NLC demands reversal of gas price to GenCos to $1.50/scf

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The Nigeria Labour Congress yesterday, kicked against Federal Government’s reduction of price of gas for electricity generation from $2.50 to $2.18 per standard cubic feet (SCF), noting that it violates the less than $1.50 agreed with the Organised Labour.

Subsequently, the NLC President, Ayuba Wabba, called for reversal of the price, warning it would be resisted if government fails to uphold agreement reached with Labour on the subject.

Besides, the labour leader said the price should be denominated in naira as gas is produced locally.

Minister of State for Petroleum Resources, Timipre Sylva, had at the 2021 Gas Stakeholders Forum in Kano on Monday, reportedly announced that the Federal Government had approved the reduction of domestic gas prices for electricity generation from $2.50 to $2.18 per standard cubic feet (SCF). 

But the NLC President warned the price runs contrary to the submission of the Technical Committee which submitted its final report to the Principals at the close of January 2021. 

“The Principals accepted among other recommendations that “necessary actions should be taken to use efficiency to bring gas price to below $1.50 per MMBtu,” he said.

Wabba said the report was further corroborated by the Minister of Labour and Employment, Dr Chris Ngige, who stated that  electricity tariff ought to go down considerably. 

“The minister said the Federal Government and organised labour agreed on the reduction in the cost of gas sold to Generating Companies to $1.50 as against the $2.50 it is sold to GENCOs,” he said.

According  to the NLC President, there’s abundant evidence presented to the Technical Committee and the meeting of the Principals that the pricing of domestic gas for GenCos in US dollars represents the quintessence of under-development of Nigeria’s energy sector. 

SOURCE: THE SUN

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