On Monday, May 29, 2023, President Tinubu announced to Nigerians and the world that no provision was made for fuel subsidy in the 2023 budget, and therefore “fuel subsidy is gone”. Following this, fuel marketers began to adjust their pump prices, with some hiking to above N700 a liter of PMS (Premium Motor Spirit, or, as Nigerians prefer to call it, “petrol”).
Another marketer, NNPC Limited, decided to officially communicate to its customers a range of prices of PMS at its outlets across the country. The Nigerian Labour Congress (NLC) and its cousin the Trade Union Congress (TUC) met with officials representing the Federal Government on Wednesday, May 31 over the effects of subsidy removal on Nigerians, where both NLC and TUC were asked to present their list of demands or proposals aimed at “cushioning” the effect of subsidy removal. The two labour unions left and convened their separate meetings on Friday, June 2. While TUC put together a list of their demands and met on Sunday, June 4 with the FG delegation led by Secretary to the Government of the Federation, Senator George Akume, the NLC on Friday, June 2, declared an “indefinite strike” from Wednesday, June 7, and refused to meet with the federal government’s delegation on Sunday, June 4, as earlier arranged.
At the Sunday, June 4 meeting, the FG and TUC agreed to set up a tripartite committee comprising states, the organized labour, and the private sector to review the proposals/demands/ cushioning ideas on the tables, one of which is increase in salaries of Nigerian workers. In all this the NLC, in a crudely belligerent fashion, is spoiling for a fight while adults are working on solutions.
On Sunday, June 4, while appearing on the Arise TV Thisday Live show, the President of NLC, Joe Ajaero, was asked by the show host, Reuben Abati, why he was not at the TUC-FG meeting, which was going on at that time. Mr. Ajaero responded that he did not attend the meeting because fuel subsidy was removed. He had no good words for Dangote Refinery either, and excoriated the FG for failing to revive its refineries. What he cunningly failed to tell viewers is this: In 2007, Dangote and other investors, under the Blue Star group, bought the Port Harcourt Refinery, with a commitment to further invest over $1 billion to expand it. As soon as President Obasanjo left office, the NLC put pressure on President Yar’Adua to reverse this decision. Eventually, the FG returned to Dangote and his group the money that they had paid. I recall that in July 2007, the old NNPC boasted that by September of the same year, they would reactivate the same refinery that President Obasanjo had sold to Dangote’s Blue Star group. I reacted and wrote the article titled “Yar’Adua’s Wrong Steps” (available online) in July 2007. From then, Dangote decided to build his refinery from the ground up, and this NLC president is not excited about it? Does he know that the new NNPC Limited has bought a stake in Dangote Refinery? Mr. Ajaero also has not told Nigerians that Daewoo company of South Korea is currently working to reactivate some of the moribund refineries of the FG.
Furthermore, the NLC president has refused, neglected, and failed to tell Nigerians that he is aware that President Buhari signed the Petroleum Industry Act (PIA) in October, 2021, which CRIMINALIZES fuel subsidy, permitting it for only 18 months in the transitional period (which expires in June 2023, counting from the date of official commencement of implementation). Nigerians should ask Mr. Ajaero why his NLC didn’t call for “indefinite strike” because of this. Only few weeks ago, the immediate past minister of Finance announced to the world that fuel subsidy would end from June this year. Why did Mr Ajaero and NLC keep quiet?
In accordance with the PIA, the NNPCL is just like any other fuel marketer, not a regulator in the oil industry. We are fortunate that NNPCL, in spite of being owed by the FG about N2.8 trillion in unpaid fuel subsidy, had the foresight of stocking up enough PMS to last for 30 days (counting from the end of May this year). Therefore, since the Tinubu’s government took over, not a drop of PMS has been imported; and, hopefully, if Dangote Refinery starts pushing out its products into the market in the first week of July this year (and this is doable), importation of refined petroleum products shall be unnecessary going forward, with positive effect on the Nigerian consumers.
Furthermore, logic imposes the truth that the volume of PMS that Nigerians consumed daily under the old price regime cannot be the same under this current price regime. The result is that the NNPCL old stock can last much longer than anticipated.
I expect that the June revenue in the Federation Account shall be much higher than in the months heretofore, even as NNPCL, for instance, will deposit more revenue for the federation. Hence, both the federal and subnational governments shall have improved revenues from June 2023 by simply blocking just one revenue leakage called Fuel Subsidy (I expect more revenue leakages to be identified and blocked). How should the additional revenues be spent for the welfare of the people? This is the important conversation that the Ajaero-led NLC has chosen to not be part of, rather electing to toe a partisan political path just to unsettle the new federal government of Tinubu, which Ajaero and his Labour Party have openly opposed.
Nigerians should know that what the NLC is asking for (“reversal of the pump prices of PMS by NNPCL”) cannot be done by the federal government or the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA), because they lack such powers under the PIA. The Equalization Fund too is gone under the PIA. Let Nigerians note that NNPCL can sue and be sued. Besides all these, if they so wish, the NLC can register a fuel company and get products from anywhere in the world and sell at any prices it wishes.
Finally, let me give Nigerian workers free and unsolicited information and advice:
Only few days ago, the Industrial Court ruled that it is lawful for workers to not be paid for the period they are on strike, and that this agrees with the Trade Dispute Act and International Labour Organization (ILO) charter.
Therefore, workers or trade unions who decide to heed the NLC’s call and go on “indefinite strike” from Wednesday, June 7, should expect to forfeit their salaries for the entire period of strike (including the salary increases, which shall come soon). The NLC will not give them palliatives, their families shall suffer more, and in the end the fuel subsidy will not be restored and NLC officials like Ajaero (who don’t live on their salaries) will be sustained on check-off dues by workers, which have accumulated over the years or months.
President Tinubu announced that he would govern by the “Constitution and Law”. This is pregnant with meaning. Some Nigerians often brand theirs a ” lawless country”. Now, we have a president who has started governing by the “Constitution and Law”, and NLC is asking him to break the Law, simply because former presidents broke the Law? Illogical, puerile!
Nigerians, let’s build our nation together. This is not the time for partisan politics.
Leonard Karshima Shilgba
©Shilgba
Leonard Karshima Shilgba, PhD
Professor of Mathematics,
Director of Academic Planning and Quality Assurance,
Pioneer Ag Vice Chancellor/President,
Pioneer Vice President (Academics)
Admiralty University of Nigeria.
Tel: +234-7035939505;
+234-9074346000 (WhatsApp)
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