NUPENGASSAN explains support for deregulation

The Nigerian Union of Petroleum and Natural Gas Workers, and the Petroleum and Natural Gas Senior Staff Association of Nigeria (NUPENGASSAN) at the weekend explained their backng for the deregulation of the downstream sector of the nation’s oil sector.

The two unions said their support derived from the immediate and future gains such as petroleum product availability to power the ailing economy.

Francis Johnson, president of PENGASSAN,who spoke with BusinessDay at the weekend, said the policy would free the downstream sector from the apron strings of a cartel and allow wider participation.

In a communique jointly issued by the two unions after their National Executive Council Meeting (NEC) in Calabar, Friday, they however, demanded that the Federal Government engage industry stakeholders to work out a clear direction on how to reinvest the gains into the economy to cushion the effect of the price hike.

According to the unions, there is an urgent need for a paradigm shift and a new direction in the management of new investment and income in the oil and gas industry.

To achive this, the oil workers’ unions noted that the government must ensure optimal performance of the existing refineries and also put in place machinery for the construction of new refineries in the country to ensure adequate production for domestic consumption and possibly export.

They also demanded an immediate commencement of negotiation of minimum wage for workers across all cadres.

The unions asked the government to engage critical stakeholders for towards providing a road map with timelines of the infrastructures intended to embark upon with the proceeds from this price modulation to cushion the harsh effects of the new direction.

The immediate reconstitution of the board of PPPRA and PEF for the management of the new price regime.

The reconstitution and the re-strengthening of relevant agencies such as Standard Organisation of Nigeria (SON), DPR and the Nigeria Customs and Excise Department to prevent the abuse of the new framework of PMS supply and distributions.