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Wednesday, March 11, 2009              

Governors back oil sector's deregulation

  • To resume talks with striking teachers
    From Mohammed Abubakar, Abuja

    AFTER a four-hour meeting at the Kwara State Governor's Lodge, Asokoro in the Federal Capital Territory yesterday, state governors resolved to back the proposed deregulation of the downstream oil sector and reopen dialogue with the national leadership of the striking Nigeria Union of Teachers (NUT).

    The governors said that they were supporting deregulation because it would boost production and check market manipulation.

    They cited the economic meltdown as being responsible for their inability to implement the 27.5 per cent pay rise agreed with the teachers in August last year.

    But contrary to the promise by the Education Minister, Dr. Sam Egwu, to the leadership of the NUT to dialogue with the Governors' Forum on the implementation of the special teachers' salary scale, the meeting went on without his presence . He was not even represented .

    However, in an interview with The Guardian in his office yesterday , the minister said he got in touch with the chairman of the forum, Dr. Bukola Saraki, before the meeting and that he was on top of the situation.

    But he said he was still waiting to hear from the governors as at the time of the interview to know what the outcome of their meeting was.

    Governor Ikedi Ohakim of Imo State, who read the governors' statement, however, said the governors were ready to enter into further dialogue with the national leadership of the union.

    His words: "We recognise the earlier understanding with the Nigeria Union of Teachers (NUT) on the new teachers' salary scale, but considering the global economic recession, we have agreed to have further dialogue again with the National Executive of the NUT."

    Expressing the governors' support for the proposed deregulation of the downstream petroleum sector, Ohakim said: "In promoting integrity and healthy competition in accordance with the free market economics, we reject the continuous funding of corruption, insider abuse and inefficiencies under the disguise of petroleum subsidy that does not reach the intended beneficiaries, which are the masses of this country.

    "Therefore, we support the measures currently being considered by the Federal Government to deregulate the downstream sector by bolstering investor and consumer protection, avoiding conflict of interest, preventing illegal market manipulation, fraudulent activity, abuse and adequate regulation of the sector.

    "Therefore, we request the Federal Government to refund the subsidy paid in 2008 and we reject further deductions otherwise called petroleum subsidy in 2009."

    Against the backdrop of the deteriorating financial condition, Ohakim said the governors had agreed that the funds accruing to the excess crude account should be shared by the Federal Government "to enable the state governments meet their obligations to the electorate to restore growth, avoid leakages, negative spillovers and support emerging challenges that will arise from the financial meltdown."

    Ohakim said while the governors understood the critical importance of resolving the court case involving "illegal deductions" by the Federal Government pending before the Supreme Court through out-of -court settlement, all states that were already in court should, however , continue with their cases in good faith.

 
 

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