The leadership of the Nigeria Labour Congress has rejected the denomination of domestic gas pricing to GENCOs in foreign currency.
NLC President, Ayuba Wabba, said this in a statement made available to newsmen on Thursday in Abuja.
Wabba said the NLC was inundated with numerous enquiries from workers and members of the Nigerian public alike concerning the reported slash of domestic gas prices for electricity generation and its lack of noticeable impact or reduction of electricity tariff.
He also said the congress had noted the underlying statement of gas price reduction was attributed to the Minister of State for Petroleum Resources, Chief Timipre Sylva, as widely reported in the local media of Aug. 2.
He said ”The purpose is to openly ventilate the agreed position between the Federal Government and Organised Labour on gas pricing as a critical factor in the computation of electricity tariff. It is significant that the incessant increase of electricity tariff was one of the several issues discussed between the representatives of the Federal Government and Organised Labour, hereinafter referred to as the Principals, on Sept. 28. Specifically, an agreement was reached at the meeting to set up an FGN-Organised Labour Technical Committee on Electricity Tariff. The Principals accepted among other recommendations that “necessary actions should be taken to use efficiency to bring the gas price to below $1.50 per MMBtu. Congress also wishes the Nigerian public to know that about 80 per cent of electric energy generated in Nigeria is from thermal stations, which are powered by natural gas. In fact, the GENCOs consume over 70 per cent of domestic gas production. Whereas the GENCOs are required to pay as much as $2.50 per standard cubic foot, other gas users, however, get the same at lower rates, ranging from $1.50 to $1.70 per SCF. The worn explanation for the incongruous high differential was the lack of timely payment by the GENCOs for the gas supplied. Consequently, Congress demands of the Federal Government to reduce the pricing of domestic gas supply to GENCOs to less than $1.50 per SCF. We also demand that payment for gas by GENCOs should be denominated in Naira. Furthermore, the Gas Companies should be included in the Central Bank of Nigeria (CBN) and Nigerian Electricity Service Industry (NESI) payment waterfall to guarantee payments for gas and contract sanctity with GENCOs. Congress demands that the Government should respect the agreement it reached with Labour on electricity tariffs. Congress remains implacably committed to the ultimate reduction of electricity tariffs by N15 per kilowatt-hour by December 2021 as contained in the agreement. Congress hereby serves notice that the posture of the Federal Government to flout agreements is completely unacceptable and would be resisted,”