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Tuesday 13 December 2011

Subsidy: TUC shuns Jonathan

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Written by  Fidelis Soriwei and Adetayo Olalekan, Abuja

Mr. Omar Abdulwahed
Mr. Omar AbdulwahedFile
Last minute efforts by the Federal Government to win the support of organised labour for the withdrawal of fuel subsidy have failed.

President Goodluck Jonathan, on Monday, was billed to hold a meeting with the Nigeria Labour Congress and the Trade Union Congress at the Presidential Villa.
However, while the President of the NLC, Mr. Omar Abdulwahed, and a team of NLC officials showed up, the TUC shunned the meeting.
Sources told THE PUNCH that the President, who had led the government delegation to the meeting, called it off when it became obvious that neither the President of the TUC, Mr. Peter Esele, nor any of the other officials planned to show up. 
The meeting came a day ahead of Tuesday’s (today) presentation of the 2012 budget to the National Assembly, where Jonathan is expected to formally announce the withdrawal of the subsidy.
Our correspondent reports that the meeting had been scheduled for the State House Banquet Hall and was meant to begin at about 1.30pm.
As soon as delegates from both sides to the negotiation arrived, journalists were told to leave the venue, as one official said the parley was a private one.
Other members of the Federal Government team were the Minister of Finance, Dr. Ngozi Okonjo-Iweala; Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke; and the Labour  Minister, Mr. Emeka Wogu.
While the NLC has openly opposed and condemned government’s moves to remove fuel subsidy, the TUC on the other hand, has given some conditions that government must meet before deregulating the petroleum sector.
The NLC had urged government to go after those who had hijacked the subsidy and not place a burden on ordinary Nigerians.
On its part, the TUC insisted that a deregulation policy that was based on fuel importation was inimical to the interest of Nigerians, urging government to redirect its focus to refining crude for local consumption.
In calling off the meeting, the President was said to have explained that he did not want to meet with the NLC and the TUC on different dates as such a move could be misconstrued.
He said that some labour stakeholders might feel that it was a move by the Presidency to divide labour, which was not what he wanted.
The source said, “The meeting couldn’t hold. It was postponed because the TUC leadership, Esele and others couldn’t make it. It’s like they are outside the country.
“So the President came and apologised and said that the TUC was not there and that he did not want to appear as if he was holding meetings to divide labour.”
Officials of the TUC contacted last night by our correspondents refused to talk about the meeting. The officials also pleaded anonymity because they did not want to offend the President. One of the officials, however, told one of our correspondents that the officials of the union were in town.
Government’s moves to deregulate the petroleum sector had been a long-drawn battle, dating back to 2004 during the administration of former President, Olusegun Obasanjo.
Following a national debate and rejection of the move, the Obasanjo regime had set up a high-powered committee to examine the issue and come up with recommendations.
A former Deputy Senate President, Alhaji Ibrahim Mantu, headed the committee, which also had the then Minister of Finance, Okonjo-Iweala, as a member.
Other members of the panel whose report was not implemented were the then NLC President, Mr. Adams Oshiomhole; while Ahmed Markafi, then governor of Kaduna State represented the Governors’ Forum; Ahmed Yayale, then Head of Service; a former Economic Adviser to the President, Prof. Ode Ojowu; and the then Group Managing Director of the NNPC, Mr. Fusho Kupolokun, among others.
The committee in the report published exclusively by Saturday Punch, stated that any deregulation of the downstream sector based on importation of refined petroleum products would not work and not in the interest of Nigeria.
Meanwhile, a board of reputable professionals from different sectors will be constituted to manage the freed funds that will accrue to the government with the removal of fuel subsidy.
This was one of the outcomes of the National Economic Council meeting held at the Presidential Villa, Abuja on Monday presided over by Vice-President Namadi Sambo.
Briefing State House correspondents at the end of the meeting, Anambra State Governor Peter Obi said the decision to set up the board was borne out of government’s desire to ensure that the freed subsidy funds were effectively managed. Obi said the board would be free from  government control.
He said members of the NEC, including the 36 state governors at the meeting, reinstated their collective support for the government’s bid to commence the removal of subsidy from 2012.
According to him, the governor described the removal of fuel subsidy as a case of inevitability, considering the level of the debt portfolio of the Federal Government.
He said the government had produced a comprehensive document spelling out how the reinvestment funds from  the deregulation would be channelled towards creating social safety nets and critical infrastructural project to help the poor cushion the effect.
The focus, he explained, would be on reducing infant and maternal mortality, funding public work programmes/youth unemployment and urban mass transport scheme, which is being worked out with Labour.
The governor added that the government would build high profile infrastructure like roads and rails, water resources, power and refinery.
He said states and local governments were to prepare their own programmes in other to enhance the effectiveness of the project for the benefits of Nigerians.
According to Obi, the states will be collaborating with the Federal Government in line with the framework for the implementation of the programme.
SOURCE: Punch Newspaper, 13 December 2011. http://punchontheweb.com/
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