Connect with us

Business

Awaiting minimum wage implementation

Published

on

As the current year is significant to Nigerians – being the build up to 2019 elections, workers in the country are also looking forward to the implementation of a new minimum wage regime as recently promised by the Federal Government. Sunday Ojeme reports

 

The commitment by the Federal Government to implement the proposed minimum wage was again reaffirmed early in the week with the Minister of Labour and Employment, Dr. Chris Ngige, placing the possibility of having it executed this year at the doorstep of the tripartite committee set up to look into the process.
Having battled the Federal Government and other employers of labour for years, the leadership of labour movement finally made a positive headway last year as the struggle to increase the current minimum wage of N18,000 is becoming realistic.

Uncertainty
The onus, according the minister, now lies on how fast the committee is able to fast-track the process as the Federal Government is set to pay the enhanced package without hindrance.
While the leadership of the various labour unions had assured workers of the government’s seriousness in the current dispensation, what is, however, not certain is whether the employers would pick any of the much-touted N56, 000 and N96,000 wage proposals by the Nigeria Labour Congress (NLC) and the factional United Labour Congress (ULC) respectively.

Although the new wage is yet to be made public, a member of the committee, however, disclosed during an interaction that the committee was not likely to pick either of the wages put forward by labour.
He made it clear that it would, however, present an acceptable proposal that will be acceptable to both government and workers.

Optimism
Going by the minister’s promise, the National Tripartite Committee set up by President Muhammadu Buhari would likely conclude arrangements on the exercise in the third quarter of this year.
“We had our inaugural meeting on 14th December and we did a framework for our work. We will finish our job before the third quarter of this year, but we may finish earlier,” said Ngige.

“Minimum wage is a national matter and only the federal government can legislate on it. Labour matter and the issue of national minimum wage are in the Exclusive List.
“President Buhari is monitoring it strictly, and I am monitoring it too.”

Likely hitches
Despite the assurance, there are, however, fears that the National Assembly might delay the process and possibly push it further into 2019. The apprehension stems from the fact Buhari while inaugurating the committee had said that after the completion of the work of the committee, an executive bill would be sent to the National Assembly “to undergo scrutiny before being passed into law.”

Known for its delay tactics and political infusion into matters of this nature, one of the labour leaders, who is the President, Medical and Health Workers Union, Mr Biobelemoye Joshua, said the organised labour would not allow the government to use the minimum wage issue to score political point. He said that if the government employed delay tactics for any reason, labour would waste no time in reacting.

Having expressed satisfaction over government’s position, the President of NLC, Comrade Ayuba Wabba, believes that the quick implementation of the process will go a long way in filling the gaps workers had lost in the past
Wabba said the inauguration of the new minimum wage committee was long overdue, stressing that the committee should work immediately to cover the times that have been lost.
“This is something that workers have long anticipated and our expectation is that we want a speedy process now that the facts of the issues are very obvious. “The current minimum wage of N18,000 approved in 2011 has waned over the years in terms of its purchasing power,” he said.

“If you look at the exchange rate, the N18,000 minimum wage of 2011 when we signed the agreement, it was almost equivalent to N110 dollars; today, the N18,000 is less than 46 dollars. So, this is the reality and with the purchasing power of ordinary Nigerian worker, with the high cost of transaction, our expectation is that the committee should look at the conditions of the Nigeria workers and pensioners.”

President Buhari had earlier corroborated Wabba’s position while inaugurating the committee when he said that the new national minimum wage had become imperative as the current wage instrument had expired, noting, “minimum wage must be consensual and generally acceptable and should be anchored on social justice and equity.’’

Committee membership
The 30-member tripartite National Minimum Wage Committee include governors Rochas Okorocha of Imo, Rauf Aregbesola of Osun, Atiku Bagudu of Kebbi and Simon Lalong of Plateau, Nyesom Wike of Rivers and Ibrahim Dankwambo of Gombe.

Also involved are persons from the public sector (federal and state governments) and the private sector made up of the largest private employer group, the Nigeria Employers Consultative Association (NECA), Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA) and Nigerian Association of Small and Medium Enterprises (NASME).

The committee has a former Head of Service and Minister of Housing, Ama Pepple, as chairperson, while the current Minister of Labour and employment, Chris Ngige, is deputy chairman.
On the Trade Union side are the President of NLC, who leads a team comprising Peters Adeyemi, Kiri Mohammed, Amechi Asugwuni and Peter Ozo-Eson.
The Trade Union Congress is led by its President, Bobboi Kaigama, and other members including Sunday Salako and Alade Lawa.

The President, Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, Igwe Achese, is also a member.
On the employers’ side are Olusegun Oshinowo, Director General, Nigeria Employers’ Consultative Association, NECA, as well as Timothy Olawale and Chuma Nwankwo.
The Director General, Federation of Construction Industry, FOCI, Olubunmi Adekoje; Chairman, Kaduna East Branch, Manufacturers Association, MAN, Ahmed Gobir; and Francis Oluwagbenro also from MAN are members.

Last line
As the Federal Government shifts the next line of action to the committee, it is expected that the members, who are known to be committed to the welfare of workers, work speedily in order not to give room to more delays.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

JOHESU: Unresolved strike with many issues

Published

on

JOHESU

Year-in-year-out, labour and trade unions have tried to ensure their members’ rights are protected, especially on improved welfare. However, that of health workers, currently on-going, appears not to be on the popular side. REGINA OTOKPA reports

 

For decades, Nigerian workers have continued to press for better welfare packages and prompt payment of their entitlements from the government. This has led to series of strike actions by various unions fighting for workers’ rights.

The most recent is the agitation by health workers under the umbrella of Joint Health Sector Union (JOHESU). JOHESU comprises of Medical and Health Workers Union of Nigeria (MHWUN), National Association of Nigeria Nurses and Midwives (NANNM), Senior Staff Association of Universities, Teaching Hospitals, Research Institutes and Associated Institutions (SSAUTHRIAI), Nigeria Union of Allied Health Professionals (NUAHP) and Association of Medical Laboratory Scientists of Nigeria.

JOHESU’s Demands The first major bone of contention among the 15-point demands is the payment of over N20 billion adjusted Consolidated Health Salary Structure (CONHESS), which the government had already agreed to pay in 2017.

Others are immediate release of the harmonised scheme of service and circular on internship for nurses and midwives, upward adjustment of the CONHESS salary structure, immediate and full payment of arrears of salaries of CONHESS 10 skipping outstanding, payment of promotion arrears, same scale promotion/ redesignation, prioritisation of employment in the critical professional areas and enhanced entry point to accommodate all other graduates of other health care professionals.

Others are advertisement of CMD/MD’s appointment without prejudice to any particular profession, nonseparation of teaching hospitals from their teaching hospitals and the eligibility for specialist allowance to accommodate two members of JOHESU.

The demand also include board appointment to institutions, promotion of health workers at Federal Medical Centre Owerri, who were being punished for embarking on strike to same level with their counterparts, adjustment of retirement age from 60 to 65, and immediate set up of a collective bargaining agreement committee to look at headship allowance, administrative allowance, professional allowance, excess work load allowance, health and safety site allowance for JOHESU members.

Broken agreement

The aggrieved workers claimed that previous administration of President Goodluck Jonathan agreed to implement these demands in 2015, but the Minister of Health, Prof Isaac Adewole, recently insisted that such was not the case, as there was no agreement between the Federal Government and JOHESU prior to the administration of President Muhammadu Buhari.

He maintained that what JOHESU brandished as 2014 agreement were minutes of meetings held with organs of Federal Government to reach a compromise, adding that JOHESU’s demands to be at par with doctors in terms of salary was neither practicable nor acceptable.

He said: “As a responsible government, we will do everything within our power to bring the ongoing strike action to an end as quickly as possible, but what JOHESU is asking for is parity with medical doctors which is neither practicable nor acceptable to the federal government.”

Adewole had said out of the 15 demands presented by JOHESU in September 2017, the government had implemented 14 while the last demand was being attended to, noting that the implication of when the agreement was reached is that JOHESU wants the government to pay arrears from 2014, and not September 2017, which the Buhari administration agreed to.

However, this is not the case, some of the 15-point demand by JOHESU has not been implemented contrary to claims by the Minister of Health. For example, the government has not increased the retirement age of JOHESU members from 60 to 65 years, skipping of Consolidated Health Salary Scale (CONHESS 10) arrears has not been paid as well as the implementation of the scale to scale promotion, especially on CONHESS 14 to 15. Other demands yet to be implemented includes employment of health workers to address the shortage of manpower in critical professional areas.

Service withdrawal

Poised to drive home their demands, especially the non-implementation of the new salary structure for other workers just as was done for doctors since 2014, the national wing of JOHESU withdrew their services at all federal health institutions on April 18, 2018.

The Government’s failure to arrive at a compromise after several meetings with the aggrieved health workers, two weeks after, led to an expansion of the strike from federal health institutions to states and local government hospitals on May 9. Meeting to receive and analyse the report of a six-member technical committee set up about two weeks ago to unravel the modalities to implement the adjusted CONHESS, the government and leadership of JOHESU, however, rejected the report and dissolved the committee, on the grounds that the report did not meet both parties’ expectations.

The national incomes, salaries and wages commission was immediately mandated to meet with JOHESU to produce a more acceptable template for implementation and to be presented at a rescheduled meeting.

NMA’s position

Despite government’s effort to reach an agreement with the striking health workers, the Nigerian Medical Association, NMA, has been a bone in the throat. Only recently, the new leadership of the union led by the President, Dr Francis Faduyile, had threatened to down tools should the Federal Government accede to any of JOHESU’s demands that violates its collective bargaining agreement with government in January 2014.

While claiming that allowing JOHESU assess to leadership positions in health facilities would only put the life of more Nigerians at risk of preventable deaths, NMA insists that JOHESU’s demands were not only an aberration considering international best practice that will add no value to clinical/patients’ care, but certainly worsens morbidity and mortality indices in Nigeria. “It is also pertinent to once again remind the government about the concluding part of our letter no.

NMA/PRE/SG/03/0751 of 21st March 2014, which states, “In view of the above, the NMA painfully wishes to inform the Federal Government of Nigeria that any award to the non-medically qualified health professionals that violates the January and July agreements of 2014 shall result in the resumption of the suspended withdrawal of service of 2014.

Please take this as a notice sir,” NMA said. “The above reminder is predicated on the extension of the ongoing strike action embarked upon by the amorphous body called JOHESU, to States and Local government areas, the basis of which is to strengthen its callous and ill motivated agitation for pay parity between her members and doctors with the resultant erosion of relativity and further hierarchical distortion in the health sector vis-àvis her clandestine romance with some top government officials.

“We oppose vehemently, any adjustment in CONHESS salary scale with resultant pay parity between doctors and healthcare professionals allied to medicine, and hereby reaffirm that relativity is sacrosanct. “The demand for Headship of Departments/units in the hospital by members of JOHESU/AHPA will lead to unprecedented chaos in the health sector with ripple effect on the health of Nigerians.

We reaffirm our rejection of this demand.” Uncomfortable with NMA’s interference, the Minister of Labour and Employment, Sen. Chris Ngige, advised the association to be cautious in interrupting and meddling with the ongoing discussions between the health workers and the government to allow for a more peaceful and generally acceptable resolutions.

JOHESU had earlier accused Ngige and Adewole, who are both medical doctors, of bias and meting out unfair treatment to members of the union, with claims JOHESU was soliciting for equal rights with medical doctors.

JOHESU’s resolve

The national Chairman of JOHESU, Comrade Josiah Biobelemoye, had noted that the lingering strike was as a result of the unfavourable moves by the Federal Ministry of Health to frustrate all efforts of the union and the government from reaching an amicable settlement.

“The Federal Ministry of Health treat us like slaves; one of the lies they are telling Nigerians is that we are asking for equal salary with the doctors . Can you imagine that a doctor entering Civil Service enters with grade level 12 while we enter with level 8 and it takes nine years for our members to get to grade level 12,” he said.

“Since government has not shown enough commitment to tow the part of honour and meet our demands, especially, the core demanding for the upward adjustment of CONHESS salary structure as agreed in the Memorandum of Terms of Settlement signed on 30th September, 2017 with JOHESU.

“After three rounds of meetings held on Thursday, 26th April, 2nd and 7th May respectively, at the instance of the Minister of Labour and Employment to find a way forward, the Federal Ministry of Health is thwarting all efforts at reaching an amicable settlement of the issues of our demands, especially the upward adjustment of COHNESS salary structure.

“CONHESS review is the upward adjustment of the CONHESS Salary table on-line with the same principles used in adjusting the CONMESS table for medical doctors who work with use n the health team.

“Our own demand for the adjustment of CONHESS that affects over 85 per cent of the workforce nationwide has been frustrated, and part of the reason for this is that the minister of health as well as the minister of state for health are all medical doctors, while the minster of labour labour and employment, who should be neutral umpire in trade disputes is equally a medical doctor.”

Last line

If these issues are not properly attended to and addressed urgently, prospects of the ongoing strike being called off would continue to be a mirage. This has a huge consequence on the health of a vast majority, as the poor masses who are unable to attain health care services from private health facilities will continue to suffer unjustly.

Continue Reading

Business

Reinsurers’ stake in short-term investment rises by N3.48bn

Published

on

Nigeria’s indigenous reinsurance firms, Continental Reinsurance Plc and Nigeria Reinsurance Corporation, have increased their stakes in short-term investment by N3.4 billion. Data released by the National Insurance Commission (NAICOM) revealed that both reinsurers had earlier committed a total of N8.17 billion into the portfolio before increasing it to N11.65 billion as part of their assets.

A searchlight on their assets revealed that out of the total investment, Continental Reinsurance put in N9.23 billion while Nigeria Reinsurance came far behind with a total of N2.43 billion. Further analysis of the data also revealed that their investment in real estate also grew from N17.94 billion to N18.54 billion.

Despite the competition for premiums with highly sophisticated and capital backed offshore reinsurers, the duo has been able to steadily grow their assets over time to remain in business. A recent report detailing global reinsurance rankings left Nigerian firms out despite having the potential to carry out and dominate business transactions in Africa and possibly beyond. They were conspicuously missing in the list as the N896.24 billion gross premium written within a period of five years was far below the ranking parameter, leaving only Africa Reinsurance Corporation among the top 50.

The ranking, which revealed that Swiss Re supplanted Munich Re as the world’s largest reinsurer, was based on the gross premium written within a period of time. In this case, Munich Re’s significant primary operations accounted for just over 30 per cent of its total GPW.

On the other hand, Swiss Re’s reinsurance/primary insurance split is more modest, with just over 15 per cent of GPW coming from insurance operations, putting it under the threshold to split out its insurance and reinsurance premiums.

Apart from Africa Reinsurance having its headquarters in Nigeria, jobs are also ceded to offshore firms due to fragile capacity among local industry players. According the Nigerian Insurers Association’s (NIA) digest, which gave a breakdown of performance within a period of five years, the total amount realised as premium by the reinsurers was N896.24 billion.

The transactions, according to the report, were specifically for general business, wherein the gross premium comprises mainly of businesses accepted from Nigeria by direct offices while local cession covers business ceded to reinsurance companies within Nigeria as well as direct companies for co-insurance jobs. According to the details, the areas covered include Motor, Fire, General Accident, Marine and Aviation, Workmen Compensation/ Employers’ Liabil-ity, Oil and gas, and Miscellaneous.

In 2011 precisely, the reinsurers accepted jobs worth N6.23 billion while it also ceded transactions valued at N44.80 billion. Following the same step in 2012, the operators accepted transactions worth N3.15 billion and ceded others amounting to N55.47 billion. Similarly, in 2013, while transactions worth N4.89 billion were accepted, the operators ceded N63.65 billion worth of deals. For the 2014 transactions, N1.98 billion worth of business was accepted as against N75.33 billion that was ceded out.

In the final year (2015) within the period, transactions worth N1.96 billion were accepted as against N75.44 billion that were ceded. Further details also revealed an increase in reinsurance ratio in 2015 (0.43) as against that of 2014 (0.42).

The reinsurance ratios for other years within the review period are 0.31 in 2011, 0.32 in 2012 and 0.37 in 2013. According to market statistics, European and other overseas reinsurers currently control about 65 per cent of the Nigerian business while African Re controls about 20 per cent.

The remaining 15 per cent is shared between Continental Re and Nigerian Re. Last year, the management of Africa Re pointed out that the dominance of foreign reinsurance firms in the country was due to total low underwriting capacity as reflected in shareholders’ funds compared to the size of total risk exposure.

Continue Reading

Agric

Nigeria’s agric and the challenges

Published

on

Recently, the Minister of Agriculture and Rural Development, Chief Audu Ogbeh, linked private sector investments to the growing transformation in Nigeria’s agric sector. But these investors still have to contend with myriad of challenges. TAIWO HASSAN reports

 

On attaining the mantle of leadership as Nigeria’s president on May 29th, Muhammadu Buhari, without compromising his administration’s role, explained that he would give top priority to the agric sector. Particularly, President Buhari wooed the private sector to invest in agriculture, saying that this is the next ‘big thing’ in the country and it is being positioned to increase the country’s revenue generation.

Since President Buhari’s clarion call, the private sector have keyed in into the Federal Government’s diversification agenda, through their investments in Nigeria’s agric sector. Ogbeh has consistently reiterated that his ministry is fully committed towards the development of the agricultural sector, stressing that key developments in the sector would continually be private sector driven.

He said that the Federal Government would provide the necessary incentives to grow the sector by facilitating financing and support for Small to Medium Scale Enterprises (SME) through investment vehicles such as FAFIN.

Fixing Nigeria’s agric sector

The minister said that the burden of fixing Nigeria’s economy has fallen squarely on his ministry as the oil industry has floundered and the revenue originating from it had taken a plunge, adding that no serious government will fold its arms and watch without doing something. According to him, to fix agriculture and the Nigerian economy, what the administration need to do is to harness the good policies it met on the table and blend with those that they are currently fashioning out, in a coherent and consistent manner such that it will instill confidence in the citizens, investors, market operators, farmers, traders and everyone along the various agricultural value chains.

He said that President Muhammadu Buhari has given his support for the interventions that could move agriculture forward and contribute to repositioning the economy and diversifying it away from overreliance on oil.Ogbeh said : “We have taken up the challenge of boosting local production of food as we reduce our dependency on food imports, boost domestic food production, revive rural economy and expand export earnings.

“With the huge agricultural potential of over 84 million hectares of land, abundant water bodies, particularly the various rivers, all-year-round favourable weather conditions and a variety of agro-ecologies suitable for agriculture, Nigeria is well positioned to feed its population as well as produce for export.

“The policies of my ministry will be proactive and responsive to the stakeholders’ peculiar needs. We will be nationalistic and patriotic in our approach. “We will support genuine investors and we will ensure that food is produced in abundance while we also boost the prospects of investors in the agricultural sector.”

Private sector investments

The increasing attention of the private investors in agriculture is a testimony to the fact that there is a lot of prospect in the sector. Particularly, the private sector investment in various agricultural value chains in Nigeria has re-positioned agriculture in the country in all ramifications. Indeed, the private sector investment has also provided an opportunity for the national agriculture community to familiarize themselves with the Federal Government’s priorities and plans for the sector.

No doubt, statistics revealed that private sector investments in the country’s agric sector has surpassed N1 trillion. Hence, agric experts have advised that the government needs to give more support to the private sector in order not to lose the goodwill the country had been enjoying in agriculture.

“There is risk of reduced investment spending that can lead to loses of opportunity for job creation by 16 priority investors due to lack of satisfaction with government support,” the UNDP Deputy Country Director of Programmes, Mandisa Mashologu said. He added that nascent system of coordination and inconsistency of policies, regulations, laws and administrative practices, which were key challenges, must become a thing of the past, if Nigeria must maintain its enviable leadership position in Africa’s agricultural transformation. Some of the multi-billion naira private sector investments in Nigeria’s agric sector are geared towards guaranteeing abundant food sufficiency and security.

Cosmas Maduka, Chairman of Coscharis Group, a foremost automobile dealer in Nigeria, has invested a fortune on rice production in Anambra State to the tune of 3,000 hectares and promised to increase it to 6,000 hectares soon.

Alhaji Sani Dangote, the vice chairman of Dangote Group, has indicated the commitment of his conglomerate in agricultural mechanisation. Dangote Group was among the investors who witnessed the flag-off of the second phase of the Mechanisation intervention of the Federal Government.

The company is among others taking up Agricultural Equipment Hiring Enterprise centres in Nigeria. Sani Dangote, who is also the chairman of the Nigeria Agriculture Business Group (NABG), said: “There is an urgent need for private sector stakeholders in agriculture to work together towards growing Nigeria’s agriculture, diversifying from oil and gas dependency, encouraging agricultural industrialization, and creating an enabling environment for agribusiness to thrive.”

On rice production, Africa’s richest man, Dangote, announced earlier this year that he was making a $1 billion investment in Nigeria’s rice production, which seemed to vindicate the government’s approach.

The Dangote Group plans to produce one million tonnes of parboiled milled rice over the next five years, equivalent to 16 per cent of domestic demand. Other big players have also jumped in, including the Lagos- based conglomerate TGI, which opened a rice mill in August with a capacity of 120,000 tonnes, and Olam Nigeria, part of Singapore-based Olam International, which plans to boost its existing rice output.

Constraints

However, despite the efforts of the private sector investors to boost Nigeria’s agriculture, they are still facing challenges in their farming businesses, including access to credit, access to land, land analysis, land management and security on farms. Also included are market access, standardization and post-harvest losses. All these challenges are currently affecting their huge investments in the sector.

Last line

With the huge private sector investment in Nigeria’s agriculture, experts have called for creation of enabling environment from government in order to safeguard their investments in the sector.

Continue Reading

Trending

Take advantage of our impressive online traffic; advertise your brands and products on this site. Call

 

For Advert Placement and Enquiries, Call:

Mobile Phone:+234 803 304 2915

 

Online Editor: Michael Abimboye

Mobile Phone: 0813 699 6757

Email: mmakesense@gmail.com

 

Copyright © 2018 NewTelegraph Newspaper.