Connect with us

Markets

Paris Club Refund: Strike, Protests Loom in States Over Unpaid Salary Arrears

Published

on

civil-servants
  • Paris Club Refund: Strike, Protests Loom in States Over Unpaid Salary Arrears

There are indications that workers in some states in the country will soon embark on demonstrations or strike action over unpaid salary arrears in their respective states.

A trustee of the Nigeria Union of Local Government Employees, Mr. Fatai Ibrahim, on Friday said NULGE would engage in demonstrations, work to rule and even strike action in states where the governors failed to remit to the local governments their share of the expected last tranche of the Paris Club refund.

Speaking in Ilorin, the Kwara State capital, during a media briefing by the state branch of NULGE, Ibrahim added that the union would engage governors of the states that fail to remit the funds to the local government, adding that where the engagements, negotiations and dialogue fail, the union would embark on strike action to get the governors accede to the workers’ demands.

Also, the state Chairman of NULGE, Alhaji Salihu Yusuf, has urged Governor Abdulfatah Ahmed to ensure that the share of the local governments was paid to them when the state gets the final tranche of the Paris Club refund. He also stressed that the payment of some of the arrears being owed them would greatly alleviate their plight.

He said, “The Kwara State Governor has been saying that local governments will not benefit from the expected Paris Club refund and that we should not be expecting that arrears of salaries being owed workers in various local governments across the state would be paid from the Paris Club refunds.

“Other states are declaring certain percentages in favour of their local governments, why should Kwara State be an exception?”

He also urged the state House of Assembly to vote in favour of local government autonomy to create genuine development at the grass roots, adding that the governor should not wait until all LG workers were dead due to poverty and hardship before he came to their aid.

He also said the payment of junior secondary school teachers’ salaries from the local government allocation through the Joint Account Allocation Committee was responsible for the about 10 months’ arrears of salaries in local governments, adding that the local governments should be freed from that burden.

But the governor, while responding, said the state had accessed 50 per cent of the refund, adding that arrangement was on to end salary crisis in the 16 local government areas of the state.

He said he had met with the local government chairmen with the aim of identifying their problems and finding possible solutions to them.

He said, “What we are doing is to find a permanent solution to the problem. Giving them funds to clear the backlog of salaries is not the solution, but to find the means of improving their revenue base because of the continued drop in federal allocation.”

Meanwhile, the Nigeria Union of Teachers in Kwara State has given the state government an ultimatum to address some lingering labour issues in the state before December 31, 2017, or else the union would not guarantee the resumption of teachers when schools resume on January 8, 2018.

The teachers, in a communiqué after the meeting of the state executive council, on Friday, stated that the labour issues bordered mainly on the payment of salary arrears, the position of the state government not to use the Paris Club refund to offset the salary arrears of its members as earlier pledged, allegedly, at different forums and refusal to implement promotion arrears with its attendant financial backing from 2015 till date.

The communiqué, signed by the state NUT Chairman, Alhaji Musa Abubakar, and the state NUT Secretary, Mr. Ola Idris, partly read, “In view of these, the House resolved that these issues must immediately be addressed before the end of 2017, otherwise, the union cannot guarantee resumption of our members on January 8, 2018.

But the state government has urged the teachers to embrace dialogue, adding that strike was never a good way to address industrial issues.

The Commissioner for Information, Mr. Babatunde Ajeigbe, in an interview with journalists, stated that the governor, Alhaji Abdulfatah Ahmed, was deeply concerned and committed to the welfare of the residents of the state, including teachers, saying the outstanding payment due to the drop in federal allocation.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Crude Oil

IOCs Stick to Dollar Dominance in Crude Oil Transactions with Modular Refineries

Published

on

Crude Oil - Investors King

International Oil Companies (IOCs) are standing firm on their stance regarding the currency denomination for crude oil transactions with modular refineries.

Despite earlier indications suggesting a potential shift towards naira payments, IOCs have asserted their preference for dollar dominance in these transactions.

The decision, communicated during a meeting involving indigenous modular refineries and crude oil producers, shows the complex dynamics shaping Nigeria’s energy landscape.

While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had previously hinted at the possibility of allowing indigenous refineries to purchase crude oil in either naira or dollars, IOCs have maintained a firm stance favoring the latter.

Under this framework, modular refineries would be required to pay 80% of the crude oil purchase amount in US dollars, with the remaining 20% to be settled in naira.

This arrangement, although subject to ongoing discussions, signals a significant departure from initial expectations of a more balanced currency allocation.

Representatives from the Crude Oil Refinery Owners Association of Nigeria (CORAN) said the decision was not unilaterally imposed but rather reached through deliberations with relevant stakeholders, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

While there were initial hopes of broader flexibility in currency options, the dominant position of IOCs has steered discussions towards a more dollar-centric model.

Despite reservations expressed by some participants, including modular refinery operators, the consensus appears to lean towards accommodating the preferences of major crude oil suppliers.

The development underscores the intricate negotiations and power dynamics shaping Nigeria’s energy sector, with implications for both domestic and international stakeholders.

As discussions continue, attention remains focused on how this decision will impact the operations and financial viability of modular refineries in Nigeria’s evolving oil landscape.

Continue Reading

Energy

Nigeria’s Dangote Refinery Overtakes European Giants in Capacity, Bloomberg Reports

Published

on

Aliko Dangote - Investors King

The Dangote Refinery has surpassed some of Europe’s largest refineries in terms of capacity, according to a recent report by Bloomberg.

The $20 billion Dangote refinery, located in Lagos, boasts a refining capacity of 650,000 barrels of petroleum products per day, positioning it as a formidable player in the global refining industry.

Bloomberg’s data highlighted that the Dangote refinery’s capacity exceeds that of Shell’s Pernis refinery in the Netherlands by over 246,000 barrels per day. Making Dangote’s facility a significant contender in the refining industry.

The report also underscored the scale of Dangote’s refinery compared to other prominent European refineries.

For instance, the TotalEnergies Antwerp refining facility in Belgium can refine 338,000 barrels per day, while the GOI Energy ISAB refinery in Italy was built with a refining capacity of 360,000 barrels per day.

Describing the Dangote refinery as a ‘game changer,’ Bloomberg emphasized its strategic advantage of leveraging cheaper U.S. oil imports for a substantial portion of its feedstock.

Analysts anticipate that the refinery’s operations will have a transformative impact on Nigeria’s fuel market and the broader region.

The refinery has already commenced shipping products in recent weeks while preparing to ramp up petrol output.

Analysts predict that Dangote’s refinery will influence Atlantic Basin gasoline markets and significantly alter the dynamics of the petroleum trade in West Africa.

Reuters recently reported that the Dangote refinery has the potential to disrupt the decades-long petrol trade from Europe to Africa, worth an estimated $17 billion annually.

With a configured capacity to produce up to 53 million liters of petrol per day, the refinery is poised to meet a significant portion of Nigeria’s fuel demand and reduce the country’s dependence on imported petroleum products.

Aliko Dangote, Africa’s richest man and the visionary behind the refinery, has demonstrated his commitment to revolutionizing Nigeria’s energy landscape. As the Dangote refinery continues to scale up its operations, it is poised to not only bolster Nigeria’s energy security but also emerge as a key player in the global refining industry.

Continue Reading

Crude Oil

Brent Crude Hits $88.42, WTI Climbs to $83.36 on Dollar Index Dip

Published

on

Brent crude oil - Investors King

Oil prices surged as Brent crude oil appreciated to $88.42 a barrel while U.S. West Texas Intermediate (WTI) crude climbed to $83.36 a barrel.

The uptick in prices comes as the U.S. dollar index dipped to its lowest level in over a week, prompting investors to shift their focus from geopolitical tensions to global economic conditions.

The weakening of the U.S. dollar, a key factor influencing oil prices, provided a boost to dollar-denominated commodities like oil. As the dollar index fell, demand for oil from investors holding other currencies increased, leading to the rise in prices.

Investors also found support in euro zone data indicating a robust expansion in business activity, with April witnessing the fastest pace of growth in nearly a year.

Andrew Lipow, president of Lipow Oil Associates, noted that the market had been under pressure due to sluggish growth in the euro zone, making any signs of improvement supportive for oil prices.

Market participants are increasingly looking beyond geopolitical tensions and focusing on economic indicators and supply-and-demand dynamics.

Despite initial concerns regarding tensions between Israel and Iran and uncertainties surrounding China’s economic performance, the market sentiment remained optimistic, buoyed by expectations of steady oil demand.

Analysts anticipate the release of key economic data later in the week, including U.S. first-quarter gross domestic product (GDP) figures and March’s personal consumption expenditures, which serve as the Federal Reserve’s preferred inflation gauge.

These data points are expected to provide further insights into the health of the economy and potentially impact oil prices.

Also, anticipation builds around the release of U.S. crude oil inventory data by the Energy Information Administration, scheduled for Wednesday.

Preliminary reports suggest an increase in crude oil inventories alongside a decrease in refined product stockpiles, reflecting ongoing dynamics in the oil market.

As oil prices continue their upward trajectory, investors remain vigilant, monitoring economic indicators and geopolitical developments for further cues on the future direction of the market.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending