Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) yesterday faulted the claim by President Goodluck Jonathan that Nigeria is winning the war against oil theft, coupled with improved foreign investment in the sector.
The Union noted that in the last two years, there had been no new investment in the oil and gas sector by the International Oil Companies (IOCs), because of the none passage of Petroleum Industry Bill (PIB) and “inadequate effort” to reduce oil theft and kidnapping of oil workers.
Besides, PENGASSAN has lent its’ voice against the implementation of new pricing regime of electricity and attendant tariff increment by Nigerian Electricity Regulatory Commission (NERC), even as Nigerians groan under an irregular supply of the commodity nationwide.
Reacting to the Presidential Media Chat on Monday, PENGASSAN President, Babatunde Ogun observed that the situation in oil sector was gloomy than the rosy picture the President painted on Sunday, adding that there is, in fact, “massive divestment from Nigeria to more investment friendly nations in Africa because of inadequate security of personnel and infrastructural assets.”
What consequently awaits Nigeria is that “about 20,000 jobs will be lost by the first quarter of 2014 if divestment continues at this rate.”
Ogun advised that Jonathan should rather halt the situation now and not wait until the cancer eats up the economic fabric of the country and natural inheritance.
“The President should have the courage to ask for help from outside our shores if help cannot come within,” he said.
On electricity tariff, PENGASSAN further called on the government to allow its’ road map for power generation and distribution, to fully come on stream before contemplating additional charge to consumers of the product.
Ogun said: “Having listened carefully to the rationale adduced for these increases in tariff by Dr. Sam Amadi, the Chairman of Nigeria’s Electricity Regulatory body to that tariff must increase since the Multi Year Tariff Order (MYTO) took effect from June 2012, and it provides for periodic increment in electricity tariff per kilowatt in Section 76 of the Electricity Power Reform Act, 2005
“That though the last regulation and review of electricity pricing took place in 2012 and it is expected that this regime will remain constant till 2017, when another and fresh round of regulation is expected to take place, inflationary rate in the country has made it expedient that there should be increase in tariff
“The increase in tariff, in spite of shortfall in service delivery is in the best interest of Nigerians on the long run as this would encourage more investors to come into the sector and provide life more abundant as being witnessed in the Telecommunication industry
“His argument however flies when considered with the objective realities on ground. In a recent meeting with the media, the Minister of Power, Mr. Chinedu Nebo informed that the Federal Government has expended over $3.5billion yearly in the last 10 years for the provision of electricity to Nigerians.
“It is also noteworthy that the same Federal Government, while issuing license to Independent Power Producers two years ago charged them to generate enough electricity and supply to the national grid, while also revealing that consumers could pay higher tariffs on two fronts via the fixed cost and energy cost, i.e. cost per kilowatt hour, private or corporate.
“We are equally of the opinion that corruption has been at the root of Government’s inability to generate enough electricity for its people, likewise many other areas of failure in government. We therefore charge the government to be more committed in its fight against this canker worm and to do everything possible to give Nigerians a new lease of life and hope in the survival of this nation and its most disadvantaged population.”
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