The Nigerian Minister of Labour and Employment, Senator Chris Ngige, has disclosed that the new national minimum wage of N30,000 has become effective since April 18, stressing that state governments and employers yet to commence payment by the end of May 2019 should consider themselves already in deficit and must pay all arrears.
The Minister reportedly disclosed this to journalists in Abuja, further noting that arriving at the new minimum wage was a tortuous and excruciating journey, and stating the only thing delay full implementation is budget approval.
“Every state government is now owing their workers if they have not started paying N30,000. They are owing workers effective from 18th of April, the new minimum wage.”
Implementation not negotiable – There have been speculations of uncertainties surrounding the implementation of the new N30,000 minimum wage. Analysts have stressed that going by the antecedents of several states and the obvious low Internally Generated Revenue (IGR), it is unlikely for full implementation of the minimum wage.
However, Ngige cleared the air and addressed claims of agitations of state governors not ready to pay the new wage, the minister stressed that the National minimum wage law is now a national law and no governor can say he would not pay.
“The Issue of the national minimum wage is item 34 on the exclusive legislative list of the third schedule of the Nigerian constitution. Issue of labour is also there and not on the concurrent list. If it is on the concurrent list, then they can make their own state Assembly laws on that.”
Also, Ngige stated that the consequential effects of how the wage adjustment will affect other cadres of the workforce are already being discussed as a committee is already set up to design a new salary template.
“We are now in a committee working out a new template with which we will adjust upward the consequential adjustment for those already earning above N30,000. The minimum wage is for the most vulnerable down the ladder and that is the man on grade level.”
Implementation bottleneck – The minister further emphasized that some employers in the private sector adjusted immediately to the new minimum wage due to the ease of adjustment. However, Ngige further noted that in the government sector, the bureaucracy and bottleneck of government are responsible for the delay.
“You know that you must budget for it. That is what is causing the delay. But whenever the encumbrances are removed, they will pay arrears with effect from 18th April 2019. So, the sooner an establishment starts paying, the better for you so that you don’t take a huge backlog that you cannot take.”
Warning to Governors – Ngige stressed that state governments should be careful not to make the same mistake they made after the N18,000 minimum wage was passed.
“In 2011, there was a mistake in the consequential adjustment in some states when they applied the principle of percentage increase across the board and they ran into trouble and were unable to pay.”
Meanwhile, the minister noted that the new N30,000 translates into is a 67% increase. Hence, if a state government apply the same 67% increase across the board, there will be serious trouble which will result in trade disputes across states.
elev8 launches new Nigeria Academy, to host event series on Nigeria’s digital future
The event will bring together experts in business, digital technology and economic development to amplify Nigeria’s digital dialogue.
Global technology training company elev8 is delighted to announce the launch of its new academy in Lagos with a series of online events focused on digital transformation in Nigeria.
The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future is an opportunity for business leaders to participate in Nigeria’s digital dialogue with industry experts, technology trailblazers and government leaders.
C-suite executives and digital leaders across the country are invited to join elev8 for a special series of events exploring the impact of new technologies and digitalization, as well as the potential risks to economic growth, such as Covid-19.
Digital enablement is increasingly becoming a hot topic for global businesses. In the next few years, the digital economy is projected to be responsible for a quarter of global GDP.
Across the world, businesses are accelerating digital adoption to establish a competitive edge, drive growth and ensure efficiency. For Nigeria to compete on the world stage, investment in new technologies and skills is essential in supporting a transition to a knowledge-based economy.
Digital Event: The Knowledge-based Economy – A Pathway to Nigeria’s Digitally Enabled Future
30 November – 3 December
The event will commence with the release of a cutting-edge research report on November 30. Produced in conjunction with BusinessDay Research and Intelligence Unit.
The report examines the impact of digital transformation on Nigeria’s economic growth over the next three years.
On December 1, participants will gain valuable insight on the digital strategies and tactics deployed by leading market players in an exclusive masterclass, Digitize or Die, hosted by award-winning technology and digital innovator, Sabine VanderLinden.
The event will close on Thursday, December 3 with a live digital dialogue, featuring an expert panel of digital specialists, government figures, and business leaders, looking at the ways that digitization will impact Nigeria’s economic development.
To find out more, or register for the event, please visit: www.elev8me.com/nigeria20
ValuAlliance distributes value fund of N10 per unit for H1, 2020
ValuAlliance Value Fund has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020.
ValuAlliance Value Fund (“Value Fund” or the “Fund”), formerly called the SIM Capital Alliance Value Fund, has declared the distribution to unit holders, the sum of N10.00/unit for the financial year ended June 30, 2020.
This is according to a notification by the firm, sent to the Nigerian Stock Exchange market and seen by Nairametrics.
The latest distribution indicates a decline of N1/unit when compared to its distribution in the corresponding period last year.
(READ MORE: SEC reinstates DEAP Capital’s Board)
The key highlights of the recent notification include:
- Annual General Meeting Date: 21st December 2020
- AGM Venue: 33A Alfred Rewane (Kingsway) Road, Ikoyi, Lagos, Nigeria
- Proposed Distribution: ₦10/unit
- Qualification Date: 9th December 2020
- Closure of Register Date: 10th December 2020
- Payment Date: 23rd December 2020
What you should know
- The Value Fund is a closed-end Fund registered and regulated by the Securities and Exchange Commission (SEC), whose units are listed on the main board of the NSE.
- The Value Fund for the year ended June 30, 2020 achieved a growth of 2.83% Year-on-Year, with a cumulative return of 125.32% since inception, which translates to a 9-year Internal Rate of Return (IRR) of 12.06%.
Nigeria generates N416.01 billion from Company Income Tax in Q3 2020
Total company income tax generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in Q2 2020.
Nigeria generated the sum of N416.01 billion from Company Income Tax (CIT) in the third quarter of 2020. This was revealed in the Company Income Tax by Sectors report, recently released by the National Bureau of Statistics (NBS).
According to the report, the total CIT generated increased by 3.48% in Q3 2020, compared to N402.03 billion recorded in the previous quarter (Q2 2020). It reduced by 20.13% compared to N520.89 billion recorded in the corresponding quarter (Q3) of 2019.
- Company income tax generated year-to-date sums up to N1.11 trillion as against N1.26 trillion in the comparable period of 2019.
- Professional Services including Telecoms generated the highest amount of CIT with N55.52 billion generated, closely followed by Other Manufacturing with N42.03 billion.
- Banks & Financial Institutions generated a sum of N24.05 billion.
- Mining generated the least, closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million, and N321.72 million generated respectively.
Out of the total amount generated in Q3 2020, N244.70 billion was generated as CIT locally, while N70.34 billion was generated as foreign CIT payment. The balance of N100.97 billion was generated as income taxes from other payments.
Automobiles and Assemblies grows CIT by 994%
In terms of sectors with the highest increase in company income tax remittances, the Automobiles and Assemblies sector grew its CIT by 994%, from N81.6 million in Q2 2020 to N892.7 million. It was closely followed by the Gas sector, which grew its CIT by 626% to stand at N4.76 billion from N655.5 million.
On the flip side, transport and haulage services recorded the highest decline in company income tax, as it reduced by 76% to stand at N7.35 billion from N31.1 billion. This is closely followed by Banks and financial institutions, which declined by 51% to stand at N24.1 billion.
The rise in company income tax is an indication of the Nigerian government’s move to improve the generation of revenue from the fiscal side as against oil exportation. However, the halt in economic activities due to the COVID-19 pandemic contributed to the year-on-year decline in company income tax.