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NLC demands urgent passage of PIB

By on January 9, 2014

NIGERIA Labour Congress, NLC, has declared as unacceptable the fact that the Nigeria’s petroleum sector is still regulated by the old Petroleum Act of 1969, calling on the National Assembly to immediately pass the protracted Petroleum Industry Bill, PIB.

NLC in a New Year message to Nigerian workers by its President and Acting General Secretary, Abdulwaheed Omar and Chris Uyot, said the body threw its weight behind the demand by the oil sector unions (Nigeria Union of Petroleum and Natural Gas Workers, NUPENG and its Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN) for the urgent passing of the Bill  this year.

According to NLC, a major feature of the Nigerian economy, which emerged in 2013, was the dwindling and unstable public finances of the country, saying “2013 had been characterized by government earnings’ underperformance. In particular, earnings from oil fell below budgetary expectations resulting in budgetary under financing in both the federal and state governments. Recent disagreements between government officials and inconclusive Federation Account Allocation Committee (FAAC) meetings highlight this emerging threat to the national economy.”

“The major underlying factor is the fall in official figures of oil production. This figure has fallen to approximately half of the projected figures in the 2013 budget and even below the production levels in the worst days of militancy in the Niger Delta. Daily production figures have hovered between 1.3 and 1.5 million barrels.

This situation has arisen largely due to increase in oil theft. Official figures on production are only a small fraction of actual production as huge amounts of crude are stolen. According to government itself, the value of stolen crude oil is estimated at over six billion dollars per annum.”

“The continuance of this iniquity holds dire consequences for this country. Accordingly, in spite of vested interests, government must be seen to commit itself to stemming this ignominious act. This process should include the harnessing of the crude refining process by local individuals instead of the futile boot tactics by the task force.

To compound the matter, NNPC has not been transparent and up to date in making remittances to the Federation Account in respect of crude oil sales and the allocation to it for domestic consumption. The recent embarrassing altercation between the Central Bank of Nigeria (CBN) and the NNPC over shortfalls in remittances has further left a sour taste in the mouth.

When the Central Bank comes public with figures, Nigerians expect such figures to be accurate, verifiable and incontestable. The flip flop on the amount owed the Federation account by the NNPC has further compounded the opaqueness which characterizes the management of oil revenues and resources in our country.”

“We support the demand by the oil sector unions for the urgent passing of the Petroleum Industry Bill PIB this year. It is unacceptable that the petroleum sector is still regulated by the old Petroleum Act of 1969. The PIB with all the proposed inputs by all stakeholders will undoubtedly promote transparency and accountability and national benefits.”

The body added that “looking into the future, there is the need to recognize that the international market for Nigerian crude is likely to shrink as alternative sources come on stream. Investment in shale gas development in the US and other countries are beginning to yield results. Congress will continue to articulate for greater transparency in the management of the oil sector and diversification of the economy.”

 

 

 

[Vanguard]