Fg Bows To Labour Demands, Reduces Fuel Price, Vat

HAVE You GUYS HEARD THIS!!!

http://www.punchontheweb.com/Articl.aspx?theartic=Art200706192184393

The Federal Government on Monday moved to avert a nationwide strike by bowing to the demands of the Nigeria Labour Congress and other unions.

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Sam Adeko
Joint Press meeting of Labour Leaders on the impending strike

The government reduced the pump price of the Premium Motor Spirit (Petrol) from N75 to N70 and directed that the price of kerosene be reverted from N64 to N54. The price of diesel had been fully deregulated.

It also reverted the increase in Value Added Tax from 10 per cent to the old rate of five per cent.

With the concessions, which were announced by the Secretary to the Government of the Federation, Ambassador Baba Gana Kingibe, the NLC, Trade Union Congress and Joint Action Forum may call off their planned nationwide strike.

Labour had before the announcement by Kingibe said on Monday that the strike would begin on Wednesday.

The SGF said at a news conference in Abuja at about 9.30pm after a meeting with the President of the NLC, Mr. AbdulWaheed Omar, and other union leaders, that the government had also agreed to implement a 15 per cent salary increase with effect from January.

On the sale of the Port Harcourt and Kaduna refineries, Kingibe said the government asked the labour unions to “go and discuss with the Bureau for Public Enterprises.”

He said, “We have asked the labour leaders to discuss with the BPE on contentious labour issues associated with the sale of refineries and Egbin Thermal Power Plant.”

Kingibe added that the government’s decision to make concessions was not borne out of threats by the labour unions.

He said, “The government is not insensitive to the plight of Nigerians.

“These decisions were taken by the government because it felt they were light and not in response to labour.

“The government invited the NLC and TUC to a meeting this morning and was going to make these decisions known to them but they failed to turn up. They went ahead to make the announcement about their strike.

“We resumed negotiation this afternoon and we conveyed the position we would have told them in the morning. We will resume this negotiation later this (Monday) night or tomorrow morning (Tuesday).

“The essence of the negotiation was to accommodate each other and arrive at what will be mutual to each other.”

A statement by the Special Adviser to the President on Media, Mr. Segun Adeniyi, said the concessions underscored Yar’Adua’s inaugural address on May 29, 2007.

The statement reads in part, “Government wishes to assure all Nigerians that it is well aware of the hardships being currently experienced by ordinary people in the country and is fully committed to doing everything possible to improve their living conditions.

“This resolve was underscored by the President in his inaugural address on May 29 this year when he said, ‘Let us join together to ease the pains of today while working for the gains of tomorrow.’”

The labour leaders refused to respond to government overtures on Monday night. They said they would review the government offers on Tuesday.

The Independent Petroleum Marketers Association of Nigeria and the National Association of Road Transport Owners have already indicated that they would no longer participate in any nationwide strike.

The two unions said they were pleased with the decisions of the government.

The leader of the Joint Negotiating Team, who is also the President of NARTO, Alhaji Lawal Isa, said in Abuja, “We (NARTO and IPMAN) are set to call off the strike.”

The NLC, TUC and JAF had told journalists on Monday in Abuja that they had no option than to embark on a strike since all entreaties to the Federal Government, including a letter to President Umaru Yar’Adua, yielded no positive response.

The NLC, the TUC and JAF also directed that airports, seaports, banks, filling stations, offices and markets must be shut during the strike.

Besides, transporters and schoolchildren were advised to stay at home for their safety.

The NLC had on June 5, 2007 given the government a 14-day ultimatum to reverse the increases in the prices of petroleum products and the Value Added Tax.

They also threatened to embark on strike if the government failed to nullify the sale of the Port Harcourt and Kaduna refineries as well as the Egbin Power Plant in Lagos to private entities.

Apart from this, they asked the government to implement a 15-per cent salary increase for workers with effect from January 1, 2007.

A meeting between the government representatives and the labour leaders on Friday over the contentious issues ended in a deadlock.

Addressing journalists after the Monday meeting the President of the NLC, Mr. Abdulwaheed Omar, said that the congress tried its best to prevail on the Yar’Adua government to reverse the anti-people policies of the Olusegun Obasanjo administration.

Omar recalled that after the meeting between the government and the labour leaders, the Nigerian National Petroleum Corporation said that a litre of fuel would still be far above its current price.

He said, “The NNPC arrogantly went on air to say that fuel prices will rise to N230 per litre and that even if Nigerians go on strike and mass protest for 10 years, nothing will change.

“What we witness is a government desperately trying to claim paternity of the Obasanjo regime’s policies. Nigerians can no longer continue to suffer in the midst of plenty. They can no longer live under sub-human conditions.”

Omar warned that any bank, filling-station or office that defied the directive of the NLC would be responsible for its action.

He advised parents and guardians not to send their children and wards to school as teachers had given commitment that they would not teach.

He said, “Schoolchildren should, therefore, not be allowed to roam the streets as that may be unsafe.”

Despite the Senate on Monday said it would hold talks with the labour leaders at the NLC headquarters in Abuja at 10am on Tuesday(today).

The Deputy Leader of the Senate, Senator Victor Ndoma-Egba, made the Senate position public at a news conference in Abuja.

Ndoma Egba said, ”We are here to let you know that the Senate feels very concerned about the labour crisis. We are meeting at the leadership level to discuss the demands of labour and we have agreed to meet with labour tomorrow(today) by 10am.

“Apart from that, we want to register our gratitude for the window of opportunity given by labour in the resolution of this crisis by extending their deadline by another day. We are thankful to them and we hope that we will fully utilise that window to avert the impending crisis.”

The Speaker of the House of Representatives, Mrs. Patricia Etteh, told newsmen in Abuja that the House and the government were working on ways to resolve the impasse.

She said, “The government and the legislature are putting heads together to ensure that the stike does not go on. They should give us a chance to see how we can iron things out amicably. I believe in dialogue; there must be a meeting point.”

This good. That means we now ve a govt than can concede to the wish of the people. Qudos 2 labour, qudos 2 govt.

Musa is a listening president afterall. Slow to speak but powerful in action, but why not 65 naira? Anyway, we are used to this.

I agree that Levi should be sacked, maybe he should go back to the media and learn how to adress national issues. Why it that when this peolple attain certain heights in government, they tend to forget their past, i mean look at somebody like Levi, its a pity sha!

Lets hope that this is the first sign of a responsible govt. so far so good.

@kokoA
what did Levi say? I don't like that guy at all.

Why notrevert the price back to 65 naira.Still the same strategy of Obasanjo regime.I hope the strike continues.The VAT issue also should be reverted and not suspended.

Celtel just sent me a text saying theyve reversed their tarrif according to tge VAT reversal or suspension. This is a good PR move by  yaradua. Problem is it'll only be N70 in lagos and abj. In other parts of the country it goes for N100 and more. Lets wait and see.

I never got an sms from celtel that the charges were increased in the first place so what gimmick are they trying to play now?

Nigeria and its whala, only God would deliver us ohhh . but they should also take note that two wrongs don't make a right.

I think the federal government should use this opportunity to strengthen its tax laws. Everybody should pay taxes. Income tax and not by increasing VAT. In fact I think right now, the government should even go ahead to remove the 5% VAT from good that cannot be vatted.

I think the fuel price reduction was a mistake though and they will still increase it again. Please lets get done with this fuel price wahala once and for all. Shebi we're heading for N100/litre. We have to stop beating about the bush and do this thing once and for all.

We are not 'heading' anywhere, the inefficiencies and corruption in the system is what is causing fuel price increases, in Canada gasoline is sold for ~100/litre due to high taxes and other issues and in any US states its cheaper than that, Nigeria doesn't necessarily need to increase fuel prices, remove inefficiencies and corruption and things will improve.

Ajuonoma or whatever his name is should be fired, if he truly said 230/litre is the price at which increases will stop. He is a buffoon for saying such.

on the issue of 'income taxes' a very small percentage of Nigerians earn a formal/regular salary that income tax can be deducted from, thus inevitably sales tax on products used by everyone remains the best way to ensure that everyone pays some tax. what the exact figure should be is up for debate.

for availability issues and profitability (helping new refiners set up) the N5 increase should be accepted.

The news reads that the VAT is being suspended and not anulled entirely, so in this case, they mmay call it up one day.
I wish NLC goes ahead with the strike action and insist that fuel price must come down to N65 and VAT increment totally stooped and must be static on 5%.

In as much as I'm happy about the said reduction,I'm stil inclined to believe that it is a "greek" gift.If not why not reduce it to N65.I believe that YarAdua's govt will be a lot less harsher on the masses than its predesessor butIt cannot be totally different.Afterall Baba is stil runnin the show.

jubilating for a future death!! poor Nigerians  they have forgotten how they even come to this far with the pump price. very sad!!

its so hard to satisfy Nigerians sef! scam???  there is always a conspiracy theory! 

I recommend that Levi should be sacked for the reckless statement he made on air.
The Federal Gov. should take the price down to 65 naira or no deal.

I don't know why we should be so excited about the reduction after all he is not the one that increase it so why can't he have the courage to reverse it back to the old rate of 65 naira, we have passed this route before, Obasanjo strategy