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2 November, 2009
Tens of thousands of Nigerian citizens took to the streets in the federal capital territory of Abuja on 29 October in a visible display at protest over the government’s plan to deregulate the downstream oil sector. The manifestation was led by the nation’s two national labour centres, the blue-collar Nigeria Labour Congress (NLC) and the white-collar Trades Union Congress (TUC).
Both ICEM trade union affiliates in the energy sector, NUPENG and PENGASSAN, were forefront in the manifestation, turning out thousands of members. The government’s plan to deregulate also would end fuel subsidies to the nation’s citizenry, an insensitive move that would – the labour federations claim – immediately lift fuel costs from 65 naira per litre (US$.43) to 95 naira (US$.63).
Three Arms Monument at the National Assembly
Such an increase on heating, cooking, and transport fuel costs would drive millions of people in Africa’s most populous country deeper into poverty.
Last Thursday’s protest culminated at the Three Arms Zone in front of the National Assembly, where union and civil society leaders delivered a letter intended for President Umaru Musa Yar’Adua. It called on the government to conduct a citizens’ referendum on the question of deregulation.
The letter was jointly signed by NLC President Abdulwahed Omar, TUC President Peter Esele, and Dr. Dipo Hasfhina, co-chairman of the Labour and Civil Society Coalition. The manifestation started at Berger Junction in Abuja and marched passed several key buildings, including the Nigerian National Petroleum Corp. (NNPC) Towers, the Court of Appeals, and the Nigerian Television Authority, locations where the march halted for rallying speeches.
Both NUPENG and PENGASSAN believe that deregulation can only occur when there is increased local refining capacity from Nigeria’s five oil refineries. NUPENG President Peter Akpatason said deregulating the downstream sector would allow shadowy marketers to limit supplies, thus boosting prices and their profits, “spelling misery to the teeming poor of the country.”
NUPENG President Peter Akpatason
Withdrawing fuel subsidies, he added, when the domestic market is dependent on 80% imported supplies is a recipe for civil strife. The country’s refineries have a combined stated capacity of 445,000 barrels-per-day, but have never operated at that due to neglect, negligible NNPC and government capitalisation, and lack of reliable feedstock supplies. Even if run at full optimisation, the refineries would produce just barely half of the 32 million litres of petrol, kerosene, and other fuel products demanded daily.
PENGASSAN President Babatunde Ogun also expressed skepticism at the current government process toward deregulation. “We vehemently reject import-driven deregulation. We need the free and uninterrupted flow of petroleum products across the country,” he said, adding that means the government must focus on developing more domestic refining capacity and creating jobs for Nigerians.
PENGASSAN President Babatunde Ogun
A major complaint by labour and civil service leaders is the arrogance of Rilwanu Lukman, Nigeria’s Minister of Petroleum Resources, who has concluded publicly that deregulation and the end of price subsidies is now irreversible. His neo-liberal thinking, some believe, is tied to his own relationships with marketers.
The mass number of Nigerians who assembled last week in Abuja resent the government’s fast-track effort to deregulate oil supplies. As NLC President Abdulwahed Omar said at one rally stop, “Nigeria belongs to all of us and if the government is for the people, then the voice of the people must count. If they think that deregulation is a popular policy, let them subject it to a referendum and let Nigerians decide.”
Although the government has been silent on the exact date that liberalisation would occur, indicators such as vessel arrivals and ramping up supply access signal that perhaps it will be soon. But following last week’s mass mobilization, the government may very well have backed off immediate deregulation and an end to subsidies until more public discourse is heard.