As some states look forward to reopening their COVID-19-battered economies amid workers agitation to resume at their workplaces, stakeholders are considering various options that can help minimise the effects of the lockdown, TOBA AGBOOLA writes.

 

The growing negative impact of the COVID-19 pandemic on the economy has induced a drastic review of the revenue and profit projections of corporate organisations.

Stakeholders have said recession is coming and that it may be Nigeria’s worst in 30 years. They said by the time the lockdown was lifted, Africa’s largest economy might be facing a recession that could last until next year.

However, they are  confident that only aggressive responses through the government coordination will lead to positive economic and humanitarian results.

Speaking on post-CONVID-19 stimulus initiatives by the government to revive the economy, the Director-General of the Nigeria Employers Consultative Association (NECA), Dr. Timothy Olawale,  said since the arrival of the index case in the country in February, NECA had proposed several interventions to governments, at the federal and state levels, in developing stimulus packages for industries to minimise the impact on businesses as well as its workers.

He said: “We believe that with the growing spread of the COVID-19, it is having a significant and unsettling impact on businesses and with implications for employers of labour, the main emphasis is and should be on containing and mitigating the impact.”

He explained that the economic impacts were significant, and many companies were feeling their way towards understanding, reacting to, and learning lessons from rapidly unfolding events.

“In the short term, to minimise the potential job loss, we suggest as the practice in other climes, that government augment payment of salaries of workers’ of companies that are worst hit by the impact of the pandemic by at least 50-70 per cent for the next four months.

“To cover for workers that are temporary and contract staff, employers can submit a list of all contract staff with BVN numbers who will be compensated, subject to confirmation of employment status and consistent inflows.

“For those without BVN, the employers can be offered a zero-interest loan through the Bank of Industry (BOI) for three months, which is equivalent to the total payments they make to casual workers. These companies can be tracked to ensure that disbursements are made into bank accounts, thereby guaranteeing subsequent financial inclusion.

“We also proposed that Federal Government grant tax waivers, provision for restructuring of existing loans, lowering of interest rate through the Central Bank of Nigeria, and other fiscal interventions to businesses in order to sustain businesses and protect job loss.”

The Lagos Chamber of Commerce and Industry (LCCI) Director-General, Mr. Muda Yusuf, called for the government’s review of the financial support package that it had pursued in the wake of the deadly COVID-19.

According to Yusuf, the government has to redesign the recovery strategy tool by doubling the level of access to emergency policies that will jump-start the economy.

This, according to Yusuf, could be fast-tracked by expanding the use of fiscal precautionary measures through creation of short-term liquidity by considering options to help companies meet their financing needs.

Yusuf argued that if Nigeria’s real GDP growth downgraded to -3.4 per cent in the year, as against the IMF’s forecast of two per cent growth earlier in the year, following the institution’s Article IV Consultation, there is urgent need for the Federal Government to look outside the box because the lockdown is expected to significantly affect economic activities in Nigeria.

“This is because in light of increased external and domestic pressures following COVID-19, the IMF revised its 2020 growth forecast for Nigeria to a -3.4 per cent from two per cent.

“The general theme remains the high level uncertainty surrounding the pandemic as well as low oil prices.

“The lockdown in major states is expected to significantly affect economic activities in Nigeria.

“To fight this pandemic, the IMF recommends leveraging emergency funding to support healthcare spending and provide social protection.”

He, however, added: “Beyond the serious human impact of the CONVID-19 pandemic, it is obvious that the economic consequences will be severe, especially for Nigeria that fall into the group of emerging markets and developing countries with exporters of goods and economies with poor health systems.”

President, Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), Comrade Oyinkan Olasonoye, said  while governments and the Central Bank of Nigeria (CBN) intend to adopt large-scale measures to save jobs and enterprises, and provide workers with support, not all workers or enterprises might benefit from the measures.

She said: “We are worried that for the informal economy workers, lockdown due to the pandemic means loss of income with no possibility of receiving unemployment benefits.

“Informal micro and small enterprises that constitute 80 percent of enterprises are generally out of reach of government policies.

“Part-time workers, many of who are women, temporary workers, or workers under short-term contracts and in the digital gig economy are frequently not eligible for unemployment benefit or income support.”

President, Nigeria Labour Congress (NLC),Comrade Ayuba Wabba,  said in adopting short-term responses to the CONVID -19, urgent attention should be devoted by the government to protecting low-income households.

“This means income support measures are not broad enough to cover the most vulnerable workers and the enterprises that employ them,” he said.

Wabba, who argued that informality and limited fiscal space add to the difficulties for palliatives measures for Nigerians, however, said: “Income support could be extended through non-contributory social security schemes or existing cash transfer programmes. Support could also be offered temporarily to informal enterprises.”

 

By Toba Agboola

As the Coronavirus pandemic continues to ravage countries, the need for businesses to remain in operation has been emphasised.

While governments and partners are working to stop transmission of the virus and keeping children and families safe through isolation and social distancing, an expert has also stressed the need for businesses not to be on lockdown, proffering ways on how businesses could still be in operation amid the crisis.

A business communications and public affairs advisor, Segun McMedal, who spoke on how best businesses should respond to survive the onslaught, said this was one of the best times for businesses to step up and help their customers in navigating the crisis period.

According to him, this is the time to deepen one’s business’ positioning in the minds of their stakeholders to be relevant during and post-COVID-19 crisis.

Among the steps proffered, McMedal spoke on the need to embrace collaborative business.

He said in collaborative business, companies coordinate with other companies to maximise their efficiency and profitability.

Collaborative business, according to him, is used by companies to team up with competitors and suppliers for efficiency, and it could also be used as a sales strategy to capture more market share.

He also spoke on maintaining and increasing one’s marketing budget and working remotely. “This is the best time to increase your investment in public relations. Almost all the industry and profession have something to say to the virus to navigate the COVID-19 era. This is one of the times when knowledge or professionalism counts to provide relevant information to customers to manage the crisis,” he said.

From Frank Ikpefan, Abuja

Federal Parastatals and Private Sector Pensioners’ Association of Nigeria (FEPPPAN), others in Ekiti and Nasarawa states have appealed to President Muhammadu Buhari to include vulnerable Nigerian pensioners in the COVID-19 palliatives being distributed nationwide.

The pensioners said this would help cushion the hardship of the senior citizens during the lockdown period ordered by the Federal and some state governments.

Their plea came in a separate  statement by their union executives. In it, Federal Government pensioners, through its President-General, Chief Temple Ubani, said  the appeal was necessitated by the perennial vulnerability of pensioners in the country, which has been exacerbated by the strict lockdown of Ogun, Lagos and the  Federal Capital Territory. He said that pensioners need money to procure both drugs and other necessary needs to stay alive while the lockdown persist.

“We most humbly request the President to please include Nigerian Retirees spread all over the Nigerian states and the FCT in the palliatives meant for distribution to vulnerable Nigerians. Pensioners are among the most vulnerable in any community because of their age and health,” Ubani said, adding that  the pensioners can be reached most effectively through their pay-points; such as: The Treasury Funded through PTAD, The Self Funding and Private Sector Pensioners through their former employers and, the Contributory Pensioners through their PFAs.

In Ekiti, the Nigeria Union of Pensioners (NUP), said the palliatives are needed to enable its members cope with the effects of the lockdown. Ayo Kumapayi and Azeez Agbaje, Chairman and Secretary of the union respectively, made the appeal in a statement in Ado-Ekiti.

They said in a statement that the request for palliatives had become necessary following the extension of the lockdown by two more weeks in the state. According to the statement, the lockdown has subjected many pensioners to hunger and untold hardship, thus resulting in health complications and even death of some of the members.

“While we commend our governments for their efforts to cushion the effects of this pandemic on the vulnerable citizens, it is important to call for more attention to the plight of other groups, they said, adding, “we have recorded several deaths of our members since this lockdown began, most of them from 70  years and above, while some are currently in critical condition for some reasons including hunger.

“The lockdown is a double jeopardy on our members because some of them were still being owed pension arrears by government while their children who are supposed to cater for them are also trapped in the lockdown.

“It is very important that our government reach out to our members through the route used for the payment of their pension and allowances or pass through the union so as to save them from untimely death,” the statement said.

It said the CCT Scheme of the Federal Government ought to have captured pensioners as they were among the vulnerable persons in the society based on their age and health.

“We are, therefore, appealing to governments, corporate bodies and individuals to save our souls and reach out to our members,” the News Agency of Nigeria, reported.

Also, the Organised Labour in Nasarawa State has appealed to the government to include pensioners and junior workers living with disability in any palliative meant to cushion the effects of the partial lockdown in the state.

The Chairmen of Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) in the state made the call in separate interviews with reporters  in Lafia.

Comrade Yusuf Iya, NLC Chairman said that civil servants who are  living with disabilities need support to cushion the effects of the partial lockdown, saying the economic situation  is biting harder with the COVID-19 outbreak, hence pensioners should be captured in whatever palliative the government would give to the vulnerable.

Iya, however,  praised Governor Abdullahi Sule for the measures taken so far, including distribution of palliative to the vulnerable, imposition of curfew as well as the stay-at-home  directive for all civil servants below  grade level 12.

He also urged government at all levels to prioritise payment of workers salaries. The NLC chairman also appealed to the  state government to provide protective materials, such as hand sanitisers  and  face masks to all civil servant exempted from the stay-at-home directive.

On his part, Mohammed Doma, TUC Chairman in the state said civil servants, especially the junior workers and pensioners should be   considered for  support at this time.

He said that though the partial lockdown was the way to go at this time, government needed to do more to cushion the effects on the people.

“Most people who are earn their living daily also need support from the government because their means of livelihood has been blocked as a result of the lockdown,” the TUC Chairman added.

Doma urged the government to ensure thorough screening of all the people entering the state irrespective of their status in society.

He called on workers and other  members of the public to obey  preventive guidelines of social distancing, washing hands regularly with soup under running  water and using hand sanitisers to contain the spread of the virus.

By Toba Agboola

The COVID-19 epidemic may wipe out about 195 million full-time jobs or 6.7 per cent of working hours globally in the second quarter of the year, a report by the International Labour Organisation (ILO) has said.

The report highlighted some of the worst affected sectors and regions, and outlines policies to mitigate the crisis.

It indicated that large reductions are foreseen in the Arab states (8.1 per cent, equivalent to five million full-time workers), Europe (7.8 per cent or 12 million full-time workers) and Asia and the Pacific (7.2 per cent or 125 million full-time workers).

Huge losses are expected across  various income groups, but especially in upper-middle income countries (seven per cent, 100 million full-time workers). These far exceed the effects of the 2008-9 financial crisis.

The sectors most at risk are accommodation and food services, manufacturing, retail, and business and administrative activities.

The report highlighted that the eventual increase in global unemployment during the year would depend substantially on future developments and policy measures.

According to the report, there is a high risk that the end-of-year figure will be significantly higher than the initial ILO projection of 25 million.

More than four out of five people (81 per cent) in the global workforce of 3.3 billion are affected by full or partial workplace closures.

ILO Director-General Guy Ryder said: “Workers and businesses are facing catastrophe, in both developed and developing economies. We have to move fast, decisively, and together. The right, urgent, measures could make the difference between survival and collapse.”

The report describes COVID-19 as the worst global crisis since World War II. The updated version includes sectoral and regional information on the effects of the pandemic.

According to the study, 1.25 billion workers are employed in the sectors identified as being at high risk of drastic and devastating, increases in layoffs and reductions in wages and working hours.

Other regions, particularly Africa, have higher levels of informality, which combined with a lack of social protection, high population density and weak capacity, pose severe health and economic challenges for governments, the report cautions.

Worldwide, two billion people work in the informal sector (mostly in emerging and developing economies) and are particularly at risk.

The report noted that large-scale, integrated, policy measures are needed, focusing on four pillars: supporting enterprises, employment and incomes; stimulating the economy and jobs; protecting workers in the workplace; and, using social dialogue between government, workers and employers to find solutions are needed to mitigate the effect of the pandemic.

Ryder added: “This is the greatest test for international cooperation in more than 75 years. If one country fails, then we all fail. We must find solutions that help all segments of our global society, particularly those that are most vulnerable or least able to help themselves.

“The choices we make today will directly affect the way this crisis unfolds and so the lives of billions of people.

“With the right measures we can limit its impact and the scars it leaves. We must aim to build back better so that our new systems are safer, fairer and more sustainable than those that allowed this crisis to happen.”

Meanwhile, the need to treat seafarers with dignity and respect during COVID-19 crisis has been emphasised by the ILO.

The ILO urged that the seafarers should be treated as key workers, and be exempted from travel restrictions during the COVID-19 pandemic.

A statement by officers of a special ILO tripartite maritime committee of the Maritime Labour Convention (MLC, 2006) also called on ILO member states to do all that they could to facilitate the delivery of essential medical supplies, fuel, water, spare parts and provisions to ships.

The tripartite committee, which represents seafarers, ship owners and governments, reported that in some parts of the world suppliers have been prevented from boarding ships to give masks, overalls and other personal protective equipment to crews.

According to the statement, ports in some parts of the world have also refused to allow some ships to enter because they had previously docked in areas affected by COVID-19, preventing vessels from obtaining essential supplies.

The committee also underlined the importance of ensuring that the flow of essential goods, energy, food, medicines and other products around the world is not disrupted by measures that impede the safe and efficient movement of ships and the seafarers who operate them.

By Toba Agboola

The Minister of Labour and Employment, Dr. Chris Ngige has commended health workers for their role in the fight against COVID-19 pandemic.

The commendation was contained in a message by the Minister to the President of the National Association of Nigerian Nurses and Midwives (NANNM), Mr Abdulrafiu Adetunji.

According to the Minister, the account of the battle on Covid-19 would be incomplete without the roles of the healthcare professionals – doctors, nurses/midwives, lab technicians and allied health professionals.

“They are the bulwark, the frontline soldiers in the war against the enemy – the Coronavirus and its attendant disease condition COVID-19,” Ngige said.

He said the World Health Organisation (WHO) has dedicated this year’s World Health Day to the nursing with a theme, ‘’Support nurses and midwives,’’ in view of their critical role in battle against the raging pandemic.

The Minister recalled that the circumstances in which the nurses and midwives operate to save lives, expose them to numerous health hazards and in some cases, death and noted the appropriateness of the theme of this year’s celebration.

He further paid tributes to the efforts of the members of the union in fighting the pandemic, urging them not to relent in the various battles of the war, especially in the epicentre of the pandemic in Lagos, FCT and other states.

He assured them of the continued support of the Federal Government, and prayed God to  protect them.

 

 

The International Labour Organisation (ILO) has postponed it’s 109th International Labour Conference to 2021, following the severe restrictions on travel and personal interaction implemented worldwide due to coronavirus disease.

According to a statement, the Governing Body of the ILO said it has deferred the upcoming session of the yearly IL onference  – scheduled fo May 25 to June 5 in Geneva – due to the spread of COVID-19.

ILO meets once yearly in Geneva, Switzerland to discuss key world of work issues, craft and adopt International Labour Standards and monitor their implementation.

It brings together government, worker and employer representatives of the ILO’s 187 member states.

 

With the hope that current crisis of coronavirus will soon be over and as a way of addressing the impact, labour has suggested that the Federal Government may have to re-organise ways of governance,  mostly in the area of budgeting, TOBA AGBOOLA reports.

 

 

The organised labour has expressed conviction that the post-coronavirus period would call for sustainable, prompt budget releases.

IndustriALL Global’s Vice President, Issa Aremu, said the crisis has exposed the underbelly of poor governance, characterised by complacency, indifference and unnecessary competition among government agencies.

He noted that it was remarkable that the National Assembly had also passed the Emergency Economic Stimulus Bill 2020 to complement the plans of the executive arm, stating that Nigerians must operate collectively and make sure that coronavirus, being an opportunistic disease, would not overwhelm the nation.

He stated that fiscal authorities must complement the monetary policies of the Central Bank of Nigeria (CBN)  to cope with the challenges of diversification and the impact of COVID-19 on the economy.

According to Aremu, this is not the time for uncritical cut in public spending: “Already, Nigeria has lowest budget per capita in the world. Additional reduction in the size of the 2020 budget by about N1.5 trillion, as part of the measures to address the impacts of coronavirus disease on the Nigerian economy will only undermine economic recovery and employment creation.

“CBN has rightly directed that all deposit money banks should increase their support to the pharmaceutical and healthcare industries and support for funding intensive care as well as in training, laboratory testing, equipment and R&D.

“The bank has increased financial intervention by N100 billion in loan this year to support the health authorities to ensure laboratories, researchers and innovators work with global scientists to patent and or produce vaccines and test kits.”

Aremu said it was commendable that the CBN Governor, Godwin Emefiele, initiated proactive measures to ameliorate the impact of the disease on the economy that include cutting rates from nine to five per cent per year for one year from March 1; grants extension of moratorium on all CBN intervention facilities effective March 1 and N50billion targeted credit facility through NIRSAL Microfinance Bank for households and and small- and medium-sized enterprises (SMEs) hard hit by Covid-19.

He said: “It is also significant and commendable that President Muhammadu Buhari had promptly approved a N10 billion grant (about $27 million) to fight the spread of coronavirus, or COVID-19, and already released to Lagos State, which is still counting the highest number of coronavirus cases.”

On the lockdown, Aremu said it must be complemented with direct and targeted social transfer to the poor in formal and informal sectors whose per day incomes are endangered.

He said:“With the spirited national efforts, this singular pandemic will come to pass, but the poverty and underdevelopment challenges would persist.

“Coronavirus crisis is  another costly opportunity to reinvent an economy like China’s with remarkable resilience that has tamed the virus and restoring growth and development. Meanwhile we remain under lock and key against an invisible virus, ask about the plight of your neighbors and send relief materials for those in need.”

Nigeria Labour Congress (NLC) President, Comrade Ayuba Wabba raised the alarm that the ‘bigmanism’ attitude of wealthy and influential members of the society may put more Nigerians at risk.

Wabba said Nigeria appears not prepared to contain the pandemic, saying: “No doubt, we are not prepared for the avoidable tragedy that looms over us. We do not have the requisite infrastructure for diagnosis and treatment on a large scale.”

As more lockdowns of critical sectors of the economy loom, NLC cautioned that workers must not be cannon fodders for these socio-economic fallouts.

Read Also: Wike relaxes restrictions for Easter

 

“In all of these, we demand job and wage protection. To make this possible, factories and businesses will require fiscal stimulus, financial aids and other macro-economic support incentives at this critical time.

“For millions of workers in the informal sectors including our members in the transport, in the markets and all categories of artisans who are involved in involuntary lockdown, we demand cash grant through their associations to enable them to cope during this difficult time,” Wabba said.

According to a statement by the Centre for the Study of Economies for Africa (CSEA)CSEA), the country is still grappling with recovery from the 2016 recession, which was a fall out of global oil price crash and insufficient foreign exchange earnings to meet imports.

The centre said in the spirit of economic recovery and growth sustainability, the national budget for the fiscal year was prepared with significant revenue expectations but with contestable realisations.

“The approved budget had projected revenue collections at N8.24 trillion, an increase of about 20 per cent from 2019 figure. The revenue assumptions are premised on increased global oil demand and stable market with oil price benchmark and oil output at $57 per barrel and 2.18 million barrels per day.

“The emergence of COVID-19 and its increasing incidence in Nigeria has called for drastic review and changes in the earlier revenue expectations and fiscal projections. Compared to events that led to recession in 2016, the state of the global economy poses more difficulties ahead as the oil price is currently below $30 with projections that it will dip further going by the price war among key players in the industry. Unfortunately, the nation has grossly underachieved in setting aside sufficient buffers for rainy days such as it faces in the coming days.

“In addressing these daunting economic challenges, the current considerations to revise the budget downward is inevitable. However, certain considerations that are expected in the review must not be left out. The assumptions and benchmarks must be based on realisable thresholds and estimates to ensure optimum budget performance, especially on the non-oil revenue components,” it stated.

Furthermore, the centre stated that cutting expenditures must be done such that the already excluded group and vulnerable are not left to bear the brunt of the economic contraction.

It said the economic and growth recovery programme, which has the aim of increasing social inclusion by creating jobs and providing support for the poorest and most vulnerable members of society through investments in social programmes and providing social amenities will no doubt suffers some setbacks.

” Besides, the downward review of the budget and contractions in public spending could be devastating on poverty and unemployment. The last unemployment report released by the National Bureau of Statistics (NBS) ranks Nigeria 21 among 181 countries with an unemployment rate of about 23.1per cent. The country has also been rated as the poverty capital of the world with an estimated 87 million people living on less than $2 a day threshold.

“The decision to cut the retail price of gasoline under a price modulation arrangement is a welcome development. The cut is expected to curb rising inflation, especially food price inflation which will mainly benefit the poor.

“Basically, the government essentially must lead economic diversification drive. It is one practicable way to saddle through the current economic uncertainties and instabilities.

What the consequences of COVID-19 pandemic should further offer the Nigerian economic managers and policymakers, is that the one-tracked, monolithic reliance on oil is failing. Diversification priorities to alternative sectors such as agriculture, solid minerals, manufacturing and services sectors, should be further intensified,” it stated.

By Toba Agboola

The Nigeria Labour Congress (NLC) has demanded that jobs and wages be protected during the lockdown.

Its President, Comrade Ayuba Wabba, said to make this possible, factories and businesses would require fiscal stimulus, aid and other incentives.

Wabba said workers in the informal sector should be given grants through their associations to enable them to cope during this time.

Wabba said: “As it is, we foresee a situation where more factories and workplaces will experience closure and reduction in working hours. We insist that workers must not be cannon fodders for these socio-economic fallouts.”

He, however, saluted the enormous sacrifices of health workers and medical practitioners who are working day and night in the fight against this pandemic.

Ayuba said: “Anything short of this would be an invitation to mass hysteria, confusion and widespread unrests which would extremely complicate the current prevalence of the Covid-19 pandemic.”

He called on the government to provide suitable quarantine facilities that inspire confidence in citizens, and assures everyone that has infection and subsequent isolation is not a death sentence. Putting in place other preventive measures against Covid-19, such as hand washing cum sanitisers, including fumigation of public places, proper protective equipment for health workers, social distancing, and prompt reporting and follow up on suspected cases is far better than treatment.

To contain the pandemic, NLC called on the government to mobilise and train a standby health workforce in case the infection level escalates.

He said: “The standby workforce should be trained, especially with specific knowledge on dealing with Covid-19. It would also be useful to call in experienced   healthcare givers no longer in active service, and whose health is reasonably robust, to be part of the war against Covid-19. At the rate of this pandemic, all capable hands must be on deck.”