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Tag: Nigeria Labour Congress

  • Minimum wage: NLC optimistic of payment before end of 2018

    Mr Peter Ozo-Esan, General Secretary, Nigeria Labour Congress ( NLC ) has assured Nigerians workers of the payment of the reviewed minimum wage before the end of 2018.

    Ozo-Esan gave this assurance in an interview with the News Agency of Nigeria on Tuesday in Abuja.

    According to him, in spite of the delay caused by the Sallah break, the tripartite committee involved with the review of the wage will conclude its work on Sept. 4th and 5th.

    “We believe that the initial expectation that by September a new minimum wage should come on board, we think that the government still should be able to deliver that to Nigerians.

    “Nigerian workers will continue to demand that from the government and as soon as this report is submitted government should do the needful before the National Assembly, because that is the process.

    “We expect that the National Assembly will play its part in speedily considering the bill that will be placed before it and do everything possible for Nigerian workers to have a new minimum wage.’’

    On the concerns raised by state governors, Ozo-Esan stressed that it was not for them to determine what to pay, but that as employers they must comply with the minimum wage as approved by law.

    Read Also: Ekiti NLC, TUC bans two labour leaders for 10 years

    “ Minimum wage is not fixed for government, it is fixed for employers across the economy whether government or private employer, the law will require you to pay the minimum wage.

    “ What state governments want does not matter, because this is not a political matter; the minimum wage is the barest minimum that any worker must earn and no employer can go below that.’’ he added.

    The NLC secretary general stressed that state governments mismanaging their funds have no excuse not to pay salaries, adding that Nigerian must start demanding for dividends of democracy from their leaders.

    “We urge our members to get their voter cards and vote out governors who have shown incapacity to govern,” he added.

  • Unpaid Salaries: Ekiti workers chased out of office

    There was confusion at Ekiti State Secretariat on Thursday when some labour leaders chased out workers and declared an indefinite strike action over unpaid salaries.

    The unionists who were followed by other workers also passed a resolution dissolving the state councils of the Nigeria Labour Congress (NLC), Trade Union Congress (TUC) and Joint Negotiating Council (JNC).

    Acting under the aegis of Ekiti Workers Rescue Team (EWRT), the protesting labour leaders and workers were led by the former Chairmen of NLC and TUC, Mr. Ayodeji Aluko and Mr. Kolawole Olaiya respectively.

    The placard-carrying protesters slammed the incumbent NLC Chairman, Mr. Ade Adesanmi and his TUC counterpart, Mr. Odunayo Adesoye, of compromising workers’ interest for personal benefits.

    They said owing core civil servants arrears six months, local government workers six months and pensioners eight months with no serious commitment to offset the backlog was “immoral, ungodly and unacceptable.”

    They observed a minute silence in honour of workers who died in the last four years owing to hardship unleashed on them over government’s failure to pay their salaries and other entitlements.

    Read Also: Ekiti is in pains

    Some of their placards read: “Fayose’s wicked government must go,” “Workers are eating from dustbin,” “Bread and butter unionism is counterproductive,” “Fake labour leaders must go,” “We are dying of hunger,” “It is strange for labour leaders to be defending government,” among others.

    Addressing workers during the protest, Aluko said it was wicked of the Fayose regime to pay six month salaries and furniture allowance to political office holders and refuse to offset arrears owed workers and pensioners.

    Aluko said: “Today, we are dissolving the executives of NLC and TUC in Ekiti and they stand dissolved, because their leaders, Ade Adesanmi and Odunayo Adesoye have lost their values. They are no longer talking about the welfare of the workers they were expected to defend.

    “We decided not to do this protest before election, so that they won’t read political meanings to it. Workers have died, just because they are not paid. In 2014, Governor Fayose said any governor who owed just a month salary because he is building infrastructure doesn’t worth being a governor.

    “Today, the governor owes pensioners ten months, LG workers eight months and civil servants and teachers are owed six months. We are not fighting Governor Fayose but he must pay the workers.

    “Shortly after the election, Fayose quickly paid six month salaries and furniture allowances of political office holders, then what becomes of our teeming workers?

    “It was sad that Adesanmi and Adesoye decided to give Fayemi three months moratorium to pay workers when assumed office, when they were practically doing nothing to ensure that Governor Fayose doesn’t leave office a debtor governor as he promised.

    “We hereby declare indefinite strike commencing from today and only the national secretariats of both TUC and NLC can negotiate on our behalf, because we no longer trust the State leaderships of the two congresses.

    “We regret to inform you that after a thorough consultation and proper reviewing of the decision of Ekiti workers’ congress to withdraw their services until all arrears are cleared.

    “EWRT hereby toe the line of the generality of workers and resolved as follows: that all workers in the civil and public service of Ekiti State should embark on indefinite strike = commencing today, Thursday, 23rd August, 2018 that there should be no skeletal services by any sector of the economy as the strike is termed total that under no circumstance should there be any business transaction in account, bursary and any other department relating to the treasury of Ekiti State. This will be strictly resisted by workers of Ekiti.”

  • Unionisation: NLC vows to continue picketing MTN

    The Nigeria Labour Congress (NLC) has vowed to continue picketing the premises of telecoms giant MTN, until all its workers are allowed to belong to labour unions of their choice.

    Its President, Ayuba Wabba, who disclosed this in Abuja, flayed the communication company for disallowing unionisation in Nigeria, but allow their workers in South Africa and Ghana to belong to unions of their choice.

    The national umbrella body of workers also blamed the Nigeria Communications Commission (NCC) for reporting NLC picketing of MTN to the Office of the National Security Adviser, saying such a step was hypocritical and suspicious.

    NLC berated the NCC for not seing anything wrong with the violation of Nigerian laws, labour laws or security breaches leading to the loss of lives of security personnel, not to talk about humongous financial flows as highlighted in the Thabo Mbeki Report, which continue to undermine Nigeria’s national wellbeing or security.

    NLC held that the greatest threat to Nigeria’s national security was  not by workers, but the arrogant attitude of MTN and its co-travellers or collaborators like the NCC.

    It added: “Let NCC continue to promote this talk about MTN infrastructure constituting core critical national asset. We do not begrudge them. For us at the Nigeria Labour Congress, however, no asset can be more critical to Nigeria than Nigerians themselves.”

    NLC warned the NCC that its premises might be picketed on account of its continued support for MTN, saying, “we wish to put NCC on notice that we will picket it the way we picketed MTN if it continues to discharge its duties in the breach. Let it continue with its ‘amebo’ instead of doing the work for which it was established.”

    NLC described itself as a pan-Nigerian organisation, which  guards national interests and that it cannot be blackmailed.

    “We insist that companies, no matter how rich or powerful, must respect our leaders and obey the laws of the land. We insist they must treat Nigerians fairly and decently, for, clearly, Nigerian workers, nay, Nigerians have been at the receiving end of the bad behaviour of some trans-nationals in the telecoms sector. Enough is enough,” it said.

     

  • NLC decries defection, urges politicians to focus on moving nation forward

    The Bayelsa State Chapter of the Nigeria Labour Congress (NLC) wants  politicians to stop the ongoing   gale of defections, and play politics by the rules to safeguard democracy in the country.

    Mr. John Ndiomu, the state Chairman of NLC, told our reporters in Yenagoa,the state capital onFriday that political actors should instead focus on issues that  would drive Nigeria’s development.

    The chairman cautioned against repeating mistakes of the past, stressing that defection would not impact on national development in any form like job creation and provision of basic amenities.

    He said: “I will not say that our democracy is under threat or that we are going backward; my concern is that our politicians are yet to learn their lessons because the current issue of defection is indicating that they are going to repeat the old mistakes in the forthcoming elections.

    Read Also: Minimum wage panel to end negotiation next month, says NLC boss

    “My question here is: are the defectors defecting for the good interest of Nigerians or for their selfish interest?

    “It is high time we learned  from the past in order not to repeat the old mistakes.

    “In the forthcoming elections, we want politicians who have the interest of Nigerians at heart. “The electorate should be mindful not to vote for politicians that have failed the people.”

  • Aremu unfolds governorship ambition in Kwara

    Former Deputy National President of Nigeria Labour Congress (NLC) Issa Aremu has declared intention to contest for the governor of Kwara State under the Labour Party (LP).

    Addressing party supporters, he said Kwara was lacking in development, adding that he would ensure the people enjoy dividends of democracy when voted to office.

    Aremu said that he would address the uncertainly in state, noting that the people were weighed down by poverty and mass hunger.

    He said: “With God guidance and your support, I hereby offer myself to lead the electoral process in liberating our hitherto promising Kwara State from underdevelopment, mass hunger and poverty.

    “I am honoured and humbled with your sacrifices to make today a reality. I am indeed delighted and grateful that we all turn out because of the legitimate concern we have for the development of our dear state and Nigeria

    “Today seems uncertain, God willing, tomorrow can and will indeed be better. Despite lack of money and pervasive income poverty, you have taken various means of transport like Okada, Keke and unworthy taxis through the notorious Ilorin roads to this place.’’

    Aremu said the government seems to legitimize wage theft especially of local government employees, contrary to the stipulation of the International Labour Organisation (ILO) work conditions.

    He maintained that the bail outs offered by President Muhammadu Buhari had not been judiciously reflected in the condition of the people.

    Aremu said: “In spite of the legitimate worries you still have time to come. Many appreciatively turn up at the shortest notice. I salute your patriotism and remarkable commitment towards a better Kwara, better Nigeria and better Africa.

    “All our worries about poor governance in Kwara call for action. Let’s get out of slumber and murmurs. Let’s organise and stop agonising.

    “The state was created on 27 May 1967, we are proud to be part of the first generation of states which include Rivers, Kano and Lagos states. Last year, first generation states celebrated 50th anniversary. Lagos and other states celebrated 50 with upbeat signature projects.

    He added: “But Kwara at 50 was ‘marked’ almost unnoticed by leaders who paradoxically celebrate their personal birthdays and weddings of their children like days and months long.  At 50 Governor Ahmed Fatai led administration listed unity, peace and development as the achievements of Kwara at 50.

    “Other listed achievements include the Federal, State and private universities, industries, an emerging aviation hub, advanced health facilities, modern recreational facilities, and comparatively good infrastructure. Why then the “low-key”  celebration?

    “Our state urgently begs for development and salvation from bad governance. The 2019 governorship election offers a unique historic opportunity to reclaim our dear state. I offer to lead my dear Kwara state through selflessness, statesmanship, entrepreneurship, compassion, managing diversity, equality, inclusiveness, sense of justice and fairness.”

  • Minimum wage committee to round up negotiation soon – Wabba

    Says no evidence Nigeria has exited Recession

    President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba has assured Nigerian workers that ongoing negotiations for a new national minimum wage will be concluded before the end of August, expressing the hope however that implementation will begin immediately.

    Wabba also said that despite claims by government that the country has exited recession, Nigerians were yet to see the results of the exit as the social and economic situations of average Nigerians are daily becoming bleaker than before.

    The Congress also said that the numerous problems facing the country and its people are signs of bad governance and bad leadership which has characterized the nation’s democracy since 1999.

    Speaking at the 16th Rain School and the 32nd in the sequence of the NLC National Schools, with the theme “Labour, Politics and National Unity: Expanding the Frontiers of Workers’ Participation”, President of Congress, Comrade Ayuba Wabba said the Labour movement remains the only institution can integrate the Nigerian people because it is never divided along primordial lines.

    He said: “The Nigerian nation is undergoing numerous challenges ranging from economic crisis, security crisis and other socio-cultural challenges that we must all come to terms with and collectively tackle.

    “Innocent lives are being killed and dispensed with, as human lives do not count so much to those committing these heinous crimes. Young people are being exploited and used by disgruntled people who are manipulating them because of the crisis of development which have created mass poverty, unemployment and inequality in the country.

    “The numerous problems confronting the country and its people are signs of bad governance and leadership which has characterized our democracy since 1999.

    Read Also: Workers never get demands on platter of gold, says Wabba

    “The Labour movement remains the only standing political institution that has the wherewithal to make national integration possible. This is because; we are never divided along sentimental lines that other political institutions are known with. And that is why we keep insisting that ethnic and religious sentiments have no place in the movement.

    “We are amused that some politicians in the name of expanding the frontiers of capitalism do not see any good in the existence of trade unions. They have forgotten that the working people are the producers of wealth which service their political careers from where they are occupying the political positions.

    “It is in the face of practicing an obscured and jaundiced capitalism that many state governors deliberately refused to pay the salaries of the workers and pensions in their states.

    “One very saddening case is that of Kaduna State, where Governor Nasir El-Rufa’i has embarked on an illusory agenda of ensuring that trade unions become extinct by stopping payment of salary, pensions and check-off dues.

    “Let me have it on record those governors and other political officer holders are elected or appointed to serve the people and not kill them through stoppage of the means of their survival and that of their organizations.

    “Nigerians have been told that the country has gotten out of recession, but we are yet to see the result of the exit of the country from recession as the social and economic situations of average Nigerians is daily becoming bleaker than before.

    “The Nigeria Labour Congress acknowledges the performance of the Independent National Electoral Commission (INEC) in the conduct of elections especially, Congress commends the sterling performance of the INEC in the conduct of the recent governorship election in Ekiti State which was adjudged to be free and fair and devoid of violence by observers.

    “Congress is excited with these performances and in this light wants to call on INEC to come up with some innovations that can make our electoral system better.

    “As the 2019 General elections approach, Congress implores the political parties and politicians to conduct themselves in a civilized way that is in compliance with international best practices through observance and adherence to the electoral rules and regulations.

    The Congress and other stakeholders are still meeting on the issues of minimum wage and hopefully will round up by August 2018. With Minimum wage as one of the most important ways of motivating workers to provide effective service, it is envisaged that, its implementation will engender growth not only among the public sector workers but also among the workers in the private and informal sectors of the economy.

    In Addition, the financial benefits associated with the minimum wage would trickle down to the whole society. It is instructive to state that the Congress will continue to pursue its goal of ensuring Labour participation in politics using its structures and programmes.

  • Make payment of salaries and pensions your first priority, NLC tells Fayemi

    The Nigeria Labour Congress (NLC) has asked Ekiti governor elect, Dr. Kayode Fayemi to pay particular attention to the payment of salaries and pension of the people of the state immediately he is sworn in saying the election that brought him in was a vote of no confidence on the current government in the state.

    In a congratulatory letter to the governor elect, dated 20th July, 2018 and signed by the President of Congress, Comrade Ayuba Wabba, the NLC also asked the governor elect not to waste energy on needless probes of the past government, but pay attention to other compelling needs of the people of the state.

    Wabba said the Labour movement “believes that the non-payment of workers salary and pension by the outgoing government was enough reason for the vote of no confidence by the people. We are confident that one of your first executive actions once sworn into office would be to clear the backlog of salaries and pension owed Ekiti workers.

    “There are other compelling needs of Ekiti people on the basis of which they will look up to you. They shall be acting within their civic rights and responsibility if and when they hold you accountable to your promises. Our responsibility to your government would be no less. We therefore urge you to give your utmost, your very best.”

    Read Also: I’ll probe Fayose’s administration, says Fayemi

    He said further that “Your election, no doubt, is a reflection of the popular wishes of the people and their appreciation of the work you started. Few, if any, suffered the level of government-engineered vilification and witch-hunt aimed at frustrating your bid for a second term in office.

    “That you won this election in spite of these obstacles or frustration should be a source of joy and pride to you and your esteemed supporters.

    “However, we advise that this victory be not pay back time, and neither should it be seen or treated as one but as an opportunity to complete the work started by you in your first tenure. Most importantly, we believe, it will avail you a rare chance to render higher and greater service to the people of Ekiti State who have kept faith with you in spite of everything.

  • 45 percent of Nigerian workers are casual workers

    Says NLC wants Security overhaul

     

    The Nigeria Labour Congress (NLC) said on Wednesday that about 45 percent of workers in the country are operating as casual workers with employers in the banking as well as oil and gas sector the major culprit and asked the government not to do anything that will further compound the current precarious employment situation in the country.

    The congress also asked the government to overhaul the nation’s security architecture to deal with emerging security threats that are threatening to stifle the current economic recovery and growth especially after the last recession.

    Speaking at the 61st Annual General meeting of the Nigeria Employers Consultative Association (NECA), President of Congress, Comrade Ayuba Wabba said Organised Labour will soon visit those employers of Labour that specialized in subjecting Nigerians to unhealthy Labour practices.

    In his address read by the General Secretary of Congress, Dr. Peter Ozo-Eson, the congress said that “a Report by the Campaign for Democratic Workers Rights, 45% of Nigeria’s workforce operates as casual workers. Many employers in the downstream oil and gas and banking sub sectors still indulge in labour casualization. For such employers, we assure you that we will soon be at your doorsteps. We will dare you! We shall win”

    The congress asked the federal government to thread carefully on the African Continental Free Trade Agreement (ACFTA) and ensure robust consultations with labour and employers before ratifying the ACFTA.

    It said that the government should ensure that smuggling and false declarations on countries of origin do not stifle local competitiveness of Nigerian businesses if ACFTA is eventually ratified.

    The NLC also calls on government to “overhaul our security architecture to deal with emerging security threats that are threatening to stifle the current economic recovery and growth especially after the last recession.

    “Many businesses have been shut down in many of the flash point communities as many innocent Nigerians are forced to flee from their homes and take up residence in Internally Displaced Persons Camps scattered all over the country.

    “The recent resurgence of Boko Haram insurgency also needs to be tackled. While we commend the Nigerian Armed Forces for the sacrifice and commitment to restore normalcy and peace in different troubled spots in our country, we warn of the dire consequences of allowing the current gloomy security situation in Nigeria to relapse into a political recession.”

    The congress said while NECA which is the umbrella body of employers in the country has a strong bond with Nigerian workers, there are still a few employers who have refused to be on the same page with the rest of employers in taking the issue of workers’ rights and entitlements seriously.

    The congress said: “Just last week, the Nigeria Labour Congress and its civil society allies took on MTN over several and severe anti-workers policies. It is unfortunate that organized labour was forced to adopt the strategy of picketing against MTN.

    Read Also: NLC pickets MTN office in Kano

    “For more than five years now, the NLC has been trying to make MTN understand the need to allow its workers to unionize Our position is that MTN cannot reap so much profits from our country and still treat our constitution and labour laws with disdain.

    “MTN, unlike its operations elsewhere, has refused to allow its employees the freedom to join trade unions. Efforts by well meaning Nigerians including the leadership of NECA to make MTN realize that it cannot continue to break our laws without consequences failed.

    “It is unfortunate that MTN has chosen to be the face of corporate rascality in Nigeria. The Nigeria Labour Congress wishes to advise MTN that it’s poorly thought out script of “industrial apartheid” has died on arrival.

    “Having fought from the frontline in the struggle for Nigeria’s independence and having resisted apartheid and neo-colonialism in South Africa and other parts of the Global South, organized labour in Nigeria will remain unwavering in its commitment to uproot every vestige of modern day industrial slavery as being championed by MTN.

    “It is very important that we sound a note of warning that last week’s picketing of MTN offices nationwide is only a first service of notice. If MTN refuses to heed the voice of reason and chooses to trudge along a perfidious path, it can be rest assured that Nigerian workers will adopt every legitimate means within its reach to ensure that workers locked up in its concentration camps are freed sooner rather than later.

    “MTN is not alone in the practice of casualization of labour and anti-unionization. We wish to remind all employers that our laws allow all workers to exercise their freedom of association to belong to unions of their choice in line with the provisions of ILO Convention 87 and Section 40 of the 1999 Constitution of the Federal Republic of Nigeria.

    “Casual workers in our workforce operate under very precarious conditions with near total denial of the benefits associated with permanent and decent work. Nigerian workers can no longer offer their labour to slave drivers whose only interest is profit maximization and capital mobility.

    “I wish to reiterate the commitment of organized labour to keep open our warm hands of fellowship to NECA especially given the commitment of many of your members to harmonious industrial relations. We assure you of the commitment of Nigerian workers to continue to give you their best efforts knowing full well that we are all partners in progress for the good of our country, profitable businesses and the betterment of the lives of millions of Nigerian workers who are the hands that turn the wheels of prosperity.

    “The Nigeria Labour Congress will continue to stand by NECA in ensuring that we foster a suitable environment for businesses to thrive. It is in this wise that the Nigeria Labour Congress has always taken up strong advocacy and campaigns for laws and policies that improve the ease of doing business.

    “We will continue to work with our affiliate unions to ensure that high-handed taxes and tariffs by government are re-negotiated to enable businesses to thrive, ensure workers retain their employment and for government to enjoy sustained revenue.

    “Currently, the Nigeria Labour Congress is taking up the issue of the recent 500% hike in the excise duty on alcohol, spirit and tobacco. We are working with our affiliate union in the food, beverages and tobacco sector, the National Union of Food Beverages and Tobacco Employees (NUFBTE), to engage the Federal Ministry of Finance and the National Assembly on this issue.

    “We have already submitted a memorandum and made appearances together with NUFBTE at a Public Hearing by the Nigerian Senate on the issue of the hike.

    “The Nigeria Labour Congress has adopted a traditional posture against neo-liberal tendencies of successive governments in Nigeria which we believe is extremely hurtful and deleterious to our local enterprises and employers of labour.

    “The NLC has also been proactive and vocal on the need for government to improve on critical national infrastructure. It would be foolhardy to continue to depend on generators to run our economy and expect robust competitiveness and sustained growth. The truth is that we cannot continue to operate a 19th century infrastructure and expect to experience a 21st century economy.”

  • Corruption threatens development in Africa – NLC

    The Nigeria Labour Congress (NLC) said on Wednesday that the high incidence of corruption in Africa represents a direct threat to its progress, stability and well-being which must be confronted head on if the continent must progress.

    In a statement to mark the 2018 African anti-corruption day and signed by the President, Comrade Ayuba Wabba, the Congress said corruption remain the most pressing governance and development challenge confronting African nations today.

    The congress said that corruption in several ways has continues to arrest growth and development, creating in the process situations of unacceptable unemployment, infrastructural decay, collapsed energy systems and capacities, massive production deficits and near absence of social justice”

    He said “Corruption has also created situations of strife or exacerbated them as was the case with the Boko Haram insurgency under the previous government.”

    Wabba said: “We would want to identify and collaborate with the AU as it marks this year’s anti-corruption day. In our view, corruption remains the most pressing governance and development challenge confronting Africa today, Nigeria inclusive.

    Read Also: NLC rejects 500 per cent tariff on local alcohol

    “Corruption in several ways continues to arrest growth and development, creating in the process situations of unacceptable unemployment, infrastructural decay, collapsed energy systems and capacities, massive production deficits and near absence of social justice.

    “Corruption has also created situations of strife or exacerbated them as was the case with the Boko Haram insurgency under the previous government. Thus, it is clearly evident that the high incidence of corruption in Africa represents a direct threat to its progress, stability and well-being.

    “We find it heartening that AU has not only recognised the enormity of this problem but has set up a day as a perpetual reminder and symbol of the fight against corruption.

    “On our part, we believe corruption is a monster that must be confronted head-long if Africa is to make any headway or be taken seriously in the comity of nations.

    “For us this fight, however, must go beyond the symbolism of marking the day to demonstrable commitment by leaders of African countries and other office holders that corruption is a reprehensible crime that should be stamped out.

    “In furtherance of this, we have held and will continue to hold anti-corruption and good governance rallies. We have held sensitisation workshops just as we have called for special anti-corruption courts and imposition of capital punishment for serious corruption cases.

    “The Thabo Mbeki report on Illicit Financial Flows in Africa clearly revealed that humunguous corruption goes on in both public and private sector-settings.

    “This underscores not just the severity of the incidence of corruption; it presents a picture of hopelessness of the African condition. But we need not despair if we are determined or committed to deal with corruption.

    “It is on this note that we at the Nigeria Labour Congress enjoin all those who want  to see a new Africa to rise with one accord and fight corruption today…. African leaders, multi-nationals, Western Financial Institutions, all of us”.

  • NLC rejects 500 percent tariff on local alchohol

    Says it may create more unemployment, job losses

    The Nigeria Labour Congress (NLC) has rejected the recent policy of 500% increase in tariff on locally produced alcohol, spirits and tobacco, saying the policy will be counter-productive, while leading to job loss and the possible relocation of some affected companies.

    In a letter to the Minister of Finance, President of the Congress, Comrade Ayuba Wabba said the implementation of the policy is capable of resulting to massive job loss as well as relocation of affected industries.

    Wabba said: “While NLC commend and support the laudable efforts of government in increasing revenue and diversifying the economy in order to meet its obligations to the people, which is already yielding positive results, we however observe that the Federal Government’s recent policy of 500% increase in tariff on locally produced alcohol, spirits and tobacco will be counter-productive.

    “This policy will eventually lead to job losses and possible re-location of affected companies to neighboring African countries as was the case with Dunlop and Michelin.”

    Wabba said this astronomical increase in tariff will “lead to huge price disparity between locally produced alcohol, tobacco and spirit and the ones produced outside Nigeria or imported. It will also increase the cost of production and reduce profit margin. It will also lead to the closure and possible relocation of those industries to neighboring countries within the West African sub region.

    Read Also: It’s senseless, says NLC

    “We also wish to draw the attention of the Honorable Minister to the threat that the current hike in tariff on locally produced alcohol and tobacco poses to Nigeria’s position as the choice investment destination in the food, and tobacco industry in Africa.

    “Currently, the British American Tobacco Company (BATC) has its largest manufacturing concerns in Nigeria and actually services other markets in the sub-region from Nigeria.

    “The leadership of our union in the sector, NUFBTE, has been informed by manufacturers in the sector that they are seriously considering moving their businesses elsewhere if government goes ahead with the current hike in tariff.

    “The BATC which retains its highest manufacturing presence in Nigeria is seriously considering moving out a significant portion of its production lines out of Nigeria to other African countries. Also, many distiller companies, and Guinness Breweries which invested billions in distilling have decided to divert investments running into billions of naira to other neighboring African countries.

    “The massive job losses and social backlashes occasioned by the pull out of Michelin and Dunlop manufacturing company from Nigeria to Ghana and other neighboring African countries was a result of unfriendly policies and harsh business environment which we cannot quickly forget. We must do everything possible to prevent a re-occurrence.

    “Currently, the Food and Beverages sector employs more than 2 million workers with not less than forty million dependents. We are concerned that if the government continues with this policy, millions of Nigerian families would lose their source of livelihood. The multiplier effect of such scale of job losses and despondency is better imagined than experienced”.

    Wabba asked the Federal Government to quickly put in motion a procedure to meet and dialogue with key players in the industry to find the best balance and suspend the implementation of the policy, however laudable it is, to prevent the negative impact it will have on the economy, workers and Nigerians until after a proper consultation with key industry players.

    He said that the proposed high tariff should actually only apply to imported spirits tobacco and alcohol to protect our local market and jobs and consider embarking on actions that will encourage and relieve the concerned manufacturing companies with incentives and tax waivers that will rather stimulate the sustainability of the affected companies instead of introducing policies that will further constitute obstacles and distraction to their profitable operation.

    According to him, the policy of the current government has been to encourage Nigerians to consume what we produce as a country. This should be sustained and increase its effort towards advocacy and control of the consumption of alcohol by emphasizing and focusing on aggressive campaign and sensitization of the populace on the health hazards inherent in consuming unregulated local wines and spirits instead of imposing this kind of tariff hike that would lead to factory closures.