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Minimum Wage: States’ll Go Bankrupt If We Pay N30,000 —– Governors

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Governors of the 36 states of the federation under the auspices of the Nigeria Governors Forum (NGF) have said states cannot afford to pay the proposed N30,000 minimum wage.

The NGF chairman and Governor of Zamfara State, Abdulaziz Yari, told newsmen that it was impractical to implement the N30,000 minimum without states going into bankruptcy.

He said the only alternative to paying the N30,000 minimum wage was for the Federal Government to accede to the review of the national revenue allocation formula or to downsize workforce.

The governors who met, yesterday in Abuja, have therefore, resolved to put together another committee to meet with President Muhammadu Buhari to work out another formula to address the issue.

The members of the committee to see President Buhari are Akinwunmi Ambode (Lagos), Atiku Bagudu (Kebbi), Simon Lalong (Plateau), Mohammed Abubakar (Bauchi), Udom Emmanuel (Akwa Ibom), Dave Umahi (Ebonyi), Ifeanyi Ugwuanyi (Enugu) and Nasir El-Rufai (Kaduna).

President Buhari last week Tuesday received the report of the Tripartite Committee on the Review of National Minimum Wage.

The committee which recommended N30,000 as the new national minimum wage also submitted a draft bill that will be sent to the National Assembly. Organised Labour has given December date as deadline for all processes leading to the implementation of the N30,000 minimum wage else they will embark on another round of strike.

But speaking after an emergency meeting of the NGF, Governor Yari: “We have seen what has been presented to the president by the committee; as a member of the committee, Kebbi governor said the committee did not take our submission of N22,500 because it came late. I am surprised how you can do this without the input of the states, because the states are the key stakeholders in this business. So, a situation whereby our report is not taken or considered by the tripartite committee to present to the president, I don’t know how the committee wants us to work.

“But we still say we want to pay but the issue is the ability to pay. The N18,000 today, when the president assumed office, 27 states were not able to pay; not that they choose not to pay. So, now that you say N30,000, how many of them can pay? We will be bankrupt. As Nigerians, we should look at the issue seriously. While other people are saying that governors are flying private jets and living in affluence, that one is not luxury but compulsory.

“The issue of government overhead cost, if you put it together with personnel cost, it cannot solve this problem. Like Lagos that is paying about N7 billion as salaries, if you say it should pay N30,000, now it will be N13 billion. From our calculation, it is only Lagos State that will be able to pay N30,000. As Nigerians, there is no other country we have and we should be fair to this country.”

Asked the way forward, Yari said: “We will continue to talk with Labour, let them see reasons why governors have difficulties. Some of us have Internally Generated Revenue (IGR). For instance, the money Lagos State is using to pay is not coming from Abuja. They have a way of getting their money from IGR and that is why they can afford to pay. Lagos gets money through VAT. Apart from Lagos, even Rivers cannot afford to pay. So, we have been crying out about this since 2011 but no one will listen. One critical example is that some state ration their salaries while others put everything they earn on the table and ask labour to come and see and ask them to suggest how much should go for capital and personnel cost. Some say 70 percent for personnel cost and 30 percent for capital projects, yet the states cannot pay and they put the remaining as outstanding.

“If you are talking about oil, the price is not what it used to be. From last year to date, it is $20 less from $75 to $55. So where is the money to pay? We should not exploit this matter further. We are leaders today, tomorrow others will be there. So let us look at this matter seriously to see how we can do it properly. It is our primary responsibility to see that everybody is happy.”

When reminded that part of Labour’s grouse was that governors have refused to submit audited account, the NGF chairman said: “We have given the committee audited account of the states to guide them. But if they put the audited account for the past 10-14 years, can you get something out of it? We are going to use the report of the audited committee to make further presentation. It is the same labour that is pushing for the N30,000 that will still turn around to say that the governors did not do any infrastructure. How are we going to achieve that by paying only salaries?”

BIG STORY

Calabar Coastal Project: Peter Obi Inciting Igbos Against Tinubu’s Government — Works Minister Umahi

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Dave Umahi, the minister of works, has said that Peter Obi, the Labour Party’s (LP) previous presidential candidate, is urging the southeast’s populace, particularly the ignorant, to rebel against the government.

Even after putting the folks into trouble, Obi, according to Umahi, would not stand up for them.

During a gathering on Wednesday to recompense landowners impacted by the proposed Lagos-Calabar coastal route, he made the statement.

The Federal Ministry of Work oversaw the exercise’s organisation.

The 700-kilometre coastal highway has been enmeshed in controversy following the demolition of Landmark Beach Resort, valued at $200 million, to create a right of way for the project which is estimated to cost the federal government N15 trillion.

After the demolition, a visibly worried Paul Onwuanibe, the Group CEO of Landmark, told BusinessDay that about 70 percent of the beach was destroyed by the government bulldozer, describing the action as “insensitive.”

“What is left of these businesses are the rubbles you can see (in video clips he captured while the demolition was going on). Those are people’s investments and means of livelihood reduced to mere rubbles; so many jobs have been lost and many Nigerian families are in for it,” Onwuanibe said.

On his part, Obi slammed President Bola Tinubu’s administration for going on with the controversial Lagos-Calabar coastal highway project in defiance of public outcry.

The presidential candidate expressed displeasure that the government is embarking on a job-losing project at a time of rampant unemployment.

Obi said it was not too late to discontinue the Lagos-Calabar highway project, adding that urgent necessities are nationwide security, poverty eradication, healthcare, and education, especially for the poor and underprivileged.

He had also described the reported demolition of businesses and residences in the designated right of way for the project as insensitive and heart-wrenching, lamenting that livelihoods were being wiped away, lifetime investments wasted, and jobs disappearing as a result of the demolition.

In a post on his X handle on Tuesday, the former Anambra State governor said: “The outcry against this project has been overwhelming due to the current situation in the country. However, reports as of yesterday indicate that demolition of businesses and residences in the designated right of way for the project has commenced from the Lagos end.

“The sight of this insensitive demolition is heart-wrenching. Livelihoods are being wiped away, lifetime investments are being wasted, and jobs are disappearing as bulldozers roar through. The homes of the elderly are being overturned by the power of bulldozers.

“This hasty flag-off defies the widespread outcry by the public, especially business and property owners directly affected by the project. Nobody knows the outcry that will accompany this project as it progresses towards poor rural landscapes.

“Thousands of jobs are about to be lost, with investments above $200 million at risk. Over 100,000 jobs in the leisure and hospitality sector face imminent extinction, along with 80 small businesses and their 4000 mostly youth employees.”

However, Umahi insisted there was no inhumanity meted to Landmark and that the matter should be buried because he was actively involved.

The former Ebonyi State Governor alleged that Obi goes around to condemn people, thereby bringing judgment upon himself.

He said: “It brings to some of the comments made by my brother, his Excellency Mr Peter Obi, I am not supposed to comment about it because some people have already done the work. And I know what Arise Television brought courtesy of Channels Television, they were bringing similar scenarios when His Excellency Peter Obi was the governor. He made a statement saying ”Any infrastructure that stands in the way of the road must go. And there would be no compensation paid.” That’s what he said.

“But look at me, by the human face of the renewed hope agenda administration, we are even paying for people who are illegally staying on the coastal line, and don’t have valid infrastructure and valid documents. That is mercy, that’s mercy… You know some people darken counsel without knowledge. You know there’s the devil in the details.

“When you condemn people, you bring judgment upon yourself. And that is what he (Obi) has done. And I think he’s inciting some of the south east people that are not well informed. He is inciting them. And gets them into trouble. And he doesn’t go to fight for them. Wisdom is a defence. And I want our people to have wisdom because I am involved.

“There’s is no inhumanity meted to Landmark, that matters should be buried because I was there. And so we fought everything possible. Even some people donated property to save his two big infrastructures. That’s appreciation. But some people have taken sides along with him to play politics.

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BIG STORY

Dangote Refinery To Get Valid Operating Licence Soon — FG

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The Federal Government said on Tuesday that it was prepared to give a completely legal operating licence to the 650,000 barrels per day capacity Dangote Petroleum Refinery.

This was declared at the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Stakeholders’ Consultation Forum on Midstream and Petroleum Host Community Development Trust Regulations in Abuja.

The federal government’s NMDPRA, however, clarified that although it had given the $20 billion refinery a pre-commissioning permit, the Dangote refinery would shortly receive a fully operational licence.

The Dangote refinery was opened by former President Muhammadu Buhari in May 2023. In April of this year, the plant began supplying automotive petrol oil, sometimes known as diesel, to the local market. It has yet to release Premium Motor Spirit, popularly called petrol.

Speaking at the forum in Abuja on Tuesday, the Chief Executive of NMDPRA, Farouk Ahmed, told industry players and other stakeholders that the authority would issue a fully valid operating licence to the refinery very soon.

Ahmed, who was represented by the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, pointed out that currently, only three refineries have valid licences.

“We have issued three refineries with three valid licences. We awarded Dangote refinery even in their pre-commissioning and sooner than later they will have full commission and a valid licence to also operate,” he stated.

He also stated that about 15 gas facilities across the country have valid licences, while more are undergoing processing.

The NMDPRA boss said there are 1,199 facilities with valid licences in the downstream, while more than 176 operators hold gas import permits.

Ahmed said 130 depots have valid licences, while 69 hold valid coastal vessel licences, adding that NMDPRA has licenced 9,464 retail outlets as of 10 am on April 30, 2024.

“In the gas processing facility within the midstream, there are about 15 of them with valid licences. And much is under processing.  If you go to the downstream sector, in the gas state of the downstream, more than 1,199 facilities have NMDPRA valid licences.

“More than 176 operators hold gas import permits. On the liquid licencing side of the downstream, there are 130 depots with valid licences and coastal vessels with more than 69 valid licences as of today. And in the retail outlets, we have 9,464 licenced retail outlets as of 10 am today, April 30,” Ahmed stated.

He explained why locations in the midstream and downstream arms of the oil sector were included as part of host communities, stating that emissions and effluence affect them.

Ahmed said the authority organised the forum for stakeholders to ventilate their ideas and propose measures that would further enable the NMDPRA to relate better with host communities in the mid- and downstream arms of the oil sector.

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BIG STORY

Biggest Mess Created In 2023 Was Devaluation Of Naira — Dangote

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Aliko Dangote, chairman of Dangote Industries Limited, claims that the devaluation of naira created the biggest mess for his company in 2023.

Dangote made this known on Tuesday during the annual general meeting of Dangote Sugar Refinery Plc.

Dangote claims that the business is working hard to make sure that dividends are paid out this year.

He claimed that many businesses were also impacted and would not be able to pay dividends, particularly those in the food and beverage industries.

“We are doing whatever it takes to make sure that at the end of the day, we will be paying dividends because if you look at our dividends last year, it was almost 50 percent more so we will try and get out of the mess,” Dangote said.

“The biggest mess created was actually the devaluation of the naira from N460 to N1,400.

“You can see almost 97 percent of the companies, especially in food and beverages businesses, none of them will pay dividends this year for sure but, we will try and get out of it as soon as possible.

“We want to see that at the end of the day, no matter how small, we will be able to pay some dividends, especially if there is a rebound of the naira.”

  • ‘We’ll Reapply For Merger Of Dangote Sugar With Nascon’

Speaking on the suspension of the planned merger of Dangote Sugar Refinery with Nascon Allied Industries Plc and Dangote Rice Limited, the chairman said it was put on hold because the Securities and Exchange Commission (SEC) wanted the rice factory to begin.

Dangote said the rice factory in Jigawa is expected to be commissioned soon, adding that Dangote Sugar will reapply for the merger when the time is right.

On April 19, Nascon announced the suspension of its proposed merger with Dangote Sugar.

Nascon said the merger was not completed due to the current non-operational status of Dangote Rice.

  • Dangote Sugar To End Sugar Importation In 2028

Dangote said the company’s sugar master plan will enable the producer to sell only locally produced sugar in the next four years.

According to the chairman, the implementation of the backward integration policy will give the company the best future in terms of stability and prevent issues relating to exchange rate losses.

“The sugar master plan we are now taking is very, very serious,” he said.

“But to say the least, the industry as a whole, did not really push as we are supposed to push in terms of the backward integration.

“We have done a lot, but we also have our fears because if there is no proper implementation, we do not want to go and sink a lot of your money and we end up losing money because if government is not following or making sure that everybody behaves, then we will not be able to make money. But right now, I think they have called us.

“We have sat down and I can assure you on our own, we think the best future of this company is through the backward integration.

“Because backward integration will actually give you much more forfeit and stability and it will erase all these exchange rate losses.

“So, by the grace of God, in the next four years maximum, our company should be producing what we are selling currently, all domestic, 100 percent domestic.”

However, Dangote said if any sugar is imported by the company, it will only be to complement what it is producing.

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