Representatives of the Nigeria National Petroleum Company and leadership of the Nigeria Union of Petroleum and Natural Gas Workers are presently meeting in Abuja to avert industrial action as a result of the seven-day ultimatum issued to the Federal Government on Wednesday by NUPENG.

NUPENG had asked the FG to compel Chevron Nigeria Limited to honour the agreement it reached with the union on June 20, 2019, saying its members would embark on strike if the agreement was not respected in seven days.

President of the Union, Williams Akporeha, told our correspondent in Abuja on Thursday that NNPC had intervened and a meeting had been scheduled.

He said, “Because of the ultimatum we issued yesterday (Wednesday), NNPC has stepped in as a mediator in the issues we raised. A meeting was scheduled and we are at the meeting venue and discussion is on now. Further directives will be issued after the meeting.”

A statement signed by Akporeha and General Secretary of NUPENG, Afolabi Olawale, on the ultimatum said, “NUPENG, with deep frustration and worries, would like to alert the general public and all relevant authorities of the blatant violation of agreement reached between Chevron Nigeria Limited and unions in the industry.

“It is public knowledge that unions in the oil and gas industry had a protracted negotiation with Chevron Nigeria Limited over 70 per cent labour manpower reduction which it (Chevron) claimed was required in view of reduction in their operations in the oil and gas Industry.

“After up to one year negotiation, brokered by Nigerian National Petroleum Corporation, NNPC; National Petroleum Investment Management Services, NAPIMS, and Ministry of Labour, it was agreed that considering the intervention of all the institutions mentioned above and the various justifications made, only 30 per cent of the labour manpower contract workers will be relieved.

‘’Of the 1,856 contract workers in the company, NUPENG has 1,120; PENGASSAN, 213; and non-unionised, 523. It was agreed that the 30 per cent reduction shall be spread in equal percentage among the three groups. “It was also agreed that union executives (NUPENG and PENGASSAN) will not be affected by the reduction, that Chevron Nigeria Limited will not in any guise change the labour manpower to service contracts.

“Unfortunately, immediately after the agreement was reached, Chevron started executing the exercise in blatant violation of the agreed terms, ostensibly to either put NUPENG in bad light as troublesome or for extinction because only NUPENG members have been exited from work, leaving behind the Non- Unionised workers and PENGASSAN members.

“From our record, over 500 of NUPENG members are being sacked. Having been pushed to the wall, NUPENG, hereby, puts all our members on red alert should Chevron Nigeria Limited and its contractors fail to honour or comply with our demands within the next seven days, we would also not hesitate to take all necessary legal options available to us, including industrial actions, to press home our legitimate demands.”

https://www.akelicious.net/nupeng-nnpc-meeting-to-avert-strike-fuel-scarcity/

abeg o make dem avert am o

In 2019 a sh#thole giant with the largest crude deposit in africa is still battling fuel scarcity when the rest of the world is talking about how asterioid was advarted from hitting the earth last week... I weep for the next generation who'd spend their lives trying to correct the wrongs of their stup#d anscestors.

Okay

Disobeying a mutual agreement by Chevron should be condemned by all but please, they should settle everything amicably because when 2 elephants fight, it's the grass that suffers

Make una no just start oooo

Does it mean these things can be resolve once and for all.

I remember when the sufferisticated ones were protesting the fuel hike/subsidy, but they are all quiet now. Not knowing it was all sycophancy.

Apart from spelling, what's the difference between NUPENG and PENGASSAN?

Dave0116:
In 2019 a sh#thole giant with the largest crude deposit in africa is still battling fuel scarcity when the rest of the world is talking about how asterioid was advarted from hitting the earth last week... I weep for the next generation who'd spend their lives trying to correct the wrongs of their stup#d anscestors.

We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.

alphaNomega:
Apart from spelling, what's the difference between NUPENG and PENGASSAN?

nupeng...tanker drivers, oil rig workers, pipeline workers, etc.

Pengassan...senior staff eg clerical, engineers, etc...in the petroleum industry.

If dem won strike make dem strike jare make hear word jor!

Naijafull19:


We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.

The one they remove and price changed from 97 to 145 nko.
Explain biko

Naijafull19:


We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.
T

Remove fuel subsidy totally and deregulate the downstream... Let anybody but and sell ... Wat how our problem solve ... We will eventually buy fuel for 50naira per litre due to competition...

AT THE BOLDED

If petrol is produced in Nigeria and the price still have to stay the same as imported, what's the essence?

2. Nigerias not even one person has any problems of paying 200 Naira for petrol.

I remember during the 2015 fuel scarcity how we bought petrol for 500 Naira on black market for more than one month and still could not find it

If the public is made to buy available petrol for 200 Naira, the prices of some goods will increase by less than 5% but will not be any problem considering that one is happy for the availability of his needs.

The fuel story of scarcity that occurs in Nigeria every single year is simply one part of the ways the Nigeria government and its agencies are stealing from the public purse

Nigerians can always adjust to extra payment for services well rendered we all know this. Our problem is rich business people collaborating with corrupt public servants to sale the populace bad products and services for ABNORMAL profit

Nigerians can pay power
Nigerians can pay for water
Nigerians can pay for good roads
Nigerians can pay for security

They are simply keeping the people in the dark for the reasons best known to them



[quotqe author=Naijafull19 post=80835014]

We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.

[/quote]

AT THE BOLDED

If petrol is produced in Nigeria and the price still have to stay the same as imported, what's the essence?

2. Nigerias not even one person has any problems of paying 200 Naira for petrol.

I remember during the 2015 fuel scarcity how we bought petrol for 500 Naira on black market for more than one month and still could not find it

If the public is made to buy available petrol for 200 Naira, the prices of some goods will increase by less than 5% but will not be any problem considering that one is happy for the availability of his needs.

The fuel story of scarcity that occurs in Nigeria every single year is simply one part of the ways the Nigeria government and its agencies are stealing from the public purse

Nigerians can always adjust to extra payment for services well rendered we all know this. Our problem is rich business people collaborating with corrupt public servants to sale the populace bad products and services for ABNORMAL profit

Nigerians can pay power
Nigerians can pay for water
Nigerians can pay for good roads
Nigerians can pay for security

They are simply keeping the people in the dark for the reasons best known to them

Naijafull19:


We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.

Naijafull19:


We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.

let them just remove this damn subsidy make we rest jare, even common Chad & Niger no dey subsidy fuel

THE DULLARD IS ABOUT TO INCREASE THE FUEL PRICE

Let the strike begin jo. Shutdown the modafokn country

Naijafull19:


We are still struggling because we insist on price controls for the petroleum industry.

Basically, fuel is supposed to be costing N200 and above per liter. But government forces marketers to charge N145 and pays the difference between that and the actual price which varies from month to month depending on the world oil prices

As a result, the oil compnaies cannot make a profit (and result to making false subsidy claims because that's the only way they can earn enough cash...also smuggling)...and this means that

1.We cannot build more refienreis, and maintain exisiting ones adequately..because who is going to sell refined products like petrol below production costs?

2.We cannot attract foregin investment because no one wants to come and find it hard to make a profit.

3.Jobs are scarce, and oil companies like Chevorn have to sack workers to keep their heads above water.

The solution is simple. Remove subsidy, allow prices to rise and fall according to the market. If it hasn't devastated the economies of Benin , Niger and Cameroon who pay N300 and above per liter of fuel...I doubt it would affect our economy.


To anyone who wants to abuse me...if you are running a business, and you buy things at N2000 and you want to sell at N2700 making a profit of N700, and government comes in, forces you to sell at N1800 and pays you N150 as subsidy, would you agree?

That is how we have been treating our petrol sector...and that is why we have issues with supply, and jobs.

And you think if enough money is available to these rare breed of vampires, Nigeria would be like Dubai abi? Yes or No?

Tomorrow they'd tell you they want to hike electricity costs because they spend exactly what to generate power? Especially the hydro stations that use water.

Lastly, Government mustn't build refineries: individuals and companies should be encouraged; so the cost
of ferrying these fuels and other factors related to importation that jack up the costs can be eliminated.

But then what do I know?

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galadima77:


And you think if enough money is available to these rare breed of vampires, Nigeria would be like Dubai abi? Yes or No?

Tomorrow they'd tell you they want to hike electricity costs because they spend exactly what to generate power? Especially the hydro stations that use water.

Lastly, Government mustn't build refineries: individuals and companies should be encouraged; so the cost
of ferrying these fuels and other factors related to importation that jack up the costs can be eliminated.

But then what do I know?

Good morning...has been busy around here..

Private individuals have been given refinery licences since GEJ was in power...the problem is, subsidy means that you would refine fuel and sell it at a loss to marketers. And since marketers too are selling at a loss...anyone running a refinery in Nigeria, private or otherwise is going to be broke.

Yes, Dangote....until you realize that Dangote took loans to build his refinery. At the end of the day, either government deregulates, or Dangote sells his priduce abroad.

Truth is, subsides does not allow anyone make a profit....even NNPC. You cannot be importing fuel at N200 and selling at N145 per liter...and government pays you the difference. You won't make a profit at all..

Same for refining fuel. At least, it costs N150 to refine one liter of fuel at home. And you expect refiner to sell the fuel at N145 or less?? Where would he find money to pay staff and make upgrades?

Aboguede:
AT THE BOLDED

If petrol is produced in Nigeria and the price still have to stay the same as imported, what's the essence?

2. Nigerias not even one person has any problems of paying 200 Naira for petrol.

I remember during the 2015 fuel scarcity how we bought petrol for 500 Naira on black market for more than one month and still could not find it

If the public is made to buy available petrol for 200 Naira, the prices of some goods will increase by less than 5% but will not be any problem considering that one is happy for the availability of his needs.

The fuel story of scarcity that occurs in Nigeria every single year is simply one part of the ways the Nigeria government and its agencies are stealing from the public purse

Nigerians can always adjust to extra payment for services well rendered we all know this. Our problem is rich business people collaborating with corrupt public servants to sale the populace bad products and services for ABNORMAL profit

Nigerians can pay power
Nigerians can pay for water
Nigerians can pay for good roads
Nigerians can pay for security

They are simply keeping the people in the dark for the reasons best known to them

Well, production of fuel in Nigeria is problematic because government is subsidising fuel.

A subsidy works this way. I'm selling yams at N800 after buying them at N500 a piece. Govt steps in and tells me to sell my yams at N300, while paying me a subsidy of N200.

I'll get broke...unless i smuggle my yams to a neighbouring country where there is no subsidy or I sell on the black market.

Same for our fuel indistry. Govt controls prices in the name of subsidy...which leads to difficulties in making profits...which is why our refineries are all in a mess (That and corruption...I'm not blind...I had a relation who works in the industry...and his tales of the mess in our refineries are very sad listening)....

In short...you cannot run good economies, or businesses by controlling prices. Marketers of fuel are in it for the profit. They ain't Mother Theresa.

slamstanlee:

The one they remove and price changed from 97 to 145 nko.
Explain biko

Let's start by pointing out that for over 10 years , 80% of the fuel we use in Nigeria has been imported (and even if our refinereis were working at full capacity...the last one was opened in 1988...since then the populaiton and car and generator usage has jumped up).

1.In 2012...price of fuel was N65, landing cost //import cost was N99 per liter...and rising . Sunsidy was n33 per liter

2.Government in 2012 proposed raising the price to N140, which would end subsides, enabling the savings realised to be used for other things. Meanwhile, the profits earned could be reinvested in the fuel industry...leading to new refienreis, among other things (At least 3 new refienreis were in the idea stage, as was Dangote).

3.Nigerians said no.

4.Government reduced prices to N97...meaning subsidy payments were N2 per liter (as at 2012). The N31 per liter saved was used for things like SURE-P .

5.However, import costs kept on rising , till by 2015...it was N132 per liter to import one liter of fuel. Meanwhile , fuel was N87 per liter. And due to falling oil prices ($30 by 2016 January), Government was finding it diffuclt to pay subsdies which had jumped up from N2 per liter in Feb 2012 to N50 PER liter in 2015.

Let's let that sink in for a moment.

Oil prices 2012: $100 and above
Import cost of one liter of fuel Jan 2012 : N99 per liter
Cost of fuel N97
Subsidy : At least N2 per liter


Oil prices 2016 : $30 per liter
Import cost of one liter of fuel Jan 2016 : N132 per liter
Cost of fuel N87
Subsidy : N45 and above.

Note that fallign dolalr revenues were having an impact on the value of the naira as well...hence the rise in import prices despite the fall in crude oil prices....we no longer had the dollars to raise the value of the naira...so the naira fell.

6.Government of Bubu raised prices to N145, ending the subsidy temporarily (you will soon see why I say that)....and saving some cash.

7.By 2018....

Oil prices $60 and rising
Import cost of fuel : N180
Cost of fuel : N145
Subsidy: N35 and above.


So, either

1.Buhari continues with the status quo...which is hard...especially as oil prices at their current state are not enough to raise enough revenue for Nigeria (Nigeria needs oil at $139 per barrel as at 2018.....to run a budget WITHOUT BORROWING).

2.Buhari stops subsidy, and saves N2 trillion naira yearly (which is the aprpoximate estimate of what we spend subsidsing fuel)>

Naijafull19:


Let's start by pointing out that for over 10 years , 80% of the fuel we use in Nigeria has been imported (and even if our refinereis were working at full capacity...the last one was opened in 1988...since then the populaiton and car and generator usage has jumped up).

1.In 2012...price of fuel was N65, landing cost //import cost was N99 per liter...and rising . Sunsidy was n33 per liter

2.Government in 2012 proposed raising the price to N140, which would end subsides, enabling the savings realised to be used for other things. Meanwhile, the profits earned could be reinvested in the fuel industry...leading to new refienreis, among other things (At least 3 new refienreis were in the idea stage, as was Dangote).

3.Nigerians said no.

4.Government reduced prices to N97...meaning subsidy payments were N2 per liter (as at 2012). The N31 per liter saved was used for things like SURE-P .

5.However, import costs kept on rising , till by 2015...it was N132 per liter to import one liter of fuel. Meanwhile , fuel was N87 per liter. And due to falling oil prices ($30 by 2016 January), Government was finding it diffuclt to pay subsdies which had jumped up from N2 per liter in Feb 2012 to N50 PER liter in 2015.

Let's let that sink in for a moment.

Oil prices 2012: $100 and above
Import cost of one liter of fuel Jan 2012 : N99 per liter
Cost of fuel N97
Subsidy : At least N2 per liter


Oil prices 2016 : $30 per liter
Import cost of one liter of fuel Jan 2016 : N132 per liter
Cost of fuel N87
Subsidy : N45 and above.

Note that fallign dolalr revenues were having an impact on the value of the naira as well...hence the rise in import prices despite the fall in crude oil prices....we no longer had the dollars to raise the value of the naira...so the naira fell.

6.Government of Bubu raised prices to N145, ending the subsidy temporarily (you will soon see why I say that)....and saving some cash.

7.By 2018....

Oil prices $60 and rising
Import cost of fuel : N180
Cost of fuel : N145
Subsidy: N35 and above.


So, either

1.Buhari continues with the status quo...which is hard...especially as oil prices at their current state are not enough to raise enough revenue for Nigeria (Nigeria needs oil at $139 per barrel as at 2018.....to run a budget WITHOUT BORROWING).

2.Buhari stops subsidy, and saves N2 trillion naira yearly (which is the aprpoximate estimate of what we spend subsidsing fuel)>

I laugh. Google NNPC fraud. Again read about why our refineries are not working then come back lets discuss

slamstanlee:

I laugh. Google NNPC fraud. Again read about why our refineries are not working then come back lets discuss

That's easy...they are not profitable.

Subsidy means that you sell fuel below the production cost, and then government gives you the difference. Which doesn't allow for a profit., and which means...no money for new refieneries, or for upgrades to exisitng refinereis.

Plus, fraud in NNPC has a lot to do with the fact that it is a government run enterprise. Free money, not worked for= fraud.

Add the fact that subsidy prevents NNPC from being profitable. Hence, they engage in cooking the books to keep their heads above water.

The truth is, you Nigerians want cheap things. There is nothing wrong with that. The problem is, we aren't earning enough to keep things cheap.

I should add that I don't like making the argument for removing subsidy. I am realistic. I know there would be pain and suffering. But that would be temporary, when the benefits kick in, it won't matter anymore.


P:S
Even if our refinereis were working at full capacity, they won't be able to meet daily need of PMS. The newest of the 4 refinereis was built in 1988. That's 31 years ago. Since then, the amount of PMS we consume has increased. beyond the potential domestic capacity.

Why is everyone talking about subsidy? Well!! Having read carefully I think this is just an internal crisis between employees and employer with the intervention of the employees union. Shikena