The Nigeria Employers’ Consultative Association, NECA, Manufacturers Association of Nigeria, MAN, and the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, have blamed hastily implemented government policy shifts without corresponding plans to mitigate the negative effects of the inception of the present government for the socio-economic crises confronting the country currently.

The trio spoke separately on the issue yesterday, with NECA saying major policy shifts undertaken by the government in 2023 and the adverse impacts they had across various sectors, are having terrible effects on businesses and the national economy.

President and Chairman of Council, NECA, Mr Taiwo Adeniyi, at the 67th Annual General Meeting, AGM, of the Association yesterday in Lagos, lamented that the combination of fuel subsidy removal, and exchange rate liberalization have significantly created market distortions and increased the cost of doing business, leading to a contraction in business activities since mid-2023.

He said: “It is no longer a secret that private businesses in the economy are beset with innumerable challenges, pushing many to the realm of mere subsistence.

‘’A good number of these private businesses continue to exist due to sheer determination and doggedness of the owners and investors, who are committed to supporting the economy.

‘’We commend the Federal Government for its various policies aimed at improving the operating environment and for establishing the Presidential Committee on Fiscal Policy and Tax Reforms.
“As we await the committee’s report, we believe the recommendations will be business-centric and given quick implementation attention by government.”

Our concerns

Notwithstanding the ongoing support by the government, Adeniyi listed six key concerns of businesses including the high cost of doing business due to depreciation in the value of the naira, increased Customs forex rate for clearing of cargoes, business-antagonistic regulations, proliferation of provocative taxes/levies and oversight functions of the National Assembly.

He said: “Private businesses are struggling with high production costs due to increased import bills for foreign inputs and raw materials. Before the liberalization of the forex regime, N460 was exchanged for US$ in the official market and about N750/US$ in the parallel market.

“After the policy, the exchange rate soared to N1600/US$, significantly raising import costs for the private sector. To address these challenges, we urge the Federal Government to review the current forex liberalization policy and adopt a more guided forex management procedure that supports domestic production.

“The upward review of Customs rate for cargo clearance to N1,413/US$ from N952/US$ in February 2024 has severely impacted businesses. These increases depleted the working capital of businesses, increased cost of production and drove up commodity prices, while also reducing household purchasing power.

‘’It has also contributed ominously to the general contraction of private businesses in the economy. Therefore, we urge the government to embark more on policies that are not only pro-business but also drive production and ensure job creation.

“In recent times, we have witnessed a proliferation of unfriendly and unjustifiable regulations aimed at organized businesses. It is our firm believe that regulations are meant to promote businesses and not to stifle them.

“Some of the recent regulations have become a source of shock and distraction to organized businesses, even though some of them were eventually suspended. For instance, the recent ban on alcoholic beverages in small packs by the National Agency for Food and Drug Administration and Control, NAFDAC, caused significant anxiety in the sector before being suspended after lengthy engagement with the government.

‘’We, therefore, urge the government to always conduct exhaustive consultation with private sector stakeholders on policy issues and act in the overall interest of the country within the prevailing circumstances.

“In recent times, we have observed several new taxes being imposed on private businesses by the Federal Government agencies. While we have witnessed the introduction of new taxes and levies, we commend government’s bold initiative of inaugurating the Taiwo Oyedele led Presidential Committee on Fiscal and Tax Reforms.

‘’It is hoped that the recommendations of the presidential committee will usher in a new dawn in tax administration in Nigeria.

“For over 10 years, we have witnessed the incessant invitation of organized businesses by different committees of the National Assembly on issues within the purview of the executive arm of government.

‘’Constitutionally, the National Assembly’s oversight function does not extend to private businesses. This responsibility lies with the ministries, departments, and agencies, MDAs, of the government.

‘’These invitations have caused significant distress to businesses, consuming time and resources. Although NECA has ongoing litigation on the dimension of the exercise of the oversight function with the Supreme Court, we urge the committees of the National Assembly to exercise their oversight responsibilities within the confines of the constitution.”

MAN blames forex, power, inflation

Reacting, the Manufacturers Association of Nigeria, MAN, also identified foreign exchange (FX) volatility, inadequate power supply and high inflation as some of the topmost challenges they encountered in their operations in the first quarter of 2024 (Q1’24).

This, according to it, led to a further surge in production and distribution costs by 20.7 per cent within the period.

MAN based its position on the response of chief executive officers in the manufacturing sector on a survey it carried out.

The Manufacturers CEO Confidence Index, MCCI, Q1’24 survey report stated: “The list of manufacturers’ challenges include unstable and high exchange rate/scarcity of FX; inadequate power supply/frequent power outages; high inflation/high operating cost (of raw materials, labour, equipment and maintenance); high cost of energy (petrol, diesel, gas); high and multiple taxes, charges and levies, among others.”

Commenting, the Director General of MAN, Segun Ajayi-Kadir, said: “The subdued performance of the sector is attributed to some ongoing harsh economic reforms that have compounded the long-standing challenges confronting the sector.

‘’This is confirmed by the finding of this report which reveals that forex scarcity, inadequate power supply, high inflation, rising energy cost, multiple taxation, policy inconsistency, exorbitant interest rate, poor infrastructure and high logistics costs are the top ten challenges depressing productivity in the sector.

“MAN expects government to frontally address insecurity, improve electricity supply, promote fiscal sustainability, and ensure policy consistency.’’

NACCIMA seeks improved public finance management

Similarly, the Director General, Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, Sola Obadimu, said: “The cost of doing business continues to rise almost on a daily basis.

‘’That’s neither healthy for business operations nor planning. Due to rising interest rates, MSMEs may not have the financial capacity to borrow. Large businesses may also prefer to downsize rather than borrow at current rates.

“With decreasing production due to high cost of funds, unemployment may worsen with the possibility of an increase in crime rates. Unfortunately, in the midst of all these, there seems to be a deliberate effort to aggressively pursue tax drive policies.

“Certainly, there is a need for an improvement in public finance management to ameliorate the harsh economic environment.”

NLC threatens to shut Nigeria

Meanwhile, in his goodwill message at the NECA AGM, President of Nigeria Labour Congress, NLC, Joe Ajaero, solicited the support of NECA for a better wage for workers, saying it was not about figure but the value of money.

Ajaero said: “Fair wages are not just a matter of social justice; they are also instrumental in boosting worker’s productivity and, consequently, the bottom line for employers. Enhanced purchasing power among workers will lead to increased consumption, thereby addressing the concerns of rising inventories in warehouses.

‘’We have advocated from the beginning of our engagement on the national minimum wage fixing exercise for the need to put more money in the hands of workers. We made this case on the understanding that it will help our businesses and rev up the economy.

‘’We had strongly believed that your organization would have been one with us and would have seen that we are actually making a great case for the survival of your businesses. We do not have any interest in crippling our businesses because you cannot cut your nose to spite your face.

‘’It is on this premise that we urge members of NECA to join us in the quest for a national minimum wage that will eliminate deep poverty from the lives of workers; wages that will not increase the number of the working poor and amount to a starvation wage for Nigerian workers is what we should all push for.

‘’The only way to break the present consumer resistance is to increase the wages of workers and that speaks to the policy of government that seeks to reflate the economy. It is not by giving handouts or reducing Nigerians to beggars who must queue at the various charity parks before they can eat.

‘’We must join hands to stop this collective slide into the pit. We must save our businesses by saving workers. N250,000 as national minimum wage is already a steep consideration by Nigerian workers.

As we are speaking now, the House of Representatives and the Senate are meeting to make sure they decentralize wage.

‘’We all know that wage in International Labour Organisation, ILO, is a national law and Nigeria will not be an exception. We will also demand that the wages of political officeholders and others are brought under minimum wage.

‘’You cannot be in the Senate and you are under minimum wage and not legislate for a better wage We should know your wage, we should know what you are earning. If you are a governor, you have security vote that is unaccounted for. If you have excess funds, you will not know that people are suffering.

“But if everybody is brought under the minimum wage, even if the governors want to create level 18, 19, or 20 for them, they all should come under the wage system. That is the only way it is going to work.

“If it is possible, both the House of Representatives and the Senate should be on part-time basis.
‘’Let it be based on professional callings. If you are a lawyer, a doctor, you have a business or profession of your own. If they meet three times a week, then the remaining days in the week, you go on with your businesses because the money being spent at the National Assembly is unimaginable. ‘’Unless we address this, the country will continue to go down and the gap between the rich and poor will continue to widen.

Later, in a chat with journalists after his remarks, Ajaero warned that should the governors and members of the National Assembly succeed in deregulating the minimum wage, Organised labour would shut the country for one month.

He insisted that by the International Labour Organization, ILO, Convention 131 ratified by Nigeria, minimum wage is a national issue, warning that organised labour would not accept a situation where governors, working with the members of the National Assembly, imposed slave wage and poverty on workers and Nigerians.

“As we are here, a joint committee of the Senate, the House of Representatives, and the Judiciary are meeting. They have decided to remove section 34 from the Exclusive legislative list to the concurrent list so that state governors can determine what to pay you and so that there will be no minimum wage again.

‘’You cannot decide what you should earn. The very moment the House of Representatives and the Senate come up with such a law that will not benefit Nigerian workers, they will be their drivers and gatemen, and there will be no movement for one month.

‘’We cannot accept any situation where the governors and the National Assembly members will foist a slave wage on workers and force poverty on the citizens. Organised ‘labour will not accept it,’’ Ajaero said.

[Vanguard]

The Nigeria Labour Congress, on Tuesday, threatened to shut down the country for a month in protest against plans by the National Assembly to deregulate the national minimum wage.

NLC’s threat came as the nation awaits a new national minimum wage following months of negotiations between Organised Labour, the Federal Government, and the Organised Private Sector.

NLC President, Joe Ajaero, declared the position of the union while speaking on the sidelines of the 67th Nigeria Employers’ Consultative Association Annual General Meeting in Lagos.

Ajaero said, “As we are here, a Joint Committee of the Senate, the House of Representatives, and the Judiciary are meeting. They have decided to remove section 34 from the Exclusive legislative list to the concurrent list so that the state governors can determine what to pay you and so that there will be no minimum wage again. You cannot decide what you should earn.

“The very moment the House of Representatives and the Senate come up with such a law that will not benefit Nigerian workers, they will be their drivers and gatemen, and there will be no movement for one month. We cannot accept any situation where the governors and the National Assembly members will foist a slave wage on workers and force poverty on the citizens. Organised Labour will not accept it.”

The NLC president further stated that “We don’t have a situation where people determine their wages that amounts to some level of illegality. In the constitution, there is a provision for equal work for equal pay. If we go into job analysis and job evaluation, we may discover that a clerk here may be doing the same work as the clerk in Sokoto.

“The so-called decentralisation of wages to pay somebody here less than what the other person is receiving is against the concept of equity and equality before the law.”

According to the NLC president, the International Labour Organisation recognises wage as a national law, saying it is not for the sub-nationals.

The labour leader maintained that “every country has their minimum wage and some states are paying higher than the basic minimum wage, and that is the position of the law anywhere”.

However,  he said,  some people instigated by the governors were saying they would not be able to pay N60,000 even when their members were in the meeting with labour, saying this was being done in bad fate.

“We have put our members on notice that if these people succeed in coming up with such unpatriotic and obnoxious law. This democracy they are playing with, we have enough in this country in terms of hardship. Some people, based on their privileged positions want to inflict more Injuries on the workers and citizens of this country and that will not be accepted,” he stressed.

He added that the labour movement will not accept “slave wages”.

“Every worker in Nigeria across the country is seen as Nigerian workers and any attempt to discredit them in a federation will first be resisted by the NLC.

“There is no governor that is not receiving the same thing nationwide, they are not receiving according to their revenue in their states, but they want that of the workers to be so. So, the issue of using revenue as a basis for the payment of minimum wage is a lame one. If any governor is making that argument, then he doesn’t know what governance is all about,” he stated.

Such a governor, Ajaero emphasised, must use his capacity and acumen for the prosperity of the state.

“Governors can do better, and they should stop lamenting; because lamentation year in and year out that they can’t pay will not pay as far as there is a lot of money for them to control,” he cautioned.

Ajaero further argued that an average family of six live within N60,000 in a month and still go to work.

He submitted that NLC had proposed many options apart from the amount of the minimum wage, which if the government had addressed long before the removal of oil subsidies would have saved Nigeria from the current challenges.

Meanwhile, the Minority Leader of the House of Representatives, Mr. Kingsley Chinda, said there is a proposal before the National Assembly Committees on Constitutional Review to move the minimum wage from the exclusive list to the concurrent legislative list.

The minority leader’s clarification came against the backdrop of Ajaero’s position that the parliament had begun moves to decentralise minimum wage to enable states fix what is convenient for them to pay.

Speaking exclusively with The PUNCH in Abuja on Tuesday, Chinda stated that there were different opinions and views on whether minimum wage issues should be on concurrent or exclusive list, noting that “There is a proposal to move it to concurrent list where  states could  legislate on labour matters.”

While noting that federal laws prevail when they clash with state laws, the Peoples Democratic Party stalwart, however, advised that labour matters should remain on the exclusive list.

He continued, “On minimum wage, the Federal Government should consider a minimum living wage for all workers, both public and private. States or firms can go above the set wage, but not below.

“Labour disputes should be standardised and industrial courts should have precedents. The implication of making it a state responsibility is that states will set up their own industrial courts.”

He also added that a decentralised system “will weaken the labour movement and affect checks on the government. Governors  are more likely to pocket the labour union in their states.”

According to him, international labour issues are treated on countries basis, stressing that “It will be complex if state labour groups become independent.”

The International Monetary Fund yesterday downgraded its forecast for Nigeria’s economic growth in 2024 to 3.1 per cent citing weaker growth recorded in the first quarter of the year, Q1’24.

The new forecast was contained in the July 2024 World Economic Outlook of the IMF released, yesterday.

The downgrade represents 0.2 percentage points below the earlier forecast of 3.3 per cent.

The downgrade followed weaker-than-expected Gross Domestic Product, GDP, and growth recorded by the country in Q1’23.

Data from the National Bureau of Statistics, NBS, showed that Nigeria’s Gross Domestic Product, GDP, growth dropped, quarter-on-quarter, QoQ to 2.98 per cent in Q1’24 from 3.46 per cent in the fourth quarter of 2023, Q3’23,

The IMF however retained its 3.0 per cent forecast for Nigeria’s economic growth in 2025.

As a result of the lower forecast for Nigeria’s economic growth, the IMF also downgraded its forecast for Sub-Saharan economic growth in 2024 to 3.7 per cent from the April WEO forecast of 3.8 per cent. It however raised its economic growth forecast for the region in 2025 to 4.1 per cent from 4.0.

“The forecast for growth in sub-Saharan Africa is revised downward, mainly as a result of a 0.2 percentage point downward revision to the growth outlook in Nigeria amid weaker than expected activity in the first quarter of this year,” the IMF said.

For the global economy, the IMF retained its growth forecasts of 3.2 per cent in 2024 and 3.3 per cent in 2025.

The IMF said: “The Global Economy in a Sticky Spot Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 per cent in 2024 and 3.3 per cent in 2025.

“However, varied momentum in activity at the turn of the year has somewhat narrowed the output divergence across economies as cyclical factors wane and activity becomes better aligned with its potential.

“Services price inflation is holding up progress on disinflation, which is complicating monetary policy normalization. Upside risks to inflation have thus increased, raising the prospect of higher-for-even-longer interest rates, in the context of escalating trade tensions and increased policy uncertainty.

“To manage these risks and preserve growth, the policy mix should be sequenced carefully to achieve price stability and replenish diminished buffers.”

Bauchi fixes LG poll for August 19, Kogi election holds October 19

Jigawa, Imo, Anambra, Abia, Katsina, Kebbi, Benue set for exercise

No fewer than 13 states have fixed dates for Local Government elections in the aftermath of last Thursday’s Supreme Court judgement which prohibited federal allocation to council being administered by caretaker committees.

The states that have commenced council poll preparations include Kaduna, Kogi, Bauchi, Katsina, Osun, Enugu, Benue, Rivers, Jigawa, Imo, Kebbi, Abia, and Anambra states.

On Tuesday, the Kaduna State Independent Electoral Commission scheduled the council poll for October 19, 2024.

The Supreme Court had declared it unconstitutional for state governors to hold funds allocated for the local government councils.

In the judgment delivered by Justice Emmanuel Agim, the seven-man panel held that the 774 local government councils in the country should manage their funds themselves.

The court delivered the landmark judgment in suit: SC/CV/343/2024, filed by the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN) against the 36 state governors.

The AGF had sued the state governors through their respective state attorneys-general.

The apex court declared that the government is divided into three tiers: federal, state, and local governments.

S’Court verdict

The court further declared that a state government had no power to appoint a caretaker committee and a local government council was only recognisable with a democratically elected government.

“A democratically elected local government is sacrosanct and non-negotiable,’’ the apex court declared, putting an end to the practice of appointing caretaker committees to run the councils by the state governors.

The court further asserted that the use of a caretaker committee by the state governments to administer the local government violated the 1999 Constitution.

The Supreme Court further affirmed that the local government areas should be governed by a democratically elected government but “The state by the abuse of their power has worked against this law.”

The court declared that the 36 state governors had no power  to dissolve democratically elected local government councils to replace them with caretaker committees.

“Such an act is unlawful, unconstitutional, null and void,’’ Agim stated.

The apex court barred the state governors from receiving, retaining or spending the local government allocation.

It said the practice of receiving and retaining local government funds by the states had gone on for too long, describing it as a clear violation of section 162 of the 1999 Constitution, as amended.

The court held that the 1999 Constitution states that any money leaving the federation account must be distributed to the three tiers of government.

It added that it is the local government administrations that should receive and manage funds meant for the local councils.

Agim declared, “I hold that the state’s retention of the local government funds is unconstitutional.

“Demands of justice require a progressive interpretation of the law. It is the position of this court that the federation can pay LGA allocations to the LGAs directly or pay them through the states.

“In this case, since paying them through states has not worked, justice of this case demands that LGA allocations from the federation account should henceforth be paid directly to the LGAs.”

Following the verdict which was widely applauded, the Finance Minister and Coordinating Minister for the Economy Wale Edun, Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN) were reported to have scheduled a meeting for Tuesday (yesterday) with the Federal Accounts and Allocation Committee officials to discuss the implementation of the apex court verdict.

The PUNCH was unable to confirm if the meeting was held.

Kaduna LG poll

Announcing the date for the council poll at a meeting with political parties and other stakeholders on Tuesday, the Kaduna SIECOM Chairperson, Hajara Mohammed, explained that the current council officials members were sworn into office on November 1, 2021, and would end their three-year tenure on October 31, 2024.

She said, “The current council members were sworn into office on 1 November 2021 and will end their three-year tenure on 31 October. KAD-SIECOM is responsible for organising the elections of chairpersons, vice-chairpersons, and councillors in the state.

“In consonance with the provision of section 25(1) of the KAD-SIECOM Law 2024, the general public is hereby informed that the LGA council election will be held in Kaduna on Saturday, 19th October 2024, between 8am  and 4pm

“The commission issues the election timetable today, Tuesday 16th July 2024. The 2024 election guidelines have been released with the election timetable KAD-SIECOM is ready to conduct the election on the set date.”

The Kogi State Independent Electoral Commission also announced October 19 for the local government election across the state.

Addressing a stakeholders’ meeting in Lokoja on Tuesday, the Chairman of the electoral commission, Mamman Eri, said the decision was in line with the provision of the Constitution and the powers vested in the state Independent Electoral Commission.

He explained that a comprehensive timetable and schedule of activities had been prepared to ensure a transparent, fair and credible electoral process.

“We assure you that these activities have been designed with utmost consideration for inclusivity, transparency and adherence to electoral laws,’’ he said.

According to the election timetable, a councillorship candidate will pay a N100,000 deposit while a chairmanship candidate will part with 250,000.

It prohibits a candidate who has been dismissed from public service or private employment from contesting for any of the elective positions.

Also, anyone who has been found guilty of an offence involving narcotics or any other psychotropic substance by any court or tribunal cannot contest the poll.

Eri appreciated the continued support and collaboration towards the success of the election.

Also, the Bauchi State Independent Electoral Commission has fixed August 19 for the local government elections in the state.

The Chairman of the commission, Alhaji Ahmad Makama, who disclosed this at a news conference on Tuesday in Bauchi, said all necessary arrangements had been concluded to ensure free and fair elections.

He reiterated the commitment of the commission to conduct a credible and transparent election, urging citizens to come out and vote for their preferred candidates across the parties on election day.

He denied alleged rigging plans, noting that previous elections were free and fair.

Makama said the commission had organised a series of meetings with political parties, security chiefs and relevant stakeholders, as part of the election preparations.

NAN quoted the chairman to have urged the public to support the commission to ensure hitch-free local government elections.

It was learnt that Katsina, Kebbi, and Benue have also set machinery in motion to conduct the local council polls.

The exercise will take place in Enugu on October 5, while Benue will conduct the council poll on  November 16.

Others are Kebbi, August 31; Rivers, October 5; Kwara and Imo, September 21.

Katsina has announced February, while Osun will conduct the poll on February 22, 2025.

Ondo election postponed

However, the preparation for the council election in Ondo State has been put on hold

Announcing this on Monday, the Chairman of the Ondo State Independent Electoral Commission, Dr Joseph Aremo, regretted that no single political party complied with the guidelines of the proposed election, despite the issuance of guidelines for the election.

This would be the second time the commission would postpone the election earlier fixed for February and later shifted to July 2024.

Before the latest postponement, the commission had earlier scheduled the council poll for July 13, 2023.

Following the expiration of the tenure of the last executive of the local governments in August 2023, heads of local government administration had been at the helm of affairs in the 18 local government areas of the state.

Addressing stakeholders from various political parties in the state, in Akure, Aremo stated, “Ours is to conduct an election that will usher in a democratic government at the local level. It’s unfortunate that no single party complied with the guidelines for the election.

“We have yet to receive the nomination of candidates, yet to verify and release it to the public for scrutiny.”

Aremo added that the commission would go back to the drawing board and make its position known at a later date.

Reacting, the Ondo State Chairman of the Inter-party Advisory Council, Adesanya Olaoluwa, admitted that all political parties agreed to the terms, knowing that no election could take place without them.

He said, “They now know our reasons. We want to see Mr Governor. It is not that we don’t have trust in ODIEC. We know that they can conduct credible election but we want to see Mr Governor,” he noted.

However, the People’s Democratic Party said that the ODIEC had postponed the elections because the All Progressives Congress was no longer popular in the state.

The state Publicity Secretary, Mr Kennedy Peretei, said, “We knew all along that ODIEC will not conduct the LG election because the APC is not on the ground.”