Opinion
Who Needs Labour Strike?
Barring any last minute intervention, members of the organized labour will on Monday, September 28, commence an indefinite strike action over the recent adjustment in prices of Premium Motor Spirit (PMS) and electricity tariff.
The workers under the umbrella of Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) faulted the increase of the price of PMS from the official N145 per litre to N151.56 and almost a 100 per cent increase of electricity tariff, saying it will add to the excruciating hardship in the country. The labour unions further argued that the hike, coming in the midst of the COVID-19 pandemic, was not only ill-timed but also counterproductive.
Knowing how our life in Nigeria revolves around these two key items, one can imagine the ripple effect the price adjustments will have on virtually every aspect of our economy. Some prices of food items and other commodities have already skyrocketed, transporters have increased their fares, property owners will definitely increase their rents. School owners will also take a cue and ambush parents with adjusted fees when schools eventually resume. Of course, all these make nonsense of the paltry N30, 000 recently added to workers’ salary which some state governments are still finding it difficult to pay.
However, given the federal government’s reasons for the latest price increases, it will be advisable the leaders of the labour unions reconsider their decisions to down tools as the government seems to mean well for the nation this time. According to President Muhammadu Buhari, the COVID-19 pandemic which had affected economies globally, compelled his administration to make some necessary far-reaching adjustments for long-term gains.
He said government’s fixing or subsidizing PMS prices, would mean a return to the costly subsidy regime with the potential return of fuel queues, adding that there was no provision for fuel subsidy in the revised 2020 budget and assured citizens of the government’s determination to remain alert to its responsibilities by preventing marketers from raising prices arbitrarily or exploiting them.
The Minister of State for Petroleum Resources, Timipre Sylva, had earlier explained that removal of subsidy was not a political decision but had become inevitable, especially with the effect of the COVID-19 pandemic, the low crude oil prices and curtailing of Nigeria’s production output by OPEC, which had constrained government’s revenue. “We have cut production to 1.412 million barrels, which has halved our earnings,” he disclosed.
These are convincing, cogent reasons for the price adjustment if you ask me. Nigeria does not exist in isolation and so is bound to be affected by global occurrences, particularly in the oil sector which is the mainstay of our economy. It has been severally argued that as long as the nation continues to export its crude oil only to import the refined oil for our huge local consumption, we shall continue to leave at the mercy of international oil price determinants. Meaning that the current N151.56 per litre might not be the last price increase because if crude oil price goes up or down, it will reflect at the pumps.
Indeed, it’s baffling how an oil producing nation like Nigeria, Africa’s largest oil producer with about 200 million population and an estimated 12.8% annual demand and consumption of petroleum cannot boast of a single functional refinery. Records have it that the country has spent about $25 billion in turnaround maintenance of the existing major refineries vis-à-vis Warri, Port Harcourt and Kaduna refineries in the past 25 years, yet the facilities are still moribund. Thousands of workers at these refineries go to work, earn salaries and allowances and are duly promoted for doing nothing; not because they do not want to work but because the plants are down.
Over the years back, the Federal Government has issued 45 licenses to private companies for the construction of refineries, including modular refineries. All the licenses issued till date have a combined capacity to refine 2.15million barrels of crude oil a day and we were told that the refineries, when completed, will turn Nigeria into West Africa’s refining hub and cut billions of naira spent yearly in importing refined products. Apart from Dangote refinery, said to be coming on stream soon, not much has been heard about others.
Rather, we continue to thrive in the business of exporting our God-given crude oil to other countries that may not be blessed with the natural resource, but have patriotic, selfless leaders, who consider the good of their countries above every other thing and have invested enormously on infrastructures like refineries to make lives better for their citizens. An analyst once likened what happens in Nigeria’s oil sector to a farmer who after planting, nurturing and harvesting his yams, takes them to a faraway community to sell at a giveaway price. He later goes back to the same buyer who has cooked and pounded the yam to buy food to feed his family at an exorbitant price. Can this farmer be considered to be wise?
So instead of embarking on strike just for the sake of it and making the already bad situation worse for the citizens, labour leaders should come up with ideas on how to have functional refineries in the country, dialogue with the government on best ways to implement those plans. They should constantly engage the authorities on this. They can give the government an ultimatum on when to get the agreed plans executed so that the issue of fuel importation will be a bygone in the country. Failure of the government to keep to the bargain, labour can take whatever legal action to press home their demands and they will definitely have the support of many Nigerians.
So instead of insisting on reversal of the petrol pump price which might not be in the best interest of the citizens and the nation, the labour unions should see to it that all governments’ plans to cushion the effect of the subsidy removal are carried out. They should ensure that the nationwide roll-out of cleaner and cheaper alternative to petrol; the introduction of new funds for Nigerians at cheaper rates by the Central Bank of Nigeria; the adequate monitoring of the prices to ensure that marketers do not reap off the populace and other palliative measures promised by the government should be effectively implemented.
By: Calista Ezeaku
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