News
Fuel Crisis Looms As Supply Drops …Minister Urges Nigerians Not To Panic
Nigerians could experience acute petroleum products scarcity in the coming days if the strike by oil workers continues.
The strike by the main oil industry workers unions – Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), and its junior staff counterpart, National Union of Petroleum and Natural Gas Workers (NUPENG) – entered the third day yesterday; as daily average fuel supply, particularly Premium Motor Spirit (PMS), commonly called petrol, dropped by more than 36 million litres.
The current industrial action embarked upon by NNPC staff has worsened, as other units of the company have joined the ongoing labour dispute.
Subsidiaries of the NNPC which have now joined the strike include: the Petroleum Products Marketing Company (PPMC), Kaduna Refining and Petro-chemical Company (KRPC), Port Harcourt Refining Company (PHRC), Warri Refining and Petrochemical Company (WRPC), Nigeria Gas Company (NGC), Hyson, Nigerian Petroleum Development Company (NPDC), National Petroleum Investment Management Services (NAPIMS), Integrated Data Services Limited (IDSL) and Department of Petroleum Resources (DPR).
The industry’s senior staff union, had on Tuesday called its member on an indefinite strike in sympathy with their colleagues in the Nigerian National Petroleum Corporation (NNPC), who are pressing for the resolution of issues regarding pensions’ management.
The pension issues were compounded by the revocation of the license of the NNPC pension scheme by the National Pensions Commission (PENCOM), over the corporation’s alleged inability to bridge the funding gap of about N85billion in its pension scheme.
Other demands are adequate and regular funding of the closed pension system, immediate steps to carry out Turn Around Maintenance (TAM) on the four refineries as agreed between government and the two unions (NUPENG and PENGASSAN), and restoration of crude supply to the refineries.
The NNPC, which has been running a closed pension scheme not subject to the regulation of the national pensions policy spelt out in the Pension Reform Act (PRA) 2014 as amended, was recently directed by PENCOM to discontinue its closed pension scheme arrangement and join the open scheme under the latter’s supervision; an arrangement the NNPC workers do not feel comfortable with.
Part of the unions’ demands underlining the industrial action has been for NNPC to be allowed to run its workers pension exclusively like other institutions as the Central Bank of Nigeria (CBN), in view of concerns of accountability and security of contributions under the open pension arrangement.
Another letter from PENCOM to the corporation on Monday, September 15, insisted on full compliance with the directive by using a 12-month window granted to wind down and “immediately take all necessary steps to transit to the Contributory Pension Scheme under the PRA.”
But, the letter appears to have inflamed the strike.
Though the NNPC management said it was dialoguing with PENCOM on an amicable solution, it appealed to the leadership of the industrial unions to exercise restraint in their handling of the issue.
The NNPC noted that since the commencement of the scheme in 2006, the management and staff had made efforts to bridge the funding gaps in the scheme, currently at N85billion as at June 2014, down from a deficit level of about N298billion in 2010.
The impact of the two-day old strike has so far significantly threatened NNPC operations nationwide, as the corporation accounts for more than 45 per cent of the about 40 million litres daily consumption of petroleum products. The major and independent petroleum products marketers account for the importation of the remaining 55 per cent of the products consumed nationwide.
Long queues of trucks were seen along the routes to NNPC depots in Ejigbo, and Mosimi fuel depots waiting for hours for their turn to load petroleum products.
The Chairman, Mosimi Depot of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Dele Tajudeen, said if nothing was done to resolve the crisis and the strike called off, the situation might worsen in the days ahead.
“I urge the Federal Government and the unions to come to terms in finding lasting solution to the lingering crisis to save the economy,”
Tajudeen said. “Most trucks have been here since Saturday night to load products to various states, but it’s unfortunate that they found themselves in this mess.”
At Ejigbo Depot, the situation was not different, as the strike had virtually crippled NNPC operations in the area, with loading of petroleum products only holding at private depots only at exorbitant charges.
Loading of petrol, which usually attracts an official price of N89.70 per litre, went for between N90 and N91 per litre.
The President, Nigerian Association of Liquefied Petroleum Gas (NALPGAM), Basil Ogbuanu, said the strike had also significantly affected loading of gas in some of the depots across the country.
According to him, the shut-down of Warri depot, which has the highest concentration of his members, would create scarcity of the product nationwide.
A statement from PENGASSAN on Wednesday did not offer any hope for an immediate resolution of the crisis, as its Media Officer, Babatunde Oke, said the strike would continue until the union extracted firm commitment from the NNPC on the issues at stake.
Oke said the unions were also demanding regular funding of the closed pension system, immediate steps to carry out turn around maintenance (TAM) on the four refineries as agreed between government and the two unions as well as restoration of crude supply to the refineries.
He said the issues had gone beyond granting of a 12-month grace to the NNPC by PENCOM, adding that the NNPC management should put in place machinery that would automatically fund the pension system without any bureaucratic bottleneck.
The union blamed the crisis on the inability of the NNPC board to meet for over a year to approve the proposal of the management for funding of the pension system.
Meanwhile, the Minister of Labour and Productivity, Chief Emeka Wogu, yesterday in Abuja urged Nigerians not to panic over the current fuel scarcity in the country.
Wogu made the call while speaking with newsmen on the ongoing strike by the oil and gas sectors.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) on Monday shut down operations nationwide.
The unions had shut down operations nationwide over alleged irregular funding of their pension scheme, which had led to about N85billion deficit.
Other demands of the workers are the call for immediate steps to carry out Turn Around Maintenance (TAM) on the four refineries as agreed between government and the two unions and restoration of crude supply to the refineries
The minister said that talks were still ongoing with the management of the Nigerian National Petroleum Corporation (NNPC) and the in house unions of PENGASSAN and NUPENG.
“Everything is under control, discussions are going on, talks started yesterday and are still on.
“There should be no need for panic buying of fuel and I am positive that the issue will be resolved soon, ‘’ he said.
Most filling stations in Abuja are not selling the commodity while there are long queues at the few stations selling.
Rivers State Governor, Chibuike Amaechi (left) congratulating the chairman Care-Taker Committee, Ogu/Bolo LGA, Hon Mina Tende, during the swearing-in ceremony at Government House, Port Harcourt, last Tuesday
Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.
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