Business

We won’t be able to pay #18,000 minimum wage anymore – Nigerian Governors

Published

9 years ago

November 20, 2015

Nigeria Governors’ Forum is worried that more states may not be able to pay workers’ salaries if the revenue of the country continues to be on the decline, its Chairman, Governor Abdul’aziz Yari of Zamfara, has said.

Mr. Yari made the statement while briefing journalists on the resolutions of the forum at its meeting in Abuja late on Wednesday.

He said the forum discussed the economy and resolved to look for means to enhance states internally generated revenues as well to cut overhead cost, especially the salaries of political office holders.

The governor said the forum also resolved to diversify the country’s economy from petroleum to agriculture and mining.

“The situation is no longer the same when we are used to pay N18, 000 minimum wage when oil was 126 dollars; now oil price is 41 dollars.

“We are coming together in a roundtable with President Muhammadu Buhari and his team of ministers, technocrats, economic experts to see how we can tackle our situation,’’ he said

Mr. Yari said that the governors had also resolved to hold a roundtable with all stakeholders to articulate a robust strategy to tackle the deplorable economic situation in the country.

In an interview with journalists, Governor Ifeanyi Okowa of Delta state said the economic situation was worrisome as more states would reach a stage where they would not be able to pay salaries.

“I believe that is the same situation with the Federal Government,’’ Mr. Okowa said.

He said there was a need to look into the salaries of political office holders and other salaries.

“It is not a situation of being able to run government now. Most states are not able to pay salaries not to talk of capital projects.

“If we cannot fund capital development, then the rest of Nigerians are just shut out of government.

“Those of us in government, both politicians and civil servants are possibly not more than five per cent of the entire population of Nigerian.

“What will happen to the other 95 per cent? What happens to infrastructure? Can we talk about industry without infrastructure?’’ Mr. Okowa asked.

Governor Abiola Ajimobi of Oyo State said there was no way the country could continue with a situation where expenditure was more than income.

He said very soon many states would be technically declared bankrupt and added that there might be need for another bailout fund for states as they were running on deficit every month.

“We are faced with a situation where we either have to reduce cost through salary reduction or downsize.

“All these we don’t want to do but prefer to have a roundtable with the president, ministers, economists to look for means of getting out of this problem,’’ Mr. Ajimobi said.

(NAN)

Business

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

Published

9 hours ago

December 19, 2024

Sahara Weekly

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.

Business

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

Published

24 hours ago

December 18, 2024

Sahara Weekly

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.

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

Business

MTN Contributes N200bn Monthly in VAT, Driving Tax Reform Debate

Published

2 days ago

December 18, 2024

Sahara Weekly

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.