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Tag: NECA

  • NECA wants Fed Govt to exempt ITF from TSA

    NECA wants Fed Govt to exempt ITF from TSA

    The umbrella body for employers in the country, Nigeria Employers Consultative Association (NECA), has warned that the newly introduced Treasury Single Account (TSA) policy of the Federal Government would cripple the operations of self-funding and service-rendering parastatals with statutory responsibilities to deliver public goods and services.

    Specifically, among others, NECA argued that the responsibilities of Nigeria Social Insurance Trust Fund (NSITF) that manages the Employee Compensation Scheme (ECS), Industrial Training Fund (ITF), responsible for training funds reimbursements and National Health Insurance Scheme (NHIS) that are saddled with payments of capitations and other obligations to health management organisations and care providers had been highly curtailed by TSA.

    Director-General of NECA, Mr. Segun Oshinowo, at a gathering of stakeholders, called for the exemption of NSITF, ITF, NHIS and similar bodies as done to Bank of Industry (BoI), Bank of Agriculture (BoA), Federal Mortgage Bank of Nigeria (FMBN) to enable them deliver effective services to the public.

    He said: “The Central Bank of Nigeria (CBN) issued a circular directing all deposit money banks to implement the e-collection platform deployed by the Federal Government to support the collection and remittance of all government revenue to a consolidated account domiciled with CBN.

    “This marked the beginning of the full implementation of TSA system in Nigeria. Nigeria NECA as the voice of business commends the initiative as it provides the mechanism for proper monitoring of government receipts and expenditure. We do not doubt that the TSA will help to block most, if not all, leakages that have been the bane of the growth of the economy.

    “The only snag in the new dispensation is that the activities of self-funding and service-rendering parastatals, with statutory responsibilities to deliver public goods and services, have been highly curtailed if not paralysed.”

  • Nigeria’s unemployment rate is time bomb, says NECA

    Nigeria’s unemployment rate is time bomb, says NECA

    The Director-General, Nigeria Employers’ Consultative Association (NECA), Segun Oshinowo, has warned that if the high rate of unemployment in the country is not checked, it is a time bomb that would explode any time.

    He lamented that the rising unemployment trend in the country portends grave danger, adding that was akin to pointing a gun at head of the country which the trigger may be pulled at any time.

    Oshinowo said government’s projection on the economy was yet to synchronise with the reality, even as he faulted figures released by the Nigeria Bureau of Statistics (NBS).

    He said: “If we are talking about good governance, it is not figures that will showcase such, but quality of life of the people. We should be looking at things such as accessibility to health and additional jobs that had been created. To the best of my knowledge from interacting with Nigerians and observing happenings around, one cannot really say that there has been any significant improvement in this economy.”

    The NBS recently published new rates of unemployment for Nigeria’s economy from 2010 – 2014 based on a new methodology, which suggested that the economy is almost at full–employment, as the rate for last quarter of last year stood at 6.4 per cent. The rate as at  first quarter of this year was 7.5 per cent. One is not so much concerned about the methodology used because they are based on certain assumptions, so if any of the assumptions is relaxed, the calculated rate may be different.

    Oshinowo noted that the Gross Domestic Product (GDP) growth rate might be saying something to the contrary.

    He asked rhetorically: “Government might say that they have posted 6.5 or 7.0 per cent but when you really look at the facts on the street, how many jobs have we created? To what extent has the quality of life of Nigerians been significantly improved in the last six months? How many businesses have come on stream?”

    He added: “Currently, we have started a survey on the health of our member companies, especially those in the North, and from the discussions we’ve had with them, we’ve been told that sales had gone down by 25 per cent. And if the trend should continue by the end of the year, quite a number of them will have to downsize. So, the outlook is grim, I must say.”

    He wondered why Nigeria continues to experience unemployment growth despite its rating as one of the fastest growing economies in the world.

  • NECA ask CPC to engage in dialogue

    The Nigeria Employers’ Consultative Association (NECA) has called on the Consumers Protection Council (CPC) to engage true social dialogue before taking any action against companies and other stakeholders.

    NECA said the agency’s action could stifle the growth of existing businesses and scare potential investors.

    In a statement by its Director-General, Mr Segun Oshinowo,  the association said  the CPC has been acting ultra vires and in spite of ongoing court action against the CPC, the body has continued to usurp the responsibilities of other agencies with the primary responsibilities to protect consumers in their sector”.

    He equally deplored CPC’s sensationalism, whereby the body, in the name of dialogue, always parade enterprises and engage them in the full glare of the media.

    “We will not accept CPC’s gestapo approach at territory grappling and relevance seeking by performing roles already being carried out by other agencies of government such as National Agency for Food and Drug Administration and Control (NAFDAC), Nigeria Communications Commission (NCC), Standards Organisation of Nigeria (SON), Nigerian Civil Aviation Authority (NCAA) and Nigerian Electricity Regulatory Commission (NERC),” he said.

    He said the latest  foray of the CPC into the  electricity sector, an action contrary to the provisions of the Electric Power Reform Act, 2005, which vested the regulation of operators in the sector on NERC. The commission, according to the Act, has the primary responsibility regulating and protecting the interest of all stakeholders, including consumers in that sector.

    “Organised businesses are opposed to duplication of regulatory roles and as such, we do not subscribe to the CPC performing roles already being carried out by other Agencies of Government

    “It is on record that the CPC has blatantly rebuffed every attempt by the Organised Private Sector through its representative bodies like NECA, to engage it in social dialogue in order to explore ways of ensuring that it carries out its mandate in a civil and decent manner,” Oshinowo said.

    In a further reaction to the development, the Director-General urged the government to call the agency to order as it has become an embarrassment to the “New Nigeria”, the administration is labouring to build, which forbids impunity and arrogance of office holder, as currently displayed unabashedly by the leadership of CPC.”

    NECA reiterated its commitment to social dialogue with CPC that will ensure the meaningful and productive realisation of its purpose as outlined in the law setting it up.

  • NECA advises in-coming govt on dialogue with OPS

    NECA advises in-coming govt on dialogue with OPS

    The Nigeria Employers’ Consultative Association (NECA) has called on the President-elect, Mohammadu Buhari to carry the Organised Private Sector (OPS) along, through dialogue and consultation in the formulation and execution of key economic policies.

    NECA’s President, Mr. Larry Ettah, who spoke in Lagos,  explained that though the task ahead of the President-elect were onerous, but they are not insurmountable.

    Ettah said there is the urgent need for the General Buhari-led administration to address the fundamental of the high cost of doing business and low productivity, which could be ascribed to macroeconomic factors, institutional challenges and structural issues to restore investors’ confidence for businesses to thrive.

    He said Buhari must initiate policies that would in the short run, ensure security of lives and property as well as create an enabling environment that would create job opportunities for youths in the country.

    “Security, the economy and employment must be accorded priority in the agenda of the new government,” Ettah said.

     

  • NECA urges NLC to redeem image

    The re-scheduled Nigeria Labour Congress (NLC) election should be about redeeming the image of the organised labour movement, Director-General, Nigeria Employers Consultative Association (NECA), Mr. Segun Oshinowo has said.

    “This time around they just have to get it right. What happened during the delegates conference recently in Abuja has really cast a lot of aspersion on the integrity of the organised labour,” he said.

    While noting that it was the first time organised labour would act in such a manner at any of their gatherings, Mr. Oshinowo described the manner the NLC election ended as shameful, embarrassing, ridiculous and a dent on the image of the movement.

    He said: “What happened at the election eroded their moral credentials to condemn or commend what happens in the larger society, saying it was a minus.”

    The NECA boss, however, commended the members of the trade movement for rising in total condemnation of the act and their readiness to correct the anomaly. “I am happy that our colleagues on the other side have not spared themselves in condemning the shameful act, bearing in mind the position of the NLC in the society,” he said.

    Oshinowo expressed displeasure over the ugly incidenct, which he said happened during the nation’s general election period. Besides, the Congress had, at the opening ceremony of the delegates conference, promised to use its election to serve as model for the nation’s politicians.

    It would be recalled that the NLC 11th delegate conference election held at the International Conference Centre, Abuja, ended abruptly when pandemonium broke out due to some irregularities observed on the ballot papers.

  • NECA calls for deregulation of oil and gas

    NECA calls for deregulation of oil and gas

    • Employers praise reduction of fuel price

    The Nigeria Employers’ Consultative Association (NECA) has described government’s reduction of the pump price of petrol as a right action within a wrong policy framework, calling for the proper deregulation of the sector.

    In a press statement signed by the Director General, NECA, Mr. Segun Oshinowo, NECA commended government’s decision to reduce the price of petroleum from N97 to N87, adding that this demonstrated that government is sensitive to the welfare of Nigerians.

    NECA, however, said this action by government is begging the more fundamental issue of appropriate policy framework that will promote investment in the downstream sector of the oil & gas industry and put a stop to the embarrassing and shameful practice of importation of Premium Motor Spirit (PMS), also known as petrol.

    “Our expectation therefore, is that government would seize the opportunity of the current decline in the price of crude oil to commence implementation of the policy on deregulation of the downstream sector of the oil & gas industry. This is a unique timing the government cannot afford to miss as full implementation of deregulation, which in time past had led to price increase and reaction by the labour movement in form of industrial action, does not have any negative effect on the masses.

    “We are indeed, surprised that government’s announcement was limited to just the reduction in the price of fuel (PMS) as one would have expected a far more holistic announcement of a new policy thrust of deregulation of the downstream sector and privatisation of the four refineries, which have now become sink-holes.

    “We do appreciate the fact that election is around the corner and government is being unusually cautious on the possible backlash which announcement of deregulation of the downstream sector of the oil & gas industry could have on its electoral fortunes. We, however, do not share the sentiment, given the fact that this is one moment when such a policy announcement would not have any damaging impact on the populace,” Oshinowo said.

    According to Oshinowo, it is a common thing for government to weigh economic imperatives against political exigencies at moments of political engagement and political process as the country is currently experiencing. He said government is more likely to accord priority to political exigencies while relegating economic imperatives to the background particularly if the fall-out of the economic imperatives will undermine public perception of the government.

    “The issue, however, is that the government is not faced with that choice under the current circumstance as the economy stands to gain from the deregulation policy. We, therefore, call on the government to do the needful by coming out boldly and courageously to inform the Nigerian populace that it has deregulated the downstream of the oil & gas sector,’’ he said.

  • ITF, NECA partner firms on job creation

    ITF, NECA partner firms on job creation

    The Nigeria Employers’ Consultative Association (NECA) and the Industrial Training Fund (ITF) are partnering with some companies on capacity building and training.

    NECA and ITF have met with Kamjay Farms Limited, a poultry/aquaculture outfit, on ways to train more youths to embrace farming.

    Speaking during tour of the company,  ITF Director-General Dr. Juliet Chukkas-Onaeko, said more people would be trained when NECA and IFFcollaborate with more companies, the agricultural sector, she noted, is larger than other sectors in terms of employment and job creation. She also stressed the need for government’s support for their activities.

    The company trains 25 to 30 youth per batch. However, Dr. Onaeko said the number would be increased to 100 next year to accommodate those who wish to key into the programme.

    The Managing Director/Chief Executive Officer of Kamjay Farms Limited, Mr Bode Oyedele,  said real growth cannot be achieved without the agricultural sector.

    “If we are talking of real growth, we cannot leave out agriculture because without it, there is no life, there is no economy,” he said.

    He stressed the need for support from the government, especially for the trained youths to stand on their feet.

    With the collaboration of NECA and ITF, Oyedele said, Kamjay had been able to train more youths on various aspects of agriculture. He disclosed that the trainees were more interested in the aspect of fingerlings rearing because it is more lucrative than others and requires less capital to set up.

    “Because Lagos is an aquatic state, we initially concentrated on aquaculture, but our students and the trainees showed much interest in fingerlings so we have to do more of that,” he explained, adding that with few pieces of fingerlings (two males and three females), one could produce about 25,000 fingerlings within a short period of time and realise about N750,000. A fingerling is sold for N30.

    He added that many people were keying into fingerling production because of its higher demand. Oyedele, who said he has keyed into the Agricultural Transformation Agenda (ATA) of the administration, explained that his company is the only firm approved to supply fingerlings to farmers in Lagos State under the GES scheme.

    However, with the present 500,000 production capacity, the company is yet to meet up with the demand for the fingerlings in the state. Oyedele, however, explained that the support of NECA and ITF in the procurement of feed mills has helped the company to increase its production and produce feeds for its own farm and other farmers in Lagos State.

    He called on the Federal Government to subsidise agricultural products for the growth of the real sector, saying that unlike any other goods, price of agricultural products could not be easily controlled by the farmers.

    For example, he said, while the price of feed mills keeps soaring, the price of eggs has not changed in the market.

    The aim of NECA/ITF collaboration is to get youths out of unemployment by giving them training on poultry, aquaculture and other aspects of agriculture to be job creators.

    NECA’s Director-General, Mr. Segun Oshinowo, said the purpose of the synergy is to reduce the rate of unemployment among youths by training them on how they can create jobs even with little capital at their disposal.

    “By being here, we hope to create jobs by getting the youths trained so that they can stand on their own,” he said, noting that there are huge potentials in the agricultural sector especially, in the area of aquaculture.

    The NECA boss appealed to the government to support the initiatives with funds as both organisations lack financial capacity to carry out their assignments.

  • NECA chief seeks labour reforms

    NECA chief seeks labour reforms

    THE Nigeria Employers’ Consultative Association (NECA) has advocated the reform of industrial and labour relations in workplaces.

    Its Director-General, Olusegun Oshinowo, told The Nation that this was necessary to strengthen labour and industrial harmony in line with international best standards.

    “Our call for the reform of industrial and labour relations practices in workplaces in Nigeria is necessary in order to strengthen labour and industrial harmony in the country in line with international best standards,” he said.

    He decried delays in the remittance of check-off dues by employers, saying the development was not good enough for the workers.

    He pointed out that there were no automatic check-off dues before 1978.

    Oshinowo also lamented  unionism in the oil and gas sector, saying the unions act outside the law to agitate for their members’demands.

    He berated the Federal Government for failing to deal with the fall in international price of crude oil.

    He said the government ought to roll out plans as well as explain the implications of the fall  to Nigerians and how the nation would cope with the development.

    The Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, said the Federal Government had put in place contingency plans to deal with the problem.

    The NECA chief warned that the country was prone to serious economic crisis if there were no plans to arrest the situation, advising Nigerians to cut on their expenses.

    He argued that the fall in price of crude oil should have been used by the Federal Government to phase out fuel subsidies to petroleum marketers, saying the regime was no longer vital for the economy.

    He advised the Federal Government to jettison what he called sloppy attitude to privatisation and embrace the policy to strengthen the  economy.

    Oshinowo noted that nothing stops the Federal Government from privatising the  ailing refineries having recorded success in the privatisation of the power and telecoms sectors.

    He advocated the need for the government to privatise the airports for efficient services.

    On regulation in the country, he said some of the Federal Government’s agencies are clogs in the wheel of progress because of ill-defined roles.

  • Fed Govt insincere about job creation, says NECA

    Fed Govt insincere about job creation, says NECA

    • ‘3m jobs yearly target ruse’

    The Nigeria Employers’ Consultative Association (NECA) has said if government is sincere in its job creation initiatives, all its policies should have employment content. The group also described the three million yearly job creation target of the Federal Government as an illusion.

    Its Director General, Mr Segun Oshinowo, said the question Nigerians should begin to ask is the employment content in the government’s policies.

    He praised  the local content policy in the oil and gas sector which according to him, focused more on job creation.

    He said: “In any policy that the government is introducing or has introduced, Nigerians should begin to ask what the employment content is. The local content policy is a good policy and I think government should extend it to other sectors.”

    Oshinowo decried the exclusion of the real sector from the composition of the Presidential Jobs Board inaugurated by President Goodluck Jonathan.

    He said the real private sector which represents the grassroots enterprises and entrepreneurs are excluded in the composition, adding that the three million expected job creation is not visible.

    He said: “This is a welcome development that would aid in addressing the time bomb of high unemployment among our youths, currently put at 80 per cent by the CBN (Central Bank of Nigeria) in June, 2014.

    “We hope that this initiative will not go the way of others, whose outcomes were never known to the public or implemented for the benefits of the country. Jobs are important to the reduction of poverty, enhancement of security and sustainable economic growth.

    “We, however, wish to note that the composition of the board, unfortunately, does not include the real sector in Nigeria. Often times, government equates successful entrepreneurs to the face and representation of the private sector.

    “Government is mistaking successful entrepreneurs in the country for the real private sector. And this, perhaps, is wrong.

    “The board is saddled with the creation of three million jobs in a year. This is not visible.”

    Oshinowo called for the implementation of the Pension Reform Act 2014.

    He said the implementation of the reformed law would go a long way in promoting coverage and compliance with the new contributory pension rate by employees in the country.

    He said the National Pension Commission (PENCOM) has demonstrated how regulatory institutions could engage stakeholders in the promotion of socio-economic development of the country.

  • NECA gets concession on consumption tax

    NECA gets concession on consumption tax

    The Nigeria Employers’ Consultative Association (NECA) has secured concession from the Lagos State government on uncollected occupancy and consumption taxes/rates for companies in the hospitality business including restaurants and fast food businesses.

    Its Director General, Mr. Olusegun  Oshinowo the waiver of taxes not collected by them at the inception of the Hotel Occupancy and Restaurant Consumption Law 2009 will now in the spirit of fairness  be made for  the account of those who did not collect taxes, but made payments to government in fulfilment of the law.

    He said: “It is therefore a big relief, and a thing of joy to all and sundry when the Lagos State Governor, Mr. Babatunde Raji Fashola,  announced the resolutions at the 4th edition of the Lagos Corporate Assembly. The outcome of this unrelenting peaceful follow up by NECA is an eloquent testimony of good governance that has been the hallmark of the government of Mr. Fashola, which the private sector very much appreciate.”

    According to Oshinowo, the association has already communicated the relief to hoteliers that are its members.

    He said: “NECA is a platform for private sector employers to interact with the government, labour communities and other relevant institutions in and outside Nigeria for the purpose of promoting harmonious business environment that engenders productivity and prosperity for the country.”

    Following the enactment of the Hotel Occupancy and Restaurant Consumption Law 2009, the Hotels and Personal Services Employers’ Association (HOPESEA), an affiliate of NECA, had filed a case on behalf of its members at the Federal High Court to seek clarifications on the appropriateness of the tax.

    While the legal battle subsists, the hoteliers had refused to comply with the law. The ruling of the Court in the case Attorney General of the Federation vs. Attorney General of Lagos State, the Lagos State Board of Internal Revenue Service had come after the hoteliers to collect all outstanding payment arising from the law, a situation that had led to a disagreement between the parties, which eventually led to the intervention of NECA.