Business

January 4, 2011

NLC vows to resist privatisation of PHCN, deregulation in 2011

By Victor Ahiuma-Young
NIGERIA Labour Congress, NLC, has re-affirmed it opposition to full deregulation of the Down Stream Sector of the nation’s Petroleum sector, as well as the  planned privatisation of the Power Holding Company of Nigeria, PHCN.

The umbrella body for industrial unions and some senior staff associations in Nigeria lamented that Nigeria  remained the only major oil producer whose domestic fuel consumption was based on importation, saying “this scenario is not only harmful in social and economic terms; it is equally perilous in the context of our national security.”In a New Year Message to Nigerian workers, President of NLC, Comrade Abdulwaheed Omar said:

“The Congress remains opposed to the auctioning of the refineries in the name of deregulation. For us, the continuing crisis in the downstream sector of the petroleum industry with such symptoms as products scarcity, non-functioning of our refineries, inefficiency and corruption in the regulatory agencies and total dependence on importation of fuel is not only a national disgrace but is completely unacceptable. Our country remains the only major oil producer whose domestic fuel consumption is based on importation. This scenario is not only harmful in social and economic terms; it is equally perilous in the context of our national security.”

“We wish to explicitly restate that we are unequivocally opposed to any reform that would only lead to increases in the prices of petroleum products with its attendant spiral effects on the entire economy.

The fact that the year 2010 enjoyed steady supply of petroleum products at official rates, which is highly commendable, shows that it is possible to ensure the improvement of the welfare of people with commitment from government. It also reveals that if there is the will and commitment from all and sundry, things can work smoothly in Nigeria. We can only ask that this steady and adequate supply of petroleum products be sustained.”

On the planned privatisation of PHCN this year, Comrade Omar declared: “The issue of power generation and distribution remains a daunting challenge. The sector has equally gulped billions of naira without commensurate improvement in services.

This sad situation has led to the closure of factories or relocation of many businesses from Nigeria to neighbouring countries where there exists improved power supply. In the face of this lack of improvement, and largely due to the failure of virtually all privatized public companies, NITEL being the most glaring example, Congress is opposed to the planned privatization of the Power Holding Company of Nigeria (PHCN).

In this regard, we will support and strengthen the struggle of the electricity workers against the privatization of the electricity sector in the country. Congress will also resist the planned increment in electricity tariff which we see as putting the cart before the horse, the logical step to take is to first improve the generation of sufficient power before the question of increasing tariff.”

He added that “ The NLC wishes Nigerians a happy New Year and promises to continue in the struggle for the emancipation of our people from poverty and want in the midst of plenty.”