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Crisis Rocks LM Ericsson, as Mass Sack of Nigerian Workers Looms

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16 years ago

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It is no news that the excruciating heat of the credit crunch is taking serious toll on many businesses in the world and that has been making some companies, out of their managerial defects to layoff their staff in an indiscriminate manner with total disregard to labour legal provisions. No doubt the operations of end-to-end telecommunications infrastructure giant, LM Ericsson in Nigeria may soon be grounded if it carries out its threat to retrench its Nigerian workers.

This is because the morale at the company with headquarters at Walter Carrington Crescent, Victoria Island in Lagos, has hit an all time low now. The workers who have vowed to resist an impending mass sack with everything in them are no longer motivated to put in their best in any way.

Consequently, they are silently protesting the highhandedness of the management of the company which earlier illegally banned them from active participation in unionism.

Huhuonline.com gathered that after Ericsson sent out a circular to members of staff that due to its current reorganisation exercise as a way to cut cost, some of them would be the way out of the company, Nigerian workers in the company could not imagine the justification for the grim news. Sources reckon that the Nigerian operation of the Swedish company has continued to yield a lot of profit for the company despite the economic meltdown that has halted economic activities all over the world. Infact, we learnt that the Nigeria operation is only one of the few operations of the company that has continued to be profitable inspite of the recession.

There are indications that the decision of the company to send local workers packing is fallout of its activities In South Africa. LM Ericsson was said to have ran at a loss in 2008 in South Africa but was unable to retrench workers as a cost cutting measure as a result of strong labour laws in South Africa. The result of its loss in South Africa is now about to be visited on Nigerian workers, as the company feels that anything goes in Nigeria as Labour Laws are hardly recognised let alone been enforced. We also gathered that as a result of protest by Nigerians working in the Company, the management decided to carry out its intention through the back doors. Local workers have been asked to resign and reapply to the company. This was vehemently rejected as it amounts to the same mass purge of the local workers by another deceptive guise. Local workers have continued to mobilise as the management seems detrimental in carrying out its intimidating mass sack threat.

Meanwhile, there are indications that the company may have flouted immigration laws and Expatriate Quota regime in its employment of expatriate staff. Huhuonline.com discovered that foreign workers hired as consultants for just a three month period end up working for the company for years. At a time, it was gathered that there were close to 300, such expatriate consultants who illegally worked for the company. Sources say that the problem is, these expatriates do not contribute as much as the local workers, they are better remunerated. The company accommodates, feeds and places them on a high salary scale, they equally use state-of the-art-official cars.

Huhuonline.com checks also have it that the management of the company has reserved a couple of positions in the company for only expatriate workers despite the fact that there are\several Nigerians better qualified to handle such positions. Hence the tension at the company is now palpable. Though, the Precision Electrical and Related Equipment Senior Staff Association (PERESSA) which is affiliated to the Trade Union Congress of Nigeria is poised for a showdown with the management of LM Ericsson. In a letter dated 30th of October 2009 and signed by T.K. Olatunji, Ag Gen. Sec, the group warned of dire consequences, should the company’s management proceed to retrench local workers in the guise of cost cutting.

However, the group requested for a meeting with the management of Ericsson but threatened to mobilise the full force of the Trade Union Congress of Nigeria for appropriate response, if the planned move is not suspended.

Information gathered at the Nigerian Communications Commission (NCC) for comments showed that the Commission may take actions if LM Ericsson continues to flout Nigerian laws by carrying out actions that are impossible in other countries. L.M. Ericsson is one of the leading telecommunications equipment suppliers in the world and the supplier of choice for Nigeria as most operators deploys for their services. Operators that make use of Ericsson switches and other equipments include MTN, Zain, Zoom Mobile, MTEL and a couple of others. Meanwhile, while LM Ericsson was reacting to this scandal through it Director, HR and Blair Mackenzie maintained that Ericsson like any other global corporations has had to respond to global financial crisis to remain competitive and well positioned for the future, and that Ericsson has embarked on a cost reduction and right sizing exercise and the sub-Saharan part of this adjustment is currently underway and will also affect Nigeria. As a result of this exercise there are likely to be some job losses.

It was further confirmed that the exercise would be handled with utmost sensitivity and professionalism, Ericsson has communicated openly about their structure and potential for redundancies through letters, emails, workshops and all-employee meetings since July 2009, and provided all employees with opportunity to provide feedback on the proposed restructure as well as suggestions for avoiding job losses. For those that could ultimately be affected by the redundancies, Ericsson Nigeria has consulted labour lawyers to ensure that those employees are treated and compensated fairly and in accordance with the provisions of Nigerian labour law.

It is unfortunate to see Nigerian citizens turning out to be an object of ridicule and victims of labour chastisement by foreign nationals, this is one, too many a call. Such national slap is apparently sending a signal that Nigeria is a country where rights of labour can be trampled on without recourse to justice.

However, as a good people great nation, Ministry of Labour and other stakeholders in the country need to look into these irregularities to ensure that the constitutional rights of Nigerians as it relates to labour are not flouted by any alien who would not respect local content and other rules of engagements. It is not just LM Ericsson, there are several other companies in Nigeria found culpable of a similar act. There are cases of machines and chemicals deforming people while in active service and due compensations are not given to them.

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FG Flaggs Of Renewed Hope Employment  Initiative 

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7 days ago

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September 12, 2025

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As part of its programme to empower Young Nigerians with the necessary employability skills, the Federal Government, through the National Directorate of Employment (NDE), has flagged off the second phase of the “Renewed Hope Employment Initiative” (RHEI).
Performing the ceremony in Port Harcourt, the Director General of NDE, Silas Ali Agara, said the second phase of the programme will absorbed over 41,307 youths across the country.
Agara said the first phase of the programme, which was flagged off December 2024, successfully trained 32,692 unskilled and unemployed Nigerians in demand-driven skills across the 36 states and the Federal Capital Territory (FCT).
According to the DG, who was represented by the Rivers State Coordinator of the Programme, Matthew Amala, “The strategic goals were increasing trainee employability, supporting small scale enterprises, promoting agricultural productivity, improving rural infrastructure and providing transient jobs.”
He said, over 5000 beneficiaries were resettled with loans and starter packs, while linkages to credit institutions for those that could not be accommodated under the Directorate’s soft loan scheme was ongoing.
“As we reflect on the achievements of the first phase of the Renewed Hope Employment Initiative, I’m excited that the second phase is being flagged off today.
“In the second phase, NDE will train 41,307 persons in over 30 skills set, ranging from vocational, entrepreneurial, agricultural, ICT, and activities in the public works sector.
“We have improved and digitalized our processes through a robust registration portal fully equipped with scalable backends and geofenced capabilities.
“This has made our processes more transparent, fair, equitable, as well as providing us with a credible database”, he said.
The DG said at the end of the training, a total of 14,457 will be resettled with starter packs to help them establish themselves in their chosen fields.
“It’s our sincere expectation that the participants would be equipped positively with skills to enhance their employability, foster entrepreneurship mindsets in them and improving livelihoods to contribute to their community and the economic growth of the Nation”, he added.
He said despite the challenges of limited budgetary resources, the NDE remains committed to equipping unemployed Nigerians with demand driven skills in order to empower these individuals to become employers of labour and future wealth creators.
John Bibor & Edidiong Johnson
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Kachikwu Makes Case For Increased NCI Fund To US$1bn … Timeline For Developing Oil Blocks

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7 days ago

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September 12, 2025

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Former Minister of State for Petroleum Resources, Prof. Emmanuel Ibe Kachikwu, has canvassed that the $450m Nigerian Content Intervention Fund (NCI Fund) be increased to US$1bn.
He said the increase will be deployed to cater for the funding of mega oil and gas projects, setting up of pipe mills and manufacturing of other critical equipment needed in the oil and gas sector.
Kachikwu also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, saying same condition should also be for firms that win industry contracts based on commitments of investments.
He made these recommendations on Monday at the Business Mentorship Lecture Series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB).
The Tide gathered that the webinar drew nearly 500 participants via Zoom and the Board’s YouTube page.
The former minister, who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment.
According to him, the  fund should include contributions from operators, and other investors in the sector and not just government resources, expressing dismay that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land which has caused huge losses to the nation.
“I like to advise the Government to cancel oil blocks that are not developed after a prolonged period. We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with proviso to invest locally. We need to begin to produce those equipment.
“You’ve to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology?  You need to give a timeline”, he said.
Speaking on the global investments space and how Nigeria can attract funding to the energy sector, the former minister argued that there was a lot of money waiting to be tapped, saying that however it is only going to countries where there is a perception of regularity.
“Nigeria’s image needs to improve, while the Government also needs to create the right investment climate to attract investment. There’s enough investment money out there if you have a holding of hands.
“They need to portray Nigeria as the place you can put money and get good returns. Government should consider co-investing with private companies if there are good prospect of returns”, he added.
The erstwhile Petroleum Minister lauded the transformation in the oil and gas sector with indigenous firms like Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas and others acquiring assets from divesting international oil companies (IOCs).
“Mere ownership transfers are insufficient without enhanced output, management, revenue returns and compliance with extant laws.
“My greatest fear is that without principled accounting, supervision, and effective oversight, indigenous companies may profit while the federal government loses revenue. There’s the need to involve local communities to avoid past disconnects that fueled conflicts”, Kachikwu said.
He also commended the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, for upholding the agency’s mission and recording significant strides since assumption of office.
Reflecting on the NCDMB  Scribe’s pivotal role in shaping the Board, Kachikwu emphasized that advancing local content was a core pillar of his tenure as Minister and chairman of the NCDMB Board, noting that local content is not just a slogan, but rather a tool for industrialisation, job creation, and knowledge transfer.
“There should be consistency of policies. For too long, foreign companies dominated every segment of the sector, while our people remained bystanders.
“My message to young professionals is clear: the oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills. They require adaptability, creativity, and a deep sense of responsibility to both people and the environment.
“The industry is not just about barrels and dollars. it’s about national survival, community welfare, and the environment. Achieving your career goals is a marathon, not a sprint. Patience and endurance are essential. Self-Belief is Crucial.
“Confidence in yourself and your abilities will fuel your progress and help you overcome challenges. Principles matter: Let your ethics and integrity be a guiding light. Build relevant skill sets. Equip yourself with the skills that make you competitive and adaptable in the job market”, the former Minister urged.
Earlier in his welcome address, the Executive Secretary of the NCDMB’s Director of Capacity Building, represented by the Director of Capacity Building, Engr. Abayomi Bamidele, underscored the Business Mentorship Lecture Series’ role in fostering trends and mind-sets for excellence.
Hee said the lecture series was organised in furtherance of the Board’s mandate in sections 67 and 70n of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance Nigerian Content.
In his closing remarks, General Manager, Corporate Communications, NCDMB, Dr. Obinna Ezeobi, praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector.
He also thanked the guest lecture for his contributions to the NCDMB, recalling his sign-off on the Waltersmith Refinery investment, which became a successful project and the launch of the US$200m NCI Fund, which has grown into US$450m, now managed by the Bank of Industry and Nexim Bank.
“NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content. The Board is committed to supporting Nigerians and local oil and gas firms to grow sustainably in the sector, hence it organises the Business Mentorship Lecture Series.
“We want to assure you that this Mentorship series will continue as a key platform for engaging and educating stakeholders of the industry. I also want to urge interested listeners to visit NCDMB’s YouTube channel to watch the recording of the webinar”, he said.
Ariwera Ibibo-Howells, Yenagoa
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FG Embarks On Sanitizing Mining Industry 

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7 days ago

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September 12, 2025

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The Federal Government has embarked on sanitizing the mining industry, as concrete steps are being taken through the Mining Cadastre’s office to put things in order.
Already, some of the mining licences have been revoked, and more mining licences will be revoked, as part of ongoing efforts to sanitise the solid minerals sector, as well as to protect investors from fraudsters.
Director-General (DG) of the Mining Cadastre Office, Obadiah Nkom, who disclosed this on a live conversation on X (formerly Twitter), said the move was aimed at driving transparency and order in Nigeria’s solid minerals sector.
According to the DG of the Federal Government agency, the clean-up exercise, which covers expired, speculative, and inactive titles, is necessary to make room for genuine investors and ensure compliance with the law.
Nkom disclosed that the agency had identified about 4,709 licences, including 1,400 expired titles, 2,338 refused applications, and 971 notifications of grant where applicants failed to pay, which led  to an outright revocation by the Minister of Solid Minerals Development, Dele Alake.
The DG stressed that the revocation was not punitive but part of a deliberate sanitisation process to weed out speculators who hoard licences without adding value to the economy.
Nkom explained that the exercise had already boosted investor confidence in the sector.
“When you talk about backlog, for now, the ministry has had reasons to clear or revoke close to 4,709 mineral licenses. There were implementations in terms of revoked expiring titles of up to 1,400 licenses.
“We have had reasons to refuse  2,338 applications in the system. We have had a mineral title notification of 971. Can you imagine 971 notifications of grants that were notified, but did not come to pay.
“There are even instances where some people have collected the grants, but they refuse to pay. So what do we do? So this cleaning exercise that we are doing is to be able to now create that space in the minefield for people.
“So, imagine having over 4,709 erased from our system by way of revocations implemented. It has sanitised our sector, and investors now know that if they are not going to be involved in exploration and value addition, there will be consequences.
“We are cautious. We follow the law. And this is why I repeat, we have had 100 per cent success in litigations because we are an agency compliant with the provisions of the Act.
“Where we are wrong, we do not shy away from trapping ourselves and doing the right thing. I would hope that at the end of the day, we will not have any risk by following the provisions of the Act”, he said.
Recall that the minister in 2024 revoked 924 licenses over failure to pay statutory charges and fees due for the Federal Government through the Mining Cadastral Office.
He warned licensees yet to resume work on their mining projects to do so immediately.
Corlins Walter
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