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Labour’s wage demand to cost FG over N11trn yearly
The federal government’s wage bill will almost double at the very least if the organised labour doubles down on the push for a 20-fold increase in the minimum wage.
With the proposed minimum wage of N615,000, the government’s personnel costs for 1.5 million workers will rise from about N7 trillion which it currently stands to N11 trillion.
Ben Akabueze, the director general of the budget office of the federation, had said the government’s personnel cost was over N5 trillion, with 1.5 million workers under the federal government’s payroll.
The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) are demanding that the country’s minimum wage be increased by 1,950 percent from N30,000 to N615,000.
The Union says it arrived at the minimum wage recommendation after painstakingly computing the monthly cost of living of Nigerian workers, with food, transportation taking a chunk of the expenses.
According to a “cost of living estimate” released by the NLC, it will cost a Nigerian worker N9,000 to feed for 30 days, amounting to N270,000.
Each worker is also projected to spend at least N110,000 on transportation in a month.
Meanwhile, the federal government has proposed N48,000, leading to a battle royale between the organised labour and the government.
It is not however clear if the government is prepared to shift grounds, as the labour unions have continued to insist on N615,000 minimum wage, giving states who are yet to implement the N30,000 wage two weeks ultimatum.
Many analysts as well as other stakeholders have noted that while the pay increment is necessary given the high cost of food, accommodation, energy and other basic needs, the proposed wage by NLC/TUC may not be feasible.
As it stands, the federal government may need to raise a supplementary budget to accommodate any wage review, a recent report by the International Monetary Fund shows.
The IMF noted in its latest country staff report for Nigeria that the negotiated amount may surpass the budgeted amount in the original 2024 budget.
Olu Fasan, an author and social commentator in a column published by BusinessDay, argued that in many countries, the focus has shifted from the minimum wage to the living wage.
He maintained that minimum wage impoverishes workers and entrench a phenomenon known as in-work poverty, where people are in paid jobs but still can’t make ends meet. He advocated for a living wage as it is the only “antidote” to poverty.
On the proposal of the organised labour, Fasan noted that the demand is not feasible but proposed N100-120,000 as a decent minimum wage.
“Of course, the N615,000 per month that the labour unions demand is unreasonable. However, given that the government provides no basic amenities for the people and considering the limited coverage of any living wage, it’s hard to disagree with something within the range of N100,000–N120,000 per month,” he said.
Nigeria’s minimum wage lowest among selected countries
Nigerian workers are paid a pittance relative to what their peers in Mexico, Indonesia and Turkey get as their minimum wage.
At the end of every 26 working days, a low income earner in Turkey earns $578, 25 times more than what a Nigerian receives. Workers in Mexico and Indonesia earn $369.5 and $316 respectively.
Turkey is able to pay such an amount because its government revenue to GDP ratio outstrips that of Nigeria, which means the Turkish government is richer than Nigeria.
According to data from the International Monetary Fund (IMF), Turkey’s revenue as a percentage of GDP stood at 26.41 percent in 2022, Mexico’s was 24.2 percent but Nigeria’s pales at 8.79 percent, which explains the low wages in Africa’s most populous nation.
In Africa, Nigeria’s minimum wage still cannot match what a South African worker earns nor what a low income earner gets in Egypt.
The lowest a worker can earn in South Africa is $242, over 10 times higher that what is earned in Nigeria. The country’s government gets 27.75 percent as a share of its GDP compared to the low revenue generated in Nigeria.
Adeola Adenikinju, the president of Nigerian Economic Society, said getting a wage review requires that both the government and labour unions map out certain objective criteria.
The professor of Economics said that in arriving at a minimum wage, one of the criteria to look out for is the cost of living and the level of inflation in the country.
Additionally, he said the level of productivity of the nation is another factor that must be considered in a wage review.
He maintained that another factor in arriving at a new minimum wage is affordability. Adenikinju argued that even with the rise to N30,000 in 2018, some state governments still cannot afford to pay.
“There should be some metrics used in arriving at a new minimum wage. You need some objective criteria that must be summed up to 100%. By how much has inflation, productivity and government budget risen to make up a new minimum wage,” NES president said.
[BusinessDay]
Tinubu: May 29 Anniversary ‘ll Be Low-key, Says Federal Gov’t
The minister of information and national orientation, Alhaji Mohammed Idris, has said that President Bola Tinubu’s first year anniversary in office would be low-key in line with his policy of prudent management of resources.
Idris stated this on Wednesday in Abuja during a ministerial press briefing heralding the one year anniversary of President Tinubu administration slated for May 29, 2024.
He noted that the move was in line with Tinubu’s desire to serve the country and efficiently use resources for the good of all Nigerians.
He said, “The first anniversary will be low-key, there will be no celebration, it will be a sectoral presentation by ministries.
“This is in line with Tinubu’s administration to ensure efficient and judicious use of resources to deliver dividends of democracy to citizens.
“The president has directed that useful information should be provided in an honest, timely, and consistent manner.
“Members of the media are expected to report honestly, responsibly, and with a deep sense of patriotism. The essence of the media is to inform the people and hold government accountable.
“Thus, over time, the ministry of Information and National Orientation finds it worthy to always brief the media and people on what the federal government is doing.”
The minister also charged media practitioners to do their job with deep sense of responsibility and patriotism.
He reiterated that, as part of the ministerial briefing, ministers of various ministries would begin present their ministerial scorecards on Thursday, May 23, as part of the first anniversary of the administration.
[Leadership]
Abuja Abduction: 9 Residents Still Missing – Relatives
Nine of the about 20 people abducted from Dawaki community in the Bwari Area Council of the Federal Capital Territory FCT are still missing, families of the victims told the Daily Trust Tuesday.
But the FCT Police Command said the claims were not true, insisting that only eight people were abducted and all of them have been rescued.
Relatives and neighbours of the victims told Daily Trust during a follow up visit, that nine of the abducted victims were still missing.
This newspaper had on Tuesday reported that 20 people were abducted from around the Fulani junction in Dawaki community during a siege on Sunday.
Dawaki, located opposite the Gwarinpa District, along the Abuja-Kubwa Express Way, is home to thousands of middle- class workers, among other residents.
A resident, who craved anonymity, said when they were fleeing with their victims, they stopped at a nearby herders’ helmet on the outskirts and abducted two people.
Another resident, Hosea Christopher, said five people were able to escape while being taken out of the community, with additional five others escaping around the Usuma Dam area along the Bwari way, when the gunmen had a fierce confrontation with the operatives of the DSS.
He added that the remaining victims obeyed the gunmen by following them to their hideouts deep into the bush.
‘Some of our loved ones still in the bush’
A resident, Usman Uthman, told one of our reporters that two people abducted from their home were among the rescued persons.
“They were brought back to the community on Monday afternoon by the soldiers,” he said.
He, however, said one other person abducted from the house, a female, was still missing.
Murna Lawan, another resident, said one-person from her home, too, named Peter, was yet to return.
She said that a lady named Blessing and one Francis, who were also abducted, were yet to return.
A resident, Nura Muhammad, who escaped when being led to the bush, said there was confusion about the whereabouts of one of the abducted women.
He said, ‘’It was learnt that she was rescued, however her family have visited various security agencies with no information about her whereabouts.’’
It’s not true – CP
When contacted last night, the FCT Commissioner of Police, Benneth Igweh, said it was not true that some of the abducted people were still at the kidnappers’ den.
When our reporter told him that it was families of the victims that confirmed that some of their loved ones have not yet returned, he simply said, “hold on…” and ended the call.
Our correspondents waited up till 10.15 pm waiting for an update on the development before sending this part of the story.
Earlier in the day, the police commissioner had reassured that the nation’s capital was safe and secured against kidnapping and banditry.
The CP said this during a visit to Media Trust Group Headquarters in Abuja, where he said he had taken the fight to the bandits’ camp in the bushes and mountains from where they operate.
The CP was reacting to the newspaper’s story that bandits abducted 20 in the Dawaki community in the FCT.
He said, “Abuja is now very safe, and it will continue to be safe. We have done everything possible to ensure the safety of Abuja because we know the terrains very well. We know the terrains of the bandits, and we know their modus operandi. That is why we have succeeded in making Abuja safe. We don’t care how the arm robbers and the bandits feel, but we are telling them that we are dominating everywhere including the bushes where they move. I have taken over the mountains. So that is why anywhere they enter, we must conquer them.”
Also speaking about the porous nature of the FCT neighbourhood, the CP said, “You know we have neighbors that are crime prone, from Kaduna to Niger to Nasarawa to Kogi. We are aware of our boundaries, but we are doing all it takes is to ensure the safety of everybody in Abuja, and I want to assure and inform every resident that we are on top of every situation. You can see the safety now, everything is working. I want to appreciate the effort of the IGP and the Minister of FCT. We are getting it right in Abuja, and we will continue to get it right.”
While appreciating the citizens for cooperating with them, he said, “We have been telling people, when you see something, say something. It is when you say something that we will do something. I want to thank the residence and indigenes of FCT. They have been giving us useful information and it has been useful for our successes. They’ve have started trusting the security agencies, especially the police.”
He added that, “People were complaining of one chance, they don’t ask about that any more. People were complaining about kidnappers, they don’t ask about kidnappers any more. People were complaining about bandits, but how many bandits have invaded Abuja since we took over? This is due the pro-active measures we brought in place that are bringing the safety we are seeing.”
The CP also applauded the IGP for working to bring more man power to the system, and as well as trying to bring some sophisticated gadgets for the police, which he said will help them in maintaining the tempo.
[DailyTrust]
Champions League venue for 2026 final confirmed
The Champions League final in 2026 will be played in Budapest, Hungary.
UEFA confirmed this on Wednesday.
The European football governing body also delayed giving the 2027 final to Milan amid uncertainty over the future of San Siro.
The Puskás Arena and San Siro were the venues for the two finals scheduled to be awarded.
This year’s final between Real Madrid and Borussia Dortmund will be played on June 1 at Wembley Stadium in London.
Bayern Munich’s Allianz Arena will host next year’s showpiece event.
[DailyPost]
I remain speaker of Cross River Assembly, Ayambem insists
The embattled speaker of the Cross River State House of Assembly, Elvert Ayambem, has stated that he remains the Assembly’s speaker, despite being impeached by seventeen members who had already signed a notice of his impeachment.
The motion for his removal was moved on the floor of the House by the member representing Calabar South 1, Effiong Ekarika, and seconded by Charles Omang.
However, he described the process as unlawful in a statement released on Wednesday by his chief press secretary, Matthew Okache.
Okache said that Akarika, the person who proposed Ayambem’s impeachment, had disturbed the meeting by “inviting hoodlums to enter the chamber.”
The statement read: “The Cross River State House of Assembly has been alerted to false news reports that the Speaker, Elvert Ayambem, has been impeached.
“To be clear, the speaker of the Cross River State House of Assembly is, without a doubt, Elvert Ayambem. He is in the current position. What happened earlier today (Wednesday) during the plenary, when Effiong Akarika, a member representing Calabar South 1, disrupted the session by inviting hoodlums to enter the chamber, is a ridiculous charade with no constitutional basis.
“The House of Assembly is not aware of any impeachment notices being served to anyone before the frivolous act as witnessed at the chambers. The alleged impeachment and replacement are speculative, and the general public is urged to disregard fake news and dismiss any notion of a crisis. The status quo is that Elvert Ayambem is the Speaker of the House of Assembly.”
[TheNation]
British PM Sunak announces July 4 election date to determine who governs the UK
British Prime Minister Rishi Sunak on Wednesday set July 4 as the date for a national election that will determine who governs the U.K., choosing a day of good economic news to urge voters to give his governing Conservatives another chance.
“Now is the moment for Britain to choose its future,” Sunak said as he stood in heavy rain outside the prime minister’s residence.
Sunak’s center-right party has seen its support dwindle steadily after 14 years in power. It has struggled to overcome a series of crises including an economic slump, ethics scandals and a revolving door of leaders in the past two years.
The center-left Labour Party is strongly favored to defeat Sunak’s party.
The prime minister’s announcement was nearly drowned out by protesters blasting “Things Can Only Get Better,” a Labour campaign song from the Tony Blair era.
Bookies and pollsters rank Sunak as a long shot to stay in power. But he said he would “fight for every vote.”
Sunak stressed his credentials as the leader who saved millions of jobs with support payments during the COVID-19 pandemic and got the economy under control. He said the election would be about “how and who you trust to turn that foundation into a secure future.”
The election will be held against the backdrop of a cost-of-living crisis and deep divisions over how to deal with migrants and asylum seekers making risky English Channel crossings from Europe.
The announcement came the same day official figures showed inflation in the U.K. had fallen sharply to 2.3%, its lowest level in nearly three years on the back of big declines in domestic bills.
The drop in April marks the greatest progress to date on five pledges Sunak made in January 2023, including halving inflation, which had climbed to above 11% at the end of 2022. Sunak hailed the new figure as a sign his plan was working.
“Today marks a major moment for the economy, with inflation back to normal,” Sunak said Wednesday ahead of the election announcement. “Brighter days are ahead, but only if we stick to the plan to improve economic security and opportunity for everyone.”
Voters across the United Kingdom will choose all 650 members of the House of Commons for a term of up to five years. The party that commands a majority in the Commons, either alone or in coalition, will form the next government and its leader will be prime minister.
Labour leader Keir Starmer, a former chief prosecutor for England and Wales, is the current favorite. The party’s momentum has built since it dealt the Conservatives heavy losses in local elections earlier this month.
The Conservatives have also lost a series of special elections for seats in Parliament this year, and two of its lawmakers recently defected to Labour.
Following on his party’s successes in the local elections, Starmer, 61, last week announced a platform focused on economic stability after years of soaring inflation as he tries to win over disillusioned voters.
He also pledged to improve border security, recruit more teachers and police and reduce lengthy waiting lists at hospitals and doctors′ clinics across the country.
Elections in the U.K. have to be held no more than five years apart, but the prime minister can choose the timing within that period. Sunak, 44, had until December to call an election. The last one was in December 2019.
Many political analysts had anticipated that a fall election would give Conservatives a better chance of maintaining power. That’s because economic conditions may improve further, voters could feel the effect of recent tax cuts, interest rates may come down and a controversial plan to deport some asylum-seekers to Rwanda — a key policy for Sunak — could take flight.
Sunak had been noncommittal about the election date, repeatedly saying — as late as lunchtime on Wednesday — that he expected it would be in the second half of the year.
Although inflation has fallen, Sunak’s other promises — to grow the economy, reduce debt, cut waiting lists to see a doctor at the state-run National Health Service and stop the influx of migrants crossing the English Channel — have seen less success.
He has struggled after entering office following the disastrous tenure of Liz Truss, who lasted only 49 days after her economic policies rocked financial markets. Truss had been chosen by party members after Boris Johnson was ousted over a series of ethics scandals.
NEWSNOW
I support Abuja plaza closure until soldiers attackers’ arrest — Ex-CDS Irabor
A former Chief of Defence Staff, General Lucky Irabor (retd.), has backed the military for shutting down Banex Plaza in the Federal Capital Territory, Abuja, over the recent attack on some soldiers by hoodlums.
The former military boss said the plaza should remain closed until those who attacked the soldiers are arrested and brought to justice.
The retired general explained that an attack on any uniformed man remains an attack on the state and as such, Nigerians must condemn the act.
Speaking on Arise TV on Tuesday night, the former military boss said the soldiers would have been lynched if not for the swift intervention of policemen.
He said, “As a Nigerian who has served in the armed forces, of course, retired now, and at the level I did, it would be inappropriate if I see what is going wrong and I could not talk about it. So, from that context, I would say the Bannex Plaza attack is a sad one. Sad one in the sense that when you see soldiers in uniform, whether armed or not, you raise your hands against that individual. Besides being a soldier, for any uniformed person, as long as he is an agent of the state, any attack on him is an attack on the state.
“As so, every Nigerian of goodwill must condemn such act. As for me, I join to support the closure of the plaza for as long as it takes to have everyone responsible for that dastardly act to be brought to justice. This is because if we fail to do so, then we’ll be calling for anarchy.
“The only men who are sacrificing their lives to ensure our collective goods are men of the armed forces, police, and other security agencies. And on a slight provocation, they are now attacked and if not for the policemen and other private individuals who rescued the soldiers, then we would have witnessed Okuoma II which of course, does not speak good of us.”
He, however, added that Nigerians should be sensitised on the sacrifice being made by the armed forces and why there should be a mutual understanding between the military and the populace.
“In setting agenda for this discussion, it must be to the extent that the populace should be made to understand the place of national security and the responsibility of each and every one of us in preserving the sanctity that seeks to make us live in a very good environment,” Irabor said.
The PUNCH reports that the Army shut down the plaza following an attack on some soldiers last weekend, which they claimed was carried out by a group of hoodlums.
The Army, in its defence, said it temporarily shut down activities in the plaza “to ensure that the hoodlums who have been using the Banex neighborhood as a sanctuary to pose a security threat to the Federal Capital Territory were apprehended.”
It added that it had also commenced an investigation to prevent “such unwarranted attacks on our personnel and other security operatives, as has been observed in other areas, such as the unfortunate attack in Okuama.”
[Punch]
Labour reduces demand on Minimum Wage to N500,000
…FG adamant of N54,000, Private sector makes N57,000
IN a bid to shift ground so as to ensure speedy conclusion of negotiation on new national Minimum Wage, the Organised Labour at the ongoing Tripartite Committee on the National Minimum Wage meeting has reduced its demand from N615,000 to N500,000.
A source at the meeting told Vanguard that the government team is adamant about N54,000, complaining of non-availability of fund and the inability of the private sector to pay.
But the private sector has made additional N3,00 taking up its offer to N57,000 from the initial N54,000.
According to the source, “Government has agreed that NLC is using evidence-based presentation. But they argue that eight states are not paying or not fully implementing the 2019 minimum wage.”
The source further said, “Government is talking of non-availability of fund. They are also talking about the inability of the private sector to pay.”
On Labour shifting of ground by the organised labour, the source said, “Labour has been requested to shift in response to the Government. They complied and came down to N500,000.”
He said that the Imo State Governor, Hope Uzodimma was present at the meeting.
“”The Imo State Governor has stepped in. He is not a member of the committee but it is good that there is at least a governor, as the six governors in the committee have been regularly absent.”
[Vanguard]
‘Africa needs contextual system’ — Obasanjo insists on rethink of liberal democracy
Former President Olusegun Obasanjo says Africa needs a form of “contextual democracy” that considers the past experiences of Africans and their heritage.
Obasanjo spoke in Abuja on Wednesday at a summit on the state of democracy in Africa.
The summit was organised by the Shehu Musa Yar’Adua Foundation in partnership with the Olusegun Obasanjo Presidential Library.
The former president, who was the keynote speaker at the summit, said democracy in Africa is breeding dictatorial tendencies and disregard for the interests of the majority.
Obasanjo argued that democracy is not a “static phenomenon,” noting that there is a need to rethink the system to reflect the historical and cultural realities of the continent.
He said Western liberal democracy cannot resolve the governance challenge on the continent.
“Africa’s past and current attempts at democratic governance prove that Western liberal democracy, lock, stock, and barrel, cannot resolve Africa’s governance challenge,” Obasanjo said.
“There is a great need to conceptualise a democracy that adapts to Africa’s historical, cultural, and current realities; a modality that works for African people.
“Perhaps the first step in achieving this is to prevent the privatisation or capturing of the state by our power elites.
“Yes, liberal democracy prescribes elections, but what difference does it make when the power elite rigs the electoral process through policies that make it impossible for the people to choose wisely even in a free and fair election?
“In Nigeria, as in many African countries, money has taken centre stage in elections such that even if elections are free and fair, voters will consider and choose candidates that guarantee their ‘stomach infrastructure’ over and above their more competent choices.”
The former president added that a form of democracy that places “more value on the electoral process than on the end product of the process” cannot be the only option for Africa.
“In all these, we must put our heads together, Africans and non-Africans alike, to devise a form of contextual democracy that will take account of our past experiences and the experiences of others to get a system that is sufficiently democratic, efficient, effective, make use of best within the community and society, leaving nobody out and that will deliver fast to all without exception.
“As we rethink the application of Western liberal democratic models to our continent, let us do so with humility, wisdom, and an unwavering commitment to the welfare of our people.
“We must learn from the successes and failures of others while crafting a uniquely African path to democracy that honours our rich heritage and meets the aspirations of our citizens.”
Obasanjo was elected president of Nigeria in 1999 after the country returned to democratic rule from the military regime.
In the last few months, Obasanjo has been calling for a rethink of the Western form of democracy, which is being practised in many African countries.
[TheCable]
[STATE HOUSE PRESS RELEASE] President Tinubu Appoints New Chief Executive Officers Of Two Federal Agencies
President Bola Tinubu has approved the appointment of Engr. Chukwuemeka Woke as the Director-General/Chief Executive Officer of the National Oil Spill Detection and Response Agency (NOSDRA).
Furthermore, the President has approved the appointment of Dr. Adedeji Ashiru as the Managing Director/Chief Executive Officer of the Ogun-Osun River Basin Development Authority (OORBDA).
Engr. Woke, besides being an engineer, is an environmental specialist and politician. He holds a Bachelor’s degree in Chemical/Petrochemical Engineering, and had served under the Environmental, Safety, and Operations Departments of the then Nigerian National Petroleum Corporation (NNPC).
He was Chairman of Emohua Local Government Area of Rivers State and Chief of Staff, Government House, Port Harcourt, for many years.
Dr. Ashiru holds a Doctorate degree in Engineering from the Common Wealth University, UK, and has led a consortium of blue-chip companies, in addition to earning many stripes in his professional endeavour.
The President expects the new Chief Executive Officers to deploy their competencies to these critical agencies for sustainable gains and turnaround, while maintaining utmost transparency in their operations.
Chief Ajuri Ngelale
Special Adviser to the President
(Media & Publicity)