Nigeria Security Update #2 250507

Oil Workers’ Strike Stalls Crude Lifting

Oil workers, under the umbrellas of the National Union of Petroleum and Natural Gas Employees (NUPENG) and Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), in the employment of the Nigerian National Petroleum Corpora-tion (NNPC), the Department of Petroleum Resources (DPR), and other government affiliates yesterday made good their threat to commence an indefinite strike to protest the recent sales of the Port Harcourt Refinery, Stallion House, Egbin Power Station as well as the alleged plan by the Federal Government to slash salaries of workers.

The sit-at-home strike which commenced yesterday nation-wide stalled activities at the export terminals as all the workers attached to the various terminals, who are union members, did not report to duty, despite the plea by the Group Managing Director (GMD) of the NNPC, Egnr. Funsho Kupolokun that they should shelve the planned action and embrace dialogue.

Lifting of crude oil was affected at the Escravos, Bonny, Brass and Qua Iboe Terminals as the workers heeded the call by their leaders to sit at home.

Spokesman of PENGASSAN branch of DPR, Comrade Raymond Akpan, confirmed that all the inspection officials deployed to all the crude oil export terminals were recalled by the union yesterday morning.

The DPR is the Federal Government’s regulatory age-ncy saddled with the responsibility of monitoring the activities of oil firms in the upstream and downstream of the Nigerian oil and gas industry.
The withdrawal of the officials, whose duty it is to certify volumes of crude oil destined for export in all the export terminals from their duty posts, he said, was sequel to Federal Government’s refusal to heed to their demands.

“As you can see now, all the offices at our corporate headquarters located at No 7 Kofo Abayomi have been closed after the directives was issued by the national executives of the union in collaboration with NUPENG workers counterpart”, Akpan said.
He however stated yesterday that the groups will be ready to dialogue with the government if it sincerely wants to.
Industry analysts have expressed concerns over the workers strike, saying the suspension of crude lifting implies that the Federal Government and the oil producing firms operating in the country would record drops in their daily production.

But reacting to the strike yesterday, Minister of Energy, Dr. Edmund Daukoru said the Federal Government would not discuss under duress with the striking unions and urged them to suspend their action and embrace dialogue.

Daukoru said, “as long the strike continues, government cannot dialogue under duress. It is predicated on them calling off their action. They (unions’ officials) should go back to their rank-and-file to convince them that it is necessary to call off their action. "That government is not discussing with them under duress. They showed good understanding of that. And we are looking forward to meeting with higher level of authority in government. We hope to see that happen tomorrow.
The Minister confirmed that strike action from the end of the Nigerian Gas Company (NGC) is already impacting on the power sector negatively.

"The gas plant from Shell that supplies gas to Egbin Power station requires that liquid products be evacuated regularly by tanker trucks. That is currently not happening as a result of the strike. That means that gas supply to Egbin power station is under jeopardy”, he said.

Daukoru however declined to comment on the effect of the action on the Nigerian economy, stressing that it will be sending out panic signals but warned that the union members will be affected directly or indirectly by their own action.

He appealed to the workers to rescind their action and feel free to come to work, assuring that nothing will happen to them even as he raised the hope that the two unions will convince their members to start work today.
He explained that Nigeria was not yet in the comfortable zone of providing enough megawatts of electricity hence every megawatt lost during the strike goes a long way.

Meanwhile, both unions have denied reaching any accord with either the Minister or management of the NNPC, insisting that the action will continue until the government reverses the sale of Port Harcourt Refinery by the Bureau for Public Enterprise (BPE) last week.
The National Deputy President of PENGASSAN, Comrade Nuhu Wali in a chat with newsmen in Abuja, said “BPE will never take over Port Harcourt refinery until all disengagement issues are resolved’’.

While applauding their members for heeding the call, Wali confirmed that activities at the Corporate Headquarters of NNPC, all NNPC installations, locations as well as Department for Petroleum Resources have been paralysed due to the strike.
He said in the event that there is no positive response from the government, the unions would be left with no choice but to call on other branches to join as sympathy strike.

He said the meetings with NNPC management so far have not yielded any positive result because the policies in place are beyond them.
“We are protesting the sale of the national assets to individuals that do not have the interest of the country at heart. The issue of privatisation is the killer of the reforms of the President Olusegun Obasanjo administration.

"It is better for the incoming government to know that all is not well because the outgoing government has violated all due processes in the sale of the refineries”, he said.
He stated that PENGASSAN has been reliably informed about plans to sell Kaduna Refinery to Dangote Group and vowed that such action would be resisted.

“We have reliable information that the Ministers that make up the economic team are lobbying President Obasanjo to allow Dangote Group match the price money offered by the Chinese Company. "We want to sound it loud and clear that we will resist it vehemently. Why turn national assets to personal assets? Why encourage Nigerian businessmen at the expense of Nigerian laws and Nigerians? This government claimed that they want this refinery to work but their actions have revealed that they are only interested in monopolising it.

“Look at what happened in Microsoft when Bill Gate wanted to monopolise it but the US government broke it. Why should our own reforms or privatisation be different?

“You will recall that when this government started deregulation of the downstream sector we were told it was to open doors for private investors to come in but months after the 18 investors got licence, none of them have built anything rather they are lobbying to buy government’s own at a ridiculous price.

"Who are they deceiving? That is why they are frustrating the turnaround maintenance of the refineries. I can tell you authoritatively that the NNPC has stock pilled equipment for the turn around maintenance of the refineries but their efforts are being frustrated. Rather they are giving a dog a bad name to hang it.

“We thought this government was sincere when it started the deregulation of the down stream sector. In 1999 Obasanjo had warned the Abdulsalami government to stop the sales of Federal Government assets and we thought then they had good intentions but less than a week to the end of this government they are selling off everything.

"Whose interest are they protecting theirs or ours? We are calling on the incoming government to reverse all privatisation done in a rush. We urge Nigerians to team up with us to say no to the sale of our assets without due process and we commend our members for their support and understanding in this struggle,’’ he said.


US Consulate Warden Message - Inauguration

U.S. EmbASSY ABUJA

U.S. Consulate General LAGOS

NIGERIA


May 24, 2007

Warden Message


The Labor and Civil Society Coalition (LASCO), the Trade Union Congress (TUC) and the Nigeria Labor Congress (NLC), have publicly announced protests for both Monday, May 28, and Tuesday, May 29. Their objective is to protest against the 2007 Nigerian elections as well as a number of other issues, such as salary increases. The inauguration for the new federal and state administrations will be held on Nigeria’s Democracy Day, Tuesday, May 29, 2007. This is a federal holiday. A public protest is being planned for May 29, at Tafawa Balewa Square, on Lagos Island. However, past experience has shown that impromptu public gatherings can occur at any time and even demonstrations intended to be peaceful can turn confrontational, and possibly escalate into violence. An unknown group has also communicated its intention to expand the Delta violence throughout Nigeria, including Abuja.

In view of the upcoming protest, the U.S. Consulate General Lagos has advised its American citizen personnel and family members that they must obtain prior approval from the Regional Security Officer (RSO) to travel outside of their residential compounds Tuesday, May 29.

The U.S. Mission continues to recommend that American citizens avoid restaurants, bars, and night clubs between the hours of 2200 and 0600.

We have recommended that our staff evaluate their current personal contingency/emergency planning and at a minimum take the following precautions:

· Fully fuel and inspect motor vehicles to ensure they are properly functioning;

· Stock up on food and water so that you have sufficient stores to last several days;

· Check locks and doors and remain in positive control over all keys to entry ways, doors, and locks;

· Ensure mobile phones are fully charged; and

· Have on hand a basic first aid kit.


We continue to advise all Americans to review their security procedures, remain vigilant to their surroundings, and report specific incidences of targeted violence to the U.S. Embassy in Abuja or the U. S. Consulate General in Lagos at the numbers below.


For the latest security information, Americans living and traveling abroad should regularly monitor the Department’s Bureau of Consular Affairs internet website at http://travel.state.gov/, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Up to date information on security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or, for callers outside the U.S. and Canada, a regular toll line at 1-202-501-4444. These numbers are available from 8 a.m. to 8 p.m. Eastern Time, Monday through Friday (except U.S. Federal Holidays.)


U.S. Embassy Abuja is located at Plot 1075 Diplomatic Drive, Central Business District, Abuja; the telephone number is 09-461-4000. E-Mail: ConsularAbuja@state.gov



The U.S. Consulate Lagos is located at 2 Walter Carrington Crescent, Victoria Island, Lagos; the telephone number is 01-261-1215. For after-hours emergencies, call 011 [234] (1) 261-1414, 261-0195, 261-0078, 261-0139, or 261-6477. E-Mail: lagoscons2@state.gov


Website: http://nigeria.usembassy.gov