The Nigeria Labour Congress (NLC) has rejected the move by the Nigerian government to increase the price of petrol to N320 and N340 from February 2022.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Malam Mele Kyari had made this revelation recently which has sparked reactions from Nigerians.
In a statement on Wedbesday by NLC President Ayuba Wabba, the congress said the proposal by Kyari which he said was consequent on the plans by the federal government to remove subsidy on petrol was rejected.
Wabba said the union would maintain its rejection of deregulation so long as it was based on an import-driven model.
“The response of the Nigeria Labour Congress is that what we are hearing is the conversation of the federal government with neo-liberal international monetary institutions. The conversation between the government and the people of Nigeria especially workers under the auspices of the trade union movement on the matter of fuel subsidy was adjourned sine die so many months ago.
“We wish to reiterate our persuasion that the only benefit of deregulation based on import driven model is that Nigerian consumers will infinitely continue to pay high prices for refined petroleum products.
“Given the nationwide panic that has trailed the disclosure of the monologue within the corridors of government and foreign interests, the Nigeria Labour Congress wishes to posit that it continues to maintain its rejection of deregulation based on import driven model,” he said.
Wabba said that the situation would definitely be compounded by the astronomical devaluation of the naira.
He said the NLC believes that it would be difficult to convince Nigerian workers why the country was the only country among the OPEC member countries that cannot produce its own refined petroleum products and was thus adopting the neo-liberal import production model of refined petroleum products.
Wabba also said that any attempt to compare the price of petrol in Nigeria to other countries would be set on a faulty premise as it would be akin to comparing apples to mangoes.
“The contemplation by government to increase the price of petrol by more than 200 per cent is a perfect recipe for an aggravated pile of hyper-inflation and astronomical increase in the price of goods and services.
“This will open a wide door to unintended social consequences such as degeneration of the current insecurity crises and possibly citizens’ revolt. This is not an outcome that any sane Nigeria wishes for,” he said.
He said that federal government should consider some of the viable options which NLC feels can help.
The options suggested by NLC includes; insulating the domestic consumers from the market pressure brought about by the free fall of the Naira by making arrangement with contiguous refineries not far from Nigeria to swap crude oil with refined petroleum products; accelerating work on the rehabilitation of Nigeria’s four major refineries which are all currently operating at near zero installed capacity; and establishing empirical data on the quantity of refined petroleum products consumed daily by Nigerians.
“It is unfortunate that this record remains a myth and a huge crater for all manner of official sleaze and leakages in the downstream petroleum sub-sector of Nigeria’s oil and gas industry,” he said.