Column

As We Await Minimum Wage

Published

14 years ago

July 19, 2011

The spirit of benevolence and collectiveness of President Goodluck Ebele Jonathan was exhibited last year as he announced a new salary structure for civil servants across the country. Indeed, the new salary package was expected to take effect from last year July.

The approval of the new salary structure for workers, President Jonathan said, was in fulfillment of an earlier promise he made during the Workers’ Day celebration on May 1, 2010. His words: We support the right of every worker to earn a living wage for addressing basic necessities of life”

To demonstrate the seriousness of the Jonathan administration to review upward the salary of workers, the Alfa Belgore Committee on amendment of the new national minimum wage, last year July in Abuja, presented to the Secretary to the Government of the Federation (SGF), at the time, a new minimum wage of N18,000 per month, as against the present N7,500.

As it were, the committee proposed that anyone who fails to comply with the new National Minimum Wage Act, when passed by the National Assembly, was likely to pay a fine not exceeding N50,000 and in the case of continuing offence, to pay a fine not exceeding N100,000 for each day the offence continues.

Exempted from the payment of the proposed national minimum wage, are those in “seasonal employment such as in agriculture, workers on part-time basis and allied employment”. It is, however, binding on organisations with 50 employees and above.

Yes, the new N18,000 minimum wage was arrived at by consensus after the social partners agreed that many employers may not be in a position to pay the N22,500 initially agreed on. Unlike the year 2000 minimum wage negotiation, state governments were represented during the present negotiation. This in effect means that civil servants both in the mainstream and the parastatals were to smile home monthly with fat pay envelopes.

Suffice it to say that this gesture, no doubt, has in no mean way demonstrated that Jonathan is indeed a benevolent and liberal man, who imbibes the spirit of the proverb of ‘live and let’s live’. Yes, Jonathan’s gesture also shows that he is caring and carrying along all employees of government.

Sadly enough, in the past few months, speculations were rife that state governors would not implement the new minimum wage, following some pronouncements and insinuation by state governors. The pronouncements, no doubt, dampened the morale of civil servants across the country. But given the Federal Government’s recent move and that of the state governors, the hopes of workers appear to have been rekindled.

Happily, the 36 state governors under the aegis of the Nigeria Governors’ Forum (NGF), last weekend, bowed to pressure of the Nigeria Labour Congress (NLC) and agreed to pay the N18,000.00 minimum wage to their workers.

Addressing newsmen shortly after the forum’s meeting held at the Rivers State Governor’s Lodge, Asokoro, Abuja, Rt. Hon Chibuike Amaechi, chairman of governors’ forum and Rivers State Governor, said it became imperative for the governors to implement the N18,000 minimum wage for workers because there is an Act legalising it and they must comply with the wage Act.

Though Governor Amaechi was silent on when the payment would kick-off in each state while reading the communiqué, but speaking with newsmen later, he stressed that each state was expected to negotiate that with labour unions in their respective states on when the implementation would kick-start. Hear him: “You see, there is no way we can on our own, develop our states without the co-operation of the workers. In fact, we see them as partners and that is why we are appealing to them to shelve their proposed strike. “There is no need for it (strike) again because we have all agreed to pay them the minimum wage, which we also considered to be a law and as law enforcers in our different states, we won’t go against the law” Amaechi said.

Well, unconfirmed reports say some states might get arrears when the states start the new minimum wage implementation, depending on the bargaining powers of their labour leaders and the availability of resources to pay. According to Governor Amaechi, “no governor would want to deprive his workers their benefits because these workers are the engine-room of our states. We won’t have money and begin to say there is no money, after all, we are all working to achieve common goal, which is to make life better for the people”.

Well, now that the federal authorities and the state governors appear to be serious over the minimum wage implementation, it behoves all workers to rise to the occasion and perform their job(s) creditably, to justify the purpose for which they were employed.

But employees in the civil service, being the engine room of government, must redouble their efforts in the discharge of their schedules, as they await the implementation of the new minimum wage.

As the saying goes, “to whom much is given, much is expected. Therefore, public servants must reciprocate the new salary package, although yet to be implemented. They must imbibe the spirit of hardwork in order to improve their productivity.

To achieve this, top government functionaries, must henceforth beam their searchlight on indolent workers, and those found wanting should be shown the way out, no matter whose ox is gored. Yes, they cannot enjoy fat monthly pay envelopes and exhibit indiscipline.

It is common knowledge that government’s job is always seen or regarded as “no man’s job”. That was in the past. It must no longer be so now.

At this juncture, it is also imperative to state that the policy of salary review for civil servants, is one of the devices of any government to move workers on the path of sustainable economic recovery and development.Therefore, the government’s current resolve to review upward the salary of civil servants must be reciprocated (through hardwork) by all concerned.

All said, as civil servants await the new minimum wage, it is hoped that its implementation will not be delayed unnecessarily by the authorities concerned.

Meanwhile, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have insisted that the planned 3-day warning strike, billed to commence today nationwide, must be obeyed by all workers across the country in spite of the promise by the state governors that they would implement the new minimum wage.

The organised labour’s insistence on the planned strike, is premised on the fact that the governors were silent on when exactly they would implement the new minimum wage. The governors are being seen by labour as not sincere and honest over this touchy national issue, hence the insistence on the nationwide strike.

Column

Are the Bears Wrong About the Looming Glut in Oil?

Published

1 week ago

September 8, 2025

The Tide

The oil market is oversupplied while demand growth is slowing down. This has become the dominant assumption among oil traders over the past two years, repeatedly reinforced by analyst outlets. Assumptions, however, are often wrong, especially when not based on physical data.

The International Energy Agency’s latest monthly report, for instance, said that the world is facing a record overhang of crude oil, set to unfold in the final quarter of this year and extend into the first months of 2026.

The expected glut was attributed to lower-than-expected oil consumption in several large developing world markets, combined with rising production in both OPEC+ and elsewhere, notably in the United States, Canada, Guyana, and Brazil.

The investment banks also see a glut, as they tend to do unless there is a war breaking out somewhere.

Goldman Sachs recently forecast Brent crude would drop below $55 per barrel next year, citing a supply overhang of 1.8 million barrels daily at the end of this year, very much in tune with the IEA.

Morgan Stanley is more guarded in its forecasts but still assumes abundant supply, as does ING in most of its regular commodity market notes. But there are some exceptions.

One of these has recently been Standard Chartered, which has bucked the trend of doomsaying among oil price forecasters, noting bullish factors that other forecasters either ignore or overlook.

The other is Oxford Energy, which this week released a report taking a close look at the physical oil market. Surprisingly, for many, the physical market does not show evidence of a glut forming anytime soon.

Crude oil inventories are always a good place to start, and that is exactly where Oxford Energy starts, noting that inventories in the OECD have only gained a rather modest 4 million barrels over the first six months of the year.

This modest increase means OECD oil stocks are still substantially below the five-year average, the research outlet noted, adding that the gap with that average was 122 million barrels.

The inventory situation is similar in the United States as well, even though the benchmarks slide every Wednesday when the U.S. Energy Information Administration reports a crude inventory draw.

Over a longer period, however, inventories have trended down, suggesting demand is pretty healthy and the threat of a massive glut may well be a bit exaggerated.

So, what about inventories outside of the OECD and outside of the United States? China, notably, has been building up its oil in storage, taking advantage of discounted sanctioned Russian crude.

Earlier this year, media reports said Chinese crude oil inventories had hit a three-year high, suggesting demand growth was lagging behind refinery processing rates.

There have also been repeated warnings about slowing oil demand in the world’s largest oil importer—even when imports increase and so do processing rates at Chinese refineries.

Oxford Energy notes, however, that since China does not report inventory information, it is difficult to get an accurate number on oil stocks and estimates produced by data trackers vary too widely to offer reliable information.

Another factor to take into account when studying oil price prospects is floating storage, according to the analysts. This boomed in 2020 when lockdowns decimated demand and supply turned excessive.

After the end of the pandemic, oil in floating storage declined before rising again amid Western sanctions on Russia. Still, Oxford Energy notes, the level of oil in floating storage remains below the levels reached in 2022.

Then there is the matter of oil products. If there is too much supply around, some of it would go into storage—including expensive floating storage—but the rest would be turned into fuels and other products.

Once again, all eyes are on China, where another surprise is waiting. Per Kpler data cited by Oxford Energy, oil product exports from China have not gone higher.

They have actually gone down by 10% and remain weak. One reason for this is, of course, government quota-setting. Another, however, may well be healthy demand for fuels at home.

As the oil market awaits OPEC’s next meeting to start exiting its positions in anticipation of that glut, it may be wise to keep the physical market in mind, along with the fact that the IEA has repeatedly had to revise its own forecasts as physical world data comes in and refutes them.

More interesting, however, is this quote from a recent note from ING analysts: “The scale of the surplus through next year means it’s unlikely the group [OPEC+] will bring additional supply onto the market.

“The bigger risk is OPEC+ deciding to reinstate supply cuts, given concerns about a surplus.”

If there is a massive surplus on the way, any new cuts from OPEC+ should have a limited effect on prices, just as they did over the past two years. But maybe that massive surplus is not so certain, after all.

Column

Renewable Energy Faces Looming Workforce Crisis

Published

1 month ago

August 18, 2025

The Tide

Despite a discouraging political climate and unprecedented uncertainty in the United States clean energy sector, low costs of wind and solar energy continue to drive growth of the domestic clean energy sector.

However, while market forces continue to support the expansion of renewable energy capacity, the sector faces critical challenges extending beyond the antagonism of the Trump administration.

The continued growth of solar and wind power risks being hampered by several mitigating factors, including (but not limited to) intensifying competition over increasingly scarce suitable land plots, stressed and volatile global supply chains, lengthy and unpredictable development processes, Complex and overlapping permitting processes, and a critical talent gap.

The renewable energy labor shortage has been years in the making, but is no less closer to resolution. The issue spans both white collar and blue collar positions, and threatens to kneecap progress in the booming sector.

Between the years of 2011 and 2030, it is expected that global levels of installed wind and solar capacity will quadruple. Analysis from McKinsey & Company concludes that “this huge surge in new wind and solar installations will be almost impossible to staff with qualified development and construction employees as well as operations and maintenance workers.

“It’s unclear where these employees will come from in the future,” the McKinsey report goes on to say.

He continued that “There are too few people with specialized and relevant expertise and experience, and too many of them are departing for other companies or other industries.”

The solar and wind industries are suffering from a lack of awareness of career paths and opportunities, despite their well-established presence in domestic markets.

Emergent clean energies face an even steeper uphill battle. Geothermal energy, for example, is poised for explosive growth as one of vanishingly few carbon-free energy solutions with broad bipartisan support, but faces a severe talent gap and punishingly low levels of awareness in potential talent pools.

But while the outlook is discouraging, industry insiders argue that it’s too soon to sound the alarms. In fact, a recent report from Utility Drive contends that “solutions to the energy talent gap are hiding in plain sight.”

The article breaks down those solutions into four concrete approaches: building partnerships with educators, formulating Registered Apprenticeship pathways, updating credential requirements to reflect real-world needs, and rethinking stale recruitment strategies.

Targeting strategic alliances with educational institutions is a crucial strategy for creating a skilled workforce, particularly in emerging sectors like geothermal energy.

Businesses can, for example, partner with and sponsor programs at community colleges, creating a pipeline for the next generation of skilled workers. Apprenticeships serve a similar purpose, encouraging hands-on learning outside of the classroom. Such apprenticeships can apply to white collar positions as well as blue collar roles.

“If we can figure out a way to educate the younger generation that you can actually have a career that you can be proud of and help solve a problem the world is facing, but also work in the extractive industry, I think that could go a long way,” said Jeanine Vany, executive vice president of corporate affairs for Canadian geothermal firm Eavor, speaking about the geothermal energy talent gap.

These approaches won’t solve the talent gap overnight – especially as political developments may discourage would-be jobseekers from placing their bets on a career in the renewables sector. But they will go a long way toward mitigating the issue.

“The clean energy transition depends on a workforce that can sustain it,” reports Utility Drive. “To meet the hiring challenges, employers will benefit from looking beyond the next position to fill and working toward a strategic, industry-wide vision for attracting talent.”

By: Haley Zaremba

Column

Is It End For Lithium’s Reign As Battery King?

Published

2 months ago

August 1, 2025

The Tide

Lithium-ion batteries power the world around us. Their prevalence in our daily life is growing steadily, to the extent that lithium-ion batteries now power a whopping 70 percent of all rechargeable devices.

From electric vehicles to smartphones to utility-scale energy storage, lithium-ion batteries are increasingly forming the building blocks of innumerable sectors.

But despite its dominance in battery technologies, there are some serious issues with lithium supply chains that make it a less-than-ideal model upon which to base our world.

Not only is extracting lithium often extremely environmentally damaging, it’s deeply intertwined with geopolitical pressure points. China controls a huge portion of global lithium supply chains, rendering markets highly vulnerable to shocks and the political will of Beijing.

China’s control is particularly strong in the case of electric vehicle batteries, thanks to a decade-long strategy to outcompete the globe.

“For over a decade, China has meticulously orchestrated a strategic ascent in the global electric vehicle (EV) batteries market, culminating in a dominance that now presents a formidable challenge to Western manufacturers,” reports EE Times.

The effect functions as “almost a moat” around Chinese battery production, buffering the sector against international competition.

The multiple downsides and risks associated with lithium and lithium-ion battery sourcing is pushing EV companies to research alternative battery models to power the electric cars of the future.

There are a litany of lithium alternatives in research and development phases, including – but not limited to – lead, nickel-cadmium, nickel-metal hydride, sodium nickel chloride, lithium metal polymer, sodium-ion, lithium-sulfur, and solid state batteries.

Solid state batteries seem to be the biggest industry darling. Solid-state batteries use a solid electrolyte as a barrier and conductor between the cathode and anode.

These batteries don’t necessarily do away with lithium, but they can eliminate the need for graphite – another critical mineral under heavy Chinese control. Plus, solid state batteries are purported to be safer, have higher energy density, and recharge faster than lithium-ion batteries.

While solid-state batteries are still in development, they’re already being tested in some applications by car companies. Mercedes and BMW claim that they are already road-testing vehicles powered by solid-state batteries, but it will likely be years before we see them in any commercial context.

Subaru is on the verge of testing solid-state batteries within its vehicles, but is already employing a smaller form of the technology to power robots within its facilities.

However, while solid-state batteries are being hailed as a sort of holy grail for battery tech, some think that the promise – and progress – of solid-state batteries is overblown.

“I think there’s a lot of noise in solid state around commercial readiness that’s maybe an exaggeration of reality”, Rivian CEO RJ Scaringe said during an interview on this week’s Plugged-In Podcast.

Sodium ion batteries are also a promising contender to overtake lithium-ion batteries in the EV sector. Sodium is 1,000 times more abundant than lithium.

“It’s widely available around the world, meaning it’s cheaper to source, and less water-intensive to extract”, stated James Quinn, the CEO of U.K.-based Faradion. “It takes 682 times more water to extract one tonne of lithium versus one tonne of sodium.That is a significant amount.”

Bloomberg projections indicate that sodium-ion could displace 272,000 tons of lithium demand as soon as 2035.

But even this does not signal the death of lithium. Lithium is simply too useful in battery-making. It’s energy-dense and performs well in cold weather, making it “indispensable for high-performance applications” according to EV World.

“The future isn’t lithium or sodium—it’s both, deployed strategically across sectors…the result is a diversified, resilient battery economy.”

By: Haley Zaremba