NLC Archives — Business Bells

Business Bells

Tag: NLC

  • NLC Rejects Denomination of Domestic Gas Pricing to GENCOs in Foreign Currency

    NLC Rejects Denomination of Domestic Gas Pricing to GENCOs in Foreign Currency

     

    The leadership of the Nigeria Labour Congress has rejected the denomination of domestic gas pricing to GENCOs in foreign currency.

     

    NLC President, Ayuba Wabba, said this in a statement made available to newsmen on Thursday in Abuja.

     

    Wabba said the NLC was inundated with numerous enquiries from workers and members of the Nigerian public alike concerning the reported slash of domestic gas prices for electricity generation and its lack of noticeable impact or reduction of electricity tariff.

     

    He also said the congress had noted the underlying statement of gas price reduction was attributed to the Minister of State for Petroleum Resources, Chief Timipre Sylva, as widely reported in the local media of Aug. 2.

     

    He said that the minister at the 2021 Gas Stakeholders Forum in Kano reportedly announced that the Federal Government had approved the reduction of domestic gas prices for electricity generation from $2.50 to $2.18 per standard cubic feet (SCF).

     

    According to him, it is partly as a result of the misgivings generated by the policy statement of the Minister of State for Petroleum that the congress is compelled to issue this statement.

     

    ”The purpose is to openly ventilate the agreed position between the Federal Government and Organised Labour on gas pricing as a critical factor in the computation of electricity tariff.

     

    ”It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government and Organised Labour, hereinafter referred to as the Principals, on Sept. 28.

     

    ”Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff,” he said.

     

    He, however, noted that the Technical Committee was thus set up on Sept. 28.

     

    He said it had a clear mandate to review several critical issues in the power sector and to suggest reforms that would provide succour to Nigerians over the short and long term.

     

    The NLC President said that the committee submitted its final report to the Principals at the end of January 2021.

     

    “The Principals accepted among other recommendations that “necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu.

     

    ”Congress also wishes the Nigerian public to know that about 80 per cent of electric energy generated in Nigeria is from thermal stations, which are powered by natural gas.

     

    ”In fact, the GENCOs consume over 70 per cent of domestic gas production. Whereas the GENCOs are required to pay as much as $2.50 per standard cubic feet, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per SCF.

     

    ”The worn explanation for the incongruous high differential was the lack of timely payment by the GENCOs for the gas supplied,” he said.

     

    He, therefore, said that in other words, the lack of payment discipline and certainty was implicated as a major contributing factor that despite GENCOs account for over 70 per cent of the consumers of domestic gas, rates are higher for power generation.

     

    Wabba said that to redress the invidious situation, the Principals resolved that Gas Companies should be integrated into the Central Bank of Nigeria payment waterfall of the Nigerian Electricity Sector Industry.

     

    He said it was done to guarantee payments for gas and contract sanctity of GENCOs.

     

    He said that congress has gone into lengthy detail to underpin her position that the gas price reduction for GENCOs announced by the Minister of State for Petroleum is a flagrant repudiation of the kernel of the agreement between the government and Organised Labour.

     

    He said it fell far short below expectation.

     

    He added that, hence, congress rejected the denomination of domestic gas pricing to GENCOs in foreign currency.

     

    He said, rather, congress insisted on a payment regime in Naira not only for domestic gas but also, all energy associated products, which should be denominated in local currency.

     

    He added that, from the foregoing, Congress was increasingly hard put to repose confidence in the discussions and agreement at the meetings.

     

    He said the resolutions of the Principals could not certainly be the basis for the minuscule gas price reduction announced by Minister Timipre Sylva.

     

    ”Consequently, Congress demands of the Federal Government to reduce the pricing of domestic gas supply to GENCOs to less than $1.50 per SCF.

     

    “We also demand that payment for gas by GENCOs should be denominated in Naira.

     

    ”Furthermore, the Gas Companies should be included in the Central Bank of Nigeria (CBN) and Nigerian Electricity Service Industry (NESI) payment waterfall to guarantee payments for gas and contract sanctity with GENCOs.

     

    ”Congress demands that the Government should respect the agreement it reached with Labour on electricity tariff.

     

    ”Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement.

     

    ”Congress hereby serves notice that the posture of the Federal Government to flout agreements is completely unacceptable and would be resisted,” he said.

     

  • NLC To Take Decision On Govs’ N408/Litre Petrol Proposal Today As Experts Warn FG

    NLC To Take Decision On Govs’ N408/Litre Petrol Proposal Today As Experts Warn FG

     

    The Nigeria Labour Congress (NLC) will today (Friday) come up with its position on the recommendation by governors that the price of Premium Motor Spirit, popularly called petrol, be raised from N162/litre to N408.5/litre.

     

    A committee set up by the Nigeria Governor’s Forum had on Wednesday called for immediate removal of petrol subsidy. It recommended a petrol price of between and N380/litre and N408.5/litre.

     

    However, the Abuja Chamber of Commerce and Industry and the Lagos Chamber of Commerce and Industry on Thursday advised the Federal Government to be tactful when removing petrol subsidy. They recommended that it be done gradually.

     

    Also, officials of the Nigerian National Petroleum Corporation told our correspondent that the oil firm was awaiting the Federal Government’s position on the recommendation of the governors before it would adjust petrol price.

     

    NNPC has been the sole importer of petrol into Nigeria for more than three years running.

     

     When contacted by our correspondent on Thursday for the position of the NLC on the latest recommendation of the governors as touching petrol price, the Deputy President, Joe Ajaero, replied, “Congress will come up with a position latest tomorrow (Friday).”

     

    Officials of both the NLC and the Nigeria Union of Petroleum and Natural Gas workers in separate exclusive interviews had last week argued that the continued imports of petrol by the NNPC was at the detriment of Nigeria’s refineries.

     

    They also insisted that the government should fix Nigeria’s refineries and stop importing petrol to help halt subsidy and save funds for the country, as they opposed subsidy removal now.

     

    Commenting on the matter, the President, ACCI, Dr Al-Mujtaba Abubakar, said in an interview that it would be painful to raise petrol price to N408/litre this time and called for gradual increment.

     

    He said, “The subsidy removal can be staggered. They (government) can stagger it by either removing about 25 per cent in the first three months, another 25 per cent next, and so on. They can stagger it.

     

    “But as they remove the subsidy people will also want to see the benefits coming.”

     

    Abubakar said the ACCI was in support of subsidy removal, but stressed that the amount saved must be properly channeled into infrastructure development.

     

    On his part, the Director-General, LCCI, Dr. Muda Yusuf, explained that the inevitability of the deregulation of the petroleum downstream sector had not been in doubt.

     

    He said given the huge financing gaps that existed at all levels of government, it was impossible to continue to sustain the subsidy regime, adding that the opportunity cost of petrol subsidy was huge.

     

    Yusuf said, “But the transitioning process from a subsidy regime to a deregulated policy space calls for a strategy that is inclusive and socially sensitive.

     

    “It is a tricky situation that demands tactful handling. It has profound social dimension. There is a strong economic argument, there is significant investment effect and there is a potential substantial political cost.”

     

    The LCCI DG, however, noted that the bigger conversation should be around what should be done to mitigate the short term adverse social effect on the vulnerable segments of the society.

     

    The Group General Manager, Group Public Affairs Division, NNPC, Kennie Obateru, told our correspondent that the oil firm would await the Federal Government’s position on the governors’ recommendation before changing petrol price.

     

    He said, “We really cannot take a position on that now because we don’t want to pre-empt whatever government is going to decide and it is whatever the Federal Government decides that will come to play.

     

    Obateru said the corporation was aware of the recommendation by the governors and admitted that petrol subsidy had truly been a burden on NNPC.

  • NLC Suspends Strike In Kaduna

    NLC Suspends Strike In Kaduna

     

    The Nigeria Labour Congress has suspended its five-day warning strike in Kaduna State to pave way for negotiations as requested by the Federal Government.

     

    The President of NLC, Comrade Ayuba Wabba, announced the suspension of the strike on Wednesday in Kaduna.

     

    He said, “As you are aware, we have been in Kaduna State for the past four days for our declared protest and industrial action against the sack of workers without following due process as provided by the Labour law.

     

    “This action was successful and we tried to maintain procedures of industrial action.

     

    “This afternoon an official letter was communicated to the NLC national headquarters signed by the Minister of Labour.

     

    “We will honour the meeting as scheduled for tomorrow at 11:a.m. The labour leaders in Kaduna will also be present because they have the substance of the issues in the state.”

     

    Wabba said “the NLC suspended the strike immediately” to give dialogue a chance.

     

    Minister of Information and Culture, Lai Mohammed, had said that the Federal Government would intervene to bring the labour crisis rocking Kaduna State to a peaceful end.

     

    Mohammed said that the Federal Government was disturbed about the sudden turn of events in Kaduna State, stressing that the Minister of Labour and Employment, Chris Ngige, is already working to broker a truce between the opposing sides.

     

    He said, “The Federal Government is not folding its arms and already, the Minister of Labour and Employment has waded in and he is in touch with both the government of Kaduna State and the Labour.

     

    “In addition, the security apparatus all over the country have also taken pre-emptive measures to ensure that hoodlums don’t take advantage of this situation.

     

    “At the end of the day, all the parties have to come back to the drawing table to agree and hammer out concessions and agreements”.

     

    The Chairman, Kaduna chapter of NLC, Ayuba Suleiman, had asked workers to ground all activities for five days as directed by its national leadership to serve as a warning, following the sacking of no fewer than 4,000 state workers in April.

     

    Suleiman and the NLC Secretary, Christiana Bawa, in a statement, asked their colleagues to begin the warning strike from Sunday at 12am.

  • NUPENG Threatens Nationwide Strike over Kaduna, Labour Dispute

    NUPENG Threatens Nationwide Strike over Kaduna, Labour Dispute

     

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said on Tuesday that it might declare a nationwide industrial action following the ongoing face-off between the Nigeria Labour Congress, NLC and the Kaduna State Government.

     

    NUPENG, in a statement jointly signed by its National President, Williams Akporeha, and General Secretary, Afolabi Olawale, told its members to be on red alert over the attack on NLC peaceful protest in Kaduna State.

     

    NUPENG warned that if any harm was inflicted on any of the members of the organised labour, the leadership of the union would not hesitate to call on all its members throughout the nation for a total shut down of all services in the upstream, mid-stream and downstream sectors of the oil and gas industry.

     

    It said, “In the light of the above, we are therefore putting all NUPENG members nationwide on red alert and may at very short notice of five hours call for a nationwide industrial action if situation arises.

     

    “Our solidarity remains constant for the union makes us strong.”

     

    The union said its national leadership was deeply saddened with the violent turn of NLC peaceful protests by the ‘dictatorial and despotic regime of Governor Nasir el-Rufai in Kaduna State’.

     

    It added, “The leadership of the union is therefore calling on the Federal Government to immediately call on Kaduna State Governor, Mallam Nasir el-Rufai, to order before his arrogance and power drunk ego further push the situation into horrendous calamity as he has been doing in all issues relating to human lives and wellbeing.

     

     “Consequently, the union reiterates that no labour leader or worker as the case may be, be harmed, harassed, maimed, humiliated or victimised during this five-day peaceful protests in the state.”

     

    The union said it was raising the alarm following the very reliable report of the clandestine move of el-Rufai to hurt and put the lives of NLC President, Ayuba Wabba, and other labour leaders in danger “in his usual blind egotistical style of running government in the state.”

     

    The NLC is currently protesting against the mass sacking of workers by the Kaduna State Government, a move that was vehemently opposed by the state governor.

  • NLC Mobilises For Protest Over Planned Re-Classification Of Minimum Wage

    NLC Mobilises For Protest Over Planned Re-Classification Of Minimum Wage

    The Nigeria Labour Congress has said it will embark on a nationwide protest on March 10, 2021 over moves by the National Assembly to remove the national minimum wage from the exclusive to the concurrent legislative list.

     

    The Congress said the protest would be held in the 36 states Houses of Assembly in reaction to the plans by the House of Representatives to alter the present wage structure, which gave the Federal Government the power to negotiate minimum wage for workers in the country.

     

    Rising from an emergency National Executive Council meeting in Abuja on Tuesday, the NLC President, Ayuba Wabba, vowed that the Congress would resist “any attempt to exterminate Nigeria’s working class.’’

     

    The House of Representatives had last week debated a bill to remove the powers to negotiate wage matters from the exclusive to the concurrent list, citing the inability of state governors to pay the N30,000 minimum wage for the move.

     

    But reacting to the development, Wabba stated that the workers would not watch “hard-fought rights which are global standards bastardised by opportunistic and narrow- thinking politicians.”

     

    According to a communique jointly signed by Wabba and the acting General Secretary of the NLC, Ismail Bello, the bill is an attempt to undermine Nigeria’s working class.

     

    He said, “The NEC decided that there will be a national protest action commencing from March 10, 2021 in the Federal Capital Territory and especially to the National Assembly.

     

    “The NEC decided that should the need arise, it has empowered the National Administrative Council of the NLC to declare and enforce a national strike action,  especially if the legislators continue on the ruinous path of moving the national minimum wage from the exclusive legislative list to the concurrent legislative list.”