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Minimum Wage: No Strike Threat, Negotiation Ongoing, Says NLC

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Ayuba Wabba
  • Minimum Wage: No Strike Threat, Negotiation Ongoing, Says NLC

The Nigeria Labour Congress (NLC) has denied recent media reports that it threated to embark on strike over the delayed implementation of the new minimum wage.

Speaking in a telephone chat, the National President, NLC, Mr Ayuba Wabba, vehemently discarded reports of an agreed strike action.

“NLC has not declared any action,” he said.

“If we have, I will speak to it. You will hear my voice and I will sign a document. We have not issued any notice in that respect. Even the Trade Union Congress has not done that.”

Some newspapers had reported on Tuesday that unions under the NLC had vowed to begin an indefinite industrial action nationwide over the new minimum wage.

But Wabba described the report as unsubstantiated rumours.

Labour union representatives are currently negotiating with government representatives over the new minimum wage and Wabba said, “if there is any constraint, our attention will be drawn to it and then the unions can interface.”

The NLC is an umbrella body for more than 40 unions across the country and is recognised by the International Labour Organisation (ILC) as the definitive union representing Nigerian workers.

The other umbrella for unions in the country, with a national spread, is the Trade Union Congress.

In 2016, a third umbrella body for unions, the United Labour Congress (ULC) emerged.

President Muhammadu Buhari, signed a new minimum wage into law last April, but its implementation has been stalled over disagreement between union and government representatives on how to review real wages in the civil service.

Media recently reported that the federal government had proposed, in addition to the adjustments of the minimum wage of those who are already on level one to level six to reflect the new minimum wage, a consequential salary adjustment of N10,000 per month across the board for all the harmonised salary structure to ensure equity.

This gave rise to the additional cost implication of N158,771,830,326.00 per annum, which has already been captured in the 2019 budget.

However, labour leaders were reportedly adamant that officers on level seven to 14 should also get an additional 30 percent of their salaries, while those on level 15 to level 17 should have 25 percent of their current monthly earnings added to their salaries.

“You can’t give absolute figure for minimum wage increase,” Secretary General of the Trade Union Congress, Mr Musa Lawal stated.

“It is a percentage issue and we told them right from time. It is a question of percentage. Somebody who was on N18,000 who moves to N30,000, what is the difference? It is the percentage difference we are looking for; anything short of that is zero and we are not taking it. That is the position of labour.”

Lawal, also noted that it was incorrect to say previous minimum wage reviews had not reflected percentage as increase as labour is now demanding.

“They had a table that ensured that no one was cheated,” he said. “If they present the table, we will look at it, but they have not presented the table. As it is now, what the federal government is offering is useless and cannot be taken. They should give us paperwork on what they are saying and we will respond officially.”

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.

Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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