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NLC strike ultimatum fuels Labour-FG tension

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The Nigeria Labour Congress has warned that Nigerian workers remain under severe economic pressure despite the increase in the national minimum wage to N70,000, insisting that its two-week ultimatum to the Federal Government over rising petrol prices and fresh wage negotiations remains in force.

The NLC president, Joe Ajaero, made the position clear on Monday in Abuja, where he criticised the implementation of the 2024 minimum wage agreement and called for urgent measures to address the rising cost of living.

Ajaero’s remarks came amid growing tensions between organised labour and the Federal Government over workers’ declining purchasing power, with the labour movement demanding petrol price relief and renewed negotiations on salaries.

While maintaining that the ultimatum stands, Ajaero urged the government to address workers’ hardship proactively rather than wait for strikes or protests to force action.

The Secretary to the Government of the Federation, George Akume, however, called for a balance between workers’ legitimate demands for improved remuneration and the government’s fiscal capacity, warning against avoidable industrial disputes.

The exchange underscores the widening challenge facing the government and organised labour as they seek to reconcile workers’ welfare with public finances amid economic reforms and rising expectations ahead of the 2027 general elections.

Ajaero said the government must address the declining purchasing power of workers rather than wait for organised labour to embark on industrial action before introducing measures to ease their hardship.

He said, “I’ve not come here to discuss my ultimatum. My ultimatum stands. I’ve said something about it, and this is not a table. The fact that the permanent secretary is here does not give us the opportunity to start negotiating an ultimatum. He has replied a letter, and we have replied him again. So, we will go into that game.

“But to the head of service, sir, Nigerian workers are really suffering. And if you do something, history and posterity will remember all of us for it.”

The labour leader’s remarks came amid growing tensions between organised labour and the Federal Government over the impact of rising petrol prices on household incomes and the adequacy of the existing minimum wage.

The NLC had issued a two-week ultimatum demanding a reduction in petrol prices and the commencement of fresh negotiations on the national minimum wage, arguing that prevailing economic conditions had eroded workers’ earnings.

Although Ajaero acknowledged ongoing exchanges with government officials over the ultimatum, he maintained that the retreat was not the appropriate forum for negotiations.

He said workers were facing severe financial difficulties, stressing that the N70,000 minimum wage agreed upon in 2024 had become inadequate to meet basic household needs.

Ajaero argued that workers were struggling to afford food and transportation, adding that the situation required urgent government intervention.

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He said, “The point we are making is not strike. The point we are making is that whether you enter bus or you buy fuel, you will not be able to eat.”

According to him, governments in other countries introduce measures to protect workers from economic hardship before industrial disputes escalate, rather than waiting until unions mobilise for protests or strikes.

He said the Federal Government should adopt a similar approach by addressing the concerns of workers through timely interventions and meaningful negotiations.

“But to wait for Labour to be on the street before we address this is not really what is happening all over the world. Countries all over the world will come with interventionary measures even before Labour acts on it. I think we should be more proactive,” he stated.

The NLC president also criticised the salary adjustments implemented after the 2024 minimum wage negotiations, disputing claims that federal workers received increases of about 133 per cent.

According to him, the government added N40,000 to the salaries of federal public servants, an adjustment he argued did not represent the percentage increase being attributed to the wage agreement.

He said, “After the last minimum wage negotiation, which some of you have been arguing that it attracted about 133 per cent increase, what the head of service—what they did was adding 40,000 to every worker. That’s not the real way to negotiate.

“All the federal public service workers, they added 40,000 to them. 40,000 does not translate to 100 per cent or 133 per cent. And the consequences are what we are facing now, sir.”

Ajaero maintained that the adjustment had failed to provide meaningful relief, particularly as inflation and higher transportation costs continued to weaken workers’ purchasing power.

He also expressed concern over unresolved industrial disputes, recalling an 84-day strike by health sector workers that was suspended following the intervention of organised labour.

According to him, more than a year after the intervention, the issues that prompted the strike had yet to be adequately addressed.

He further disclosed that workers under the National Public Service Negotiating Council had considered industrial action but were persuaded by labour leaders to suspend their plans.

Ajaero rejected suggestions that organised labour was being influenced by politicians, describing such accusations as insulting to workers seeking improved living conditions.

“No politician can use us. That’s the greatest insult, to tell me at this age and time, you know, to say a politician is using you when you ask for increase of workers’ salaries,” he said.

He appealed to government officials and the leadership of the wages commission to take workers’ concerns seriously and pursue solutions that would prevent further deterioration in industrial relations.

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The labour leader nevertheless expressed willingness to participate in the retreat and contribute to discussions on improving wage administration.

Meanwhile, the Secretary to the Government of the Federation, George Akume, called for a balance between workers’ demands for improved remuneration and the financial capacity of government.

Akume, represented by the Permanent Secretary, General Services Office, Office of the Secretary to the Government of the Federation, Dr Abubakar Kana, said wage decisions must reflect economic realities while promoting industrial harmony.

He said, “The commission must continually balance the legitimate expectations of workers with the fiscal realities of government and broader imperatives of national economic development.”

The SGF noted that ongoing economic reforms, rising public expectations and the approaching 2027 general elections had made the need for a fair and sustainable wage system more pressing.

He urged the commission to strengthen its capacity to anticipate emerging wage challenges and provide recommendations based on credible economic data and consultations with organised labour, employers and other stakeholders.

Akume identified three priorities for the commission, including stronger policy coordination, digital transformation and effective implementation of institutional reforms.

He also warned against avoidable industrial disputes, stressing that dialogue and cooperation were essential to maintaining economic stability.

“A credible and inclusive approach towards governance is indispensable to building trust, preventing avoidable industrial disputes like we’re about to have now, and promoting a stable environment for national development,” he said.

The SGF called for improvements in research, data management and administrative processes, alongside clear implementation timelines and measurable performance indicators.

He urged the commission’s newly constituted board and management to demonstrate accountability and ensure that decisions reached at the retreat translated into practical improvements.

Earlier, the Chairman and Chief Executive Officer of the National Salaries, Incomes and Wages Commission, Junaidu Bindawa, said Nigeria’s economic conditions required a more strategic approach to wage administration.

Bindawa noted that inflationary pressures, changing labour expectations and demands for public sector efficiency had increased the importance of sustainable salary policies.

He said wage administration directly affected workers’ welfare, public expenditure, industrial relations, productivity and the overall performance of the public service.

“Our work must reflect a careful balance between the legitimate expectation of workers, the imperatives of productivity and social justice, and the physical capacity of government,” he stated.

The chairman explained that the retreat, themed Vision, Strategy and Institutional Renewal, was designed to reposition the commission for greater effectiveness in addressing emerging wage and compensation issues.

He identified research, job evaluation, compensation management, public finance, industrial harmony and institutional accountability as critical areas requiring attention.

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Bindawa also called for stronger collaboration between the board and management, improved internal systems and the adoption of digital tools to support evidence-based decisions.

He said the retreat should produce a practical roadmap with clear priorities and measurable outcomes, rather than recommendations that would remain unimplemented.

In her welcome remarks, the Secretary to the commission, Olajumoke Okoya-Thomas, said Nigeria needed to move away from reactive wage reviews towards a permanent system driven by credible data.

She recalled that previous wage review exercises were conducted through temporary commissions, including the Morgan Commission of 1964, Adebo Commission of 1971 and Udoji Commission of 1974.

According to her, the establishment of the NSIWC in 1993 provided a permanent institutional framework for advising the government on salaries, allowances and national incomes policy.

“We exist so that wage decisions rest on evidence, not emergencies,” she said.

Okoya-Thomas noted that the 2024 minimum wage more than doubled the previous statutory minimum, but stressed that future wage decisions must remain fair, informed and sustainable.

She said the retreat would examine five major issues, including data reliability, fair remuneration, social dialogue, institutional capacity and governance.

The secretary added that the commission intended to develop an action plan aligned with the Renewed Hope Agenda, Nigeria Agenda 2050 and the Medium-Term National Development Plan for 2027 to 2030.

She said the plan would contain specific responsibilities, implementation timelines and performance indicators, with the commission’s monitoring and evaluation division responsible for tracking progress.

Also speaking, the Head of the Civil Service of the Federation, Abel Enitan, said improved workers’ welfare, institutional efficiency and the modernisation of government operations were essential to achieving national development objectives.

The Head of Service described salary administration as a matter of national interest, noting that the civil service and the wages commission had complementary responsibilities in improving workers’ conditions and public sector performance.

The official said the government was prioritising capacity development and end-to-end digitisation of civil service operations, aiming to establish a fully paperless working environment.

He also linked public service reforms to President Bola Tinubu’s ambition to build a $1tn economy by 2030, arguing that the target would require a productive, well-equipped workforce.

Enitan said, “It is achievable. Just that the workforce must be mobilised behind that agenda.”

He identified efficiency, productivity, integrity and citizen-centred service delivery as essential attributes of a modern civil service.

Enitan expressed confidence that the retreat would produce recommendations to strengthen wage administration, improve workers’ welfare, and support the broader public service reform agenda.

Source: punchng.com

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Revenue boom: World Bank faults states’ spending priorities, read full details

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The World Bank has criticised the spending priorities of Nigerian state governments, warning that increased revenues following recent economic reforms have not translated into proportionate investments in education, healthcare and social protection.

The global lender observed that although states had increased spending on essential public services, investments in transport infrastructure had grown considerably faster, even in states with poor human development indicators.

A Senior Economist at the World Bank Nigeria Office, Gloria Joseph-Raji, raised the concerns on Tuesday in Abuja during the launch of BudgIT’s 2026 State of States Report, themed ‘From Allocation to Impact: Rethinking State Spending Priorities.’

She said, “Spending on education, health, and social protection has also risen substantially, but it has not kept pace with the rapid growth in transport infrastructure spending, even in states with weaker human capital outcomes.”

Joseph-Raji explained that the bank’s October Nigeria Development Update, which examined budget implementation reports from all 36 states, found that governments had expanded transport infrastructure and reduced their debt burdens, particularly domestic debt, following increased fiscal allocations.

She attributed the revenue growth to petrol subsidy removal, exchange rate unification and improvements in tax administration since 2023, alongside federal intervention funds and the settlement of longstanding obligations to states.

According to her, the additional resources have enabled states to meet salary obligations and created opportunities for improved public service delivery.

However, she warned that excessive dependence on Federation Account allocations continued to expose state finances to fluctuations in federally shared revenue.

“In 2025, federation transfers accounted for more than three-quarters of revenue in all but a handful of states,” she said.

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She disclosed that federation transfers accounted for 73 per cent of aggregate state revenues between 2021 and 2025, excluding Lagos, while internally generated revenue was sufficient to cover recurrent expenditure in only two states.

Joseph-Raji noted that states received 26.72 per cent of net Federation Account revenues and now received 55 per cent of Value Added Tax revenue under the revised sharing formula.

Meanwhile, BudgIT’s Country Director, Vahyala Kwaga, disclosed that aggregate revenue across the 34 states covered in its comparative analysis rose from N4.99tn in 2022 to N15.53tn in 2025, representing an increase of N10.54tn.

He said FAAC allocations increased by more than 232 per cent, from N3.43tn to N11.38tn during the period.

Despite the revenue growth, Kwaga disclosed that the states had spent only N8.60tn, representing 24.4 per cent of their combined N35.22tn approved budgets, by June 2026.

“We must also examine how effectively they deploy the resources available to them, what they prioritise and whether their spending is delivering the outcomes that citizens need,” he said.

He explained that BudgIT had revised its assessment methodology to place greater emphasis on spending in education, healthcare, agriculture, water and sanitation, alongside revenue performance and debt sustainability.

Presenting the report, BudgIT’s Head of Research and Policy Advisory, Adejoke Akinbode, disclosed that total debt across the 35 states assessed increased by 10.41 per cent, from N10.57tn in 2024 to N11.67tn in 2025.

She identified Lagos as the most indebted state, with N2.9tn, while Osun spent N100.17bn servicing debt, equivalent to 28.6 per cent of its revenue.

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Akinbode said Lagos ranked first in overall fiscal sustainability, followed by Enugu, Bayelsa, Delta and Kebbi, while Cross River ranked last. Rivers was excluded because of inadequate fiscal data.

She urged states to reduce administrative costs, strengthen revenue collection and link borrowing to productive investments.

In her keynote address, an economist and lecturer at Amadeus University, Abia State, Dr Iboro Nelson, argued that rising government revenues had failed to compensate households for the economic hardship associated with recent reforms.

She disclosed that states collectively budgeted N1.32tn for healthcare in 2024 but spent N816.64bn, while education expenditure stood at N1.61tn against N2.41tn budgeted.

According to her, average annual spending per resident amounted to N3,483 on healthcare and N6,981 on education, equivalent to approximately N290 and N582 monthly, respectively.

“This is actually not fiscal space, but fiscal illusion,” she said.

Nelson blamed weak budget implementation, unrealistic expenditure projections, overlapping projects and excessive recurrent costs for the limited developmental impact of rising allocations.

Also speaking, a Programme Manager at the Ford Foundation’s West Africa Office, Joy Ehinor-Esezobor, urged governments to measure fiscal success by improvements in citizens’ lives rather than revenue growth or rankings.

“The ultimate measure of success should not simply be a better fiscal ranking, but better services and improved living conditions,” she said.

The programme is seeking to establish a framework for developing Nigeria’s underutilised small hydropower resources through private investment and public-private partnerships.

Source: punchng.com

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Otti woos US investors to Abia

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Governor Alex Otti of Abia State has concluded plans to bring investors, business leaders, policymakers, development partners, diplomatic representatives and entrepreneurs to the state to explore investment opportunities and strengthen commercial relations between Africa and the United States.

In a statement he signed and issued to newsmen on Sunday, the Chief of Staff to the Governor, Pastor Caleb Ajagba, disclosed that the Abia State Government had unveiled plans to attract American and other international investors to the state through the 2026 edition of the African Diaspora Conference and Expo, AFRICANDO, scheduled for this month.

Ajagba said, “AFRICANDO is a platform for translating international economic engagement into concrete investments and commercial partnerships. The state government is working with the organisers to ensure that the conference goes beyond speeches and networking to facilitate transactions, business agreements and sustainable investment.”

According to him, the 2026 edition, with the theme, “Deepening U.S.–Africa Commercial Ties in the Era of AfCFTA,” would connect investment opportunities in Abia and other African markets with American capital, technology, expertise and international distribution networks.

He added, “The African Continental Free Trade Area, AfCFTA, presents opportunities for African businesses to expand beyond their domestic markets, while international partnerships could help them improve production capacity and competitiveness.

“Abia is strategically positioned to benefit from the initiative because of its manufacturing and entrepreneurial base, particularly in Aba, which is known for indigenous manufacturing, commerce and craftsmanship.”

Ajagba added that Otti’s administration “is investing in infrastructure, strengthening public institutions and improving the business environment to position the state as a destination for private investment.”

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He explained that international delegates and prospective investors would be encouraged not only to attend conference sessions but also to visit strategic economic locations, manufacturing clusters, enterprises and government-backed projects to assess investment opportunities firsthand.

He said the approach was intended to give participants a practical understanding of the state’s economic potential and create opportunities for direct engagement with local businesses and relevant government agencies.

“AFRICANDO 2026 is not exclusively an Abia event. It is an international economic platform being hosted in Abia State,” he continued.

He listed agriculture and agro-processing, manufacturing, consumer goods, energy, financial services, healthcare, transportation and logistics, science and technology, artificial intelligence and emerging technologies among the sectors expected to receive attention.

A major feature of the conference, he said, would be a structured Deal Room and Investment Marketplace, where investment-ready projects from Abia and participating businesses would be presented to prospective investors.

Source: punchng.com

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Personal loans hit new high N1.99tn

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Nigerians’ outstanding personal loans increased by an estimated N58.5bn in the second quarter of 2026, reaching N1.99tn at the end of June, as households faced persistent inflationary pressures and high borrowing costs.

An analysis by The PUNCH of the Central Bank of Nigeria’s Second Quarter 2026 Economic Report showed that personal loans rose by 3.03 per cent from approximately N1.93tn recorded at the end of March.

The development came as total consumer credit increased by 3.26 per cent to N3.17tn from N3.07tn in the preceding quarter, representing an increase of about N100bn within three months.

The CBN stated, “Consumer credit outstanding increased by 3.26 per cent to N3.17tn, from N3.07tn in the preceding quarter. The increase reflected growth in both retail and personal loans, which rose by 4.10 per cent and 3.03 per cent, respectively.”

According to the report, personal loans accounted for 62.87 per cent of total consumer credit, while retail loans constituted the remaining 37.13 per cent.

This means that nearly N63 out of every N100 owed by consumers to financial institutions was classified as personal borrowing, highlighting its dominance in the consumer credit market.

Retail loans also increased by approximately N46.5bn to N1.18tn at the end of June, compared with an estimated N1.13tn in March, representing quarterly growth of 4.10 per cent.

Although retail loans recorded a faster percentage increase, personal loans contributed more to the outstanding stock of consumer credit.

The increase in personal borrowing occurred amid renewed inflationary pressures, which continued to affect household purchasing power.

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The CBN reported that headline inflation rose to 15.91 per cent in June 2026 from 15.38 per cent in March, reflecting increases in the prices of essential goods and services.

The report attributed the development largely to higher energy and commodity prices associated with geopolitical tensions in the Middle East, which increased production and transportation costs.

These conditions placed additional pressure on household expenditure, particularly for consumers whose incomes had not increased sufficiently to offset rising prices.

However, the report did not establish whether the increase in personal loans was driven primarily by household financial difficulties, consumption needs or improved access to credit.

The growth in consumer borrowing also occurred despite elevated lending rates in the banking sector.

 

 

According to the CBN, the average prime lending rate declined marginally to 19.01 per cent in Q2 from 19.37 per cent in the preceding quarter.

In contrast, the maximum lending rate increased slightly to 34.37 per cent from 34.34 per cent, indicating that borrowing remained expensive for some categories of bank customers.

Although these rates reflect broader banking sector lending conditions rather than specific personal loan charges, they provide an indication of the financing environment confronting borrowers.

A recent report ‘Enhancing Financial Inclusion & Advancement’ noted that four in every 10 Nigerians borrowing from formal financial institutions now take loans mainly for consumption and coping needs, as rising financial pressures increasingly push credit away from productive activities.

The ‘2026 Access to Financial Services in Nigeria Survey’ revealed that 40.8 per cent of formal borrowers used loans for coping and consumption, up sharply from 31.7 per cent in 2023.

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The 9.1 percentage-point increase made coping and consumption the largest purpose of formal credit, overtaking productive enterprise borrowing, which fell from 40.2 per cent to 34.3 per cent during the same period.

Borrowing for household assets also declined from 25.2 per cent to 23.4 per cent. The report warned, “Coping/consumption purposes rose from 31.7 per cent to 40.8 per cent; productive purpose fell from 40.2 per cent to 34.3 per cent. We need to ensure that credit builds productive capacity and does not produce distress.”

Formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, with about 11.9 million Nigerians borrowing from regulated providers. When informal sources were included, 36 per cent of adults had access to some form of credit.

Credit use among informally employed Nigerians tripled from five per cent to 15 per cent, while borrowing among people aged 18 to 35 rose from four per cent to 10 per cent. Business owners recorded an increase from four per cent to 10 per cent, while farmers rose from two per cent to six per cent.

Source: punchng.com

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