The Nation Newspaper

Category: Labour

Oyetola flags off labour e-platform to modernise sector

The federal government has launched the NIMASA Maritime Labour E-Platform, a new digital platform aimed at revolutionising labour administration in Nigeria’s maritime sector.

Minister of Marine and Blue Economy, Adegboyega Oyetola, unveiled the initiative on Wednesday, during the 2025 Day of the Seafarer celebration held in Port Harcourt, Rivers State.

According to Oyetola, the initiative by the Nigerian Maritime Administration and Safety Agency (NIMASA) marks a critical step towards improving regulatory compliance, operational efficiency, and transparency across the sector.

He said: “This E-Platform will provide real-time data access, enhance regulatory compliance, and serve as a centralised system for maritime labour administration. It is a bold move that shows NIMASA’s commitment to digital reform and modern regulatory processes.”

He commended NIMASA’s forward-thinking approach, noting that the platform aligns with the ministry’s broader goals of enhancing ease of doing business, promoting global competitiveness, and investing in human capital development within Nigeria’s emerging blue economy.

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“I urge all maritime stakeholders to take full advantage of the platform’s capabilities. It has the potential to drive sector-wide innovation, boost accountability, and significantly improve service delivery,” Oyetola added.

The launch formed part of celebrations marking the International Day of the Seafarer, which spotlighted the contributions and welfare of maritime professionals

June 25, 2025
NSITF decries low state compliance with employee compensation scheme

The Nigeria Social Insurance Trust Fund (NSITF) has expressed concern over the low level of compliance by state governments in enrolling their workers into the Employee Compensation Scheme (ECS), warning that such neglect exposes workers to unnecessary risks and vulnerabilities.

NSITF Managing Director, Barrister Oluwaseun Faleye, made the remarks during a visit to the Nigeria Labour Congress (NLC) headquarters, where he was received by NLC President, Joe Ajaero.

In a statement issued by Alexandra Mede, Deputy General Manager and Head of Corporate Affairs at NSITF, Faleye emphasized that the Fund is not a revenue-generating agency but is focused on ensuring workers’ welfare, especially in cases of workplace injuries, diseases, or deaths, as well as promoting occupational safety.

He stressed that NSITF investments are aimed at sustainability rather than profit-making and called for closer collaboration with the NLC to boost enrollment in the ECS, leveraging the Congress’s nationwide influence.

Faleye also reminded the NLC of its representation on the NSITF Board, urging the union to actively support efforts aimed at expanding ECS coverage.

The visit, according to the statement, was part of NSITF’s ongoing drive to increase enrollment in the scheme through stakeholder engagement and inter-agency collaboration. Under the Employee Compensation Act, all employers in both the public and private sectors are required to contribute one percent of their workers’ salaries to the NSITF.

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The NSITF is mandated to indemnify, compensate and rehabilitate workers affected by workplace injuries, diseases and deaths.

In his response, the NLC President promised to work with the NSITF to ensure compliance with the ECS.

He said the scheme is a lofty initiative aimed at improving the working class and expressed his excitement at having the NSITF fully in charge of social security in the country.

Ajaero also pledged organised labour’s support to NSITF’s awareness campaign geared towards enhanced ECS compliance in the country.

June 25, 2025
ILO urges African countries to ratify, implement convention on domestic workers

The International Labour Organisation (ILO) has asked African governments to urgently ratify and implement the Domestic Workers Convention 189, a critical international standard that recognises and protects paid care work within the home.

The organisation said that Africa is home to a staggering 9.6 million domestic workers aged 15 and above, many of whom labour in invisibility despite the crucial role they play in keeping households and economies afloat.

In a message to mark the International Domestic Workers Day by the African Regional Office titled: “Decent Work for Domestic Workers is Africa’s Shared Responsibility,” the ILO’s Regional Director for Africa, Fanfan Rwanyindo, lamented that despite the crucial role these domestic workers play in keeping households and economies afloat, they are more often maltreated or neglected.

She described the moment as a time for reflection, action, and political will.

Rwanyindo said: “Domestic workers, the majority of whom are women, are among those most affected. During times of upheaval, they are often the first to lose jobs, the last to receive support, and the least likely to be covered by social protection.

“At all hours of the day and night, domestic workers ensure the well-being of families, yet their own well-being too often goes unnoticed, especially in times of crisis.

“From the economic scars of COVID-19, the devastation of armed conflicts, to the toll of climate disasters like floods and droughts, domestic workers are among the hardest hit.

“These disruptions magnify social and economic inequalities and stretch fragile protection systems.”

On those with additional vulnerabilities: migrant status and disabilities, Rwanyindo stressed, “Migrant domestic workers and those living with disabilities face even greater risks of abuse and discrimination. She said the contributions of domestic workers extend beyond private households.

“Despite the hardships, domestic workers continue to show resilience and compassion. They cook meals for others while skipping their own. They care for children, the elderly and persons with disabilities with dedication, despite facing threats to their security.

“Their work is essential, not only to the families they serve but to the broader economy. Yet the harsh truth remains: care work remains undervalued, underpaid, and under-protected in Africa.

“An estimated 15.8 per cent of Africa’s paid female employees are domestic workers. But this vital work is undervalued and underpaid.”

She pointed to systemic issues such as the informal nature of employment, the absence of written contracts, and the lack of minimum wage, healthcare, or unemployment benefits.

“In some African countries, they are excluded from national labour laws. In many others, enforcement of existing laws is weak or non-existent,” she observed.

The ILO Regional Director emphasised the paradox: “Without access to maternity leave, healthcare, or safe working conditions, domestic workers are asked to care for others while their own care needs go unmet.”

Rwanyindo added: “Governments in Africa can take steps to ratify and implement the ILO’s Domestic Workers Convention, 2011 (No. 189), and ensure its principles are reflected in national laws. So far, only seven countries in Africa have ratified it. We can and must do better.”

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She outlined a multi-stakeholder roadmap that includes state, employer, and civil society action.

“Governments can legislate to require that domestic workers receive minimum wage. Trade unions can organise domestic workers to demand increased legal protection. Employers can act in solidarity by ensuring that they pay fair wages and provide decent working conditions.

“Societies can recognise care and domestic work as an essential economic driver, and not only as a private matter inside homes. Making domestic work decent work is not just the right thing to do, it is a strategic investment in the health, safety and resilience of African societies.

“On this Domestic Workers Day, let us commit to putting care at the heart of crisis response, recovery, and reform. Because when domestic workers are protected, valued and respected, entire communities thrive.”

June 17, 2025
Addressing gender-based harassment, violence in workplace

Gender-based violence and harassment are high in some Nigerian workplaces due to non-ratification, adoption and domestication of the International Labour Organisation (ILO) Convention 190 on elimination of gender-based violence by the Federal Government. At a training in Lagos by the Labour Writers Association, in collaboration with International Labour Organisation (ILO) and Friedrich Ebert-Stiftung (FES), experts proffered solution to the problems, TOBA AGBOOLA writes

The International Labour Organisation (ILO) Convention 190 (C190) is a treaty that aims to eliminate violence and harassment in the workplace.

It is the first international treaty to address violence and harassment in the world of work.

Nigeria ratified C190 in October 2022, becoming the 22nd country and sixth to do so in Africa. However, since the ratification of the convention, the battle to address gender-based violence in the workplace has slowed.

Workplace harassment is still a prevalent issue in Nigeria and women are more likely the victims.

Harassment is any form of unwelcome behaviour that’s offensive, humiliating or intimidating. Most importantly, it’s against the law.

Harassment is a pervasive problem with a devastating toll on employee’s well-being and performance. But, behind closed doors, many companies and institutions have done little to address harassment, which has contributed to hostile work environments for victims, thereby affecting productivity.

To create an atmosphere of peace and inclusion in the workplace, experts have suggested steps to be taken by employers and employees to ensure a productive workforce.

They made the suggestion recently during a training in Lagos organised by Labour Writers Association of Nigeria, in collaboration with the Friedrich Ebert-Stiftung (FES) and International Labour Organisation (ILO).

The training centred on the theme: Gender-Based violence and harassment in the workplace.

The Director-General, Lagos Chamber of Commerce and Industry, Mrs. Chinyere Almona, said gender-based violence and harassment in the workplace did not only violate rights but also impede the creation of safe, inclusive, and productive work environment.

She said the problems remained pervasive globally, with one in three women estimated to experience physical or sexual violence in their lifetime, most often by an intimate partner.

Mrs. Almona cited the European Union (EU), where one-third of women reports similar experiences, with many incidents occurring in the workplace and are unreported due to stigma and fear, adding that the economic cost is staggering.

She said: “According to the World Bank, eliminating discriminatory practices and enabling women’s full participation in the workforce could increase global GDP by over 20 per cent.

“In Nigeria, the statistics are equally troubling. Around 30 per cent of women aged 15 to 49 have faced physical or sexual violence.

“In 2024 alone, the Nigeria Police Force handled 17,415 cases of gender and domestic based violence, with 15,692 brought to court. Women in fields like healthcare and education are especially vulnerable to verbal abuse, sexual harassment, and intimidation,” she lamented.

She stressed that despite the strong legal foundation of Convention No. 190, several barriers persist in translating it into practice in Nigeria.

According to her, ”Cultural norms rooted in patriarchy continue to normalise or trivialise GBVH, often silencing victims and discouraging them from seeking justice.

“A lack of awareness among both employers and employees about the Convention’s provisions and workplace rights further hampers implementation.”

To advance the fight against GBVH, she suggested that Nigeria must adopt a multi-pronged, coordinated approach.

“Legislative reform is essential; national laws must be harmonised with Convention No. 190, and explicit workplace policies should be instituted to prohibit GBVH and establish clear reporting and disciplinary procedures,” Mrs. Almona said.

She noted that a safe workplace was not a privilege but a right and when we realise that we are doing what is right.

Professor of Journalism and Development Communication, Lagos State University, Tunde Akanni, emphasised that a core responsibility of the media is to report harassment once they become public.

He said: “Once it happens, it must be reported. Don’t forget that when you have this kind of problem in society, it’s in everyone’s interest to pay adequate attention to it.

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“The media must ensure that reports on incidents of harassment are presented in the most dispassionate manner—there should be no taking sides with any party.”

According to him, the media must uphold ethical standards in all professional practices.

He insisted that truth is sacrosanct, adding: “When we are in doubt, our professional ethics dictate that we leave it out. As much as possible, the truth must be told—there should be no form of embellishment, no matter how minimal.”

Reporting facts

A former Assistant Editor (Labour) with Vanguard Newspapers, Mrs. Funmi Komolafe, in her presentation, emphasised the importance of factual reporting.

She advised reporters to verify facts before publishing, especially on sexual harassment.

According to her, one of the key rules in journalism is that facts are sacred: “A journalist needs to be sure of their facts before publication. This does not mean that a journalist may not make errors.”

She defined workplace sexual harassment as any unwelcome sexual advances or verbal/physical conduct of a sexual nature, where acceptance is explicitly or implicitly a condition for favourable employment decisions, or which interferes with an individual’s work performance or creates an intimidating, hostile, abusive, or offensive environment. This may include insults, remarks, jokes, insinuations of a sexual nature, and inappropriate comments on a person’s dress, physique, age, or family situation.

She said: “To report sexual harassment, there must be a complainant. At this stage, we need to consider complaint channels that won’t place the complainant at a disadvantage. Does the workplace have a proper channel for such complaints? If not, reporting becomes difficult. However, if the complainant has enough facts to prove her case, then the reporter has a story.

“For example, if a manager keeps sending text messages to a woman, asking to meet at a hotel, that’s a story. However, the text and the complainant’s response are necessary for the reporter to produce an acceptable report.

“A good story on sexual harassment should not be based on rumours, unfounded statements, or sentiments. We must remember that the person being accused also has rights that must be respected. If the complainant has a recording of sexual advances, then the reporter has a solid case.”

Gender equality

Presenting a paper entitled: Gender Equality and the Workplace, Assistant Director, Corporate Affairs and Communications, Nigeria Employers’ Consultative Association (NECA), Adebola Akinwade, discussed the understanding, importance, challenges, and opportunities of promoting gender equality in the workplace, including best practices.

Similarly, Janet Anaele-Abazie, Associate Consultant with Global Hub and Humanitarian HR, spoke on Understanding harassment at work.

She explored various forms of workplace harassment, their impacts on individuals and organisations, and relevant legal frameworks and international standards.

On her part, Project Manager at FES, Mrs. Remi Ihejirika, emphasised the need for a narrative shift to create safer workplaces for all, regardless of gender.

She advised: “Actionable tips for journalists include: report accurately and objectively; encourage victims to speak up.

“Also, provide a platform for victims to share their stories; strive for a non-toxic and safe workplace environment.”

June 6, 2025
Ministry, DBI target youths via Talent City initiative

The Federal Ministry of Communications, Innovation and Digital Economy and Digital Bridge Institute (DBI) are set to create more jobs for the youth through the Talent City initiative.

Speaking at the launch of the initiative in Lagos, the Communications, Innovation and Digital Economy Minister, Dr. Bosun Tijani, said this was in line with the administration’s vision of creating millions of jobs for the youth.

Tijani said this could be achieved if the initiative was supported, adding that the collaboration of the private sector was very essential.

The Talent City is a flagship national programme dedicated to building an integrated national network of Talent City campuses.

The minister emphasised the commitment of the President Bola Tinubu-led administration to investing in the digital economy, driving inclusive growth and empowering the youth.

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He said: “The president made it very clear when I came into office that he will spend efforts and resources in creating one million technology jobs. So, for anybody that is following the development in the world today you will see that there’s no world without technology.

“There is a strong shortage of technology workforce all over the world, and while a lot of the developed countries have ageing population, and not giving birth to kids, in Nigeria, the average age is 16.9, so our young people are being projected to be the workforce of the future, not only for Nigeria,” Tijani said.

President, DBI, David Daser, said the talent cities would unlock opportunities by transforming under-utilised public infrastructure and private infrastructure into high-productivity digital campuses for job creation.

He said this strategic initiative was aligned with the Federal Government’s agenda to generate sustainable employment, advance infrastructure transformation, and position Nigeria as a global destination for digital services and outsourcing.

“This marks a landmark moment – the first collaboration between the Ministry of Communications, Innovation and Digital Economy and DBI – on a project that supports one of the President’s key development priorities: Employment and jobs for youths.

“DBI, as Nigeria’s foremost training institute in ICT and Innovation, is fully aligned with this national agenda. We are ready and eager to support the President and the minister in delivering on this transformative vision – to position Nigeria as a global hub of digital excellence and innovation across the sub-region.

“When this administration assumed office, DBl was just another government’s initiative – its mission was noble, but its potential was underutilised.

“The Talent City initiative is not just about jobs. For us at DBI, it creates a unique value proposition – a strategic advantage. Our graduates will have immediate access to opportunities right here on our campuses, “ Daser added.

May 30, 2025
Our expectations from govts, by labour leaders

For the Organised Labour, things are still hard, despite the increase in their salaries from the implementation of the new minimum wage and distribution of palliatives, among others, by the Federal Government. They have, therefore, called on the federal as well as the state governments to look into their new demands to enable them to really enjoy the dividends of democracy, TOBA AGBOOLA writes.

To workers, things are not yet rosy. Despite the implementation of the new minimum wage that puts more money in their pockets, the cost of living, which is still high, has wiped out what is supposed to be their joy from the new wage.

To this end, the leaders of the two labour centres, as the Bola Tinubu-led administration celebrates two years in office, which many termed half-year of the four-year tenure, the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) have outlined workers’ expectations, urging the federal, state, and local governments to address pressing socio-economic issues.

The NLC President, Comrade Joe Ajaero, and TUC President, Comrade Festus Osifo, stressed the need for policy shifts, with the reduction of the exchange rate, industrial peace, respect for the rule of law, with adherence to the 2024 National Minimum Wage Act taking centre stage.

They highlighted the importance of policies that deliver tangible benefits to citizens, as well as sought the imbibing of the principles of transparency, honesty, and inclusivity in governance.

They also highlighted numerous challenges workers face, including escalating living costs, unemployment and insecurity.

They stressed the critical role of industrial harmony, urging the Federal Government to engage constructively with labour unions.

They insisted that workers must sit at the table during the formulation of tax policies that would affect them.

The labour leaders had pushed for the implementation of a reduction in telecommunications tariffs from 50 per cent to 35 per cent, a promise they said was yet to materialise while expressing frustration with the continued prioritisation of corporate profits over the survival of the ordinary Nigerian.

They called for reforms that would shift focus toward the people’s essential services such as energy, infrastructure, and public utilities, emphasising that they must be oriented toward serving the public interest rather than private gains.

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Security

Ajaero expressed concern over the safety of workers, in their workplaces and outside it, urging the government to prioritise the protection of lives.

He said insecurity (banditry, herder raids on farms) has contributed to reducing agricultural output, causing food crisis and forcing increasing food imports and a dependency on foreign food donors.

He called for improved working conditions, including safe workplaces, the right to organise freely, and protection from state and employer intimidation or violence.

Ajaero called for an end to the killings and bloodshed across the country, labelling the violence as genocidal and intolerable.

“It is evident that when governments and their institutions implement policies that uphold the dignity, unity, and aspirations of the people, they strengthen democracy and reinforce governance structures.

“However, when they fail to do so, democracy is weakened, institutions become compromised, and crisis looms.The killings around the country: Uromi, Eha Amufu, Adani, Ondo, Owo, Zamfara, Bokkos and Riyom in Plateau; Benue; Kebbi states and unchecked kidnappings continues to affect the country.

“The number one duty of the Federal Government is to ensure the safety of lives and properties. The government must step up and fulfill its constitutional obligations to the citizens instead of these constant lamentations. We hear of the emergence of a new terrorist group named Mahmuda sect in the Middle Belt.

“This calls for serious attention. We must approach the insecurity situation as a country in War.The choices we make today will define our nation for generations to come, “ Ajaero said.

Economy

Ajaero said the truest performance measurement of any economy is the nature of citizens’ welfare and the economy’s capacity to continue providing such levels of welfare now and in the future.

He said action must be taken to provide effective support for the real sectors to jumpstart the economy.

Ajaero said: “Deliberate steps must be taken to put more money in the hands of workers – who shop locally to stimulate the economy and reduce inventory creating deeper multipliers within the economy.

“The ongoing tariff war sparked by President Donald Trump’s imposition of a severe tariff regime on all manners of imports into the United States should remind those that run our economy of the severe imperfection of the neo-liberal model.

“We should learn the importance of developing a robust domestic economy to allow us the freedom to control our destiny, especially when the ones that are preaching trade liberalization to us are now leading trade wars which are counter to trade..

Osifo called for a redoubling of efforts to tackle economic hardship, emphasising the need for practical policies to ease the burden on Nigerians.

“We expect governments at all levels to redouble their efforts at addressing current economic hardships for the safety of everyone. The government must consider how its policies affect the micro-economy of Nigerians because that is what affects you and me,” he added.

Energy sector/expatriate quota

Osifo said any government that really wished to deliver an effective energy sector to Nigerians should sit with critical stakeholders to turn around this sector, so that it would play its critical role in economic development.

“While we are blessed with enough natural resources to drive a robust energy sector, we lack the requisite leadership capacity to make it a reality. We are still at a great loss on how to explain events in the oil and gas sector. We have crude, yet there are claims that the oil companies import crude to run their refineries. They export refined products, yet, we import refined petroleum products. This defies logic.

“A nation that fails to harness and manage its energy resources efficiently is doomed to economic stagnation and systemic collapse. Nigeria’s energy sector remains a glaring example of mismanagement, corporate exploitation, and governmental negligence, leaving millions in darkness and stifling our industrial potential,“ he said.

He called on the government to critically look into the issue of expatriate quota, saying that Nigerians were being deprived by the International Oil Companies (IOC)

“We demand strict enforcement of the expatriate quota system, as the manipulation by International Oil Companies (IOCs) deprives Nigerians of employment opportunities.

“We call on the Nigerian Content Development and Monitoring Board (NCDMB) to act decisively — or workers will have no option but to down tools.

“We still insist that power sector privatisation was a daylight heist and a monumental failure.

“A decade after privatisation, Nigeria’s electricity sector remains in a shambles. Nigerians are forced to pay exorbitant tariffs for darkness, while estimated billing continues as legalised robbery,” Osifo lamented.

Electoral reforms ahead of 2027

On matters of governance, the workers’ leaders demanded democratic accountability, transparency, and urgent electoral reforms.

The labour bodies condemned what they described as a sustained suppression of civic space and dissent, calling on the federal and state governments to stop actions that erode citizens’ rights and instead work to strengthen democratic norms.

They demanded the settlement of outstanding allowances, pensions, and gratuities, stressing that retired public servants, who devoted decades to national service, deserve a dignified and secure retirement.

The two leaders emphasised that no economy could make progress without a strong domestic manufacturing base.

“We should learn the importance of developing a robust domestic economy to allow us the freedom to control our destiny, especially when the ones that are preaching trade liberalisation to us are leading trade wars which are counter to trade,” Osifo said.

They reaffirmed the commitment of trade unions to national progress while emphasising their responsibility to workers and citizens.

May 30, 2025
Tackling FX volatility

In the, past when the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) spoke, the Federal Government listened. This is because of the strategic position of the sector to the economy as the country’s main money spinner. At its National Executive Council (NEC) meeting recently, the leader of the oil workers addressed many issues, namely the high cost of foreign exchange, and why Nigerians may not enjoy the anticipated benefits of local refining, among others, and charted the way forward. TOBA AGBOOLA writes.

Leaders of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) are not happy.The reason for the sadness is not farfetched.The Federal Government’s policies aimed at taming hyperinflation are not yielding fruits.

It has, therefore, suggested some factors as the way out of the woods. One of them is lowering the cost of foreign exchange (FX). The workers have pleaded with the government to address the high cost of FX, now hitting over N1,600 to $1, saying the highly priced FX has denied Nigerians the expected benefits of local refining. Also, it has negatively impacted the cost of the product, thereby making its price jump up and evaporating Nigerians’ hope of lowering the cost of PMS.

To the union, the weakness of the naira is responsible for this huge problem.

The workers also stated that in future the product is likely to sell at a more expensive price, if the naira continues to dwindle in value against other currencies.

Speaking at its National Executive Council (NEC) meeting in Lagos, PENGASSAN President, Comrade Festus Osifo, argued that the only factor that could arrest the prohibitive cost of petrol was a drop in international price of crude.

Osifo, also the President of Trade Union Congress (TUC), however, called for an improvement in FX liquidity supply to support growth in its sectoral utilisation.

He said: “In PENGASSAN, we believe that imports to Nigeria are likely to remain constrained by elevated inflationary pressures and expected reduction in petroleum imports due to increased domestic refining, which could tether growth in overall FX utilisation we believe that imports to Nigeria are likely to remain constrained by elevated inflationary pressures and expected reduction in petroleum imports due to increased domestic refining, which could tether growth in overall FX utilisation.

“We are worried that the downturn is likely to be driven by weakened demand induced by sustained currency depreciation and a highly inflationary environment despite the increases in utilisation for food products and in the oil sector by +40.1% y/y to USD$1.25 billion,” he said.

According to him, the disturbing weakness of the country’s naira explains the rising cost of petrol, despite the birth of Dangote Refinery and the resuscitation of the country’s old Warri Refinery and Port Harcourt Refinery.

“If the exchange rate is about N1,000 to a dollar, the price of PMS (petrol) will not be more than N500 a litre.The same thing will be applicable to diesel and kerosene. God forbid the exchange rate goes beyond N2,000 to one dollar, the pump price of PMS may rise to N1,300 or above a litre. As of today, what the local refining has done to us is just the elimination of the logistics that are associated with importation of refined products. Unless the foreign exchange is properly managed, whoever says the price of fuel will come down is lying.

He continued: “Crude is a USD (United States Dollar) international product. Even if the crude is sold to local refiners in naira, nothing will change because it is paid in the USD equivalent. So, it is based on international market value.

“In December, there was a slight downward adjustment in the pump price of PMS and others because of the appreciation of the naira in the international market. Today, the naira is depreciating and there is every indication that there will be an upward adjustment in pump price because the crude price has gone up.Therefore, that we are producing locally does not mean that the pump price of PMS will go down.’’

The oil workers’ leader advocated the need for the new Port Harcourt and Kaduna refineries to come on stream to deepen the value chain in the oil and gas sector.

He added that the full resuscitation of the national refineries and the creation of the enabling environment for the private one to thrive would add value to the country’s Gross Domestic Products and create more job opportunities in the sector.

Osifo wants the government to be deliberate, strategic and purposeful in driving the sector, as it has what it takes to produce four million per barrels of crude oil in a day.

He scored the recent oil bid round conducted by the Federal Government high on the strength of its transparency and commercial viability, which was historic in the history of sales of oil averages.

He said the transparency and commercial viability tied around the sales of the oil acreages will have multiplier effects on the country’s oil and gas sector.

Osifo also addressed other isues at the forum.

They are:

2025 Budget

Osifo described Nigeria’s 2025 budget proposal before the National Assembly as abysmal, noting that the budget of N49 trillion translating to roughly $30 billion is too small to address the challenges facing a country of over 230 million people.

“Although the 2024 budget of N27 trillion was smaller, the real value of that was quite higher in dollar terms.

“The proposed 2025 budget is very low for us as a country. When you compare this with South Africa, a country with just 60 million people and a budget exceeding $120 billion, it becomes clear how far behind we are,” he submitted.

He called for a substantial increase in the country’s budget to reflect its potential and resource endowment.

“As a country blessed with human and material resources, we should be talking about a budget of at least $200 billion. This requires harnessing our mineral wealth which includes bitumen, tin, gold, and limestone, not just for export but for value addition that generates revenue and jobs,” he added.

Osifo emphasised the inadequacy of the proposed budget in tackling Nigeria’s infrastructure deficits, citing a previous study on the nation’s road network.

“A study conducted under a former Minister of Works revealed that fixing federal roads alone would require $120 billion.

“If you allocate the entire $30 billion budget to roads, it would still take four years to complete the task. How then can we address other critical sectors like education, healthcare, and salaries?”

No problem with divestment

Osifo confirmed that the divestment of onshore assets by four International Oil Companies (IOCs) did not lead to job losses or reduced remuneration.

The international oil companies, which recently offloaded their onshore oil assets, including their human resources to Nigerian companies, include TotalEnergies, ExxonMobil, Eni and Equinor.

He said the achievement was in line with their earlier strategies to secure their members’ jobs and welfare during the divestment.

It would be recalled that in multi-billion dollar oil and gas assets divestments that were concluded last year with their final approval by the government, Italian oil giant, Eni sold its Nigerian Agip Oil Company (NAOC) to Oando Plc while ExxonMobil sold its Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy.

Moreover, French oil major, TotalEnergies divested its onshore assets to Chappal; Norwegian energy company, Equinor divested to Project Odinrin, while Shell sold its Nigerian onshore business, Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy Company Limited, a consortium of five oil firms .

According to Osifo, former employees of TotalEnergies, Eni, ExxonMobil and Equinor in the divested assets have transited to their new employers without any job security or remuneration concerns.

He said: “So, on the divestment, for us, as PENGASSAN, and we wish to also announce to you, as we stated in Abuja in December, that we came up with strategies to ensure that none of our members will lose their job as a result of divestment.

“And we will announce to you that by the grace of God, today, there is none of our members that has lost his or her job because of divestment.The job has been 100 per cent guaranteed.

“We have transited from Nigeria Agip Oil Company to Oando Energy Resources Limited with zero loss to membership. We have transited from Equinor to Chappal, with zero loss of membership. We just transited from Mobil Producing Nigeria Unlimited to Seplat Energy Producing Nigeria Unlimited, with zero loss to membership.

Solution to incessant grid collapse

Osifo also spoke on the need for the appointment of experienced professionals to lead critical sectors to achieve better results.

He expressed frustration with the power sector, citing last year’s 12 to 15 power grid failures and the recent grid failure this year.

According to him, inefficiencies in this sector underscore the urgent need for competent leadership to drive improvements.

Osifo attributed these challenges to the absence of skilled and knowledgeable professionals in key positions in the Ministry of Power, the Nigerian Electricity Regulatory Commission (NERC), and related agencies. He urged the government to prioritise merit-based appointments to ensure effective leadership in the sector.

“The power sector is highly technical. Without capable individuals in critical positions, we cannot achieve sustainable solutions,” Osifo added.

He, however, commended the Federal Government’s efforts to decentralise the power sector but stressed the need for strategic leadership to complement these reforms.

Debt burden

Beyond the budget, Osifo highlighted Nigeria’s mounting debt burden, warning of its dire economic implications.

Opposing the huge deficit financing of the budget, he affirmed that a situation in the past where the country was spending about 90 per cent of its revenue to service debt was unprogressive.

His words: “So, we are calling on the government to-do everything possible to expand our revenue base. On that expansion of our revenue base, we must know how to harness our natural and mineral resources.

“Nigeria is extremely blessed with huge mineral resources.These are laying fallow. We need to tap into these mineral resources, and not just to export them as raw materials but to create value to them.

“With that, we could generate enormous jobs, and we would earn huge revenue. “Examining the budget that was submitted to the President to the National Assembly, you happen to see that it is a deficit budget where we are going to borrow a humongous amount of money, and this is also going to add to our debt profile.

“When you hear of the debt profile of the country rising periodically, they do tell us that our debt-to-Gross Domestic Product (GDP), we are doing well. But the challenge is debt to revenue.

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“At a time as a country, we were spending over 90 per cent of our revenue to service debt and not to repay the debt. There is no country that will make meaningful progress by spending 90 per cent of its revenue in servicing debt.”

“So, as a country, we must be serious. As people, we must be able to examine what the government is doing and proffer solutions to them.”

Tax Reform Bills: A call for public hearings

Osifo called for a public hearing on the tax reform bills.

He said: “Other issues are those bothering on the Nigerian Tax Reform Bills before the National Assembly. We are calling on the Senate as well as the House of Representatives that public hearings should not just be jamborees.

“It should not be when they have made up their minds on what to do, they just call us for a public hearing and after that, they go back and do what they intended.

“That is not how public hearings are conducted in many parts of the world. Public hearing is for information to be collated, data to be analysed and they will form input to the bill.

“But, we have observed that in Nigeria, public hearing is just a show whereby they listen to you and they go ahead to do what they had planned to do.’’

January 24, 2025
Our expectations from govt, by Organised labour

This year, the organised labour is expecting the Federal Government to look into its various economic policies and address their impact on workers. TOBA AGBOOLA writes.

THE Organised Labour has outlined workers’ expectations for the year. They want the Federal, state, and local governments to address pressing socio-economic issues.

The Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) are calling on the government to ensure that policies are not only drafted with honest intentions to make life better for Nigerians, but also that they should be without nepotism and strong-arm tactics.

In their new year messages, the NLC President, Comrade Joe Ajaero, and his TUC counterpart, Comrade Festus Osifo, harped on the need for policy shifts, with the reduction of the exchange rate, industrial peace, respect for the rule of law, and adherence to last year’s National Minimum Wage Act taking the centre stage.

They highlighted the importance of policies that deliver tangible benefits to citizens, as well as the principles of transparency, honesty, and inclusivity in governance.

Both unions also said labour would not hesitate to demand wage review as the economy continues to impact on workers purchasing power.

Ajaero stressed the critical role of industrial harmony, urging the Federal Government to engage with labour unions.

“As we move into 2025, we urge the Federal Government to prioritise industrial peace by taking social dialogue seriously, pursuing pro-human-progress policies, and respecting agreements with trade unions.The increasing use of violence in engagements with workers and unions must cease, as it is a recipe for industrial disharmony,” he said.

He reaffirmed the commitment of trade unions to national progress while emphasising their responsibility to workers and citizens.

“Trade unions, as a pan-people organisation, remain committed partners in progress, striving for the development of Nigeria while protecting the rights of workers and citizens at large. We have a very large stake in our nation and are compelled to seek optimal outcomes from government policies.While we urge governments to govern well, they must understand that we are responsible to our members, and that we cannot shirk,” Ajaero stated.

He called for full compliance with last year’s National Minimum Wage Act and proposed a wage review to address economic realities.

“Governments at all levels must comply with the provisions of the 2024 National Minimum Wage Act from the beginning of the year. Furthermore, given the economic realities imposed by recent government policies, we shall engage the government for a wage review to safeguard workers’ welfare. Our nation will become more productive when workers’ incomes meet their basic needs, enabling them to commit more to their work. We look forward to fruitful engagements with our social partners on this matter in 2025,” he added.

Ajaero further urged governments to ensure that governance translates into real benefits for citizens.

“The welfare of citizens remains the primary justification for the existence of any government. Access to food and nutrition, better healthcare, quality housing, education, transportation, and greater security of lives and properties, including the right to participate in decisions on how they are ruled, are key expectations. Policies must reflect transparency, honesty, and inclusivity, devoid of chicanery, nepotism, and strong-arm tactics,” he noted.

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Osifo, on the other hand, called for a redoubling of efforts to tackle economic hardship, emphasising the need for practical policies to ease the burden on Nigerians.

“As 2025 begins, we expect governments at all levels to redouble their efforts at addressing economic hardships for the safety of everyone. The government must consider how its policies affect the micro-economy of Nigerians because that is what affects you and me,” Osifo stated.

He stressed the importance of food security and urged governments to make significant investments in agriculture.

“It is the responsibility of the government to ensure that the welfare of its citizens is prioritised. Today, hunger is excruciating, and we strongly believe that with strong collaboration between the federal, state, and local governments, policies can be created to ensure that farmers return to their fields. More importantly, the government must ensure security across Nigeria,” Osifo said.

He also pointed out the adverse impact of the exchange rate on the economy, criticising the 2025 budget projection of N1,500 to a dollar.

“When we saw in the 2025 budget that the government moved the exchange rate from what it was in the last budget to N1,500, we were not happy. With an exchange rate of N1,500, the prices of goods and services will not come down. If the exchange rate were reduced to N1,000 or N1,200, and the Central Bank of Nigeria (CBN) implemented policies to encourage a downward trend, high costs would reduce, giving hope for a better future,” Osifo stated.

Osifo also explained that there were plans to advocate an increase of the N70,000 minimum wage to reflect inflation rates.

He noted that workers’ wages should rise in tandem with inflation each year, rather than waiting for five years between increases.

The TUC president insisted that instead of the government waiting for five years to increase the minimum wage, it should look at the inflation of the last five years and make some adjustments.

Both leaders reiterated their commitment to engaging the government in the year to ensure that policies translate into real, positive impacts on the lives of Nigerians.

January 10, 2025
We’ve introduced measures for employers to survive, say chemical workers

In view of the challenging economic climate, marked by inflation, policy shifts, and a rising cost of living, the National Union of Chemical, Footwear, Rubber, Leather, and Non-Metallic Products Employees (NUCFRLANMPE) has introduced measures for employers to enable stay afloat.

President of NUCFRLANMPE, Comrade Bolarinwa Sunday, told reporters that the tough economic environment has negatively impacted productivity.

He said many companies are battling high production costs due to inflation, rising fuel costs, high electricity tariffs with low power supply, multiple taxation, and fluctuating exchange rates, among other things, which affect the cost of raw materials and equipment.

He said: “To stay afloat, some companies have had to cut down on work hours or scale back operations, which in turn, affects employee morale and productivity levels.

“We, as a union, are engaging with employers to find cost-saving measures that do not involve reducing the workforce. The goal is to support both companies and employees so productivity can be sustained even under difficult economic conditions.”

He said though the policy changes of the administration aim at economic reform, they have put pressure on workers who are struggling with higher costs.

“The truth is that workers are being impoverished every day. Under the past and present administration, we’ve experienced policy changes that have directly impacted our sector. The removal of fuel subsidies and exchange rate liberalisation are major policies that continue to impact our operations.

“Just recently, the price of Premium Motor Spirit (petrol) was raised again, and every little increase in the price of fuel adds to the suffering of the masses.

“The challenges of manufacturing keep increasing because of this. Even the price of diesel has gone beyond affordability, and exchange rates have been unstable, with the Naira almost losing value daily. Electricity tariffs have also been raised multiple times within a short period.

“Although these policy changes aim at economic reform, they have put immense pressure on workers who are already struggling with high costs of living, “ he added.

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Bolarinwa said one of the major challenges is limited availability of foreign exchange, which also makes it difficult for them to get raw materials

His words: “Most of the raw materials we use for production within our sector are imported. The limited availability of foreign exchange and high exchange rates have been crippling for our sector.

“Many companies in the pharmaceutical and manufacturing industries rely on imported raw materials, which are more expensive due to exchange rate instability. This increase in operational costs makes it challenging for companies to budget effectively or offer competitive prices, as exchange rates can vary multiple times a day. As a result, some companies are scaling down or even relocating their operations to countries with a more stable and reliable FX. The exit of many major multinationals within the industry poses a serious risk to job security for our workers. We are calling on the government to prioritise access to forex for essential industries to mitigate these pressures and safeguard jobs.

“The government must restrict the importation of certain items that are produced in Nigeria, particularly in the pharmaceutical industry.

“This will help promote local consumption. It is not every drug that we should be importing. For instance, we still import anesthetic in large quantities in Nigeria, despite local production of the same drug. The influx of finished products into Nigeria is too much.

“As a nation, we should look inward and add value to our raw materials before exportation. For instance, Nigeria is a major exporter of cocoa; rather than exporting cocoa alone, we could refine it into finished products such as chocolate and other by-products.The same goes for our crude oil, which we export and then buy back at exorbitant prices after refinement abroad.

“Additionally, we are calling for a manufacturing sector-specific tariff to alleviate production costs. We also demand a review of customs duties on imported raw materials.

“The government must work on providing basic infrastructure, such as roads, to aid logistics and distribution across the country. Even better, if the rail transport system can be made fully operational, these steps would directly benefit both companies and workers by reducing costs, stabilising employment, and making essential goods more accessible to Nigerians.”

January 10, 2025
PenCom: Making workers’, retirees’ dream a reality

Recent developments in the pension sector point to the fact that the National Pension Commission is determined to make retirees enjoy a better and fulfilling life after years of contributions to the country’s development. TOBA AGBOOLA reports

The National Pension Commission (PenCom) is living up to its billing as the vehicle for revolutionising the pension industry and making it easy for retirees to have unfettered access to their pensions as soon as the need arises.

Recall that for years, developments in the pension space have remained unsavoury despite attempts by the Federal Government to stabilise the sector and create an atmosphere for retirees to enjoy a better and fulfilling life after years of contributions to the country’s development.

With the obvious failure of the past endeavour under the Defined Benefit Scheme (DBS), the Contributory Pension Scheme (CPS) was introduced aimed at flushing out the ills of the past.

Despite efforts of the government in this direction, the system, though working according to the law, agitations by some contributors under the scheme appear to be giving it a semblance of a failed project.

The reason for this is not far-fetched. Since its inception about 20 years ago, some contributors have failed or, rather, are unwilling to understand why the scheme was set up in the first place and how it is expected to work.

Why the Federal Government’s intention is to ensure financial stability for retirees at the end of their working life, some contributors see it as another form of financial institution wherein they can save for some time then withdraw part or all what they had contributed.

Some others, who fail to understand the method of arriving at what is due to them as a monthly pension, have also complained harshly about the scheme.

Amid the controversy, some experts have attributed the misunderstanding to poor awareness and the harsh economic milieu.

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Some Retirement Savings Account holders, for instance, find it difficult to live with the fact of having so much money somewhere but paid a meagre amount monthly as a pension.

Although the money truly belongs to them, they have, however, failed to realise that the system is being run under the Pension Reform Act 2014.

While the agitations have lasted over the years, leading to resistance by some institutions to continue with the scheme, recent developments have revealed a deliberate act by the new management of the regulator, the National Pension Commission (PenCom), to engender an understanding to reform the sector for the benefits of retirees, government, the economy and the country.

Way Forward

Although the different managements, since inception, tried on their own to douse the tension that confronted them, there appears to be a new direction to the issue as the new Director-General of PenCom, Ms. Omolola Oloworaran, is charting a new and positive path.

This fact can be deduced from the simple approach applied recently to put an end to the dust raised by annuitants under the troubled African Alliance Insurance.

To ensure results, she went into collaboration with the National Insurance Commission (NAICOM), which yielded the expected result as the annuitants have been paid over N700 million after months of agitations.

During a visit to her by members of the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS), she made it clear that PenCom was collaborating with relevant stakeholders to address issues related to pension increases, accrued pension rights, and other pension liabilities.

She had promised that the nonpayment to annuitants under the African Alliance Insurance Company, which was being regulated by the National Insurance Commission (NAICOM) would soon be resolved.

“PenCom is working with NAICOM to resolve the issue and announce a regulatory change that will require pension funds under annuity to be domiciled with Pension Fund Custodians (PFCs) to prevent similar issues in the future,” she said.

The singular act of working with NAICOM and other stakeholders appears to be the magic wand to finally put an end to the escalating agitations in Nigeria’s pension circle. She made it clear to members of NUPCPS that the poor service delivery by any PFA to retirees would not be tolerated.

She said that PFAs and PenCom must provide accessible complaint channels to ensure speedy resolution of issues. With every arrangement in place, the director-general has projected that by the end of the year, the pension assets would be hitting N22 trillion with over 10 million contributors currently listed.

As part of her seriousness to break any form of logjam, the director-general has been engaging stakeholders including retirees, who are directly affected, across the country and making herself available and accessible for advice and possible direction where the need arises.

In an engagement with the media last week, Oloworaran provided further insights into how much she intends to ensure a successful pension programme for the benefit of retirees.

She said the Pension Industry Shared Service Initiative was in an advanced stage of implementation.

PenCom must provide accessible complaint channels to ensure speedy resolution of issues

According to her, the initiative would digitise pension contributions and remittances, ensuring seamless processing of contributions and resolving discrepancies caused by incomplete remittance details.

“To further enhance contributors’ experiences, we have introduced a revised programme withdrawal template, simplifying access to voluntary contributions and revising the threshold for enbloc payments in line with the new minimum wage.

“These measures are designed to make retirement processes more efficient and user-centric. But beyond policies and systems, what really excites me is the potential to transform lives,”she said.

According to her, technology has become the backbone of transformation across all sectors, and the pension industry is no exception, hence PenCom has embraced the transformation wholeheartedly.

Oloworaran said there were over 10.5 million contributors, while pension assets are in excess of N21.9 trillion as at October. She said this progress demonstrated the strength of the CPS, though not without challenges.

“Inflation, for instance, continues to erode the purchasing power of pensioners, and we are actively seeking innovative solutions to address this issue.

“We also continue to face the persistent issue of delays in the payment of accrued rights.

“Recently, N44 billion was approved under the 2024 budget appropriation to settle accrued pension rights for retirees from March to September 2023.

“Moving forward, we are working with the Federal Government to put in place a sustainable solution that ensures that retirees receive their benefits promptly and without undue stress,” she said.

She said since assuming duty, she and her team had been focused on strengthening compliance, enhancing service delivery, diversifying pension assets to optimising returns.

She said they had also been improving benefits and expanding coverage to include more Nigerians, especially those in the informal sector.

Ms Oloworaran expressed passion over the micro-pension initiative, in particular, noting that it is the commission’s way of fostering financial inclusion, no matter how small an earning might be.

She said the commission intended to use technology to scale the micro-pension plan. “Technology plays a vital role in driving this inclusion from mobile enrolment to real-time account management,” she said.

She said PenCom planned to rebrand the micro-pension scheme, and also target onboarding no fewer than 20 million Nigerians in the informal sector.

Oloworaran acknowledged the role of the media as stakeholders in the success of the system.

“As we integrate technology across every aspect of the pension industry, we are paving the way for a future where the CPS becomes more accessible, reliable, and sustainable.

“However, this transformation cannot succeed without your unwavering support as media practitioners.

“Your role in amplifying our initiatives and educating stakeholders across Nigeria is essential to achieving this vision,” she said. She described the ability of the media to inform, educate, and hold institutions accountable as invaluable.

“Together, we can ensure that every Nigerian, including the most vulnerable, has access to a secure and dignified retirement,” she said.

December 30, 2024