The Nation Newspaper

Category: Labour

  • Workers praise NNPC over welfare

    Workers praise NNPC over welfare

    Oil workers have described the administration and programmes of the Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Kacalla Baru, as workers-friendly.

    The workers under the Group Executive Councils (GECs) of National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) rated the Baru-led administration after a careful evaluation of its programmes.

    In a statement by the Secretaries of the two  unions, Comrade Sulaiman Sulaiman of PENGASSAN and Comrade Uche Amara of NUPENG, the workers said they had been following the GMD’s 12 Focus Area drive towards bringing back NNPC to the path of success with keen interest.

    The unions commended the plans and pronouncements toward a comprehensive rehabilitation of the three nation’s refineries to achieve optimal capacity utilisation by 2017.

    They noted that it was a clear drift from the initial position, which the unions always rejected, where important national assets were posited for sales as scrap, adding that the proposal to adopt a new model that will bring investors to increase productivity without having to lose jobs is commendable.

    “The recent familiarisation tour of all NNPC facilities by the GMD and the pronouncements made during the visits are clear demonstrations of Management resolve to carry along all stakeholders, especially the unions at all levels,” the workers stated in the statement.

    The workers listed areas such as promotions/redeployment, rehabilitation of refineries, and other welfare programmes,  inccluding wages and retirement benefits.

  • Union rejects Rail’s planned concessioning

    The Nigeria Union of Railway Workers (NURW) has rejected the planned concessioning of the Nigerian Railway Corporation (NRC) to safeguard selling public assets without appropriate technical valuation and labour disengagement.

    Its Secretary-General, Mr Segun Esan, who disclosed this to reporters in Lagos, noted that concessioning had reinforced underdevelopment, and encouraged massive unemployment with corruption.

    He said the system threatened the country’s security and existence. According to him, the system and the policy of concessioning had been consistently observed, and that assets of privatised enterprises had been deliberately undervalued.

    He described the policy as an abuse of due process, characterised by corruption, which has affected the outcome of the exercise, adding that the Bureau of Public Entreprise (BPE) has failed to exercise its oversight functions on the privatisation process.

    The House of Representatives had, at its plenary, moved to investigate the planned concessioning of the Nigerian Railways Corporation to General Electric, to avoid violating Nigeria’s privatisation law.

    The Federal Government constituted a 20-member committee on the concessioning of the Eastern and Western Lines of the Railways.

    Vice President Yemi Osinbajo inaugurated the committee headed by the Minister of Transportation, Rotimi Amaechi, at the Presidential Villa in August.

  • Recession: 6,000 jobs gone in maritime sector

    The maritime sector has lost over 6,000 jobs to the economic recession, and  many companies have closed down due to liquidity challenges, the President, Maritime Workers Union of Nigeria (MWUN), Emmanuel Nted, has said.

    He spoke at the union’s National Executive Council meeting and Special Delegates Conference in Lagos.

    According to him, Intels retrenched over 3,000 workers because of harsh operating environment since the economic recession started.

    He said the job losses were affecting the union, with more workers faced with insecurity, which has exposed the lives of their families to risks.

    The MWUN chief said it had become more difficult to protect members’ jobs in various branches, adding that the union had not been able to discuss the review of conditions of service.

    “Where collective bargaining agreement and conditions of services negotiations are due for review, the union is forced to accept marginal increases where possible and trading off increment, with withdrawal of redundancy threats.

    “We appeal to the government to find urgent solution to the recession before it escalates,” Nted said.

    He also urged the government to fix the deplorable roads leading to the seaports, adding that the problems is affecting the nation’s economy.

    The union leader said apart from the airports and the land borders, the seaports are another entry points for foreigners into the country.

    He said quick action should be taken to start the reconstruction of the roads leading to the seaports, since the contract had been awarded to avoid industrial action.

  • Ngige urges workers to brace for performance

    Ngige urges workers to brace for performance

    The Minister of Labour and Employment, Dr Chris Ngige, has warned that the Federal Government will not tolerate incompetence from the parastatals and agencies of government as it moves to push the nation out of recession in the year. He said the changing times demanded dynamic leadership.

    The minister said this during a working visit to the headquarters of three parastatals in the Ministry of Labour and Employment.

    Addressing the management and members of staff of the National Directorate of Employment (NDE), Ngige insisted that  in this recession, the NDE, which has a mandate for job creation, ought to distinguish itself in moving the country forward  through massive job creation in agriculture and mining.

    He said: “We must battle recession from all fronts. We must take Nigeria out of recession in 2017 and the National Directorate of Employment (NDE) shall lead the way. This agency must lead domestic production in agriculture and mining.

    “Nigeria must stop the importation of rice and other items we can produce here. Therefore, the NDE must redesign its programmes for the 2017 to align with massive job creation in agriculture, to sufficiently feed the nation and create jobs en mass.”

    At the headquarters of the Nigeria Social Industrial Trust Fund (NSITF), the minister urged its management to expand the Fund’s activities to the private sector to enable it benefit from the scheme, noting that it is a scheme aimed at providing insurance cover and compensation for injuries and accidents at work places.

    He regretted that some challenges had hampered NSITF’s mandate.

    “The bitter truth is that NSITF has not lived up to expectations. It is high time we changed our old ways so that the fund can fulfill its mandate. We must show more seriousness and face the work more squarely,” he said.

    During the visit to the National Productivity Centre (NPC), Ngige observed that one of the major problems facing the nation is its inability to measure her productivity, adding that no nation has ever made progress without proper attention to productivity measurement.

    The Minister added: “The administration of President Muhammadu Buhari has productivity as a priority, but a lot of Nigerians do not know and appreciate what you are doing; there is a need, therefore, for a lot of sensitisation.’’

  • Why NLC leadership crises persist

    Why NLC leadership crises persist

    For many workers, the Nigeria Labour Congress (NLC) remains an avenue for achieving a decent wage and ensure that their welfare is not undermined by their employers. However, after its National Delegates Conference in March 2015, a major crack emerged in the leadership of the Congress. This has led to the emergence of a new Labour Centre. In this Interview with TONY AKOWE, NLC President  Comrade Ayuba Wabba speaks on the new centre and what it portends for the labour movement in the country, demand for a new minimum wage for workers, among other issues.

    A new Labour Centre has been launched. What is  its implication to organised labour, particularly the NLC?

    Let me assure you that we will do everything possible to preserve the unity of the labour movement, not only with them, but also with our colleagues in the  Trade Union Congress (TUC). Essentially, we have done everything possible to try and ensure that the issue of reconciliation after the 2015 conference is addressed. You are also aware that our veterans have put in their best, especially the founding President, Comrade Hassan Summonu. But it is unfortunate when people try to occupy positions at all cost. You are also aware that at a time, they declared themselves President and Deputy President, particularly the gladiators in this whole thing, Joe Ajaero and Igwe Achese. The facts are quite obvious because you all participated in the conference. This is a conference that was adjudged free, fair and credible by all organisations, including the International Labour Organisation ( ILO), the Federal Ministry of Labour and the International Trade Union Confederation, which actually participated in the process. With all these, it is very obvious that people just want to insist that they must occupy positions at all cost. The joy we have is that we are connected with our people because the formation of a centre is something that has to do with the rank and file. The strength of every centre is in the rank and file and it is very clear and you have seen how we have been able to engage issues in the states, even in their states. The joy we have is that we are connected with the people and we will do everything to address the issue, but that will not deter us because it is about the people. The process of forming a labour centre entails that all the components will have to go to their delegates conference to get mandate and we are all aware that that mandate has not been obtained by any of them. But that is not to say that it is not an issue. Of course, it is an issue and that is why I have issued a formal statement which captured all the approach to be taken.

    There are claims of about 28 affiliates. Could these be from those we know with the NLC or other unions? Also, does the law allow the formation of another labour centre?

    Those are issues we will take up. But I think this is part of the misinformation because if you have this number, you ought to have listed them so that people can interrogate all of them. But this is not the issue we are approaching now. We are approaching it from the perspective that it is an issue and we are going to respond to it through our organs. You, as journalists, are supposed to interrogate these issues because if I tell you that I have 10 children, you will ask me what is their names. Different interest groups have quoted different figures and if you remember, through out the period of the challenge, a lot of figures have been quoted at different times and this is part of it.

    We will not dissipate energy to try to look at the number and the people. But if you look at the figures, they quoted some from TUC and some from NLC, but the list has jot been made very clear. The issue however is that we are committed to defending the interest of the workers. In their communique, the raised the issue of the challenge of payment of salaries and I don’t know what engagement they have done in respect of that. Even where we went to organise joint approaches to respond to those issues, even in their own states, they went under.

    That is to tell you that it is the unity of the movement that can salvage some of those issues. We are committed to that, but the list of those union has not been listed. But I am aware that the issue of registration of trade unions has become a matter of cash and carry. When you pay money people try to register you overnight. We are going to interrogate the law, get the details and make sure that where the laws are not respected, we respond to them effectively. But we will follow all due processes to ensure that the unity is restored.

    Do you agree that the reconciliation process has not yielded any  result?

    I will not agree with you because in a process of reconciliation, the two groups must be really committed. If you remember, the process of reconciliation has been on and when we held the lady meeting in March, everything was agreed upon, including the fact that only one leadership of the NLC is recognised and that the conference that brought us in is sacrosanct. Hassan Summonu has spoken on this and to our dismay, they issued a letter trying to castigate him. What I am saying is that right from the beginning, you can see that people were not actually committed to the process of reconciliation. But our elders have been committed and we have been committed. But that does not mean that the process of reconciliation has no meaning. Essentially, whatever challenges that occurred in organisations can best be resolved through reconciliation or through a round table. We have remain committed to that and we have played our role effectively. But it takes two to tangle for those issues to be resolved.

    Both parties in this dispute   pledged their commitment to the reconciliation, but nobody has said what the grey areas are and why what was agreed upon has not been implemented. What are their demands?

    During the reconciliation meetings, we agreed that the my leadership of the NLC is recognised by all. We also agreed that in the course of the lifespan of this administration, if there is any vacancy that arose either from retirement or any other course, those position will be filled by NEC and they will be given consideration. All the details in that agreement will be driven by the National Executive Council and that we should have a joint May Day.This was signed by all parties. Comrade Adams Oshiomhole signed the document, I signed it, Ajaero signed it and Hassan Summonu also signed it. That is why I keep saying that we have remained very consistent and committed.

    What  role for Ministry of Labour and Employment in all these, especially the Trade Union Department?

    The information at our disposal is still very sketchy because we don’t know their roles. As you are aware, all these things require processes. If you are forming a union, it is also required that you put an advertorial where all parties that need to respond can do so especially where it has to do with law and where members interest must be carried along. Those members must be able to interrogate the process and raise objection or agreement where they exist. I am not sure all of these have taken places because if it had taken place, you would have followed the process. We will try to follow all the details, including getting our members who are affiliate of any union that has been so mentioned to actually follow up the process. As I said earlier, in most of our constitutions, in joining a labour centre, you must go to your delegates conference to get mandate and we are all aware that none of them has gotten that mandate. Right now, it is merely about individuals trying to occupy positions at all cost after a very successful conference. Those are issues that we are very familiar with. Those are the issues and as members of the press, you can also interrogate the process, including the Federal Ministry of Labour who ought to have made the whole process very transparent and open if there is any process at all. So, these are the details we have for now and we will follow up these details and consult with our organs and when we do that, we can then give very credible information. For now, I want to assure you that we remain committed to the ideals of a united labour movement.

    What is delaying committee work on minimum wage?

    Let me make this point very clear. The issue of minimum wage remains very sacrosanct, the review is due and I have said we cannot guarantee industrial peace any longer if necessary steps are not taken by government to resolve this issue before the next May Day. We have sent formal notice of demand as required by law to the government to try and constitute the committee. As we speak, the Minimum Wage Committee has not been constituted. What we have in place is the committee working on the palliatives. I am aware that part of what they have considered is the structure of  the minimum wage committee. But the committee to discuss and negotiate minimum wage has not been set up till date. So, we are mixing two issues. The committee set up to look into the palliatives is what we are all,referring to as minimum wage committee and I think that committee is about to round up whatever recommendations they have after which the joint committee of government and the two labour Centres will meet to loom at their recommendations. But essentially, the committee to dialogue and negotiate the minimum wage which is supposed to be tripartite has jot been set up. If it has been set up, you would have been aware of the membership and terms of reference as well as the timeline to dispose off this issue. It is a very sensitive issues because a lot of our members have been subjected to lots of difficulties because their purchasing power has been reduced to nothing because of inflation in the system as a result of the free fall of the naira. Mist workers cannot meet up with their daily needs and this has been compounded by the fact that cost of goods and services has gone up. Put side by side with the fight against corruption is that a worker has to be paid a decent wage for him to have a meaningful living. I want emphatically say that the committee has not been set up and so, when I hear that government will be increasing wages, I wonder from which perspective because usually, the issue of minimum wage is done through a tripartite arrangement of government, employers and organised labour. Once you don’t have the platform put the process in place, I don’t think you will be expecting results. This is the obvious fact at outrdisposal which we are working with and I think that those issues are very explicit and it is one issue that we are very passionate about. It is one process that we have continued to ask government to do everything possible to drive to a logical completion. What we are waiting for right now is the submission of the report of the palliative committee because the urgency which is required is also stated in that report and I am aware they have completed their assignments what remains is for them to adopt the report before bringing it before the attention of the house.

    Many people  feel the organised labour does not serve its purpose.  The naira has been so devalued and labour has done nothing. Why?

    If you look at our anti indents and the struggle we have led particularly on the right of workers and decent work, despite the challenges that tried to undermine our strength, you must commend us. You must understand how the minimum wage work. Labour will have to make a presentation which we have done in consultation with TUC. You are also aware that before this issue was included on the agenda of the palliative committee, it was because of the action that we did. You also realised that even with that, we have remained very consistent on the issue of the minimum wage. You must also understand that the issue of the minimum wage is an issue that has featured at every of our meeting prominently because you must follow the processes and the states. The stage we are is because if the fact that the palliatives committee need to conclude their assignment and then, we drive the process from there. I want to assure you that we remain very committed to that. But it is an issue that we all need to be on the same page.

    Is it logical for labour to request for an increase in minimum wage at a time like this?

    The issue of paucity of fund is an excuse that is worn out. The problem of Nigeria is not lack of money, but mismanagement which all of us have come to agree. If you look at the resources that accrue to Nigerian states for the past six or seven years, and we have not planned adequately to take care of the rainy days when the resources will dwindle, points to the fact that the developmental challenges of Nigeria is not about resources, but about mismanagement. Therefore, let us situate all of this in a proper context to understand them. If there is the will, there will be the way and you can also realise that even in the midle of recession in the United States (U.S,), they increase the minimum wage because of the fact that you need to empower the people to have the means to continue to purchase so that the process of manufacturing can continue. We have argued that point long before now and therefore, let us not be under any illusion that any government, at any point in time, will say we have enough. It is about demands and contestations as well as our priorities. Where do we situate our priorities? We still have states where bogus contracts are still being awarded even when they have no direct bearing on the lives of the citizens. Those are the arguments. So, let us not hide under any illusion to think that the situation will remain the way it is. Our prayer is that after this quarter, we should be able to get out of recession. We must be able to make progress and therefore, we must not, as citizens continue to hide under recession and put a lot of things in abeyance. We must, through a process of constructive approach, try to make sure that the economy gets started and part of it is to put money in the hands of citizens so that they will be able to have a meaningful life and economic activities can pick up. If you don’t have wealth distributed among citizens, then the situation will continue the way it is and we will continue to lament. That is not our approach. Our approach is, how do we even kick start the economy. You do that by having money in the hands of the people where businesses and manufacturing can take place.

  • Labour: ‘It was a trying year’

    Labour: ‘It was a trying year’

    These are not the best of times for workers. According to organised labour, the N18, 000 minimum wage can hardly fetch anything in the market as prices of goods have gone up by at least 70 per cent. Labour also laments job losses by millions of Nigerians. TOBA AGBOOLA reports.

    Labour has described 2016 as a trying year for workers.It blames it on the low oil price. The situation, it notes, is worsened by the  fall of the naira, which has lost over 40 per cent of its value since oil prices began to fall.

    Speaking with The Nation, Nigeria Labour Congress (NLC) President  Ayuba Wabba said the congress would  liaise with its allies when the need arises to engage the government and other critical stakeholders on workers, welfare. He asked for the people’s prayers for a better Nigeria in 2017.

    He said the outgoing year was an eventful and challenging one for workers due to some  developments, which tested worker’ resilience.

    According to him, the economic situation was compounded by the massive corruption and maladministration of the past administration which cut across all tiers of government.

    “This combined to further incapacitate workers and the masses. Many governors left unpaid workers’ salaries ranging from three to nine months,” he said.

     

    Labour embarked on indefinite strike over fuel price hike

    The Nigeria Labour Congress, NLC, and Trade Union Congress, TUC, in May 2016, embarked on an indefinite strike to protest the hike in pump price of petrol.

    This was the resolution of  the groups at a meeting held at NLC headquarters in Abuja.

    The strike which started around 12 mid-night on May 18, saw the two unions embark on an indefinite strike.

    The union in a statement said: “Our decision not to suspend the strike was further fuelled by today’s injunction by the Industrial Court, restraining us from proceeding on the strike expected to begin tomorrow”.

    While the NLC resolved to go ahead with its planned strike over fuel price hike, TUC opted out.

    The National President of the TUC, Comrade Kiagama Bobboi, gave reasons why the TUC disagreed with the NLC shortly before the commencement of the planned strike, saying that NLC was dogmatic in pressing its demands.

    Speaking with The Nation Kaigama said the NLC came to the negotiation table with only one item, which was that the price of fuel be reverted to N86 per litre, even though the meeting with government afforded labour opportunity to address the contending issues once and for all.

    However, on May 22 in Abuja, NLC suspended its nationwide strike to protest hike in electricity tariff and increase in the pump price of petrol in the country.

    This was contained in a communique at the end of an emergency meeting of the National Executive Council (NEC) of the congress.

    The communique, signed by Ayuba Wabba and Dr Peter Ozo-Eson, President and General-Secretary of the congress respectively, stated that the suspension was with immediate effect.

    The congress praised the leadership of the National Assembly and All Progressives Congress, led by Bola Tinubu, for the interfacing between Labour and government on the issue.

    The communique said that after due consultation with NASS and the intervention of Tinubu, NEC with its constituents, resolved to suspend the strike that began on May 18.

    “The congress will resume negotiation with government on the twin issues of hike in electricity tariff and increase in the pump price of petroleum products and any other issues that may arise thereof,”it said.

     

     Labour demanded for 300% increase in minimum wage

    This year’s May Day activities in Nigeria were marked with the Nigerian Labour Congress (NLC) and the Trade Unions Congress (TUC) jointly tabling a demand for the upward review of the national minimum wage from N18,000 to N56,000.

    Labour hinged its demands, despite the parlous state of the economy, on the grounds that a minimum wage review is long overdue.

    Labour leaders considered the wage increase a matter of necessity and legality.

    Interestingly, the union’s demand came at a period when government at all levels were facing a cash crunch.

     

    Fed Govt responded to NLC proposal

    President Buhari in one of his speeches assured workers of improved incentives to promote productivity. The President lamented the economic challenges facing the country.

    Though, Federal Government had proposed N45,000 as new minimum wage as against the N56,000 proposal to NLC, after the last meeting held.

    But the increase came with some conditions including the reduction in the number of civil servants and merging ministries and agencies. Although many issues were discussed.

    Ultimately workers and the labour unions will have to wait for the recommendations of the constituted 15-man committee for the review of the minimum wage.

     

    Fed Govt set up technical committee on minimum wage

    The Federal Government and the Nigeria Labour Congress (NLC) on May 25  agreed to establish a 16-man technical committee to discuss the issues on minimum wages and other palliatives arising from the recent increase in the price of fuel.

    The technical committee was to be chaired by a government nominee, Alhaji Muhammadu Buba, the former Managing Director of Pipeline Products Marketing Company (PPMC).

    The agreement was reached after many hours of negotiation between government officials led by the Secretary to the Government of the Federation (SGF), Babachir David Lawal, Minister of Labour and Employment, Dr. Chris Ngige, Minister of State for Solid Minerals, Dr. Kayode Fayemi, Edo State Governor, Adam Oshiomhole and NLC led by Ayuba Wabba. The committee was to discuss the minimum wage and modalities of implementing it.

     

    NLC faction disrupted NECA’s  AGM

    A faction of the NLC led by Joseph Ajaer, during the year disrupted the Annual General Meeting of the employers group, Nigeria Employers’ Consultative Association.

    Members of the labour faction stormed NECA’s yearly meeting carrying placards and singing solidarity songs.

    They called on NECA Director-General, Olusegun Oshinowo, to stop victimising workers by supporting massive sack in the private sector.

    Speaking on his grouse with Oshinowo, Ajaero said the DG was not in the best position to call any faction of a union illegal.

     

     Fed Govt renewed commitment to protection of child labour rights

    The Federal Government on June 25  renewed its commitment to the protection of child labour rights in a move to ratify the implementation of international conventions.

    Minister of Labour and Employment, Sen. Chris Ngige, stated this in Abuja during the occasion marking the 2016 World Day against Child Labour.

    He observed that renewing the commitment will help fast-track the administration’s quest to consolidate the promotion of internationally recognised acts and conventions that prohibit the engagement of children in hard labour and other slavery activities.

    He said: “I want to use this opportunity to express and renew our commitment to promoting internationally recognised Child Labour Rights, Conventions and Protocols adopted and ratified for the elimination of child labour, enforcement of minimum age at work and promotion of the African Charter on Rights of the Child.”

    Further, the minister emphas-ised that child labour is a socio-economic challenge affecting not only Nigeria and African region but the entire world.

    He, therefore, called on all stakeholders to join the Federal Government in mobilising support for the ratified ILO Conventions No. 138 on Minimum Age for Employment, and No. 182 on Elimination of the Worst Forms of Child Labour, including the implementation of National Policy on Child Labour, National Action Plan for the Elimination of Child Labour in Nigeria and List of Hazardous Child Labour in Nigeria.

     

    Nigeria’s unemployment rate rises to 13.9% – NBS

    The National Bureau of Statistics  said the country’s unemployment rate has risen from 13.3 per cent in the second quarter of this year to 13.9 per cent as at the end of the third quarter.

    The bureau stated this in the unemployment report which was released by the Statistician General of the Federation in Abuja.

    In the report, the bureau said the number of economically active people increased from 106.69 million in the second quarter to 108.03 million in the third quarter.

    It added that during the period, a total number of 554,311 fresh people out of those that joined the labour force were unemployed in the third quarter.

    This, according to the report, represents a 1.26 per cent increase over the previous quarter and a 3.57 per cent increase when compared to the corresponding third quarter of 2015.

    The report reads in part, “The number of underemployed in the labour force increased by 501,074 or 3.25 per cent resulting in an increase in the underemployment rate from 19.3  per cent in Q2 2016 to 19.7 per cent (15.9 million persons) in Q3 2016.

    “This is marginal increase of 0.4 percentage points between quarters 2 and 3 of 2016, and shows a steady rise in the rate since Q3 of 2015.

    “During the reference period, the number of unemployed in the labour force, increased by 554,311 persons, resulting in an increase in the national unemployment rate to 13.9 per cent in Q3 2016 from 13.3 per cent in Q2.”

    The report stated that unemployment and underemployment was highest for persons in the labour force between the ages of 15 24 and 25 34, which represents the youth population.

    It noted that as was the case in previous quarters, unemployment and underemployment was higher for women than men in the third quarter of 2016.

    For instance, it said while 15.9 per cent of women in the labour force were unemployed in the third quarter of 2016, a further 22.9 per cent of women in the labour force were underemployed during the period.

    On the other hand, the report said 12 per cent of males were unemployed in the third quarter of 2016, while a further 16.7 per cent of males in the labour force were underemployed during the same period.

  • DG laments 8.9% capital release for SMEDAN operations

    DG laments 8.9% capital release for SMEDAN operations

    Operations of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have been crippled by the 8.99 per cent release of its 2016 capital budget.

    Its Director-General (DG), Dr Dikko Umaru  Radda, made this known while presenting the agency’s progress report to  House of Representatives members who visited the Industrial Development Centre (IDC) office in Lagos.

    According to Radda, SMEDAN had N193.9 million as its 2016 appropriation for overhead, and capital vote of N1.79billion.

    He said of the N193.9 million slated for overhead, only N121 million was released to the agency while a meagre sum of N161million was released to date out of the N1.79 billion appropriated for capital project.

    He said based on the releases to the agency, budget performance stood at 61.25 per cent for overhead and 8.99 per cent for capital, adding that the total expenditure for overhead as at December 13, 2016 were N118 million and N161 million for capital.

    Other issues raised by the DG included the establishment of an affordable and sustainable funding for MSME’s development in Nigeria.

    This, according to him, will include soft loan, matching grants and interest-free loans for their development.

    This, he said, would reduce the funding gap for MSME’s in Nigeria estimated to be in the region of N9 trillion by the Central Bank of Nigeria (CBN).

    He emphasised the need for an improved funding of the agency, if the job creation organisation was to achieve its lofty objectives like its counterparts in other parts of the world.

    He said emphasis should be on statutory funding of 0.5 per cent tax on some imported finished products that could be locally produced. He explained that additional funding would be used in the areas of capacity building for MSME’s, strengthening of nationwide structures for MSME’s, monitoring and evaluation and impact assessment programme, empowerment for MSME’s and provision of common facilities, among others.

    Radda also advocated government’s provision of technological support for MSME’s in the areas of ICT, promotion research, development and innovation, promotion of technology commercialisation platform.

    He also listed other areas of immediate concern to MSME subsector to include funding of Business Development Services (BDC), which encompasses training and skills upgrading programme in the areas of MSME’s-University Internship programme.

    Responding, Chairman, House Committee on Industry, Hon.  Hussaini Moriki, commended the  management of SMEDAN, who in spite of lean financial resources, managed to impact on the MSME’s.

    The committee, he said, was impressed with the presentation of the DG, promising to intervene to draw the attention of the Federal Government to the challenges of the agency, which he described as the key to the actualisation of the government drive to diversify the economy and create the needed jobs for the growing unemployed in the country.

    He said the committee would look into the amendment of the Act establishing the agency  to give it more power to develop the MSME sector of the economy.

    The House Committee members later undertook a tour of the IDC in Ikorodu, where they lamented the encroachment of the centre and promised to take appropriate action.

  • TUC seeks NHIS’ removal from TSA

    TUC seeks NHIS’ removal from TSA

    The Trade Union Congress of Nigeria (TUC) has urged President Muhammadu Buhari to direct Health Insurance Scheme (NHIS) funds be removed from the Treasury Single Account (TSA).

    Speaking with reporters in Lagos, TUC President, Comrade Bobboi Bala Kaigama, said if the funds were not paid back into NHIS coffers, the scheme might collapse.

    “The withdrawal of humongous sums of money in the National Health Insurance Scheme fund and its subsequent lodgement into the Treasury Single Account (TSA) has gravely affected the operations and financial capability of the scheme in terms of growing the pooled fund.

    “This trend, if not reversed urgently, will adversely affect future activities and operations of the scheme,” he emphasised.

    The TUC chief said the NHIS was not a revenue generating agency since its funds come from the pool of workers, contributions,” he said.

    He added that the NHIS was established by the National Assembly Act CAP.42 LFN 2004 to provide health services to workers at affordable cost while treating tertiary related diseases, emergency health situations, and to eliminate huge out-of-pocket expenses.

    “For the avoidance of doubt, we wish to categorically state that NHIS by the Act that established it has never been a revenue generating agency for the government.

    “The contributions to the NHIS coffers are funds pooled majorly from monthly salaries of dedicated workers, money from international donors and voluntary contributions from private individuals,” Kaigama said.

    Kaigama emphasised that the NHIS was set up to cater for the healthcare of its contributing enrollees whose funds were the life of the scheme and by extension to provide universal healthcare coverage for all Nigerians.

    “If the Federal Government insists that its wrongly held position on the matter will not change, traden unions may be left with no other option than to seek redress in the law court in order to defend the overall interest of the workers who are the major contributors to the Scheme,” the Union emphasised.

  • Recession offers opportunities for SMEs’growth, says expert

    President of Successedge Exporters Network (SEEN), Mr. Godwin Abiodun Oyefeso, has said economic recession does not mean an end to life. He said it  could be a springboard for the growth of Small and Medium Enterprises (SMEs) in the country.

    Oyefeso, while delivering a paper entitled: “Economic recession, the power of change in life and opportunities for SMEs in the non-oil export of the economy”, during a conference in Lagos, pointed out that recession could provide a lot of opportunities for businesses.

    He admitted that recession could bring feelings of lack, poverty, pain and loss, but it could provide a lot of opportunities for the growth of SMEs.

    He explained that most successful companies such as FED EX, Microsoft, CNN, HP started during recessionary periods because their founders identified some opportunities that existed within the period and filled them.

    He said: “While we hear so much about how the net worth of billionaires and millionaires are shrinking, there are a lot of millionaires increasing their net worth or being made. This rich people have created a recession profit lifestyle and do more than survive during a recession.

    “The key to understanding a recession is that the country’s economy is different from your personal economy. In fact, the recession provides the greatest opportunities for taking your life into your own hands. Just like having a raining season like economic boom and recession.

    “The following are strategies one can use to survive in a recession: diversity your income, use other people’s money and do the something, but different.”

    According to him, Michael J. Cullen, who revolutionised American life by creating the modern supermarket, left his work in 1930 to start a self-serve supermarket with space for auto mobile parking and within two years, he made about $6 million in revenue.

    ‘’In Kentucky, United States (US), a good grandfather called Colonel Sanders, started serving chicken at his gas station during the great depression and by 1937, he had expended to 142 seat restaurant due to popular demand.

    ‘’In October 2008 during the height of financial crises, Warren Bullet bought $5 billion shares in Goldman and $3 billion in General Electric. Following this investment, Buttet made billions of dollars at a 10 per cent premium over his initial investment.’’

    Oyefeso added: “If you have funds, this is the time to purchase real estate assets. Rather than copying others, look for what everybody is doing and fill a need and do it differently.

    “Start a business with low start-up cost. Coincidently, most survivalist entrepreneurs typically open business in the food industry. Invest or purchase under- valued assets.’’

  • Union canvasses input to NLNG Act, others

    Union canvasses input to NLNG Act, others

    Oil workers have called on the Federal Government and the National Assembly to ensure that stakeholders in the oil and gas industry are engaged in the  implementation of the new Joint Venture (JV) Cash Calls, passage of the Petroleum Industry Governance Bill (PIB) and  amendment of the Nigeria LNG (NLNG) Act.

    The workers, under the aegis of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), made the call after their National Executive Council (NEC) meeting in Abuja. In a communiqué issued after the NEC meeting, the senior staff trade union commended the Federal Government’s efforts at exiting the JV Cash Calls that led to its indebtedness to the International Oil Companies (IOCs) and the attendant challenges associated with the system.

    The communiqué read in part: “The NEC-in-Session appreciates the Federal Government efforts in the payment of arrears of Joint Venture Cash Calls, particularly the establishment of a roadmap to clear outstanding Cash Calls arrears.

    “The NEC-in-Session reiterates the need for the Federal Government to engage the labour unions in the implementation of the proposed new Joint Venture Cash Calls structure which is scheduled to commence in January, 2017.”

    Expressing its observation on a recent attempt to amend the NLNG Act (Fiscal, Guarantees, Assurances and Incentives) by the House of Representatives, PENGASSAN said the consequences of the proposed amendment, which among several things, will impinge on the continued existence of the nation’s most productive public corporation.

    It also noted that the proposed amendment will discourage inflow of foreign investment, lead to loss of $25 billion investment, loss of 18,000 potential jobs, reverse gains in gas flaring reduction and constrain NLNG’s development initiatives in the Niger Delta region.

    The association, therefore, advised the House of Representatives to seek wider stakeholders’ inputs before commencing the proposed amendment of the NLNG Act.

    While commending the recent efforts by the National Assembly to start the speedy passage of the PIB, the PENGASSAN noted that the delay in passage of the bill has been a disincentive to investments in Nigeria’s oil and gas industry.

    The trade union, particularly, commended the thoughtfulness of the Senate Joint Committee on Petroleum for facilitating the public hearing held between December 7 and 9; but demanded that an all-inclusive industry Stakeholders’  Summit be convened to ensure that various stakeholders’ input, especially NUPENG and PENGASSAN positions with regards to labour matters are adequately represented in the bill.