Labour minister Ngige pleads with US to lift its ban on the purchase of Nigerian crude oil

NIGERIA has pleaded with the US to lift its current ban on the importation of its crude oil describing the action as antithetical to trade and economic cooperation upon which the Africa Growth and Opportunity Act (Agoa) was founded.

 

At the moment, the US is not buying Nigerian crude oil as part of a drive to cut its reliance on foreign energy needs. Across the US, there is a focus on the production of shale as an alternative to petroleum, which has hit crude oil exporters like Nigeria hard, as this reduced demand has led to price falls.

 

Pleading with the US government to reconsider its stance, labour and employment minister Senator Chris Nigige, also told the American government to demonstrate stronger commitment to improve economic ties with African nations through balanced trade relations. He made the plea at a ministerial roundtable meeting on Africa Growth and Opportunity Act at the Department of Labour Building in Washington DC.

 

According to Senator Ngige, this reduction in crude oil purchases had led to low foreign exchange receipts and consequently, recession in some African countries. Senator Ngige, who led Nigeria’s delegation at the meeting to the round table, titled Trade and Worker Rights: Inclusive Economic Growth in Africa Through Trade on the Day One of the Roundtable, said the capacity of Nigeria to tackle anti-labour practices, such as child labour, cheap labour and human trafficking, was being hampered by dwindling resources.

 

He said poverty at low income levels made the fight against anti-labour practices at the base difficult. He urged the US to assist African countries in the entire agricultural value food chain of production, processing and preservation as well as give increase educational assistance to farmers.

 

Senator Ngige said: “The founding ideal of Agoa is to foster a symbiotic economic cooperation between Africa and the United States. However, the capacity of the Africa nations such as Nigeria to effectively tap into the full potentials of the body is being checkmated by limited resources.

 

“There is need therefore for America to rethink initiatives that once made Agoa attractive to African countries. Rescinding her decision on Nigerian crude is one of such steps that could be taken to buoy up our economy and regain enough capacity to protect workers' rights and promote decent work in an inclusive economic growth."

 

He added that the US must do more to assist junior partners by extending some labour projects and technical aide being executed in some African countries such as Madagascar, Zambia and Kenya to Nigeria. Speaking further on Nigeria’s initiatives for improving internationally recognised workers right, the minister said Nigeria had ratified and domesticated eight core conventions of the International Labour Organisation.

 

These he said deal with child rights and fair labour practices, drawing the attention of the international community to the strong backing for fundamental freedoms and labour rights enshrined in the constitution, especially in section 40. Earlier in his address of welcome, the US labour secretary Tom Perez, pledged Washington's commitment to the growth of Agoa.