The Organised Labour in Nigeria has been urged to shelve its strike action billed to commence on Monday June 3, 2024 across the country.

Making this appeal was Sultan of Sokoto and President General of the Nigeria Supreme Council for Isslamic Affairs (NSCIA), His Eminence Alhaji Muhammad Sa’ad Abubakar, CFR, mni, through a statement circulated to the press by his Media Team Sunday night of June 2, 2024.

The Sultan said that, “The Labour leaders should consider the overbearing effects of the strike action they plan to embark upon in the wellbeing of the same Nigerians, whose interest they are fighting to protect, and therefore shelve the industrial action.”

According to him, the Organised Labour should not at any time be tired of negotiating with government.


“We appeal to Labour not to take the nation through another leg of hardship because that exactly is what will happen, if they make good their plan to go on this strike. They should try to listen to the government while the government should listen to them and both parties arrive at a conclusion that will be beneficial to all Nigerians with the working class inclusive,” he appealed.

Sultan Sa’ad Abubakar said, having been personally involved in such negotiations between the labour and government in the past, he was aware of the fact that the labour leaders are doing what is right making a case of better welfare for their class of fellow workers but that, they should do it in a way that will not plunge the nation into further hardship and difficult situation.

“You are doing what is right for your class of fellow workers but you should do it within the ambit of compassion and see strike always as the last option,” he said.

he Federal Government borrowed N20.1 trillion from domestic investors in the first year of President Bola Tinubu’s administration, representing a year-on-year YoY increase of 117 per cent from former President Muhammadu Buhari’s last year in office, prompting concerns over the impact on the economy including likely additional pressure on inflation, increased debt service cost and higher borrowing cost from businesses.

Analysts noted that the sharp increase in Federal Government’s borrowing has the potential to compound the historic high inflationary trend in the country which may lead to further interest rate hikes by the Central Bank of Nigeria, CBN and by extension increased cost of borrowing for businesses and individuals.

The Federal Government borrows from domestic investors through issuance of FGN Bonds, FGN Savings Bonds, and Sukuk Bonds by the Debt Management Office, DMO. In addition to these are the Nigeria Treasury Bills, NTBs, issued by the CBN on behalf of the FG.

Analysis of data from the DMO and CBN showed that in the 12 months ending May 31st (June 2023 to May 2024), also the first year of Tinubu as president, the FG borrowed N20.09 trillion through these instruments, representing YoY increase of 117 per cent from the N9.275 trillion borrowed in the previous 12 months, namely June 2022 to May 2023.

Most of the increase in borrowing was through the NTBs auctions conducted by the CBN, which also constituted 66 per cent of FG’s domestic borrowing during the period.

Borrowing details

According to data from CBN, FG’s borrowing through NTBs rose YoY by 188 per cent to N13.235 trillion in the 12 months ending May 2024 from N4.592 trillion in the 12 months ending May 2023.

FG’s borrowing through the monthly FGN Bond auctions, which constituted 32.8 per cent of total domestic borrowing during the period, rose, YoY by 42 per cent to N6.476 trillion in the 12 months ending May 2024 from N4.537 trillion in 12 months ending May 2023.

FG’s borrowing through Sukuk Bonds, which accounted for 1.7 per cent of total domestic borrowing during the period, rose, YoY by 169 per cent to N350 billion in the 12 months ending May 2024 from N130 billion in the 12 months ending May 2023.

FG’s domestic borrowing through FGN Savings Bonds accounted for 1.5 per cent of total borrowing during the period, also spiked, rising YoY by 116 per cent to N29.17 billion in the 12 months ending May 2024 from N16.07 billion in the preceding 12 months ending May 2023.

Interest rate hike

Among other things, the 117 per cent YoY increase in FG’s domestic borrowing in the 12 months ending May 2024 was driven by investors’ response to the high interest rate regime during the period following hike in the Monetary Policy Rate, MPR by the CBN.

Analysis showed that the average MPR rose to 20.32 per cent in the 12 months ending May 2024, representing 4.11 percentage points increase from 16.21 per cent in the preceding 12 months ending May 2023.

As a result, the average interest rate on NTBs rose to 9.1 per cent in 12 months ending May 2024, representing 5.1 percentage points from 4.0 per cent in the preceding 12 months ending May 2023.

In the same vein, the average interest rate on FGN Savings Bond rose to 17.91 per cent at the May 2024 auction from 10.89 per cent at the May 2023 auction.

Analysts’ comments

Notwithstanding the influence of the high interest rate regime, analysts expressed concern that the sharp rise in FG’s borrowing from domestic investors is harmful to the private sector as it makes it costlier for businesses to borrow.

The analysts were however divided on the impact of the borrowings on inflation.

Commenting, Co-Founding Partner, Comercio Partners, a Lagos based investment bank, Nnamdi Nwizu, said: “The increase in borrowing by the government means that there will be more spending by the government, which will have a huge impact on inflation as it will drive demand for goods. Governments are always the largest spender in the world, so the more money they spend, the higher the attendant inflationary pressure. Note also that since they are borrowing at record levels, it means that when they are servicing the debt, they will put a lot more funds in the hands of the public.

“Lending to the Private Sector has been impacted with corporates issuing bonds and Commercial Papers at record levels.

“Whilst we continue to see a lot of issuances by the private sector (above 25% yields), we also see that the smaller corporates are struggling as the government is crowding them out. If an investor can invest in one year risk-free NTBs at 25% yields, they would naturally ask for a premium when lending to the private sector. How many companies can afford to borrow at these steep levels and still be profitable? Also, the higher lending rates will lead to inflationary pressures as the corporates have to increase prices to cover for the higher borrowing rates.

“With respect to fiscal policy, we are yet to see the borrowing by the government have an impact on fiscal policy. Yes, we have the Coastal roads being built, but we would like to see more with regards to policies to help increase production output in the economy. Also, we expect to see a significant increase in debt servicing costs, factoring in the higher rates and increase in domestic borrowing.

“With respect to monetary policy, whilst the Central Bank continues on its hawkish trend, we expect pressure from the government on the Central Bank as its debt service costs rise. The government cannot afford to borrow at these levels for an extended period of time. Government spending can also lead to more pressure on the currency as it means more Naira available to chase the greenback.”

Similarly, Head of Equity Research, FBN Securities Limited, Tunde Abidoye, said: “Government borrowing could potentially fuel inflationary pressures. In addition there’s an indirect effect on exchange rates. Also, there’s the crowding out effect for private sector lending. As it is, not many businesses can afford to borrow at the elevated interest rate. Finally, the monetary policy response to all this may be to continue to raise interest rates in a bid to tame the spiraling inflation.”

However, Chinazom Izuorah, Senior Associate, Investment Brokerage, differed on the impact of the FG’s domestic borrowing on inflation, though she also noted it will make it costly for businesses to borrow.

She said: “The Federal Government’s domestic borrowing program has not changed in the last year. The government’s calendar for offering FGN bonds, savings bonds and Treasury bills remains consistent and in line with historical practice.

“The reason for the increase in value is due to the increase in MPR and the knock-on effect on interest rates for the FGN securities.

“At interest rates of 17% and above, the government’s instruments are more attractive than in the previous year and consequently there is increased interest and participation. This is also consistent with the CBN’s objective of reducing inflation by mopping up liquidity. In simple terms, higher interest rates create an incentive to save.”

She stated the impact of this in terms of inflationary pressure is that with the greater incentive to save, there will be less money in circulation which is crucial to limiting inflation.

“In terms of lending to the private sector: Higher interest rates on government securities, which are considered the safest instruments, is a disincentive to lending to the private sector, which is considered riskier.

“Money tends to fly to safety. Banks, other financial institutions and fund managers have little incentive to take-on riskier assets when they can get attractive returns lending the funds to the government.

“On the fiscal policy front the government uses the funds raised through the issuance of securities to fund the national budget. The present administration has earmarked a significant portion of the budget to capital expenditures, portions will also be used to fund recurring expenditures and debt service.

“The higher interest rates mean that the government is paying a higher rate to investors.

“However domestic borrowing is more sustainable than external borrowing as the monies are borrowed in the local currency. Governments look to external borrowing due to lack of capacity to meet funding needs from the domestic market.

“There is a lot of benefit to having a financially literate citizenry and high domestic savings rates. The most critical issue for Nigeria and Nigerians is that monies are judiciously employed for the purposes they are raised and projects executed efficiently.

“The increase in domestic borrowing values is indicative of the success of the administration’s monetary policy positioning.

“It can be assumed that the sustained rise in the MPR has been favorably received by the market and has stimulated increased participation in the domestic bond market.”

 

The Nigeria Police Force, while acknowledging the recent announcement by organized labour regarding the intention to embark on a nationwide strike action and understanding the right of organized labour to engage in such actions to advocate for the interests of all workers, wishes to emphasize the importance of adherence to the existing laws governing such activities; and calls for caution to prevent a breakdown of law and order within the country.

In light of the Federal Government's recent declaration that the planned strike is illegal and premature, the Nigeria Police Force views this action as a potential catalyst for increased tension and political instability.

The NPF hereby urges organized labour to proceed with the ongoing deliberations at the Tripartite Committee, which is focused on determining a new minimum wage, and shelve the planned strike as such decision is essential to prevent untold hardships on members of the public and maintain order and stability within our country.

The Nigeria Police Force assures the public that ample deployments have been made across the country to ensure that citizens can go about their lawful duties without hindrance. Therefore, all members of the public are encouraged to remain calm and continue with their lawful daily activities, while organized labour is urged to act responsibly and in accordance with the law, prioritizing dialogue and legal avenues to resolving the existing grievances.

 

ACP OLUMUYIWA ADEJOBI, mnipr, mipra, fCAI,

FORCE PUBLIC RELATIONS OFFICER,

FOR: INSPECTOR-GENERAL OF POLICE,

FORCE HEADQUARTERS,

ABUJA

The leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have insisted on proceeding with the indefinite strike action scheduled to commence on Monday, 3rd June, 2024.

This is as the leadership of the National Assembly led by Senate President Godswill Akpabio called for a return to the negotiation table.

Naija News recalls that the labour leaders and the government delegation held a meeting on Sunday as part of last-minute efforts to avert a nationwide strike over the new minimum wage.

However, the organized labour said after the meeting, which lasted for about four hours, that their planned indefinite strike action over the new minimum wage would proceed as scheduled.

The unions added that they would meet and discuss the appeal made by the leadership of the National Assembly on the need to suspend the proposed strike and allow for more dialogue with its organs before taking a final decision.

During the meeting, the President of the NLC, Joe Ajaero, underscored the essence of the meeting, stating, “We are not fighting for a starvation wage but a living wage.”

Ajaero highlighted that the government must recognize the workers as the backbone of the nation. These workers are also relatives and constituents of the lawmakers and ministers present.

He emphasized the urgent need for a wage structure that enables Nigerian workers to meet the escalating cost of living without undue hardship.

Meanwhile, TUC’s leader, Festus Osifo, pointed out the exacerbating economic difficulties faced by Nigerians, particularly over the past year, which have complicated the process of negotiating fair remuneration for workers.

In a crucial meeting held in Abuja, leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) convened with top government officials and the leadership of the National Assembly in a last-ditch effort to forestall the indefinite nationwide strike slated to commence on Monday, June 3.

This intervention by the National Assembly seeks to bridge the impasse between labour unions and the federal government over the contentious issues of a new national minimum wage and the recent increase in electricity tariffs.

The President of the NLC, Joe Ajaero, underscored the essence of the meeting, stating, “We are not fighting for a starvation wage but a living wage.”

Ajaero highlighted that the government must recognize the workers as the backbone of the nation. These workers are also relatives and constituents of the lawmakers and ministers present.

 

He emphasized the urgent need for a wage structure that enables Nigerian workers to meet the escalating cost of living without undue hardship.

Meanwhile, TUC’s leader, Festus Osifo, pointed out the exacerbating economic difficulties faced by Nigerians, particularly over the past year, which have complicated the process of negotiating fair remuneration for workers.

Osifo noted that the dire economic conditions demand immediate and thoughtful responses to prevent further deterioration of workers’ welfare.

 

The meeting, initiated by the National Assembly, aimed at bringing both sides to a consensus to avoid the impending strike which could cripple economic activities across the nation.

In compliance with an earlier directive of an indefinite nationwide strike by organised Labour, the aviation unions have directed members to withdraw services across airports in Nigeria.

THE WHISTLER had earlier reported that NLC and its counterpart, the Trade Union Congress (TUC), declared an indefinite nationwide strike starting Monday, June 3, 2024.

The unions confirmed the strike in a joint statement signed by the General Secretaries National Union of Air Transport Employees (NUATE) Ocheme Aba; Air Transport Services Senior Staff Aassociation of Nigeria (ATSSSAN) Frances Akinjole; Secretary General Association of Nigerian Aviation Professionals (ANAP) Olayinka Abioye and General Secretary the National Association of Aircraft Pilots and Engineers (NAPE) Olayinka Abioye.

The statement reads, “In compliance with the directive from our labour leaders, Nigeria Labour Congress and Trade Union Congress of Nigeria-we hereby inform the general public, aviation service providers, airline operators, aviation businesses and all aviation workers nationwide that starting from 0000hrs of June 3, 2024, all services at all Nigerian airports shall be fully withdrawn till further notice.

“Being not oblivious of the fact that many international flights to Nigeria are already airborne, the strike action will commence at international terminals on 4th of June, 2024.

“All aviation workers should recognize the seriousness of this struggle and comply unfailingly. All Branch officers of our unions shall ensure full compliance at all airports.”

Former Head of State, General Abdulsalami Abubakar, has said that military coups cannot take place without the assistance of politicians and civilians.


Abdulsalami stated this in an interview with Sun Newspaper on Sunday. He noted that it is the political field that allows any military man to take over power.


In his words: “You see, whatever happens, it must be the political field that allows any military man to take over. When you are in government and there is no equity and justice, certainly this brings problem.

MAY DAY: Labour gives FG May 31 deadline on Minimum Wage0:00 / 1:00
“You have a political party and even in the political party one belongs to, there is no democracy. So, certainly, you will expect some quivers, some quarrels to come out and if they are not handled amicably, certainly, this will result to military takeover.


“Remember there is no military man that takes over without the connivance and assistance of politicians and civilians”.

The Kogi State Government has announced the rescue of the remaining eight kidnapped students of Confluence University of Science and Technology, Osara (CUSTECH) Bringing the numbers of rescued students to 30.

 

Recall 32 students were abducted inside the school premises early last month while preparing for the commencement of their exams. Four of the abducted students were first rescued, followed by another 16, and two students who escaped on his own, before the latest 8 that were rescued.

 
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Two of the abducted students were however killed last week by the abductors following the state government decision not to pay ransom for the victims, but rather embarked on ‘kinetic and non kinetic” onslaught against the kidnappers.

This latest development was revealed on Sunday in a statement by the state Commissioner for Information and Communication, Kingsley Fanwo.

 

“The Kogi State Government has announced the rescue of the remaining eight kidnapped students of Confluence University of Science and Technology, Osara.

“The Governor has directed full support towards the recovery of the students and their parents, while modalities are being put in place to make Kogi safer for all.

“The Government of Kogi State expresses profound gratitude to President Bola Ahmed Tinubu for directing the mobilization of resources to ensure the rescue of the kidnapped students.

“We also thank the National Security Adviser immensely for his commitment to the release of the students and the general security of the State.

“The Chief of Army Staff, the Chief of Naval Staff, the Chief of Air Staff, the Director General of DSS, the Inspector General of Police and all the officers and men of the Armed Forces that put in their best as well as the Pilots, did a wonderful job to support us in reuniting the kidnapped students with their families.

 

“The Kogi State Command of all the security agencies, Police, DSS, NSCDC and our local hunters are also highly appreciated for their efforts towards this feat.

“Governor Ahmed Usman Ododo also expresses immense gratitude to his Kwara State counterpart, Governor AbdulRahmam AbdulRazak for his personal commitment, cooperation and support towards the success of the operation that led to the rescue of the remaining kidnapped students.

“The Kwara State Governor showed the reason he is effectively leading the Nigerian Governors Forum. His actions have also reinforced the Kogi/Kwara cooperation and unity of purpose.

 

“Now that the remaining students have been rescued, our administration will continue the drive to recalibrate our security architecture and pay an uncompromising attention to the Safe School Initiative.

“As the State with the lowest out of school children in the North, we have put structures in place to keep our schools safe to ensure every child is not deprived of his or her right to education.

 

“Kogi has domesticated the Child Rights Act and we will defend the right of our children to quality education. In Kogi State, education is free up to the Secondary School level.

“We also pay the registration fees for our students to write all internal and external examinations with a budgetary allocation that is way above the UNESCO benchmark for education. We do all of these to educate our children and make them responsible contributors to the economy of Nigeria.

“We urge our citizens to always volunteer intelligence to security agencies to enable them to prevent crime. This is safer, cheaper and better for us all.

“All of us must come together to defeat banditry, kidnapping and any form of criminality in our society.”

The Federal Workers Forum (FWF) has announced its complete endorsement of the indefinite nationwide industrial action declared by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), set to begin on Monday.

The NLC and TUC have vowed to commence an indefinite strike Monday to protest against the government’s failure to conclude and pass into law a new National Minimum Wage Act and reverse the hike in electricity tariff to N65/kWh.

 

The workers’ forum gave its full backing to the industrial action in a communique issued at the end of an online meeting of federal workers nationwide on Saturday and released to the media on Sunday.

Titled ‘President Tinubu: pay up three months wage award arrears, federal workers will ensure full compliance with the indefinite national strike, resign now if you cannot pay a living wage, don't plunge Nigeria into chaos,’ the communique was signed by its National Coordinator (FWF), Comrade Andrew Emelieze.

Describing the disposition of the government towards the workers as very disappointing, the forum said: "It is obvious government is playing games on the new national minimum wage, this is truly very mindless and most insensitive."

The communique reads in part "We the federal workers are particularly surprised that the federal government is treating us this way. As the federal workforce and the engine room of governance, if truly government cares; federal workers should not be passing through the hardship and ordeal we are currently subjected to.

"As patriotic citizens, the federal workers have tried coping with the situation but it has been very difficult surviving the harsh economy orchestrated by the unilateral removal of fuel subsidy by President Bola Ahmed Tinubu. Prices of goods and services have increased by over 300%. Our national currency has been badly devalued. Federal workers now find it very difficult to feed and survive in Nigeria.

"Most unfortunately, government has stopped the payment of the ₦35,000 wage award in the month of February to the federal workers. It is shameful that government now owes the federal government workers three months’ wage award. Government is also owing several arrears of allowances, promotion arrears and several other monies owed the federal workers.”

The forum, however, declared that federal workers “cannot continue suffering unnecessarily, we have endured this hardship enough”.

It said, "The federal government should pay up three months wage award and other arrears of payment owed the federal workers.

"That the federal government is not permitted to borrow any amount from our contributory pension fund.

"We are in total support of the indefinite national strike action called by labour. Federal workers should ensure full compliance and complete shutdown of all federal government secretariats nationwide.

"That Mr President and any state governor who cannot pay a living wage should resign.

"That if after five working days from the commencement of the indefinite strike, and government is not bulging, labour should lead the workers to occupy the three arms zone and state government houses nationwide.

 

"We call for solidarity and support from the Nigerian people."

Members of the Judiciary Staff Union of Nigeria (JUSUN) have initiated the mobilization of their members in preparation for the nationwide protest declared by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

This was contained in a press statement issued on Saturday by Comrade M. J Akwashiki, JUSUN General Secretary and obtained by SaharaReporters.

The statement reads: “Following a declaration of industrial action by NLC and TUC, beginning from Monday 3rd June 2024 due to the inability of government to conclude the negotiation of the new National Minimum Wage and refusal to reverse the increase in electricity tariff, I am directed to inform you to commence mobilisation ahead of the action.

“The action will start midnight on Sunday nationwide, so all branches /chapters chairmen and secretaries of JUSUN are expected to ensure strict compliance to this directive.


“All vice presidents of our great unions are to monitor their respective zones to ensure compliance with the total shut down of all Courts and Judicial Institutes across Nigeria.

“NOTE that the nationwide action is to ensure governments (a) Agree on a new national minimum wage and subsequently pass it into law before the end of this month as they were notified (b). Reverse the hike in electricity tariff without consulting the stakeholders as required by the Law to N225/kwh back to N66/kwh. (C) Stop the apartheid categorization of Nigerian electricity consumers into bands.”

SaharaReporters had reported how the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) declared a nationwide strike beginning from Monday, June 3, 2024 over the tripartite committee’s inability to agree on a new minimum wage.

The President of the TUC, Festus Osifo, had announced the strike at a joint news conference with the leadership of the NLC in Abuja on Friday.

According to the labour leaders, the decision follows the expiration of an earlier request to the Federal Government to conclude all negotiations for a new minimum wage before the end of May.