- There‘ll be speedy, full implementation – Edun
- FG directs NNPC to sell crude to Dangote Refinery, others in naira
- NCS records 127% revenue surge in six months, collects N2.74trn
Amid the ongoing controversy on a planned protest against hardship in the country, expected to kick off on August 1, President Bola Tinubu, on Monday, signed the newly approved national minimum wage into law.
The President assented to the bill during a brief ceremony attended by representatives of the leadership of the National Assembly and members of his executive Cabinet at the Council Chambers, State House Abuja.
Tinubu, who was already presiding over the 9th Federal Executive Council meeting of the year, kept the meeting on hold for the signing ceremony of the anticipated new Minimum Wage Bill.
Speaking after signing the bill into law, the President thanked the National Assembly for passing the bill expeditiously, saying “all I can say is thank you very much for the expeditious act.”
The Head of Service of the Federation, Folashade Yemi-Esan, said this would help douse tension in the country and amongst workers.
Stakeholders have also said that the signing of the bill into law, a few days after the agreement with labour leaders, shows the commitment of the Federal Government to the welfare of the people and should quench the noise of an impending protest.
The President, last week, approved a new minimum wage of N70, 000 for Nigerian workers and pledged to review the national minimum wage law every three years.
Attorney-General and Minister of Justice, Lateef Fagbemi, appealed to the National Assembly to speed up the process of passing the amendment to the 2024 Budget, which is meant to fund the new minimum wage.
He noted the perfect timing of the new minimum wage law, noting that it would make life better for the Nigerian worker.
“It couldn’t have come at a better time than today, the President had indicated that you are likely to come and that he will put every assignment aside to welcome you and perform the signing ceremony.
“By the signing of this bill into law, the welfare of the Nigerian workers has been more than enhanced by more than 200 per cent. We are grateful for this and we also urge you that the budget which will also fund it, you should help us pass it expeditiously as you have done with this one,” Fagbemi said.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said, “It is indeed a very important occasion, very historic one and a very significant one, particularly at this time. Nigerian workers are getting a huge boost compared to what was there before and I can assure that in terms of implementation, every effort will be made to ensure that there is speedy, full implementation of this new all-important Minimum Wage Act.”
President Tinubu’s move followed months of talks with labour unions, which insisted on a new minimum in the wake of the fuel subsidy removal and the floating of the naira – both steps ballooning the cost of living.
Labour unions had initially proposed ₦494,000 as a new minimum wage with the government offering ₦60,000.
After a series of negotiations, the workers demanded ₦250,000 while the government shifted grounds to N62, 000.
But on July 18, the Federal Government and the unions reached a consensus figure of ₦70,000.
“We are happy to announce today (Thursday) that both the organised labour and the Federal Government have agreed on an increase on the N62, 000 minimum wage. The new national minimum that Mr President is expected to submit to the National Assembly is ₦70,000,” the Minister of Information Mohammed Idris told State House correspondents after a meeting between government officials, and labour leaders.
The ₦70,000 will also be reviewed every three years. After the truce, President Tinubu immediately transmitted the bill to the National Assembly for passage. The lawmakers wasted no time in doing that, passing the bill in one day.
“He quoted the C-G as reaffirming the service‘s resolve to support the realisation of government policies, particularly the policy direction of President Bola Tinubu’s administration for a better Nigeria.”
While labour had also insisted on a better deal for workers, owing to the hike in the cost of living, Tinubu had promised that his government would only pay what is sustainable.
“You have to cut your coat according to the available cloth. Before we can finalise the minimum wage process, we have to look at the structure,” Tinubu insisted after meeting labour leaders.
The new law comes as the cost of living soars in Nigeria. The country’s inflation figure hit 34 per cent in June, 2024, according to the National Bureau of Statistics.
FG DIRECTS NNPC TO SELL CRUDE TO DANGOTE REFINERY, OTHERS IN NAIRA
In a related development, the Federal Government has instructed the Nigerian National Petroleum Company to sell crude oil to the Dangote Refinery exclusively in naira, in a bid to boost the local currency and promote domestic economic activities.
The Special Adviser to President Tinubu on Information and Publicity, Bayo Onanuga, said on Monday that the Federal Executive Council adopted a proposal to sell crude to Dangote Refinery and other upcoming refineries in naira.
“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four,” Onanuga said on his X account.
He added, “The FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot. The exchange rate will be fixed for the duration of this transaction.
“Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game-changing intervention will eliminate the need for international letters of credit. It will also save the country billions of dollars used in importing refined fuel.”
The Chairman of Federal Inland Revenue Service, Zacch Adedeji, also confirmed the move while briefing State House Journalists, after a meeting of the Federal Executive Council meeting presided over by President Tinubu.
Adedeji, disclosed that the arrangement was facilitated by AFREXIM bank to promote trade of crude oil in local currency.
“With effect from today, the Nigeria National Petroleum Company Limited (NNPC) will sell crude oil to local refineries and engage with the refineries on the basis of local currency.
“The sale of crude oil to Dangote refinery will be done in naira to reduce pressure on the local refineries,” Adedeji said.
He noted that about $660m or N7.92b is spent to procure crude which places pressure on the nation’s foreign exchange, which the new measures will aim to reduce by about 90%.
Giving details on the economic benefits, Adedeji said the new policy will make economic predictability a reality.
Other benefits include reduction in foreign exchange pressures by about 94 per cent and saving of finance cost of about $79 million.
“Council approves that AFREXIM bank will be the settlement bank, while the government will definitely be in charge of the mainstay of our economy,” he said.
NCS RECORDS 127% REVENUE SURGE IN SIX MONTHS, COLLECTS N2.74TRN
Meanwhile, the Nigeria Customs Service said it has recorded a 127 per cent increase in revenue in the first half of 2024 compared to 2023.
The service’s National Public Relations Officer, Abdullahi Maiwada, made this known in a statement on Monday in Abuja.
Maiwada said the service’s mid-year performance indicated remarkable success in the first half of 2024.
“With a half-year revenue target of N2.54 trillion, the service has collected N2.74 trillion, surpassing the target by eight per cent and marking a 127 per cent increase over the previous year’s revenue.
“N1.395 trillion was collected for the second quarter, exceeding the quarterly target by 10 per cent and representing a 131 per cent increase over Q2 2023,” he said.
Maiwada said that the key initiatives that contributed to the feat included its e-auction platform, which generated more than N1.34bn.
He added that the 90-day duty payment window for uncustomed vehicles added N4.37bn to the revenue.
According to Maiwada, these measures have significantly enhanced transparency, compliance, and efficiency in customs processes, underscoring the NCS’s commitment to excellence.
He said that during the period under review, the service intensified its anti-smuggling operations, recording 2,442 seizures with a Duty Paid Value of more than N25bn from January to June 2024.
The customs spokesman said the figure was 203 per cent higher than the DPV of seizures in the first half of 2023.
“In the second quarter of 2024, the NCS made 1,334 seizures with a DPV of N 17,564,384,378, representing a 121 per cent increase over the first quarter of 2024.
“The top items seized include wildlife items, vehicles, arms and ammunition, foreign rice, pharmaceuticals, and narcotics, with 32 suspects in custody,” Maiwada said.
He said the NCS processed 620,467 Single Goods Declarations in the first half of 2024, reflecting a reduction of approximately 39 per cent, compared to the same period in 2023.
“In spite of this decline, the NCS has implemented several key initiatives to simplify and expedite customs processes.
“These include reinforcement of NCS automation procedures, capacity-building programs for officers, and public-private partnerships to enhance customs clearance efficiency.
“These efforts are crucial for enhancing Nigeria’s trade competitiveness and supporting economic growth,” Maiwada said.
According to the spokesperson, the NCS faced several challenges in the first half of 2024, including significant fluctuations in the exchange rate.
Others were lower volume of transactions, low compliance levels among importers and exporters, and periodic downtime.
Miawada said the challenges affected the consistency of revenue collection and overall operational efficiency.
He further explained that to address these challenges and enhance revenue collection, the NCS implemented several strategies.
They included real-time system auditing, post-clearance audits, and the verification of documents for the Pre-Arrival Assessment Report.
Maiwada added that other strategies deployed included ensuring compliance with import guidelines and implementing a pilot test for the Authorised Economic Operators scheme.
The spokesperson said that the NCS recently implemented measures aimed at achieving its constitutional duties.
They included the Advance Ruling System, inaugurating Operation Whirlwind, reshuffling strategic-level officers, and robust stakeholder’s engagement.
Maiwada said that NCS Comptroller General, Adewale Adeniyi, had acknowledged the commitment and diligence of its personnel.
