The challenges in the Nigeria oil and gas sector has remained almost intractable and virtually the same for over four decades now. Despite governments effort and intervention in providing what seems to be solutions, it is motion without movement. Increase in fuel price has become the tradition since the Abacha’s era and there is no light yet at the end of the tunnel even with the removal of fuel subsidy by this administration.
This has obviously placed more burden on families as prices of essential goods continue to skyrocket. Although the immediate past administration of late President Muhammadu Buhari had invested so much in both Warri and Portharcourt refineries with promises of making them operational, surprisingly, both refineries never did as expected. That effort which continued with this administration failed woefully without meeting the set deadlines by the Nigerian National Petroleum Company Limited (NNPCL) itself.
Security agencies are now looking into the account books of NNPCL and interim findings linked top management staff of the government oil firm to monumental sleaze. While government owned refineries remained scraps or a conduit pipe for lining the pockets of a few favoured contractors and those in government circles, Dangote refinery came in handy as a national lifeline.
In fact, many Nigerians understood how corrupt the oil and gas sector has become, but, they have not given enough thought to the bondage they have been living in before the emergence of Dangote refinery. Since the commissioning of that 650,000 barrel per day production refinery, there is palpable tension and fear among those feasting on our common patrimony that the existing fault lines and corrupt tendencies common in the mid and down stream sectors of the oil and gas will soon be exposed.
Actions and pronouncements of depot marketers, government officials and agencies point to that direction. And it is becoming one week one trouble contrived to pull Dangote refinery down. After the Nigeria Mid and Downstream Petroleum Regulatory Authority (NMDPRA) alleged that the fuel produced by Dangote refinery was of low quality, Nigerians turned to dramatise its quality with a comparison of both Dangote and NNPCL fuel in videos and skits. Those who watched the videos vividly saw that it was a smear campaign of conspiracy to kill the refinery as evidence showed that NNPCL fuel burns out faster than Dangote refinery when used in generators.
The latest attempt to muzzle the refinery into submission of the whims of subsidy cartels who have held the nation hostage was the outright challenge posed by the two unions in the sector on direct delivery of fuel to filling stations and other sundry issues cloaked as guise of refusal of the refinery to unionise staff. Labour unions in the oil and gas sector have become so complacent to the problems of ordinary Nigerians, incurable nuisance and stumbling block to growth and development.
When subsidy removal announcement was made, and the glaring attendant economic consequences staring everyone in the face, labour unions did so little to negotiate favourable mitigating welfare packages and living wage for workers. At a point when Dangote refinery has fuel in abundance, tankers under the auspices of NUPENG refused to lift the commodity leading to forced exportation to other African countries by the refinery.
In fact, nobody invests as much as $19bn in a company and folds his hands when some elements in the value chain are hell bent on sabotaging his investment. In view of the unfolding drama, Dangote rolled out 4000 Compressed Natural Gas (CNG) powered trucks to deliver fuel free and directly to marketers. According to sources, “this was initiated to cut the cost of fuel distribution, save Nigerians over N1.7trn, support 42m MSMEs and create 15, 000 jobs across Nigeria. Among other things is the reduction of carbon emission – offering a cleaner alternative to diesel powered transportation. The project will see to the establishment of a nationwide network of CNG stations to guarantee consistent supply and improve energy access.”
The audacious self-preserving logistic project of the refinery did not sit well with the unions and their backers resulting to accusations and counter accusations on both sides. The matter came to a head when the refinery relieved the appointment of over 2000 workers for registering as member of National Union of Petroleum and Natural Gas Workers (NUPENG). Every employee of a company must be loyal to retain his job. When an employer views employees to be closing ranks with competitors or antagonistic stakeholders, those involved are promptly fired. In solidarity with NUPENG, Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) has announced its stoppage of crude oil supply to the refinery.
What appeared to be a relief on dependency on oil importation and solution to the perennial problem of fuel scarcity and distribution which has adversely affected majority of lives of ordinary Nigerians has turned out to a national pain. Dangote himself must be regretting why he ventured into the business in the first place. As it stands the crisis was a well-intended plan to frustrate the patriotic zeal of those behind the birth of the refinery which some beneficiaries of the subsidy scam see as a barrier to their free lunch. Let it be known to those who deliberately create an atmosphere of tension for their selfish financial gains that the national interest will no longer be sacrificed on the altar of their greed. It should be emphasised that the international community is keenly watching and this insidious attempt to frustrate a local company with good intentions sends wrong signal.
Nigerians are beginning to pay close attention to the unbelievable audacity of labour unions in obstructing the progress of genuine investment under the cover of unionism while it dines with powers that be in the face of austerity. With the dues collected by NUPENG and PENGASSAN over the years, it never occurred to the unions to build a refinery. It never occurred to them as well to migrate from diesel powered trucks to the global currency of CNG trucks to reduce carbon emission. The fight against Dangote refinery stems from the fact that the company is here to alter the already existing exploitative tendencies.
While these groups have taken turns to discredit Dangote refinery, the crux is more of protecting their interest against the general good of the people. One thing of interest is always the manner Dangote takes its stand on every trying and provocative moments. If the unions do not want to lift or buy from Dangote, they should build their own refinery and decide how it operates. The market is already deregulated. However, a quick resolution of this brawl between the refinery and labour unions which may soon trigger-off major industrial unrest is key to averting more troubles associated with it.
Sunday Onyemaechi Eze, lecturer, Department of Mass Communication and Head, Internationalisation and Partnership, Coal City University, Enugu
