News
Strike: Labour seeks Tinubu’s intervention as FG says economy under threat
President Bola Tinubu to personally intervene in the ongoing negotiation over minimum wage to avert the indefinite strike action scheduled to start on Monday.
This is as the Federal Government warned that the national minimum wage being demanded by labour could destabilise the economy.
Organised Labour had given a May 31, 2024 ultimatum on the new minimum wage.
On Tuesday, May 28, talks between the Federal Government and Organised Labour broke down after the government and the Organised Private Sector raised their offers to N60,000.
The government added N3,000 to its initial offer of N57,000 proposed last week, making the total figure N60,000. It was dismissed by labour at the meeting.
Several impeccable sources from both the Trade Union Congress and Nigeria Labour Congress, who spoke to Sunday PUNCH, stressed that the Federal Government and the organised private sector should not expect labour to accept anything less than a six-digit offer.
The unions said the government was not serious about the negotiations, adding that the shift from N48,000 to N57,000 was too meagre to be considered as ‘shifting grounds’.
They noted that the promise made by President Bola Tinubu when he became President and on Workers’ Day was that the Federal Government would pay a living wage, adding that N57,000 did not fall into that category.
On Friday, the Nigeria Labour Congress declared an indefinite nationwide strike, starting on Monday, June 3, 2024, due to the Federal Government’s refusal to increase the proposed minimum wage above N60,000.
The President of the NLC, Joe Ajaero, announced that the strike followed failed negotiations between the government and organised labour.
Despite the government’s final offer of N60,000, which included a recent increase from an initial N57,000, the labour unions found the proposal insufficient.
At the meeting, labour revised its demand, reducing it by N3,000 from the initial N497,000 proposed last week, setting the new proposal at N494,000.
Despite this concession, the negotiations remained deadlocked as the government maintained its offer of N60,000, leading to the declaration of a nationwide indefinite strike.
However, speaking to our correspondent in a telephone interview in Abuja on Saturday, the Minister of State for Labour, Nkeiruka Onyecheoja, said the strike was unnecessary, urging the Organised Labour to return to the negotiation table for more discourse.
She said, “The government is still willing to accommodate them, to listen to words of reason and knowledge, and to know that the president is committed to the Nigerian workers and Nigerian citizens, all of us.”
Speaking on the N494,000 set by Labour, the minister noted that the government won’t be able to breathe.
She said, “By the time you do adjustments or anything, that means there won’t be…in short, the government will not breathe anymore.
“The government’s position is that the strike is unnecessary. If you say people are hungry, we know that people are hungry and that’s why we can increase the minimum wage, even when it’s not convenient.”
Also reacting to the decision of Organised Labour to embark on strike in protest, the Minister of Information and National Orientation, Mohammed Idris, said the sum of N494,000 national minimum wage demanded by organised labour, which cumulatively amounts to the sum of N9.5 trillion bill yearly was capable of destabilising the economy and jeopardiing the welfare of over 200 million Nigerians.
Speaking at a news conference in Abuja, the minister said the offer of N60,000 minimum wage by the Federal Government, which translates to a 100 per cent increase on the existing minimum wage of 2019, had been accepted by the Organised Private Sector, which is a member of the tripartite committee of the negotiations team.
Idris, according to a statement released by his Special Assistant (Media), Rabiu Ibrahim, on Saturday night stated further that labour’s demand could destabilise the economy, bring further hardship to over 200 million Nigerians and cause job loss in the private sector.
He said, “The Federal Government’s new minimum wage proposal amounts to a 100 per cent increase on the existing minimum wage. Labour, however, wanted N494,000, which amounted to 1,547 per cent on the existing wage.
“The sum of N494,000 national minimum wage which Labour is seeking would cumulatively amount to the sum N9.5tn bill to the Federal Government of Nigeria.
“Nigerians need to understand that whereas the FG is desirous of ample remuneration for Nigerian workers, what is most critical is that President Tinubu will not encourage any action that could lead to massive job loss, especially in the private sector, who may not be able to pay the wage demanded by the Organised Labour.”
The Minister said even though Labour was keen on the take-home pay of about 1.2 million workers, the Federal Government was concerned about the welfare of over 200 million Nigerians based on its guiding principle of affordability, sustainability, and the overall health of the nation’s economy.
Idris appealed to the Organised Labour to return to the negotiating table and embrace reasonable and realistic wages for their members.
He said because of the commitment of the Tinubu administration to the welfare of workers, the wage award of 35,000 for federal workers would continue until a new national minimum wage was introduced.
However, speaking with Sunday PUNCH, the National Treasurer of the Nigeria Labour Congress, Hakeem Ambali, urged Tinubu to personally intervene in the ongoing minimum wage negotiation by calling all parties to a parley to avert the strike, insisting that the offer of N60,000 from the government was unreasonable, considering the current rate of inflation.
Ambali insisted that it was the duty of the Federal Government to avert the strike, adding that the government had a whole month to negotiate a reasonable minimum wage with labour to prevent industrial action.
He said, “For a whole month, we have been going forward and backward between FG and Labour. Labour shows concern and perseverance. You will recall that on May 1, Labour gave an ultimatum that we would embark on strike after the last day of May. Those in government should have done what was needed to avert this. As of today, labour has taken a decision.”
Ambali, however, noted that President Tinubu could avert the strike if he personally intervened in the negotiation with Organised Labour.
He said, “Within 24 hours, the FG and Mr President can avert the strike if he (Tinubu) shows direct interest. He has the final say. The buck stops at his table.”
He also disagreed with the argument that the FG had done enough by doubling the minimum wage from N30,000 to N60,000, noting that the rate of inflation was much higher than the announced increament.
He said, “If the PMS price was increased by 100 per cent, then the 100 per cent increment would have been reasonable. What is the percentage ratio? It was N165 to N700. All the macroeconomic indices pointed to it that the inflation rate had increased dramatically. For Nigerian workers to be able to cope with this inflationary trend, something reasonable should have been done. When you look at 2019 when that N30,000 (minimum wage) was agreed upon; you will agree that it was looking good with the dollar equivalent then. What is the dollar equivalent of this N60,000 now? Is it not $45 or so?
“If you look at that, you will realise that the government still has the obligation to give a reasonable wage to workers. From our calculations, to feed a family of six, a worker needs N90,000. So, what are they saying? The government should show understanding. A well paid worker is an asset to national growth and development.”
Ambali also disagreed that the demand for higher minimum wage by labour would affect the economy negatively, stressing that it would rather have positive impacts.
He said, “Once workers are well paid, the purchasing power will increase. All the local manufacturing companies, the SMEs, and patronage will increase, and that will grow the economy. The government will also generate huge amounts of taxes from the workers.
“If the government shows that they are reasonable, Labour is ready to move. But, the peanut increment is as if we are not serious. Anything lower than six digits may not be reasonable. As an insider in the negotiation, I know that Labour will shift ground, but there must be commitment and seriousness from the government.”
Also reacting to the demands by Organised Labour, the Special Adviser on Information and Strategy to the President, Bayo Onanuga, said the Organised Labour should be reasonable in its demand, except if it was using the declared strike to display its frustration over the loss of the Labour Party in the 2023 presidential election.
“Labour leaders need to be reasonable and not paralyse our economy unless they are using the strike as a continuous ventilation of the frustration they had when their party lost the 2023 presidential election.
“Can you pay your driver or cleaner N500,000 a month? Let’s not befuddle the issue. The government is not saying it is not reviewing minimum wage, it is saying it will pay something affordable and sustainable. N500,000 or N615,000 is out of it,” Onanuga wrote on his verified X handle on Saturday.
No money to stock food– Workers
State and federal civil servants on Saturday had mixed reactions to the indefinite strike declared by Organised Labour in response to the Federal Government’s refusal to raise the proposed minimum wage from N60,000.
Speaking in separate interviews with Sunday PUNCH yesterday, some civil servants said even though the indefinite strike was long overdue due to the government’s insensitivity to labour’s demands, they did not have money to stock food in their homes ahead of the industrial action.
Speaking with our correspondent, a vice-principal in a public secondary school in Ibadan, Oyo State, identified only as Mr Olowojebutu, noted that even though the indefinite strike was long overdue due to the Federal Government’s mindlessness to workers’ welfare, he did not have money to buy foodstuff when the industrial action takes off on Monday.
He, however, said he was prepared for the strike, praying that the two parties (Organised Labour and the Federal Government) would eventually reach a befitting agreement after the strike.
Also, another civil servant, Joseph Ade, said surviving during the strike might be tough for his family, because he did not have any money to buy foodstuffs, because the notice of the industrial action was short.
“They should do everything to stop this strike. We don’t have money, the cost of fuel is high, food prices are high and now strike. They want to worsen the situation of Nigerians, and God will not allow them,” he said.
A government worker identified as Omobola Atilade in the Federal Capital Territory also supported the strike, but said she might not buy enough foodstuffs for the period due to lack of adequate funds.
“On this strike, I agree with the NLC because the Federal Government failed to reach an agreement with them. How will the Federal Government say they can only pay N60,000 as the minimum wage during this economic crisis?
“On Sunday, I will go to the market to buy some food items because no one can tell how long the strike will take. Although, I don’t have enough money to do that, I will manage the little one I have with me,” she told Sunday PUNCH.
However, a public servant based in Anambra State, Chima Uchenna, dismissed the seriousness of the announced strike, saying he didn’t believe it would affect businesses.
He said, “I don’t take NLC seriously. I am not bothered about the strike and I have no intention of stocking up because of it. The market will still be on as usual. I think it will be a sketchy strike.”
Oil prices surged on Monday as renewed US-Iran military tensions raised fears over global energy supplies, while investors increased bets on a possible US interest rate hike.
Brent crude rose 2.8 per cent to $90.53 a barrel, while West Texas Intermediate gained 2.5 per cent to $85.51.
The latest spike followed a US strike on Iranian rocket launchers near the Strait of Hormuz, with Iran reportedly retaliating against US military targets in Jordan.
The escalation has revived concerns over the Strait of Hormuz, a vital global energy route through which about a fifth of the world’s crude and gas supplies normally pass.
Markets were also unsettled by hawkish comments from Federal Reserve Governor Kevin Warsh, who warned that stubborn inflation could require further action.
Warsh said inflation at 3.7 per cent remained “concerning” and that the Fed had “work to do” to bring it back to its two per cent target.
However, he stopped short of explicitly backing a September rate hike, saying he was “committed to a discipline, not to a decision.”
Investors are now awaiting US jobs and inflation data expected over the next two weeks for clues about the Fed’s next move.
Asian markets were mixed, with Shanghai gaining 0.9 per cent, while Tokyo and Hong Kong closed lower. European markets also traded unevenly, while London was closed for a public holiday.
In its quest to make real estate ownership affordable and accessible to people of different financial capacities, Powell Homes and Shelters Ltd. has kicked off its latest real estate initiative, Real Estate Ownership Made Easy, also known as ROME.
The event, which took place on Friday at the International Conference Centre, Enugu, had in attendance over 1,200 participants, including investors, realtors and other key players in the industry.
Speaking with newsmen on the reason behind the ROME Initiative, the Managing Director of Powell Homes and Shelters Ltd., Architect Chibuikem Onyekachi Emmanuel, said the company aims to make willing clients landowners across the country.
He stated that the ROME Initiative, which it has kick started, will end on September 30, 2026, as there are no plans on ground to extend it.
He posited that the initiative allows every potential client to own a plot of land at one of its newest estates in Enugu, called Glory Layout, which the company currently sells at ₦1,500,000, with a considerable payment plan that lasts up to a year.
He also stated that clients who are interested in making full payment will receive a discount of 10% from the original price, while those paying in instalments will receive a discount of 5%, which will span for one year.
He also stated that the discount has nothing to do with the usual percentages that the company pays its agents, realtors or staff who attract customers, adding that, so long as the payment falls within the duration of the initiative, all the incentives will be paid to those who deserve them.
According to him, “This is one of the best things that can happen to anyone who wants to own properties through us. We want people to start owning properties irrespective of their financial status. This ROME Initiative ensures that you get a 10% discount on any of the properties that you buy during this period once you are making full payment, and also a 5% discount for someone paying in instalments. The aim is simple: to produce numerous land and property owners. We want the ‘wow’ effect on the customers. We want to ensure that people can own properties without stress and get the value of their investment.”
In her address, popular Nollywood actress and the Brand Ambassador of the company, Mrs. Patience Ozokwo, popularly known as Mama G, said the company has kept on rejigging her love for what they do because of their sterling integrity.
She stated that the ROME Initiative is timely, owing to the idea behind it and the commitment of the company to ensuring that it is stress free for both clients and realtors.
Mama G also beckoned on all to utilise the opportunities presented by the initiative to acquire properties from the company, as it is time bound, while also affirming her unalloyed vow to the company’s integrity, saying that once the company starts misbehaving, she would be the first to move out.
“Powell Homes and Shelters has continued to give me reasons to believe in what the company stands for. The way it handles its clients, realtors and partners shows that it understands the importance of trust in this business. I believe this initiative will give many people the opportunity to own properties through a process that is simple, clear and convenient.”
In his remarks, the Manager of Powell Homes and Shelters Ltd., Surv. Steve Ibaro, said ROME will end on September 30, 2026, and all the properties owned by the company are included, depending on the package that a client or customer wants.
He stated that clients who want to start with the instalmental payment package have one year to complete the payment or inform the company of the reasons behind their pending breach of the agreement should anything like that arise.
He also commended their clients, stakeholders and realtors for always identifying with the company, an act he said would continue to improve the company’s growth and service delivery.
“ROME is an opportunity for people to own properties through flexible payment plans. The initiative covers the company’s properties, depending on the package selected by the client. We appreciate our clients, stakeholders and realtors for their continued support and identification with Powell Homes and Shelters Ltd. The company remains committed to making property ownership easier for people who genuinely desire to invest in real estate.”
Speaking on behalf of the Realtors and partners of Powell Homes and Shelters Ltd., the Managing Director of Chris Alex Homes and Properties Ltd., Mr. Eze Christian, said Powell Homes and Shelters Ltd. is a brand to reckon with for all who want to have genuine properties, irrespective of their financial ability, especially realtors who are still learning the business and looking for partners.
He stated that, having partnered with Powell Homes and Shelters Ltd. for over five years, the company has always displayed a high level of integrity in what they do, which has distinguished it from others.
He also appreciated the Managing Director of Powell Homes and Shelters Ltd., Architect Chibuikem Onyekachi Emmanuel, for always bringing out initiatives that empower staff, realtors, partners and other stakeholders, stressing that the company remains a force to reckon with in the real estate industry.
“Powell Homes and Shelters has built a name through its commitment to genuine property transactions and good relationships with its partners. The company has shown that real estate can be handled with transparency, responsibility and respect for clients. Its continuous support for realtors and partners has made it a dependable company and a strong brand in the real estate industry.”
A political science scholar, Prof. Mbanefo Odum, has urged the Federal Government to put adequate security measures in place to prevent renewed vandalism of the First Niger Bridge after the ongoing repair works.
Odum, a professor at Chukwuemeka Odumegwu Ojukwu University and Director of Research, Nigeria Political Science Association, South-East Zone, said replacing the vandalised components would amount to little if the bridge was not adequately protected from further attacks.
Reacting to the closure of the bridge for repairs following the vandalisation of some of its critical components, he said the authorities must ensure that the newly installed items were properly secured.
“I hope they’ve put in place measures to keep vandals from revandalising the replaced items. It’s very important to do so.
“Otherwise, the replaced objects will vanish within weeks or months, getting the sections back to square one,” he said.
His warning comes as the Federal Government moves to repair sections of the First Niger Bridge affected by the removal of bolts, expansion joints, iron bars and other critical components.
The Minister of Works, David Umahi, has also directed the installation of CCTV cameras on the bridge to monitor activities and help security agencies track and arrest vandals.
The bridge is expected to be closed during the repair exercise, with motorists directed to use the Second Niger Bridge as an alternative route.
First By Okey Maduforo, Awka
The over 50-year-old First Niger Bridge may be closed for one week as the Federal Government commences repairs on vandalised sections of the bridge and begins the installation of enhanced security infrastructure.
Suspected vandals had reportedly removed bolts, iron components and other materials from the bridge, raising concerns about the safety of motorists and the structural integrity of the facility.
The Minister of Works, Engr. Dave Umahi, disclosed this at Ogbunike in Oyi Local Government Area of Anambra State while inspecting ongoing projects in Edo, Delta and Anambra states.
Umahi said security measures were being introduced to prevent further vandalism of the bridge.
He said, “Now on the First Niger Bridge, we have seen the wickedness of the underworld.
“We have seen man’s inhumanity to man. Those things that they are removing are very dangerous to the beauty of that bridge, and we have commenced action on that bridge.
“There is so much accumulated workload on that bridge, like it was with the Third Mainland Bridge, and every government that comes will put asphalt, and it is causing a lot of gridlocks on that bridge.
“Bridges are designed for light loads and dynamic loads. So, we have directed that work should start immediately and the entire asphalt be removed and another one put in its place.
“There will be solar lights on that bridge in the next one week, and we shall fix CCTV and connect it to the one on the Second Niger Bridge so that security personnel can monitor the bridge. Whoever tries to touch the bridge again is going to be arrested.”
The minister also disclosed that rehabilitation work would be carried out on failed sections of the Enugu-Onitsha Expressway.
He said contractors working on the road had been directed to first identify and measure all failed portions, mill them out and apply a 16mm binder before proceeding with other work.
According to him, the affected sections extend from the Head Bridge towards the 21.5-kilometre point.
He added that contractors had been directed to complete one carriageway before moving to the other in order to minimise disruption to traffic.
“We have to attempt to work at night so that we don’t interfere with traffic. We also have to get the Road Safety involved, and our local traffic managers should commence the desilting of the drainage before commencing,” Umahi said.
He added that, “To that effect, we may have to close down the First Niger Bridge in seven days’ time and direct traffic to the Second Niger Bridge for us to fix the First Niger Bridge in good time.”
Second Niger Bridge Access Road
At the ongoing construction of the access road to the Second Niger Bridge, the Controller, Engr. Timothy Emenike, and Engr. Nnamdi said the pace of work would be accelerated, with construction progressing from both ends of the project.
They explained that the project runs from Obosi through Nkpor and Ogidi to Ogbunike, where work is currently ongoing.
“The project starts from Obosi down to Nkpor and Ogidi, and now we are in Ogbunike. Along this alignment, we are working on several spots. You have just seen the second bridge that is ongoing, and we are almost about to start the third one,” they said.
They added that lack of work space would no longer hinder progress, following discussions with the Anambra State Government to release additional portions of the right of way.
According to them, another five-kilometre stretch between the Obosi axis would be made available within the next week, allowing work to proceed from both ends.
“We are cutting through the hill at Ogbunike to continue the work in that area,” they said.
Anambra Promises More Right of Way
The Anambra State Commissioner for Works, Arc. Okey Ezeobi, assured the contractors that the state government would provide the additional right of way required for the project.
Ezeobi said another five kilometres had been added to the area currently available to the contractors.
He commended President Bola Ahmed Tinubu and the Minister of Works, Dave Umahi, for what he described as infrastructure development across Anambra State and the South-East.
“There is no better way to describe this than renewed hope, and not just saying it. The Honourable Minister, with what you are doing with our wonderful President, for the first time Easterners can come in and move out with ease, and the bottleneck that had been a great harassment and was sending people out of the South-East has been taken care of,” Ezeobi said.
“One can now bypass Onitsha, bypass Asaba, and you are on your way.
“You don’t know how glad the people of Anambra and the South-East are. Thank Mr President for us.
“There is no way to ask for democracy dividends; this is what you get when you have visionary leadership tailored towards alleviating the sufferings of the masses.
“Mr President is developing every part of Nigeria. Regarding the right of way for this project, we are finalising it, and we are adding another five kilometres to what we have now. There will be more than enough for the contractor to work with,” he said.
The MainPower Electricity Distribution Limited (MEDL) has commenced a major ₦3.5 billion network rehabilitation and upgrade programme aimed at improving the quality, reliability and sustainability of electricity supply across parts of Enugu State.
The projects are being implemented under the Distribution Sector Recovery Programme (DISREP), an initiative of the Federal Government of Nigeria supported by the World Bank.
The Managing Director of MainPower, Dr Ernest Mupwaya, told newsmen in Enugu on Thursday that DISREP would strengthen Nigeria’s electricity distribution sector through metering, rehabilitation of critical infrastructure, reduction of technical and commercial losses, and improvement in service delivery.
He said that the first phase of the scope of the projects cover the rehabilitation and upgrading of the following critical infrastructure: the 9th Mile Injection Substation; the 9th Mile Industrial Feeder; and the Coca-Cola 33 kV Feeder.
“It will also cover installation of seven new 500 kVA, 11/0.415 kV distribution transformers; rehabilitation of 10 existing 500 kVA distribution transformers; and provision of 11 kV switchgear to improve system protection, control and operational flexibility.
“The works are expected to be completed within five weeks. Contractors will work daily, including weekends, to ensure timely delivery,” he said.
The managing director stressed that a major component of the project is the upgrade of the approximately 28-kilometre Coca-Cola 33 kV Line running from the Oji River Transmission Station to the 9th Mile Injection Substation.
“The line, which currently operates on a 50mm² aluminium conductor single circuit, will be upgraded to a 150mm² Aluminium Conductor Steel Reinforced (ACSR) double circuit.
“The upgraded line will have a combined design thermal transfer capability of up to 36MW, subject to prevailing system conditions, voltage regulation and other operational requirements.
“The additional capacity will strengthen electricity supply to the 9th Mile industrial axis and support existing and prospective industrial customers,” he said.
Mupwaya said that the beneficiaries would include the following companies: Sapphire, 7-Up, Honest Material, Coca-Cola, Wisdo, Enugu Water Works and others, as well as customers supplied through the 11 kV industrial feeder.
He noted that the project would also relieve the Kingsway 2 Line, which serves Ogui and the Hilltop axis, thereby improving network flexibility and reliability in those areas.
On the 9th Mile Power Corridor, he noted that the existing undersized 70mm² aluminium conductor on the 9th Mile 11 kV industrial feeder would be replaced with a 150mm² aluminium conductor from the injection substation.
He said, “This upgrade will address existing capacity constraints, reduce technical losses, improve voltage profiles and create additional capacity to accommodate growing industrial and commercial demands.
“Upon completion, the project is expected to significantly improve electricity supply to customers in Udi and Ezeagu Local Government Areas, including: 9th Mile industrial hub; the Free Trade Zone; Ezeagu industrial cluster; Abor; Ajali; and surrounding communities.”
The MainPower boss said that the rehabilitation programme forms part of MainPower’s broader commitment to strengthening the electricity distribution network and providing the infrastructure required to support industrial growth, business expansion and improved socioeconomic activity across Enugu State.
He also explained that in order to provide a safe working environment and facilitate the efficient execution of the works, scheduled outages would occur during the five-week construction period.
“The outages will generally take place between 8a.m. and 2p.m., during which electricity supply to affected customers will be temporarily interrupted.
“MainPower appreciates the operational implications of these outages, particularly for industrial and commercial customers, and appeals for their patience, understanding and cooperation.
“The temporary disruptions are necessary to enable the rehabilitation works to be completed safely and within the planned timeframe,” he said.
Mupwaya noted that the rehabilitation would require the clearance of structures and commercial activities encroaching on the statutory powerline right-of-way, adding that such encroachments would be addressed in accordance with applicable safety requirements and established procedures.
“Customers and members of the public are advised not to erect structures, operate businesses or undertake any activity within powerline rights-of-way.
“These corridors must remain clear to protect lives, facilitate maintenance and ensure the safe operation of electricity infrastructure,” he said.
He also appealed to customers and members of communities within the projects corridor to protect the new electrical installations and give contractors maximum cooperation to deliver the work as scheduled.
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