 million while the imbroglio lasted.

The airlines’ losses were occurred largely in the cargo sections at the various airports. Goods were stranded as workers stayed at home.

Depending on the configuration, a Boeing 737 DC-9  may carry up to 130 passengers and a Boeing 727 can accommodate 150.

A one-way journey on the lucrative Lagos-Abuja route costs between N9, 000 and N10, 000 while Lagos-Maiduguri attracts N23, 000.

Some airlines make about five return journeys daily, fetching between N1.3 million and N1.5 million in income.

An official of one of the airlines said although the strike has been called off, it would take another one week for export and normal activities to resume at the cargo sheds of some of the airports. “Put in financial terms, we lost about N6.5 million during the strike,” he said.

Another domestic operator estimated the cost on his company at N32.5 million.

He said the impact would be reflected at the monthly report of the airlines to the Nigerian Civil Aviation Authority (NCAA) and the Central Bank of Nigeria (CBN).

FAAN is believed to have lost about N500 million in landing fees at the 21 airports.

Its gold pot, the Murtala Muhammed International Airport, where the authority makes about N250,000 daily, was abandoned by workers.

FAAN also incurred losses in passenger service charge and parking fees by motorists at both the domestic and international terminals of the Lagos airport.

It charges N4,940 as domestic landing fee for a Boeing 737 and N350 per passenger.

Overall, corporate Nigeria may have lost about N50 billion in the strike.

A former director of the Lagos Chambers of Commerce and Industry (LCCI), Mark Udom, said the loss would be higher when economic activities in the informal sector are factored in.

Analysts say the public sector would have suffered 60 per cent loss and the private sector 40 per cent.

Officials of CBN and the Federal Office of Statistics (FOS) could not be reached for their reactions. The strike also took a toll on their activities.

Expressing their views on the fuel palava, members of the Lagos State House of Assembly on Tuesday unanimously condemned the attitude of oil marketers to the plight of the masses and urged NLC to devise ways of countering their antics.

 

 

 

Copyright� 2002. All Rights Reserved Independent Newspapers Limited
Block5, Plot 7D, Wempco Road, Ogba, P.M.B. 21777, Ikeja, Lagos State, Nigeria.
www.dailyindependentng.com
e-mail: [email protected]




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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