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Minimum Wage: Slow Pace of Negotiations Worries Labour

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  • Minimum Wage: Slow Pace of Negotiations Worries Labour

Organised labour has decried the slow pace of negotiations over the new national minimum wage, calling on workers to be alert as the road to the minimum wage may not be smooth.

The Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees (AUPCTRE), Comrade Benjamin Anthony, expressed workers’ discontentment at the slow pace of work on the issue of minimum wage.

Anthony said the workers were waiting for the government’s pronouncement on the new minimum wage, adding that workers had been short-changed for the past two years, based on the law on minimum wage.

He said: “We observed with great discontentment the slow pace of work on the new national minimum wage. The current minimum wage law came into effect in 2011 and it was designed for review every five years.

“By implication, another minimum wage ought to have been signed into law since 2016. That is to say that Nigerian workers have been denied the fruit of their labour for the past two years.

“As we patiently await the pronouncement of the new minimum wage at the third quarter of the year as announced by the Minister of Labour, Dr. Chris Ngige, during the just-concluded 40th anniversary of the Nigeria Labour Congress. I implore workers to be at alert as the road to the minimum wage might not be smooth.

The labour leader called on workers to resist the deceit of political class that resources were not enough to pay minimum wage considering the wide gap that exist between the salaries of political office holders and the toiling workers that produce the wealth of the nation.

He said workers would no longer accept N18, 000 minimum wage when a Senator collects N13.5 million monthly as running cost.

Also, the AUPCTRE FCT Chapter Acting Chairman, Comrade Aliyu Maradun said: “Someone sitting somewhere (Senator) cannot be collecting N13.5 million incentive in a month, and you pay a miserable N18, 000 to a worker in a month. It is unacceptable, it is not possible and it is not going to work.”

“On the strength of the above, permit me to state, with every seriousness, that the primary objective of our union is to defend the economic interest of our members through diligent negotiations, dialogue, collective bargaining, trade dispute, protest, rallies and strikes.”

Maradun said trade union is an integral part of the society and has become an important part of the economic fabric of Nigeria, recognised and consulted by employers of labour and governments.

Nigerian Civil Service Union President, Comrade Kiri Mohammed, said the new demand reflected inflation and other economic realities.

He said: “We submitted our request, NLC has decided to look at the figure and modify it; we actually modified it, an upward review above N56,000, but I am not going to tell you how much because the president (Ayuba Wabba) is supposed to say it.

“We have submitted it to the secretariat of the tripartite committee. The review is in conjunction with the Trade Union Congress (TUC). You can’t do it alone. All of us met and decided to put heads together and look at the realities on the ground.”

Kiri expressed confidence that the minimum wage bill would be passed by the National Assembly and implemented by the Federal Government this year.

He asked: “Who made the budget?” adding: “I believe if the government is serious, we can finish this matter towards the middle of this year, June, July.

“If we can finish at that time, then before the end of the year, certainly the President must send whatever we agreed on to the National Assembly for them to look at it and for him to assent to it as a law, but I know that once we agreed, government would implement whatever is agreed.”

Wabba has also warned those he accused of working against the realisation of the new minimum wage within government so also that labour would resist their antics.

He vowed to resist any attempt to slowdown the review of the national minimum wage. “Let us use this medium to serve notice to those who seek to slow down or frustrate the process of review that they will be resisted in like manner as our predecessors did.

“We are prepared to deal with employers, especially governors, who deny workers and pensioners their salaries and pension. Workers and their families would not give them any further political support, especially their votes,” Wabba warned.

Meanwhile, the Federal Government, through the Minister, has assured workers of the introduction of a new minimum wage latest by the third quarter of the year.

The Minister, who gave the assurance recently, added that implementation of the new pay would take effect immediately after the announcement.

He added that the government was already receiving memoranda from relevant bodies and persons to enable the determination of the new minimum wage.

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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Crude Oil

Dangote Mega Refinery in Nigeria Seeks Millions of Barrels of US Crude Amid Output Challenges

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Dangote Refinery

The Dangote Mega Refinery, situated near Lagos, Nigeria, is embarking on an ambitious plan to procure millions of barrels of US crude over the next year.

The refinery, established by Aliko Dangote, Africa’s wealthiest individual, has issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

This development revealed through a document obtained by Bloomberg, represents a shift in strategy for the refinery, which has opted for US oil imports due to constraints in the availability and reliability of Nigerian crude.

Elitsa Georgieva, Executive Director at Citac, an energy consultancy specializing in the African downstream sector, emphasized the allure of US crude for Dangote’s refinery.

Georgieva highlighted the challenges associated with sourcing Nigerian crude, including insufficient supply, unreliability, and sometimes unavailability.

In contrast, US WTI offers reliability, availability, and competitive pricing, making it an attractive option for Dangote.

Nigeria’s struggles to meet its OPEC+ quota and sustain its crude production capacity have been ongoing for at least a year.

Despite an estimated production capacity of 2.6 million barrels a day, the country only managed to pump about 1.45 million barrels a day of crude and liquids in April.

Factors contributing to this decline include crude theft, aging oil pipelines, low investment, and divestments by oil majors operating in Nigeria.

To address the challenge of local supply for the Dangote refinery, Nigeria’s upstream regulators have proposed new draft rules compelling oil producers to prioritize selling crude to domestic refineries.

This regulatory move aims to ensure sufficient local supply to support the operations of the 650,000 barrel-a-day Dangote refinery.

Operating at about half capacity presently, the Dangote refinery has capitalized on the opportunity to secure cheaper US oil imports to fulfill up to a third of its feedstock requirements.

Since the beginning of the year, the refinery has been receiving monthly shipments of about 2 million barrels of WTI Midland from the United States.

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Oil Prices Hold Steady as U.S. Demand Signals Strengthening

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Oil prices maintained a steady stance in the global market as signals of strengthening demand in the United States provided support amidst ongoing geopolitical tensions.

Brent crude oil, against which Nigerian oil is priced, holds at $82.79 per barrel, a marginal increase of 4 cents or 0.05%.

Similarly, U.S. West Texas Intermediate (WTI) crude saw a slight uptick of 4 cents to $78.67 per barrel.

The stability in oil prices came in the wake of favorable data indicating a potential surge in demand from the U.S. market.

An analysis by MUFG analysts Ehsan Khoman and Soojin Kim pointed to a broader risk-on sentiment spurred by signs of receding inflationary pressures in the U.S., suggesting the possibility of a more accommodative monetary policy by the Federal Reserve.

This prospect could alleviate the strength of the dollar and render oil more affordable for holders of other currencies, consequently bolstering demand.

Despite a brief dip on Wednesday, when Brent crude touched an intra-day low of $81.05 per barrel, the commodity rebounded, indicating underlying market resilience.

This bounce-back was attributed to a notable decline in U.S. crude oil inventories, gasoline, and distillates.

The Energy Information Administration (EIA) reported a reduction of 2.5 million barrels in crude inventories to 457 million barrels for the week ending May 10, surpassing analysts’ consensus forecast of 543,000 barrels.

John Evans, an analyst at PVM, underscored the significance of increased refinery activity, which contributed to the decline in inventories and hinted at heightened demand.

This development sparked a turnaround in price dynamics, with earlier losses being nullified by a surge in buying activity that wiped out all declines.

Moreover, U.S. consumer price data for April revealed a less-than-expected increase, aligning with market expectations of a potential interest rate cut by the Federal Reserve in September.

The prospect of monetary easing further buoyed market sentiment, contributing to the stability of oil prices.

However, amidst these market dynamics, geopolitical tensions persisted in the Middle East, particularly between Israel and Palestinian factions. Israeli military operations in Gaza remained ongoing, with ceasefire negotiations reaching a stalemate mediated by Qatar and Egypt.

The situation underscored the potential for geopolitical flare-ups to impact oil market sentiment.

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Shell’s Bonga Field Hits Record High Production of 138,000 Barrels per Day in 2023

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Shell Nigeria Exploration and Production Company Limited (SNEPCo) has achieved a significant milestone as its Bonga field, Nigeria’s first deep-water development, hit a record high production of 138,000 barrels per day in 2023.

This represents a substantial increase when compared to 101,000 barrels per day produced in the previous year.

The improvement in production is attributed to various factors, including the drilling of new wells, reservoir optimization, enhanced facility management, and overall asset management strategies.

Elohor Aiboni, Managing Director of SNEPCo, expressed pride in Bonga’s performance, stating that the increased production underscores the commitment of the company’s staff and its continuous efforts to enhance production processes and maintenance.

Aiboni also acknowledged the support of the Nigerian National Petroleum Company Limited and SNEPCo’s co-venture partners, including TotalEnergies Nigeria Limited, Nigerian Agip Exploration, and Esso Exploration and Production Nigeria Limited.

The Bonga field, which commenced production in November 2005, operates through the Bonga Floating Production Storage and Offloading (FPSO) vessel, with a capacity of 225,000 barrels per day.

Located 120 kilometers offshore, the FPSO has been a key contributor to Nigeria’s oil production since its inception.

Last year, the Bonga FPSO reached a significant milestone by exporting its 1-billionth barrel of oil, further cementing its position as a vital asset in Nigeria’s oil and gas sector.

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