In this interview, National President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Comrade Olabode Johnson, speaks to our Correspondent, MOSES JOHN, on the recent deregulation of the downstream sector by the federal government and why his union supports the policy among others.
Some Nigerians have expressed disappointment over the Trade Union Congress (TUC) its decision to back the federal government on the recent fuel price hike?
Saying that the TUC disappointed the masses is very unfortunate. It is also very unfortunate that when meetings and discussions like this are going on, journalists are not allowed to be part of it. What you normally do is that at the opening ceremony they will address you and that is all, until, you are also addressed at the end of the event. But when people are now saying that TUC disappoints Nigerians, it is really unfortunate.
For me, I am the President of PENGASSAN, and also an affiliate of TUC. One interesting thing is that I was also there in the meeting. When you look at issues, the most critical thing, especially when you are going for a negotiation is that you must be very, very flexible, you must not be rigid.
Yes, at PENGASSAN, we have a Central Working Committee (CWC), we have the National Executive Council (NEC) which is the highest organ of the association. It is only for the purpose of delegate conference you have the highest delegates; that is the highest body that elected you.
When you look at that, when you consult your CWC and the CWC says take this to NEC, and NEC also deliberates on it, looks at it and ratifies it. The NEC will tell you to go to specific direction.
We also held our NEC which decided that if there is flexibility during discussion even though we had already said this is the direction we are going. We can also look for a way to shift ground. There and then, we can also say, what do we do? We don’t need to go back to NEC again or to convey a NEC. That was the mandate we got.
Apart from not being flexible on the part of NLC, is there any other factor that affected this struggle?
I think, the main thing that is critical and which we must look at, is that no matter what sentiments, no matter what ego, if the intention of Labour is to protect the masses, to secure our members’ job, the NLC must put their house in order and together. They must forget about factions and see how we can all work together. This is important because it is too early for this government. We have a government that is going for four years, by this month they will be one year.
So, if Labour is doing like this at this time, what happens if there are greater challenges? The faction in NLC is not good for Labour. The NLC must look for a way to resolve the factionalised groups. In the interest of unity, let them put their house together.
Then for NLC and TUC, definitely they can also have a meeting point. But for NLC, if they are coming to any forum divided, how do they make it? Will you be able to go to TUC and say, let us see what we can do when you know that a faction is waiting in the wings? So, that is it.
In the past Labour has rejected price increase and commenced industrial action even as government initiates negotiation but Labour has never backed downed when the government has not shifted ground.
Why do you think TUC and the NLC faction caved in without achieving anything?
You have a point but it is also good that Labour tries to be flexible in the interest of the country. Let me give an example, if I am going for a meeting, and the point I hold is total reversal before we start discussion, that is my plan A. My plan B should be that if they don’t accept reversal, then I will see how we can get XYZ.
Doing that, Nigerians will also understand. Like the saying goes, when two elephants fight, it is the grass that suffers. People would say these people have scattered this place. But if we have agreed on something and have a meeting point, that will also be good.
The government has agreed to set up a joint committee, that committee is also to look at the issue of price, look at the issue of PPPRA, the issue of refineries and things to put in place so that the refineries can work and so many other issues.
Also the issue of infrastructural development as encapsulated in the budget would also be considered. So, I believe and want to appeal that Labour must also fight strongly on that.
The issue of minimum wage is also very important on the agenda. If they have increased to N145 per litre and Labour also comes back as a result of this committee, the price is also agreed at N135 or N140. It means that it should not be above that and government has to set up the board of PPPRA which will be monitoring it. But for that to be captured properly, For TUC, I don’t think there is any problem with that.
However, we must also make sure that Labour, NLC factions, are one.
For example, if you look at the issue of minimum wage, Ayuba is saying N56,000, the other people are saying N90,000. With this, if government looks at it and say they are getting money, then let us look at XYZ and they agreed on N70, definitely you know that the other faction has gained a lot of ground.
On the other hand if we have a government that is also reckless, they can just continue with the division and take opportunity of the factions in NLC.
Some Nigerians fear that Labour movement in the country is polarised and may never be the same again. What is your take on this?
One thing I know is that definitely for PENGASSAN and other affiliates of TUC, we are all under one umbrella and we agree together. There is no doubt about that.
What we must, however, look at is that if NLC can put its house together, then there won’t be problem.
As affiliates, we tell ourselves the truth. If we don’t look at the interest of the people and we want to continue as TUC and NLC. If we don’t come together, PENGASSAN can stand on its own. Others, like ASSBIFFI can also stand on their own.
I believe TUC and NLC can still be united, if we decide to do it and agree together on the way forward.
But some people have accused PENGASSAN and NUPENG of placing their sectorial interests over that of the Nigerian masses for supporting the price hike after the NLC and the TUC came up with same position in their different NEC to reject the fuel price increase?
It is not true, I take exception to that and let me say this that NUPENG and PENGASSAN are also Nigerians. For now, except there is stability and money comes from other sources, the oil and gas industry is the mainstream of Nigeria economy.
Until we diversify into agriculture and other sector, oil and gas remain the mainstream of our economy. So when you look at the situation, and considering that prior to now, the two unions in the oil and gas have been advocating for deregulation of the market, they can’t accused us of placing sectorial interest above that of overall interest of Nigerians, because once the market is deregulate, everything would be taken care of.
But as we have also been saying import-driven deregulation is not acceptable to us, so the key thing is that the refineries must be put to work.
Once you keep importing there is going to be depletion on the foreign exchange earnings. If for instance you put down what you are consuming locally, let’s say 35 to 40 million and may be the refineries is producing like 20 million, then the country can go for 15 million litres importation. Dangote refinery is also coming. We can also look at the issue of modular refineries which can be completed within 18 months.
Coming to say PENGASSAN and NUPENG put their sectorial interest first is not correct. Take for instance if the oil and gas is functioning very well and there is massive employment, the Labour centers would also be strengthened. So, that is the issues, we are all Nigerians we are not putting first our sectorial interest beyond that of the generality of Nigerians but due to the strategic nature of the sector, the oil and gas is key.
But we are still importing, so why do you support the policy?
I said refineries must be made to work, and for instance you have a car that is parked for a while and you know what you are going through, what you will do is to source for money and fix the car so you don’t continue going through that phase. They must tell us their action plan for the refineries, they are also going to make sure that the market is opened for everybody to import so that NNPC will also save money.
Like in the past, subsidy was 1.3trillion, but most of the money went to private pockets. A committee was put in place, but how much did they recoup. When budget was releases, there was no subsidy but we kept quiet. As Labour we always say when we get to the bridge we would know how to cross it. Sometimes if there is flood you can’t even see the bridge or if the bridge has been destroyed how can you cross it?
We need to be proactive and look ahead. For example, look at the bailout funds, state governments were given bailout funds. How many of them used it judiciously? Last week, the former Abia State Governor, Orji Kalu said governors pocket N35million when they go on foreign trip.
This is just a trip; calculate this by how many times a governor travels in a year. That N35million can pay wages of many workers.
So I think what we ought to have done is to shut down this states who can’t pay salaries within the ambit of the law and by doing that Nigerians will appreciate us, and not to wait and embark on strike if there is any increase.
So are you advocating for price reduction?
In that committee, price reduction is one thing that is put on the table for negotiation. There must be price reduction, let them look at it and see if they can come out with anything.
What is the way out of this situation?
The way out is for Labour to be united and speak with one voice and put whatever ego aside. For instance if I am going to work, there is nobody that doesn’t have challenges, once I get to my office premises, I will drop that challenges at the gate. So also Labour must put our house in order.
With the crisis in NLC, do you think having another Labour center would solve the problem?
Well there was a time when it was only NLC and President Olusegun Obasanjo thought then that NLC was too powerful and considered another Labour center which was TUC, to break the influence of the NLC. Labour then was one. The thinking was if they are thinking of dividing us, let bind together because the more we are, the stronger we are.
If government wants to add another Labour center and we are united, they can’t break us.
