Business News
Nigeria ranks least on ‘surviving on minimum wage’ report
There has been a back and forth discussion between the Federal Government and the Nigerian Labour Congress (NLC) on the current minimum wage of N18,000. The unending negotiation has been about wage increment, which will see the workers receive N30,000 month end.
There has been a back and forth discussion between the Federal Government and the Nigerian Labour Congress (NLC) on the current minimum wage of N18,000. The unending negotiation has been about wage increment, which will see the minimum wage at N30,000.
The demand for wage increment has been deemed impossible by the Federal Government and some State governments until recently when the Buhari-administration constituted a Technical Committee on the Implementation of a new Minimum Wage.
While the presidency is still seeking alternative revenue sources to implement the new minimum wage, a new survey has been released by Picodi Analysts to determine how sustainable the minimum wage across the world is, in relation to prices of basic food products.
The argument on the part of Labour has been the continued increase in the cost of living in Nigeria, while workers’ salary has remained static since 2011. The current minimum wage is tagged as not being suitable for a quality standard of living within the country, and this new survey has proven the aforementioned opinion to be true.
Picodi Analysis Report
The question of whether a minimum wage is high enough to allow us to meet the basic nutritional needs still remains. Picodi.com Analysis Team decided to take a closer look at prices of the 8 universal food groups in 52 countries and confront them with the current minimum wage in respective countries. It turns out that in some countries the minimum wage is barely high enough to purchase a modest nutritious food basket.
Prices of basic food products
The survey identified eight universal food groups, such as bread, milk, rice, eggs, cheese, meat, fruits and vegetables. These are basic nutritional products found on the shopping list of most adult-population in Nigeria and globally.
According to the list of items identified, an adult will spend an average of ₦31,536 on the basic product list.
Contents of the shopping basket and the average prices:
Milk (10l) — ₦7,807
Bread (10 loaves, 500g each) — ₦3,278
Rice (2.5kg) — ₦1,025
Eggs (20) — ₦868
Cheese (1kg) — ₦1,456
Poultry and beef (6kg) — ₦7,886
Fruits (6kg) — ₦4,543
Vegetables (8kg) — ₦4,673
Ratio of food prices to minimum wage
As seen in the list of products pricing, a worker in Nigeria is likely to spend double their minimum wage on household goods. The minimum wage in relation with the necessary global nutritional products is next to nothing, attesting to the statement that a worker is denied a quality standard of living in Nigeria every month.
“Considering the average prices of food in Nigeria, expenditure on basic food products makes 194.7 per cent of the minimum wage”, the report stated.
This places Nigeria behind 51 countries, and last on the list of most favourable minimum wages across the world.
Countries like Australia, Ireland and the United Kingdom will spend about 7 per cent of their wages on these basic products, while countries like South Africa, Malaysia, Pakistan, Vietnam and India will spend between 30 per cent to 61 per cent of their minimum wage on these items.
Business
HealthPlus crisis: Alta Semper directors reported to Police for trespassing
HealthPlus has made a formal complaint to the Police following its ensuing battle with Alta Semper.
Nigerian Pharmacy Chain, HealthPlus Ltd which is in a battle for control with private equity firm Alta Semper Capital took a new twist as Health plus reported Alta Semper directors to the police last week, as observed in a document seen by Nairametrics.
In a letter sent to the Assistant Inspector General of Police on the 25th of September, HealthPlus stated, “We had the presence of unknown persons around our head office locations.”
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The locations stated were 4 HealthPlus branches in Lekki, Lagos.
HealthPlus stated further, “We are aware that there are unauthorized and illegal plans by certain persons to take over our company premises to steal sensitive company property and assets, and ultimately take over operations of the company”
The 4 persons mentioned by HealthPlus are; Zachary Fond and Ivan Genadiev (both Alta Semper Directors), Ernest Eguasa, CFO of company and an unidentified middle-aged white man.
Explore the Nairametrics Research Website for Economic and Financial Data
Niarametrics reported last week that HealthPlus Limited appointed Chidi Okoro as Chief Transformation Officer.
However, the announcement set off a chain of allegations and counter-accusations, including online media mudslinging with both sides trying to court public sympathy for who is in control of the company.
Economy & Politics
P&ID dispute: UK Court orders $200 million guarantee to FG
Nigeria’s Foreign Exchange Reserves was boosted after a London Court ordered the release of $200Million placed as security in the case against P&ID.
A London Commercial Court has ordered the release of a $200 million guarantee as security to be paid to the Nigerian government in the P&ID $10 billion Arbitral Claim.
This was disclosed in a social media statement by the Central Bank of Nigeria on Tuesday.
Nigeria's Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.
— Central Bank of Nigeria (@cenbank) September 29, 2020
Nairametrics reported earlier this month that The Federal Government secured a landmark victory in its bid to overturn a $10 billion arbitration judgment award against it in a case against Process and Industrial Developments (P&ID).
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The Court said that Nigeria has established a strong prima case that the contract was procured by bribes paid to insiders as part of a larger scheme to defraud Nigeria. He said that there is also a strong prima face case that the P&ID’s main witness in the arbitration, Mr Quinn, gave perjured evidence to the tribunal, and that contrary to that evidence, P&ID was not in the position to perform the contract.
In today’s statement, the CBN said, “Nigeria’s Foreign Exchange Reserves was this morning boosted by over $200Million when the London Commercial Court ordered the release of the $200Million guarantee put in place as security in respect of the execution of the much discredited P&ID $10 Billion Arbitral Claim.”
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“The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.”
On January 31, 2017, an arbitration tribunal had ruled that Nigeria should pay P&ID, the sum of $6.6 billion as damages and breach of contract after a 2010 deal for a gas project in the Niger Delta part of Nigeria collapsed. The pre and post judgement accrued interest of 7% has seen the amount standing against Nigeria, rise to almost $10 billion, an amount that will be a serious dent on the country’s external reserve.
Business
FG to revitalize rice farms in rice producing regions
The Minister stated that rice production is expected to increase as the government continues to revitalize rice farmers.
The Federal Government has stated that Rice Farms in Anambra State and other regions will be revitalized to boost rice production, create jobs and also improve the living standard of the people in the State and the region.
This was disclosed by the Minister of State, Agriculture and Rural Development, Hon. Mustapha Baba Shehuri, during the assessment of Federal Government Rice Farms/Mills in Omor and Umerum in Anambra State.
Given the importance of rice as a staple in Nigeria, the Minister stated that the Federal Government is taking steps to achieve self-sufficiency in rice production, and this is evident in the policies of the government in achieving food and nutrition security, import substitution and promotion of inclusive economic growth across all sectors of the economy.
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Government Policy Interventions in Agriculture and Rural Development has helped to develop the rice sector, and these interventions include the provision of farm inputs such as agrochemicals, organic fertilizers, knapsack sprayers, planting & harvesting equipment such as reapers, mini combine harvesters, threshers at a subsidized rate in order to increase productivity.
The Minister added that these policies have not only increased the quantity of rice produced annually but interventions through the provision of modern rice milling machines to small/medium scale processors, has also helped to improve the quality of Nigeria milled rice to international standard.
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However, Nigeria’s rice consumption still holds higher than production, but government interventions through myriads of policies have increased rice production from 4.8 million metric tons of milled rice in 2015 to over 6 million metric tons by 2019 with a huge reduction in the nation’s deficit. Hon. Mustapha Baba Shehuri explained that production is expected to increase as the government continues to revitalize rice farmers.
Shehuri said that ”the Ministry has established 23 Paddy Aggregation Centers nationwide to aggregate and store paddy. The centres were given to members of the Paddy Dealers Association of Nigeria (PRIDAN) under the public-private partnership arrangement”.
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In like manners, there will be the dissemination of modern rice production and processing technologies, through capacity building of farmers and processors directly and also in conjunction with the international donor agencies such as Japan International Cooperation Agency (JICA), Food and Agriculture Organization (FAO), German International Cooperation (GIZ), International Fund for Agricultural Development (IFAD), Competitive Africa Rice Initiative (CARI), AfricaRice.
He reiterated that the Ministry is currently responding to the challenges of food availability posed by the COVID-19 pandemic by supporting smallholder farmers nationwide with various inputs including certified seeds of improved varieties of food crops such as rice, maize, sorghum, wheat, orange-flesh sweet potato, groundnut cowpea, soybean, yam, as well as cash crops like cashew, cocoa, sesame, oil palm, gum Arabic. Others include herbicides, pesticides and agricultural machinery such as rice reapers, transplanters, power tillers motorized sprayers and processing equipment.
These interventions are expected to alleviate the effect of the pandemic on farmers and ensure that they keep producing food for the country.
HealthPlus crisis: Alta Semper directors reported to Police for trespassing
P&ID dispute: UK Court orders $200 million guarantee to FG
FG to revitalize rice farms in rice producing regions
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