LabourNewsLabour Suspends Planned Strike as FG Reverses Hike in Electricity

Avatar PilotnewsSeptember 28, 2020
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The Nigeria Labour Congress and Trade Union Congress have suspended the planned strike scheduled to start today Monday.

This came following an agreement reached with the Federal Government at a meeting which started around 8:30pm on Sunday and ended at 2:50am this morning.

After series of deliberations on the issues raised by the labour, FG agreed to suspend the application of the cost-effective electricity tariff adjustments for two weeks.

The Minister for Labour and Employment, Chris Ngige, read the communique signed by the representatives of the government and labour.

The NLC President, Ayuba Wabba and his counterpart at the Trade Union Congress Quadri Olaleye, among others signed on behalf of the Organized Labour, Chris Ngige; Minister of State Petroleum, Timipre Silva; Minister of State Labour and Employment, Festus Keyamo (SAN); Minister of Information, Lai Mohammed; and the Secretary to Government of the Federation, Boss Mustapha and others, signed on behalf of the government.

Olaleye on Monday, said, “Definitely correct. We just left a press conference. We signed a document to suspend the action for two weeks for the government to implement those things that we agreed in the agreement. So, we are suspending for two weeks.

“We don’t need a notice again to re-convene if there is a need to do that.”

The meeting also agreed to set up a technical committee including Ministries, Departments, Agencies, NLC and TUC.

The committee would work for a period of two weeks effective September 28. The committee will examine the justification for the new policy “in view of the need for the validation of the basis for the new cost-reflective tariff as a result of the conflicting information from the fields which appeared different from the data presented to justify the new policy by NERC; metering deployment, challenges, timeline for massive rollout.”

The committee members included the Minister of State Labour and Employment, Festus Keyamo (SAN) as Chairman; Minister of State Power, Godwin Jedy-Agba; Chairman, National Electricity Regulatory Commission, James Momoh; Special Assistant to the President on Infrastructure, Ahmad Zakari as the Secretary.

Others are Onoho’Omhen Ebhohimhen, Joe Ajaero (NLC), Chris Okonkwo (TUC) and a representative of electricity distribution companies.

The terms of reference of the committee are to examine the justification for the new policy on cost-reflective electricity tariff adjustments; to look at the different DISCOs and their different electricity tariff vis-à-vis NERC order and mandate; examine and advise government on the issues that have hindered the deployment of the 6 million meters, among others.

The communique added that, “during the two weeks, the DISCOs shall suspend the application of the cost-reflective electricity tariff adjustments.”

It also noted that the FG has fashioned out palliatives that would ameliorate the sufferings that Nigerian workers may experience as a result of the hike in cost electricity tariff and the deregulation of the downstream sector of the petroleum industry.

The palliatives would be in the areas of transportation, housing, power, humanitarian and agricultural supports.

They also resolved that the 40% stake of government in the DISCO and the stake of workers should be reflected in the composition of the DISCO’s boards.

It noted that, “an all-inclusive and independent review of the power sector operations as provided in the privatization MoU to be undertaken before the end of the year 2020, with labor represented.

“All parties agreed on the urgency for increasing the local refining capacity of the nation to reduce the overdependency on importation of petroleum products to ensure energy security, reduce cost of finished products, increase employment and business opportunities for Nigerians.”

To address this, the parties resolved that the Nigerian National Petroleum Corporation should expedite the rehabilitation of the nation’s four refineries located in Port Harcourt, Warri and Kaduna to achieve 50 per cent completion by December 2021, while timelines and delivery for Warri and Kaduna will be established by the inclusive steering committee.

“To ensure commitment and transparency to the processes and timelines of the rehabilitation exercise, the management of NNPC has offered to integrate the national leadership of the Nigeria Union of Petroleum and Natural Gas Workers and Petroleum and Natural Gas Senior Staff Association into the steering committee already established by the corporation,” the communique stated.

It added that a validation team comprising the representatives of the NNPC, Nigeria Extractive Industries Transparency Initiative, Infrastructure Concession Regulatory Commission, NUPENG and PENGASSAN would be established to monitor progress of the rehabilitation of the refineries and the pipelines/strategic depots network and advice the steering committee periodically.

It also said that post-rehabilitation, NNPC shall involve the PENGASSAN and NUPENG in the process of establishing the operational model of the nation’s refineries.

The statement added, “The Federal Government will facilitate the delivery of licensed modular and regular refineries, involvement of upstream companies in petroleum refining and establishing framework for financing in the downstream sector.

“NNPC to expedite work on the Build, Operate and Transfer framework for the nation’s pipelines and strategic depots network for efficient transportation and distribution of petroleum products to match the delivery timelines of the refineries as agreed.”

The government and its agencies agreed to ensure delivery of 1 million CNG/LPG AutoGas conversion kits, storage skids and dispensing units under the Nigeria Gas Expansion Programme by December 2021 to enable delivery of cheaper transportation and power fuel.

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