Oil & Energy
NLC Kicks Against Removal Of Petrol Subsidy
The Nigerian Labour Congress on Thursday insisted that petrol subsidy must not be removed and that it would not shift grounds on this position until Nigeria’s refineries were fixed.
NLC’s position came as a support to the earlier declaration of the Nigeria Union of Petroleum and Natural Gas workers where NUPENG kicked against the advice of the Presidential Economic Advisory Committee on subsidy removal.
The General Secretary, NUPENG, Olawale Afolabi, had told newsmen recently that it was going to be highly suicidal to remove petrol subsidy now and that the advice by the PEAC that government should remove subsidy was wrong.
“Within the current context of hardship in the country, it is suicidal to remove subsidy now. It is highly suicidal within the current situation,” Afolabi had stated.
When contacted on Thursday to know if the NLC would support the advice of the PEAC following complaints by the government on the huge financial burden of petrol subsidy, the Deputy President, NLC, Joe Ajaero, replied in the negative.
He said, “The way they put some of these things makes it to look as if it is now rocket science. Is it subsidy on the crude produced here or subsidy on what? Those are some of the concepts you want to understand.
“Subsidy on garri, yam or all those things we produce here? I say this because the crude oil we are talking about is produced here and we now say let there be refineries to process it here.”
He added, “And when that is done nobody will tell you about subsidy. It is to make things easier for the same person who says he is paying subsidy. If you produce refined petroleum products, at least the one we need for domestic consumption, you won’t tell us about subsidy again.
“But by the time you carry our crude oil and refine it abroad and you bring it back, you will start to tell us that you have spent money on shipping, landing cost and all other costs and then you need to add money to make it real and you call it subsidy.”
The labour leader said members of the union did not believe that the government was incurring any cost on petrol subsidy because it was possible to trade crude oil with refined products without having to incur additional costs.
Ajaero said, “To continue to remove what they call subsidy, which some of us don’t believe, has been an issue. Even at that, you can sell your crude and use part of it as barter. Meaning I give you crude, you give me refined products of this nature.
“But what we see in Nigeria is that they go there, give them (refiners) crude and it is refined and we buy it at higher price. I really don’t understand. For us in labour, we are not seeing it that way.”
He said the NLC insists that the government must refine crude oil in Nigeria, as this would create jobs while other bye-products from the crude oil would be used for the benefit of Nigerians.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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