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October 31 Deadline : Another ASUU strike looms as Federal Government refuses to fulfill promise

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Another round of strike action is looming in the nation’s Universities as academic staff counts down to the deadline for the implementation of agreements reached with the government which led to the conditional suspension of its indefinite strike action in September.

The government had signed an agreement with the Academic Staff Union of Universities as a result of the strike action embarked upon by the union to press the implementation of the memorandum of understanding entered into between both parties in 2013 as well as the 2009 agreement.

A timeline of October 2017 was reached between the government and the unions for the implementation of some components of the agreement, especially the payment of shortfall in salaries and Earned Academic Allowances.
But some lecturers informed The Nation that barely one week to the end of the October timeline, the government has not implemented any aspect of the agreement, even when they claimed during negotiation that implementation has commenced.

While suspending their strike action in September, ASUU President, Prof. Biodun Ogunyemi had said that the union was suspending its action conditionally to pave way for government to commence implementation of the agreement, stressing that the union will not hesitate to resume the action if the government fail to meet its own aspect of the agreement.

One lecturer who would not want his name in print told The Nation that “the government has not done anything. We have not heard from them and it is just one week to the end of the October deadline. I can assure you that we are warming up and there is the possibility that from November 1, we will resume the suspended action.

“They (government) told our leaders during negotiations that they have prepared everything for the implementation. They were even brandishing some papers, especially on the earned Academic Allowance. But we have not seen anything nor heard from them.

“They were also supposed to carry our verification because of those who employed workers without permission so that the issue of shortfall in salary can be addressed. Many of us have been verified, but nothing has happened. We have not been paid. They should not take us die a ride because when we resume the suspension action not are not going to listen to any discussion.

However, ASUU President, Prof. Biodun Ogunyemi, however, declined to say whether or not the union will call out its members at the end of October if they are not satisfied with the level of implementation of the agreement.
Prof. Ogunyemi told The Nation over the telephone that members of the union will determine the next line of action based on the level of implementation of the agreement reached between the government and the unions.
He said both parties were making progress in the implementation of the memorandum of understating signed between them, adding that the union is still engaging the government and expressed the hope that the government will keep to their promise.

He said: “We are engaging them and we are making some few progress and we hope they will keep their promise. Otherwise, our members are ready to activate their action.

We are still in October, but we are on our guard.

We believe they will follow the process through and implement it fully. That is why we still engage them and we are talking. We are working with them and we hope they will continue to cooperate.

Asked whether they will embark on any Industrial action at the end of October, he said “I cannot say whether there will be any action at the end of October or not. It is what our members say that we shall do. I hope I am very clear? Our members shall determine what we shall do at the end of the deadline based on the level, of implementation”.

The government had promised to meet the demand of the unions with a promise to release of about N220 billion to the universities not later than October 2017 to fund the revitalisation of federal universities in the country and the payment of the shortfall in their salaries as well as payment of earned allowances which has accumulated.

Minister of Labour and Employment, Senator Chris Ngige who promised that his Ministry will monitor the implementation the agreement reached had told newsmen after the conciliatory meeting in September that “We have concluded negotiations, the government and the leadership of Academic Staff Union of Universities, ASUU. The ASUU negotiating team and the government discuss salient issues and most of those issues are well-known to the media but for the purposes of clarity, I can go around the grounds again.

“There’s one funding for revitalization of public universities and the issue of Earn Academic Allowances, the issue of University Staff Schools on which that there is a court judgement, the issue of National Universities Pension Management Company, and the issue of salary shortfalls for lecturers and staff of universities.

There is the issue of TSA exemption and the problems in the state universities. All are the issues that ASUU felt that government should address.
“Most of these issues stemmed from the 2009 agreement that government had ASUU and also from the 2013 Memorandum of Understanding, that the government had with ASUU. Government is a continuum, most of those issues were not issues that cropped up from the Buhari administration, we inherited them.
“But be that as it may like I said, the government is a continuum. So we are to really address those issues, we inherited them but there are issues concerning the welfare of our people. So, on the issue of funding for the revitalization of public universities, this negotiating team discussed in detail and extensively on that.

“This is the fund that would be needed for the revitalization of public universities in terms of their working tools and other things needed for the effective performance of their duties.
“There was an agreement from the MoU of 2009 and that of 2013, for government to be making some quarterly payments into this fund. And from 2014 to date, it has not been possible for the government to pay or they didn’t pay. But this government has been negotiating with ASUU since last year. Today, there is a government proposal which we all agreed id workable.

“But ASUU has to take back this our proposal to their organs, so we decided that there’s an agreement for government to make some funds available in September and October to show that they are not repudiating their agreement and to also show sign of good faith.

“However, because of the inability of the government to pay the required amount which is at N220 billion, a seven-man committee was proposed and ASUU leadership is expected to send in three nominees into this committee. It’s a technical committee so to say, a working committee and they would send in the three-man nomination, the Minister of Education will appoint three persons to represent the federal government and the chairman, making four to bring the number to seven. ASUU will also send in their proposal for testing terms of reference for the committee to the minister.

“We expect that that will be done today since today is already a Friday. This committee is expected to work out the ways and means for the government and ASUU to actualize the aspirations as per the 2013 MoU.

“This is without prejudice to the Babalakin committee on the re-negotiation of the 2009 MoU between the Federal Government and ASUU.
“On the issue of Earn Academic Allowances, we have listened and payment has started in that direction.Same with staff schools.

Government is though not appealing, we have agreed that the decision should be conveyed to the various universities.
“The Issue of NUPENCO was addressed and ways have been fashioned out for the registration of that company. Salary shortfalls for lecturers and university staff were also addressed and the government has shown their commitment and evidence that payments have started in order to liquidate the outstanding allowances.

“The issue of TSA exemption was also discussed and an agreement or proposal was muted by which the Central Bank would a special account for that in order for endowment funds and research grants will be exempted.
“State universities which have been the concern for ASUU and everybody who has been looking for quality education in the country was also discussed and the Minister of Education was mandated to take the memo to the council of state and the Federal Executive Council.

“Based on these discussions, ASUU leadership will consult with its organs and revert back to government within one week. They will consult with their organs with a view to calling off the strike.And we expect them that within one week, they will get back to government. These are the highlights of the meeting and I can tell you that the meeting took place in the very cordial atmosphere.”

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Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

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Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

Holiday Relief: Dangote Refinery Lowers PMS Price to N899.50, Introduces Special Credit Offer

In a bid to ease financial burdens during the holiday season, Dangote Petroleum Refinery has announced a reduction in the price of Premium Motor Spirit (PMS) to N899.50 per litre. This follows a previous price cut to N970 per litre on November 24. The move is aimed at reducing transportation costs for Nigerians as they prepare for festive celebrations.

Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, disclosed the development in a statement, highlighting additional benefits for consumers. Beyond the price reduction, the refinery is introducing a special credit offer. For every litre of PMS purchased on a cash basis, consumers can buy an additional litre on credit, supported by a bank guarantee from Access Bank, First Bank, or Zenith Bank.

“To help reduce transport expenses this holiday season, we’re offering PMS at N899.50 per litre and providing a credit option for additional purchases. This is part of our commitment to making high-quality petroleum products accessible to Nigerians,” Chiejina said.

The refinery also reaffirmed its commitment to providing premium-quality, environmentally-friendly fuel, while ending Nigeria’s dependence on substandard imported products.

With a capacity of 650,000 barrels per day, the Dangote Refinery is the largest single-train refinery in the world, capable of meeting Nigeria’s entire refined petroleum product demand and generating surplus for export. As the festive season approaches, the company expressed gratitude to Nigerians for their support and pledged continued efforts to ease their economic burdens.

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Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

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General Buratai Urges Dangote Not To Succumb To Marketers Blackmail, Reveals Why

Setting the Record Straight: Clarifying NNPCL’s Role in the Dangote Refinery Investment

We have received numerous inquiries from the media and concerned stakeholders seeking clarification regarding a recent report attributed to the Nigerian National Petroleum Company Limited (NNPCL). The report suggested that NNPCL’s decision to secure a $1 billion loan backed by its crude was instrumental in supporting the Dangote Refinery during liquidity challenges.

Setting the Record Straight: Clarifying NNPCL's Role in the Dangote Refinery Investment

We wish to categorically state that this narrative is a misrepresentation of the facts. The $1 billion referenced constitutes just about 5% of the total investment in building the Dangote Refinery.

Our partnership with NNPCL was established based on their strategic importance as the largest offtaker of Nigerian crude and, at the time, the sole supplier of gasoline into Nigeria. As part of this agreement, a 20% stake in the refinery was valued at $2.76 billion. Of this amount, NNPCL agreed to pay $1 billion upfront, while the remaining balance was structured to be recovered over five years through crude oil supply deductions and dividends.

If we had been facing liquidity challenges, such generous credit terms would not have been feasible. At the time of the agreement in 2021, the refinery was still in its pre-commissioning phase. Any claims suggesting financial struggles are inconsistent with the structure and nature of this agreement.

Regrettably, NNPCL was unable to meet its commitment to supply the agreed 300,000 barrels per day of crude oil due to pre-existing financial commitments tied to their crude cargoes. Given this, we extended a 12-month period for NNPCL to pay cash for the balance of their equity. However, they were unable to meet the deadline, which expired on June 30, 2024. Consequently, NNPCL’s equity stake in the refinery was adjusted to 7.24%.

It is therefore inaccurate to claim that NNPCL facilitated a $1 billion investment amid liquidity challenges. Their $1 billion investment secured a 7.24% ownership stake in the Dangote Refinery, a strategic partnership beneficial to their interests.

NNPCL remains a valued partner, and we urge all stakeholders to adhere to the facts and provide accurate information to ensure proper media representation for the benefit of all stakeholders and the public.

Anthony Chiejina
Group Chief Branding and Communications Officer
18th December, 2024

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MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

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MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

 

MTN Nigeria, the nation’s largest telecom company, pays over N200 billion in Value Added Tax (VAT) monthly, making it the single biggest contributor to the country’s VAT revenue, according to Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.

Speaking at Channels Television’s Town Hall on Tax Reforms, Oyedele highlighted significant disparities in the current VAT allocation system, revealing that all VAT paid by MTN is credited solely to Lagos State, where the company’s headquarters is located, despite the fact that services generating this revenue are consumed nationwide.

“MTN is the largest contributor to VAT in Nigeria,” Oyedele stated. “They pay over N200bn every month, and the gap between them and the second-largest contributor is massive. However, all this VAT is currently allocated to Lagos, even as calls are made across states like Kano, the FCT, Ekiti, Edo, and Kebbi.”

As part of the ongoing tax reform efforts, the committee has proposed a new framework to ensure equitable distribution of VAT revenues based on consumption rather than the corporate headquarters’ location.

Under the proposed redistribution model, Lagos State, which now retains the full N200bn from MTN, would see its share reduced to around 20 per cent. The remaining revenue would be distributed more fairly among other states where the services are consumed.

“This adjustment ensures states where VAT is generated get their fair share,” Oyedele explained. “While Lagos State’s share decreases slightly, every other state stands to gain under the new system.”

The tax reform bill, designed to address inefficiencies and promote fairness in Nigeria’s fiscal policies, has sparked debate among stakeholders. Critics have accused the committee of advancing policies that may negatively impact certain regions.

Oyedele, however, dismissed these claims, arguing that the current system is flawed and in need of urgent correction. “If something is being done wrongly, how can Lagos State or anyone oppose reforms aimed at fixing it?” he questioned.

The proposed reforms, which include provisions for revenue redistribution and efficiency improvements, are seen as pivotal to ensuring fairness and sustainability in Nigeria’s tax system.

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