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Minimum Wage: Labour Orders Nationwide Strike

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  • Minimum Wage: Labour Orders Nationwide Strike

The Nigeria Labour Congress has directed all its members and affiliate unions to commence a nationwide strike on Thursday (today).

The organised labour had held a meeting with the Minister of Labour and Employment, Chris Ngige, in Abuja on Wednesday, which did not produce the expected outcome.

The NLC President, Ayuba Wabba, said the industrial action would commence due to the refusal of the Federal Government to reconvene the meeting of the tripartite national minimum wage committee to enable it to conclude its work.

He said, “In compliance with this mandate, all workers and private sector at all levels across the country have been directed to comply.

“All public and private institutions, offices, banks, schools, public and private business premises, including filling station, are to remain shut till further notice,” Wabba said at a news conference in Abuja on Wednesday.

The workers are demanding a new minimum wage of about N50,000 from the current national minimum wage of N18,000.

Tripartite committee resumes October 4

However, Ngige told journalists after a meeting with labour leaders that the tripartite committee on national minimum wage would resume negotiations on October 4.

“We are resuming precisely on Thursday, October 4, and the meeting can spill over to October 5. All the processes have been put in place and labour leaders know; they are now expected to communicate such to their organs; so we don’t have any need for a strike,” he said.

Asked if the government team had concluded its consultation on the minimum wage with governors, Ngige said it would be done when the tripartite committee resumed, adding that the government was still consulting with other stakeholders.

He said, “Part of our consultation means the economic management team would have something to work on. Already, they are working on it, the National Salaries, Incomes and Wages Commission is working on it and it is expected that before the October meeting, they would have been through with work.”

Ngige said a bill would still have to go through the National Assembly after approval by the Federal Executive Council.

But Wabba said the unions had to brief their organs before calling off the strike.

He said, “Our demand is that the tripartite negotiating council should be brought back to complete its assignment. He has given us an update and we are taking back the discussion we had with him.”

But the NLC Secretary-General, Dr Peter Ozo-Eson, told one of our correspondents that the strike would proceed as planned,

He asked, “Have we said anything to the contrary?”

NUPENG, COEASU, JUSUN workers to join strike

The Petroleum and Natural Gas Senior Staff Association of Nigeria said it would join the strike as long as its labour centre – the Trade Union Congress – was involved.

The spokesman for the organisation, Mr Babatunde Oke, said, “We are going to be part of it. As long as our labour centre is involved, we are also involved. We are going to take part in the strike if TUC so directs us.”

Also, the national leadership of the Judiciary Staff Union of Nigeria directed its members to join the warning strike.

The President of JUSUN, Mr Marwan Adamu, said in a statement on Wednesday that “effective from midnight on Wednesday” all courts in the country must remain closed pending a counter instruction from the national secretariat of the union.”

On its part, the Colleges of Education Academic Staff Union said that it would embark on the warning strike in solidarity with the NLC.

The COEASU National President, Nuhu Ogirima, said, “The academic union will join the strike because it has become evident that dialogue and diplomacy would not make the government change its stance.

He said, “It is also expedient to take this action against the crass insensitivity of governments at both state and federal levels to the plight of the colleges of education.”

ASUU to consult with leadership

But the Academic Staff Union of Universities said it would consult with its leadership and trustees before joining the strike.

The ASUU National President, Prof. Biodun Ogunyemi, told one of our correspondents on the telephone on Wednesday that he could not decide without an approval from the ASUU executives and trustees.

Ogunyemi said, “We are part of the NLC. We are an affiliate of the NLC. But we are waiting for the final decision and we are consulting. I am also consulting with the ASUU leadership.”

But the Owerri Zonal Coordinator of ASUU, Prof Uzo Onyebinama, during a press conference at the Nnamdi Azikiwe University, Awka, Anambra State, on Wednesday said the union might join the strike.

‘Abia workers to comply’

In Abia State, the Chairman of the NLC, Chief Uchenna Obigwe directed federal and state government workers in the state to comply with the directive to embark on the strike.

Obigwe, while briefing journalists in Umuahia, said the NLC viewed the silence of the Federal Government to its demand for a new minimum wage as sabotage.

FG, NLC must consider national interests – SERAP

Meanwhile, a civil society organisation, the Socio-Economic Rights and Accountability Project, has warned that the nation’s economy would be negatively affected by the strike, urging the NLC and the Federal Government to consider the national interests.

The SERAP Director, Adetokunbo Mumuni, said, “In Nigeria, strikes are not an option; a strike will stop the economy and further impoverish Nigerians. What I seek is that the government should settle the minimum wage issue so that our economy can continue to operate at a full speed.

“The NLC should also consider the interests of the workers and of the nation and resolve this issue quickly.”

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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Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024

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The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%

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Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty

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South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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