Connect with us

Editorial

Lessons From PDP Convention

Published

on

After weeks of uncertainty and apprehension, the coast became clear for Nigeria’s leading opposition, the Peoples Democratic Party (PDP), to hold its national convention on October 30 and 31. The Court of Appeal had a day before the event dismissed a suit filed by the embattled National Chairman of the party, Uche Secondus, challenging his suspension months ago. The court likewise declined to halt the conduct of the convention.
Secondus had asked the appellate court to nullify his suspension, indicating that Section 59 (3) of the PDP Constitution affirmed that the ward or the state executive committee of any state has no authority to suspend any national officer of the party. He repeatedly requested that he be obliged to conclude his tenure on December 9, 2021, having been elected for a four-year term.
He also asked the court to set aside the orders of the Rivers and Cross River High Courts, which had earlier restrained him to stop parading himself as the national chairman. But a three-member panel of justices of the Appeal Court headed by Haruna Tsammani said it found no merit in Secondus’ appeal, maintaining he renounced his position since he did not challenge his removal at ward and local government levels.
Amidst its nagging legal conundrums, the PDP headquarters, until recently, was divided, with some members calling for the outright exit of the embattled chairman while others backed him to lead the party into the convention. Undoubtedly, some party organs were split over Secondus’ fate.
With the legal hurdle cleared not fewer than 3,600 delegates of the party assembled at the Eagle Square in Abuja to elect new members into the National Working Committee (NWC). Before the beginning of the convention, the Chairman of the National Convention Organising, Governor Ahmadu Fintiri of Adamawa State, had blustered that the opposition party was bracing for the occasion and promised that it would be the best-organised convention in the country.
Indeed, the convention was hitch-free and memorable for the PDP, as all or most of the officers emerged via consensus. Consensus is part of the democratic process and we expect the opposition party to use the new officers who emerged through the process to stabilise the party. The new leadership will assume duties on December 9 to enable the outgoing NWC members to conclude their four-year tenure, which began on December 9, 2017.
The convention was a display of intrigues and power play, which saw the governors in the party growing up as an effective team against the veterans who have been calling the shots in the past. Obvious from the outcome of the convention is that governors now have unrestricted domination of the party. The event was again a pathway for the presidential aspirants to proclaim their plans, as they all displayed posters and banners to let the members know that they were coming out for the primaries of the party.
The machinery put up by the elders and presidential hopefuls, like the erstwhile Vice President Atiku Abubakar, former governor of Jigawa State, Sule Lamido, former Senate President Bukola Saraki and others, to make Oyinlola and Ciroma emerge, failed as the governors had their way. Atiku, Saraki, Lamido and others had wanted Ciroma and Oyinlola to diminish the prevailing influence of the governors.
Though the October PDP national convention has come and gone, there are many lessons it demonstrates. First, we must applaud the PDP for holding a rancour-free convention that saw 19 of the 21 available positions won by consensus. That three of the candidates persuaded to step down for a favoured candidate by the powerful governors refused to do so, helped to legitimise the consensus arrangement, as it suggested that it was arrived at through persuasions and negotiations and not through fiat. This is recommended as a standard for political parties in Nigeria.
Second, despite all the pre-convention fears and nervousness stemming from the grim effort of Secondus to scurry the exercise, the main opposition party stood united and came out of Eagle Square unscathed. This has entrenched it in a position to salvage Nigeria from the maladministration of the All Progressives Congress (APC) government. This is again illuminating.
A further lesson to pick up from the convention is the crisis management mechanism of the PDP, which turned out to be more efficient than those of other political parties. The dominant opposition party has always overcome its challenges because perhaps the party has the most sophisticated people. For crushing the leadership crisis which would have blighted the last convention, the former ruling party has confirmed to Nigerians that if trusted again, it will do even better than before.
As the PDP basks in the splendour of a magnificent exercise, it has become indeed more sanguine to put the APC on notice that it is coming for its positions in 2023. This could be a manifestation that the key opposition party is fully back on stream. With a successful convention, the PDP may have challenged the APC with 92 chairmen in 36 state chapters to accomplish a comparable performance in their elusive convention.
Given the manner the opposition party handled its recent national convention and leadership crisis, not a few watchers of the nation’s democracy believe it has the potential to put up an excellent battle in the 2023 elections. However, while the hurdle of its leadership situation may have so far been managed from imploding by its governors, the challenge of holding the centre until the next general elections and wooing back its key players lost to the APC lately remains ambiguous.

Continue Reading

Editorial

Towards Minimum Wage Implementation 

Published

on

It is not surprising that organised labour is pushing for a wage review, as President Bola Tinubu’s economic re-
form has negatively impacted Nigerian workers. Since taking office last May, the economy has been in turmoil, leading to hardships for many employees. The need for a wage increase is vital as workers continue to bear the brunt of the economic downturn.
The implementation of minimum wages in Nigeria has historically faced several obstacles. Despite the government’s mandate to set and enforce a minimum wage for all workers, many employers, particularly state governors and in the informal sector, fail to comply. This widespread non-compliance undermines the objective of protecting workers from exploitation and ensuring a basic standard of living.
Numerous factors contribute to the challenge of implementing minimum wages in Nigeria. One major issue is the lack of effective enforcement mechanisms. The National Salaries, Incomes and Wages Commission (NSIWC) is responsible for enforcing the minimum wage, but its powers are often limited. Employers who violate the law often go unpunished due to weak enforcement and the high cost of legal proceedings for workers.
In the negotiations between the federal and state governments, a critical factor that must be considered is finding the right balance amidst the challenges posed by the country’s double-digit inflation rate, the growing national debt profile, and the pressing issue of ensuring timely payments from both state and federal authorities. Both levels of government must collaborate to address these economic concerns and come to a mutually beneficial agreement that prioritises the financial stability of the nation.
Things are not looking good. The organised labour, represented by the Nigeria Labour Congress and the Trade Union Congress, has proposed an astronomical jump from the current N30,000 per month to N650,000. While it is undeniable that the current rate of N30,000 is insufficient, the drastic increase to N650,000 is simply not realistic and may not be feasible for the government to implement. Both parties should find a middle ground that is fair and sustainable for all stakeholders involved.
The challenge before the minimum wage committee, which Tinubu inaugurated recently, is to find a realistic rate for all the parties concerned, including the private sector. This task is not an easy one, as there are various factors to consider when determining a fair minimum wage that benefits both workers and employers. The committee will need to take into account the cost of living, the current economic situation, as well as the financial capabilities of businesses, especially small and medium-sized enterprises.
Incidentally, the Nigerian economy is facing multiple challenges at the moment. With inflation at a staggering 29.90 per cent, a debt stock of N87.9 trillion, a high lending rate of 18.75 per cent, and a grossly devalued naira at N1,300 per $1, the cost-of-living crisis has worsened. The recent surge in food inflation, jumping to 35.41 per cent in January from 23.75 per cent the previous month has added to the economic woes. Moreover, the rapid price increases in petrol and diesel, essential for the economy, have further burdened the already distressed population.
Hence, the demand by labour for an upward wage review is justified given the rising cost of living and inflation. However, the government faces a dilemma in determining the appropriate rate of increment. Nigeria’s economic situation is dire, with debt servicing consuming a staggering 99 per cent of its revenue in the first quarter of 2023. Balancing the need to improve workers’ welfare with the constraints of the economy is a delicate task. The government must engage in constructive dialogue with labour to find a compromise that addresses their legitimate demands while ensuring the long-term sustainability of the economy.
Incidentally, the meeting between the Federal Government and the organised labour was deadlocked on Wednesday, as the government was reported to have offered a paltry N48,000 as the new minimum wage, which is a far cry from the N615,000 being demanded by labour.
Apparently irked by the Federal Government’s offer, representatives of labour were said to have stormed out of the meeting in protest. However, both parties still need to find a common ground to resolve this knotty issue. Constructive dialogue is key.
If the government succumbs to labour’s demands and borrows more to fund the wage increase, its financial stability will be further compromised. This could lead to a debt crisis, with severe consequences for the economy. The governing authorities must explore alternative revenue sources and implement prudent fiscal measures to address labour’s concerns without jeopardising the nation’s financial health.
Retrospectively, an excessively high minimum wage can pose challenges for States. When the wage was raised to N18,000 during the Goodluck Jonathan era, many States struggled to meet their salary obligations. As of October 2023, BudgIT reported that 15 states were still failing to pay the N30,000 minimum wage set by the Muhammadu Buhari administration in 2019. This situation has dire consequences for workers, who rely on their wages for sustenance.
The inability of States to pay the minimum wage is often attributed to their limited economic viability. Data from Economic Confidential indicates that only seven States are economically viable without federal allocations. This means that the majority of States rely heavily on federal support to meet their financial obligations. When the minimum wage is raised too high, States with weak economies may find it difficult to balance their budgets and fulfill their responsibilities to both workers and other sectors.
Any minimum wage that will be agreed upon should be sufficient to meet the needs of Nigerians. Unfortunately, many state governors have failed to implement the wage award approved by the Federal Government for civil servants, despite the high cost of living. This lack of action is unacceptable and shows a lack of appreciation for the struggles that public sector workers face. State governors should prioritise the well-being of their employees and ensure that they are able to make ends meet with the wages they receive.
We firmly advocate for the autonomy of state governments to streamline their workforce by retaining only those workers who demonstrate productivity. An example of this would be questioning the necessity of hiring typists in the era of advanced technology. Additionally, the rationale behind employing 20 drivers within a government agency deprived of operational vehicles may also be subject to scrutiny.
Many governors overlook the importance of paying their workers properly, which can have a positive impact on the overall productivity and economic growth of their States. States should have thriving industries that can create employment opportunities. Governors need to understand that low consumer demand can hinder the growth of businesses in their domains. They have to consider implementing efficient wage systems to ensure fair compensation for workers and foster economic development.

Continue Reading

Editorial

Diesel Price Cut, Building On Dangote’s Example

Published

on

In a critical move, the Dangote Refinery has announced a further reduction in the price of diesel, bringing it
down to N940 per litre for customers purchasing 5 million litres or more directly from the refinery. This represents a notable decrease from the previously reported N1000 per litre, offering significant savings for bulk buyers. The price reduction is a testament to the refinery’s commitment to providing competitive pricing and supporting businesses in Nigeria’s growing industrial sector.
The Refinery, once fully operational, is expected to have a significant impact on the Nigerian economy by reducing the country’s reliance on imported refined petroleum products. The refinery’s ability to produce vast quantities of high-quality diesel will not only meet domestic demand but also create opportunities for export, potentially generating valuable foreign exchange for Nigeria.
The reduction in diesel price is also expected to have positive implications for various industries that rely heavily on diesel as a fuel source. Industries such as transportation, manufacturing, construction, and agriculture are likely to benefit from the lower fuel costs, leading to increased productivity and efficiency. This, in turn, can contribute to economic growth and job creation throughout the country.
This was announced by the Refinery’s spokesperson, Tony Chiejina. The statement read in part:
“In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1,200 to N1,000/litre. While rolling out the products, the refinery supplied at a substantially reduced price of N1,200/litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600/litre. This significant reduction in the price of diesel at Dangote Petroleum Refinery is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country”
Reacting to the price reduction, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, Mohammed Shuaibu, said, “This is a welcome development and I am happy to hear this news because it will further increase competition in the downstream which will benefit many Nigerians. Such competition would create room for more price reduction and we are going to start seeing the positive impact on the cost of goods and services on the long run.”
Commending the company’s efforts, President Bola Tinubu described the move as an “enterprising feat” and said, “The price review represents a 60 per cent drop, which will, in no small measure, impact the prices of sundry goods and services.” In a statement signed by his Special Adviser on Media and Publicity, Ajuri Ngelale, Tinubu affirmed that Nigerians and domestic businesses are the nation’s surest transport and security to economic prosperity.
Dangote’s decision to reduce diesel prices has been met with widespread approbation and is expected to have vital positive impacts on the Nigerian economy. The price reduction has sparked a gradual decline in the prices of locally-produced goods, such as flour, as businesses are now paying less for diesel. This reduction in production costs is likely to trickle down to consumers, resulting in lower prices for essential commodities. Businesses will have more disposable income to invest in production and expansion.
Moreover, the trickle-down effect of this singular intervention promises to change the dynamics in the energy cost equation of the country, in the midst of inadequate and rising cost of electricity. The reduction will also have far-reaching effects in critical sectors like industrial operations, transportation, logistics, and agriculture. A lot of companies will be back in operation.
Aliko Dangote, Nigeria’s foremost industrialist, has a big role to play in alleviating the economic burden faced by Nigerians who rely on Premium Motor Spirit (PMS). By concertedly including the production of PMS in his business operations, Dangote can make a substantial contribution to reducing the nation’s dependence on imported fuel and easing the financial strain on its citizens. The business mogul’s vast resources and expertise in the manufacturing sector make him ideally positioned to lead this initiative.
Furthermore, local PMS production would stabilise fuel prices and protect Nigerians from the volatility of the global oil market. The country’s over-reliance on imported PMS has made it susceptible to price fluctuations, which have a ripple effect on the cost of goods and services. By producing PMS domestically, Nigeria can gain greater control over its fuel supply and mitigate the impact of external factors on its economy.
If truth be told, Dangote has built an image for himself as one among the few genuine and credible rich persons who have successfully synergised industry with philanthropy. Nigerian entrepreneurs and investors should emulate the iconic businessman by channelling ideas and resources into areas of the economy that stimulate growth, with long-term effect on job creation and poverty reduction. We laud the Dangote Group for the vision behind the refinery.
Nigerians, who have been granted licences to establish private refineries should make haste. The establishment of private refineries will create numerous economic benefits. It will reduce the country’s dependence on imported fuel, leading to savings in foreign exchange. Additionally, it will create jobs in various sectors, including construction, engineering, and oil and gas operations. Moreover, the increased availability of locally refined products will stabilise fuel prices and enhance energy security.
Delay in the establishment of these refineries could have adverse consequences. Nigeria continues to lose billions of dollars annually on refined fuel imports, draining its foreign reserves and putting pressure on the local currency. Furthermore, the scarcity of refined products often results in fuel shortages, causing economic disruptions and hardship for citizens. Therefore, it is crucial that the licencees expedite the construction and commissioning of their refineries.

Continue Reading

Editorial

Obaseki, Beyond The New Minimum Wage 

Published

on

In a move that has elicited both excitement and anticipation, the Edo State Government has announced a sub-
stantial increase in the minimum wage for its civil servants. Governor Godwin Obaseki made the declaration during the commissioning ceremony of the newly built Labour House. The new minimum wage, which has been raised from N40,000 to N70,000, represents a 75 per cent increase. The implementation of the new wage took effect from May 1, 2024.
This announcement has been met with widespread joy and relief among Edo State civil servants, who have long yearned for an upward review of their salaries. The increase is expected to go a long way in alleviating the financial challenges faced by many workers and improving their overall living standards. It is also seen as a testament to the Governor’s commitment to the welfare of his employees and his understanding of the economic realities faced by the workforce.
Recall that the upward review in the state’s minimum wage has been a forward-thinking decision. It all started with Senator Adams Oshiomhole, who raised it from N18,000 to N25,000 during his time in office. The current Governor jacked it up even further to N40,000. This gradual increase in the minimum wage shows a growing understanding of the necessity for adjusting wages to keep up with the increasing cost of living and to ensure a decent standard of living for all residents. The actions demonstrate a commitment to economic stability in the state.
The increasing inflation rates in Nigeria have sparked a dispute between the Nigeria Labour Congress (NLC) and the Federal Government over the national minimum wage. The NLC is pushing for a raise in wages to help workers cope with the rising prices, driven by the inflation rate reaching 33.2 per cent in March 2024, up from 31.7 per cent in February. Food inflation also climbed to 31.7 per cent in March from 30 per cent in February, adding to the urgency of the NLC’s call for a wage adjustment to match the cost of living.
The NLC and the Trade Union Congress (TUC) have jointly proposed a minimum wage of N615,000 for workers in the country. This demand was made after President Bola Tinubu, through Vice President Kashim Shettima, established a 37-member panel at the Council Chamber of the State House in Abuja on January 30. The panel is tasked with reviewing the current minimum wage and making recommendations for a new one.
Labour unions’ proposal is based on several factors, including the rising cost of living, inflation, and the need to improve the welfare of workers. They argue that the current minimum wage of N30,000 is no longer adequate to meet the basic needs of workers and their families. They also point out that the proposed N615,000 minimum wage is still significantly lower than the living wage, which is estimated to be around N800,000.
There is no formal response to the organised labour’s demand. However, negotiations are ongoing with the unions to find a compromise. The government may take into account the recommendations of the 37-member panel before deciding on the new wage. The outcome of the negotiations will greatly affect the lives of Nigerian workers. A higher take-home could give workers a necessary boost in income, helping them meet their essential needs and enhance their quality of life.
Governor Godwin Obaseki’s decision to increase the minimum wage for workers in his state is a testament to his commitment to improving the lives of the working class. This bold move demonstrates his understanding of the challenges faced by Edo civil servants and his determination to address their concerns. By ensuring that workers receive a living wage, Obaseki may not only be fulfilling his campaign promises but also setting a precedent.
Obaseki’s labour-friendly approach is a refreshing change from the past, when workers’ rights were often ignored. His willingness to engage with labour unions and negotiate a fair wage agreement even before a new national minimum wage is declared, shows that he values the contributions of the working class. The prioritisation of workers’ welfare will surely create a conducive environment for businesses to thrive and for the state to prosper.
In response to this generous act, Edo workers have a moral obligation to reciprocate by enhancing their productivity and demonstrating an unwavering commitment to their duties. They can justify the investment made in their welfare if they work harder. This enhanced productivity will benefit the state government and have a positive impact on the citizens they serve. Efficient and effective service delivery will foster a more conducive environment for advancement.
Beyond the commendable wage increase for workers in the state, the government has the responsibility to reposition the civil service for enhanced effectiveness and productivity. This strategic move would not only demonstrate the authority’s genuine concern for the well-being of its staff but also lay the foundation for a more efficient and responsive public service system.
Reforming the civil service entails implementing comprehensive reforms aimed at modernising its operations, streamlining processes, and fostering a culture of innovation and excellence. This can be achieved through initiatives such as digitalisation, capacity building, performance management systems, and merit-based promotions. These measures can empower civil servants with the tools and knowledge necessary to deliver exceptional services to the citizens of the state.
An effective and productive civil service is essential for the smooth functioning of any government. It is the backbone of governance, responsible for implementing policies, providing essential services, and ensuring accountability. The new minimum wage can create a workforce that is motivated, skilled, and committed to delivering optimal results. This, in turn, will enhance the government’s ability to meet the needs of its citizens and drive socio-economic development in the state.
In line with Obaseki’s actions, state governors should proactively review their employees’ salaries. It is unacceptable that many governors are still unable to meet the current N30,000 minimum wage requirement. This not only constitutes a blatant breach of the law but also signifies a grave betrayal of the trust entrusted upon them by the workers. Governors hold the pivotal duty of guaranteeing equitable pay for their employees to sustain a respectable standard of living. The failure of some of them to adhere to the minimum wage standards greatly contributes to the prevailing poverty and inequality in the nation.

Continue Reading

Trending