Business
Employers Reject NLC’s Plan To ‘Shut Down Economy
Employers Reject NLC’s Plan To ‘Shut Down Economy
The proposed strike by the Nigerian Labour Congress (NLC)will be counter-productive if it goes ahead, private employers of labour cautioned yesterday.
According to them, the NLC should seek better opportunities for its members to cushion subsidy removal pain through dialogue with the government.
Early in the month, NLC President Joe Ajaero called out workers on a two-day warning strike, but it attracted mixed compliance on September 5 and 6.
Announcing the warning strike, Ajaero, who shunned a meeting called by Labour Minister Simon Lalong, said a “total shutdown of the economy” would follow in 14 days unless the government reversed the pump price of petrol to pre-May 29, among other reasons.
The Trade Union Congress (TUC) which declined to join the NLC for the warning strike opted for a dialogue with the government within two weeks.
In a September 8 letter to the government, the TUC said it is expecting a response from the government on its proposals.
The NLC has, however, opted to go ahead with its plan to mobilise workers for an indefinite strike.
But, a former Vice President of the NLC Comrade Issa Aremu said the industrial action is preventable.
Aremu, who is Director General of Michael Imoudu National Institute for Labour Studies (MINILS) said: “Strikes are just the means not to an end. The end is improved welfare for working men and women at these challenging times.
“I know that President Tinubu is concerned about the plight of all. His quotable quote is ‘let’s the poor breath.’
Aremu said Lalong has demonstrated commitment to dialogue with NLC and TUC.
He stressed: “Strikes are, therefore, preventable. I think both government and organized labor will soon find a common ground.
“Strike is certainly not inevitable, indeed it is preventable but rewarding negotiations and compromises by the two parties.”
The Director-General of the Nigerian Employers Consultative Association (NECA), Mr. Adewale-Smart Oyerinde, who was featured on a Television programme last night, said the proposed strike will be counter-productive, adding that it will hurt employers and employees.
The NECA boss, who applauded the Federal Government for the steps taken so far, however, said there was a need for the government to do more.
He said: “The approval of N5billion to each state is a step because if the money is well spent in a state economy, it will trigger some level of consumption, which will also go back into production.
“We are also aware that the government is sharing rice. But, these efforts are not enough.”
Oyerinde said the strike will not in any way address the challenges confronting employers, employees the generality of Nigerians.
In his view, it is possible for parties in the dispute to renegotiate already agreed terms.
Oyerinde added: “Our position remains the same on the issue. And that is, if you negotiate, courtesy demands that you live up to the terms of negotiation.
“But, if anything arises that makes it difficult to live up to the terms of the negotiation, there is opportunity to renegotiate the terms that have been agreed upon, if you don’t have the capacity to implement.”
The DG said going on strike will distress stakeholders.
He stressed: “For us as employers, though we are paying beyond the minimum wage and we have also gone to provide succour, palliatives, welfare packages to make life easier for employees in the private sector, notwithstanding the fact that employers are currently bleeding and facing multi-dimensional challenges.
“But, we have done well, as the President had also commended the employers in his August broadcast. A strike at this point will do two or three things.
”One, it will hinder the ability of the employers to meet their obligations and this will affect, not only the public sector, but even the workers.
“When you go on strike, it will put the employers in double jeopardy, especially when we are not the protagonist and antagonists. And that remains our position.”
Oyerinde urged the government to do everything possible to avert the industrial crisis.
He said: “We are calling on the government to do all that is necessary to avoid the strike.
“But if the strike should happen, it will be counter-productive for both employers and the workers.”
Oyerinde said government should look at the payment of multiple taxes, VAT on diesel and petrol, creation of an enabling environment, and the forex challenge.
NLC Head of Information Benson Upah said the planned nationwide strike by the NLC was on track.
But the Director of Press and Public Relations, Federal Ministry of Labour, Olajide Oshundun, said the ministry was yet to receive any notice of strike from the NLC.
A member of the National Working Committee of the NLC said there was no need for a fresh notice as the communique issued at the end of the NEC meeting of the Congress on September 1, was enough for the government.
Upah said the government had “not done anything to suggest that it was committed to the promises it made.
”The government has not done anything which will suggest that it was committed to the promises it has made. Our plans remain on course unless something dramatic happens,” he added.
TUC awaits govt action on proposals
FEDERAL Government’s action on some of the proposals by the TUC to cushion the impacts of fuel subsidy removal is still being awaited, the union has said.
On September 4, Lalong asked for two weeks from the leadership of the TUC to communicate the proposals to President Tinubu and the Federal Executive Council (FEC).
The two-week window expires on Monday.
But international engagements in New Delhi, India and Abu Dhabi, United Arab Emirates (UAE) have kept the President busy since last week.
An official of the Labour and Employment Ministry told The Nation that Lalong has been unable to table the proposals by Labour before the appropriate authority.
It was further learnt that government representatives and Labour leaders have not met since the September 4 parley, which was shunned by the NLC.
The government called the meeting to avert the two-day warning strike called by the NLC.
The Federal Government promised to work on the TUC proposals.
The ministry official said: “No official discussion between government and Labour. But we are hoping that very soon the discussion will start again.
“You know the minister requested for two weeks for the President to come back. The minister will take the proposals by Labour to the President. There are demands on the president’s table.
“The president is already aware that there was a two-day warning strike by the NLC and there are discussions behind the scenes. I am sure the President will tell Nigerians what to expect.”
Some of the TUC proposals are the implementation of palliatives; wage awards; tax exemptions and allowances to public sector workers; modalities for the N70 billion for Small and Medium Enterprises (SMEs); the Road Transport Employers Association of Nigeria (RTEAN) and Nigeria Union of Road Transport Workers(NURTW) crisis, among others.
Osifo told The Nation that the congress was waiting for the outcome of the minister’s response.
The TUC letter dated September 8 reads: “I convey to you, compliments from the National Administrative Council (NAC) of the Trade Union Congress of Nigeria (TUC), especially the President, Comrade (Engr) Festus Osifo and wish to draw your attention to the above subject matter.
“This letter is a follow-up to the last meeting held in your office on the 2nd day of September 2023. You can recall that in the last meeting sir, we promised not to wait until the expiration of two weeks before reaching out but will bring any information that could further add value to your pending presentation before the Federal Executive Council (FEC) meeting presentation.
“We equally raised the issues of Taxation and the need for the government to grant tax waivers to employees that earn low income in public and private sectors as well as those in the informal sector.
“We highlighted the need for effective collaboration with the minister of Finance and the coordinating minister for the economy who has made some comments around these in the past.
“It is critical to resolve this urgently as we also implore your Excellency to bring the attention of the Taiwo Oyedele-led committee on taxation and fiscal reforms recently set up by the President to this.
“Honorable minister sir, another critical issue that should be reviewed is the collection of levies in dollars on petroleum products imported into the country by NIMASA and NPA.
“This act tends to lead to a further upward surge in the prices of PMS whenever the naira depreciates against the dollar as recently noticed during the floating of the naira.
“We hereby call on your office to liaise further with the above-mentioned reform committee or bring this to the attention of the FEC which could compel the two agencies to immediately start charging their levies and taxes in dollars.
“While we await your intervention, please accept the renewed assurances of our regards.”
BUA Foods Records 91% Surge in Profit After Tax, Hits ₦508bn in 2025
By femi Oyewale
Business
Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards
Adron Homes Unveils “Love for Love” Valentine Promo with Exciting Discounts, Luxury Gifts, and Travel Rewards
In celebration of the season of love, Adron Homes and Properties has announced the launch of its special Valentine campaign, “Love for Love” Promo, a customer-centric initiative designed to reward Nigerians who choose to express love through smart, lasting real estate investments.
The Love for Love Promo offers clients attractive discounts, flexible payment options, and an array of exclusive gift items, reinforcing Adron Homes’ commitment to making property ownership both rewarding and accessible. The campaign runs throughout the Valentine season and applies to the company’s wide portfolio of estates and housing projects strategically located across Nigeria.
Speaking on the promo, the company’s Managing Director, Mrs Adenike Ajobo, stated that the initiative is aimed at encouraging individuals and families to move beyond conventional Valentine gifts by investing in assets that secure their future. According to the company, love is best demonstrated through stability, legacy, and long-term value—principles that real estate ownership represents.
Under the promo structure, clients who make a payment of ₦100,000 receive cake, chocolates, and a bottle of wine, while those who pay ₦200,000 are rewarded with a Love Hamper. Payments of ₦500,000 attract a Love Hamper plus cake, and clients who pay ₦1,000,000 enjoy a choice of a Samsung phone or a Love Hamper with cake.
The rewards become increasingly premium as commitment grows. Clients who pay ₦5,000,000 receive either an iPad or an all-expenses-paid romantic getaway for a couple at one of Nigeria’s finest hotels, which includes two nights’ accommodation, special treats, and a Love Hamper. A payment of ₦10,000,000 comes with a choice of a Samsung Z Fold 7, three nights at a top-tier resort in Nigeria, or a full solar power installation.
For high-value investors, the Love for Love Promo delivers exceptional lifestyle experiences. Clients who pay ₦30,000,000 on land are rewarded with a three-night couple’s trip to Doha, Qatar, or South Africa, while purchasers of any Adron Homes house valued at ₦50,000,000 receive a double-door refrigerator.
The promo covers Adron Homes’ estates located in Lagos, Shimawa, Sagamu, Atan–Ota, Papalanto, Abeokuta, Ibadan, Osun, Ekiti, Abuja, Nasarawa, and Niger States, offering clients the opportunity to invest in fast-growing, strategically positioned communities nationwide.
Adron Homes reiterated that beyond the incentives, the campaign underscores the company’s strong reputation for secure land titles, affordable pricing, strategic locations, and a proven legacy in real estate development.
As Valentine’s Day approaches, Adron Homes encourages Nigerians at home and in the diaspora to take advantage of the Love for Love Promo to enjoy exceptional value, exclusive rewards, and the opportunity to build a future rooted in love, security, and prosperity.
*Why Nigeria’s Banks Still on Shaky Ground with Big Profits, Weak Capital*
*BY BLAISE UDUNZE*
Despite the fragile 2024 economy grappling with inflation, currency volatility, and weak growth, Nigeria’s banking industry was widely portrayed as successful and strong amid triumphal headlines. The figures appeared to signal strength, resilience, and superior management as the Tier-1 banks such as Access Bank, Zenith Bank, GTBank, UBA, and First Bank of Nigeria, collectively reported profits approaching, and in some cases exceeding, N1 trillion. Surprisingly, a year later, these same banks touted as sound and solid are locked in a frenetic race to the capital markets, issuing rights offers and public placements back-to-back to meet the Central Bank of Nigeria’s N500 billion recapitalisation thresholds.
The contradiction is glaring. If Nigeria’s biggest banks are so profitable, why are they unable to internally fund their new capital requirements? Why have no fewer than 27 banks tapped the capital market in quick succession despite repeated assurances of balance-sheet robustness? And more fundamentally, what do these record profits actually say about the real health of the banking system?
The recapitalisation directive announced by the CBN in 2024 was ambitious by design. Banks with international licences were required to raise minimum capital to N500 billion by March 2026, while national and regional banks faced lower but still substantial thresholds ranging from N200 billion to N50 billion, respectively. Looking at the policy, it was sold as a modern reform meant to make banks stronger, more resilient in tough times, and better able to support major long-term economic development. In theory, strong banks should welcome such reforms. In practice, the scramble that followed has exposed uncomfortable truths about the structure of bank profitability in Nigeria.
At the heart of the inconsistency is a fundamental misunderstanding often encouraged by the banks themselves between profits and capital. Unknown to many, profitability, no matter how impressive, does not automatically translate into regulatory capital. Primarily, the CBN’s recapitalisation framework actually focuses on money paid in by shareholders when buying shares, fresh equity injected by investors over retained earnings or profits that exist mainly on paper.
This distinction matters because much of the profit surge recorded in 2024 and early 2025 was neither cash-generative nor sustainably repeatable. A significant portion of those headline banks’ profits reported actually came from foreign exchange revaluation gains following the sharp fall of the naira after exchange-rate unification. The industry witnessed that banks’ holding dollar-denominated assets their books showed bigger numbers as their balance sheets swell in naira terms, creating enormous paper profits without a corresponding improvement in underlying operational strength. These gains inflated income statements but did little to strengthen core capital, especially after the CBN barred banks from using FX revaluation gains for dividends or routine operations. In effect, banks looked richer without becoming stronger.
Beyond FX effects, Nigerian banks have increasingly relied on non-interest income fees, charges, and transaction levies to drive profitability. While this model is lucrative, it does not necessarily deepen financial intermediation or expand productive lending. High profits built on customer charges rather than loan growth offer limited support for long-term balance-sheet expansion. They also leave banks vulnerable when macroeconomic conditions shift, as is now happening.
Indeed, the recapitalisation exercise coincides with a turning point in the monetary cycle. The extraordinary conditions that supported bank earnings in 2024 and 2025 are beginning to unwind. Analysts now warn that Nigerian banks are approaching earnings reset, as net interest margins the backbone of traditional banking profitability, come under sustained pressure.
Renaissance Capital, in a January note, projects that major banks including Zenith, GTCO, Access Holdings, and UBA will struggle to deliver earnings growth in 2026 comparable to recent performance.
In a real sense, the CBN is expected to lower interest rates by 400 to 500 basis points because inflation is slowing down, and this means that banks will earn less on loans and government bonds, but they may not be able to quickly lower the interest they pay on deposits or other debts. The cash reserve requirements are still elevated, which does not earn interest; banks can’t easily increase or expand lending investments to make up for lower returns. The implications are significant. Net interest margin, the difference between what banks earn on loans and investments and what they pay on deposits, is poised to contract. Deposit competition is intensifying as lenders fight to shore up liquidity ahead of recapitalisation deadlines, pushing up funding costs. At the same time, yields on treasury bills and bonds, long a safe and lucrative haven for banks are expected to soften in a lower-rate environment. The result is a narrowing profit cushion just as banks are being asked to carry far larger equity bases.
Compounding this challenge is the fading of FX revaluation windfalls. With the naira relatively more stable in early 2026, the non-cash gains that once flattered bank earnings have largely evaporated. What remains is the less glamorous reality of core banking operations: credit risk management, cost efficiency, and genuine loan growth in a sluggish economy. In this new environment, maintaining headline profits will be far harder, even before accounting for the dilutive impact of recapitalisation.
That dilution is another underappreciated consequence of the capital rush. Massive share issuances mean that even if banks manage to sustain absolute profit levels, earnings per share and return on equity are likely to decline. Zenith, Access, UBA, and others are dramatically increasing their share counts. The same earnings pie is now being divided among many more shareholders, making individual returns leaner than during the pre-recapitalisation boom. For investors, the optics of strong profits may soon give way to the reality of weaker per-share performance.
Yet banks have pressed ahead, not only out of regulatory necessity but also strategic calculation.
During this period of recapitalization, investors are interested in the stock market with optimism, especially about bank shares, as banks are raising fresh capital, and this makes it easier to attract investments. This has become a season for the management teams to seize the moment to raise funds at relatively attractive valuations, strengthen ownership positions, and position themselves for post-recapitalisation dominance. In several cases, major shareholders and insiders have increased their stakes, as projected in the media, signalling confidence in long-term prospects even as near-term returns face pressure.
There is also a broader structural ambition at play. Well-capitalised banks can take on larger single obligor exposures, finance infrastructure projects, expand regionally, and compete more credibly with pan-African and global peers. From this perspective, recapitalisation is not merely about compliance but about reshaping the competitive hierarchy of Nigerian banking. What will be witnessed in the industry is that those who succeed will emerge larger, fewer, and more powerful. Those that fail will be forced into consolidation, retreat, or irrelevance.
For the wider economy, the outcome is ambiguous. Stronger banks with deeper capital buffers could improve systemic stability and enhance Nigeria’s ability to fund long-term development. The point is that while merging or consolidating banks may make them safer, it can also harm the market and the economy because it will reduce competition, let a few banks dominate, and encourage them to earn easy money from bonds and fees instead of funding real businesses. The truth be told, injecting more capital into the banks without complementary reforms in credit infrastructure, risk-sharing mechanisms, and fiscal discipline, isn’t enough as the aforementioned reforms are also needed.
The rush as exposed in this period, is that the moment Nigerian banks started raising new capital, the glaring reality behind their reported profits became clearer, that profits weren’t purely from good management, while the financial industry is not as sound and strong as its headline figures. The fact that trillion-naira profit banks must return repeatedly to shareholders for fresh capital is not a sign of excess strength, but of structural imbalance.
With the deadline for banks to raise new capital coming soon, by 31 March 2026, the focus has shifted from just raising N500 billion. N200 billion or N50 billion to think about the future shape and quality of Nigeria’s financial industry, or what it will actually look like afterward. Will recapitalisation mark a turning point toward deeper intermediation, lower dependence on speculative gains, and stronger support for economic growth? Or will it simply reset the numbers while leaving underlying incentives unchanged?
The answer will define the next chapter of Nigerian banking long after the capital market roadshows have ended and the profit headlines have faded.
Blaise, a journalist and PR professional, writes from Lagos and can be reached via: [email protected]
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