Business

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

Published

2 years ago

August 13, 2022 12:48 pm

BodexNG

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.

Business

TikTok won’t be sold, says Chinese owner as US ban looms

Published

19 hours ago

April 26, 2024 10:58 am

BodexNG

ByteDance, the Chinese parent company of TikTok, says it has no intention of selling the social media platform.

“Foreign media reports that ByteDance is exploring the sale of TikTok are untrue,” the company wrote in a statement on Toutiao, a news aggregation app that it owns.

“ByteDance doesn’t have any plan to sell TikTok.”

The statement was in response to an article by The Information on Thursday saying “ByteDance is exploring scenarios for selling TikTok’s US business without the algorithm that recommends videos to TikTok users”.

The development followed after the US passed a law to force ByteDance to sell the hugely popular video app or be banned in America.

The sell-or-ban measure was signed into law by US President Joe Biden on Wednesday.

The bill, passed by the senate on Tuesday, follows concerns among US lawmakers that China could access Americans’ data or use the app for surveillance.

In March, the house of representatives passed a bill to ban TikTok unless the app parts ways with ByteDance.

The lawmakers voted — 352 in favour of the proposed law and 65 against it — in a rare moment of bipartisan unity.

In 2022, the US house of representatives ordered its staff to delete TikTok from any house-issued mobile devices.

TikTok recently said it would challenge in court the “unconstitutional” law.

Business

Dangote refinery ranked above 10 biggest European refineries

Published

20 hours ago

April 26, 2024 9:40 am

BodexNG

A financial data and media company, Bloomberg, has ranked the Dangote Refinery above the top 10 biggest refineries in Europe.

According to data compiled by the business news platform, the refinery has more capacity than many European ones.

The $20bn-worth refinery located in Lekki-Epe Expressway, Lagos State, can refine 650,000 barrels of petroleum products per day.

The report sighted by newsmen on Thursday stated that this is over 246,00bpd capacity, more than Shell’s Pernis Refinery, which is located in the Netherlands.

It added that the Pernis Refinery, which has an installed capacity of 404,000bpd, is the biggest in Europe. The BP Rotterdam Refinery in the Netherlands has a capacity of 380,000.

Bloomberg also reported that the GOI Energy ISAB Refinery in Italy was built with a refining capacity of 360,000bpd.

Also, the TotalEnergies Antwerp refining facility in Belgium can refine 338,000bpd.

Others listed in the report were the Orlen Plock Refinery in Poland with 327,000bpd; Shell’s Rheinland in Germany with 327,000bpd; Miro Refinery in Germany with 310,000 capacity; and the ExxonMobil Anterwep Refinery in Belgium with 307,000 capacity.

It added that the Saras Sarroch Refinery in Italy had 300,000 capacity; the ExxonMobil Fawley in England had 270,000bpd capacity.

The Bloomberg report described the Dangote Refinery as a ‘game changer’ and said it was taking advantage of cheaper US oil imports for as much as a third of its feedstock as it started up.

According to analysts, the refinery has been shipping products in recent weeks while readying two units to enable petrol output, which will deliver a long-promised transformation of the fuel market in Nigeria and the region.

“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year,” an oil expert, Alan Gelder, told Bloomberg.

According to the average estimate of analysts at WoodMac, FGE, and Citac, the refinery is running at about 300,000 barrels a day, nearly half its nameplate capacity.

The complex has started shipping jet fuel, diesel, and naphtha as it widens to a full slate of products.

Reuters recently reported that the Dangote oil refinery could end a decades-long petrol trade from Europe to Africa, worth $17 billion a year.

Reuters, quoting analysts and traders, said the Dangote refinery was heaping pressure on European refineries already at risk of closure from heightened competition, adding that the refinery would be the largest in Africa and Europe when it reaches full capacity.

About a third of Europe’s 1.33mbpd average petrol exports in 2023 went to West Africa, a bigger chunk than any other region, with most of those exports ending up in Nigeria, Reuters said, quoting Kpler data.

Dangote Refinery has begun selling diesel into the Nigerian market, crashing the pump price from N1,600 to N940 in less than a month.

Business

FG grants Air Peace approval to commence Abuja-London flights

Published

21 hours ago

April 26, 2024 8:32 am

BodexNG

The federal government (FG) says it has approved the commencement of flight services from Abuja to London by Air Peace.

Festus Keyamo, minister of aviation and aerospace development, spoke on Channels television on Thursday.

Keyamo said he gave the approval for Air Peace to add Abuja to its London route on April 24.

“Just yesterday (Wednesday), I approved Air Peace for the Abuja-London route, not only Lagos-London route,” the minister said.

“British Airways also come to Abuja.

“So, let Air Peace block that path and start a war. It’s all for the good of Nigerians.”

Speaking on the British government’s refusal to grant operation access to Heathrow Airport, Keyamo said the federal government agreed to operate the Gatwick Airport.

He said Air Peace or any interested local airline should be operating to Heathrow Airport and not Gatwick.

The minister said the Gatwick Airport is only a low-hanging fruit and a starting point.

Keyamo said he has been reviewing the bilateral air service agreement (BASA) between the United Kingdom (UK) and Nigeria and some decisions would be made after the exercise.

On March 30, 2024, Air Peace began direct flight operations from Lagos to Gatwick Airport in London.

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