Petroleum and Natural Gas Senior Staff
Association of Nigeria, have threatened
to shut down the country should the
Federal Government carry out its plan to
sell national assets to augment revenue
shortfall.
Also, the Trade Union Congress on
Sunday said it would join PENGASSAN to
shut down the country if the
government remained adamant on its
plan to sell some national assets.
PENGASSAN, in a statement on Sunday
by its National Public Relations Officer,
Mr. Emmanuel Ojugbana, said the
government should look into other ways
to increase its revenue base while
plugging loopholes and leakages in
government’s finances.
The union, which described the plan to
sell the national assets as a self-
destructive move for Nigeria, said, “The
plan meant to solve short-term financial
obligations is targeted at handing over
our collective wealth to a few
individuals and further impoverish the
rest of our countrymen and women.”
It said government at all levels should
pump money into the economy through
the execution of capital projects and
payment of workers’ salaries to revive
the economy.
PENGASSAN said it would not sit back
and watch the sale of national assets,
especially those in the oil and gas
industry, such as the Nigeria LNG that
had become a huge revenue-earner for
Nigeria; refineries and shares in the
upstream oil and gas JV operations being
shared among those in power and their
cronies.
It said, “Any attempt to sell these
national assets will be met with stiff
resistance from the association, as
PENGASSAN will galvanise every
support, including that of our sister
union and labour centres to shut down
this country by ensuring that every
activity in the oil and gas sector is
brought to a complete halt.
“Some opportunists in the clothes of
businessmen and short-sighted
politicians had earlier advocated the sale
of public assets such as the NLNG, four
state-owned refineries, Nigeria’s stakes
in the Africa Finance Corporation, the
nation’s airports and reduction of
government’s shares in upstream oil
joint venture operations and this was
approved by the National Economic
Council.”
Reacting to the recent approval of the
sale of the national assets by the NEC,
Ojugbana said the sale of the assets
would further compound the economic
and security problems in the country.
He added, “They should tell us what will
happen after the recession if we have
sold the assets to greedy individuals.
Will the country go cap in hand begging
those individuals who bought the assets
and borrowing from them?”
He said the plan “is ill-timed and
unwarranted as it does not serve
national interest,” adding that no nation
could develop, survive or feel secure
after selling all its national assets.”
PENGASSAN stated, “Doing this will
further mortgage the future of our great
country in the hands of few cabals.
These individuals are just looking for
advantage to further loot the country
through illegal acquisition of the
national assets as in the case of various
oil blocks held by a few powerful
Nigerians.
“The sale of national assets is not only
surprising but also embarrassing for a
nation experiencing economic recession.
The proponents of the sale of national
assets are those who have been actively
involved in the operations of the
nation’s economy in the past. They were
part of those responsible for the
country’s current economic situation.”
According to him, such sales in the past,
including the power and steel sectors
privatisation, are just a shift from public
monopoly to private monopoly, which
has further worsen those sectors.
“It is, therefore, the candid position of
PENGASSAN that such a plan should be
thrown into the trash bin. Government
should continue to seek better ways to
address the present economic challenges
and reduce areas of wastage. The long
overdue calls for diversification of the
economy should be driven with all
seriousness; more action is required
urgently than propaganda mechanism,”
he said.
The President of the TUC, Mr. Bala
Kaigama, said on the telephone on
Sunday that the Congress would
collaborate with the two major unions in
the oil sector because the planned sale
of the assets was flawed.
He noted that if those who invested in
the assets had sold them, the current
administration would not have met
them.
Kaigama said, “We will solidarise with
them. You cannot sell vital assets like
that. You don’t. If those who invested in
the assets had sold them, would they
have met them?
“Of course, these business people, who
are saying sell and sell, let them pay the
appropriate taxes. Those people who are
not paying the appropriate taxes, let
them pay the appropriate taxes and
money will accrue to the Federal
Government.
“TUC will solidarise with NUPENG and
PENGASSAN to shut down the country.”
The Nigeria Labour Congress, on its
own, said while it would take necessary
steps on the issue, it had not taken the
decision to shut down the country.
The General Secretary of the NLC, Dr.
Peter Ozo-Eson, stated on Sunday that
the congress would inform Nigerians
when the decision was taken.
Ozo-Eson added, “No. We are a
democratic organ; we have our
processes. We have not taken a decision;
when we take a decision, we will let the
country know.
“If individual unions have announced,
we have no quarrel with that. We are
opposed to it (assets sale) and we will
take the necessary steps. We have not
yet taken that decision of shutting down
the country or whatever. We will inform
the nation when we take that decision.”
Selling national assets signifies panic,
says don, activist
Also, a frontline economist and
Executive Chairman, African Centre for
Shared Development Capacity Building,
Prof. Olu Ajakaiye, has said selling
national assets because of the current
economic recession in the country will
amount to taking a panicky measure.
In an interview with one of our
correspondents on Sunday, Ajakaiye said
rather than selling national assets in a
hurry, the government should undertake
a comprehensive study of the funding
gaps required to bail the nation out of
recession in order to determine the best
step possible.
He stated, “The highly publicised
Medium Term Expenditure Framework
and similar basically financial
programming tools do not contain
specific screened, selected and
prioritised projects and programmes to
which Nigerians can relate. Resource
gap determined from such tools can be
dangerously misdirecting and can create
unnecessary panic. Sale of assets in a
panic situation like was done carelessly
during the late 1980s should not be
repeated.
“If the resource gap includes recurrent,
sale of assets to close such gap will be
inappropriate because it is tantamount
to consuming capital and that will be
irresponsible. Moreover, what happens
when the proceeds of the sale is
exhausted? What are we going to sell to
pay the next salary, for example?
“If the resource gap is exclusively due to
bona fide capital projects that have been
properly screened, selected and ranked
in order of priority based on their direct
and indirect contributions to national
development goals, alternative financing
options should be carefully considered.
The first step is to surgically consider
cutting excesses and illegitimate as well
as unreasonable components of
recurrent expenditure.”
Ajakaiye said the personnel cost
component of government should be
cleaned up by sustaining and
generalising ongoing application of
technology to eliminate all forms of
impurities in the system including
‘ghost’ workers.
He argued that no attempt should be
made to retrench workers, saying this
would be inconsistent with the goal of
reducing unemployment and legitimately
reflating the economy.
He added that salaries and allowances of
political and public office holders should
be drastically reviewed downwards.
Ajakaiye said, “This is consistent with
the slogan of Change Begins With Me.
Change should begin with those at the
top. The Revenue Mobilisation,
Allocation and Fiscal Commission should
quickly propose such reductions so as to
make it mandatory. Very few political
and public office holders followed the
example of the President and Vice-
President because it is optional.”
A civil rights activist, Imma Okochua,
said savings from the removal of petrol
subsidy as well as monies recovered
from looted public funds should be used
to fund gaps in government resources.
He said, “If the recession was caused by
the fall in oil price and especially by the
reduced production and exportation due
to militancy, why don’t you solve the
militancy problem? Is it impossible to
solve?
“When you have sold our national assets
and we have consumed the proceeds, or
the government has squandered it, and
oil prices remain low and the militants
remain undefeated or persuaded, what
will the government do? Will they sell
us to the highest bidder?”
He urged the government to ensure that
it made effective use of the N50 stamp
duty it was collecting from payments
into current accounts.
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