• Workers to reject downsizing of public work force
• Fuel scarcity persists despite price hike
• Naira may exchange for N283 to dollar

Three days to the threatened mass action against government’s increase in the price of petrol, indications emerged yesterday that the Federal Government would meet organised labour today in Abuja over the issue, dangling a carrot before labour leaders.

The Guardian learnt that at the meeting slated for 3:00 p.m. at the Federal Ministry of Labour and Employment, the Federal Government will be coming to the parley with the proposal for a new minimum wage that is fixed at N45, 000.But the increase comes with some provisos including reduction in the number of civil servants and merging ministries and agencies.

Indeed, the President of the Nigeria Labour Congress (NLC), Ayuba Wabba confirmed the scheduled meeting saying he got a text message inviting him and other labour leaders to the meeting.

A source in the Presidency told The Guardian that ministers had been told to lead the initiative on the downsizing.Also, the Efficiency Unit in the Federal Ministry of Finance, which is saddled with coming up with cost reduction strategies is working on the template for the reduction.

The Federal Government would also be relying on the report of the Steve Oronsaiye’s panel on the rationalisation of the civil service in the streamlining process.

It was also learnt that though government said it would not devalue the naira, it would indeed embark on what it termed ‘appropriate’ value of the national currency, which may be in the region of N283 to the dollar.

Meanwhile, fuel scarcity persisted in most of the major cities of the country yesterday despite hopes that petrol would be available since government at the last Federal Executive Council meeting raised the pump price of petrol to N145 per litre.Yet, some outlets are retailing for as high as between N150 and N175 per litre.

A visit to some areas in Lagos showed that most petrol stations were under lock and key, with only one or two selling the product for N145 per litre.

In a related development, the Arewa Defence League (ADL) has called on Nigerians to stand by the current administration over the recent increase in pump price of petrol, saying the increase is not meant to worsen the sufferings of the masses but aimed at ensuring availability and sustainability of the product.

But the NLC President, Ayuba Wabba, berated the government that promised to create jobs but was now tinkering with the idea of embarking on one of the most massive job losses Nigeria has every witnessed.

He added: “We cannot be talking about creating jobs and at the same time be talking about mass sacking of workers. This is a government that promised jobs and now, it wants to embark on mass sacking of workers. It is difficult to reconcile the two extreme ends. We will not accept any proposal for job cuts if put across to us.”

Wabba pointed out that the challenge of retrenching workers has always been that government at all levels has failed to make provision for payment of entitlements.

He explained: “Well, every employment has terms of agreement. Nobody can force any worker on an employer and no employer can insist a worker works for him. But very importantly is the fact that exit strategies must be in place for painless exit. The problem over the years has been that government disengages people without preparing for the payment of their gratuities and pension. I believe there are many employees that will be happy to leave today if all their entitlements are ready.”

While hinting that while the labour centre and their civil society allies are ready to come to the negotiation table, he explained that the issue at stake is far more germane than price increase.

He said: “I must say that the issues are beyond the price increase and dollar exchange rate. The issues are about the totality of the corruption that has characterised the downstream sector for many decades. Simply pegging the exchange at some N285 or so will not address the problem. It is a simple matter that if the demand outstrips the supply end, the price of the dollar will increase and Nigerians will continually pay for petrol. So, there would be no to price increments if the fundamentals are not discussed.”

Wabba said while labour is open-minded about all the issues, it will push for solving the challenges with timelines that would be respected.
“Just increasing the price is taking the easy way out. This is because, as the President and Dr. Kachikwu have observed in the past, what has held the downstream sector down is corruption especially as it concerns the landing costs. What government is trying to do now is transferring the burden to the Nigerian people. What government needs to do is to find the right mix to put an end to the quagmire.”

Long queues have remained at filling stations, including at the popular NNPC mega stations which offered Nigerians some respite before the increase.Black marketers were also in active business, with some selling at N350 per litre.

Besides, with the upward review of the Price of Premium Motor Spirit (PMS), otherwise known as petrol from N86.50 to maximum of N145 per litre (about $0.73), the cost of petrol in Nigeria is about the lowest in Africa and among some oil producing countries.

Data obtained from GlobalPetrolPrices, which was updated at the weekend, showed petrol in Chad costs $0.78 per litre; Togo, $0.80 per litre; Kenya, $0.81 per litre; South Africa, $0.84 a litre; $0.85 a litre; Niger, $0,90; Ghana, $0.92; Sierra Leone, $0.94; Uganda, $0.97 and Angola, $1.00 per litre.

Also, in Rwanda, Mali, Malawi, Guinea, a litre of petrol sells for $1.15, $1.15; $1.17; $1.17 respectively, which are far higher than the price in Nigeria.

Long queues have remained at filling stations, particularly at the popular NNPC mega stations which offered Nigerians some respite before the increase.Black marketers were also in active business, with some selling at N350 per litre.

Attendants at one of the filling stations along Oshodi -Apapa Expressway, Lagos told The Guardian yesterday the retail station had already run out of the commodity before the announcement of the new price regime.

Experts believed that the recent hike in the price of fuel would lead to hardship and have therefore urged government to initiate measures to ameliorate the effects on the economy.

A Head of the Department of Petroleum Engineering and the Deputy Director, Centre for Petroleum, Energy Economics & Law. Dr. Olugbenga Falode, told The Guardian that this is because whatever happens in the oil sector affects all other sectors of the economy and by implication, it affects the macro-economic policies of the country.

Also, a Professor of Technology Management, Obafemi Awolowo University, Ile-Ife, Francis Eniterai Ogbimi, said that mere adoption of deregulation and privatisation cannot build refineries and increase refining crude petroleum. Increased production is the solution to low supply, not the adoption of ideologies like capitalism deregulation, privatisation, liberalisation, socialism or communism, he said.

According to him, only seven per cent of the nations in the world practise full deregulation of the sale of petrol, adding that the United States does not practise full deregulation as the American government controls the price of petrol.




http://m.guardian.ng/news/govt-to-propose-n45000-wage-meets-labour-today/

Minimum wage: 45,000.00

Dollar to Naira : 283

PMS price : Above 145 naira.

This is getting serious. All is well.

I think we are ending to a strange land because if the economy team of this administration don't bring out measure to control this inflation after this increment then nigeria will be heading to zimbabwe way. Well that's good if the government can keep to their words because we know them as lie administration.

Thinking out loud right

Govt. needs to compensate the present situation with good correct wages.

Reverse the price of fuel and electricity bills if this government are really sensitive to the plight of the masses not 95 percentage of Nigerians are politicians

Propaganda

This is good news if true.

I have said it before that deregulation of petrol business prevents Nigeria from making oil marketers billionaires with our scarce dollars. Increasing minimum wage will ensure that workers get the "subsidy" they were not getting from subsidized fuel. And once that is done, non-government workers will be able to get their own share from govt workers too.

I know you say inflation but we cannot avoid that natural situation with our current state of affairs. Impossible!

All those of you shouting inflation up and down

whot duyu know ?

I for one know that FG won't just agree to 45k MW just like that , so if your hopes are high, keep them down

I also know NLC will not go on prolonged strikes because they too understand what's happening, they are just trying to save face

What i am confident however that even if FG agrees and pays 70k MW , it wouldn't solve the problems we have in Nigeria


I think the first thing to do , the only way to ensure this won't backfire is to introduce any policy that'll provide goods and services to ensure there's more goods than demand


For example, before closing up borders, encourage massive importation of food stuffs until we are able to produce enough in the country , at this rate , when these sellers hear increase in salary , they'll double prices of goods too, but if there's excess goods, that won't be the case

My one penny

Are the states also going to pay the same or for federal workers only.

The N45,000 minimum wage will be a welcomed development. That's the only justification to increase pump price to N145. NLC and TUC should please accept this offer whether or not state governments are on board. States will gradually be brought in later, let's start with the federal government first.

In addition, labour should also ask for the immediate payment of all outstanding promotion arrears and 28 days allowance as a condition for accepting the new pump price. This will also go a long way in ameliorating the hardship that the new pump price will have on workers.

Mynd44:
https://www.nairaland.com/3107682/pms-price-hike-fg-labour

Lol. For ur mind now, u don lock the thread

Common 18k state government no fit pay, so na 45k dey go fit pay?

Ok.... Gud developmnt

This is a case of robbing Peter to pay Paul.You want to down size the federal work force thus increase the salaries of the fortunate few.You never think through the consequences of your actions.Many bread winners will be laid off.Poverty will permeate their families and their dependants wil turn nuisance to the society.This adminstraction is a curse.They promise employment to her citizens but is giving unemployment to her citizens.Their apologists still clap for them.
#45,000 minimum wage will be given to the fortunate few that will remain in employment.The dumb handlers of Buhari didn't explain to him the barn wagon effect of already polarize and inflation of the present economy.They are rolling out various anti-people policies without any palliative measures to cushion the effects.

How can states pay when they have already been cornering the 18.000 bailout to settle party loyalists

Cool Story

Lovely, I hope its true

Just observing....

NOW THIS IS WHAT WE CALL SWEET AND BITTER NEWS, the beast and the deep blue sea

With the close to $1 billion saved by gov through the deregulation the new min wage could be feasible. N283=$1 Something has to give.

k

Condolences to the private sector folks.


Meanwhile, would Labour accept the terms that accompany the N45,000 minimum wage? Would Labour accept mass retrenchment and mergers?

I hope you have all see why some of us don't, won't and never support NLC.

Once the minimum wage of civil servants who are government workers has been increased, the useless NLC doesn't care anymore about the private sector workers.

This are(private sector) people who are mostly contract staffs, some who are been paid peanuts, but the useless NLC doesn't care once their own minimum wage has been increased by the government.

Mind you, this increase will affect every Nigerian citizen irrespective of whether you work as a civil servant or not.

The increase will automatically increase the prices of things in the market and there is no price control.

When has the useless NLC talk about stroke when companies outsource vacancies to their cronies and pay those who work half of their true salaries and someone will be sitted somewhere to collect part of the salaries without doing anything.

Are they blind to all the happenings in the country?

I thought the slogan in Labour is 'ONE FOR ALL AND ALL FOR ONE, AN INJURY TO ONE IS AN INJURY TO ALL'.

OgbeniAnonymous:
Govt. needs to compensate the present situation with good correct wages.

correct wages should be 25,000 naira, and increase workforce

NLC must resist every scam.. Nothing less than d reversal of fuel pump price is acceptable.. The minimum wage should be increased however, then after like 6months we can come together again to further discuss subsidy removal

If you have liquid cash better invest it into something now or see it loose value come tomorrow. No longer advisable to save money but spend it as it comes

LoveMachine:
With the close to $1 billion saved by gov through the deregulation the new min wage could be feasible. N283=$1 Something has to give.

how 283b =1.2tr wage bill annually, for federal workforce, what about state workers? what about private sector, what about the unemployed? it wil be impossible

DaBullIT:
All those of you shouting inflation up and down

whot duyu know ?

I for one know that FG won't just agree to 45k MW just like that , so if your hopes are high, keep them down

I also know NLC will not go on prolonged strikes because they too understand what's happening, they are just trying to save face

What i am confident however that even if FG agrees and pays 70k MW , it wouldn't solve the problems we have in Nigeria


I think the first thing to do , the only way to ensure this won't backfire is to introduce any policy that'll provide goods and services to ensure there's more goods than demand


For example, before closing up borders, encourage massive importation of food stuffs until we are able to produce enough in the country , at this rate , when these sellers hear increase in salary , they'll double prices of goods too, but if there's excess goods, that won't be the case

My one penny

I think I will go wif u

this is hilarious. a whole buhari is afraid of "ordinary" labour?

pat077:
Common 18k state government no fit pay, so na 45k dey go fit pay?

if they devalue there will be more Naira from oil sale, it an illusion and feel good approach