Category: Labour

  • NECA Job Fair to tackle unemployment

    By TOBA AGBOOLA

     

    The Nigeria Employers Consultative Association (NECA’s) pilot Job Fair may be the solution the country needs to solve the perennial youth unemployment problem.

    The programme, with: Promoting Employability for National Development as theme was launched last week in Lagos in partnership with over 24 companies willing to absorb over 2,000 youths that attended the fair, if they meet the standard.

    President of NECA, Mr. Taiwo Adeniyi said the association’s aim  was to bridge the gap between the companies and youths, as well as enhance the employability of  graduates.

    He lamented that  unemployment issue in the country has further been worsened by the fact that some graduates churned out by Nigerian universities are not employable.

    He said: “The case on our hand is not that we do not have graduates, but they are not employable. For example in my place, we have a space that we have been looking for a replacement for the past two and a half years.”

    Director-General of NECA, Mr. Timothy Olawale said the association was concerned about the number of youths being churned our every year without jobs and due to no fault of the youth.

    He stated that the case was more complex when a graduate has to resort to menial jobs like selling snacks or biscuits in a little kiosk, wondering what the future holds for such graduates.

    He said: “We have to show concern and that is why in the past we started a project with Industrial Training Fund (ITF) for graduates to help themselves. We also have another entrepreneurship programme through the Internet.

    “The sad aspect of our educational system is when a graduate is not employable. The project is to help in that way and provide youths with the opportunity to interface with companies.”

    Read Also: NLC urges govt to tackle unemployment

     

    He explained that youths at the fair would have the opportunity of career consulting on how to develop their CV and be in the database of the companies.

    Olawale also said that NECA would look at the option of bringing in their international partners who may be ready to absorb some of the youths for their organisations.

    “This will be one of the opportunities that we will explore at the next International Labour Conference organised by the International Labour Organization (ILO) in Geneva, Switzerland,” he said.

    He reasoned that Europe is challenged with aging population and it may be a good opportunity for them to get good hands from Nigeria, adding that NECA would invite the ILO to come to the country for the programme.

    However, Mr. Tominiyi Oni, who spoke on the theme of the fair, charged youths to do several things that could make it easier for them to get their first jobs, which cut across identifying their purpose, being focused, truthfulness, being ready to sacrifice, and being data savvy, among others.

  • ASUP seeks conclusion of 2010 agreement

    By TOBA AGBOOLA

     

    The Academic Staff Union of Polytechnics (ASUP) has urged the Federal Government to constitute a committee that will renegotiate the agreement it entered into since with the group 2010.

    ASUP’s new President Anderson Ezeibe, who spoke with reporters in Abuja, said: “We are worried because we do not see any form of sincerity, if this level of insincerity is demonstrated at the point of negotiation or renegotiation, then it means that there is no guarantee that we are going to have it implemented.”

    The group decried the non-composition of a visitation panel to federal polytechnics in line with the recent Federal Polytechnic Amendment Act 2019.

    Read Also: Monarch lauds new polytechnic

     

    “Periodically, the government sends visitation panels to go and see how these institutions are faring but as we speak, we have forgotten the last time a visitation panel visited federal polytechnics,” he said.

    He added that if these key issues are not addressed, that may affect industrial harmony in the system. The polytechnics lecturers however expressed hope that their concerns would be addressed as a matter of urgency.

  • How to boost workers’ productivity

    Continuous changes in business dynamics has necessitated the need for employers to prioritise training of workers for improved productivity, writes TOBA AGBOOLA.

     

    According to experts, capacity building and development are part of major ways organisations invest in the workforce for greater immediate and future returns.

    Organisational effectiveness, experts said, rests on the efficient and effective performance of workforce that make up the organisation, while  efficient and effective performance of the workforce in turn, rest on the richness of the knowledge, skills and abilities of the workforce.

    According to experts, capacity building and development is one of the major ways an organisation invests in the workforce for greater return today and even in the foreseeable future.

    They said  continuous clamour for social change to make adaptability and continuous preparation of the workforce is inevitable as the initial acquisition of knowledge and skills is germane.

    President,  Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI), Comrade Olasanoye Oyinkansola while calling for constant capacity building of entrepreneurs, said it will expose them to new ways of doing things, which, would in the long run, improve their products and brand.

    She said currently, there is a great deal of pressure at work, especially in the banking and finance industry, some of which challenge the very core of banking business.

    The emergence of digital technology, according to her, has been the major disruptor that defied business as usual and long-term strategic planning. She added that                                                                  digital revolution has brought about a new set of challenges and opportunities.

    While these technologies are taking away jobs, she said, they are creating new ones, calling for capacity building of bankers to leverage the opportunities provided by this development.

    She said  although there are many categories of training such as management training or sales training, employees with project management skills are an important asset to any organisation.

    Stating that training improves employees’ performance, she argued that the investment in training that a company makes shows employees that they are valued.

    Speaking with The Nation, Director-General, Nigeria Employers Consultative Association (NECA), Mr Timothy Olawale advised workers to engage in continuous self-development and urged employers to provide adequate training for workers if they want to survive the challenges posed by technology.

    He dismissed fears that technological advancement would lead to massive job loss, pointing out that workers should acquaint  themselves with technologies in order not to be caught unaware.

    He said: “What is critical is that as stakeholders, both employers and employees, have roles to play so that workers will continue to be relevant in the work environment. As this development unfolds, workers are supposed to take kin interest self- development.

    “You should not wait until your employer send you on course to update yourself  and be in tandem with latest technology or the digital era that has cropped up in the world of work.

    “While introducing new technology, employers also have responsibilities to ensure that they give existing workers the opportunity to be very relevant by giving them relevant training on the use of those technology,” he said.

    He said further that the body would enlighten its members on the their responsibility and safety of their workers.

    He said: “What is very fundamental is for us to enlighten employers, the government and workers to what their responsibilities are. This is what NECA has been doing over the years.‘’

    National Union of Chemical Footwear Rubber Leather and Non Metallic Products Employees (NUCFRLANMPE), Comrade Goke Olatunji also called on companies to provide the platform to constantly train, not only their workforce, but unemployed youths so that they become employable.

    Read Also: Emotional intelligence skills can enhance productivity, says expert

     

    ‘’If more people have the needed capacity to be employed and are later employed, while their employers open a pension account for them, he said, this will add to the customer base of the Pension Fund Administrators (PFAs),’’ he said.

    He stressed that one of the ways to develop the pension system is to provide jobs for the jobless youths, adding that the firm has taken the initiative to get more people into the workforce by educating them on how to prospect for jobs, which is a form of capacity building.

    “What we are doing is simply to find a way to assist individuals who are prospecting the job market. It is really a give back opportunity for us to advise, counsel and encourage them. If we want people to work, we must also assist them in getting jobs,” he said.

    A robust training and development programme, he said, ensures that employees have a consistent experience and background knowledge, addresses their weaknesses, increases productivity and adherence to quality standards, increases innovation in new strategies and products, reduces employee turnover and enhances company reputation and profile.

    He urged his colleagues in business to constantly invest in themselves and their employees through training and retraining  on the rudiments of credit administration so that Nigeria’s credit administrators can compete favourably with their counterparts globally.

    On his part, President, Association of Registered Insurance Agents of Nigeria (ARIAN), Mr. Ademola Ifagbayi said there is a serious need for insurance firms to train their agents and marketers, especially, now that the insurance industry is going retail. Agents, he said, have a critical role to play in the growth and development of the industry, noting that the marketing and sale of insurance products and services revolves round the agents.

    He said to change the negative perception of Nigerians towards insurance, the marketers of these products have to be trained on the dynamics and the latest tips of persuading the people to buy insurance policy.

    “Any insurance company that refused to train its marketers will die a natural death, in an era that business dynamics keeps changing every day.

    “Though, some underwriters may feel that if they train their agents, they might end up leaving them to work for another company, but it’s an investment worth doing. Companies must give attractive packages to agents in a bid to persuade agents to stay with them for a long time.

    “With that, there will be good return on their investment in these agents, while there would be value for money,” he pointed out.

  • Unions kick against planned pay rise for politicians

    Our Reporter

     

    Organised Labour has kicked against the planned pay rise for the politicians, saying that it will increase violence, poverty.

    Trade Union Congress (TUC), in a   statement signed by its President and General Secretary, Comrade Quadri Olaleye and Comrade Musa Lawal respectively said this must not be allowed to stand because of the dire consequences it will further have on the economy, people and our collective image.

    “We read with consternation the plan by the Revenue Mobilisation, Allocation and Fiscal Commission to review the remuneration of political office holders at a time the local and foreign debt is overwhelming and the country grappling with a lot of economic issues.

    “This is a conspiracy that must not be allowed to stand because of the dire consequences it will further have on the economy, people and our collective image.

    “Does it mean the Federal Government increased the Value Added Tax (VAT) to raise money to pay the politicians? Some countries in Africa now have a unicameral legislature because their former system was eating deep into the national treasury.

    “Why can’t we think along that line, after all, we have a National Assembly that you could hardly see all the members seated at every session. It is the same thing at the state level, yet their absence has never disturbed any session.

    “Imagine a councillor with O’Level result earns higher than a Professor? It is only in Nigeria that ex-governors who served two terms will retire to the Senate yet earn pension from the state.

    It is only in Nigeria that former governors that are jailed for corruption collect salaries and other allowances. This is preposterous and it makes mockery of our system,” the congress said.

    The congress said it was on a report that if the Federal Government succeeds in borrowing the $29. 9billion it applied for, the country’s debt profile would have risen to about $84billion.

    Read Also: Minimum wage: Labour’s threat sends governors to drawing board

     

    “Even the World Bank has warned about the danger and consequences of our debt yet it appears no one cares if the country goes further down in shame.

    The question is, why tax or borrow just to pay politicians and service cronies when over 21 per cent of our able bodied youths are unemployed? We are worried that the insecurity situation arising from unemployment does not bother them?,” the congress said.

    The congress demanded a reduction in the cost of governance. He said: “We are demanding that the cost of governance be drastically reduced.

    We do not need 496 lawmakers. Governors do not need over 500 aides. It is too expensive to maintain. The salaries and allowances of these public office holders in Nigeria is part of the cause of the hardship in Nigeria.

    Half of these political officials’ salaries, if put into proper use, could give unemployed youths useful employment.

    “To this effect, if Nigeria will move forward then there is a serious need for imminent restructuring of the political system.

    For us the leadership belittles the country before the international community when they nurse such ideas now. It is a bizarre thing to do and we condemn it in strong terms. We enjoin the authorities to drop the idea to restrain the do-or-die attitude of some politicians.”

  • How to achieve industrial harmony, by labour

    To make the economy more productive, the organised labour says employers must make the workplace conducive for economic activities to thrive. TOBA AGBOOLA examines the push for industrial harmony.

     

    As the year progresses, guaranteed industrial space in an atmosphere of peace would be needed to deliver an economy that is productive.

    To the Organised Labour, this should be the focus of the country if it going to surmount the present economic challenges. Labour said for a productive economy to be birthed, the workforce must be happy both on and off work premises.

    Expectedly, the Nigeria Labour Congress (NLC) said it would pursue the implementation of the new minimum wage in the states with vigour and ensure that the consequential adjustments of the new wage structure are negotiated at the state level.

    Its President, Ayuba Wabba, who expressed worry about the increasing level of unemployment, said NLC will join the government in seeking solution to the challenge by convoking a national job summit.

    He said: “The Nigeria Labour Congress will mount a very robust campaign for the generation of mass jobs and for existing jobs to be decent.

    To this end, the NLC is perfecting plans for a National Job Summit in 2020. We will get stakeholders, experts, policymakers, demographics and workers on a roundtable to find answers and solutions to Nigeria’s burgeoning unemployment crisis.”

    He added that patronising made-in-Nigeria goods and services will help tackle the menace of unemployment.

    Also, Wabba said security agencies must shelve the toga of ‘above the law’ posture which some of them adopted in the past, saying: “A major sore point in the past was the penchant for overzealous security agents to resort to self-help in the prosecution of their duties.

    By so doing, they forgot that Nigeria is a democratic state governed by laws. We all have a duty to protect our institutions and our fledgeling democracy from the perception of abuse and from actual hijack by those whose primary responsibility should be to protect and defend our democratic institutions.

    The desecration of our courts by the Department of State Service is an ill wind that should never blow again.”

    NLC called for the defence of civil liberties, which include the right to organise, freedom of association, the right to protest and the right to embark on strike.

    It reminded those in political leadership that respect of human rights are guaranteed by the 1999 Constitution and relevant ILO Conventions, is fundamental, sacrosanct, inviolable and non-negotiable.

    The central labour body reiterated its resolve to pursue national peace by continuing to put the needed weight on the things that unite Nigerians and hold in contempt the things that seek to divide them.

    “We encourage our political leaders to exemplify the same by their utterances and conduct. By so doing, we would be laying an enduring foundation for national peace, unity, and development.

    “We demand that the government must prioritise the security of lives and property. Nigeria has seen enough bloodshed.

    While we commend the sacrifice and commitment of our soldiers and other security personnel in the war against terrorist insurgency and other violent crimes across Nigeria, we urge the government to do all it takes to end the bloodletting and brigandage in different parts of the country.

    As we have always canvassed, the war against insecurity must be anchored on human security. We must feed hungry stomachs. We must create jobs to engage our youths. An idle mind is devil’s workshop,” Ayuba said.

    The planned renovation of the National Assembly complex with N37 billion drew the ire of NLC.

    He observed that given the level of Nigeria’s under-development, it is a misplaced priority to renovate the complex at such a huge amount.

    He said: “Workers are deeply concerned about the plan to renovate the National Assembly with about N37 billion. Given our developmental deficits and level of poverty, we consider the proposed renovation as a misplaced priority.

    This is more worrisome given that the National Assembly Complex has enjoyed top-notch routine maintenance. In the  year and in the decade ahead, we urge government at all arms and tiers to be altruistic in their priorities and to demonstrate utmost fiscal restraint and discipline.”

    NLC berated the infraction of the Pension Reform Act in the 36 states and the Federal Capital Territory (FCT).

    Read Also: ‘Don’t blame Labour for strike on minimum wage’

     

    He urged the state governments and the Federal Capital Territory Administration (FCTA) to comply with the pension law by ensuring the immediate enactment of enabling laws on Contributory Pension Scheme (CPS) for states yet to do so, prompt remittance of employers and employees’contributions to pension fund administrators, actuarial evaluation for retirees whose pension is due and procurement of a group life insurance policy for workers under the CPS.

    On his part,  Olaleye said the congress did not oppose some policies that were deemed offensive because of the need to save the ailing economy.

    Among some worrying issues, TUC said, are the minimum wage and its consequential adjustment, sack of workers without redundancy negotiation, breach of the collective agreements and casualisation.

    TUC also flayed  Nigeria’s democracy, saying it is the most expensive in the world.

    He said: “The cost of governance in Nigeria is highly unreasonable, no hyperbole. Investigations have revealed that political officeholders are one of the highest-paid in the world. They borrow to massage the greed of a few in a country adjudged to be the poorest in the world.

    To the National Union of Hotels and Personal Services Workers (NUHPSW) General Secretary, Leke Success, labour expects the government to be proactive about many things.

    “The government must prioritise fixing of roads. Almost all the roads in the country are now death traps. Almost all the roads in every part of the country allow kidnapping to take place.

    In fact, one can say that the roads are one of the major factors boosting kidnapping.

    Government must move away from lip service and social media propaganda that claim humongous work has been done but in reality, almost nothing is being done when one gets to the roads.

    “The government must also deal with insecurity whether in the form of banditry, armed robbery and attacks by terrorist groups.

    Apart from that, labour wants to see a collaborative effort between the government and labour  to tackle unemployment. As it is,  labour has become a strong voice in the economy.

    ‘’We have added, speaking on behalf of the people, to the struggle for the betterment of the workers who are our members.

    So, we are a very good group of stakeholders that government should partner us in many ways more than one in ensuring that Nigeria is better for all with a strong and growing economy,” he said.

    TUC former President, Peter Esele, said labour must engage the government on every issue of national importance, and tell it what is wrong and then offer it a solution.

    He urged state councils of NLC and TUC to review the budgets of state governments, identify areas of wastage and point them out, saying this would help stem the tide of corruption in the country.

    Esele insisted that labour must expand their areas of influence and stop being reactive to national issues.

  • Skool Media appoints Oluwadare as head of Corporate Communication

    TOBA AGBOOLA reports

     

    Skool Media Nigeria Limited has appointed Mr. Sola Oluwadare as Head, Corporate Communications (E-Learning and Content Development).

    Skool Media is an education tech-infrastructure company determined to redefine teaching-learning processes and experiences in schools, homes, and communities using technology and innovation to improve the quality of education at all levels for both the old and young.

    A statement from the company stated that Oluwadare holds B.Sc. and M.Sc. degrees in Economics from the University of Ado Ekiti and Nigeria’s Premier University; University of Ibadan.

    He has over 15 years post-graduation experience in journalism, media relations, corporate communications, public policy advocacy, trade promotion and marketing communications.

    During this period, he worked with Shehu Shagari College of Education, Sokoto (as NYSC corps member), African Newspapers of Nigeria- publishers of Tribune titles – as Head of Commerce and Industry Beat and Communications Manager of the African Institute for Applied Economics (now African Heritage Institution).

    Read Also: Technology and learning: Pitfalls schools must avoid

     

    Before joining Skool Media Nigeria Limited, he was the Trade Promotion Manager at the Lagos Chamber of Commerce and Industry (LCCI) where he supervised Africa’s biggest Fair- the annual Lagos International Trade Fair and other trade promotion events for several years.

    He led the marketing communication team of the Chamber that drove the complete automation process of the annual trade fair, implemented innovative ideas of the Fair and transformed the customer experience in line with international best practice.

    He has attended several trainings and conferences in several African countries and Asia.

    As the Head of Corporate Communications, Oluwadare will be bringing on board his diverse experiences in boardroom management to reinvigorate the corporate communications and structural transformation of Skool Media to boost its global relevance.

    A thorough bred professional, he is a member of the Nigerian Institute of Public Relations (NIPR) and Nigerian Institute of Management (NIM), among others.

  • VAT increase’ll add to our burden, chemical workers tell Fed Govt

    TOBA AGBOOLA reports.

     

    Workers in the chemical sector of the economy have warned the Federal Government that the proposed Value Added Tax (VAT) increase from five to 7.2 per cent would further impoverish them.

    The workers, under the umbrella of the National Union of Chemical Footwear Rubber Leather and Non-Metallic Products Employees (NUCFRLANMPE), recently, rejected the Federal Government’s VAT proposal, adding that they would intensify campaigns against the increase.

    Its National President, Goke Olatunji, said closure of the nation’s land borders was already taking its toll on the sector, adding that the increase in VAT would add to the various challenges facing their members.

    In addition, he said the increase would erode any benefit the increase in the new national minimum wage would bring to workers and Nigerians.

    According to him, government should widen the tax net and get people to pay tax, rather than over-tax those already in the net.

    He said: “We reject the increase as it will further lead to more burden for us. At the moment, many of our members are finding it hard to survive as a result of the closure of the borders. Many of our members cannot export their goods to neighbouring countries.

    “Not only that, it will also erode whatever purchasing power the minimum wage may bring. We see it as a move not well thought through with the welfare of Nigerian wage earners in mind.

    “Its impact on Nigerian manufacturers and job creation and retention will be nightmarish. It is clearly insensitive to the plight of the ordinary Nigerian.

    Read Also: ‘VAT increase will add to our burden’

     

    What the government needs to do is to widen the tax net and get people to pay tax and not to overtax those that are in the net as of now.”

    Olatunji said this would also erode the gains that are meant to arise as a result of the timely passage of the 2020 budget.

    He said: “Yes, it is a good thing that the 2020 budget was passed early, but I don’t see the budget making much impact, despite the timely passage.

    “This is because the challenges facing us are enormous. One of the problems we face  in our sector is erratic power supply and our employers, like other employers in the country, are not finding it funny because they spend so much on alternative sources of power especially generators and diesel for most of their operations which has eaten deep into their profits.

    If you recall, Dunlop and Michelin were major companies in our sector, but they left this country because of harsh operating environment, mainly the issue of power, and threw all their workers into the unemployment market.

    Today, their products are everywhere in the nation’s market.”

  • Creating industrial hubs to stem joblessness

    Worried by the huge number of jobless artisans and tradesmen in the country, stakeholders have called for the creation of industrial hubs across the country, TOBA AGBOOLA reports.

     

    Artisans and technicians contribute immensely to the development of the economy, especially in the informal sector. However, they feel their contributions are not recognised and appreciated by government. And because of this, they do not get the encouragement and help they deserve.

    Experts  reasoned that creating  industrial hubs would not only provide platforms for the development of skilled labour, but also expose tradesmen to emerging techniques and use of modern tools to upscale their trades.

    Speaking at a One Precious Life (OPL) Academy alumni workshop in Lagos, Coordinator of Tradesman Empowerment programme (TEP), Yinka Akande stressed the need to engage the army of youths roaming the streets, saying most of them are not lazy and have trades, but had no place to practice.

    According to her, many trained tradesmen are still finding it difficult to stand on their feet because of difficult operating environment, adding that with government facilitated industrial hubs, they can contribute their quota to national development.

    She stressed that a lot of people that are willing to practise had no place to do so or upscale their skill with modern technology, which placed them at a disadvantaged position with their counterparts in neighboring countries.

    Supporting the position, the Conversion Manager, Robert Bosh Nigeria, Jeremy Adesanya, said it is not enough to train artisans without giving them the tools to make their work efficient, faster and professional.

    He stressed that his organisation is working with government and other relevant stakeholders to ensure that artisans and tradesmen are not only trained, but also exposed to tools that require less energy and more financially-rewarding.

    Adesanya said his job as a conversion manager which entails helping people to transit from hand tools to power tools, has exposed him to the need for government and other stakeholders to provide tools and training to tradesmen, which can easily be done through technological hubs.

    According to him, this could be achieved through collaboration with skill centres like OPL Academy, because of the transformation witnessed among the alumni.

    Speaking with The Nation, President, Trade Union Congress of Nigeria (TUC), Comrade Quadri Olaleye said  the  influx of foreign artisans in the name of expatriates into the country is not healthy for the economy. He stressed the need to halt the practice.

    Citing the construction industry as an example,  Olaleye said the country’s construction industry is grossly affected by the issue of technology transfer, which is critical in a developing country.

    He said expatriates, who were supposed to be employed where local employees lacked capacity, had taken jobs where Nigerians had  competence in.

    “The ratio of the expatriate to local senior staff in some multinational companies in Nigeria is as high as 10 ratio to one,” he said.

    The newly elected president further said that the administration would focus on ensuring contract for casual workers were standardised.

    “We want to prevent outsource workers from  being maltreated. Even as casuals they should be paid their right benefits and entitlements at work,” Olaleye said.

    On her part, the Chief Executive Officer of OPL Academy, Oare Ehiemua, called for creation of more opportunities for Nigerian youths, who are hungry for new experiences and opportunity to excel in their endeavour.

    She also called for partnership to reach over 1000 tradesmen across the country, stressing that the academy, which is already working with the Lagos State Government Employability Trust Fund, is determined to upscale tradesmen to make them competitive with others across the continent.

    Oare, who stressed that the quality of Nigeria artisans are still relatively poor because of exposure and character, called for a platform to change the narrative.

    She said OPL Academy has started a move through partnership by exposing the alumni to power tools relevant to their trades after going through behavioural and technical training.

    She said the artisans were trained in professional soft skills, leadership and ethics, emotional intelligence, communication skills, entrepreneurship, design thinking, critical thinking and problem solving, technical master classes and computer literacy.

    Recently, the Minister of Industry, Trade and Investment, Mr Niyi Adebayo,  assured Nigerian technicians and artisans of Federal Government’s support in its multi-sectoral approach to growing the economy.

    Read Also: Steps to save Kano from industrial wastes

     

    The minister made the pledge at the first edition of the Nigerian Artisans and Technicians Conference (NATCO) held at the National Theater in Lagos, with the theme: Artisans, Technology and Empowerment; The Future of The Nigerian Economy.

    Adebayo, who was represented by a senior ministry official, Mr Adewale Bakare, maintained that no nation could develop without a robust private sector involvement.

    He added that the Federal Government was addressing the infrastructural challenges in the country that would  help unlock the nation’s growth.

    The minister further stated that its agencies were committed to creating an enabling environment to stimulate domestic investments and attract foreign direct investments in all sectors of the economy and ultimately make Nigeria a global hub.

    Adebayo advised the private sector to key into government efforts in its drive to improve and develop the economy, stressing: “It is true that Nigeria’s quest for development cannot be achieved without adequate acceptance of the informal sector”, the minister said.

    Also speaking at the conference, Lagos State Chairman of Nigeria Automobile Technicians Association (NATA), Mr Jacob Omonide Fayeun, said  the association achieved recognition with the successful hosting of the maiden NATCO conference.

    Fayeun said: “We have achieved recognition and I believe the president and members of his team have seen what happened today. We have not been getting recognition from the state and Federal Governments. We are very important in the society.

    “Without us the economy cannot move. Artisans and technicians control the employment level who would have become miscreants. Next year, it is going to be better.

    I know the Federal Government will sponsor this programme next year. It is very difficult to organise this kind of event but God assisted us to succeed in planning this one. I know the recognition will come from government, particularly during elections.

    “What you saw here are just mere representatives. I came here with almost 2, 000 of NATA members. If we say every member should come, it means we will have to use the national stadium. During election, state and federal governments will use us and then dump us.”

  • Real sector burdened by high cost of borrowing

    Commercial banks’ double-digit cost of borrowing is hurting the real sector. It is discouraging productivity and investment. Manufacturers, particularly small scale enterprises, are also yet to heave a sigh of relief from the various single digit interest rate funding windows created for them by the Federal Government through the Central Bank of Nigeria (CBN). They are now calling for improved and sustained policy to reduce cost of borrowing. Assistant Editor CHIKODI OKEREOCHA reports.

     

    The campaign to force a reduction in the cost of borrowing to the real sector and also interrogate the performance of the various single digit interest rate funding windows available for the sector, particularly manufacturing, will surely top manufacturers’ policy advocacy this year.

    Indication that these will galvanize the advocacy machinery of the Manufacturers Association of Nigeria (MAN) and indeed, other members of the Organised Private Sector (OPS) emerged after manufacturers raised eyebrow that the double-digit rate at which commercial banks lend to the sector was discouraging productivity and investments.

    The Nation learnt that when the policy advocacy eventually kicks off, manufacturers will specifically be pushing that the Central Bank of Nigeria (CBN) improve and sustain the current policies aimed at increasing loans to the productive sector of the economy to stimulate national output.

    They will also be advocating the need for the CBN to review the guidelines of the various development funds put in place for the real sector to ensure that the terms and conditions are liberal enough to attract borrowing from the industrial sector.

    The stage for what promises to be a robust engagement between manufacturers and the Federal Government through its monetary authority, the CBN, was set after 82 per cent of Chief Executive Officers (CEOs) of manufacturing companies indicated that the double-digit rate at which commercial banks lend to the sector was discouraging productivity and hurting investment.

    This was contained in the Manufacturers CEOs Confidence Index (MCCI) for third quarter 2019, following which MAN said “It was imperative that it sustains the advocacy for policy measures that will lower the cost of borrowing to increase the sector’s productivity and competitiveness.”

    The association added that it will also be partnering the Federal Government to interrogate the performance of the various single digit interest rate funding windows available for the real sector.

    The MCCI gauges the pulse of the economy on quarterly basis. It deploys a set of diffusion factors, including business operating environment issues such as over-regulation, multiple taxes/levies, access to sea ports, local and raw-material sourcing, among others, to measure a quarterly perception and confidence of manufacturers in the economy.

    In addition to the set of diffusion factors for which information is generated on, the general macroeconomic ambience in terms of foreign exchange, lending rate, credit to the manufacturing sector etc. are also measured.

    A questionnaire structured with the diffusion factors, macroeconomic and business environment variables, and administered on the CEOs of MAN member-companies across the six geo-political zones of the country and the 10 sectoral groups of the association returned a disturbing verdict.

    It indicated that majority of respondents (82 per cent) disagreed that the rate at which commercial banks lend to the manufacturing sector encourages productivity in the sector. “This is evident in the double-digit cost of borrowing from the commercial banks even amidst measures by the monetary authority to reduce cost of borrowing in the country,” the report said.

    The index, which also added that the situation, discouraged investment particularly in the manufacturing sector, set the tone for manufacturers to push for a better deal from the commercial banks and from the various single digit interest rate funding windows put in place for the real sector.

    Indeed, at moment, commercial banks are said to charge as high as between 22 and 25 per cent interest on loans. Micro-finance Banks (MFBs) charge higher, insisting on between 30 and 40 per cent interest rates.

    The exorbitant interest rates charged by the commercial banks are said to be partly responsible for the shutting of many industries, while others simply relocate to neighbouring countries where they are sure of interest-friendly credit facilities.

    Worst hit by the prevailing unfriendly interested rate regime are Micro, Small and Medium Enterprises (MSMEs). The commercial banks are yet to change their perception about MSMEs; they are still wary of the risk of loan default by MSMEs so, they are reluctant to advance credit to the operators.

    There are 41 million MSMEs in the country, according to a national MSMEs survey carried out in 2017, by the sector’s regulatory agency, the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) in collaboration with the Nigerian Bureau of Statistics (NBS).

    However, the MSMEs, despite being acknowledged globally as the engine of economic growth because of their potential to create jobs, boost production, generate income and reduce poverty, are still plagued by a plethora of challenges among which is lack of access to credit.

    About 80 per cent of MSMEs are said to lack access to the financial market, according to a survey by the International Finance Corporation (IFC) and Mckinsey & Company, a United States (US)-based multinational management consulting firm.

    To close the financing gap in the MSME segment of the industrial sector and hopefully, boost the profitability and competitiveness of MSMEs in Nigeria, the Federal Government, through the CBN, launched the N220 billion Micro, Small and Medium Enterprises (MSMEs) Development Fund in August 2013, as well as other intervention funds.

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    Access becomes an issue

    However, difficulties in accessing the N220 billion MSMEs Development Fund and other intervention funds meant for the sector have continued to stand in the way. The operators lament that it is easier for the camel to pass through the needle’s eye than to access the fund because of the stringent conditions and guidelines for accessing it.

    Under CBN’s guidelines, the fund, which attracts nine per cent interest rate, would be administered through private or state owned Micro-Finance Institutions (MFIs), Finance Houses, and Cooperative Finance Agencies.

    Such MFIs or micro-finance banks must pass CBN’s competency and proficiency tests in order to certify them capable of distributing these funds to MSMEs. State governments will be able to access up to N2 billion each for lending to eligible beneficiaries through Participating Financial Institutions (PFIs) in their states.

    In other words, the CBN will not be lending directly to farmers or businesses. What the fund does is a wholesale fund. It provides funding to the PFIs. MFIs or micro-finance banks can also come to the fund.

    The CBN will assess them, give them the money at low interest rate. The PFIs would undertake that they will lend at low rate of interest to micro-entrepreneurs, the low-income earners, farmers, artisans and the active poor who operate in the informal sector.

    Also, PFIs can only finance agricultural value chain activities, trade and commerce; cottage industries, artisans, among others.

    The apex bank in a bid to ensure that productive sectors of the economy attract more finance necessary for employment creation and diversification of the country’s economic base, also said a maximum of 10 per cent of the commercial component of the fund should be channeled to trading and commerce.

    Although, CBN requests that 60 per cent of the fund, representing N132 billion, be voted for providing financial services to women-owned businesses, PFIs would be required to submit periodic returns on disbursements as well as an analysis of the social impacts of the fund.

    The finance sector regulator will also undertake regular on and off site checks to ascertain the veracity of the reports received.

    That is not all. The CBN also demanded that borrowers provide 100 per cent near-cash cover in treasury bills or fixed deposit, a situation said to have made it difficult for most finance house operators to draw from the fund.

    Most of the finance house operators are therefore, reluctant to draw from the loan. In their own thinking, the CBN cannot force people to invest in treasury bills or keep fixed deposits because they want to borrow.

    Because of this, only commercial banks are said to be meeting the drawn-down policy and are accessing the loans. The snag however, is that this arrangement defeats the objective of setting up the fund.

    But an MSME operator said that the commercial banks are still being reluctant to grant the CBN intervention funds meant for the real sector because of risk of default.

    The operator, who declined to be mentioned, said the commercial banks prefer paying penalties to the CBN for deliberately withholding the funds or channeling them to other areas at the detriment of giving the MSMEs to use to run their businesses.

    However, as the President, Lagos Chamber of Commerce and Industry (LCCI), Mrs. Toki Mabogunje, explained, the intervention funds are available, but there are issues both on the side of the borrowers and the lender.

    “The lender complains that the borrowers are not bankable; that they are not meeting the criteria that the banks are asking them to meet in order to access the funds,” she told The Nation, adding that there are also issues around financial literacy.

    While also pointing out that some businesses themselves may not understand what is required for them to access these funds, Mabogunje said it was in an attempt to address issues around ease of access to the funds that the CBN came up with the idea of Moveable Collateral Registry, where a small business can use a moveable item as collateral to access the funds.

    “With Moveable Collateral Registry, you don’t have to have land and property; you can use your movable car, your freezer; women can use their jewelry; any kind of moveable asset you have can be used as collateral. So, the CBN is trying to encourage more people to register their assets in that registry so that they can use it as collateral for funds,” the lCCI boss explained.

    The National Collateral Registry of Nigeria is an initiative of the CBN, with support from the International Finance Cooperation (IFC), to improve access to finance particularly for MSMEs.

    It is a web-based system that allows lenders to determine any prior security interests, as well as to register their security interests over movable assets provided as collateral.

    The Collateral Registry facilitates the use of movable/personal assets as collateral that remain in possession or control of the borrowers and thereby improves access to secured finance.

    The web-based nature of the system offers remote access from the comfort of the borrower’s location even beyond normal business hours without visiting the registry office. It reduces and frees officials of the registry operations from paper burdens, manual reviews, searches and storage costs.

    Beyond the Registry, Mabogunje also said that at a certain level, at the micro level, that is the smallest of the small, up to a certain amount don’t even have to provide collateral.

    “What they need is a guarantor; they can provide two guarantors; you know how they use guarantor under federal policy, either they use civil servants, a military officer, a lawyer, a banker; there are certain people that will be accepted as guarantors,” she explained.

    According to the LCCI president, the matter is still being discussed and debated. “The funds are there, and we at the LCCI are also advocating for more simplification of that process so that there will be more access to the funds,” she added.

  • Lagos TUC urges Sanwo-Olu on urban planning policies

    Our Reporter

    Lagos State Council of the Trade Union Congress (TUC), has urged Governor Babajide Sanwo-Olu, to come up with a good urban planning policies, just as it also called on the governor  to declare emergency on drainages across the state.

    Its Chairman, Gbenga Ekundayo, who spoke  during a visit to the first Governor of the state, Lateef Jakande, urged Sanwo-Olu to come up with proper physical planning that would address issues, such as flooding, drainage and traffic congestion.

    He also called on the government to declare emergency on drainages the way he declared emergency on Lagos roads to make them motorable.

    Citing how Jakande tackled the challenge of housing in Lagos, by ensuring adequate accommodation for residents, he implored Sanwo-Olu to follow the legacies of the former governor in tackling housing deficit, health and education challenges in the state.

    “We came to Baba Jakande to say thank you to him, because we looked round and we thought about the challenges we face as citizens not just as workers, particularly in Lagos State, we all know that accommodation is a major challenge.

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    “We ascertained that the largest housing programme that has been done so far in Lagos State was the one done under Jakande’s watch. That is something that all of us must continue to appreciate, and we continue to pray for such a mindset of such a massive housing projects that can ameliorate the housing challenges that people are facing in Lagos State.

    “In terms of housing, we will be appealing to Sanwo-Olu for him to see what he can do to help workers in terms of housing, and also the much he has said about making transportation work for the people, we will love to see how we can make that happen,” Ekundayo said.

    Jakande assured of his willingness to support the union and protect the workers’ interest.

    While praying for a greater Nigeria, the former governor said: “I am ready to work with you even as I call on the Federal and state governments to take the welfare of the citizens at high esteem, Nigerians deserve the best because we have a lot to take care of everyone.

    “My door is open anytime for collaboration, let nobody take the welfare of workers for granted.’’ Whatever I can do anytime to protect the interest of workers, I will. We are together,” he said.