Oil subsidy: PENGASSAN seeks reimbursement to NNPC

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on the Federal Government to reimburse the Nigerian National PetroleumCorporation (NNPC) for expenses the corporation incurred from payment of subsidy to the marketers.

Arising from its National Executive Council (NEC) meeting in Warri, Delta State on Friday, the PENGASSAN said that NNPC has continued to shoulder theresponsibility of providing products to close gaps created by the withdrawal of other marketers owing to non-payment of subsidy claims from 2015 to 2017.

In a communique signed by the PENGASSAN President, Comrade Francis Olabode Johnson and the General Secretary, Comrade Lumumba Okugbawa, the union stated that the extra burden absorbed by NNPC is depleting the corporation’s finances andconsequently hampering effective discharge of its statutory obligations.

The senior staff trade union therefore called on the government to reimburse the huge payments incurred within the period under review.

It expressed worries over the delayed payment of subsidy and debts owed oil marketers and therefore called on the Federal Government to come to the tableand resolve the differences as this will help in averting loss of jobs in the oil and gas industry.

On the Petroleum Industry Bill (PIB), the PENGASSAN commended the 8th National Assembly for breaking the jinx of passing into law the Petroleum Industry Governance Bill (PIGB) but call on the lawmakers toexpedite action on the Petroleum Industry Administration Bill, the Petroleum Industry Fiscal Bill and the Petroleum Host Community Bill to enable the PIB to deliver full benefits of the intended Oil and Gas Reforms.

The Association demanded that the legal framework in the bill should allocate a percentage of the production by International OilCompanies (IOC)’s operating in Nigeria for refining in the Country through a policy that would compel them to build Refineries in Nigeria.

“This is in support of the proposal of the Federal Government as announced by the Honourable Minister of Petroleum (State), Dr Ibe Kachickwu at the last NigerianInternational Petroleum Summit (NIPS) in Abuja,” it stated.

PENGASSAN, which described as worrisome and embarrassing that Nigeria remains the only OPEC member country importing fuel and the largest importer in the world, implored the Federal Government to declare a state of emergency in the nation’s refineries as the only solution to Nigeria’s unending fuel importation and crisis.

According PENGASSAN in the communiqué, “The NEC-in-Session commends NNPC Management in its efforts of negotiating with Investors and Financiers to carry out complete rehabilitation of the nation’s refineries. The NEC-in-Session supports it and is always ready to collaborate with NNPC Management towards the achievement of this initiative.

“The NEC-in-Session frowns at the directive of the House of Representatives ad-hoc committee investigating the state of the nation’s four Refineries to halt the process of their proposed Turn-AroundMaintenance (TAM) by the Government/NNPC. The House Committee should provide animmediate alternative to the good proposal; otherwise the process should be allowed to continue in the best interest of the Country.

“The NEC-in-Session urges the Federal Government and NNPC to expedite the process ofrehabilitating the Refineries through the Investors and Financiers.

“The NEC-in-Session also notes the positive impact of the planned modular and other Private Refineries in the industry and theeconomy as a whole. The NEC-in-Session appeals to the FederalGovernment to encourage Private Sector Participation in this regard.

The union frowned at the anti-union posture by indigenous companies and marginal field operators, and therefore resolved to resist any management that infringes on the workers’ Rights to Freedom of Association and Lawful Assembly.

The PENGASSAN condemned the excessive use of force by security agencies against our armlessmembers during picketing and other legitimate industrial actions, calling on the Army and the Police to call men and officers to order and refrain from harassing innocent and armless workers, especially PENGASSAN members.