OPEN LETTER TO PRESIDENT MUHAMMADU BUHARI ON THE UNJUST REDUCTION OF COMMUNITY CONTRACTS’ RATES OF OIL COMPANIES’ COMMUNITY CASUAL LABOUR SERVICES IN DELTA STATE

By Zik Gbemre

The subject complaint, has become necessary owing to the fact that if it is not given the requested attention and treated appropriately, it will paint the present Federal Government administration under President Muhammadu Buhari, as one that is insensitive to, and unconcerned about the plight of the host Communities’ locals of oil and gas communities in Delta State.

I was reliably informed that the Nigeria National Petroleum Corporation (NNPC) has directed all its Joint Venture partners and Subsidiaries/Group, to cut down on their operations and Contracts’ Rates of small Community Contractors providing services like Grass-cutting/House-keeping, Pipeline Surveillance, Operation Support, etc., to be reduced by 30%. These are petty Community-based contracts meant for the oil and gas host communities’ locals in the Niger-Delta. And the truth is that, if all these petty Community-based contracts are added up, they will not even amount to a token change for Industry Players, when compared to the big contracts and big salaries/bonuses/allowances of oil workers, Nigerian Senators, House of Representatives members, State Legislators, Ministers, Commissioners, and their various ‘Idle-sitting’ Personal Assistants (PAs). This is why I find it inappropriate, unjust and unfair that such stated essential Community-based Contract services in the Niger-Delta region are now being made to suffer a 30% cost reduction in the face of the economic impact of the Coronavirus pandemic.

While I am fully aware of the lockdown directive across the country to curtail the possible spread of the Coronavirus (Covid-19) pandemic, which has brought down economic activities in all the different sectors of the country, and across the globe, but it is imperative for the Nigerian Government and Industry players to be mindful of every step and decision they make in these trying times, so as not to complicate the very issues they are trying to address. Let us also bear in mind that the only reason the present situation is adversely affecting our local economy, is because past and present Nigerian Governments at all levels are known to never plan ahead, when it comes to preparing for the unseen. At the end of the day, the Nigerian common masses/locals are usually the ones that are made to suffer the brunt of governments’ unpreparedness in managing crises situations.

Even with the present Coronavirus pandemic situation, the so-called palliatives packaged by the Nigerian Government at all levels, to cushion the impact of the lockdown, is not felt by the ordinary Nigerian across the country. As reported in various channels, while some lucky communities that were visited, especially in the South-South areas, only a few persons got few cups of rice and few cups of garri. Such gesture by the Government is not only laughable, but it will not approximate into a meal for one person’s stomach during the lockdown that has been extended to more weeks. This again justifies the fact that all of these relief packages by the Government are mere pretense, to create the impression that the Government is doing something.

While we agree with the fact that the Coronavirus pandemic, which had led to the nationwide lockdown, was not caused by the Nigerian Government, but the blame on the Government is hinged on the fact that Nigerian politicians, rather than use the nation’s abundant resources/revenues to develop the other essential infrastructures of the country, they preferred instead to export the public loots to foreign lands. As such, with the current lockdown, the Nigerian economy is badly hit, as there is no reliable power supply, no good road networks, no dependable transportation and railway systems, no food supply, and poverty everywhere.

However, the big question is, why should the Community-based petty Contracts stated above, be the ones to suffer loss in cost reduction of Oil Operators of the oil and gas sector, whereas the Government, Nigerian politicians and industry players are still daily enjoying the wealth from this sector? It is no news that the oil and gas sector is what is funding all the operations and activities of the Nigerian Government at all levels, including the lavish lifestyles of these politicians with their long retinues of entourage and attaches as different unfounded portfolios. This also includes the different agencies and parastatals of the Federal and State Governments across the country. With all of this, why then should the first call of the Federal Government be to reduce the operations cost of its oil and gas subsidiary, with a 30% reduction of Community-based petty Contracts in the South-South areas?

One would have expected that, if there should be any cut down and reduction of costs of operations, it should be the significant cut down on recurrent expenditures of the Government and the big salaries of Nigerian politicians with their flowing “agbadas”, as well as those in the top ladders of the industry. It is unjust and very unfair that Nigerian Politicians and those in the Operations of the oil and gas sector are still enjoying the wealth from oil and gas revenues (even though this has reduced due to the Covid-19 pandemic), while the host communities’ locals bearing the brunt of the extractive industry operations are made to suffer a 30% reduction cut on their Community-based petty Contract services rate. It simply does not make sense!

These host Community-based local contracts in the oil and gas sector are by far amongst the lowest jobs in the oil and gas sector. So, why should the NNPC and its subsidiaries start with their contract rates reduction? As far as we are concerned, the Federal Government should, as a matter of promptness, announce a 50% reduction of salaries of Nigerian politicians and their Aides. This should also include the relevant Management Authorities in the oil and gas industry. This is what they should do, instead of cutting down the contract rates of casual community workers/locals in oil and gas host communities.

If the Nigerian Federal Government means well for Nigerians, especially in the face of this pandemic, then they should start the stated significant reduction of salaries and recurrent expenditures – from those at the top echelon of the Government and industry players, to those at the bottom. The salary and allowances enjoyed by one Nigerian Senator and his/her entourage of Aides, is enough to pay many local oil contractors in the Niger-Delta, whose activities have economic value added to the Nigerian system.

In other words, THE SALARIES/ALLOWANCES/BONUSES OF OIL WORKERS AND MANAGEMENT STAFF OF THE NNPC AND ITS SUBSIDIARIES – FROM THE OFFICE OF THE GROUP MANAGING DIRECTOR (GMD), AND DOWN, AND THAT OF IOCS, AS WELL AS THE SALARIES/ALLOWANCES/BONUSES OF THE MANAGEMENT WORKERS OF INDIGENOUS OIL COMPANIES SHOULD BE REDUCED WITH A 50% CUT, BEFORE THEY WILL THINK OF REDUCING/CUTTING THE CONTRACTS’ RATES OF COMMUNITY BASED PETTY CONTRACTS OF HOST COMMUNITY LOCALS IN THE NIGER-DELTA, SPECIFICALLY THOSE IN DELTA STATE.

ALSO, THE FEDERAL GOVERNMENT SHOULD FIRST START BY REDUCING ALL THE EVIDENT WASTES OF PUBLIC FUNDS ACROSS THE COUNTRY, PARTICULARLY AT THE FEDERAL LEVELS. THIS INCLUDES THE REDUCTION OF SALARIES, ALLOWANCES AND BONUSES ENJOYED BY THOSE IN THE PRESIDENCY, THE NATIONAL ASSEMBLY, STATE GOVERNORS, STATE LEGISLATORS – BEFORE THEY SHOULD BE TALKING ABOUT ANY FORM OF REDUCTION OF THE CONTRACT RATES OF OIL AND GAS HOST COMMUNITY LOCALS IN THE OIL AND GAS SECTOR.

Zik Gbemre.

April 27, 2020

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