Editorial
May Day! May Day!! May Day!!!
Nigerian workers will tomorrow be part of their counterparts worldwide to observe this year’s Workers’ Day popularly called May Day. Workers may also bemoan their deteriorating situations as they mark the 2021 version of the event tomorrow. May Day in Nigeria has constantly been used by the labour movement to spotlight problems that are threatening the industrial peace of the country.
It is a day workers have a good time and interface with their employers in a ceremonial mood. It is a day workers speak up and get answers on issues affecting them, even as the governments are expected to understand them. We join all well-meaning people to congratulate workers all over the world, especially Nigerian workers, on their contributions to humanity.
The most likely applicative issues this year may be the full implementation of the N30,000 minimum wage bill signed into law by President Muhammadu Buhari and the move by the National Assembly, particularly the House of Representatives, to change the minimum wage system in the country.
A bill now under discussion in the House of Representatives suggests a change wherein the country’s 36 states would each set their minimum wage rather than being decided by the Federal Government. Members of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), which constitute millions of workers across most sectors of Nigeria’s economy, filled the streets in Abuja as well as state capitals in protest at the proposed move.
Workers’ role in growing the economy, in addition to life and living as we have come to know it is huge. While the rest of the world may be celebrating that day, we strongly hope that the same will happen in Nigeria in earnest, where workers may have to come to terms with what they are up against. We think that labour may need to be circumspect and raise the mariners’ cry for help to save their straying and sinking ship.
The current state of insecurity in Nigeria has negatively impacted workers and their productivity. The insecurity variables range from theft to organised armed robbery, kidnapping and call for ransom, assassinations, repeated invasions and blockading of business installations, social injustice, lack of access to livelihood, the rising cost of living, and bombings. All these social maladies have made the Nigerian work environment complex.
Since the Covid-19 pandemic heat, the state of affairs of Nigerian workers has got worse. Several jobs were lost due to the pandemic. It is likely to be worsened given the impact the pandemic has had on trade globally. This is besides numerous government pronouncements that certain categories of workers remain at home. All of this means more Nigerians, especially in the lower class, could potentially be compelled to live below the poverty line.
Nobody goes dancing when his house is on fire. More than ever before, labour needs to wake up at least for the suffering families of Nigeria. In 2020, with Covid-19 disrupting everything in the world including relationships, with Nigeria suffering a debt and revenue crisis, the collapse of fiscal buffers, and sheer adversity, the Federal Government decided to pull the plugs. It blamed all of these factors and chose to announce the elimination of fuel subsidy.
The pump price of fuel, benchmarked to the spot price of crude oil in the international market, jumped through the roof and Nigerians groaned. The Federal Government argued that it was not left with any other option. Everyone expected that Organised Labour would intervene. But surprisingly they didn’t quite do so. Groups in civil society had to picket the Abuja headquarters of the NLC for the union to speak up and call the people out on the streets because life had become unbearable for the average Nigerian.
After being nudged, a combined team of the NLC and TUC finally declared that they would call out Labour on strike and shut down the country. They gave the Federal Government stringent conditions: a complete reversal of the hike in fuel price and electricity tariffs. Or else, Nigeria would be shut down indefinitely starting from September 28, 2020.
Labour’s sincerity of purpose was questioned. Nigerians felt they were just playing a game. The biggest tragedy that has befallen Organised Labour in the country is the thinking since 1999, that Labour’s leadership can be used as a stepping stone to a bigger role. Labour leaders use their positions to negotiate big benefits. They mouth revolutionary slogans and parrot aggressive rhetoric which has been confirmed to be a falsehood.
It is sad that since the paltry current minimum wage of N30,000 was signed into law by President Buhari, only a few states have started full implementation even though Nigeria has enough to save and much more for politicians to misappropriate. Added to the hardship faced by the worker, the value of the Naira has dropped beyond redemption and the prices of goods and services skyrocketed yet the survivability of the worker does not appear to matter.
In the private sector, Nigerians are in reality abused and treated as disposables and paid very ridiculous wages. They are disengaged without severance benefits. Some work for as long as 12 hours or more as casuals and Labour does nothing. The workers stand alone without help from any quarters, misunderstood and unsung. In the midst of this oddity, workers lose their voice, they cannot cry; they can neither speak to their employers nor reach their union leaders.
However, civil servants in Rivers State are exhilarated over the resolution of some pending labour concerns such as the full implementation of the minimum wage in the state. Governor Nyesom Wike deserves our commendation for his gesture in that regard. We urge the Beatrice Itubor led Labour to liaise with the government on the quick resolution of other issues recently considered by the tripartite committee.
Though it is inspiring that the governor has promised to look into the workers’ demands, we advise the tripartite committee to expedite action on the remainder of the assignment. Labour’s issues include arrears of minimum wage, promotion of civil servants from 2015, gratuity to pensioners, arrears of salaries to some civil servants who were not paid their February and March 2016 salaries due to the aborted biometric verification exercise of that year, etc.
As workers celebrate their day, Organised Labour in the country should realise that the current labour leadership has completely failed and exposed their gross incompetence and hypocrisy in the way labour matters are dealt with. Their lack of rigour, transparency and intellect provide a strong case for a pressing reform of labour leadership in Nigeria. Therefore, labour must reinvent itself or risk the tragedy of becoming insignificant.
Editorial
Another Look At Contributory Pension Scheme
In a report from the National Pension Commission (PenCom), it was disclosed that only 26 states in Ni-
geria have implemented the Contributory Pension Scheme (CPS), two decades after the Pension Reform Act (PRA) 2004 was passed. The report highlights the inconsistent espousal of the CPS across states, with some states partially adopting the scheme, others not yet participating, and some facing challenges in getting the bill approved in their state legislative assemblies.
In 2012, the Rivers State Government, under the leadership of former Governor Chibuike Rotimi Amaechi, embarked on a critical initiative by enforcing the Contributory Pension Scheme. This strategic move aimed to establish a sustainable pension system by requiring contributions from both the employer and the employee. The arrangement was designed to ensure that employees have a secured and reliable source of income post-retirement, fostering financial security and stability for the workforce.
Following the introduction of the plan, the government adopted a three-year transition that aimed to fully implement the scheme by 2015. During this transition period, the authorities focused on educating both employers and employees about the benefits and responsibilities of the CPS. This included workshops, seminars, and public awareness campaigns to ensure that all stakeholders were well-informed about the scheme.
The creation of the CPS represents an important milestone in the ongoing efforts to overhaul and enhance the state’s pension system, aiming to establish a more robust and secure retirement savings framework for its workforce. The primary objectives of the CPS are to effectively tackle the inherent shortcomings of the former pension system, including limited coverage, insufficient benefits, and financial uncertainty. This strategic framework is designed to ensure that employees receive sustainable and dependable retirement benefits.
However, to ensure fairness and protect the rights of all workers, it is imperative that the effective date of the contributory pension law be prospective, applying only to workers hired in or after 2012. This would allow those employed before 2012 to continue to benefit from the provisions of theDefined Benefit Scheme (DBS), while ensuring that new hirees are subject to the updated pension provisions.
Unfortunately, the pension programme has experienced several challenges. Despite monthly deductions being taken from civil servants’ salaries for their counterpart funding, the government has not fulfilled its obligation to contribute its share. This has impeded the advancement of the scheme and has left many civil servants without sufficient pension arrangements upon retirement.
As a result, the state pension law has undergone multiple revisions to address the issue of retiring civil servants who ordinarily should be covered by the contributory scheme. The amendments have aimed to accommodate these individuals within the DBS which provides a guaranteed level of pension, based on years of service and salary grade level.
The inability of the contributory pension scheme to gain traction has sparked worries about the long-term viability of the state pension system. The absence of government contributions has resulted in a funding shortfall that jeopardises the government’s capacity to fulfil its pension commitments to employees in the future.
Even if the CPS was created to address the perceived shortcomings and lack of sufficient funding of the DBS by combining funds from employers and employees’ contributions to pension funds custodians, retirees under the scheme have not experienced better outcomes than those who retired under the DBS. On the contrary, the execution of the CPS is different from what its advocates led employees to expect.
The complaints regarding the implementation of the CPS are varied and concerning. Retirees are underpaid despite years of dedicated service, with some having served for the mandatory 35 years. Corruption is rampant within the system, and many state governments and employers are not complying with the provisions of the Reform Act, 2014. Labour leaders in the country have criticised the scheme as being anti-workers and retirees welfare. The Association of Senior Civil Servants of Nigeria (ASCSN) has even called for the scheme to be scrapped, labelling it as a “huge fraud.”
Similarly, we urge the Rivers State Governor, Siminalayi Fubara, to completely abolish the contributory pension scheme in the state, as it will not benefit civil servants. We are particularly concerned about the future of workers who will retire under this scheme, especially since the current legislation allowing for the Defined Benefit Scheme will be obsolete in June next year, when the contributory pension law will be effective.
Moreover, the state government is deducting and remitting workers’ contributions to the pension scheme, but failing to contribute their own counterpart funds as required by law. This action is a violation of the rights of contributors as outlined in section 4(1) of the Pension Reform Act 2014. According to this section, employers are mandated to contribute a minimum of 10 per cent of an employee’s monthly salary to their pension fund administrators. Employers are also required to deduct a minimum of eight per cent from the employee’s salary and remit it to the fund administrator.
A government that supports labour rights, like the current one, should not allow workers to suffer from a failed retirement scheme. Workers who are close to retirement age should not have to face unnecessary challenges. The failure of the scheme is evident from the number of agencies that have withdrawn from it. Therefore, it is important for the state leadership to revoke the legislation.
Unlike previous administrations that may have disregarded the experiences of workers in the state, the present government has consistently recognised and appreciated their contributions. The labour-friendly policies of this government have shown its dedication to the well-being of workers. However, the failed retirement scheme remains a critical issue that needs to be addressed.
Editorial
Making Rivers Investment Destination
Determined to make a difference in governance, Rivers State Governor, Sir Siminalayi Fubara, has signed an Executive Order aimed at the establishment of an investment agency. This initiative is poised to coordinate the growing number of enquiries and business interests expressed by local and foreign investors who now consider the state a destination of first choice. The Governor has endorsed Executive Order No. 002 of 2024, establishing the Rivers State Investment Promotion Agency (RIPA), presented by the Attorney General and Commissioner for Justice, Dagogo Israel Iboroma, SAN.
The Governor explained that what he had just done was to give force to one of the recommendations in the report submitted to him by the committee that handled the organisation of the Rivers State Economic and Investment Summit in May. He said it was undisputed that the summit served as a veritable platform to open up the state for economic advancement, adding that the Investment Promotion Agency would be a one-stop shop to handle all related activities seamlessly in the state.
Fubara said: “This will enable investors, when they come in; they won’t need to run around, and maybe, fall into wrong hands or associations that will want to rip them off their investment stakes. With this, they will have an agency that they could go to, liaise with and the agency will have the required answers to whatever it is that they will need to address concerns before it.”
It is common knowledge that Rivers State is rich in natural resources and has a thriving economy primarily driven by oil and gas. However, beyond these industries, there is an abundance of other untapped opportunities in agriculture, tourism, and technology. Yet, despite its wealth of resources, the state has faced numerous challenges such as infrastructural deficits, poor governance in the past, and an economy heavily reliant on oil. As a result, diversifying the economy has become obligatory.
This development is a significant step towards making Rivers State a premier investment destination, with the Agency expected to play a critical role in attracting and retaining businesses, creating jobs, and driving economic growth. Fubara’s action points to the fact that beyond organising the summit, his administration can live up to fulfilling its promise of making Rivers State great again, economically. Any wonder the Governor stated he was not going to end with the signing of the Executive Order alone but would drive it to a conclusive end to achieve the desired fulfilment that Rivers people expected.
The recent inauguration of RIPA’s board marks a watershed moment in the state’s economic trajectory. Fubara’s decision to set up the Agency reflects his administration’s commitment to reversing the economic decline that has plagued the state for years. By appointing a new board, the government aims to inject fresh ideas and perspectives into the establishment, promoting a culture of transparency, efficiency, and accountability.
Entrepreneurial drive is strong in our state, leading to the daily rise of small-scale enterprises and new entrepreneurs. In today’s world, aspiring business owners frequently face challenges like insufficient funding, limited access to information about available resources, bureaucratic obstacles, and a lack of supportive government policies. The current administration should acknowledge these challenges and be dedicated to stimulating a favourable investment climate.
While the Governor’s vision and the Agency’s efforts are critical, achieving sustainable economic transformation will require collective engagement from all stakeholders. The active participation of the community, local businesses, and civil society is essential for the realisation of these goals. Community involvement is pivotal in ensuring that the needs and aspirations of the populace are integrated into the economic policies and initiatives. Creating avenues for public participation not only empowers citizens but also nurtures a shared sense of responsibility towards the development of the state.
The role of the media cannot be understated in this collective effort. The media serves as a watchdog and an informer, ensuring that the government remains accountable and that citizens are aware of opportunities and challenges in the economic landscape. As with any ambitious vision, several challenges may impede the speed to economic transformation in the state. These challenges must be acknowledged and addressed to ensure that progress is sustainable. The government, alongside the Agency, must proactively identify the barriers and develop strategic solutions.
Corruption remains a vital hurdle in many sectors in Nigeria, and Rivers State is no exception. To combat this, the government must demonstrate unwavering commitment to transparency and accountability, ensuring that funds allocated for development are utilised effectively. Also, the state must prioritise infrastructure development, which is foundational to economic growth. By investing in modern infrastructure, the government can lay the groundwork for enhanced productivity and attract local and foreign investors, nourishing an environment conducive to economic development.
Fostering partnerships with international organisations and development agencies can provide valuable resources and expertise. Such partnerships can facilitate technology transfer, capacity building, and investment opportunities that enrich the local economy. Furthermore, the message of economic transformation must be communicated to all residents of the state. Building awareness and consensus around the vision for the state will galvanise support and encourage collective participation in the transformation endeavour.
Undeniably, Fubara’s leadership and vision have given Rivers people hope for a better economic future and his initiative has put the state on the path to realising its full potential. Its commitment to creating an investment-friendly environment is necessary to attract investors and stimulate economic growth. RIPA’s mandate to return Rivers State to its rightful place as an economically viable entity is a challenge that requires collective effort and support.
Editorial
Checking Illegal Task Forces In Rivers
The operations of illegal task forces in Port Harcourt, the Rivers State capital, have become a major source of concern for residents and motorists. The task forces, which are not sanctioned by the government, have been accused of indiscriminately arresting vehicle owners and impounding their vehicles on the pretext that they violated traffic rules.
They often target vehicles parked in unauthorised areas or those that are allegedly driven recklessly. However, there have been numerous reports of vehicles being impounded even when the owners have not committed any offence. In some cases, the task force members have been accused of using excessive force and intimidation to coerce motorists into making unauthorised payments.
The confiscated vehicles are usually taken to Rivers Marine Company situate at Marine Base, a defunct firm owned by the Rivers State Government. The vehicles are held there until the owners pay a ‘fine’ to the task force. The amounts charged vary depending on the type of vehicle and the alleged offence. Many residents have complained that the task forces are making it difficult for them to go about their daily lives. They have also been accused of extortion.
Curiously, the hoodlums have found a sinister alliance with corrupt elements within the police force. They operate under the guise of police authority, using the uniforms of law enforcement to lend legitimacy to their nefarious activities. This unholy alliance has created a dangerous situation, where criminals are able to hide behind the facade of respectability, while engaging in their criminal enterprises.
Police Commissioner Mustapha Bala bears a heavy responsibility to restore order and protect the people from these criminals. He must take immediate action to identify and remove the corrupt officers who are working in cahoots with the hoodlums. A thorough investigation is needed to expose the extent of this collaboration and bring the perpetrators to justice.
Governor Siminalayi Fubara, upon assuming office, declared the disbandment of all task forces in Rivers State. However, recent events have raised questions about the continued existence and operation of these task forces. Their reappearance has sparked confusion and concern among the people, who are wondering how these entities can continue to function despite the Governor’s directive.
Task force proliferation has been a persistent issue in Rivers State, with various administrations attempting to address their perceived inefficiencies and negative impacts. The reemergence of these groups after the Governor’s disbandment order raises questions about the state’s commitment to implementing its own policies.
The continued existence of task forces despite the Governor’s directive undermines the credibility of the government and raises concerns about the rule of law in Rivers State. The government must take a decisive action to address this issue and ensure the arrest and prosecution of the culprits. The public deserves an explanation for the reappearance of illegal task forces in different parts of Port Harcourt and assurances that their activities will be curbed.
Gangsters’ infestation of Rivers Marine Company and other government facilities has reached an alarming level, demanding immediate and decisive action. These criminal elements have audaciously exploited the spaces as their operational strongholds, creating a pervasive atmosphere. The situation has deteriorated to a point where the legitimate operations of state-owned facilities are severely compromised.
It is unconscionable that such a vital government asset as Rivers Marine Company has fallen prey to these nefarious actors. The Ministry of Transport, as the custodian of this facility, bears the primary responsibility for ensuring its integrity and security. The current state of affairs is a glaring indictment of the ministry’s failure. The continued presence of criminals within the premises sends a dangerous message as to how lawlessness could be tolerated.
Swift and decisive action is paramount to reclaim the facility. The Transport Ministry must prioritise their immediate dislodgement from the company and other affected areas. This may require the deployment of security measures, including surveillance, access controls, and the establishment of a dedicated task force to combat gang activity.
Residents of the state who are approached by individuals claiming to be part of a task force should exercise extreme caution. These individuals may use aggressive tactics or make false promises to coerce payment. It is essential to remain calm and refuse to engage with them. Instead, they should promptly contact law enforcement authorities by visiting the nearest police station or dialing emergency hotlines, providing detailed information about the incident.
Creating job possibilities for young people is vital for fostering productivity and reducing crime rates within the state. If provided with meaningful employment, our youths will gain a sense of purpose and financial stability, which can deter them from engaging in illegal activities. Employment empowers youths to contribute to their communities and develop valuable skills, enhancing their future prospects.
Job creation policies specifically tailored towards youth can effectively address the unique challenges they face, such as lack of experience and limited access to training. These programmes can offer apprenticeships, internships, and on-the-job training openings, allowing youths to gain practical skills while earning a wage.
Furthermore, job opportunities provide youths with a sense of belonging and responsibility. When they have a stake in their state, they are less likely to engage in destructive or antisocial behaviour. Employment also promotes social inclusion and integration, reducing the likelihood of marginalised youth turning to sundry crimes.
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