Subsidy Removal: FG mulls TUC’s demands, sets up c’ttee to review minimum wage
The Federal Government has said it will consider the list of demands from the Trade Union Congress (TUC) which includes a review of the minimum wage for workers in Nigeria. Speaking to State House correspondents after a meeting between the Federal Government and the TUC which lasted for about several hours, the spokesperson for the Federal government, Dele Alake, said that it will also look at the practicability of the demands. Among things the government is considering is tax holidays for workers. Alake said that most fundamentally, President Bola Tinubu will constitute a tripartite committee to include states and organised labour and the private sector to study the dynamics of the minimum wage augmentation with a view to reach an amicable conclusion. According to him, there is no disagreement with the Nigeria Labour Congress (NLC) over their demand for a review of the minimum wage or a return to the status quo, noting that the FG representatives will meet with the President to crystallize decisions on the demands. He added that the absence of the NLC does not translate to an isolation of the group in the discussion but that the FG is making efforts to reach them as the parties agreed to reconvene on Tuesday 24 hours before the scheduled strike by the NLC. Meanwhile, the TUC has maintained that the Federal Government, in the interest of social dialogue, revert the price of fuel while discussions continue. President of the TUC, Festus Osifo, said the union is hopeful as the Federal Government promised to look into their demands, the top of which is a review of the current minimum wage among others. “The demands are so long, they are so many. Part of it is the demand for a (review) of the minimum wage and we stated that for us, it is quite apt that the minimum today is not a living wage, as we all know. The value of the minimum wage since it was negotiated, has plummeted to a very abysmal level as it is today.” *Channels
Proposed Strike: No division in our ranks-NLC
*Says media reports, a product of mischief The Nigeria Labour Congress (NLC) has refuted reports that it is divided in the group ahead of thier planned nationwide strike on Wednesday. The union had given the federal government till Wednesday to reverse the current hike in fuel price or face mass action to protest the removal of subsidy. In a statement on Sunday, the NLC Head of Information and Public Affairs, Benson Upah, said the lead story by ThisDay Newspaper was laughable and sheer mischief. “The lead story on the front page of ThisDay of Sunday, June 4th, 2023 entitled NLC Divided as North, South-West Chapters May Shun Planned Strike , is a laughable and desperate attempt by enemies of the people to polarise Nigeria Labour Congress along ethnic or regional lines on an issue with a national spread. “Happily, this scenario only plays in their imagination as Nigeria Labour Congress continues to be the biggest pan-Nigerian organisation united by a common vision/mission and shared national values. “On the looming strike action, we want to assure that all the affiliate unions of the Congress stand together with an unshakeable resolve to prosecute, come Wednesday, except the NNPC and Government do the needful. “Whereas, primordial sentiments such as religion, region or ethnicity may be refuge for some, at the Nigeria Labour Congress, they have no place. “What counts for us are issues such as the mindless and criminal increase in the pump price of pms whose burden will be borne by the already impoverished communities of the poor across Nigeria. “The burden of this malevolent policy will not be borne by other segments of the country to the exclusion of the North or South- West. Thus, there is no reason for these regions to back out of the strike. “We do not know from where ThisDay got their story. However, if this is their way of making up for the gaps in their relationship with the new entities in power, we would say, it is rather excessive!” the statement said.
Subsidy Removal: FG, TUC in closed-door meeting
The representatives of the Federal Government are meeting with the Trade Union Congress (TUC) at the State House over the removal of fuel subsidy. This is a follow-up to Wednesday’s meeting with the organized labour which ended in a deadlock. At that meeting, the Nigerian Labour Congress (NLC) demanded that the Federal Government go back to status-quo by reversing the price of fuel before resuming negotiations with the union. In Sunday’s meeting, the federal government’s team is led by the Secretary to the Government of the Federation (SGF), Senator George Akume. Others are the Governor of the Central Bank of Nigeria (CBN), Godwin Emefie; former Governor of Edo State, Comrade Adams Oshiomhole; and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari. Also in the meeting are the Executive Secretary of the National Sugar Development Council (NSDC), Zacch Adedeji; Executive Vice President, Downstream, of the NNPCL, Yemi Adetunji; former Lagos State Commissioner for Information and Strategy, Mr Dele Alake; Hon James Faleke, among others.
We’ll no longer fix petrol prices– NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it will no longer fix prices or release templates for Premium Motor Spirit (PMS). Authority Chief Executive (ACE), Mr Farouk Ahmed, who said this at a news conference in Abuja on Friday, said that market forces would henceforth dictate prices under the liberalised market. “As far as we are concerned in the NMDPRA, this is not like before when the PPPRA fixes the price; in a deregulated market, it is the market force that dictates the price,” he said. The development was sequel to the removal of subsidy on PMS known as petrol. President Bola Tinubu had in his inaugural speech on Monday said fuel subsidy regime had ended with the commencement of his administration. Ahmed, however, said the market was now open for everybody that would import as far as they met all the requirements. “So, it is not about the Nigerian National Petroleum Company Limited (NNPC Ltd) alone. “We put the regulation in place, we make sure quality control is complied with, we make sure the product is there and we give licence to prospective importer. “We make sure we guide the operations of everyone in the sector whether at the depot or wherever the product is but we will not put a cap to say this is what the price must be,” he said. According to Ahmed, the role of the NNPC is to fix prices of the petrol it imported and not take over the responsibilities of the Authority. “In the case of the NNPC, the organisation is the sole importer at this point. We told the NNPC to recover its costs because they know how much it cost them to import the product and sell it. “Of course, we also know how much shipping, offshore, ex-depot and ex-pump are. But we cannot tell them to sell at a price because the market is deregulated,” he added. The NMDPRA boss also disclosed that the Federal Government has officially scrapped petroleum equalisation as well as the national transport allowance. He said the NMDPRA, the federal government and Consumer Protection Commission (FCCPC) would mount aggressive monitoring of activities in the downstream sector to prevent profiteering by petroleum marketers. Ahmed further disclosed that marketers are now free to source their foreign exchange anywhere around the world to import petroleum products and recover their costs without impediments. On where the importers will source their forex from, Ahmed said the CBN would not give dollar to anyone because of open market, adding that anyone willing to import should get the dollars from anywhere to import. According to him, anyone willing to open a letter of credit from any part of the world can do that to import. “That marketers can source their forex from anywhere is the beauty of the liberalised market that the NMDPRA has introduced based on the provision of the law”. Ahmed said that the market would henceforth be modulated to allow the fluidity of prices, adding that though no template spelt out the pricing components of petrol price. He said that, “based on this, the price would no longer be static rather depend on the international price of the gasoline market.
Market realities driving up petrol price – Kyari
*Says prices will normalize within two weeks The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mele Kyari, has said that the sudden hike in pump price of petrol in filling stations across the country is a reflection of the realities of the market. Despite having supplies, the filling station still went ahead to hike the price of their products. Speaking on a television program monitored by NIGERIAN ANCHOR on Thursday, Kyari said that the situation applies to all commodities and that it portrays the reality of the market. “It could have been the other way round; prices could have collapsed downwards and those holding the old stock would have to sell at lower prices to arrive at market condition. “It is not something serious or strange, this is a stock management issue and it is very typical, no one can do anything different about this. “The prices we are seeing today at our stations are the current price of the commodity. This means that prices in the market can go down at any time and of course, the market will adjust itself,” Kyari said. The GCEO however assured that the fuel hike currently being experienced will normalize in the next 2-3 weeks because competition among major players in the oil sector would force down the price of petrol. He added that the subsidy removal would allow new entrants into the market, a move he said, would aid competition and phase out monopoly. “The beauty of this (subsidy removal) is that there will be new entrants (into the market) because oil marketing companies’ reluctance to come into the market all along is the very fact of the subsidy regime that is in place. “And that subsidy regime doesn’t have a guarantee of repayment back to the those who provide the product at subsidise price and now that the market is being regulated, oil marketing companies can actually import product or even if it is produced locally, they can buy and take it into the market and sell it at its retail price. “Therefore, you will see competition, even with NNPC. And by the way, by law, NNPC cannot do more than 30 percent of the market going forward. As soon as the market stabilises, oil marketing companies will be able to come in,” he explained.
Access Bank launches French Desk
In a bid to strengthen its business relationship with France, Access Bank PLC has launched the ‘Access Bank French Business Desk’. The bank’s Chief Executive Officer, Roosevelt Ogbonna, said in a statement on Thursday that the action followed the opening of the first subsidiary of Access Bank Plc in the European Union, in Paris. Ogbonna said the Access Bank French Desk, which was in partnership with Business France, was created as a platform to connect French and Nigerian companies. He said the act would provide them with financial solutions to conduct trade and investments between both countries. The financial solutions, he said, would be through business advisory services, engagement with relevant institutions, economic roundtables, trade facilitation, and comprehensive banking solutions. He said the desk would remain the trusted partner that would empower and facilitate business opportunities for Nigerian and French businesses on their journey to success. “The French Desk will help to strengthen the Bank’s partnership with institutions that shared in its commitment to global economic development. “We have developed competencies to grow with institutions that have powered us to where we are today even as we continue to create intrinsic value, beneficial to the economies of all the countries where we operate,” Ogbonna said. He further said that the new desk would serve as the platform to provide enhanced services and support to French businesses and individuals operating in Nigeria and Nigerian businesses with significant interest in France or seeking to establish their presence in France. “By leveraging the expertise and resources of both Access Bank and Business France, the Desk aims to create dynamic and comprehensive banking solutions tailored specifically to the needs of these businesses.” The statement also quoted the Group Chief Executive Officer, Access Holdings Plc, Herbert Wigwe, as saying: “Nigeria is Africa’s largest economy endowed with vast human and natural resources while France possesses technological expertise, innovation, and a rich cultural heritage. “The Access Bank French Desk will play a pivotal role in facilitating trade and investment between our nations. “It will serve as a knowledge hub, providing valuable insights, intelligence, and networking opportunities for businesses from both countries.” “We aim to create an enabling environment for French companies to thrive in Nigeria while also assisting Nigerian businesses in navigating the intricacies of the French market. “Collaboration with multilateral organisations such as PROPACO and AFD will further enhance the impact of the Access Bank French Desk,” Wigwe added. The statement also quoted Mrs Chrysoula Zacharopoulou, French Minister of State for Development, Francophonie and International Partnerships, as congratulating Wigwe and welcoming the signing of an agreement with Business France Nigeria to partner on the French Desk. She said: “This initiative illustrates the huge dynamism and potential of the economic ties between Nigeria and France, which have been continuously strengthened since President Macron’s visit to Nigeria in 2018. “This Desk will enable us to further strengthen an already substantial economic partnership and benefit companies from both countries, including SMEs”.
CBN slams Daily Trust report, says we’ve not devalued the Naira
The Central Bank of Nigeria (CBN) has tackled Daily Trust Newspaper over its report on June 1 2023, that the apex bank has devalued the Naira. In a statement on Thursday morning, the Ag. Director, Corporate Communications, Isa AbdulMumin, insisted that the report by Daily Trust newspapers bordered on wilful ignorance. According to him, the report by the newspaper is riddled with outright falsehood and destabilizing innuendos which reflect wilful ignorance by the revered news medium. “The attention of the Central Bank of Nigeria (CBN) has been drawn to a news report by Daily Trust Newspaper of June 1, 2023, titled “CBN Devalues Naira to 630/$1”. “We wish to state categorically that this news report, which in the imagination of the newspaper is exclusive, is replete with outright FALSEHOODS and destabilizing innuendos, reflecting potentially willful ignorance of the said medium as to the workings of the Nigerian Foreign Exchange Market. “For the avoidance of doubt, the exchange rate at the Investors’ & Exporters’ (I&E) window traded this morning (June 1, 2023) at N465/US$1 and has been stable around this rate for a while. “The public is hereby advised to ignore the news report by Daily Trust in its entirety, as it is speculative and calculated at causing panic in the market,” the statement said. The Apex Bank further urged media practitioners to verify their facts from the Central Bank of Nigeria before publishing in order not to misinform the public.
Fuel price increase will accelerate inflation — NECA
The Nigeria Employers’ Consultative Association (NECA) has said that increase in pump price of fuel would further accelerate inflation, which would distort and destabilise economic activities. Its Director General, Mr Adewale-Smatt Oyerinde, made the assertion in a statement on Wednesday in Lagos. Oyerinde said also, that the increase would shrink private sector business capital and lower the real disposal income of the people. ‘’The inaugural address of the president on fuel subsidy has generated heated reaction, with fuel queues returning to the petrol station and the prices of goods and services increasing astronomically. ‘’The increase, if not well managed, could lead to an increase in the prices of goods and services with consequential effects on the purchasing power of the already impoverished Nigerian. ‘’No doubt therefore, the economy would contract in terms of growth; business activities will face serious backlash; and aggregate consumption will fall due to inflationary pressure, ‘’ he said. The NECA boss said that, while it was desirable to remove the fuel subsidy, it was also important that the removal was systematically and strategically done. According to him, this is in order not to further impoverish and worsen the already bad socio-economic indicators such as employment, poverty per capital income and many more. Oyerinde said: ‘’It is worrisome to note that prices of other commodities have skyrocketed few hours after the president’s pronouncement of subsidy removal. ‘’Consequently, it is critically important that the new government approaches the removal of the subsidy with caution to circumvent further degeneration in the economy. ‘’We reiterate that in the spirit of frontally addressing corruption as stated in the president’s inaugural address, efforts should be stepped up to complete the rehabilitation of the refineries to complement the Dangote Refinery that just came on board recently. ‘’With the measure, it will be possible to attain scale in Premium Motor Spirit refining in the country so as to moderate domestic prices.‘’ NECA is the umbrella organisation of employers in the organised private sector of Nigeria.
Subsidy Removal: NLC rejects new fuel pump price template
The Nigeria Labour Congress (NLC) has urged the Federal Government to immediately instruct the Nigerian Petroleum Company Ltd (NNPCL) to withdraw the just released pricing template to allow free flow of discussions by all parties. Mr Joe Ajaero, the NLC President, made the call in a statement signed by him and made available to newsmen on Wednesday in Abuja. Ajaero said that the new pricing template is vexatious, an ambush and may scuttle its ongoing dialogue with the federal government. According to Ajaero, government cannot in one breathe be talking about deregulation and at the same time fixing the prices of petroleum products. “We are worried that the Government through the NNPC despite the ongoing meeting of stakeholders in the Oil and Gas sector to manage the unilateral. “But unfortunate announcement by the President to withdraw subsidy on petroleum products, went ahead this morning to announce a new regime of prices under a new pricing template. “This is an ambush and runs against the spirit and principles of Social Dialogue which remains the best platform available for the resolution of all the issues arising out of the petroleum Down-stream sector. “This negates the spirit of allowing the operation of the free market unless the government has, as usual, usurped, captured or become market forces. “It is therefore unacceptable and we seriously condemn it. Good faith negotiation is key to reaching agreement,” he said. He added that what the government has done is like holding a gun to the head of Nigerian people and bring undue pressure on the leaders, thus undermine the dialogue. The NLC president said that Nigerians would not accept any manipulation of any kind from any of the parties, especially from the representatives of the government. “Our commitment to this process is buoyed on the fact that all the parties would be committed to ensuring that it is carried out within the ambits of liberty without undue pressure. “The release of that Template may not allow us to continue if nothing is done to withdraw it so that the dialogue can continue unhindered. It is clear that Government is actually trying to scuttle the process. “As it stands, the federal government has become fixated on their chosen course of action. Would this help this dialogue? It clearly will not. “There must be flexibility to allow concessions and reasonable accommodation that will produce the best result for Nigerian people. This is what we all seek at this time,” he said.
Naira drops 0.04% at Investors, Exporters’ window
The Naira depreciated at the Investors and Exporters window on Wednesday, exchanging at N464.67 to the dollar. The local currency showed a 0.04 percent decrease when compared with the N464.50 to the dollar, it traded on Tuesday. The open indicative rate closed at N464.10 to the dollar on Wednesday. An exchange rate of N467 to the dollar was the highest rate recorded within Wednesday’s trading before it settled at N464.67. The Naira sold for as low as 460 to the dollar within the days trading. A total of 163.74 million dollars was traded at the official Investors and Exporters window on Wednesday.