Organized Labour Chickens Out, Suspends Strike, DISCOS To Suspend New Tariff

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Ngige

By; AMOS TAUNA, Kaduna

The organized labour has suspended the strike scheduled to commence today (Monday).

This followed an agreement reached with the Federal Government at a meeting which started at 8.30pm on Sunday and ended at 2:50am this morning.

After exhaustive deliberations on the issues raised by the organized labour, the meeting agreed to suspend the application of the cost-reflective electricity tariff adjustments for two weeks.

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

The Nigeria Labour Congress (NLC) President, Ayuba Wabba; and his Trade Union Congress (TUC) counterpart, Quadri Olaleye, amongst others signed on behalf of Organised Labour while the Minister of 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.

The organized labour and the federal government agreed to set up a technical committee comprising Ministries, Departments, Agencies, NLC and TUC that would work for two weeks effective from September 28.

The technical committee to examine the justifications 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 members of the committee, according to the communique include 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 communique said the committee’s terms of reference 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.

It noted that during the two weeks, the DISCOs shall suspend the application of the cost-reflective electricity tariff adjustments.

Consequently upon the deliberations, the federal government has fashioned out palliatives that would ameliorate the sufferings that Nigerian workers may experience as a result of the hike in cost electricity tariffs and the deregulation of the downstream sector of the petroleum industry, saying that the palliatives would be in the areas of transport, power, housing, agriculture and humanitarian support.

The meeting also resolved that the 40 per cent stake of government in the DISCO and the stake of workers should be reflected in the composition of the DISCO’s boards.

It agreed 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 labour represented.

The communique explained that all parties agreed on the urgency for increasing the local refining capacity of the nation to reduce the over dependency on importation of petroleum products to ensure energy security, reduce cost of finished products, increase employment and business opportunities for Nigerians.

To this effect, 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 communique observed that 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.

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 said the federal government would 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.

It urged 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.

To cushion the impacts of the downstream sector deregulation and tariffs adjustment in the power sector, the federal government agreed to announce in two weeks a specific amount to be accessed by workers with subsequent provision for 240,000 under the auspices of NLC and TUC for participation in agricultural ventures through the Central Bank and the Ministry of Agriculture.

The meeting further resolved that the federal government will facilitate the removal of tax on minimum wage as a way of cushioning the impacts of the policy on the lowest vulnerable.

The government would also make available to organized labour 133 CNG/LPG-driven mass transit buses immediately and provide to the major cities across the country on a scale up basis thereafter, to all states and local governments before December 2021.

On Housing, the communique observed that 10 per cent to be allocated to Nigerian workers under the ongoing Ministry of Housing and Finance initiative through the NLC and TUC.

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