Will the 11th hour injunction, obtained from the National Industrial Court restraining the planned national strike by Labour on Monday, derail labour? LEADERSHIP WEEKEND’s LOUIS ACHI examines the key issues thrown up by the activation of the zero-subsidy policy by President Goodluck Jonathan and previews the mother of all strikes shaping up.
The nation’s two major labour unions – Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC), after an emergency meeting midweek in Abuja declared in a statement that workers will begin an indefinite strike unless the federal government reverses its decision on the sudden removal of subsidy on petroleum subsidy. “After exhaustive deliberations and consultations with all sections of the populace, the NLC, TUC and their pro-people allies demand that the presidency immediately reverses fuel prices to 65 naira.
“If the government fails to do so, they direct that indefinite general strikes, mass rallies and street protests be held across the country with effect from Monday, 9th January, 2012,” the two unions said in a statement.
A fallout from the foregoing scenario, at press time, leaders of Nigerian labour unions and representatives of the federal government are holding discreet talks in Abuja in order to resolve the dispute occasioned by the sudden withdrawal of subsidy on petroleum products. A source said the meeting is the first in a series of talks that would calm nerves over the heated subsidy issue. Former labour leader and note and now Edo State Governor, Comrade Adams Oshiomhole is reportedly leading the effort to ensure that both parties reach a settlement in order to avert a planned nationwide strike scheduled in the next 48 hours, Monday.
The tension soaked dialogue, as it were, has a background and failure to strike an acceptable deal, willy-nilly may lead to the shutdown of the country. Nigerians have shifted to a war footing, if the panic withdrawals from banks, stocking up of food items and cancellation of travel plans are indicative of a proper reading of the labour-cum-political atmosphere.
Although Oshiomhole denied he led such effort, he conceded that channels were being explored to see that both government and labour resolved their differences. But on the possibility of forestalling Monday’s strike he said, “That will be a miracle.”
Build-up
On the January 1, 2012, President Goodluck Jonathan gave teeth to his earlier proclaimed resolve to end the 25-year old fuel subsidy regime. Before then, in his 2012 budget proposal sent to the National Assembly, provision for fuel subsidy was markedly absent. This sent the clearest signal to Nigerians of the presidential intent to end the decades-long subsidy discussion. There was more.??
Significantly, in the Medium Term Expenditure Framework, the president submitted to the Senate on October 4, 2011, had stated that N1.2trn would be saved from the fuel subsidy removal that is to commence in January 2012. According to him, the money will be spent on providing ‘safety nets’ for the poor and revamping critical infrastructure.
But following criticisms of the plan by some lawmakers, the President and the Minister of Finance, Dr. Ngozi Okonjo-Iweala, had on October 10 met with the leadership of the National Assembly at the Presidential Villa. Fundamentally, the presidential proclamation touched on an issue that had previously and understandably provoked passion and currently so.
To underlie its resolve to keep faith with its new controversial policy, an emergency meeting of the Federal Executive Council (FEC) presided by President Goodluck Jonathan midweek resolved to press ahead with the withdrawal of subsidy on petroleum products. Additionally, the council announced some measures it said would ease the pains of the masses as effects of the subsidy transfer hit citizens nationwide. Some of the measures according to Trade and Investment Minister, Mr. Olusegun Aganga, Transport Minister, Mr. Idris Umar and Information Minister, Mr. Labaran Maku, who addressed journalists at the villa after the meeting include:
a) The immediate provision of 1,600 mass transit buses nationwide.
b) Payment of workers’ salaries on the 20th of every month; and
c)? N10 billion in loans to credible transporters, labour unions and organizations payable within 5 years at an interest rate of 5%.
According to Aganga, the government has a duty to ‘turn short term pain to long term gains’ with the measures. “For the first time, we want to put in place a sustainable robust mass transit programme. In the next couple of weeks, there will be sufficient mass transit buses…
“As the Federal Executive Council, we are not here to punish Nigerians,” Aganga added, saying the FAAC has been directed to meet on January 15, 2011, to deliberate on revenue sharing.
Speaking further on the deliberations of Council, Labaran Maku appealed to Nigerians to understand government’s position on the subsidy policy claiming, “There is no way a country will survive with a N5 trillion debt with N500 billion for debt servicing”, adding that government borrows to fund the entire capital budget.“If it continues, the economy will collapse and companies will be forced to cut work force,” he stated.
He said since the previous government postponed deregulation, the intended benefits did not come true adding that, “For as long as government continuous to monopolize the sector, no private sector will come in and invest in Nigeria.” If labour was impressed with these governmental homilies, this was not mirrored in its toughened stance as it braced for the mother of all strikes.
Old Controversy
The issue of deregulation of the nation’s downstream petroleum has been a 25-year long conversation or monologue. Successive reductions in subsidy and pledges to plough the savings into worthwhile social palliative projects have turned out to be a chimera. With little question, human civilizations are energy-driven. Over time, the discovery and domestication of crude petroleum, the prince of fossil fuels, made it the most popular, if not most important energy source on the planet. It’s then little wonder that back home in Nigeria, the sheer passion and debate which new policy positions by government on the oil sector and more specifically, deregulation, customarily provoke are sure indications that the subject matter is an important socio-economic and even an important political issue.
The removal of petroleum subsidy in is usually an act by which the government funding of a particular industry is reduced or eliminated in order to create and foster a more efficient marketplace. Deregulation theoretically creates an economic environment favorable to upstart companies that were unable to enter the industry prior to the passing of deregulation.
Rightly or wrongly, Nigerians believe that low petroleum product prices are a given right in the absence of social cushions and have protested vigorously through labour strikes each time these prices were increased in the last few years and are bitterly against the deregulation of the downstream sector. These disruptions obviously have widespread political implications.?
How will the latest scenario play out?
Back To The Trenches
An indication that this may represent Jonathan’s toughest call emerged within the week when some officers of the Nigeria Police Force in Lagos reortedly joined in the protest following the sudden removal of fuel subsidy. An eyewitness claimed he saw that about 300 policemen marching in Oregun and heading towards Alausa, the seat of government in Lagos. The policemen were chanting anti-government slogans.
In a related development, pockets of protesters have successfully staged protests in various parts of Lagos State. Angry protesters took over major roads like Ikorodu Road, various roads around Ojuelegba in Sululere, Mushin and Idioro amongst others. Protests were also reported in Kano, Ilorin, Zamfara and Abuja.
To underscore the irreversibility of its strike resolution, the Nigeria Labour Congress (NLC) Thursday warned President Jonathan not to treat as a joke, its threat to proceed on a prolonged massive strike with effect from Monday. The labour movement said in Abuja that it would not compromise its decision to call out Nigerian workers on a massive protest that would disrupt the country in a way that has never been done by previous protests.
To signal the seriousness of the face-off, the rank of protests against the Federal Government continues to swell even as the leadership of the Nigerian Bar Association (NBA) Thursday declared support for the planned nationwide strike of NLC and the Trade Union Congress (TUC).
Also yesterday, banking halls across Lagos were filled with many customers rushing to make last-minute withdrawals in response to the labour directive to stockpile food items.
A number of banks visited by LEADERSHIP WEEKEND showed long queues of people wanting to make withdrawals with their automated teller machine (ATM) cards while the banking halls were also filled with customers wanting to make various transactions.
LEADERSHIP WEEKEND checks on the banks show a steady flow of customers wanting to withdraw money.
But later in the day, the traffic scaled up as an overwhelming increase in the number of people that have joined the already long queues with the intention of withdrawing money was observed. A bank customer who identified himself as Kelani Ajose said he decided to conclude all his transactions with the bank as quickly as possible so that he would not be cut-off by the strike action on Monday. “There is a facility that I want from my bank which I have been pursuing since last year. I decided to conclude it as soon as possible before the strike commences next week.”
Meanwhile on other fronts, heeding labour’s clarion call, the NBA has directed all lawyers in the country to participate in the nationwide strike by withdrawing their services from courts, as well as other forms of legal services except such services that would pile more pressure on the Federal Government to reverse its decision on fuel subsidy. In a press statement signed by the NBA president, Mr Joseph Daudu (SAN), the Bar called on the National Assembly to seriously consider impeachment proceedings against President Jonathan who has now lost the confidence of Nigerians to continue to rule or lead them.
Daudu said: “Where and if government persists on this suicidal course of action, the options open to the people are limited but clear. Firstly, Nigerians should call on the National Assembly to officially and formally declare its position on the removal of fuel subsidy. If as we believe the National Assembly sides with the people, then it must in the same transaction call on the President to rescind or reverse its actions on subsidy removal.
“Should their call not be heeded by the president, then the National Assembly should seriously consider impeachment proceedings; the president having lost the confidence of Nigerians to continue to rule or lead them. If the Legislators fail to take the desired actions then Nigerians will commence the constitutional process to recall them.”
Also Thursday, the NLC asked the government to wake up to the reality that Nigerians are resolved to resist its punitive policies and determined to reclaim their country from those who are intent in bringing it down. It described as untrue, stories “planted” on the internet that its leadership was meeting with some government officials on the issue of increase in fuel prices.
“We restate categorically that the Labour Movement has no intention to hold any discussion with the Federal Government or any of its officials on the issue of increases in petrol prices until the price is reverted to N65 per litre to allow for a level playing field. NLC acting General Secretary, Comrade Owei Lakemfa in a statement also denied being sponsored by oil marketers on the planned nationwide strike. Stressing that the leadership of the union has no time for frivolous, unsustainable and unproductive ‘dialogue’ with the Presidency or any of its Dialogue Committees, Lakemfa, noted as absolute falsehood, the reports that labour leaders were discussing with the Presidency, but rather stated that labour was busy mobilising for the indefinite strike action and mass protests which commence from Monday, January 9, 2012.
Interlocutory injunction:
Yesterday, as the build-up to Monday’s planned strike intensified, the federal government secured an injunction from the National Industrial Court restraining the NLC and TUC from embarking on the strike. But Labour derisively dismissed it as a back-door black market effort to derail a populist, mass action.