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‘Tax the rich, increase salaries by 50%’ — NLC writes FG on how to avert economic crisis

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2 years ago

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The Nigerian Labour Congress has asked the federal government to raise taxes across the board for the ‘rich’ and ensure that governors above 50 years resign.

The union made the recommendations in a letter signed by Ayuba Wabba, NLC’s president and sent to President Muhammadu Buhari.

The letter, seen by newsmen, dated August 8th, was in response to recommendations made by Nigerian governors in July.

As part of the recommendations, the governors had asked the FG to raise VAT to 15 percent and offer public workers older than 50 years a one-off retirement package to avert the looming economic crisis.

The governors’ proposals were said to be part of coordinated efforts to instil fiscal discipline and prevent the nation from imminent economic collapse.

But NLC said the implementation of the retirement proposal would lead to the sacking of about a quarter of the public sector workforce.

“Pursuant to this, if state governors strongly believe that age 50 is the problem, we demand that all governors, public office holders and politicians above 50, as a mark of good faith, should immediately step aside. Leading by example would spur public servants to take a cue,” the letter reads.

Due to current global realities, the workers’ union asked the federal government to make a 50 percent salary review.

“While we commend you for your thoughtfulness for a wage increase, the truth of the matter is that given the misfortune that has befallen the Nigerian populace, especially workers with fixed incomes, there is an urgent need for a massive intervention much deeper than the 22 percent.

We would recommend a 50 per cent salary review across the board given the realities on the ground,” the union said.

Speaking on the governors’ proposal on the increment of value-added tax (VAT) levels to 10 percent with a timeline to further raise it to 15-20 percent and introduction of a flat rate of 3 percent, the union said it would adversely affect the underprivileged.

“These recommendations seek to make the poor pay more taxes while the rich pay little or nothing in clear violation of the well-known norm of the rich paying taxes to cover up for the poor.”

It urged the federal government to “raise taxes across the board for the rich, including increased taxes on luxury goods and lifestyles”.

Speaking on the governors’ suggestion that foreign trips by MDAs, including budgetary-independent agencies, the union said it does not canvass for a total ban.

“Foreign trips ordinarily serve their useful purposes, but they have been abused by MDAs, especially budgetary-independent agencies such as the CBN, FIRS, NPA, MIMASA, NCC, NITDA and other blue-chips. This acts as a big drain on our resources. Accordingly, while we do not canvass for a total ban, there should be some control, a limit to foreign travels. The number should be pegged per year until we have a turn-around,” it added.

The union disagreed with the governors on petrol subsidy removal, saying it “could lead to unintended consequences which we would be better off without”.

“Truth is that the little benefit the average person in Nigeria enjoys could lead to unintended consequences which we would be better off without,” it said.

“The solution to subsidy and the ballooning deficits lies in domestic refining, effective management of our refineries, and creating an enabling environment for effective and efficient public sector leadership in the building and management of local refineries.”

“We do concede that a quick and enforceable resolution of the conflicts around ownership of gas in various entities is key to freeing up investment space for foreign direct investment and local businesses in the country.

“Sadly, prolonged inter-agency fighting has become a familiar feature of your government. You would need to put your foot down pending the paperwork.”

It, however, supported the governors for quick implementation of the updated Stephen Oronsaye Report.

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NERC transfers regulatory oversight of Niger electricity market to state government

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12 hours ago

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January 11, 2025 2:11 pm

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The Nigerian Electricity Regulatory Commission (NERC) has issued an order transferring regulatory oversight of the electricity market in Niger to the state’s electricity regulatory commission.

In a statement on Friday, NERC said the decision is in compliance with the amended Constitution of the Federal Republic of Nigeria (CFRN) and the Electricity Act 2023 (Amended).

According to the statement, NERC will maintain its position as the central regulator, overseeing inter-state/international generation, transmission, supply, trading, and system operations in line with the Electricity Act.

“The EA also mandates any state that intends to establish and regulate intrastate electricity markets to deliver a formal notification of its processes and requests NERC to transfer regulatory authority over electricity operations in the state to the State Regulator,” NERC said.

“Based on this, the Government of Niger State complied with the conditions precedent in the laws, duly notified NERC and requested for the transfer of regulatory oversight of the intrastate electricity market in Niger State.”

NERC directed the Abuja Electricity Distribution Company (AEDC) to incorporate a subsidiary (AEDC SubCo) to take over the duties of supplying and distributing electricity within Niger state from AEDC.

The commission said the incorporation of the subsidiary must be completed within 60 days starting from January 10, adding that the subsidiary must apply for and obtain a licence for intrastate electricity supply and distribution from Niger State Electricity Regulatory Commission (NSERC).

“Direct Ibadan Electricity Distribution Company Plc (IBEDC) to incorporate a subsidiary (IBEDC SubCo) to assume responsibilities for intrastate supply and distribution of electricity in Niger State from IBEDC,” NERC said.

“IBEDC shall complete the incorporation of IBEDC SubCo within 60 days from 10th January 2024. The subcompany shall apply for and obtain licence for the intrastate supply and distribution of electricity from NSERC, among other directives.”

NERC said all transfers envisaged by the order must be completed by July 9.

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We’ll intensify clampdown on ponzi schemes this year, says SEC DG

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12 hours ago

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January 11, 2025 1:24 pm

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Emomotimi Agama, the director-general (DG) of the Securities and Exchange Commission (SEC), says the regulator’s top priority for 2025 is to revamp regulations on investment fraud, also known as ponzi scheme, to enhance detection and accountability.

In his new year message to the capital market over the weekend, Agama said the commission’s plans for the year also include mainstreaming the Nigerian capital market into the economy.

“The SEC is positioned with a dual mandate in regulating and developing the capital market in Nigeria. Naturally, our top priority in 2025 will cut across the dual mandate. For us, mainstreaming the Nigerian Capital Market into the economy is very vital,” he said.

“Enforcement is the backbone of effective regulation. We are revamping our investigative processes to enhance efficiency and hold bad actors accountable more decisively.

“Insider trading undermines activities and dampens market fairness. By revising our regulatory framework, we aim to strengthen detection, prevention, and accountability mechanisms.

“Transparency is at the heart of investor confidence and capital markets. We will introduce measures to ensure greater visibility and trust in securities transactions.”

Agama also said the commodities market is a major area of interest for the SEC.

“Nigeria is purely an agrarian nation and as such, taking that comparative advantage to the next level, is something that the SEC is proud to be a part of,” he said.

“It is a vital part of the Nigeria economy. This year, we will focus on reinforcing the legal and regulatory structures that support growth so we can create a solid foundation for the vibrant commodities ecosystem. Be it a soft commodity or a hard commodity.

“More so, when we have a plethora of commodities all over Nigeria. The SEC as a partner in development will make sure that we will make the difference.”

The DG added that the commission intends to steer the capital market towards a direction that ensures development reaches every Nigerian in the capital market community.

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Delta Air Lines introduces Nigerian delicacies on Lagos-Atlanta flight

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14 hours ago

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January 11, 2025 12:10 pm

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United State carrier Delta Air Lines has announced the inclusion of local dishes into food options that will be made available to passengers, on its Lagos-Atlanta flight.

In a statement made available to The PUNCH on Thursday, the airline noted that Nigerian delicacies such as ‘Ewa Agoin will now be available to passengers.

It also promised to offer a luxurious travel experience for passengers flying in its Delta One premium cabin from Murtala Muhammed International Airport to Hartsfield-Jackson Atlanta International Airport.

The airline stated, “This holiday season, passengers can indulge in a delectable range of continental and Nigerian-inspired culinary delights designed to satisfy a variety of tastes while flying.

“As part of the premium cabin experience, Delta One travellers are treated to a carefully curated selection of dishes. Upon take-off, guests can choose from an array of starters, including sliced beef fillet with pineapple salsa and sweet chilli sauce, a refreshing corn soup with toasted corn salsa, or a mixed greens salad with spicy lemon dressing. A sunflower roll, served with whole butter, completes the initial course.”

It will be recalled that in October, Keyamo directed foreign airlines to patronise local caterers for on-board meals.

He gave the directive through a letter dated October 15, 2024, in which the ministry said the directive takes effect from January 1.

While hinting at the new cuisine, the airline also explained that food will now be served twice onboard.

The statement reads partly, “For the main course, Delta showcases the best of Nigerian cuisine alongside international options.

Those in the mood for a traditional Nigerian dish can enjoy roasted cod with basmati rice, agoyin-style beans, and sweet plantains, or opt for grilled chicken thigh with jollof rice and plantain.

A plant-based alternative, featuring a hearty bean stew with rice, spinach, tomatoes, and fried onions, is also available for vegetarians.

“Dessert options include a pineapple upside-down tart with whipped cream, a fresh seasonal fruit assortment, a classic ice cream sundae, or a refined fruit and cheese plate, offering something for every sweet tooth.

“As the flight nears its descent into Atlanta, Delta One passengers are treated to a final meal, featuring spicy chicken pie, a vegetable salad with zesty lemon dressing, and a selection of mini desserts. For those preferring a vegetarian option, jollof risotto with roasted vegetables and a spicy tomato sauce is available, paired with fresh fruit and mini desserts.”

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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