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New Minimum Wage: Labour gives final deadline for full implementation

New minimum wage full implementation should not exceed December -Labour to FG

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Minimum wage, Oil marketers back out of NLC, TUC nationwide strike, support deregulation policy

Labour union under the auspices of Trade Union Congress (TUC) has given the Federal Government a final deadline to fully implement the N30,000 new national minimum wage.

The Labour union also brought to notice that any reduction in the N30,000 agreed by the Tripartite Committee on the National Minimum Wage, as contained in the committee’s report to the President or any further delay in its passage will lead to devastating consequences.

The President of TUC, Comrade Bobboi Bala Kaigama and the Secretary-General of the Association of Senior Civil Servant of Nigeria (ASCSN), Comrade Bashir Lawal, gave the warning at the National Executive Council (NEC) meeting of the ASCSN, held at Chida Hotel in Abuja on Tuesday.

In his speech, Kaigama who is also the National President of ASCSN maintained that the expectation of labour is that the full implementation of the N30,000 new minimum wage should not exceed December.

Kaigama said

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“The Federal Government is advised to avoid any action that can delay or truncate the process of enacting the new Minimum Wage as the consequences of allowing that to happen can be very devastating.

“Our expectation is that the Government should be able to complete the entire process before the end of this year so that workers who have waited for so long can begin to enjoy a new lease of life provided by the newly agreed minimum wage.”

Nairametrics had reported that the Nigerian Labour Congress (NLC)  suspended a nationwide strike, which was expected to take place November 6, 2018.

NLC President Ayuba Wabba disclosed this after an agreement was reached between the union, Government and the private sector over the new minimum wage.

Prior to This 

President Muhammadu Buhari, in November last year, inaugurated the National Wage Committee led by former minister and Head of Service, Ama Pepple.

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During the 40th anniversary of NLC in Abuja, the minister had stated that the new minimum wage would commence before the end of September, this year. He later backtracked, because the state governors were yet to submit their proposal on a new wage system.

In order to mount pressure on the Federal Government, the NLC gave a two-week ultimatum and then commenced a nationwide strike. 

The minimum wage was last increased by the Goodluck Jonathan administration in 2011 from ₦7,500 to ₦18,000.

Famuyiwa Damilare is a trained journalist. He holds a Higher National Diploma (HND) in Mass Communication at the prestigious Nigerian Institute of Journalism (NIJ). Damilare is an innovative and transformational leader with broad-based expertise in journalism and media practice at large. He has explored his proven ability in the areas of reporting, curating and generating contents, creatively establishing social media engagements, and mobile editing of videos. It is safe to say he’s a multimedia journalist.

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Macro-Economic News

Consumers overall confidence index dipped by 25.0% Y-o-Y- CBN

According to the latest Consumer Expectations Survey Report for Q3, 2020, consumers’ overall confidence index dipped to -21.2 points.

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The consumers’ overall confidence index dipped to -21.2 points as at the third quarters of 2020(Q3,2020), down by 25.0%, from 3.8 points it recorded in the corresponding period last year. This is according to the latest Consumer Expectations Survey Report for Q3, 2020

What this means: The slip in outlook indicates that consumers were pessimistic in their outlook for Q3 2020. Respondents attributed this unfavourable outlook to declining economic conditions, family financial situation and declining family income.

The consumers were however optimistic in their outlook for the next quarter and next 12 months with indices of 10.1 and 30.5 points, respectively. This positive outlook could be attributed to the expected increase in net household income, an anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and/or have plenty over savings in the next quarter and the next 12 months

Why this matter: The pandemic negatively impacted consumers’ income and businesses. Hence, the CBN wanted to gauge the impact of this pandemic on their confidence and outlook, both in the past and going forward, through their quarterly survey.

Other Key Highlights:

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  • The unemployment index for the next 12 months remained positive at 35.4 points in Q3 2020, indicating that consumers generally expect the unemployment rate to rise in the next one year.
  • With indices of 20.8 and 5.3 points, consumers expect the borrowing rate to rise and anticipate the naira to appreciate in the next 12 months.
  • Overall buying intention index in the next twelve months stood at 29.7 index points, indicating that most consumers do not intend to buy big-ticket items in the next 12 months. The buying intention indices for consumer durables, motor vehicles and house & lot were below 50 points, which shows that respondents have no plans to make these purchases in the next twelve months.

What you should know

The Overall consumer confidence index is computed as the average of the three indices, namely: Economic Condition, Family Financial Situation and Family Income.

a. Economic Condition refers to the perception of the respondent regarding the general economic condition of the country.
b. Family Financial Situation refers to the level of savings, investments, other assets including cash at hand and outstanding debts.
c. Family Income includes primary income and receipts from other sources received by all family members as participants in any economic activity or as recipients of transfers, pensions, grants, and the like

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Energy

Power: Nigeria records transmission peak of 5,459.50MW – TCN

TCN has announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.

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Discos, TCN suspends KEDCO, TCN suspend Kano Electricity Distribution Company, Kano Electricity Distribution Company, Transmission Company of Nigeria, Market Operator in Nigeria's power sector

The Transmission Company of Nigeria (TCN) announced that it hit a peak transmission of 5,459.50MW on the 28th, October 2020.

This was disclosed on Thursday in a statement by Ms Ndidi Mbah, General Manager, Public Affairs, TCN.

She said Nigeria hit the milestone on October 28th and surpassed the earlier record of 5,420.30MW achieved on August 18.

What you should know

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Nairametrics reported that the Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has grown from 8,000MW to 13,000MW under the leadership of President Muhammadu Buhari.

The new peak surpasses the 5,420.30MW achieved on Aug. 18 by 39.20MW,” Ms Mbah said.

The Acting Managing Director, Mr Sule Ahmed Abdulaziz, commended all the players in the power sector value chain for the feat.

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He attributed the gradual but steady improvement in the quantum of power delivery to collaboration by the sector players, as well as, the unbridled effort by the Federal Government – through the Ministry of Power – in setting the right environment for seamless operations.

The Acting Managing Director said the company will continue workings towards improved power transmission across the nation.

Nairametrics reported in August that the Federal Government of Nigeria revealed that the Siemens $2 billion power deal, under the Presidential Power Initiative (PPI) will save the nation over $1 billion annually.

Structure of the PPI funding:

  • 85% from a consortium of banks guaranteed by the German government through credit insurance firm, Euler Hermes.
  • 15% of the FG’s counterpart funding.
  • 2–3 years moratorium.
  • 10–12 years repayment at concessionary interest rates.

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Financial Services

CBN grants Mortgage Refinancing Companies approval to refinance Non-member banks

The CBN has expanded access to mortgage financing by removing restrictions on refinancing mortgages earlier imposed.

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P&ID dispute: UK Court orders $200 million guarantee to FG, Leaked letter by Poultry Farmers Association triggered CBN emergency approval to import maize, nImplications of CBN's latest devaluation and FX unification, current account deficit, IMF, COVID-19, CBN OMO ban could give stocks a much-needed boost , CBN’s N132.56 billion T-bills auction records oversubscription by 327% , Nigeria pays $1.09 billion to service external debt in 9 months , Implications of the new CBN stance on treasury bill sale to individuals, Digital technology and blockchain altering conventional banking models - Emefiele  , Increasing food prices might erase chances of CBN cutting interest rate   , Customer complaint against excess/unauthorized charges hits 1, 612 - CBN , CBN moves to reduce cassava derivatives import worth $600 million  , Invest in infrastructural development - CBN Governor admonishes investors , Credit to government declines, as Credit to private sector hits N25.8 trillion, CBN sets N10 billion minimum capital for Mortgage firms, CBN sets N10 billion minimum capital for Mortgage firms , Why you should be worried about the latest drop in external reserves, CBN, Alert: CBN issues N847.4 billion treasury bills for Q1 2020 , PMI: Nigeria’s manufacturing sector gains momentum in November, CBN warns high foreign credits could collapse Nigeria’s economy, predicts high poverty, MPC Member, BVN, Fitch, Foreign excchange (Forex), Overnight rates crash after CBN’s N1.4 trillion deduction, Nigeria’s foreign reserves hit $36.57 billion; Emefiele keeps his word on defending the naira, CBN to support maize farmers, projects 12.5 million metric tons in 18 months, BREAKING: CBN Upscales Greenwich Trust Limited, grants it's operational license for merchant banking, AGSMEIS: CBN expand beneficiaries to 14,638., CBN expands access to mortgage financing

The Central Bank of Nigeria (CBN), has granted approval to Mortgage Refinancing Companies (MRC), to re-finance non-member banks.

This is contained in a circular referenced FPR/DIR/GEN/CIR/07/056 and signed by Ibrahim Tukur, the Director of Financial Policy and Regulation Department, CBN.

The circular improved on the earlier provisions contained in section 7.3.1.5 which states that “A mortgage refinance company (MRC) shall not, without the prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than twenty times the value of the borrower’s shares with the MRC or 25 percent of its shareholders’ funds unimpaired by losses.”

READ MORE: Unity bank wants to be seen, but time is running low

READ: NFF receives $1 million from FIFA as COVID-19 palliative

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What this means

Based on the provisions contained in the latest circular, MRCs are now free and legally permitted to refinance the qualifying mortgages of banks and all other non-members ( that do not hold equity), subject to meeting all other relevant requirements specified in the framework.

In a nutshell, the restriction on non-member mortgage lenders from refinancing their mortgages with MRCs has been removed.

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READ: MFBs, DMBs, others get new lending limit directive from CBN

Why this matters

Prior to the provisions contained in the latest circular, CBN had expressed fears that provisions of section 7.3.1.5 negatively impacts the mortgages sub-sector, as it constrains the MRCS from refinancing the mortgages of non-shareholder banks. Therefore, the new order will help to remove the restrictions already highlighted.

In lieu of this, the latest circular stated that the provision of section 7.3.1 5 is hereby revised to “the MRC shall not, without prior approval of the CBN, extend total outstanding credit to any single borrower, which is equal to or more than 25 percent of its shareholders’ funds unimpaired by losses,” the circular reads.

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