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Ajaero: Federal Government Knocks Labour As Strike Records Partial Compliance

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  • Tinubu not behind attack on Ajaero, escalating strike nationwide unreasonable – AGF office
  • Lagos, Rivers, Kwara, Bauchi workers shun Labour, Kano, Edo, Delta, A’Ibom, others comply

The Federal Government on Tuesday berated the organised Labour over the ongoing nationwide strike declared by union leaders following the assault on the Nigeria Labour Congress President, Joe Ajaero.

Kamarudeen Ogundele, the Special Assistant to the Minister of the Justice and the Attorney-General of the Federation, in an interview on Arise Television on Tuesday, said the strike was not in the interest of the country.

But President of the Trade Union Congress, Festus Osifo who also appeared on Arise Television, noted that the Governor of Imo state, Hope Uzodimma, had not apologised over the brutalisation of Ajaero.

He said this as nationwide strike declared by the organised Labour recorded partial compliance in several states on Tuesday.

Faulting the Labour leaders, Ogundele said, “Declaring a strike at this time will not be in the interest of the country. The country is trying to regain economic control and to also recover in several sectors. Instead of looking for at how we progress as a nation, there is no need for us to try to be involved in actions that will constitute a clog in the process of the country.”

When asked if the FG had not talked to the labour unions before it got to this stage of protest, Ogundele said who spoke on what he described as the genesis of the strike, said, “They (the labour unions) claimed that the NLC president was attacked in Imo State and I understand that there was an order of the court banning them from assembling or protesting in Imo. But they went against the order of the court by assembling. The government of the day is not out to promote violence but the labour unions have not come out to say the president of the country had a hand in what happened on that day. Why are they now trying to escalate what happened in the state to the whole federation?”

Justifying the strike, Osifo stated, “We allowed some of the essential services workers to work because we are also patriotic people at the end of the day. From our assessment, the strike has been successful based on our template and if the government continuously foot drags, more institutions will be shut down.

On the court order stopping the strike, Osifo said, “The government can not continually take black market injunctions to cripple Labour. They will have to arrest the entire Nigerians.”

But there was partial compliance to the strike. While workers in Lagos, Rivers, Kwara, Bauchi, Zamfara, and several other states completely shunned the strike as offices, schools, and banks opened, there was partial compliance in some states where some sectors partly obeyed the strike directive.

Partial observance was recorded in Anambra, Ondo, Kaduna, Borno, and Ogun states as banks and overnment offices were open in some of them while workers did not report at work in others.

The strike was declared by the NLC and the TUC to protest the alleged brutalisation of the NLC president, during a workers‘ protest in Owerri, Imo State, on November 1.

Banks, government and private-owned schools, and tertiary institutions across Lagos did not obey the strike directive.

Also, business owners and parastatals carried on with their activities throughout Tuesday.

Some schools in Lagos, including Omole Grammar School, Olusosun Primary Health Centre, Oregun, and Ifako-Ijaiye General Hospital, were open for services.

Banks in the Oregun, Ikeja axis also opened their doors to customers.

However, students at the University of Lagos, Akoka, were sent away from their classrooms.

A student in the Department of Social Work, who gave his name simply as Emeka, said, “We came for a lecture at 9am but till 11am, we didn’t see our lecturer so we went back to our hostels while those leaving

off-campus went back home after we were told there was a strike.”

The Lagos State University, Ojo, did not participate in the strike as it went on with its ongoing examinations.

Students were seen reading and moving in and out of halls to sit for their exams.

A visit to the National Agency for Food and Drug Administration and Control office in the Oshodi area of the state also revealed that workers went about with their daily activities.

Public and private schools in Lagos state were open for regular school activities with no sign of strike observed.

Some teachers, who spoke to our correspondent, said they were aware of the directive by the NLC but had no reason to comply.

A teacher at a technical school, who spoke on the condition of anonymity, said, “We have a full house here. All our teachers are

working, and all our students are here. We heard about the strike, but, as you can see, we are not on strike.”

It was also observed that some workers at the Lagos State Secretariat, Alausa, were at their duty posts, while some offices only had a handful of staffers hanging around their offices when our correspondent visited.

The Public Relations Officer of the Lagos State chapter of the NLC, Mr Ismail Adejumo, said the level of compliance would increase on Wednesday (today).

“We have a substantial level of compliance today (Tuesday). Most of our affiliates have complied and we are mobilising others to join the struggle.

“Both the NLC and the TUC are in this struggle together.

We are currently moving around to monitor and enforce compliance among all our sister affiliates. We are determined to ensure that there is total compliance,’’ he stated.

Rivers workers

In Rivers State, the labour action recorded no compliance as schools, banks, and the state secretariat were open to the public.

Banks on the entire stretch of Aba Road and Azikiwe Road in Port Harcourt attended to customers.

State workers said they were aware of the nationwide strike but that they had yet to receive any directive from their unions in the state to join the industrial action.

Similarly, normal activities were observed at the Rivers State University Teaching Hospital where the staff attended to patients.

But the Nigerian Ports Authority’s entrance was barricaded by some union leaders who also prevented human and vehicular entry.

They used a MAC truck and several private cars to block the roundabout from the industry road axis of Port Harcourt all the way to the gate of Ports.

Following the development, some staff of the NPA were denied entry into the complex.

The state Chairman of the NLC, Alex Agwanwor, and his TUC counterpart, Okechukwu Onyefuru, had in a joint statement said they would comply fully with the strike directive.

In Kwara State, civil servants, including judicial workers, boycotted the strike as the ministries, departments, agencies, and courts operated in Ilorin, the state capital, throughout the day.

However, federal workers and bank officials did not report for work as their offices were under lock and key.

Commercial banks which opened to the public in the morning later shut their gates to customers following a directive from their union, while students who had earlier resumed classes were sent home by their teachers.

Most bank customers were left disappointed as the ATM machines were not dispensing cash.

Electricity consumers were not spared the pains of the strike as the Ibadan Electricity Distribution company locked its offices in Challenge and Baboko business centres.

The banner of the National Union of Electricity Employees was displayed at the gates of the business facility.

The security men informed the customers that the workers were on strike.

However, commercial transport operators in the state did not join the strike.

The NLC Chairman in the state, Saheed Olayinka, said that though some workers reported in their offices early in the day, they later left for their homes.

He said that a committee had been put in place by the NLC to monitor the strike, adding that members had been going around the offices to ensure that workers complied with the directive on the strike.

Bauchi schools

There was partial compliance in Bauchi State as some banks, schools, and filling stations opened for business in the metropolis.

The Fidelity Bank branch located close to Shagari Plaza opened to its customers but Taj, Access, and Eco banks located on Bank Road shut their gates.

A teacher at a government primary school disclosed that they were asked to send the pupils away and go home.

She said, “We opened our school today and we did our academic activities as usual but we got a circular from the Local Government Education Authority that we should close down. But because when the memo came we had a few minutes to close and the pupils were to write a test, so I just gave them the test and we closed.”

The Chairman of the Academic Staff Union of Universities, Abubakar Tafawa Balewa University, Bauchi, Ibrahim Inuwa, said that their members complied with the directives.

In Makurdi, Benue State, banks, schools, and the state secretariat were made to shut their gates as labour leaders in the state enforced the strike directive.

Primary and post-primary school pupils who were on their way to school were sent back and banks were forced to close.

Leaders of the NLC and TUC, Terungwa Igbe and Gideon Akaa, respectively described the level of compliance as ‘substantial.’

Some civil servants protested the action of the labour leaders and described it as ‘selfish.’

A worker, who simply identified himself as Amenger said, “I don’t know what has become of labour these days; because Ajaero was manhandled in Imo, all Nigerians must suffer.

“What did Ajaero do concerning those people recruited by (ex-governor Samuel) Ortom who were laid off by (Governor Hyacinth) Alia? Or what did he do when workers in Benue were not paid for several months?

Reacting to the question, Akaa replied, “One of the slogans of the labour union is an injury to one is injury to all,” adding that what labour was doing was to engage the government and stated, noting that what happened to workers in Benue was not peculiar to the state.

Workers in Enugu also snubbed the strike but the state NLC Chairman, Fabian Nwigbo, said they were working on how to mobilise them for the strike.

“We are at a meeting and I am trying to prepare a letter to galvanise the workers for the strike. You know the order is coming from the national secretariat,” he said.

However, it was observed that banks and offices were rendering services to their customers.

Similarly, academic activities were in full swing in both private and government schools.

The strike recorded partial compliance in the Federal Capital Territory as banks and the Abuja airport remained open.

In observance of the strike, members of staff and visitors to the National Assembly, Abuja, were prevented from accessing the complex.

The Federal Secretariat was notably less busy than usual as many of the offices, among which are the Ministry offices of Education and Health, were closed.

Similarly, banks in the area including Zenith, Access, and First City Monument banks, were closed, and only spotted a few customers at the banks’ ATMs.

Bayelsa workers

Civil servants in Bayelsa State stayed away from their offices leaving the secretariat deserted.

Many public schools were also closed, but a few private schools opened their gates to students.

It was also observed that some banks including GTB, Access, Ecobank, Fidelity Bank, and Keystone attended to customers in Yenagoa, the state capital.

There was full compliance in Plateau State as the offices were shut.

The union leaders in the state were said to have locked the federal and state secretariats around 5am in compliance with the directive from their headquarters.

Staff of the University of Jos who reported for work in the morning were seen returning home before 10 am.

The state NLC Chairman, Eugene Manji, declared that the workers would continue to observe the strike until otherwise directed by their national leaders.

In Edo, the state secretariat was shut on Tuesday by the NLC executives in the state.

The NLC Chairman, Odion Olaye, explained that he had sent his members to schools, the airport, petrol stations, and the Nigeria Petroleum Development Corporation to enforce compliance with the strike action.

Banks along Akpapava, Mission roads, forestry, and other areas were also shut down with customers trying to get money from a few ATMs that dispensed cash.

At Benin Airport, an official said planes were landing and taking off as the facility was operating without any hitches.

In Warri, Delta State, labour leaders were seen locking the gates to the NPA; the Warri South Local Government secretariat was equally shut down.

The situation was not different in Kano where the Audu Bako State Secretariat which houses most of the ministries, was also closed down.

Staff members who reported for work were turned back even as banks and other financial institutions were locked down.

Bayero University students who were writing their first-semester examination were also affected by the strike as a number of them who went to the campus could not sit for their exam due to the strike.

Meanwhile, the Kano State Ministry of Education has suspended the 2023 Secondary Schools Qualifying Examination scheduled till further notice.

Workers in Zamfara State completely shunned the strike directive as many of them reported for duty.

Some of the workers said they were no longer in support of the labour union leaders as, according to them, “The union leaders are only fighting for themselves.”

Ilyasu Mohammed said it would be a mistake for any civil servant to embark on a strike as directed by the labour union leaders.

He said, “We are tired of wasting our time going on strike which will at the end of the day become a fruitless effort. The labour leaders will use the opportunity to negotiate with the government, get money and later suspend the strike”.

“This has happened several times and nothing has been achieved. We are tired and we will not embark on strike as directed by the labour union”.

Another worker, Musa Garba, vowed, “I will not join the strike because it will not change anything.”

Findings further showed there was compliance with the strike order in Akwa Ibom, Osun, Ebonyi, Cross River, and Niger states while the labour action was partially successful in Anambra, Ondo, Kaduna, Borno, Ogun, and a few other states.

In Anambra State, there were full economic and commercial activities were recorded in the commercial city of Onitsha, as banks opened for customers while primary and secondary schools were also in session.

Also, some commercial banks in Akure, the Ondo State capital did not totally comply as they attended to customers. Similarly, teachers in some public schools in the state were also in the class teaching their pupils.

The NLC Chairman in Ebonyi State, Prof. Egwu Oguguo said the exercise recorded over 90 per cent compliance by workers in the state In Kaduna State, the headquarters of Kaduna Electric Distribution Company along Bank Road by Ahmadu Bello Way in the metropolis was shut to customers and workers as the officials of the National Union of Electricity Employees ensured that the main gate was firmed locked, but banks in the state attended to customers.

But there was total compliance in Delta State. The state secretariat popularly called Prof. Chike Edozien secretariat, was locked.

However, many workers in government ministries and other establishments in Maiduguri, the Borno State capital, on Tuesday, were busy doing their duties.

The strike however recorded full compliance in Niger State as most public places were shut down.

Schools and hospitals in Ogun State complied with the directive of the organised Labour, banks shunned it. There was partial compliance in Bauchi State as some banks, schools, and filling stations opened in the Bauchi metropolis on Monday.

Labour berates Presidency

Meanwhile, the NLC has said the strike is not a blackmail of the Presidency.

The Congress further noted that President Bola Tinubu-led administration ought to be grateful for the “uncommon” patience displayed by the Organized Labour despite the sufferings faced by citizens following the removal of subsidy on Premium Motor Spirit known as petrol.

The NLC said this in a statement on Tuesday signed by its head of information, Benson Upah, in response to the statement on Monday by the Special Adviser to the president on Information and Strategy, Chief Bayo Onanuga.

Onanuga had said the nationwide strike by the Organized Labour was an attempt to blackmail the Presidency.

But the NLC said, “We would have ignored Bayo Onanuga, Special Adviser to the President on Information and Strategy because we know him plus his penchant for unwarranted bellicosity and belligerence.

“We could equally have forgiven him, knowing full well that overzealous hirelings like him easily go into overdrive in the mistaken belief that they’d earn the confidence of their principals.’’

 

Credit: The Punch

BIG STORY

N70,000 Minimum Wage: States’ Salaries Increase By 90% To N3.8tn

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The amount allocated for personnel expenses, including salaries and allowances for state civil servants, has risen from N2.036 trillion spent in 2024 to N3.87 trillion in the approved 2025 budget.

Although the 36 sub-national governments budgeted a total of N2.8 trillion for salaries, they only disbursed N2.036 trillion throughout 2024, a reduction of N764 billion, according to the budget implementation report.

Data from the 2025 approved budget for all 36 state governments shows an almost 90.23 percent increase due to the introduction of the new N70,000 minimum wage and the rise in political appointments.

These figures are also available on Open States, a platform supported by BudgIT, which serves as a repository for government budget data.

The report also revealed that at least 27 states in the federation would not be able to pay workers’ salaries this year without waiting for federal allocations from the central government.

In July 2024, President Bola Tinubu approved a substantial increase in the minimum wage for Nigerian workers, raising it from N30,000 to N70,000.

This decision came after months of intensive negotiations between the government and labor unions.

However, the implementation of the new wage increase has been gradual across the country, with some states still not adopting the revised minimum wage.

In response to this delay, the Nigerian Labour Congress issued a stern ultimatum to state governments, demanding full implementation of the new wage by December 1, 2024.

Despite this pressure, many states have yet to begin paying the revised minimum wage, further delaying the financial relief workers expected.

An in-depth analysis of the budget documents revealed significant disparities in personnel costs across states. 20 states experienced a personnel cost increase of over 50%, while 16 states saw more moderate increases below 50%.

A closer examination revealed that states like Abia, Cross Rivers, Ekiti, Niger, Rivers, and Taraba saw the highest increase in their payroll, exceeding 100% of their 2024 personnel cost budget. Conversely, states such as Gombe, Osun, and Ondo had the lowest salary increase percentages, staying below 15%.

Detailed analysis of salary increases across states showed that Abia saw a notable rise in personnel costs, escalating from N33.045 billion to N77.34 billion, a 134% increase. Similarly, Adamawa’s personnel costs rose from N48.61 billion to N74.23 billion, a 52.7% increase.

In Akwa Ibom, personnel costs surged from N91.74 billion to N126.69 billion, reflecting a 38.1% growth.

Anambra state, under Governor Charles Soludo, also approved a significant rise from N34.001 billion to N63.41 billion, indicating an 86.45% increase.

Bauchi followed suit with an increase from N42.29 billion to N70.41 billion, showcasing an uplift of about 66.5%.

Meanwhile, Bayelsa saw its personnel costs climb from N60.18 billion to N114.21 billion, a rise of over 89%, indicating a strong investment in its workforce.

In Cross River, the personnel cost grew sharply from N35.02 billion to N106.12 billion, a 202% increase, one of the highest among the states. Delta also recorded a significant increase from N139.999 billion to N185 billion, reflecting a 32.5% rise.

Ebonyi had an increase from N23.076 billion to N36.66 billion, growing by 58.9%.

Edo’s personnel expenses surged from N74.58 billion to N101.29 billion, a 35.8% increase, while Ekiti saw a notable rise from N30.69 billion to N62.51 billion, almost doubling its personnel cost.

Enugu also experienced a substantial rise from N47.988 billion to N70.954 billion, a 48% increase.

However, Gombe stood out with a slight decrease in personnel costs, falling from N40.52 billion to N40.28 billion, a dip of just 0.6%.

On the other hand, Imo saw an increase from N41.92 billion to N67.4 billion, showing a rise of 60.9%.

Jigawa’s personnel costs jumped from N51.445 billion to N90.73 billion, a 76.4% increase, while Kaduna’s personnel expenses grew by 23.4%, rising from N68.010 billion to N83.94 billion.

Kano, which saw one of the largest increases, saw its personnel costs surge from N89.97 billion to N150.996 billion, a staggering 67.8% rise.

Katsina, with an increase from N29.69 billion to N58.62 billion, experienced a growth rate of 97.6%. Kogi’s personnel budget grew from N64.798 billion to N109.96 billion, an increase of 69.8%.

Kwara followed a similar trend, rising from N51.045 billion to N69.152 billion, a growth of 35.5%.

Lagos saw the largest increase, more than doubling its personnel costs from N225.114 billion to N401.12 billion.

In Nasarawa, personnel expenses rose from N48.704 billion to N80.456 billion, a 65.2% increase, while Niger saw an even more significant leap from N25.36 billion to N104.301 billion, a growth of 311.5%. Ondo experienced an increase from N75.96 billion to N139.726 billion, an 83.9% rise, while Osun also registered a significant increase, from N55.571 billion to N102.89 billion, an 85.1% growth.

Oyo experienced a massive increase in personnel costs, rising from N116.207 billion to N214.116 billion, an 84.3% increase.

Similarly, Plateau saw its personnel expenditure climb from N38.963 billion to N67.144 billion, marking a 72.5% increase.

Rivers State, under Governor Siminalayi Fubara, recorded a remarkable rise from N167.05 billion to N343.196 billion, a 105.6% increase.

Sokoto also saw a significant increase, from N55.32 billion to N64.711 billion, a 17% rise.

Taraba experienced a notable increase from N36.319 billion to N95.23 billion, a 162% rise, while Yobe recorded a 34% increase, rising from N47.95 billion to N64.12 billion.

Zamfara saw a moderate increase, with personnel costs rising from N34.21 billion to N58.38 billion, a growth of 70.7%.

Meanwhile, the substantial rise in salaries and allowances across various states has introduced new challenges.

With the sharp increase in personnel costs, at least 27 states now face the reality of being unable to meet their payroll obligations without depending on federal allocations from the central government.

This means only 9 out of the 36 state governments can independently pay their workers without relying on federal funds.

This represents an increase from 24 states that couldn’t cover their salaries without federal assistance in 2024, based on the analysis of state governments’ approved budgets for the 2024 fiscal year.

States with strong internal revenue include Lagos, Abia, Benue, Enugu, Ogun, Niger, Kaduna, Kwara, and Osun.

According to the budget analysis, 27 states cannot cover their salary expenses from internally generated revenue alone and may have to rely on federal allocations or borrow from banks and related institutions.

This situation means the wage bills in these states now surpass their internally generated revenue, raising concerns about worker productivity and the states’ efficiency in generating revenue.

Speaking (with The Punch), the economist emphasized that the latest data highlights the need to reduce governance costs across the country.

Commenting on the situation, Muda Yusuf, director and CEO of the Centre for the Promotion of Private Enterprise, argued that several factors contribute to states’ low revenue generation and bloated civil service workforces.

He explained, “The IGR issue must be recognized, as there are significant disparities in states’ natural resources. You can’t compare a coastal state like Lagos or Delta, which have numerous oil companies that pay taxes through P.A.Y.E., with states like Jigawa, Gombe, or Kogi, where most businesses are SMEs, and agriculture is predominant. How much IGR can you generate from these businesses? Essentially, these states rely heavily on workers’ salaries for IGR.

“The second issue is the bloated workforce many states have, which they don’t need. In some ministries, there are ghost workers, and some employees don’t even show up at work. Some ministries could operate efficiently with half the staff they have. But due to political pressures and other factors, they carry far too many workers.”

Professor Segun Ajibola, an economics professor at Babcock University, emphasized that states must strive to raise internal revenue without putting excessive pressure on their citizens. He also urged states to reduce governance costs, eliminate waste, streamline ministries, and improve transparency.

Marcel Okeke, former chief economist at Zenith Bank, pointed out that the expansion of ministries and governance at the national level would impact subnational wage bills.

“Most decisions by governors are politically driven rather than economically sound,” he stated. “From the location of companies to the appointment of aides and advisers, there are cases of governors appointing hundreds or thousands of assistants. What are these people doing? Can’t they manage with fewer assistants? Additionally, many ministries are bloated, with positions that should be held by one person being filled by five people, some of whom carry files without contributing meaningfully. Conducting staff audits can help address these issues.”

Okechukwu Nwagunma, executive director of the Rule of Law and Accountability Advocacy Centre, criticized government officials for their lack of vision, sincerity and patriotism.

Nwagunma pointed out that despite promises from the president to cut the cost of governance by reducing the number of appointees and ministries, the reality is the opposite—new ministries are being created, and a record number of appointees are being appointed.

He said, “The government at all levels in Nigeria is composed mainly of people who are visionless, insincere, unpatriotic, selfish, and insensitive to the suffering of the people they claim to serve.

“They do the opposite of everything they claim they will do. The president talked about reducing the cost of governance by pruning down the number of government appointees and ministries. But the president is busy creating new ministries and appointing the highest ever number of appointees, both as ministers and aides.

“The same thing is happening at the state levels. State governors appoint needless numbers of aides with almost every other aid having their aides. While the state of the economy continues to worsen, with government policies unable to alleviate the suffering of the majority of Nigerians who continue to groan in deprivation, poverty, and hunger, the same government officials continue to live in obscene and provocative opulence and extravagant lifestyles. And they ask Nigerians to be patient and to continue to make sacrifices.”

 

Credit: The Punch

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BIG STORY

I Try Not To Be The Type Of Man My Dad Was Towards Women — Clarence Peters

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Clarence Peters, the Nigerian music video director, has spoken about his complex relationship with his father, the renowned juju singer Shina Peters.

In a recent episode of the WithChude podcast, Peters shared his thoughts on his father’s past mistakes, particularly regarding his treatment of women and how it has shaped his own approach to relationships.

He revealed that Shina, 66, “screwed up” by failing to protect his celebrity mother, Clarion Chukwura, 60, who he said “was blackballed by his (Shina’s) colleagues.”

The 41-year-old explained that the experience had a significant impact on him and that he has made a deliberate effort to avoid repeating his father’s mistakes in his own relationships with women.

“My dad screwed up, I mean using the word screwed up is me putting it lightly because his colleagues blackballed my mum and she was already dealing with a lot of trauma from when she was young,” he said.

“In making ‘Inside Life’, I started to discover some of the things I did not know. Episode 5 of ‘Inside Life’ is written by my cousin who went through that and so my mum went through the script and started crying because she also went through the same thing.

“We keep forgetting that it was a different time. My mum told me recently that he has been with women, driven some of the amazing cars, stayed in the best houses, hotels, he has had money. He is approaching his 70s, death is certain because we are all going to die.

“All he can do now is pray to God to forgive him and that is all that he has and so we have had that conversation. My father has made mistakes that I have also made, so I can’t judge him. I can relate to the mistakes that my father has made.

“As much as I was raised by my mother, one of my greatest fears was not to be my father to the opposite sex. I have been a version of that, so I am not a saint. So I cannot judge him. I would like to but I am in the position to.”

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BIG STORY

MAN Faults NPA’s 15% Tariff Hike, Says “It’s Ill-Timed”

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The Manufacturers Association of Nigeria (MAN) has criticized the Nigerian Ports Authority’s (NPA) proposed 15 percent increase in tariffs.

On February 6, the NPA announced it had secured approval for a 15 percent tariff increase to improve infrastructure and upgrade equipment. This is the first tariff hike since 1993.

In a statement on Sunday, Segun Ajayi-Kadir, MAN’s director-general, pointed out that the manufacturing sector is already burdened with numerous challenges.

Ajayi-Kadir described the timing of the increase as detrimental, emphasizing that businesses are struggling with rising operational costs, a high rate of foreign exchange (FX), and other economic uncertainties.

He also noted that Nigeria’s current economic situation is marked by rising inflation, FX challenges, and declining industrial capacity utilization.

Ajayi-Kadir stressed that ports, as gateways to international trade, play a crucial role in the efficiency and cost-effectiveness of business operations.

“According to the United Nations Conference on Trade and Development (UNCTAD), 80 percent of Nigeria’s traded goods are transported by sea, with 70 percent of total imports and exports in West and Central Africa destined for Nigeria,” he said.

“This underscores the critical role Nigerian ports play in facilitating trade and industrial productivity.

“For manufacturers, port-related charges constitute significant indirect costs, as most raw materials and industrial machinery are imported through these ports.

“Any increase in charges will have a ripple effect, leading to higher production costs, increased inflationary pressures, and reduced competitiveness of locally manufactured goods.”

Ajayi-Kadir further stated that many businesses are experiencing a downturn due to unsustainable operating costs.

He argued that the increase is poorly timed and could signal a departure from the government’s stated commitment to improving the ease of doing business.

‘UPWARD REVIEW WILL LEAD TO JOB LOSSES, LOW ACTIVITIES’

Ajayi-Kadir warned that the additional strain on industrial activities will likely result in reduced capacity utilization and potential job losses.

“Furthermore, Nigeria must remain competitive in regional trade,” he added.

“Neighboring countries with more efficient and cost-effective ports will become far more attractive alternatives, leading to increased cargo diversion.

“This will not only reduce revenue for the Nigerian government but will encourage smuggling and other untoward trade practices that weaken our economy.”

Ajayi-Kadir suggested alternative methods for increasing port revenue, such as reducing turnaround time for vessels, improving cargo clearing processes, addressing bottlenecks, and focusing on infrastructural development.

“While we acknowledge the need for revenue generation, increasing port tariffs can be counterproductive in the long run,” he said.

The MAN DG called on the NPA to put the proposed 15 percent tariff increase on hold and collaborate with stakeholders to explore long-term revenue generation options.

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