Trade Union Congress (TUC), umbrella body for senior workers in public and private sectors in Nigeria, as well as their junior counterparts in the Nigeria Labour Congress (NLC), say any further increase in pump price of petroleum products will spell doom for the Nigerian economy.
President of the TUC, Bobboi Bala Kaigama, in a statement co-signed by Simeso Amachree, the union acting secretary general, and made available to the media on Monday, say at N145 per litre (petrol) and over N200 per litre (diesel), companies are shutting down and laying off workers due to high operational costs. This, according to the TUC, is having negative impact on the economy with worsening unemployment situation.
“Our attention has been drawn to the recent call by the management of Nigerian National Petroleum Corporation (NNPC) for an increase in the pump price of premium motor spirit (PMS) from N145. It is annoying that the call came even when the Federal Government is yet to fulfil its promises and agreement reached with organised labour during the protest against the last hike in May this year.
“In case the management of the NNPC has forgotten, the economy is in crisis and life has become very difficult for the common man who now can hardly afford two square meals per day. The present minimum wage can longer purchase a bag of rice. Businesses are shutting down leading to millions of job losses, which of course have accentuated increased cases of crime and other vices. If all the members of the NNPC team can offer, as recipe to contain this scourge of economic downturn is to hike the price of petroleum products, then they are not fit to manage the sector and should throw in the towel,” say the unions.
However, in a quick response, President Muhammadu Buhari on Monday met with Maikanti Baru, managing director of Nigerian National Petroleum Corporation (NNPC), and the minister of state for petroleum, Ibe Kachikwu, at the Presidential Villa, Abuja.
Emerging from the meeting, both Baru and Kachikwu denied knowledge of plans to hike the price of Premium Motor Spirit (PMS), also known as petrol.
The meeting held behind closed doors came on the heels of calls by former GMDs of the NNPC for an upward review of the price of petrol, stating that the current price of N145 per litre could not be sustained in the face of current realities.
Oil marketers last month also said due to the continued scarcity of foreign exchange to finance the importation of PMS, the price may increase.
The former GMDs at a meeting convened by Baru on Saturday argued that the current price cap of N145 per litre was not commensurate with the liberalisation policy, especially that of foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges, among others.
Emerging from the meeting with the President, both Baru and Kachikwu evaded commenting on a possible increase of the product. When accosted, Baru walking off, only told journalists, “There is nothing like that. Go to the Petroleum Product Pricing and Regulatory Agency (PPPRA) for anything on fuel increase.”
Kachikwu, who also refused to stop and respond to journalists, said “there is no memo to that effect, wait for the GMD.”
The Federal Government liberalised the downstream sector of the petroleum industry on May 11, 2016, and announced an increase in the pump prices of petrol from N86 and N86.5 per litre to between N135 and N145 per litre.
It had also stated that the market was to be driven by the factors of demand and supply, as it was now largely in the hands of private sector players.
Similarly, Ayuba Wabba, president of a faction of the NLC, warns that the congress would mobilise to resist further increase in the pump price of petrol.
Wabba says the last increase, which raised the price from N97.50 kobo to N145 per litre, brought untold hardship on Nigerians, especially with high inflationary rate of 15 percent with stagnating workers’ income.
”Disposable family incomes have been eroded. Any further increase in pump price, with consequential effect on the prices of other items and transport cost, will be death sentence on Nigerian workers,” he says.
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