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Labour Plans Nationwide Strike Over N30bn NSITF Fraud

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  • Labour Plans Nationwide Strike Over N30bn NSITF Fraud

Irked by the alleged looting of funds at the Nigerian Social Insurance Trust Fund, some members of the organised labour want the Federal Government to bring the perpetrators to book to prevent a nationwide strike, OZIOMA UBABUKOH writes.

Nigerians should brace for a nationwide strike as workers have bemoaned the Federal Government’s attitude over the N30bn fraud allegedly perpetuated by the last Board of the Nigerian Social Insurance Trust Fund and have threatened to down tools soon.

According to labour unions in the country, the NSITF, set up to bring succour to the working class, has been looted over the years and it has not been able to fulfil the reason for its establishment.

Trouble started for a former Managing Director of the NSITF, Umar Abubakar, and his co-defendants, (some of who are former board members and current staff of the Fund), when a whistle-blower petitioned the Economic and Financial Crimes Commission accusing them of abusing their positions to divert public funds running into billions of naira.

Acting on the petition, EFCC operatives investigated the allegations and it was alleged that between 2012 and 2015, the accused received kickbacks in dollars while discharging their duties “and conspired to divert about N18bn, being contribution from the Federal Government as take-off grants and Employees Compensation Scheme for Ministries, Departments and Agencies.”

The EFCC said the money was diverted into personal accounts by an e-payment mandate. The offence is said to contravene Section 311 of the Penal Code cap 532 LFN (Abuja) 1990 and punishable under Section 312 of the same code.

The United Labour Congress called on the administrative panel of enquiry recently set up by the Ministry of Labour and Employment to conduct a thorough investigation into the alleged looting of the funds, and insisted that the government must bring the culprits to book “or risk a nationwide strike from all the labour unions in the country.”

In a telephone interview with our correspondent on Sunday, the General Secretary, ULC, Didi Adodo, said, “The ULC wishes to state categorically that we support this probe and any other action that the minister will take to sanitise the industry and make the NSITF to fulfil the aims and objectives of its existence.

“Hearing about the rot and the plundering that has taken place in that agency is enough for any right-thinking organisation and comrades to support a major probe that will not only unearth what has taken place, but to also bring the perpetrators to justice.”

The Minister of Labour and Employment, Chris Ngige, in line with a presidential directive, had recently inaugurated all the boards of parastatals under the ministry except that of the NSITF due to the alleged fraud discovered in the agency.

The boards inaugurated by the minister are those of the National Productivity Centre, National Directorate of Employment, and Michael Imoudu National Institute for Labour Studies.

President Muhammadu Buhari had in October 2017 constituted the Board of the NSITF with the former President of the Nigerian Union of Petroleum and Natural Gas Workers, Chief Frank Kokori, as the chairman.

Giving reasons why the board was not inaugurated alongside others, Ngige said he had the consent of the President to stay action on the NSITF board pending the outcome of the administrative panel of enquiry set up by the ministry “to investigate the mindless looting of the agency.”

He urged members of the other boards inaugurated to be accountable in the discharge of their mandates to avoid a repeat of the rot in the NSITF.

Ngige said, “The operations of the various parastatals must strictly conform to financial regulations, especially Section 32 of the Procurement Act. The audited accounts of the parastatals must always be prepared and submitted to the relevant authorities as and when due.

“The NSITF, for example, is reeling from massive looting with no audited accounts for five years. A whooping sum of N5bn was unearthed by an audit panel of enquiry as having been taken out of the NSITF coffers with First Bank in a single day without vouchers.”

The minister added, “Worse still, the organisation maintained no cash book as required by financial regulations. This resulted in massive looting of funds by board members acting in concert with the management staff.

“When we say N5bn was taken in one day, that’s not the only amount missing. Over N30bn cannot be accounted for and the members of the past board participated actively in the looting.”

Adodo, however, said that members of the ULC hoped that after the probe, “the NSITF will be put in proper shape to deliver on its mandate.”

“We call on the government to do a detailed investigation about the fraud in the NSITF and Trustfund, as no stone should be left unturned. These two bodies have workers’ funds, their life savings and, in this era of the fight against corruption, there should be no sacred cow,” he added.

The ULC Deputy President, Igwe Achese, who shared Adodo’s views, demanded to know the roles that the representatives of labour and private sector on the board of the NSITF played in the alleged fraud.

He said, “The probe should be extended to the board members that served in the last tenure and they should be arrested by the Economic and Financial Crimes Commission and relevant security agencies for prosecution. We need to know the roles and actions of all the board members, including representatives of labour when the fraudulent activities took place, as they were supposed to represent workers’ interest.

“If the representatives of labour were involved, Nigerian workers should rise up against the board members for not protecting their hard-earned life savings.”

Members of the Nigeria Labour Congress represented the organised labour on the NSTIF board, but when our correspondent contacted some of them, they declined speaking on the matter.

One of them said, “You know those who represented us on the board. Why not reach out to them.”

Achese said that the board members from the organised labour did not do well in protecting the workers’ savings, “which led to the high magnitude of fraud and embezzlement.”

“Therefore, they should be made to face the wrath of the law,” he added.

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.

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Economy

NLNG Boosts Cooking Gas Production to 1.5 Million Metric Tonnes Annually

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Nigeria Liquefied Natural Gas Limited (NLNG) has announced a significant milestone in its operations, boosting its annual production of liquefied petroleum gas (LPG), commonly known as cooking gas, to over 1.5 million metric tonnes.

This surge in production underscores NLNG’s commitment to meeting the rising demand for clean cooking energy in Nigeria.

The entirety of NLNG’s 1.5 million tonnes production is now being sold domestically within Nigeria.

Moreover, the company has initiated a landmark shift by starting to supply LPG in naira, moving away from the traditional practice of trading in United States dollars.

This move aligns with calls from stakeholders in the oil and power sectors advocating for naira transactions, especially amidst the challenges posed by currency fluctuations.

During a panel session at the 7th Nigeria International Energy Summit in Abuja, NLNG’s General Manager of Finance, Fatima Adanan, highlighted the company’s dedication to enhancing LPG penetration across the country.

Adanan emphasized NLNG’s vision to make Nigeria a better place by promoting the use of cleaner energy sources like gas.

While NLNG’s production surge is commendable, Adanan acknowledged that Nigeria’s LPG requirements surpass the current output, necessitating imports to bridge the gap.

However, NLNG remains committed to expanding its production capacity to meet the nation’s energy needs and drive increased adoption of LPG as a cleaner cooking fuel.

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Economy

CBN Raises Benchmark Interest Rate by 400 Basis Points to 22.75%

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has raised the benchmark interest rate by 400 basis points to a record 22.75%.

The decision made by the Monetary Policy Committee (MPC) comes amidst rising inflationary pressures and growing uncertainty in Africa’s largest economy.

Nigeria’s inflation rate rose to 29.90% in January 2024, the highest in over two decades while the nation’s unemployment rate quickened to 5% in the third quarter of 2023. Suggesting that the rising costs have continued to drag on both new job creation and the existing ones.

This coupled with a series of policy adjustments implemented by President Bola Ahmed Tinubu has plunged economic productivity and eroded consumer spending as citizens grapple with high fuel prices, electricity tariffs, a record-high foreign exchange rate, and insecurities.

Therefore, it is surprising that the Monetary Policy Committee (MPC) led by the CBN will further increase borrowing costs by 400 basis points at a time when job creation is paramount.

While the economy reportedly grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, this growth is yet to crystalise as businesses and citizens have taken to the street protest against the harsh economic situation.

Economic experts have started questioning the data from the National Bureau of Statistics (NBS) given its lack of correlation between the data and economic reality.

 

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Economy

President Tinubu Unveils Geometric Power Plant in Aba After 20-Year Wait

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Geometric Power Plant

After two decades of anticipation, President Bola Tinubu, through his representative Vice President Kashim Shettima, inaugurated the long-awaited Geometric Power Plant in Aba, a significant milestone in the city’s quest for reliable electricity supply.

The event, which also saw the commissioning of three rehabilitated roads by Abia State Governor Alex Otti, symbolizes the culmination of years of perseverance and determination to transform Aba’s power landscape.

Addressing the audience, Vice President Shettima hailed the project as a testament to the power of visionary leadership and unwavering commitment to progress.

He said the Geometric Power Plant exemplifies the transformative impact of strategic infrastructure investments on local communities.

Governor Otti echoed similar sentiments, emphasizing the importance of the power project in positioning Aba as a hub for national and international business ventures.

He commended the efforts of Geometric Power Limited while urging them to uphold transparency and avoid exploiting consumers.

The inauguration of the Geometric Power Plant comes amidst growing concerns over Nigeria’s power infrastructure and the need for sustainable solutions to address electricity shortages.

The project, with a capacity of 188MW, holds promise for significant improvements in power supply across Abia State, benefitting nine out of seventeen local government areas.

The Managing Director of Geometric Power Limited, Ben Caven, underscored the scale of investment involved, totaling $800 million.

He highlighted the comprehensive nature of the project, which includes the installation of new power substations and a 27km natural gas pipeline, signaling a comprehensive approach to enhancing Aba’s energy infrastructure.

In conclusion, the inauguration of the Geometric Power Plant represents a transformative moment for Aba, offering renewed hope for economic growth and prosperity powered by reliable electricity supply.

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