By
Mahmud Shuaibu Ringim
The recent fallout over NUPENG and PENGASSAN’s intimidating threats of embarking on strike was shot down dead on arrival. It is indeed heartbreaking and a direct challenge to President Tinubu’s effort to attract foreign investment into the country.
During the ongoing state visit of President Trump to the UK, Americans expressed their desire to invest over $150 billion in the UK’s economy over a 10-year period. This is a confirmation of the confidence Americans have in the safety of the British economy and its investment environment. This feat could not have been achieved if Margaret Thatcher’s administration had not clipped the wings of the overbearing trade unions in the country.
Dangote is the foremost Nigerian industrialist who has contributed immensely to the growth of the Nigerian economy in various sectors. His investments in manufacturing and other industries have created thousands of jobs and lifted countless families out of poverty.
The beauty of a private-sector-driven economy lies in its ability to provide a level playing field for every investor to participate. The Nigerian government has, over the years, restructured the economy and provided various incentives to encourage more players in the industrial sector. The idea of creating a monopoly is, by any standard, a figment of the imagination of the ignorant who are not well informed about what it takes to establish a manufacturing company.
The greatest challenge of a manufacturing enterprise is navigating the narrow and constrained sources of raw materials, how to sell its products, and how to distribute them to the final consumer in the most efficient and effective manner. In many cases, the channels of distribution and the final consumer create problems by abusing the process — engaging in hoarding and other malpractices inimical to the interest of both manufacturers and consumers.
In the early days of petroleum distribution, before the introduction of independent marketers, the “Seven Sisters” were in full control of petroleum distribution in the country, which was very efficient and effective.
The establishment of refineries and depots by the NNPC helped to ease distribution logistics throughout the country. Subsequent developments that led to the establishment of independent marketers achieved some measure of success.
The coming of Dangote Refinery, following the collapse of NNPC refineries, helped to address the problem associated with petroleum shortages at filling stations. This intervention helped to ease the crisis that had posed a serious threat to the survival of NNPC in the marketing of its imported petroleum products.
Most recently, Dangote introduced a model of distribution that is expected to block many loopholes in the system exploited by those who benefited handsomely from the closure of the refineries.
It is interesting to note that both PENGASSAN and NUPENG have never, for once, embarked on strike over the government’s inability to revive the refineries despite the huge resources expended for that purpose.
It is high time President Tinubu took a bold and courageous decision to take NNPC to the stock market by selling off at least 60% of government shares to the public while retaining 40%. This would boost share capitalization in the stock market.
It is also high time the so-called trade unions such as the NLC and its affiliates were reorganized by an act of Parliament to clip their wings and incapacitate them as tools of economic sabotage in the hands of a few employees pursuing selfish agendas. These unions consistently employ their positions not to contribute to the economy, but to act as a cog in the wheel of Nigeria’s march to greatness and its emergence as a hub for investment inflow.
President Tinubu should follow the Margaret Thatcher model by regulating the unions through the National Assembly.
The government should not allow the interests of a few individuals to frustrate its hard-earned efforts to attract foreign investment, as he recently received a positive response from Brazil. The activities of unions flexing their muscles against an indigenous investor like Dangote send a strong negative signal to prospective foreign investors. The recent face-off with Dangote Refinery could impact capital inflow into the economy. The unchecked power of labour unions in the country has the potential to derail the interest of potential investors.
Dangote should be celebrated by Nigerians for his tireless efforts to make Nigeria great again. Let Dangote Refinery breathe.
Mahmud Shuaibu Ringim
mahmudshuaibu44@gmail.com
