N30,000 minimum wage binding on all employers – FG – Newstrends
Connect with us

Business

N30,000 minimum wage binding on all employers – FG

Published

on

The N30,000 national minimum wage is binding on all employers of labour, including state governments and the private sector, the Federal Government has said.

President Muhammadu Buhari stated this on Saturday in Abuja during the Workers’ Day celebrations.

He spoke through Minister of Labour and Employment, Senator Chris Ngige, stressing that the minimum wage law signed in 2019 was a national law that everyone must obey.

Buhari said, “Private sector and state governors are bound by the laws, because we have workers as prescribed in that law. So, it is not a question of pick and choose. We moved the national minimum wage from N18, 000 per month to N30,000. It is an irreducible plus. Therefore, we expect them and the people in the private sector to comply.”

He also told the workers that the FG was against any attempt to remove the national minimum wage from the exclusive list, adding that the issue of pension minimum wage was backed by the constitution, and every employer was bound by it. The FG, he said, would pay all minimum wage arrears owed pensioners from 2019 to date.

“All pensioners in the federal civil service are to get their arrears paid beginning from May 1, 2021,” Buhari said.

He noted that although the negative effects of the COVID-19 pandemic were monumental, the government had tried to cushion the effects of the disease without reducing incomes.

This was made possible, he said, through the diversification of the economy, thus keeping the country afloat.

Buhari listed some of policies being executed by his administration to create jobs and empower the populace.

He said, “While awaiting the formalisation of our social protection network and people’s welfare, we have not and will not rest on our oars in combating the challenges of our time occasioned by COVID-19 pandemic.

“We have in our place some social-economic policies to alleviate poverty and ours include but not limited to the expansion of the Conditional Cash Transfers for the vulnerable poor from 2.6 million households (13 million persons) to 7.6 million households (32 million) and COVID-19 Rapid Response Register for urban poor, which now has 4.8 million households (20 million).”

The president said the government, through the Federal Ministry of Trade and Investment, was implementing the Entrepreneur Support Programme, Artisanal Support Fund, and Payroll Support Fund for small-scale businesses.

In a message jointly signed by the President of NLC, Ayuba Wabba, and President of TUC, Quadiri Olaleye, the leadership of organised labour lamented the poor conditions Nigerian workers had been subjected to.

They alleged countless violations of human, workers, workplace and trade union rights all over Nigeria in the last one year.

They said the situation was compounded by the health and socio-economic effects of the COVID-19 pandemic, which led to the loss of millions of jobs and subsequently pushed about 27 million Nigerians into poverty.

Wabba said this year’s May Day was dedicated to brave women and men, who paid the supreme price in the performance of their jobs, contracted the coronavirus, and suffered life-lasting complications as a result.

“We must say that our country has not made the desired progress in protecting workers and the Nigerian people from the impact of COVID-19, which has brought with it daunting challenges for Decent Work, Social Inclusion cum Protection and Distress on peoples’ welfare,” he stated.

Wabba added, “Despite the best efforts of government, organised labour, and private sector employers, millions of Nigerian workers have lost their jobs, their means of livelihood and have slipped into destitution, lack and misery. The weakness of our social protection system has aggravated the pain and frustration of our compatriots.”

Olaleye said labour was proffering alternative policy options to government to consider in order to save the country from the current difficult situation.

He said rather than help businesses to grow, agencies of government had been stifling the small-scale businesses through multiple taxation, leaving the economy and Nigerians strangulated and impoverished.

The TUC president said government should see the need for expansionist policies to restore the essential role of the state in the protection of essential public goods, notably health, education, jobs, and sound management of the petroleum and power sectors.

On the removal of petrol subsidy, Olaleye said organised labour was pushing for production cost and pricing method as against the existing import-parity model, which had bled Nigeria of humungous forex.

He urged the government to implement a three-year suspension of increase in gas price to help stabilise the cost of electricity tariff in the country.

“With the savings made, the cost of the electricity tariff could be reduced by N10.50 across the high price bands,” he said.

Representative of the Senate President, and Chairman, Senate Committee on Labour, Senator Godiya Akwashiki, said the National Assembly was always willing to partner the leadership of the workers in safeguarding the wellbeing of workers and ensuring industrial stability.

Secretary to the Government of the Federation, Boss Mustapha, commended Nigerian workers for standing with the FG during the challenging period of the outbreak of COVID-19.

Business

Shettima launches Light-Up Nigeria in Enugu, 188MW Aba power plant

Published

on

Shettima launches Light-Up Nigeria in Enugu, 188MW Aba power plant

Vice-President Kashim Shettima has inaugurated the 188-megawatt geometric power plant in Aba, Abia State, to accelerate power supply to industrial clusters in the region.

He also on behalf of President Bola Tinubu declared the Light-Up Nigeria project open in Enugu to boost South-East industrialization.

The Aba power plant, described as the first integrated electricity facility in Nigeria, is located in the Osisioma industrial area of the state.

Aba Power Limited Electric, a new electricity distribution company (DisCo) is expected to supply electricity from the plant to nine local government areas — out of 17 — in Abia State.

Described as the biggest investment in the South-East, geometric power is said to have spent about $800 million on its integrated power project, which includes the building of a 27-kilometre natural gas pipeline, from Owaza in Ukwa West LGA in Abia to the Osisioma industrial layout in Aba.

Shettima described the Light up project as the much-expected solution to the power supply deficit that had undermined the nation’s economy and industrialisation.

Shettima said the Light-Up Nigeria project, which is part of the priorities set by the President to revamp the nation’s economy and ensure rapid industrialization, would herald renewed hope for industrialists, investors and Nigerians who had suffered lack of power or epileptic supply for many years.

Abia State Governor Alex Otti, said, “When I first saw the proposal for geometric integrated power plant, I knew I had to be involved immediately because, if just 50 percent of what had been proposed could be achieved, the industrial output from this great city and this environs would triple and millions of new jobs will be created directly and indirectly in the short to medium term.”

Continue Reading

Business

Naira appreciates by 5.22% as intra-day high records N1778/$1

Published

on

Naira appreciates by 5.22% as intra-day high records N1778/$1

The Naira experienced a notable appreciation against the US dollar on February 26, 2024 as official exchange rate strengthened by 5.22% to N1582.94/$1. 

However, the Naira experienced heightened demand pressure, resulting in an intra-day high of N1,778 against the dollar.  

This increase exacerbated the ongoing depreciation trend of Nigeria’s currency, highlighting the volatility and challenges faced in the foreign exchange market. 

Data from the Nigerian Autonomous Foreign Exchange Market (NAFEM), the official platform for foreign exchange trading, revealed a significant appreciation of the domestic currency by 5.22%, with the Naira concluding the day at N1,582.94 per dollar. 

This represents an N82.56 drop or a 5.22% increase in the local currency compared to the N1,665.5 closed on Friday. 

The intraday high recorded a record high of N1778/$1, while the intraday low was N1300/$1, representing a wide spread of N478/$1. 

According to data obtained from the official NAFEM window, forex turnover at the close of the trading was $154.16 million, representing a 1.47% increase compared to the previous day. 

The Naira also appreciated against dollar in the parallel forex market, where forex is unofficially traded, with the exchange rate quoted at N1,650/$1, reflecting a 6.06% increase from the N1,750 rate it closed at the previous day.   

READ ALSO:

The Great British Pound (GBP) stood at £1/N2100, an increase from £1/N2,260 recorded the previous day, this marks a notable increase of 7.62% compared to the rate recorded the previous day. Additionally, the Naira appreciated against the Euro by 5.95%, closing at N1850/EUR1 compared to N1960/EUR1 reported the previous day. 

In the cryptocurrency market where forex is sold using stablecoins, the Naira also settled at N1,637.30/$1. 

Newstrends reports the Central Bank of Nigeria (CBN) plans to introduce stringent measures on the purchase of foreign currencies through Bureau De Change (BDC) operators, with a specific focus on transactions related to overseas education and medical expenses. 

As part of the apex bank’s revised regulatory guidelines for BDCs in Nigeria, there will be a cap on foreign currency purchases for school fees at $10,000 per customer annually. 

This process requires the transaction to be conducted through the BDC’s domiciliary account with a Nigerian bank, ensuring direct payment to the educational institution. 

The proposed guidelines read, “BDCs may sell foreign currency up to the equivalent of USD10,000 to a customer for school fee once a year. Such fee, which shall be transferred from the BDC’s domiciliary account with a Nigerian bank, shall be paid directly to the school.”

It also stipulates that such transactions must be accompanied by a set of documents: a duly filled out e-Form A, proof of admission or course registration, the educational institution’s bill or invoice, and, for postgraduate studies, a copy of the undergraduate degree certificate or an officially verified statement of results. 

 

Naira appreciates by 5.22% as intra-day high records N1778/$1

Continue Reading

Business

Naira stays above N1600 bandwidth at unofficial market as MPC meeting kicks off

Published

on

Naira stays above N1600 bandwidth at unofficial market as MPC meeting kicks off

The naira, week on week, posted some recovery against the haven currency at the unofficial market as the Central Bank of Nigeria set in motion its first Monetary Policy Committee (MPC) meeting under Mr. Yemi Cardoso, with many analysts expecting a significant increase in the benchmark interest rate, also known as the monetary policy rate.

The naira initially traded around N1600 to the USDT early Monday morning at the time of drafting this report, posting a weekly gain of more than 25% for the week, although this has moved above the N1600 mark as at the time of this report.

Binance and Cryptocurrency Usage

A significant number of young Nigerians have become increasingly dependent on Binance to buy digital assets as a hedge against rising inflation and currency devaluation.

Notably, for Nigerian foreign exchange traders, the Binance P2P platform has emerged as a key location for price discovery.

Although Nigeria has not officially stated that it has blocked access to Binance and other cryptocurrency platforms, some Nigerian users of these sites have complained about not being able to access the platform on their X accounts.

These digital service providers have been major players (reference points) in the FX market of the nation, frequently acting as standards for regional FX rates.

READ ALSO:

The government wants to take control of the naira’s value and maintain its place in the financial system, so it’s restricting access to these platforms.

Monetary Policy Expectations

Following a few missed monetary policy sessions, Nigeria is expected to implement two aggressive interest rate hikes in less than two months to control inflation and strengthen the naira, according to a Reuters poll released on Friday.

Nigeria’s monetary policy rate is expected to increase by 225 basis points to 21.00% on February 27 during Governor Olayemi Cardoso’s first monetary policy meeting, according to a survey conducted last week.

With the local currency still trading near its record low on the black market and January inflation increasing to 29.9 percent year over year, market pundits anticipate considerable policy tightening and the announcement of de facto system-wide tightening measures.

Dollar Index and Federal Reserve Outlook

Meanwhile, the dollar index used to gauge the dollar’s strength against major currencies posted decent gains in London trade on Monday, following its first weekly loss since 2024.

Though Federal Reserve officials cautioned that the bank was not in a rush to start lowering interest rates early, particularly given the persistently high inflation rate, the dollar managed to hold onto its three-month highs.

This week, the Fed’s main inflation indicator, the PCE price index data, is anticipated to provide additional hints about inflation.

Some additional Fed speakers are anticipated this week, most of whom will probably restate the view of higher interest rates for longer.

Naira stays above N1600 bandwidth at unofficial market as MPC meeting kicks off

Continue Reading

Trending

Skip to content