The Nation Newspaper

Category: Labour

  • ‘Govt needs to double its efforts on oil theft sponsors’

    ‘Govt needs to double its efforts on oil theft sponsors’

    Comrade Lumumba Okugbawa is the General Secretary of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). In this interview with TOBA AGBOOLA, among other issues, he urges the government to go after sponsors of oil theft and vandalism.

    What are your expectations and challenges in the sector?

    We expect things to improve in 2024 in our sector. Our major challenges are oil theft and environmental degradation. Many of these oil companies don’t care about the environment they operate.

     But the biggest challenge is oil theft. Oil theft happens and it’s a big business for some. As at January, this year, the country produced about 1.4million barrels per day, while in 2023, we never produced up to one million barrels per day. You will discover that most of the oil produced has been stolen. Meanwhile,our quota from  the Organisation of Petroleum Exporting Countries (OPEC) is 1.8million, even though we are capable of producing two million barrels per day. So, most of these products are being stolen and when we are talking about stealing, we are not talking about stealing using Jerry cans. We are talking about those who steal heavily, in barges. And the funny thing is that the security will tell you that they cannot track these people. We believe that there is a complicity from the high rank in the society. Based on that, PENGASSAN planned a campaign and we took it to the four major zones in the country, including Abuja. We did this so that the government will swing into action. It’s a major challenge.This is also discouraging the IOC because they are not getting enough from their investments.

    How is insecurity affecting you?

    Insecurity is another big challenge in the country. Nowhere is safe and the indices are there. This puts fear on those who want to invest and that’s why most of these companies are relocating. Nobody wants to go deeper offshore because of the security challenge.You cannot travel peacefully again. You cannot even go to your village peacefully. If you must go, you have to go secretly.

    We are also hoping those that will take over the assets of these companies will do the right things, most especially for the workers. We are working on a Memorandum of Understand (MOU) backed with a legal framework.

    What is/are the implication(s) of Dangote and PH Refineries coming on board?

    We expect that it will reduce the price of petroleum marginally.This is because it will have a positive effect on the cost of demurrage, landing etc.Two things affect the price of oil. First, is the vocality of the naira.Two, is the local production. Alhaji Aliko Dangote is not going to be Father Christmas. He is here to do business and make profit. What we have been saying for many years is the need to stem importation and enhance local production. Even, as far as we are concerned, subsidy is a scam. If we follow the international oil price as it is, we won’t be buying fuel at N600 per litre. Probably, it would have gone up to N900 per litre. This is because with the naira and dollar jumping up and down, fuel price also is supposed to be fluctuating and not stable at N600 per litre. What it means is that the government is still doing something to it.

    And not that subsidy is bad, but the government needs to do something to mitigate the suffering. And the way it is interpreted is also wrong. For instance, if I say, don’t buy this thing at this price, buy it less because I am going to subsidise it, am I doing a bad thing? But the corruption in it is the issue. Also, the money that they made since the removal of subsidy,what have they done with it? Most especially the governors. States and local governments have been collecting heavy shares from the removal of subsidy, what have they done with it? There is even an allegation that some of these governors after getting their share decided to buy dollars and keep it. Some of them even do business with it.This is also putting pressure on the dollars.

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    Another good side of this subsidy removal was that when it was removed, smuggling of petroleum reduced drastically. This is because they are not making profit again. We were feeding the whole West Africa and don’t forget that our border is so porous. Niger alone shares a border with about four Northern states.

    What’s your take on the government’s reforms?

    People started criticising this government one month after it took over and they will continue to do so. It is normal. It didn’t start today. So, the government needs to make itself accountable. Don’t also forget that the international crisis is also affecting us. Nigeria is as challenged as other countries. In fact, in some countries people leave from hand to mouth because the salary is not enough.They have to settle bills. But, more importantly, our lifestyles have to change. We need to adjust because of the situation on the ground.

    What are PENGASSAN’s plans for its members?

    Our major plan is to work on the issue of contract staff. You said somebody is a contract staff and he has been working for you for 15 years and you still call him a contract staff. So, we are going to look into this. Meanwhile, there are also some contract staff that earn more than the regular staff. We are going to look into this. We are going to address the problem of discrimination. Other issues we are going to address through our advocacy are: insecurity, and vandalism. We want the government to go after the sponsors and not just the foot soldiers.  No matter how highly placed those people are, the government should go after them.

  • ILO, others: 1.4b children out of social protection globally

    ILO, others: 1.4b children out of social protection globally

    Worldwide, 1.4 billion under 15 children  lack social protection, leaving them vulnerable to disease, poor nutrition and poverty, says  the International Labour Organisation (ILO), Save the Children and UNICEF. 

     According to them, fewer than 1-in-10 children in low-income countries have access to child benefits, leaving them vulnerable to disease, education gaps, poor nutrition, poverty and inequality, says The report noted that those children lacked access to child benefits, highlighting a significant disparity compared to the coverage enjoyed by children in high-income countries.

     However, child benefits are critical social protection aimed at promoting thewell-being of children. Delivered as cash or tax credits, child benefits are essential to reducing poverty as well as accessing healthcare, nutrition, quality education, water and sanitation.

     In addition, these benefits support socio-economic development, particularly in times of crisis.They stated that many children are deprived of the basic resources and services they need to escape poverty and are therefore exposed to the long-lasting impact of hunger, malnutrition, and unrealised potential. The three organisations called on governments to ensure that children are shielded by social protection mechanisms, including through universal child benefits.

     The data shows there has been a modest global increase in access to child benefits for over 14 years, 20 per cent in 2009 to 28.1 per cent last year. However, the progress has been unequal. In low-income countries, rates of coverage remain staggeringly low, at around nine per cent.

    At the same time, 84.6 per cent of children in high-income countries are covered. Coverage rates for children in countries that are highly vulnerable to the impact of climate change are a third lower than those in countries that are not classified as being at high risk.

     The report maintained that ensuring children are covered by social protection is key to protecting them from climate crisis.“Globally, there are 333 million children living in extreme poverty, struggling to survive on less than US$2.15 per day, and nearly one billion children living in multidimensional poverty.

     At the rate of progress, achieving the Sustainable Development Goals’ poverty targets are out of reach.

    This is unacceptable. However, ending child poverty is a policy choice. Expanding social protection coverage of children in the fight against poverty is critical, including the progressive realisation of universal child benefits,” Natalia Winder Rossi, Director, Social Policy and Social Protection, UNICEF, said.

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    Regional breakdown of child benefits coverage between 2009 and 2023: In East Asia and the Pacific, child benefits coverage increased from 9.2 per cent in 2009 to 16.0 per cent in 2023.In Eastern and Southern Africa, coverage increased from 9.6 per cent to 12.3 percent. In West and Central Africa, coverage increased from 3.1 to 11.8 percent. In Eastern Europe and Central Asia, coverage increased from 59.0 per cent to 61.4 perc ent. 

    In North America, coverage has increased from 78.1 per cent to 84 per cent.  In Western Europe, coverage has increased from 91.0 per cent to 93.2 per cent. More marked improvements occurred during the same period in: Latin America and the Caribbean, where coverage rates increased from 30.8 to 41.9 percent. In the Middle East and North Africa, where they rose from 22.7 percent to 32.5 per cent.

    In South Asia, where they increased from 9.2 to 24.3 per cent. Director, Social Protection, ILO, Shahra Razavi said: “This is a crisis for the almost one billion children who are not covered by benefits, and for the countries in which they live.“There is an urgent need for effective policymaking to help us close protection gaps.

    Regional inequalities in coverage and progress are of serious concern – improvement in child benefit coverage is marginal in most regions and too many children are still being left behind.”

  • Expert urges govt on unemployment

    Expert urges govt on unemployment

    An expert has urged the government to come up with reforms that will solve unemployment  and achieve economic stability

      The expert, Olaotan Fawehinmi, who is the Associate Director at Mediacraft Associates, in an interview, said meaningful reforms were essential to diversifying the economy, stimulating private enterprise, and creating an enabling environment for job creation.

      Fawehinmi highlighted the stark reality revealed by the most recent National Bureau of Statistics (NBS) data, indicating that 53.40 per cent  of Nigeria’s youths are unemployed.

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      This percentage, according  to him, underscores the need for decisive action to address the structural issues fueling unemployment, including the country’s heavy reliance on oil revenue, inadequate infrastructure, and regulatory hurdles stifling entrepreneurship.

      “Meaningful reforms are essential to diversify the economy, stimulate private enterprise, and create an enabling environment for job creation. This includes simplifying regulatory processes, improving access to finance for small businesses and startups, and investing in sectors with high growth potential,” he said.

  • Row over ban on alcohol in sachet

    Row over ban on alcohol in sachet

    The National Agency for Food and Drug Administration and Control (NAFDAC)’s ban on sachet alcohol has sparked controversy among manufacturers, employers and workers, who fear job losses and economic instability. Stakeholders are calling for regulations and access control measures instead. TOBA AGBOOLA writes

    Though experts say the ban by the National Agency for Food and Drug Administration and Control (NAFDAC) on the sale of alcoholic beverages in sachets is a bold step to arrest the growing culture of alcoholism, some stakeholders in the sector disagree.

    On February 1, this year, NAFDAC had commenced the enforcement of the ban across the country. Despite opposition from some sections of society however, the regulator is resolute in its decision.

    After a moratorium, NAFDAC pronounced the ban on the production, manufacture, distribution, sale, and use of alcoholic beverages in sachets, pet, and glass bottles of 200ml and below this month.

    Before carrying the big stick, NAFDAC said it engaged the stakeholders, including distilleries, from January 2022.

    According to the agency, the moratorium was long enough to enable them comply. It added that strict enforcement was needed to rid the streets, kiosks, marketplaces, parks, and garages of sachet alcohol.

    However, the Organised Labour warned that ban might lead to mass exodus of companies and loss of over one million direct and indirect jobs in the food and beverage sector.

    Reactions from Organised Labour

    The National Union of Food Beverage and Tobacco Employees (NUFBTE) has also warned that the government policy on sachet products will destabilise investment and threaten job security.

    Its President, Garba Ibrahim, lamented that the  implementation of the policy on the sachet drinks would have negative impact on investors and workers.

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    “Without mincing words, this policy implementation at this critical time of economic turbulence is tantamount to government’s insensitivity to the excruciating pains ravaging the entire economy and employment horizon across length and breadth of the country,” he said.

    He noted that the policy implementation was wrongly timed, adding that it would lead to relocation of production factories from Nigeria to neighbouring countries where the cost of production is more profitable.

    He reiterated that job losses would arise from the ban as companies might shed weight.

    Garba argued that the ban would lead to the consumption of unregulated alternatives with the attendant negative impacts on the health of vulnerable Nigerians.

    Another problem, he warned, is that NAFDAC might not foresee that the policy would create an opportunity for the dumping of substandard products on the nation’s open markets through smugglers.

    The policy, he added, would equally impact negatively on the government limiting revenue from taxes and duties from the affected companies.

    Emphasising that what investors and workers need is the protection of jobs and enhancement of sustainable livelihood, the union has threatened a protest to draw the attention of the government to their predicament.

    Also, the General Secretary, NUFBTE, Mike Olanrewaju condemned the ban. “We are condemning it, we are even protesting it. Most of our members work in that sector. It’s wrongly timed,” he said.

    Olanrewaju said policy was insensitive to the plights of Nigerians . “On one hand, the government is campaigning for employment,  while on the other hand, it is destroying the jobs of Nigerians,” he stated.

    While reactions to the ban continue to grow, workers are matching their words with action. For example, the Trade Union Trade Union Congress (TUC) and Food, Beverages and Tobacco Senior Staff Association (FOBTOB) last week staged a protest at the Lagos office of NAFDAC.

    This followed a two-day enforcement by NAFDAC’s operatives in Ota, Ogun State, leading to the shutting down of some factories.

    The NAFDAC enforcement team has sealed the production lines in companies such as Shash Industries Limited located in Iyesi- Ota, Nigerian Distilleries Limited, and Intercontinental Distilleries Limited.

    According to the President of FOBTOB, Jimoh Oyibo, the protest at NAFDAC’s office in Lagos was a warning and to register organised labour’s dissatisfaction with the policy.

    Oyibo, who is also the Second Deputy President of TUC, threatened that should the government fail to reverse the ban, Labour would declare a nationwide protest, among other industrial actions.

     “We are shocked by the Federal Government and the National Agency for Drug Administration and Control (NAFDAC) outright ban on the production of alcoholic beverage in sachets and small bottles,” he said.

    Calling for its reversal, Oyibo said the ban has wider implications than what the government is thinking.

    “What we are saying is that the disadvantages far outweigh the government envisaged advantages,” he said.

    He noted that the ban took the union by surprise because there was a discussion between the government and other stakeholders on how to address the challenges of under-aged or children having access to alcoholic beverage and the issue of littering of the environment with used sachets and small bottle.

    He said: “On the issue of under-aged drinkers, it is the responsibility of the government to enforce the ban. Just like in the case of tobacco, despite the warning that smokers are likely to die young, it has not stopped people from smoking. It is entirely the responsibility of the government or the law- enforcement agents to ensure that these products are not sold to children or sold at the motor parks and bus stops as the case maybe.

    “The government and the law enforcement agents should live up to their responsibilities and look for a quick fix of throwing away the baby with the bath water.’’

    He added that the government could handle the problem of littering claimed by some in a more sustainable way.

    “On the issue of littering of the environment, the government ought to have been creative and put up its thinking cap to convert the waste into wealth generation as done in other climes. Go to Europe and Americas, they are heavier producers of sachets and small bottles. But you can never see used sachets or small bottles flying around or littering the environment.

    “These wastes are recycled to create wealth. In fact, some people are engaged to gather these wastes and they earn their living as waste collectors. What we are saying is for the government to be creative, invest in recycling of these wastes into wealth generation, recycling will create employment and provide raw materials for other products.”

    The FOBTOB chief said in some countries, waste are used to generate power.

    The labour leader warned that the banwould further accentuate the insecurity in the country, as more people would be thrown into the employment market.

    “It is common knowledge that most of the crimes are being perpetrated by able-bodied idle hands. What will happen when over 45,000 persons are thrown into the unemployment market?” he said.

    NECA’s reaction

    Nigeria Employers’ Consultative Association (NECA) Director-General, Adewale-Smatt Oyerinde, besides advising NAFDAC to reverse the ban, also advocates further dialogue with the Distillers Association, Road Transport Employers Association of Nigeria (RTEAN), and National Union of Road Transport Workers (NURTW), among others, on how to avoid the negative economic and social consequences of the ban.

    Oyerinde stated that the businesses that produce commodities such as detergents, cocoa beverages, powdered milk, sachet drinks (alcoholic and non-alcoholic), among others, came to be as a result of the declining purchasing power of the citizen in meeting basic needs.

    “Therefore, alcoholic beverages in sachets, pet and glass bottles of 200ml are not targeted at underage children and commercial bus drivers, but a product of failing purchasing power of Nigerians,” he said.

    Oyerinde also advised that campaign against the drinking of alcohol by underaged children and commercial drivers should be intensified in all fronts, suggesting a stiffer penalty to deter this target groups.

    Our stand, by NAFDAC

    But, as far as NAFDAC is concerned, its decision is final. It said it had given enough time to manufacturers before announcing the implementation.

    Its Director-General, Prof. Mojisola Adeyeye, last Monday, in Abuja, said NAFDAC had in January 2022 stopped the registration of alcoholic beverages in sachets and small-volume PET and hlass bottles below 200ml.

    According to her, the decision was based on the recommendation of a committee of the Federal Ministry of Health and NAFDAC, the Federal Competition and Consumer Protection Commission (FCCPC), and the industry, represented by the Association of Food, Beverages and Tobacco Employers and Distillers and Blenders Association of Nigeria in December 2018.

    “As commitment to the decision reached at the end of this committee meeting, producers of alcohol in sachets and small volume agreed to reduce the production by five per cent with effect from 31st January, 2022, while ensuring the product is completely phased out in the country by 31st January, 2024,” she added.

    The NAFDAC boss said the move was aimed at discouraging its consumption by youths who easily accessed the products in such containers at an affordable cost.

    The decision, she affirmed aligned with recommendations from the World Health Organisation (WHO) for policy-makers to regulate the marketing of alcoholic beverages to youths to control and restrict the products for sale.

    She explained that people who are mostly at risk of the negative effects of the consumption of the banned pack sizes of alcoholic beverages are the under-aged and commercial vehicle drivers and riders.

    She added that WHO had established that children who consume alcohol are more likely to use drugs, get bad grades, suffer injury or death, engage in risky sexual activity, make bad decisions and have health challenges.

  • Foundation pushes for child domestic workers’ protection

    Foundation pushes for child domestic workers’ protection

    Street Project Foundation, in conjunction with the Freedom Fund, funded by the United States Department of State Grant, has held an advocacy forum on how to address exploitative child domestic work in Oworonsoki, Lagos.

    At the event,  founder and Executive Director of Street Project Foundation, Mrs Rita Ezenwa-Okoro,  said: “The aim of the ARTvocacy project is to create awareness about the precarious situation of child domestic workers and explore solutions to this societal menace. This sensitisation will begin in Oworonshoki and Festac Town, Lagos.”

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    She added: “We have kicked off the first leg of the project, which involves training 25 youths from Oworonsoki. We shall use the creative arts to educate participants on their roles in protecting child domestic workers from harm in their community.

    “After the first five days of our engagement, we visited the Oba of Oworonsoki, Oba Babatunde Saliu, to intimate him on why we brought our project, ARTvocacy, to his subjects and presented the participants to him.”

     The monarch praised the programme, the Street Project Foundation, Freedom Fund, and the United States Department of State for the opportunities offered to the youth aimed at bringing growth and development to his community.

  • ‘Expect positive impact of reforms from Q3’

    ‘Expect positive impact of reforms from Q3’

    The Director-General, Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, in this interview with TOBA AGBOOLA, speaks on the various reforms put in place by this administration and the expected effects on the economy.

    Tell us about the Nigeria Employers’ Consultative Association (NECA) outlook for the year

    This government came in when this economy was to, a large extent, shattered and they came up with some certain reforms, which, we believe, are fundamental.

    Don’t forget that every drug that is meant to cure a sickness must initially have a bitter taste. Looking at the reforms that this government has initiated – the removal of the subsidy, reforms of the forex, monetary policies and so on – we know that these are reforms that will yield fruits at the long run. For instance, the collation of the exchange rates.

    Before now, the last administration had been defending the naira with billions every month and this makes us not have the real value of the naira. But this administration said this could not continue. Unfortunately, the inflow that can help you to stabilise the naira is not coming from the context of dollars; we still have lots of naira pursuing few dollars. The principle of economics says once the demand is higher than the supply, prices will go up. We are hoping that with the Dangote Refinery and the Port Harcourt Refinery coming on board, it will reduce our propensity to spend money on fuel importation.

    The money borrowed from AFEX, which is $2.5 billion, would also help to shore the dollar inflow. The long-term solution is: let us produce what we consume. Let us give the real sector some attention. If we can produce what we are consuming and we can produce sufficiently to export, to a large extent, we will solve our dollar challenge. We are importing almost everything and this is putting pressure on everything – manufacturing, naira etc.

    If we don’t deal with revenue from the inflow of dollars, we are just playing round the issue and we won’t have a long-term solution.

    Diversification.This is another area we have been talking about for a long time. The government must diversify our sources of revenue, our forex. The sources of forex have not been diversified because about 90 per cent of it still comes from crude oil, which price we don’t have control over or how many barrels we sell per day,  because the Organisation of Petroleum Exporting Countries (OPEC) still gives allocation per country.

    If the government can remain focused on the reforms,  it will go a long way. There are fiscal and monetary policies being pushed out through the Taiwo Oyedele Presidential Committee. Lots of reforms on Customs and even the Minister of Finance and Economy came up with some papers, giving waivers on some products. So, we believe that with  all these, towards the third quarter, we should start seeing the benefits of these reforms.

    But for the first and the second quarters, we might still have some challenges. With the confirmation of the CBN Governor that they are doing everything to make naira find its true value, we believe that by the third quarter, things will improve.

    What impact will the Dangote/Port Hacourt Refineries make?

    The fact that we have Dangote and Port Hacourt refineries, something should count for it. We don’t believe on the argument that the price of petrol will not come down as a result of this. Even the NNPCL GMD also confirmed recently that the price of petrol would come down. With those refineries working, it means we will be refining locally; we will not be sending the crude abroad. That margin should count as something for Nigeria.The comparative advantage should also count for us.

    We can’t continue to say we use international or global market price and when it is convenient, we say our economy is not denominated in dollar, it is denominated in naira,, which we must spend.

    So, if our economy is denominated in naira, then why are we using the context of a global dollar price to deal with local issue of fuel? Those arguments are neither here or there. The government needs to be more transparent and build consensus around its policies so that Nigerians can rally round its policies and we will make it work.

    What is the solution to unemployment?

    The solution might get a bit worse if you follow the International Labour Organisation (ILO) Social and Employment reports that employment will be worse in 2024, especially for the income low-country like Nigeria. And this is based on what is on the ground. The economy is not picking up. The inflation keeps going up, the exchange rate keeps going up, the real sector is struggling to survive. And jobs don’t come from the sky. You have to be productive to create jobs. And that is our concern. Employers are getting squeezed. Businesses are facing multi-dimensional challenges and those that can’t withstand the heat are leaving. It will be unfortunate if we take their leaving with levity. If we say that they have the right to come and go, then we are not really understanding the consequences of their leaving. Because, for a big business to close shop, there are many small business in the value chain that are probably supplying some input.

    If that big business closes shops, the small businesses in the value chain are most likely to close shop or reduce their operations which might also involve people losing their jobs.

    There are no two ways to it. The private sector remains the engine of development and the biggest job creator. If you want to resolve it, focus on the private sector. Let’s support it. We hope the Taiwo Oyedele Presidential Committee will come up with its recommendation and we hope that it will be implemented. The FIRS chairman also said two weeks ago that they were working on how to reduce multiple taxes. We hope that this will promote growth and production. Hopefully, if this happens, more businesses will stabilise and the economy will grow. We cannot reduce the unemployment rate, if we don’t creat jobs.

    The second option we are canvassing is technical and vocational training. Few weeks ago, the Federal Government gave the ITF the mandate that they must register or produce about 20 million artisans. I think this is one of the ways to go. We have the NECA-ITF Project, which has been on for about 20 years. That project has trained over 10,000 artisans that have gainfully employed and those that are not employed have started their businesses. That is another model to reduce unemployment.

    The third way is through social intervention. Unfortunately, our social intervention programme ran into controversy at the Ministry of Humanitarian Affairs. In most economies, the social intervention fund plays a very major role in driving the economy, especially for those on the zero-level income.

    The idea is to make sure that their capacity continues to fuel production. This creates capacity to continue to purchase and that keeps the business running because the companies  keep producing. If those countries give like $30, $40 or $50 to some  individuals every month, it is to make sure that the ability to buy or consume is not compromised. Because it is when they can buy that businesses can produce. This is one of the problems in the manufacturing sector.

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    Recently, they said they had about N272billion unsold goods, which could expire. In other words, if you take action A, it will affect action B, C and D toward the growth. That is one of the critical things the government needs to look into.

    You will see yourself pumping money into projects without any effect. The government needs to be proactive.

    How does the govt tackle insecurity?

    We are complaining about the effect and we keep fuelling it. One  thing that is fuelling insecurity is unemployment. For instance, during the #END-SARS protests in 2020, do you think any body that was gainfully employed would be part of the protest or be looting malls?

    If we solve unemployment, that will reduce the numbers of hands in crime. Then, our budget on insecurity will reduce and   focus would be on external aggressions. Those are are the critical issues.

    The issue of multiple taxes has refused to go.  Is NECA doing something about it?

    We are happy that the Taiwo Oyedele Presidential Committee is looking into this. We have also submitted our recommendations and we are hoping that they will be accepted by the government. The comment by the FIRS chairman that the issue of multiple taxes would be look into is also encouraging. We don’t want to pre-empt the recommendation of the committee, but from what we have heard,  the committee has made good decisions that will change the situation.

    Access the NECA-SEC partnership

    The partnership with the Securities and Exchange Commission (SEC) is to deepen the private sector participation in the capital market, which will also aid business activities. To deepen public- private sector partnership, not only to drive the infrastructural development but to drive the national growth. The growth of other developing countries can be ascribed to private-public partnership. And we believe this is the way to go. It will allow businesses in need of financing to come to the capital market to raise cheaper finance and increase employment because when businesses have investment projects that promise best of returns and can source cheap financing of the projects profitably, the ability to employ more people will increase.

    Is the govt’s monetary policy working?

    We commend the bold efforts that have been taken by the government on the reforms. We understand that it will take some time before those reforms will start yielding results. We urge the Federal Government to remain focused and continue to engage with the stakeholders. One of the challenges with the last administration has was that  when the policy is not working, they keep pushing it.

     Meanwhile, it is not giving the expected results. You see, you cannot persist in error.  When a policy is not working, you stop it.  Sometimes the International Monetray Fund (IMF) and World Bank give us policies that may not suit our situation or work. So, you have to stop it. But, very importantly, this administration needs to continue to engage the stakeholders.

    Your take on decent job

    As the employers’ representative and the voice of businesses in Nigeria, what we preach is responsible enterprises. They align with the ILO principles of decent work absolutely. We align with the ILO concept that labour is not a commodity and should not be treated as such.

    In our engagements, we have emphasised the need for decent work. Not only that but also for those at the global level – business rights – because businesses are also delving into human rights. It is quite interesting and we align with that concept.

    What is your advice to the government?

    We urge this administration to remain focused on its reforms. The government should take a second look at the priority. They should focus on the action that will enhance its seven-point agenda. There is the need for serious coordination. While we commend the efforts of the Minister for Finance and Economy, we believe much is needed to be done in coordinating the inter-ministerial activities, so that the failure experienced in the last administration will not continue.  Lastly, they should deepen engagement with the private sector and other stakeholders.This will be helpful not only to the government but also to the economy.’

  • Taming unemployment surge

    Taming unemployment surge

    Unemployment in Nigeria is a matter of concern as there is a large population of people without jobs in the country.How can the government and stakeholders bridge the gap? TOBA AGBOOLA asks.

    Unemployment refers to a situation where a person actively searches for employment but cannot find it. It is  a key measure of the health of the economy.

    Recently, the International Labour Organisation’s World Employment and Social Outlook (WESO): Trends 2024 reported that joblessness and the jobs gap that have fallen below pre-pandemic levels have shown signs that global unemployment will rise in the year.

    According to the ILO WESO, the first of its kind in 2024, “labour markets have shown surprising resilience despite deteriorating economic conditions, but recovery from the pandemic remains uneven as new vulnerabilities and multiple crises are eroding prospects for greater social justice”.

    It projects that the labour market outlook and global unemployment will both worsen.

    “In 2024, an extra two million workers are expected to be looking for jobs, raising the global unemployment rate from 5.1 per cent in 2023 to 5.2 per cent,’ it states.

    In the same vein, the world leaders and governments are told to be more worried of the growing inequalities and stagnant productivity.

    In Nigeria, unemployment has been a major  challenge facing the country over the years.

    Nigeria needs to create, at least, 3.6 million new jobs yearly to get unemployment down to five per cent by 2033, Agora Policy, a thinktank and non-profit organisation stated in a policy memo.

    The latest data from the national Bureau of Statistics (NBS) shows that the unemployment rate among youth increased to 7.2 per cent (from 6.9 per cent) in the second quarter of last year, while global consulting firm KPMG projected that Nigeria’s unemployment rate would rise further to 40.6 per cent (from 33.3per cent) in 2023/24.

    The question is: What are the possible solutions to the crisis?

    Experts pointed out that to arrest the drifting unemployment situation, five sectors of interest to watch are insecurity,  education, science and technology, Small and Medium Scale Enterprises (SMEs), agriculture and infrastructure.

    President, Association of Senior Civil Servants of Nigeria (ASCSN), Dr. Tommy Okon said one major area that the government should pay attention to is insecurity. He said this would build the investor confidence.

    Okon advised that the government should revisit the issue of state police, adding that this is very necessary.

    “They have to control and tame insecurity to enable people to go into farming, both in small and mechanism farming where foods can be produced for export for foreign exchange earnings.

    “Apart from this, it will build the investor confidence. This will help in job creation,” he said.

    Okon suggested the re-organisation of Nigeria’s technical and non-academic learning protocols to improve specific skills in areas critical for improvements in the competitiveness of targeted sectors, this could tame rising unemployment.

    He said: “There should also be a positive impact in managing the educational system. The education curriculum should be look into. There is need to rejig the system. Enough of white collar job.

    “This could include trade schools aimed at providing necessary skills for particular sectors.This will encourage manufacturing.

    Okon said the government should pay less attention to the  International Monetary Fund (IMF) and the World Bank, adding that the country is not yet ripe for their policies.

    “The government should pay less attention to their policies.What can work out in foreign companies in terms of IMF and World Bank policies may not work out in our country.

    “The Ministry of Science and Technology should also focus on our local manufacturing and see how to encourage them. The government must diversify the sectors to move from consumption to production,” Okon said.

    Read Also: Tinubu to University unions: prioritise dialogue to avoid frequent strikes

    Chief Executive Officer, Centre for the Promotion of Public Enterprise (CPPE), Dr Muda Yusuf, said the unemployment situation is quite scary and the implications are very frightening, adding that the job situation can only be as good as the state of the economy.  It is economic activities that create jobs.

    He said: “Therefore, the way out is to fix the economy.  All classes of investors or prospective investors are critical to fixing the problem- small businesses, medium and large companies. 

    “But the most urgent that needs to be tackled are the macroeconomic issues, infrastructural bottlenecks and the security challenges.These are the first major steps necessary to be undertaken.

    Yusuf said since the beginning of the insurgency in the Northeast, banditry in the Northwest and kidnapping in the Southeast and Southwest, many people in the agricultural sector have lost their jobs, as they can no longer go to their farms.

    “So, tackling insecurity is a very key solution to the problem.The second is to look at the curriculum in our schools, especially in our tertiary institutions,” he said.

    Yusuf claimed the school curriculum did not reflect the demands of society or that of the economy.

    “We have a curriculum that has been put in place for 10-20 years; it is not likely to be relevant to the needs of today except for a few cases like medicine, pharmacy, and the rest of them. But even for those, the kind of methodology, equipment, and diagnosis that people used 10-15 years ago is not the same thing that they use now.

    “Hence, getting the curriculum to be in alignment with the demands of the economy is also a very important factor,” he added.

    The CPPE boss stressed the need to create an environment that would enable more SMEs to thrive, saying small businesses create more jobs than big businesses.

    He explained: “If you have an environment where it is very difficult for small businesses to survive, where many of them are closing shops, they are also contributing to unemployment. To reverse that, we need to create an enabling environment for small businesses.”

    He also noted that the government needed to put in place mechanisms that would address the challenges of high energy costs, high transportation costs, microeconomic problems, foreign exchange and credit facilities and strengthen their capacity to manage their businesses well because SMEs are very critical to job creation. They need more support than we are giving them.”

    Agora Policy said Nigeria can solve its rising unemployment challenges by resolving broader macroeconomic challenges that limit growth across the board.

    Recently, the Federal Government availed Micro, Small and Medium Enterprises (MSMEs) and the manufacturing sectors of N200 billion to create more job opportunities.

    Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Nura Rimi, stated this in a message at a capacity building for MSMEs in the Northcentral held in Lokoja, the Kogi State capital.

  • We’ll consider economic factors before fixing new minimum wage, says NECA

    We’ll consider economic factors before fixing new minimum wage, says NECA

    The Nigeria Employers’ Consultative Association (NECA) has said every parameter will be considered before the committee will agree on a new minimum wage.

    The parameters  include inflation, exchange rate, cost of doing business, and the ability to pay.

    Speaking with The Nation, the Director-General of NECA, Mr Adewale-Smart Oyerinde, who is also a member of the committee on new minimum wage, said they would discuss with employers  with passion, open mind, good faith and will.

    He said there is a standard parameter for setting up a minimum wage by the International Labour Organisation(ILO) and this would be adopted in their deliberation.

    Oyerinde said the two key parameters are the need of workers and their families, and the economic context.

    “We know that the expectation is very high for both the workers and the employers. For us, we are going into deliberation with an open mind and expecting candid conversations.

    “And before we arrive at a meaningful minimum wage, we will sit down, look at those parameters and the realities on the ground within the context of the inflation rate, interest rate, ability to pay and the economy as a whole. Bringing those parameters together, hopefully, we can arrive at a workable, realistic and positive minimum wage for  workers in 2024,” Oyerinde said.

    Read Also: Tinubu to University unions: prioritise dialogue to avoid frequent strikes

    On the proposed N200,000 minimum wage by the Trade Union Congress (TUC), Oyerinde said: “ It is okay for a party to have s certain figure in mind, either N200,000 or N150,000. But it all depends on the parameters on ground. For instance, there are still conversations and research going on within our group and we will soon arrive at conclusion.’’

    On the living wage, he said: “There is no global framework for setting a living wage as of this moment. Even at the ILO level, the conversation on a living wage is still on. It is a concept that is acceptable to employers, and the global community, but there is no global framework on which the conversation can be hung. That framework is still being discussed.

    ‘‘However, for minimum wage, it is an agreed framework. Convention 131 sets that pattern for us all to follow; hopefully, we will activate it this year to arrive at a reasonable minimum wage for everyone.”

  • PENGASSAN rejects Renaissance Group’s bid for Shell assets

    PENGASSAN rejects Renaissance Group’s bid for Shell assets

    • Vows to protect members

    Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has warned Shell Petroleum Development Company Limited (SPDC) over the intended sale of its Onshore Assets to the Renaissance Group, saying it is unknown to them.

    According to the union, the group is an assemblage of unknown entities with no proven track record in managing such diverse assets.

    The Renaissance Group is a consortium of ND Western Limited, Aradel Holdings Pic. The Petrolin Group, FIRST Exploration and Petroleum Development Company Limited and the Waltersmith Group.

    In a statement, PENGASSAN President, Comrade Festus Osifo and General Secretary,  Lumumba Okugbawa, said one of the companies that made up the consortium has a history of subjugating workers and subjecting them to hardship as exemplified in the  management of OML 34.

    Read Also; Edo guber: I won’t be bullied out of race, says Philip Shaibu

    The union said: “Our Shell/SNBO Branch of PENGASSAN has further communicated  subsequent information presented to our members by Shell Management on the planned sale.

    “We reject without equivocation the terms affecting employees that were communicated in the presentation to our members.

    “Another company in the group has a penchant for preventing workers from unionising and thus stiffening their condition of services.

    “Any attempt to transfer the assets without resolving issues affecting our members will be met with the stiffest resistance the industry has ever witnessed.

    “The group must come clean with its intention(s) and be ready to have serious engagement with the association and not the jamboree that Shell Management is engaging in.

    “We have communicated to our Shell/SNBO Branches not to be distracted but to focus on the CBA negotiation that is due about a week from the industry regulator, JV Asset partners (NNPCL, Non-Operated Asset Partners) and other stakeholders are hereby put on notice.”

  • Workers’ hope rises over new minimum wage

    Workers’ hope rises over new minimum wage

    As the Federal Government is working towards a new minimum wage, which is expected to commence very soon,workers across the country are full of expectations.TOBA AGBOOLA writes.

    Given the hyper inflation in the country, there could be no better time for workers to ask for a wage increase.

    Experts have supported the need for an increased minimum wage, saying the last few years had been unpleasant as real disposable incomes and  the naira, among others, were affected.

    Also, there have been continuous rise in food prices, due to factors like the weakening naira, climate change and escalating insecurity.

    The National Bureau of Statistics (NBS) Consumer Price Index (CPI) stated that the accelerated headline inflation hit 28.2 per cent last November and food inflation 32.8 per cent.

    The World Bank also said the country’s inflation eroded the N30,000 minimum wage by 55 per cent, thus reducing household expenditure.

     There have been several minimum wage increases. In 1990, from N3,000, the minimum wage went up to N7,500; in 2010, it hit N18, 000 and from N18, 000 to N30, 000 in 2018.

    The effect of the inflationary pressure cannot be be overemphasised as it shrunk the value of workers’ income, stretched budgets, and even forced many to cut down  their purchases during the festive season.

    True, the removal of subsidies on petroleum products further worsened the challenges faced by workers.

    It unleashed severe pains and contributed to galloping inflation even as it increased inequality and poverty, experts added.

    However, it was learnt the Federal Government is doing everything possible to ensure that the minimum wage is commensurate with the prevailing cost of living.

    It was the President Bola Tinubu who first hint of a new minimum wage. Following the removal of fuel subsidy and unification of the naira, he, while delivering a speech last July, promised an upward review of the national minimum wage.

    Again, the President, in his New Year’s message, assured workers that the New Minimum wage would take effect very soon.

    Prior to this, the President announced a six-month temporary wage increase for some workers.

    The wage increase, which has taken effect, was to help cushion the effects of the fuel subsidy removal, which has led to a surge in the cost of living.

    “Based on our talks with labour, business and other stakeholders, we are introducing a provisional wage increment to enhance the federal minimum wage without causing undue inflation.

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    “For the next six months, the average low grade worker shall receive an additional N25,000 per month,” Tinubu had said.

    Again, in his New Year’s speech, he said: “The economic aspirations and the material well-being of the poor, the most vulnerable, and the working people shall not be neglected. It is in this spirit that we are going to implement a new national living wage for our industrious workers this new year. It is not only good economics to do this; it is also a morally and politically correct thing to do.’’

    Projecting into the year, especially as they anticipate the commencement of negotiations for the new National Minimum Wage, effective April 1, the experts believe that the quest for a new wage that is sufficient to provide a decent living for workers and their family members was crucial.

    They said a well-motivated and well-remunerated workforce has a positive impact on productivity and national development, adding that the pursuit of a national living wage is not merely an economic necessity, but also a moral imperative.

    Stakeholders’ expectations

    In view of this, the Nigerian Employers Consultative Association (NECA) called on the Federal Government to revive the Committee on the new National Minimum Wage.

    NECA, also a member of the Tripartite Committee set up by the government, noted that the government had requested for the nominees from the Organised Private Sector (OPS) and the Organised Labour,  which according to body, been forwarded.

    Director-General of NECA, Adewale Smart Oyerinde, said as a representive of the OPS, said: “Towards the end of last year, November and December, the government had requested for the nominees of the Organised Private Sector, which we have forwarded to them and, I believed, organised labour have forwarded theirs to them.

    “What we are expecting is for the government to actually call the committee to commence their work immediately.

    “We are hoping that before the end of this month, the committee will be called to commence deliberation that will lead us to arrive at the new national minimum wage for  workers.”

    He canvassed the negotiation of a new wage that is commensurate with the realities of the situation.

    “We think the N30,000 minimum wage is no longer realistic because our economic situation and inflation rates have eroded the purchasing power of an average worker, and the household also is feeling the pinch.

    “For the employers, we support a realistic minimum wage. Within the context of the negotiation, there are other variables beyond inflation rates. You also look at the ability of businesses to pay, you also look at the economic situation and productivity.’’

    While he mentioned that there had been a conversation about the concept of a living wage and the reasons a living wage is desirable, he said globally and even at the high end, there is no framework for arriving at a living wage.

    He added that the committee tasked with negotiating a national minimum wage  framework based on the International Labour Organisation (ILO) Convention 131 would still have to review President  Tinubu’s New Year’s speech on the matter.

    Oyerinde commended President Tinubu on the move to reduce the entourage of government officials, adding that this is one of the ways to reduce the cost of governance.

    President, Nigeria Labour Congress (NLC), Joe Ajaero,  hoped that the new minimum wage would approximate a living wage, saying that the Tripartite Committee has its job cut out for it.

    However, he said, the government should, in the first quarter of the year, fulfill its promises to the citizens as contained in the 15-point agreement signed on October 2, 2023, during negotiations with labour and the government to cushion the impact of fuel subsidy on Nigerians.

    Part of the agreements, the NLC chief said, was the issue around the Compressed Natural Gas (CNG) buses and the conversion kits, calling on the government to implement the agreement.

    Ajaero said the buses should be the produced by local manufacturers to boost local content. Besides, he said it would make fares cheaper.

    He said the Congress expects the Port Harcourt Refinery to be operational.

    Also, Deputy President, Trade Union Congress of Nigeria (TUC), Dr. Tommy Okon, urged the government to encourage employers to pay the national minimum wage. He also said the Organised Labour would take cognisance of education, health, housing, and transport.

    Recall that the NLC and TUC listed conditions for the proposed review of the national minimum wage, saying the continuous rise in inflation and the devaluation of the naira must be checked before the salary increase announced by the Federal Government could be considered.

    The Organised Labour explained that the cost of virtually all consumables had been on the rise, stressing that if this should continue, any amount that would be added to the minimum wage might not meet the expectations of workers.

    The TUC had demanded a minimum wage of N200,000 monthly, while the President, the National Union of Banks, Insurance and Financial Institution Employees (NUBIFIE), Abakpa Anthony,proposed the minimum wage of between N120,000 and N150,000, adding that the high-earning workers and their poorly paid counterparts shop in the same market.