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Tag: NECA

  • NECA decries agencies’ attitude over tax

    NECA decries agencies’ attitude over tax

    The Nigerian Employers Consultative Association (NECA) has decried the  overbearing attitude of some revenue generating government agencies. This, the association said, has negative effects on their performance.

    Speaking on the forthcoming 60th anniversary of the Association, NECCA’s Director- General, Olusegun Oshinowo explained that there was every reason for the employers’ body to celebrate the anniversary.

    He argued that regulatory agencies’activities were threatening the survival of businesses despite employers’ efforts to function in a harsh operating environment.

    “Businesses are confronted by regulatory issues, chief among is multiple taxations. The various demands from the agencies are expected to be met by one company without the agencies being concerned as to the cash flow of that company. The effects of the challenges faced by the companies or the fact that the demands are from different agencies of government on companies are the redundancy exercise experienced in the country and closing down of businesses, among others,”he said.

    He mentioned lack of access to foreign exchange by the real sector, lack of raw materials for manufacturing companies, volatile exchange rates, high interest rates and the fall in crude oil price as some factors adversely affecting employers across the country.

    According to Oshinowo, NECA was in consultation with the Lagos Inland Revenue Service (LIRS) against restraining any of its member companies on tax issues without first consulting with it, adding that NECA was equally institutionalising the same understanding with other state boards of internal revenue services.

    While reiterating the employers’ body support for a new minimum wage, he explain that such negotiations must not be done without considerating the survival of businesses.

    His words: “It is within the rights of labour and anybody or institution to clamour for increment in the national minimum wage. However, certain factors must be taken into consideration before arriving at a new national minimum wage for the country.

  • May Day: Labour,NECA disagree on minimum wage review

    May Day: Labour,NECA disagree on minimum wage review

    As workers celebrate yet another May Day, labour and the private sector are not on the same page on the calls for a review of the minimum wage from N18,000 to N56,000, TOBA AGBOOLA reports 

    Massive depreciation of workers’ purchasing power. Job losses. Unpaid salaries. And general high cost of living. These are issues on the top burner as Nigeria joins the rest of the world to mark the May Day. For the Nigerian Labour Congress (NLC), there must be an upward review of the N18,000 minimum wage. The organisation believes increasing the wage to N56,000 will cushion the effects of a struggling economy.

    The Technical Committee for Palliatives and Minimum Wage submitted its report a few days ago. The tripartite committee has representatives of the Federal Government, the state governments, labour and the Nigerian Employers Consultative Association (NECA).

    Minister of Labour and Employment Chris Ngige said the Federal Government was working towards a new minimum wage for workers to enhance workers’ welfare and comply with the Minimum Wage Act.

    NLC President Ayuba Wabba Wabba told The Nation that in pushing for N56, 000 minimum wage, labour looked at all the issues.

    He said: ‘’Our opinion is also that workers have been pushed to the wall; so, it’s time for the minimum wage to be reviewed both in law and practice because the cycle is due and inflation is biting very hard, high cost of goods and services is affecting workers seriously.’’

    “What is the value of N18, 000, when it was signed, looking at inflation, purchasing power and ability to pay?”

    “We have been reasonable in making such demand and we hope that other social partners will look at it from the perspective of us being very committed and nationalistic in putting up those demands.”

    Wabba said while those dismissing N56, 000 minimum wage as unreasonable were entitled to their opinions, the reality was that workers could not feed themselves because of the high cost of goods and services.

    He said: “The essence of the new minimum wage is to make sure that the poor or the poorest of the worker is protected against exploitation; that the minimum is within which no employer of labour can go below. Many workers are being exploited. Many workers are being paid below N10, 000 and those are the issues we want to address.

    “Everybody has the right to his or her opinion, but the opinion of the workers is that a review of the minimum wage is legitimate both by law and practice. Five years cycle is legitimate. Many workers cannot send their children to school, many cannot pay their rent and many cannot even go to work regularly.”

    Wabba added that an upward review was imperative in view of the fight against corruption.

    He warned that workers should not be treated as slaves, as companies are still making profit.

    He said it is necessary for the Technical Committee for Palliatives and Minimum Wage to negotiate  a comprehensive minimum wage to avoid hitches.

    According to him, despite the opposition by NECA, NLC is sure that stakeholders would all support a new wage for workers who had all along been treated as slaves.

    He said: “We need to be very forthcoming in doing what is right. In other quarters, if you listen very carefully, they are talking about ability to pay. I thought what labour did was to be very calculative. Not only that, to look at the feasibility, because it doesn’t make sense that at the end of the day we will have difficulties.

    ‘’So, we have looked at the totality of the issues, including the challenges we are going through at the moment and we thought that what we have done is reasonable because what we have done is to look at what is the value of N18, 000 when it was signed looking at the inflation, looking at the purchasing power and looking at the ability to pay.

    “I think we have been reasonable in making such demand and we hope also that other social partners will look at it from the perspective of us being very nationalistic in putting up those demands. I still want you to understand that workers presently cannot feed themselves because of the high cost of goods and services.

    ‘’As I said everybody has the right to his or her opinion, but the opinion of the workers is that it is legitimate by law and practice.

    “Many workers cannot send their children to school, many cannot pay their rent, and many cannot even go to work regularly. Side by side with fighting corruption, if you don’t pay me to meet up with my bills we can’t fight corruption.”

    The national leadership of Radio, Television, Theatre and Arts Workers Union of Nigeria (RATTAWU) also expressed its commitment to actualise the review for all workers.

    RATTAWU National President  Kabir Garba believes the clamour for the increase is as a result of the purchasing power parity of the naira against the dollar.

    According to him, the new minimum wage will serve as a benchmark for the union to ask for the enhanced Media Salary Scheme.

    The Trade Union Congress of Nigeria (TUC) condemned the call for the removal of the national minimum wage from the exclusive list to the concurrent list by the House of Representatives.

    TUC, in a press statement by its President, Bobboi Bala Kaigama, described the bill as a calculated attempt to alter the constitution from the back door.

    “Trade Union Congress of Nigeria has strongly condemned the call for the removal of the minimum wage from the exclusive list to the concurrent list by the House of Representatives, in a bill being sponsored by one of its members.

    “Congress sees this in a bad light and an attempt to alter the constitution of the Federal Republic of Nigeria from the back door. For the umpteenth time, it needs to be emphasized that labour rather than politicians have held this country together even from colonial days,” Kaigama said.

    The congress warned that any attempt to openly or surreptitiously undermine workers or the labour movement would be resisted with all arsenals in their control.

    As for the United Labour Congress (ULC), it is N96,000 or nothing. The Northern Coordinator of ULC, John Gimbason reiterated the union’s demand for N96,000 minimum wage for workers in the country.

    Gimbason said the proposal was realistic considering the current inflation in the nation’s economy and in view of workers’ contributions to nation’s building.

    He said the new Labour Centre had opened negotiations with the Federal Government on the proposed N96, 000 minimum wage, assuring members that the proposal would soon yield fruits.

    According to him, while workers are over burdened with lots of responsibilities, they receive stipends as monthly salaries, even as some others do not receive their wages for months.

    He appealed to the 25 unions under the ULC to give their maximum cooperation to ensure that workers in both public and private sectors were treated well.

    The Lagos State Chairman of the ULC, Ephriam James, in his inaugural speech, said the council would ensure that workers in the state were liberated to earn salaries they deserve.

    He said the Union would engage the state government and other employers of labour in dialogue to ensure they arrived at agreements to improve welfare of workers.

    James assured that whatever decision taken at the national level would be replicated in the state, especially with regard to wages.

    He called for support from members and 25 affiliated unions that formed the ULC not to compromise on the issue of minimum Wage.

    Some of the affiliated members of ULC included Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), National Union of Electricity Employees (NUEE), Nigeria Union of Mine Workers, National Union of Banks, Insurance and Financial Employees (NUBIFIE), Nigeria Union of Rail Workers (NUR), National Union of Lottery Agents and Employees, (NULAE), Association of Nigeria Aviation, Professionals (ANAP) and National Association Aircraft Pilots and Engineers (NAAPE).

    The Chairman, Senate Committee on Poverty Alleviation and Social Welfare, Ali Wakili, urged the Federal Government to increase minimum wage to enable workers cope with prevailing economic situation in the country.

    He said that while minimum wage had remained at N18, 000, prices of goods and services had continued to rise. According to him, the development has made life unbearable for many Nigerians, particularly workers.

    Although the lawmaker commended President Muhammadu Buhari’s administration’s effort at repositioning the economy, he said the government had not fared well in workers’ welfare.

    He, therefore, called on the government to make tackling challenges facing workers a priority. He added that the government should endeavor to create an enabling environment for the workers to feel the impact of any increment in wages.

    “We need to address underlining issues to make the increase felt by the workers. Without an enabling environment, the increment will be an exercise in futility because they will not feel it. Prices of goods in the market are very high; healthcare facilities are not available and where they are available, workers pay through their noses.

    “Once we are able to address these things, the wage increase will be meaningful to everybody. We can do the two side-by-side; while we are addressing the wage issue, there should also be an enabling environment,’’ he said.

    President, National Union of Chemical Footwear, Rubber, Leather and Non-Methallic Products Employees (NUCFRLMPE), Goke Olatunji, said workers were finding it hard to survive, saying Buhari should make the payment of new minimum wage a priority.

    According to Olatunji, government should implement the wage without allowing it to cause inflation in order for it not to lose its relevance.

    “The present N18, 000 minimum wage is not able to buy anything from the market. We want the government to increase it but it should not lead to inflation.

    “Federal Government should ensure that the states and private sector should be able to implement the policy when an agreement is being reached,” the union president said.

    He said the workers have borne a lot of pain because of the economic recession and needed to be compensated.

    Olatunji said business activities during recession made the economy unpleasant for workers and employers.

    “Before, companies such as Unilever Plc will give workers products, provide transportation and send at least 100 people to the stadium for the celebration of May Day.

    “But now, the company will give money to hire a bus and send 25 to 50 workers to the rally; that is the reason for celebrating workers day this year in a low key,” Olatunji said.

    He said if the economy does not improve, workers welfare will be retarded and urged the government to formulate policies that will bring relief to workers and ensure that it is well-implemented.

    However, against the backdrop of the economic hardship in the country, the Nigeria Employers Consultative Association (NECA) has urged the  Nigerian workers to wait till 2018 before pushing for the review of the Minimum Wage.

    Speaking with The Nation, NECA President Larry Ettah said the state of the economy cannot support any increase in wages.

    He notes that though it is quite clear that there is need to increase the minimum wage, but he says the timing is wrong.

    “Given the depreciation in the value of the Naira as well as inflation currently at 18.6 per cent, a strong case can be made for raising Nigeria’s minimum wage. Not an issue of whether, but when?” he said.

    He says most state governments find it difficult to pay the N18,000 minimum wage while several private companies have closed down in the last one year.

    He said: “Given that such restructuring may not be expedient in this period of recession and rising unemployment, our recommendation is that a review of the minimum wage should be deferred until the economy has resumed strong growth and public sector finances have improved.”

    For the workers, however, there is no retreat, no surrender. Until they get their dues, they say the struggle continues.

  • NECA cautions on minimum wage review

    NECA cautions on minimum wage review

    Nigeria Employers’ Consultative Association (NECA) has urged stakeholders in the socio-labour community and players in the Nigerian Industrial Relations’ System to be circumspect in their pursuit of increased minimum wage.

    Its Director-General, Mr. Olusegun Oshinowo, said  private operators may not be able to increase wages now.

    According to him, economic depression has affected employers and their businesses have nose- dived, causing some to reduce  workers or close shop.

    He said: “There was indeed an understanding that the national minimum wage would be due for discussion after five years. In effect, the 2011 agreement, ordinarily, should be open for discussion in 2016. The clamour for discussions by the NLC and TUC is therefore legitimate.

    “There is a time-tested and enshrined procedure for the discussion of the national minimum wage, which entails the setting up of a National Minimum Wage Committee comprising representatives of the Federal Government, led by the Office of the Secretary to the Government of the Federation, state governments, usually represented by three state governors, employers in the private sector under the aegis of NECA and organised labour as represented by NLC and TUC”.

    Oshinowo said the principle of reasonableness and superior arguments has always carried the day during minimum wage dialogue, and that conclusions at the platform would not necessarily be for or against increase. He said it would be to examine the need for or against and justifications for whatever positions are canvassed.

    He said: “the issue of procedure should be separated from the substance or subject. Hence, the imperative to respect procedure should take precedence over substance. It is the responsibility of the committee to sort out the issue of desirability of review or sustenance of status quo in the event that timing for upward review is inappropriate.”

    On the fear in some quarters that opening discussions on the national minimum wage will automatically translate into an unsustainable wage increase, he debunked such notion, noting that “the beauty of collective bargaining is the opportunity to come to the table with constructive positions and submissions. The principle of reasonableness and superior arguments has always carried the day. Conclusions at the platform would not necessarily be for or against increase. It would be to examine the need for or against and justifications for whatever positions are canvassed”.

    In response to the ability of employers for a new wage level, against the backdrop of the economic recession and its attendant devastating effects on organised businesses, Oshinowo stated that “the private sector cannot afford a pay increase at this point in time. This is the position the employers will canvass at the National Minimum Wage Committee”.

    He added: “The priority now should be for all stakeholders to join hands with government to deliver on inclusive growth that will ensure job security and job creation”.

  • NECA seeks full implementation of economic growth plan

    NECA seeks full implementation of economic growth plan

    Nigeria Employers Consultative Association (NECA) has urged the Federal Government to ensure full implementation of the Economic Recovery and Growth Plan (ERGP).

    NECA’s President,  Larry Ettah,  said ERGP will provide some assurance to domestic and foreign stakeholders on the policy direction of the Federal Government for the economy, adding that the policy will pull the economy out of recession.

    He said: “We appreciate the fact that the ERGP was produced through a process that involved consultations with the private sector and hope such consultative posture will be sustained.

    “We share in the broad principles behind the plan – tackling constraints to growth, particularly fuel, power, unfriendly regulations, and foreign currency; leveraging the power of the private sector, promoting national cohesion and social inclusion and allowing markets to work.

    “We also support some specific initiatives and targets stated in the document, including the desire to increase oil production to 2.5million barrels per day by 2020; privatisation of specific enterprises and assets; reducing petrol importation by 60per cent; building a globally competitive economy; and improving infrastructure and the overall business environment.”

    Ettah urged government to ensure a focused and effective implementation of all the actions and initiatives contained in the ERGP so that the benefits may quickly accrue to the economy, the businesses community and the nation as a whole.

    “While we note positively that government has now formulated an ERGP in consultation with all stakeholders and with assistance from McKinsey, this step is perhaps two years late and should be implemented forthwith. We expect ERGP implementation to be based on a strong agenda to diversify exports and government revenue sources; promotion of private capital and investment; deregulation of downstream petroleum; as well as an effective flexible exchange rate system.”

    He said there have been some positives happenings in the economy, adding that oil prices have risen to an average of $55 per barrel which allows the Central Bank of Nigeria (CBN) to accumulate increased foreign reserves.

    According to him, the nation has also had a successful $1billion Eurobond offer which may signpost modest improvement in foreign investor confidence in the economy.

    “We however have concerns about the relatively high cost of the Eurobond offer and the rising debt service obligations of the country compared to our revenue profile,” he said.

  • NECA hails Osinbajo for not signing Lottery Bill

    NECA hails Osinbajo for not signing Lottery Bill

    Nigeria Employers Consultative Association, (NECA) has praised  Acting President Prof. Yemi Osinbajo for not assenting to the National Lottery (Amendment), Bill 2016, passed by the National Assembly.

    In 2012, NECA sued the National Lottery Regulatory Commission for some infractions.

    NECA’s Director-General, Mr. Olusegun Oshinowo, said Osinbajo’s refusal to sign the bill was justified, adding that it was worrisome that the Nigeria Lottery Regulatory Commission (NLRC), resorted to some tactics by sponsoring amendments to the Act when the issue is in court.

    He said: “There is indeed a pending case at the Federal Court of Appeal on this subject matter. The rejected Bill was an attempt by some concerned parties to ambush the course of justice through amendments of the extant Act, an action that flies in the face of fair play and equity.

    ”The National Lottery Regulatory Commission (NLRC), is aware of this development and all parties, as law abiding citizens, were expected to await the pronouncement of the court. Surprisingly, NLRC resorted to back-hand tactics of sponsoring amendments to the Act before the determination of the suit.

    “The Acting President, through his rejection of the National Lottery Bill, has displayed government’s belief in fairness and justice, and has affirmed unequivocally his belief in enterprise rights and those of ordinary Nigerians. These are hallmarks of good governance.”

    Oshinowo said Osinbajo’s action will shore up investor confidence.

     

  • NECA cautions FIRS against Stamp Duty Act

    NECA cautions FIRS against Stamp Duty Act

    The Nigeria Employers’ Consultative Association (NECA) has advised the Federal Inland Revenue Service (FIRS) against its planned enforcement of Stamp Duty Act.
    The caution comes against the backdrop of unlawful increase in stamp duty collectible from 2kobo to N50, contrary to the FIRS Establishment Act. But experts said the increase might be as a result of naira devaluation and high exchange rate.
    The Federal Court of Appeal in the matter between Kasmal International Services Limited and Access Bank and 23 others, ordered banks to stop the illegal charging of N50 per transaction in lieu of stamp duties.
    Despite calls by NECA and other well-meaning Nigerians, the Central Bank of Nigeria (CBN) is yet to direct banks to obey the judgment.
    Speaking in Lagos, NECA Director-General, Olusegun Oshinowo, said; “The outright disobedience of court order by the CBN is not good for the country, especially as it sends a wrong signal to foreign investors and sets back the efforts of government at promoting the rule of law. The CBN is portraying itself to be bigger than the law of the land.”
    He however said the Organised Private Sector (OPS) welcomed the take-over of collection of stamp duty by the FIRS which is in line with extant law.

  • NECA to CBN: obey N50 stamp duty ruling

    NECA to CBN: obey N50 stamp duty ruling

    The Nigeria Employers Consultative Association (NECA) has urged the Central Bank of Nigeria (CBN) to comply with the Court of Appeal’s ruling stopping the deduction of N50 stamp from deposits of N1000 and above.

    In January, last year, CBN directed banks to deduct duty from deposit of N1,000 and above into current account. Last April 21, the appeal court ordered that the deductions be stopped, because they were illegal.

    NECA Director-General Mr. Segun Oshinowo accused CBN of not complying with the ruling. He said the deduction affected corporate bodies, among others.

    “NECA and organised businesses had opposed attempts by the Nigeria Postal Service (NIPOST) to compel companies to affix N50 postal stamp on all receipts, invoices and documents evidencing transaction of N1,000 and above,” he said.

    Oshinowo said it was worrisome that CBN has refused to comply with the ruling on the matter between Kasmal International Services Ltd. and Access Ban and 23 others.

    He said: “NECA has expressed concern over the failure of the CBN to reverse its earlier directives to all Deposit Money Banks (DMB) to halt the charging of N50 per eligible transaction in accordance with the assumed provisions of the Stamp Duties Act and Federal Government Financial Regulations (2009). The CBN is, hereby, advised to do the needful without delay by directing cessation of further deductions and commence the refund of all accrued deductions in the past to their customers.

    “NECA urges the President Muhammadu Buhari administration to restrain its operatives from pursuing policies that will increase the burden on the citizenry, both corporate and individuals. It affirmed that stamp duty’s applicability is limited to purchases involving large sums like a house purchase or importation of goods as against the position of applying N50 postage stamp to all receipts given by any bank (or financial institution) in acknowledgement of services rendered in respect of electronic transfer and teller deposits.”

  • NECA hails govt decision on FRC’s policy

    The Nigeria Employers’ Consultative Association (NECA) has praised the Federal Government on its decision to suspend the Financial Reporting Council (FRCN)’s recently released Code of Corporate Governance.

    NECA considered the action appropriate in view of the failure of FRC to secure the buy-in of the Organised Private Sector (OPS) on such important guideline.

    Commenting on the development, the Director-General of NECA, Olusegun Oshinowo, said it was disheartening that the FRC went ahead to release the code without respect to the outcome of social dialogue and engagement with stakeholders.

    Oshinowo said:”The timely intervention by the Honourable Minister of Labour and Employment is a testimony of the avowed commitment of the Federal Government to work with the Private Sector in the resuscitation of the economy.

    “NECA is hopeful that other agencies of government will pick learning points from the development in seeing the private sector as critical stakeholders and partners in progress with major stakes in the progress of the economy and country as a whole.”

    Last week, NECA faulted the new Code of Corporate Governance of the Financial Reporting Council (FRCN) which prohibits the chief executive officer of an establishment from becoming the chairman until seven years on the position.

    The provision called “Cool off period” has generated mixed feeling among stakeholders.

    Oshinowo  said there is no justification for the restriction on MD/CEO becoming the chairman of the same company until after the cool off period of seven years as stated in Section 6 of the Code for Private Sector.”

    He said: “Some companies are formed by one or two shareholders with the vision of what they intend to achieve. What stops such investor that has served meritoriously as the MD/CEO from becoming the chairman upon retirement if so appointed by the board?”

  • NECA, NSITF move to lift injured workers

    NECA, NSITF move to lift injured workers

    The Nigeria Employers Consultative Association (NECA), the umbrella body of employers and the Nigeria Social Insurance Trust Fund (NSITF)  signed a Memorandum of Understanding aimed at boosting payment to injured workers under the scheme.

    The memorandum is meant to address items that constitute payroll of enrollees into the Employees Compensation Scheme (ECS).

    Speaking at the ceremony, Director-General of NECA’s Director General, Segun Oshinowo, said the need for a revision of payment of the one percent of workers payroll by employers into the scheme as required by law informed the setting up of a joint committee whose work culminated into an agreed term for the definition of the payroll and mode of deduction.

    Oshinowo said the outcome of the committee’ work constitute the basis for the Memorandum of Understanding signed by the two organizations, adding that the MoU clearly spells out the items that constitutes payroll with pension, special allowances exempted from the list.

    He explained that both NECA and NSITF have decided to define payroll on the basis of exclusion and that the items that would be excluded are items that are irregular on the payroll such as bonus, overtime payments, items that employers bear the costs but do not translate into cash in the pocket of employees, which formed the basis for the exemption of pension contributions.

    Oshinowo said that the new Memorandum of Understanding will provided clarity of definition as far as items that constitute what a payroll is within an organization.

    He said: “It is difficult to run a scheme where controversies would dogged the implementation because the stakeholders are not on the same page on the terms and references that are contained in the law.

  • NECA blames rising unemployment on lack of good governance

    NECA blames rising unemployment on lack of good governance

    The Nigeria Employers’ Consultative Association (NECA) has blamed the upsurge in unemployment on lack of pervasive development and absence of good governance.

    NECA’s Director-General, Olusegun Oshinowo, who spoke in Lagos, at the launch of an initiative profile, ‘virtual office’, by its sister’s body, Network of Entrepreneurial Women (NNEW), said Nigeria was a developing country with untapped opportunities, waiting to be harnessed.

    He argued that if Nigeria got its act right, the country should not be looking for manpower to support the economy, adding that until Nigeria realised that her problem is not majorly unemployment, it would continue to treat the symptoms rather than the disease.

    “How can a country with large arable land have graduates of agriculture that are unemployed? How can a country, which is the biggest exporter of crude oil in Africa and sixth in the world, have graduates of chemical engineering and geology that are unemployed? The two do not really connect,” he said.

    Oshinowo said the country’s problem was not unemployment, but failure of good policies to promote meaningful development in all strata of government.

    The virtual office, which is a space utility facility with full application that includes professional live communications, is designed to meet the growing demand of Small and Medium Scale Entrepreneurs (SMEs) for affordable office space.

    Having recognised that not all start-up businesses would have the means or the resources to acquire its own office space or facility to start-up, Oshinowo said they need a workplace environment to utilise their vocational skills, stating that if the business environment has not been friendly to sustain existing businesses and encourage new ones, they may not have a place to utilise them.

    “We need to get our priority right. It seems like a marathon kind of approach, which will eventually lead to the resolution of our usual employment. We have got to take a step along that way by prioritising meaningful development, good government policies, encouraging good governance in all strata of government. If we fail to do that, whatever other measures we take to solve unemployment would not lead anywhere,” he said.

    A member of NNEW Governing Council, Mrs. Fayo Williams, noted that good governance is essential to the development of the economy and people of Nigeria.

    According to her, Nigeria needs a lot of inter-agency cooperation with a marshal plan that would help the country harness its human and natural bountiful resources.

    “We need to get the economy going, using the SMEs as a launch pad, making them feel welcome and helping them overcome some of the hydra-headed issues to make them more relevant now in the 21st Century,” she said.