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Tag: NUPENG

  • Disregard IMF’s advice on fuel subsidy removal, NUPENG, PENGASSAN tells FG

    Workers in the oil and gas sector on Sunday advised President Muhammadu Buhari to shun any counsel that would destabilise or cause chaos in the economy.

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association (PENGASSAN) gave the advice in a statement in Lagos.

    The statement was signed by Mr Okugbawa Lumumba, PENGASSAN General Secretary and Afolabi Olawale, NUPENG’s General Secretary.

    The Managing Director, International Monetary Fund, Christine Lagarde had on April 12 called on the Federal Government to remove fuel subsidy because of low revenue mobilisation that existed in terms of tax to Gross Domestic Product.

    They said that the IMF advice on how to recover Nigerian economy was worrisome as it had become counter productive.

    “Any economic policy that is devoid of human feelings can lead to more social dislocations and upheavals, which will later become counterproductive as currently experienced,’’ it said.

    The unions said that IMF had created panic in the country with associated hoarding of petroleum products, panic buying, skyrocketed increases in prices of goods and services in the country.

    It said that earlier, the IMF chief praised the significant progress the nation had made in terms of its Gross Domestic Product (GDP) that increased by 1.9 per cent in 2018 from 0.8 per cent in 2017.

    It said that the IMF was not considering the pains and agonies the people went through to achieve the gains of 2018, with almost two-thirds of the world’s hungriest people among Nigerians.

    The unions also cautioned that imposing more stringent reforms in domestic revenue mobilisation including increase in VAT and securing more domestic oil revenues through subsidy removal was an attempt to destabilise the nation.

    The unions in the statement appealed to President Buhari to put in mind the current hardship the people were going through in their collective journey to economic recovery.

  • IPMAN, NUPENG address mounting fuel scarcity, assure of sufficient product

    IPMAN, NUPENG address mounting fuel scarcity, assure of sufficient product

    The Independent Petroleum Marketers Association of Nigeria (IPMAN), and National Union of Petroleum and Natural Gas Workers (NUPENG), have urged Nigerians to stop panicking over fuel scarcity as there is sufficient product.

    The duo said this in separate interviews with the News Agency of Nigeria (NAN) on Saturday in Lagos against the backdrop of the ongoing fuel scarcity in the country.

    The association confirmed that about six vessels of imported petrol ordered by the Nigerian National Petroleum Corporation (NNPC) were currently discharging the product, assuring that the corporation has sufficient products.

    Mr Chinedu Okoronkwo, the National President of IPMAN, told NAN that there was no need for panicking over fuel scarcity, as virtually all the NNPC depots across the states had commence loading of petroleum product by marketers.

    ‘’Marketers are currently loading petrol in Makurdi, Kano, Enugu, Aba,Yola, Suleja, Kaduna, Ejigbo, Mosinmi, Ibadan and other depots across the country.

    ‘’The shortfall in distribution was due to slow pace of product importation and hitches at the jetty which had been addressed.

    ‘’But the Federal Government is on top of the situation, there is enough of petrol to go round. I have also instructed all our members to ensure adequate distribution of the product across the country.

    “I have also directed them to ensure product is sold at official price of N145 per litre. If there is any issues on distribution and pricing differentials, members should call the secretariat for further action.

    ‘’The Petroleum Product Pricing Regulatory Agency (PPPRA) template has not changed, so, no marketer should influence hike or sell above official price,’’ he said.

    Okoronkwo reaffirmed the commitment of the association toward supporting the Federal Government’s efforts on effective and efficient distribution of petroleum products across the country.

    He stressed further that IPMAN had so far reached an agreement with other marketers for better synergy in making the product available in the country.

    “IPMAN which controls 80 per cent outlets, has more advantage in distributing and dispensing in both urban and hinterlands in the country.

    “In line with the Federal Government’s efforts at ensuring efficient petroleum products distribution across the country, IPMAN members have opted for a seamless distribution of petroleum products,’’ he said.

    He noted that such synergy amongst members with the Federal Government, would present a common front that would advance the interest of the group and ensure smooth distribution of the products across the country.

    Mr Tayo Aboyeji, Chairman, Lagos Zone of the National Union of Petroleum and Natural Gas Workers (NUPENG), also colloborated the IPMAN’s president, saying “there is enough fuel, Nigerians should avoid panic buying’’.

    Aboyeji said that “there is fuel and it is available, as I am talking to you now, some of the depots have received the products and are already loading.

    “What is happening was panic buying, people think there might be price increase from government or removal of subsidy.

    “But nothing of such, government has assured us that no increase in petrol pricing for now, so, Nigerians and marketers should avoid being panic over fuel scarcity.

    “I urge Nigerians and motorists to avoid storing of petrol at home because it’s dangerous for us, fuel is available, I have visited some depots and I can confirmed to you that loading is going on.

    ‘’As at Friday, we have instructed our tanker drivers to engage in 24-hours loading activities and lift products from depots to filling stations across the country.

    “We will ensure 24-hours service delivery of product distribution in the country, we also urge government to checkmate activities of the task force in Lagos and along Ibadan expressway.

    “Our members are being extorted and harassed by members of the task force. Some drivers who were scheduled to load in Lagos were denied asses to Lagos, which also affects effective distribution of products,’’ he said.

    Alhaji Debo Ahmed, the Chairman, Western Zone of IPMAN, however attributed the ongoing queues at some stations was due to shortfall in NNPC distribution network to depots.

    Ahmed said that all depots within the South-West zone were loading at a low pace due to insufficient products.

    “We have lots of pending tickets from marketers awaiting loading at depots but were still stranded.

    Also, Alhaji Ayo Alanamu, the Chairman, IPMAN Ejigbo Satellite depot, attributed the challenges to shortfall of the product from NNPC.

    Alanamu said that marketers, IPMAN and NNPC retails battled with 40-trucks on daily basis which was not sufficient.

    He urged government to expedite action toward importing more products to avoid another round of scarcity that had ended.

    He noted that depot owners were also contributing to the scarcity due to the hike in pricing.

    NAN recalls that on April 12, NNPC said trending social media report of an impending fuel scarcity due to purported refusal by some oil marketers to lift products from depots was false.

  • Stop panic buying of fuel, NUPENG urges Nigerians

    The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) on Saturday called on Nigerians to stop panic buying of petrol and diesel as there was enough of the products in circulation.

    Mr Tayo Aboyeji, the NUPENG South West Chairman, made the call in an interview with the News Agency of Nigeria (NAN) in Lagos.

    “Nigerians should stop spreading and listening to rumours of government removing fuel subsidy and increasing pump price of fuel.

    “We are not aware of such move, there is enough fuel in circulation and no increase have been made so far, ” Aboyeji said.

    The NUPENG boss cautioned Nigerians of the impeding dangers of storing and stock piling fuel at homes and shops, especially during this hot weather.

    “Careless storage of fuel can lead to fire disaster both in the house or in the car,” Aboyeji added.

    NAN reports that some few gas stations are not selling fuel while the few ones selling are witnessing long queue of vehicles and jerry cans in Lagos and other parts of the country.

    Despite the long queues, however, transport fares in most parts of Lagos state remain the same.

  • Subsidy debt: Depot owners suspend shutdown of operations, give 5-day grace

    The Depot and Petroleum Products Marketers Association (DAPPMA) has suspended its planned shutdown of depots across the country from loading petroleum products effective from 12-midnight on Sunday, Dec. 9.

    The suspension directive was conveyed in a statement issued by DAPPMA Executive Secretary, Mr Olufemi Adewole, at about 1.20 a.m. on Monday in Lagos and made available to the News Agency of Nigeria.

    Adewole said: “Recalls the association had issued a shut down directive to our members following the continuing indebtedness of the Federal Government to the petroleum marketers.

    “However, following the intervention of well meaning Nigerians including the National Assembly as represented by the Senate Committee of Petroleum Downstream and constructive engagement of the Federal Government team by the labour unions most affected by the disengagement of our personnel, namely, PENGASSAN, NUPENG NARTO, PTD,and DAPPMA.

    “The union has resolved to recall its disengaged personnel for five days to give the Federal Government’s team the opportunity to conclude its process of paying marketers the full outstanding of N800 billion with the first tranche being the amount already approved by the Federal Executive Council (FEC).

    “The association has acted in good faith to avoid unnecessary hardship which could befall Nigerians during the Yuletide season and we hope that government would make good its promise to see that those issues are resolved by Friday, Dec., 14, 2018 as promised.

    “To this end, our disengaged personnel would be recalled on Monday, Dec. 10, and considering the reactivation time or hitherto shut down system, all depots with fuel stock should be fully active same day,’’ he said.

    Adewole said that the conclusion of the debts payment would curtail the continuing wastage of public funds as interest accruing on the over N800 billion debt.

    “DAPPMA depots are, therefore, advised to commence loading operations immediately and await further notification in respect of our long overdue payment,” he said.

    On Sunday, at about 8.30 p.m., DAPPAMA had directed its members to shutdown all loading operations by midnight, adding that oil marketers had disengaged employees due to their inability to pay salaries.

    It said that the Association took a bold step to stop the financial hemorrhaging of its members by the painful disengagement of its loyal workers after over three years of engaging with the government in the efforts to secure the payment of all subsidy induced debt owed marketers.

    According to DAPPMA, to avoid owing staff without any hope of pay, it is hereby agreed that since all our staff have been disengaged, all DAPPMAN member depots are not in a position to operate hence will shut down all loading at midnight

    DAPPMA said that the decision of government claiming to settle N236 billion out of the outstanding N800 subsidy arrears was not acceptable to its members, leading to Thursday, Dec. 6, meeting which ended in a deadlock.

    The association explained that the decision of government to pay the N236 billion through promissory notes was equally rejected by the oil marketers.

    ‘‘As the name suggest, promissory note is a payment instrument that is post dated. Based on this, when you approach the banks with the instrument, you don’t get the actual value on it.

    “About 30 per cent is knocked off because government will be making the payment at a later date which ties down the bank’s capital,’’’ the association said.

     

  • Fuel scarcity imminent as NUPENG backs NLC November 6 nationwide strike

    Nigerians maybe in for another unsavoury experience from next week as the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) of Saturday threw its weight behind the proposed nationwide indefinite strike by the Nigeria Labour Congress (NLC) scheduled to commence on Tuesday, November 6.

    Recall that the Federal Government on Friday obtained an order from the National Industrial Court restraining the organised labour from embarking on strike.

    The NLC, the Trade Union Congress and the United Labour Congress had, however, insisted on embarking on the strike, claiming that they had not been served with court processes.

    As a sign of solidarity, the National President of NUPENG, Prince Akporeha, insisted that since his union is an affiliate of the NLC, it would comply fully with any directive the NLC gave.

    When asked if NUPENG would join the strike, he said, “Are we not an affiliate of the NLC? Is NUPENG on its own? Of course we are with the NLC.”

    When reminded of the fact that a court had ordered unions not to go on strike, the NUPENG president said, “We are waiting for directives.”

    Attempts to get the Petroleum and Natural Gas Senior Staff Association of Nigeria on Saturday also proved abortive as its President, Mr Francis Johnson, neither picked repeated calls to his telephone nor responded to a text message on Saturday.

    The organised labour had fixed November 6, 2018 for the commencement of an indefinite strike over the failure of the Federal Government to approve the N30, 000 it is demanding as minimum wage.

    Last week, the Nigeria Governors Forum said it could only pay N22, 500 as minimum wage, a position which was rejected by the unions.

  • Baru appeals to NUPENG to shelve planned strike

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, on Friday, appealed to the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) to reconsider a 15-day ultimatum it issued the Federal Government.

    A statement issued in Abuja by the NNPC Spokesman, Mr Ndu Ughamadu, said Baru expressed concern over the possible effects the ultimatum would have on products supply and distribution chain in the country.

    The GMD stated that the NUPENG’s threat could compound the current hiccups in the supply chain over which concerted efforts are being made to bring it under control.

    He, therefore, appealed to the union to exercise patience to enable government address issues over which it had raised concern.

    NUPENG had, in a release dated Jan. 31, given a 15-day ultimatum to the government over six labour issues between some of its members and their respective companies.

    Baru urged NUPENG to maintain the harmonious industrial relations that have brought stability in the industry.

    Meanwhile, Petroleum Tanker Drivers (PTD) branch of NUPENG has assured the NNPC that it had no plan to embark on any strike action.

    According to the statement, PTD Chairman, Oladiti Salman, dismissed online claims that it issued an ultimatum to the government over the state of some roads in the country as a ruse.

    He disowned the statement which had been trending on the social media, saying ”the misinformation is a calculated attempt by mischief makers to cause panic in the country”.

  • Fuel scarcity: NUPENG confirms massive loading of PMS at depots

    The South-West Chairman of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Tayo Aboyeji, on Monday confirmed that massive loading of petrol was ongoing at different depots in Lagos.

    Aboyeji made the confirmation in an interview with the News Agency of Nigeria (NAN) in Lagos, assuring Nigerians that the current scarcity of fuel would end in the next two days.

    According to the chairman: “I am glad to tell you that the product is now available and today, being Christmas holiday, tanker drivers are waiting to collect the product.

    “Nigerian National Petroleum Corporation (NNPC) is now making use of Major Marketers Association of Nigeria (MOMAN) tank farms to distribute petrol.

    “This is to accelerate the product to different locations. As I am talking to you, our members are taking the product out of depots to filling stations across the country.

    “To make it quicker, NNPC is also using Folawiyo depot, Aiteo and NIPCO depots and I can tell you that the rate at which loading is taking place now, the crisis will soon be over,” he said.

    Atoyebi denied allegation of diversion of the product by his members, adding that such had not been reported to him.

    “To the best of my knowledge no such cases have been reported to the union.

    “It is not easy to divert the product because petroleum tankers loaded were being monitored to their destinations,” he said.

    He urged Nigerians to desist from panic buying, adding that the product was now available.

    “Nigerians should not result to panic buying now; petrol is available in depots unlike few days ago when the product was not available.

    “The product will be in all filling stations in few day’s time, so buy only what you will use and stop hiding petrol in your house, it is dangerous,” he said.

     

  • $26bn contract scam: NUPENG, PENGASSAN declare support for GMD, Baru – Official

    Unions in the oil and gas sector on Monday pledged support for the ‘transformation stride’ of the Group Managing Director, GMD, of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru.

    The Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, and the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, made the pledge in Abuja according to a statement by Ndu Ughamadu, NNPC Group General Manager Group Public Affairs Division.

    TheNewsGuru.com reports that the Minister of State for Petroleum Resources, Ibe Kachikwu, had accused Mr. Baru of flouting contractual agreements, creating a fear culture in the corporation and insubordination among others.

    However, in a reaction to the allegations, Ughamadu on Monday, said the minister’s allegations were not true as due process had been followed in the corporation’s various activities.

    Ughamadu said at a solidarity visit to the GMD, the National President of PENGASSAN, Francis Johnson, said the unions and its members considered it appropriate to rally round Baru and the NNPC Management to pledge their support.

    “The unions’ support for the GMD was based on his ability to walk his talk since assuming office last year.

    “The National body of PENGASSAN and all the NNPC in-house unions are here today to show our support for you.

    ”You have brought stability to the NNPC and we are happy today that staff morale is high. You were Chairman of NNPC Anti-Corruption Committee for over five years and that was what informed your appointment as GMD of NNPC.

    ”Today, all the bullets you are taking are on behalf of members of staff. We will continue to pray for you, God will continue to guide and shield you,” Mr. Ughamadu quoted Johnson.

    Ughamadu said the unionist called on Nigerians to be cautious of their comments on the controversy, adding that any wrong information was capable of discouraging investors from the oil and gas industry.

  • Nigeria will lose N150bn daily should PENGASSAN, NUPENG embark on proposed strike – LCCI tells FG

    The Lagos Chamber of Commerce and Industry (LCCI), has warned that the economy would lose an estimated N150 billion daily, if the proposed strike by PENGASSAN and NUPENG is not averted.

    The Director-General of LCCI, Mr Muda Yusuf, disclosed this in an interview with newsmen on Monday in Lagos.

    Yusuf said that it would not be a good development for an economy that was just emerging from recession.

    TheNewsGuru.com reports that the two unions had threatened to embark on an indefinite strike over delay in the payment of N800 billion subsidy arrears to oil marketers.

    Yusuf urged the Federal Government to engage the unions and propose a credible payment plan to settle the arrears.

    He noted that the consequences of the proposed strike would be severe because of the strategic and critical nature of the oil and gas sector.

    “It would paralyse the chain of logistics in the economy as economic activities are driven largely by road transportation, both for commuting and freight.

    “It will impact on revenue as the upstream sector would be affected as well. It would impact the power sector which is largely powered by gas,“he said.

    The LCCI boss noted that the fuel subsidy phenomenon had become a recurring distraction in the management of the country’s economy.

    “It is regrettable that government has over the years got itself entangled in a problem which should not have arisen in the first place,“ he said.

    He alleged that the country’s economy had suffered serial scandals and monumental corruption in the oil and gas sector because of the phenomenon of petrol subsidy.

    “We have consistently argued that the government should completely decouple itself from the business of importation, refining, transportation and retailing of petroleum products.

    “This arrangement has created considerable distortions and stagnated private investment in the downstream sector because these are enterprises that the private sector is best suited to manage, “he said.

    Yusuf said that government has no business fixing prices and subsidising the players.

    He said that in spite of the monumental problem the economy had from the subsidy regime, government has not taken urgent steps to put an end to price fixing for PMS.

    “The economy cannot sustain this arrangement. The current debt of N800 billion is 151 per cent of the total capital allocation for the Federal Ministry of Works, Power, and Housing in the 2017 budget.

    “It is 1,568 per cent of the capital allocation to health; it is 305 per cent of the capital allocation to Federal Ministry of Transportation; and 1,600 per cent of the capital allocation to education.

    “This raises vital questions about the optimality and efficiency of resource allocation and utilisation by government,” he said.

    He called for speedy passage of the Petroleum Industry Bill (PIB), adding that it will help to normalise the oil and gas sector.

    Yusuf urged the government to replicate the telecoms sector model in the oil and gas industry, adding that it would free resources for investment in critical infrastructures like power, roads, the railway, health and education sector.

    He stressed that the model would improve product availability, eliminate fuel queues, and create more jobs for the teeming youth in the downstream oil sector.

  • N800bn debt: Fuel scarcity looms as PENGASAN, NUPENG, others threaten strike

    N800bn debt: Fuel scarcity looms as PENGASAN, NUPENG, others threaten strike

    The nation might soon experience another fuel scarcity crisis as the Petroleum and Natural Gas Workers Senior Staff Association (PENGASAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) have served notice of a nationwide indefinite strike over the Federal Government’s inability to settle debts of over N800 billion owed oil marketers.

    The marketers are Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and Independent Petroleum Products Importers (IPPIs).

    The unions said:”Our members working with oil companies have not been paid salaries for up to nine months by marketers due to inability of the government to redeem its commitment to pay in spite of the intervention of the Vice-President, Prof. Yemi Osinbajo, and the directive given to the Minister of Finance to effect payment on or before the end of July 2017.”

    The notice of the indefinite strike has been received by the marketers, who are the employers of the unions’ members.

    A joint communiqué by the marketers after their joint National Executive Council (NEC) meeting held on Tuesday, signed by legal adviser Patrick Etim, said in the last six months, the unions “have been inundated by officials of our various Labour units operating in Tank Farms and Depots across the country that most petroleum product importers and marketing companies are owing their members backlog of salaries now up to nine months”.

    NUPENG and PENGASAN claimed that the children of their members had been sent away from school because their parents were unable to pay their fees.

    The communique reads: “The most disturbing aspect of this is that many members are now redundant as their employers are not able to operate their bank account for their operations with a potential massive job losses of our members in the oil and gas sector and other workers in the banking sector due to the growing size of this non-performing loans extended to oil marketers with a catastrophic banking system collapse looming in the country.

    “This will definitely puncture any growth gains made in the economy so far, considering that the sector will completely fail in its critical role of driving economic progress, resulting in huge job losses directly and indirectly.

    “It is factual that currently many of the oil marketing companies are owing backlog of salaries up to nine months in arrears while some marketers have started retrenchment of workers as a result.”

    Etim said the leadership of the unions said most of the marketers were planning another round of massive retrenchment of PENGASSAN AND NUPENG members.

    The marketers said: “The businesses of these marketers are gradually grinding to a halt due to the debts owed them by the Federal Government and the classification of their operating accounts by the banks crippling the ability of the marketers to trade since the first quarter of the year.

    “Most banks are planning to take over our tank farms and business empires due to inability to pay back money borrowed to import products that were still pending unpaid by government.

    “There is a need for President Muhammadu Buhari’s government to keep improving governance, especially by correcting wrongs of previous governments and making government responsible to its contracts and responsibilities.

    “For the banks, their action is to see how they can avert another round of banking system failure that could be triggered by this huge outstanding non-performing debts owed the banks by oil marketers who cannot pay because the government is yet to pay them outstanding indebtedness.

    “The Federal Government in June 2017 concluded reconciliations with the marketers and PPPRA and made a commitment to pay before the end of July 2017. This was following the intervention of the Vice President (who was Acting President at that time).

    “The reconciliation team was led by the Chief of Staff to the President and the Honorable Minister of Finance Minister.

    “Further to the reconciliation, it was gathered that the Federal Executive Council had approved the payment. However, the payment framework was said to have een sent to the National Assembly for approval and up till now there has been no feedback.

    “We gathered from reliable sources that the National Assembly claimed that they are yet to receive any of such requests from the Finance Minister.’’

    The marketers said that the first source of the N800 billion debt was the non-payment of the balance of over N300 billion under-recoveries under the importation template owed the marketers since 2015 and was provided for in the 2015 supplementary budget as well as the 2016 budgets.

    The marketers said they learnt that only about 20 per cent of the amount provided for in the budget was actually paid in August 2016 with a promise to pay the balance within three months.

    They said the second source of the debt arose because of the failure of the government and the Central Bank of Nigeria (CBN) to provide foreign exchange to banks that financed the importation of premium motor spirit (PMS) in 2015.

    The marketers said the banks used their dollar confirmation credit lines with foreign banks to open the Letters of Credit at exchange rates between N168/$ to N198/$, adding that when the Letters of Credit became due, the banks defaulted because the CBN did not provide the dollars.

    The default, said the communique, led many foreign banks to withdraw their dollar confirmation lines to the Nigerian banks.

    “ A practice which represents a major disclaimer on the credibility of LC’s from Nigeria, the only place where this is obtainable.

    “It was further revealed that following this development, the Central Bank then did the so-called intervention by providing dollars to local banks for the payment of past due letters of credit to their foreign creditor banks.

    “For reasons best known to the Central Bank and the government , they provided the dollars for these letters of credit at rates between N285/$ to N320/$ as against the N168 $ to N198/$ that was the government approved template for the LC’s.

    “This resulted in an additional N500 billion in debt. This debit balance the banks quickly passed into the account of the marketers instead of asking the Central Bank to take responsibility.

    “From investigation, the previously unpaid N300 billion and this outstanding debt of arising from the above stated circumstances have added up to N800 billion and is rising by the day as the banks are charging interest at 29 per cent per annum into the account of the marketers.

    “The effect of this is that every day total interest payable is over N635million, translating to over N19 billion in monthly interest or over N232 billion annually.

    “According to the contract between the PPPRA and the marketers, the government will pay all interest and exchange rate differential.

    “From our investigation, the increasing debt is a creation of the agencies of government and it will continue to grow like a monster eating up the stability of our financial system if it is not resolved immediately otherwise it will lead to the total collapse of the financial services sector.”