The Nation Newspaper

Category: Business

  • Maritime: In the grip of foreigners

    Maritime: In the grip of foreigners

    Those with a eye for business spot a lucrative trade when they see one. With their trained eyes, they have since identified maritime business as a money spinning venture. But there is a problem. Nigerians do not have the financial muscle to invest in it. They don’t also have the required personnel.

    Worried by the dearth of indigenous seafarers, stakeholders are concerned that Nigeria’s maritime trade is largely in the hands of foreigners. This can be seen in the volume of petroleum products transported by foreign vessels.

    Aside the ownership structure of most ocean liners, which is foreign dominated, mariners who are in the employ of the vessels, are of foreign stock. The ships are either manned by Philippines, Malaysians or Indians, leaving the few local hands in the lurch.

    Stakeholders have also pointed out that foreign seafarers engaged in the nation’s coastal trade earn between $1.5 and $2billion annually. To redress this, they said the government needs to create a conducive environment and partner private operators on ship building or acquisition for training to develop a robust pool of seafarers to replenish ageing seafarers and reposition the sector.

    Liquidation of NNSL

    Since the dissolution of the defunct Nigerian National Shipping Line (NNSL), investigation revealed that there has been a major gap in the training of seafarers in the last 15 to 18 years.

    The Managing Director, Badmus Shipping, Chief Fola Badmus said since the liquidation of the NNSL in 1995, the maritime industry has suffered a generational vacuum in the area of manpower training, making succession in the sector a herculean task. The vacuum created due to lack of training vessels, he argued, has created opportunity for foreigners to exploit the nation’s waters, leaving little or no job for Nigerians.

    Available data from the Nigerian Maritime Administration and safety Agency (NIMASA), showed that seafarers from Malaysia, the Philippines and India, who work on Nigerian waters, take home between $1.5 billion to $2 billion annually because of lack of certified indigenous manpower.

    The agency’s data also revealed that of the nation’s population of over 160 million, only 1,388 officers and ratings are registered; Ghana has 1,879 officers and 7,000 ratings.
    Badmus said the curriculum of the Maritime Academy of Nigeria (MAN), Oron, the only institute in the country for seafarers, is not designed to award internationally-recognised certificates. Similarly, because of the dearth of employment, graduates of the academy, he said, end up on the streets doing unrelated jobs.

    Expressing dissatisfaction, former National President of Master Mariners, Adewale Ishola, said in the 70s, there was yearly intake of cadets for training in institutions in the United Kingdom, Canada, Egypt and Singapore, adding that there was also a Memorandum of Understanding (MoU) to train Nigeria’s Deck Officers and Marine Engineers at the regional academy in Ghana, which, according to him, is no longer obtainable.

    He pointed out that even before the creation of the then National Maritime Authority, the Nigerian Ports Authority (NPA) was training cadets through the Ministry of Transport, as well as the Nigerian National Petroleum Corporation (NNPC). He said some of them graduated with Masters and as first class engineers, but regretted that there were no jobs for them, adding that most of them had to look elsewhere for jobs.

    The former Master Mariner said because there were not enough hands to fill the vacancies in oil and gas, foreigners were brought in for some jobs. He said the Nigerian Liquefied Natural Gas (NLNG) was only training cadets to suit its needs, adding that the country is in need of seamen who can handle all types of cargoes.
    He said there was the urgent need for government to bring on a new set of skilled hands to take over from those expected to retire soon.

    Of the 5,000 seafarers in the country, less than 1,000 are Nigerians, the remaining, he said, are foreigners.  He said over 250,000 vacancies exist for seafarers but Nigerians lack the capacity to fill them.

    The dominance of the sector by foreigners, he said, is among the challenges facing NIMASA. The agency told The Nation, it is working to ensure that Nigerians take their rightful positions in the international maritime business.

    Partnership to build vessels

    The Managing Director, Shipping and Logistic Training, Gbolahan Adesegun, said there are no vessels fully-equipped for cadet training, urging the government to take the issue of acquisition of vessels through private initiative seriously.

    The campaign for more seafarers, he said would become more effective if there is partnership with shipyards to develop their capacities to build ships locally for the Nigerian industry, otherwise, NIMASA will be working on a platform that is fragile, unrealistic and not cost effective.

    Adesegun said reasonable progress can only be made by strengthening the local ship capacity building initiative to ensure seafarers are developed to satisfy the needs of the industry.

    Gains from seafarers

    Secretary General of the Indigenous Ship owners Association of Nigeria (ISAN) Niyi Labinjo said Philippines, with a population of over 80 million, has maximised the benefits of developing its maritime labour sector. It supplies over 30 per cent or 300,000 of the 1.2 million world seafarers.

    From this, he said, Philippines earns over $5 billion for its economy from repatriated income.
    He said Filipino seafarers dominate the maritime labour market because of the concerted national efforts in that direction. They are among the country’s eight to 10 million migrant workers scattered across the world, whose remittances, as acknowledged even by the government, have helped buoy the economy.

    Every year, Filipino workers overseas, send home over $15 billion or 10 per cent of the Philippine’s gross domestic product (GDP). The GDP is the total value of goods and services produced by the country in a year.

    In some economies, Filipino sailors constitute more than 55 per cent of the maritime personnel.  Labinjo said seafarers’ development is a strategic programme of the Philippine government because of the tremendous earnings from maritime manpower export. He urged the government to emulate that country.

    Poor implementation of Cabotage Act

    According to ship owners, poor implementation of the Coastal and Inland Shipping Act (Cabotage), aimed at creating jobs for indigenous ship owners, has resulted in low involvement of indigenous firms in shipping business. They argued that the nation was losing huge revenue to capital flight.

    A major problem affecting the implementation of the Act, they said, is the dearth of manpower, brought about by training facilities and personnel. According to the ship owners, this is why the nation cannot successfully implement Cabotage as the law requires that all indigenous vessels be manned by Nigerians.

    Lack of training vessels

    Despite the country having a training academy in Oron, the gap in seafarers development remains worrisome.

    Graduates from Oron find it difficult to compete with their counterparts elsewhere. Stakeholders attribute this defect to lack of technical structure, ranging from lack of training vessels to other platforms required for the practical training of cadets from MAN, Oron.

    The General Manager, Public Affairs, Nigerian Ports Authority (NPA), Chief Michael Ajayi, said a feasible plan of funding for the academy is needed so as to churn out seafarers that can stand international competition.

    With globalisation, increased trade and maritime transport, there’s the need for at least 50,000 new maritime officers in the next five years, Ajayi said, adding that seafaring is a specialised endeavour which demands provision of key resources which cannot be compromised if the demand of the global maritime market is to be met.
    The implication of this is the deplorable state of training facilities at Oron, which has suffered neglect in terms of resources for quality maritime education.

    He said the poor state of affairs at the academy demanded that emphasis be placed on resources to ensure the highest standard of training.
    Ajayi, said it is expedient to establish more academies, adding that efforts should be made to improve the academy to boost manpower development.
    Ajayi said there is need for training if the nation wished to meet the maritime personnel needs, adding that the major challenge after training is completing the stipulated sea time.

    He said significant steps be taken to expand the capacity of the Oron Academy and provide navigational and seamanship training. The academy, he said, is in need of attention and much remained to be done to enable it deliver vital services to the industry.

    Job prospects

    The President, Association of Nigerian Licensed Customs Agents (ANLCA), Alhaji Olayiwola Shittu, said jobs abound on board vessels for cooks, carpenters, marine engineers, seamen and others with good remuneration.
    He said there are enormous opportunities in the maritime sector, adding that the country needs more seafarers to maximise benefits of the sector.
    Interest in maritime, he said would augur well for the industry.

    NIMASA’s role

    NIMASA Director-General Mr Patrick Akpobolokemi said about 50,000 seafaring jobs would be created for Nigerians.
    To address the matter, he said, over 75 persons have been sent abroad for seafaring training under collaborative arrangement between the Federal Government and those countries.

    NIMASA set up the training programme as a strategic intervention designed to address the short-medium term manpower requirements of the sector to create a large pool of seafarers in the next few years.

    The generational gap in the sector requires intervention because the seafarers’ pool had further depleted because of low life expectancy, death and expanded manning requirements, pointing out that the programme would reposition the economy by building a strong transport sector, especially through shipping because of its critical nature to the economy.

    Akpobolokemi said there was need to develop manpower and the country’s capacity, noting that Nigeria needs at least 50,000 seafarers to man vessels operating on Cabotage.

    “The first batch of cadets is now onboard undergoing sea-time training. The initiative was a wake up call towards meeting the demand of the global shortage of seafarers. Nigeria decided to take a bold step with the intention to work towards meeting the demand as well as wealth creation, by training more Nigerian youths and supporting their gainful employment in line with Mr. President’s transformation agenda.

    “You see, even if you restrict yourself to the Nigerian coastal trade or the cabotage, we have over 50,000 jobs and because of lack of capacity, most of these jobs are being taken by foreigners. NIMASA has started the development of seafaring. We have started the National Seafarers’ Development, where each state is to participate by putting 25 seafarers per annum. NIMASA pays 40 per cent of the cost of their training, while the states that send them pay the remaining 60 per cent.

    “Because we realise that one of the problems we have is seafarers’ training institute, the agency is at the moment exploiting areas where partnership will be made with seafarers institutions to develop. So far, we have only one, MAN, Oron, which is not capable of providing all our personal needs, so, we are training overseas.
    “Also, the University of Lagos, Niger Delta University and the University of Technology, Minna, will have seafarers training programmes. A substantial amount of money has been voted for that purpose in those institutions,” he said.

  • What’s the next level for Nestle Nigeria?

    What’s the next level for Nestle Nigeria?

    Nestle Nigeria opens today with a year-to-date gain of 29.6 per cent, about 7.4 percentage points above the average return of 22.22 per cent at the Nigerian stock market. For a highly capitalised company with locked in volumes in the hands of core investors and long-standing buy-and-hold minority investors, this is a significant capital appreciation.

    With record personal and countrywide new high month-on-month, Nestle Nigeria is unarguably the best performing stock. At current market consideration of N577.50, is latest high, Nestle Nigeria is nearly twice the value of the closest-priced stock. All through the ups and downs, the stock has consecutively increased its share price in the past eight months.

    The 2012 performance reflected the historic trend of the food and beverages stock over the years. While the market tottered on the negative, Nestle Nigeria has consistently delivered positive full-year returns.

    As the recession shook the market in 2009, it more than doubled its share price from a low of N104.50 to a high of N247.72 and eventually closed at N239.50. The closing price for 2009 became the lowest price for 2010 as the company’s share price rose to a high of N401 and eventually closed the year at N368. In 2011, as the market stumbled with a negative year-to-date return of 19.5 per cent, Nestle Nigeria posted a positive return of 20.92 per cent, setting a new high of N470 per share.

    The company’s share price closed at N445.66. Besides setting new highs, Nestle Nigeria has also continuously set a higher low, indicating strong resilience that reassures on the share price. Lowest market value per share rose from N104.50 in 2009 to N239.50 and N367.83 in 2010 and 2011 respectively. It has maintained a down limit of N400 so far this year.

    Relating earnings to price

    Nestle Nigeria’s upwardly share price reflected the company’s strong fundamentals. With a dividend per share of N12.55 in 2009, bonus of one for five shares and cash dividend per share of N12.55 for the 2010 business year and another N12.55 for the 2011, Nestle Nigeria has consistently declared profit and made returns to shareholders over the decades. This sense of reliability reinforces the blue chip status of the stock. Latest audited report and accounts for the year ended December 31, 2011 still showed strong fundamentals, although the company appeared to be struggling with operating and interest expenses.

    Total assets rode on the back of significant increase in fixed assets to N76.94 billion compared with N60.35 billion in 2010, an increase of 27.5 per cent. Nestle Nigeria had sustained appreciable growth in sales during the year but rising costs, especially surging finance expenses, counterbalanced sales growth, leaving the company with profit growth of 1.6 per cent in 2011 as against 32.4 per cent in 2010.

    Total sales rose by 22.3 per cent from N80.11 billion to N97.96 billion. Profit before tax was almost unchanged at N18.54 billion in 2011 as against N18.24 billion in 2010. Profit after tax rose by 33.4 per cent from N12.60 billion to N16.81 billion. With these, basic earnings per share improved by 11 per cent from N19.08 in 2010 to N21.20 in 2011. Net assets per share rose by 32 per cent from N22.50 in 2010 to N29.62 in 2011.

    Dividend expectation

    But while the fundamental performance in 2011 showed a mixed-grill, Nestle Nigeria appears set for improved performance in 2012. Already, the board of the company has forecast that turnover would rise to N112.97 billion in 2012 while profit before tax and profit after tax could be N19.77 billion and N16.89 billion respectively. This implies possible earnings per share about N21.30 for 2012.

    But emerging results indicate that the company may surpass the fundamental targets for this year. Interim report for the first quarter ended March 31, 2012 showed a net profit of N6.17 billion in 2012 as against N2.57 billion in comparable period of 2011. Profit before tax had risen from N3.46 billion in first quarter 2011 to N7.35 billion in 2012. Turnover stood at N28.67 billion in 2012 as against N20.38 billion in 2011.

    By the second quarter, the food and beverages company witnessed substantial growths in sales and profitability. Turnover rose by 27 per cent to N56.68 billion by the six-month period ended June 30, 2012 as against N44.62 billion recorded in comparable period of 2011. Profit after tax jumped by 51.6 per cent to N9.85 billion in 2012 as against N6.49 billion in 2011. This indicated net earnings per share of N12.42 in first half 2012 compared with N8.18 in corresponding period of 2011.

    With these, Nestle Nigeria has made enough within the first half to cover its full-year dividend for 2011. Besides, the earnings outlook appeared strong. Given the first half performance, there is possibility that the company may surpass its modest full year profit forecast by double digit, giving the dividend-paying stock a new impetus for sustained rally.

    Besides, in a market still characterised by uncertainties and questions about corporate governance, Nestle Nigeria’s overall image of stability and consistency will continue to be major attraction. The compact nature of the outstanding shares of the company and the preponderance of buy-and-hold retail investors that see the stock as their nest eggs will also continue to mediate the share price fluctuation, making it resistant to downtrend.

    Most investors holding the free float shares don’t easily sell off. As a consistent dividend-paying stock, Nestle Nigeria provides cushion against the downturn at the secondary market. With recent huge investments in new factory and innovations, the company appears to have operational supports to drive fundamentals and by extension, market consideration.

    However, the general recovery at the stock market might embolden and turn the attention of investors to valuable low-priced stocks, with temptation to capitalise gains from stocks such as Nestle Nigeria to spread to other equities. But for investors in Nestle Nigeria, the assurance of the irreversible low is quite more certain.

  • Brokers protest slash in Local Content briefs

    Brokers protest slash in Local Content briefs

    Brokers have kicked against the reduction of firms handling local content briefs for the Nigerian National Petroleum Corporation (nnpc).

    The corporation, which engaged 34 firms for the exercise last year, cut down the figure to 14 this year, a measure operators criticised as anti-industry growth.
    President, Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB), Tunde Oguntade, said though the number fell below brokers’ expectation, they have expressed their desire for more brokers to be involved in the future.

    He noted that brokers are unaware of the reason for the reduction, adding that it would have been better if more brokers were considered in line with the Local Content Law.
    Nonetheless, the implementation of the law has begun to have impact on the economy in terms of human capacity development, especially in oil and gas, more employment opportunities and greater retention of capital that would have been spent as consultancy fees and salaries for expatriates.

    Of interest is the current development in the industry, where underwriters and insurance brokers have shown greater capacity to insure and reinsure the high net-worth property of government and its agencies, as well as those parastatals.

    A university don, Mrs.Joy Warikke-Briggs, said the development, notwithstanding, the insurance industry remained one of the greatest beneficiaries of the Local Content Act, signed into law by President Goodluck Jonathan in 2010.

    She told The Nation that through the local content law, the government is seeking improved standard of living of the citizens and higher revenue to government from company and personal income taxes. She added that the resultant economic growth therefrom, would be in form of increased production of goods and services, higher industrial capacity utilisation, direct and indirect employment generation, as well as improved commercial and trading activities.

    The NCRIB boss called on the government to encourage the participation of more brokers in NNPC insurance since the business is of high volume.

    He said: “One cannot say the reduction is healthy looking at the Local Content Act. They have the right to appoint; it is only the government that can decide if what they have done is in order. Ideally, they should have accommodated more brokers given the volume of money involved in the business.”

    He noted that to meet the 70 per cent engagement provided for by the Local Content Act, brokers who were denied opportunities in the past have strengthened their operations.

    He said only 34 of 572 brokers were appointed for the business last year, adding that though the number was low, it created opportunity for the brokers to acquire knowledge on the workings of the oil and gas business.

    “Years past, it used to be Lloyd of London that handled the account and repatriated all its gains, leaving the Nigerian economy high and dry. That is now history because the Local Content Law has effectively put paid to that, Mrs. Warikke-Brigs, said.

    Suing for the appointment of more indigenous brokers to handle the account, Oguntade argued it would boost the industry’s capacity for growth.

    He said local underwriters have a very good share of the market. “We are looking at 70 per cent as stated in the law, that means that the 70 per cent premium that used to go outside the country in the past, now hasve to be with local underwriters.

    “This would enable underwriters to improve their capacity, training, source good rates and observe their corporate social responsibilities.

  • Insurance penetration to hit 30% by year end

    Insurance penetration to hit 30% by year end

    The rate of penetration of insurance in Nigeria which stands at just six per cent of the population is expected to hit 30 per cent by the end of the year, the Director-General, Chartered Insurance Institute of Nigeria (CIIN), Adegboyega Adepegba, has said.

    Explaining why the rate of insurance acceptability is low in Nigeria, Adegboyega said one of the causes is the poverty level among the larger population.
    He said people consider insurance last in their scale of preference due to the level of their income, adding that the industry wwould take its place in the financial sector when the economy and living standard of people improved.

    “The major cause is the level of poverty in the country. There is poor economic down turn, because of this, insurance comes last in the thing most people what to do. When you take your salary, you probably think of paying your house rent, take care of your car, feeding and paying your children’s school fees. So, you probably think about insurance last.”

    As long as we still have this level of poverty, we will still have a lot of challenges for the insurance sector. But as the per capita income increases, then insurance will have its own fair share of what should come to it. The economy must improve for the industry to thrive.”

    The industry’s present penetration stands at six per cent, while its density (purchase) is N1,200, premium volume, N200 billion, and contribution to the Gross Domestic Product (GDP) is 0.7 per cent. He said operators hope to increase penetration from six to 30 per cent by the end of this year, grow the density (purchases) from N1200 to N7500, premium volume from N200billion to N1 trillion and contribution to the Gross Domestic Product (GDP) from 0.7 per cent to three per cent.
    The Commissioner for Insurance, Fola Daniel, said the National Insurance Commission (NAICOM) was poised to providing necessary frameworks that will aid the achievement of the vision, adding that the vision was predicated on compulsory insurances.

    He said the commission would ensure the plugging of leakages in the industry which deterred the growth of the sector, noting that NAICOM was collaborating with practitioners to ensure that the sector takes its place in the nation.

    “What my colleagues and I at NAICOM have done is to look at ways the industry could leverage on existing laws to plug many of the leakages in terms of insurance premium. If the implementation is as envisaged, there is no reason the premium income benchmarks of N1 trillion will not be met and surpassed. He added that the commission’s desire was to develop and build an industry with high capital and standard.

    Analysing events in the industry in the last ten years, the NAICOM chief said insurance professionals left the industry to half-baked managers and industry leaders followed the lead of quacks into all sorts of unprofessional conduct that combined to expose the industry to ridicule.

    “Rather than strive to sanitise and restore the pride of our profession, our professionals chose to take the easy path of ‘if you cannot beat them, join them’, indulging in unethical practices.

  • Ex-annuity agent sentenced

    Insurance Commissioner Dave Jones last week announced that Alvin Leroy Black, 75, of Penn Valley, was sentenced in the Nevada County Superior Court to 180 days in County Jail and five years of supervised probation, for violating Penal Code Section 487(a), Grand Theft.

    Black must also participate in theft counseling and has been ordered to pay $204,777.93 in restitution. Black pled guilty to a single felony count of grand theft in March of this year.

    According to Investigators from the California Department of Insurance (CDI) Investigations Division, between July 2001 and August 2004, Black sold his 80 year-old victim seven annuity policies with a deposit amount totaling $1,535,000 without fully disclosing the terms of the annuities and without her full understanding of what she was purchasing. Black earned $87,336 in commissions for transacting the annuities.

    The investigation revealed that in March 2003, Black formed a California non-profit corporation, in the name of the victim, without the knowledge or consent of the victim. Black had the victim sign documents to change the beneficiary and the ownership of all her annuities to the foundation without her knowledge of what she was signing.

    Black submitted the change of ownership forms and change of beneficiary forms to the insurance company also without her knowledge or consent. Black eventually cashed three of the policies for a total amount of $224,703.89, causing the victim to incur surrender charges of over $26,919.74 as well as income tax liabilities.

    Black received and deposited the money into the foundation’s bank account and used the funds for his personal gain. The victim was never given access to the foundation’s bank account.

  • NIA yet to deploy electronic cards

    The Nigerian Insurance Asso-ciation (NIA) is yet to deploy the over 500,000 electronic card readers two months after launch because of logistics.

    A source said the organisation has been sorting out some logistic challenges, adding that efforts were being made to ensure that the desired result is achieved.

    He said the association wants to ensure that the gadgets get to the various states and people they are meant for, stressing that the deployment would commence soon.
    Former NIA Chairman Olusola Ladipo-Ajayi said the project would help stem fake policies carried by motorists and help security agencies – Nigeria Police and Federal Road Safety Commission (FRSC) – ascertain genuine vehicle licensces and weed out fake insurance certificates.

    He said the data device was aligned with that of the FRSC to forestall harassment of policy holders by security officers, adding that the device will block the enormous financial leakages in motor insurance due to fake operators.

    He said: “Our data is linked to the FRSC data base so that they can verify the authenticity of insurance certificate that will be presented to them by motorists. We are deploying the electronic card readers to the security agencies to enable them know vehicles that are properly insured.

    “The most important thing is for us to get it right. It is not how soon, but how well, because every existing data must be captured, tested and be error proof. This is because we do not want any body to be denied passage by the police and other security agents when he or she has a genuine vehicle insurance cover.

    “What this means is that all policies that are still running now will be captured into the system, so that when a policy holder is accosted, he or she will not be accused of carrying a fake or counterfeit document, whereas the individual is carrying a genuine document. This we are presently doing.”

    Ladipo-Ajayi said the data would provide a mechanism for verification of insurance certificates issued or presented as evidence of insurance, an enabling environment for submission of statutory returns online and also provide access to relevant policy, underwritten and claims information.

    He noted also that the initiative will enhance transparency and accountability to stakeholders, thereby restoring confidence in the insuring public. It will create the basis for scientific management of operations in the industry and enable the tracking of transactions in the industry.

  • Couple charged with insurance fraud

    Attorney General Scott  Pruitt’s Workers’ Compensation and Insurance Fraud Unit has filed a charge against an Oklahoma City couple for allegedly conspiring to falsely obtain insurance money.

    Shake Haque, 33, and wife Nadeea Hossain, 39, were charged in Oklahoma County District Court with one count of conspiracy to commit a felony.
    According to the charge, the following events took place:

    Nov. 29, 2011 – Haque was involved in a morning car accident while driving his wife’s car. He allegedly gave the other driver an expired insurance policy number. Later that day, his wife bought a liability only policy for her car.

    Hossain contacted the other driver and allegedly asked her to say the accident happened the following day, Nov. 30.

    Dec.6, 2011 – The insurance company contacted the other driver and she told them that the accident occurred on Nov. 29 and records from the Midwest City Police Department confirmed the date of the accident.  Dec. 13, 2011 – The accident claim was denied.

    The Attorney General’s Workers’ Compensation and Insurance Fraud Unit is the only Oklahoma law enforcement agency dedicated to the investigation and prosecution of workers’ compensation fraud. The Unit also helps raise public awareness of insurance fraud in Oklahoma.

  • Unions give Air Nigeria ultimatum on staff pay

    Unions give Air Nigeria ultimatum on staff pay

    Aviation unions under the aegis of the National Association of Aircraft Pilots and Engineers (NAAPE) and the National Union of Air Transport Employees (NUATE), have issued a seven day ultimatum to the management of Air Nigeria to pay up all staff salaries, including their benefits and entitlements.

    Speaking to newsmen during a peaceful protest at the NUATE secretariat, President of NAAPE, Mr Isaac Balami David, pointed warned that if within seven days, the management of Air Nigeria fails to meet the demands of the workers, the unions would take appropriate actions against the airline.

    “We are giving the authority of Air Nigeria seven days ultimatum. If nothing happens, NAAPE will communicate to the press and tell them the next line of action that the union is going to take,” he said.

    Amongst issues Balami raised were arrears of salaries of staff not paid for four months, running from May through August 2012, and unpaid pensions, adding that the management of the airline could not just lay off its staff like that, without giving them all their entitlements before laying them off.

    “In addition to the above, Jimoh Ibrahim and Air Nigeria must immediately fulfil the following; remit to the tax office all tax deducted from staff salaries for about two years to enable the workers obtain tax certificate as required by law, remit to the staff, thrift and co-operative society all monies deducted from staff salaries with accruable interests, to enable workers access and receive their exit benefits from the society; remit to Pension Fund Administrators with accruable interest all pension deductions from staff salaries for about a year, to enable the workers access and receive their due pensions as guaranteed by law; issue a proper letter of disengagement which must contain all entitlements due to each worker, and then enclose any legal payment advice in that regard and not sack in the pages of newspapers,” the NAAPE boss stated.

    Debunking the claim of Mr. Jimoh Ibrahim that his staff were not loyal, Balami said: ” We learnt that staff in Air Nigeria were earning 50 per cent less than what other staff in other airlines are earning yet they work with their whole heart, and somebody is saying that they are not loyal, what type of loyalty does the management of Air Nigeria want? he asked. “All we are saying is that Air Nigeria should pay salaries, once you pay your salaries on time, you do the needful, your staff will be loyal,” he added.
    Also speaking during the protest, President of NUATE, Comrade Safiyanu Mohammed, said the is in support of whatever decision the union might take, if the staff were not properly taken care of and the issues at stake not resolved amicably.

    He said: ”NAAPE has given the management seven days, so you can’t expect them to pre-empt their action before the expiration of seven days. After seven days, we will now know what will happen next.”

    A staff of Air Nigeria, said the management of the airline was not been fair to them, especially after they have given all their lives working for the airline, they were been layed off on a flimzy excuse that the workers were not loyal.

    “I will like to bring one issue on ground right now, Mr. Jimoh Ibrahim has been going around telling the larger society that his staff are not loyal, I have worked with two other companies before I worked with Air, and I want to tell anybody who cares to listen that this type of workers that you see here are the most loyal people in the whole world, they are hard working, they have work ethics,” he said.

  • NLC holds summit on security, peace

    NLC holds summit on security, peace

    The President of the Nigeria Labour Congress (NLC), Mr. Abdulwahed Omar, has said the congress would hold a programme geared at proffering solution to the security challenges in parts of the country.

    Tagged, ‘Labour for Unity, Peace and Development,’ Omar, said the decision to hold the summit was informed by the deteriorating security situation in the country, despite the several measures so far taken by the government to bring peace.

    In a statement , NLC said it will organise the national peace summit and rally in Abuja .

    He said assassinations, armed robberies, bombings, communal and sectarian violence, have led to painful loss of lives, massive displacements, that are interrupting productive activities, with the attendant prospect of acute food shortages, and destruction of properties estimated at billions of naira and capital flight.

    “What is more worrisome about the insecurity in the country, is the general panic in the land that calls for the dismemberment of the country largely due to concern about government’s capacity to deal with these challenges.

    “Deeply saddening, is the growing perception of tacit or complicit support for some of these horrendous crimes by some of our elders,” Omar said.
    The parley is slated for tomorow.

  • Workers petition Presidency over oil firms’ operations

    Workers petition Presidency over oil firms’ operations

    Maritime Workers Union of Nigeria (MWUN) has petitioned the Presidency over activities of some oil and shipping companies, resulting in the loss of revenue to the nation, as well as the union.

    In the petition routed through the Minister of Transport, it named Shell Petroleun Development Company, Pacific Drilling, Noble Drilling, Trans Ocean Sedes Forex, Red Transport and Megatop Nigeria, among the culprits.

    The petition, signed by the President-General and Secretary-General, Comrades Tony Nted and Aham Ubani, called on government to call the affected companies to order failing which the union would shut down the maritime sector.

    The petition reads in part: “We have observed with pain and disbelief the open show of impunity by some seeming powerful agents, Shipping Companies and multinationals, which specialise in anchoring and operating their vessels off-shore/midstream in naked contravention of the given conditions governing off-shore/midstream operations in our territorial waters.

    “All ships/vessels are expected to berth and operate at the conventional Sea Ports, at the hard Quays. In very exceptional cases however, ships/vessels that cannot berth at the conventional ports for declared reasons, must as of law, obtain the direct approval of the Minister of Transport; pay all statutory NPA dues and stevedoring bills; must ensure the presence of Customs, Navy, relevant Security Agencies at the point of operations to ensure that the State Security is not compromised, and the Stevedoring Companies notified for supply of the appropriate labour force – the registered Dockworkers for the operations.”

    It alleged that some of these companies operate off-shore/midstream without the mandatory approval of the Minister of Transport. They have also refused to pay the statutory NPA charges and stevedoring bills, thereby giving rise to loss of employment to Dockworkers and loss of revenue to the Government.

    “It is disheartening to note that while hiding under the cover of challenging the enforcement of these approved conditions in the Law Courts against NPA management, the Companies have not relented in perpetuating these illegal acts that encourage revenue leakages, non-payment of NPA statutory Port Charges, NIMASA levies, under-declaration of tonnage, stevedoring bills and loss/denial of gainful employment to Dockworkers, among others.”

    “These companies for example, are Pacific Drilling, Noble Drilling, Trans Ocean Sedes Forex, Shell Petroleum Development Company of Nigeria, Red Transport and Megatop Nigeria and host of others. We therefore call on the Federal Government as a matter of urgency to investigate closely, the activities of these defiant Off-Shore operators and put a stop to illegal off-shore operations.

    “We as an Industrial Union, whose members – the Dockworkers daily lament the loss/denial of income ,by such dubious Off-Shore Operations, wish to alert the nation that the continued failure to restore sanity and appropriate discipline in future Off-Shore/midstream Operations will attract total withdrawal of the services of our members from all the conventional Sea Ports. We have shown enough restraint on this issue and can no longer accommodate any further breach.”