Petrol price hike: Nigerians at breaking point, NLC, Atiku warn
By Dapo Akinrefon, Victor AhiumaYoung & Olasunkanmi Akoni
LAGOS — The Nigeria Labour Congress, NLC, and former Vice President, Abubakar Atiku, weekend, warned that the increase in petrol price by the federal government has put most Nigerians at a breaking point.
This came as human rights lawyer, Mr Femi Falana, SAN, yesterday urged the Federal Government to ensure the completion of rehabilitation of the nation’s refineries by September 2024 or take legal action against the contractors for breaching their contracts.
This is even as the Socio-Economic Rights and Accountability Project, SERAP, also yesterday asked President Bola Tinubu to direct the Nigerian National Petroleum Company Limited, NNPCL, to immediately reverse the apparently “illegal and unconstitutional” hike in the pump price of petrol across its retail outlets.
While the NLC asked Nigerians to revolt against the price hike, Atiku said the situation of the average Nigerian and the economy will be further compounded by plans by the government to increase Value Added Tax, VAT, coming on the heels of the recent hike in petrol price.
NLC, which insisted on the reversal of the price increase, specifically called on Nigerians to join the government’s quest to interrogate the horrifying petrol price hike.
President of NLC, Joel Ajaero, who was represented by the Deputy President and President-General of Maritime Workers Union of Nigeria, MWUN, Prince Adewale Adeyanju, stated this at the 2024 annual workshop organised by Labour Writers Association of Nigeria, LAWAN, with the theme “Challenges of Nigeria’s Economic Downturn: Survival Options for Workers.’’
He said: “As we engage the forces of retrogression, we want you to continue being on our side. It is your responsibility to continue letting Nigerians know the truth, even as we traverse the various barricades of intimidation and harassment in all guises. Refuse to be intimidated.
Crisis of survival
“Today, we gather amid a crisis of survival that has gripped Nigerian workers and citizens. This crisis is not an accident of fate but a direct consequence of ill-thought-out and ill-implemented policies by the Tinubu-led federal government.
‘’The hike in the price of petrol, the devaluation of the naira, and the unrelenting increases in electricity tariffs have compounded the hardships faced by ordinary Nigerians.
“Moreover, unchecked corruption and fiscal indiscipline have paved the way for an ostentatious lifestyle among political office holders, with little regard for the suffering masses.
The impact of these policies on the everyday lives of Nigerian workers and their families has been nothing short of devastating.
“The hike in petrol prices has led to an astronomical increase in transportation and food costs, which has, in turn, strained household budgets beyond breaking point. The devaluation of the naira has eroded the purchasing power of the average Nigerian, leading to a situation where even basic necessities are becoming increasingly unaffordable.
“Meanwhile, electricity tariffs continue to soar, forcing many into darkness and stifling small businesses, which are the backbone of our economy.
“As we grapple with these challenges, we must also confront the rampant corruption that siphons off resources meant for public good. The lavish lifestyles of political office holders stand in stark contrast to the daily struggles of the average Nigerian worker, creating a chasm of inequality that undermines the very fabric of our society.
“In the midst of these challenges, the NLC has fought relentlessly to secure a fair wage for Nigerian workers. After sustained struggle and negotiations, we achieved the landmark agreement on the N70,000 national minimum wage, which has been signed into law.
‘’This achievement is a testament to the resilience and commitment of Nigerian workers and their representatives. Yet, despite this victory, the implementation of the minimum wage remains elusive and speaks to the nature of the battle ahead.
“We, therefore, call on your members to join us in this struggle the same way you did during the negotiation process so that together, we can enjoy whatever benefits it contains. Do not think it is for us, NLC, alone. It is for you too. It affects all of us so, we must all collectivise our effort to ensure victory at the various levels – state or sectoral.’’
VAT, fuel price hikes will worsen Nigeria’s cost-of-living crisis — Atiku
On his part, former Vice President, Atiku Abubakar, in a statement via his X handle yesterday, said the move to increase VAT could become a “blazing inferno that will consume the very essence of our people.”
He noted that this move, coming on the heels of the increase in the pump price of Premium Motor Spirit, also known as petrol, by the Nigerian National Petroleum Corporation Limited, NNPCL, was “destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.”
He said: “The increase in VAT is set to become the blazing inferno that will consume the very essence of our people… Tinubu’s actions reflect a profound insensitivity to the plight of the less fortunate as he indulges in the opulent renovation of villas and the acquisition of new jets and vehicles for himself and his family.
“President Bola Tinubu, alongside his coterie of advisers, has resolved to raise the VAT rate from 7.5 per cent to 10 per cent, even as the NNPCL has announced a soaring PMS price increase at the pump.
“This move unveils a new era of regressive and punitive policies, and its impact is destined to deepen the domestic cost-of-living crisis and exacerbate Nigeria’s already fragile economic growth.
“President Tinubu and his entourage seem to be resorting to their familiar tactic: heaping burdens upon the impoverished, while steadfastly ignoring their extravagant excesses!
“One does not need to be an economist to grasp the ominous implications of President Tinubu’s ill-conceived policies for Nigeria’s future. The relentless rise in taxes and interest rates has proven excessively onerous, debilitating businesses of all sizes and leading to job losses while intensifying the suffering of the poor.”
Similarly, he said the manufacturing sector, in particular, has endured relentless strife since Tinubu assumed power, with its contribution to GDP diminishing by over 20 per cent since December 2023, as reported by the NBS.
“In early August, Tinubu turned his attention to agriculture. As is customary with this administration, a new policy was clandestinely formulated and announced, permitting duty-free importation of agricultural commodities such as wheat, maize, and paddy, despite vehement opposition from farmer groups nationwide.
“This policy poses a grave threat to Nigeria’s food security ambitions, as local farmers, facing unfair competition from low-cost producers in Asia, Europe, and America, are compelled to reduce or entirely abandon their production efforts.
‘’It jeopardises job creation, wealth generation, and the sector’s long-term prosperity, casting a shadow over Nigeria’s sustainability and development,’’ Atiku said.
Complete refineries by Sept or sue contractors, Falana tells FG
Also yesterday, human rights lawyer, Mr Femi Falana, SAN, urged the federal government to ensure the completion of rehabilitation of the nation’s refineries by September 2024 or take legal action against the contractors for breaching their contracts.
Falana, in a statement, condemned the delay in completing the $2.9 billion rehabilitation contracts awarded to Italian firms Tecnimont SPA and Saipem for the Port Harcourt, Warri, and Kaduna refineries.
He stressed that the government must hold the contractors accountable for failing to meet the project timelines.
The statement read: “Before the end of his tenure in 2007, former President Olusegun Obasanjo sold two of the nation’s four refineries at a paltry sum of $751 million to a local consortium. Many concerned citizens, including the workers in the oil industry, kicked against the illegal privatisation of the two refineries.
“President Umaru Yar’Adua probed the sale and found that the sale was singlehandedly carried out by former President Obasanjo in utter breach of the provisions of the Privatisation and Commercialization Act. Consequently, the sale of the two refineries was cancelled and set aside in the national interest.
“Former President Muhammadu Buhari resisted the pressure of neoliberal ideologues in and outside his government to sell the four refineries as scraps. Based on the advice of patriotic forces, the Federal Executive Council approved the rehabilitation of the two refineries in Port Harcourt for $1.5 billion.
“In line with the terms of the contract awarded in March 2021 to an Italian company, Tecnimont SPA, the rehabilitation of the 210,000-barrel capacity refineries was required to be carried out in three phases of 18, 24 and 44 months.
‘’In particular, the first phase of the contract was to be completed in 18 months, which would take the refinery to a production of 90 per cent of its nameplate capacity.
“Furthermore, on August 6, 2022, the Federal Executive Council, FEC, approved the award of contracts for the rehabilitation of Warri and Kaduna refineries to the Italian company Saipem for $1.5bn. The installed capacities of Warri and Kaduna refineries are 125, 000 bbl/d and 110,000 bbl/d, respectively. The project was required to be completed in three phases: 21, 23, and 33 months.
“The two contractors said to be international experts in refinery maintenance and rehabilitation have not been allowed to explain the breach of the $2.9 billion contracts.
‘’Instead of calling the contractors to order for embarrassing the federal government, the Group Managing Director and Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mr Mele Kyari, has been shifting the dates for the completion of the rehabilitation of the four refineries.
‘’Let Tecnimont SPA and Saipem speak out. Instead of relying solely on the Dangote Refinery and Petrochemical Company Limited to solve the crisis of fuel scarcity and hike in the pump price of PMS, the federal government should ensure that the September date for the completion of the rehabilitation of the nation’s refineries of 445,000-barrel capacity is not further shifted.
‘’If the contractors fail to honour the new completion date, the federal government should not hesitate to sue them for a serial breach of contracts.
“Let the public and private refineries, including the Dangote Refinery, flood the market with refined petroleum products, including PMS. When that happens, there will be no justification for the incessant hike in the pump price of PMS.”
SERAP calls for reversal
Meanwhile, SERAP has urged the President to direct the Attorney-General of the Federation and Minister of Justice, Mr Lateef Fagbemi, SAN, and appropriate anti-corruption agencies to probe the allegations of corruption and mismanagement in the NNPC.
According tio SERAP, they include the spending of the reported $300 million ‘bailout funds’ collected from the federal government in August 2024, and the $6 billion debt it owed suppliers, despite allegedly failing to remit oil revenues to the treasury.
In an open letter by the Deputy Director, Kolawole Oluwadare, the organisation said the increase in petrol price constituted a fundamental breach of constitutional guarantees and the country’s international human rights obligations.
The letter read: “Rather than pursuing public policies to address the growing poverty and inequality in the country and holding the NNPC to account for the alleged corruption and mismanagement in the oil sector, your government seems to be punishing the poor.
“The increase in petrol price has rendered already impoverished citizens incapable of satisfying their minimum survival needs.
“The increase is not inevitable, as it stems from the persistent failure of successive governments to address allegations of corruption and mismanagement in the oil sector and the impunity of suspected perpetrators.
“Corruption in the oil sector and the lack of transparency and accountability in the use of public funds to support the operations of the NNPC have resulted in persistent and unlawful hike in petrol prices.
“Holding the NNPC to account for alleged corruption and mismanagement in the oil sector would serve legitimate public interests.
“The increase is causing immense hardship to those less well-off. We are concerned that as the economic situation in Nigeria deteriorates, the increase in petrol price is pushing people further into poverty.
“We would be grateful if the recommended measures are taken within 48 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall consider appropriate legal actions to compel your government to comply with our request in the public interest.
“Increasing petrol prices at a time when millions of Nigerians continue to face worsening economic conditions is entirely inconsistent with your government’s constitutional and international obligations to ensure the minimum living conditions compatible with human dignity.
“The arbitrary increase has placed a disproportionate burden on the marginalized and most vulnerable sectors of society, particularly those disadvantaged by poverty.
“The increase is seriously jeopardizing their living conditions, well as individuals’ physical, emotional, and individual development, and intensifying and worsening socioeconomic conditions in the country.”
“Your government has a legal obligation to mobilize the maximum of the country’s available resources to ensure people’s socio-economic rights and to protect the most vulnerable and disadvantaged Nigerians.
“Your government also has the legal obligations to probe and prosecute allegations of corruption and mismanagement in the NNPC, and to ensure access to justice and effective remedies for victims of corruption.
“Investigating and prosecuting allegations of corruption and mismanagement in the oil sector would be entirely consistent with the Nigerian Constitution and the country’s international anti-corruption obligations.’’
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