Legislature
‘Living Wage is achievable if FG reduces cost of governance’
***Says actual value of N1b Govt contract is less than N400m
***Akpabio promises quick passage of National minimum wage
The former Head of Service of the Federation, now Chairman Tripartite committee on National Minimum Wage, Alhaji Bukar Aji Goni has listed conditions for Nigerian Government to be able to pay living wage to civil servants.
Speaking in a goodwill message at a retreat on Labour Reform and the Quest for Living Wage in Nigeria: A focus on Legislative Intervention, organised by National Institute For Legislative Studies (NILDS) on Monday, he said fundamentaly the Federal Government must reduce cost of governance.
“We must reduce our profit margins on Government contracts. In every N1b contract awarded the actual value delivered may not be more than N400m. No economy can sustain this whether China or US. We must critically look at that point.
“The next is one area that has become topical these days, the issue of procurement of SUVs by government agencies, we also need to critically look at that based on the present economic realities.
“The replacement period of government vehicles of four years must change to between 8 to 10 years. If a Prado is procured for a Director General in a government agency that Prado must serve 8 to 10 years no longer 4 years because the economy can no longer sustain it.
“The next is the issue of borrowing, when we must borrow at the Federal or at the subnational levels, it must be towards development of a critical infrastructure that is directed towards production and growth of the GDP.
“Is living wage possible in Nigeria? The answer is yes. We can move the country towards paying a minimum wage but certain developments have to happen for us to be able to afford minimum wage, there are some conditions attached to it.
“We need time for the gestation and fruition of some of the Economic programs of the administration. Every ambition that you have every plan that you must start from somewhere of the target.
“And some of the Economic policies that are harsh as at now, the feeling is tough but they are towards the repositioning of the economy and this is one of the critical factors. When we allow them to materialise, it will be one of the reasons that the country could afford a living wage.
“The second is the review of the National manpower development policy of this country. We need to rebuild the National Manpower Developmwnt towards having graduates from our tertiary institutions that are employable and that will contribute to the productive. “We must emphasize production and that is the only way to reposition the economy to be able to afford a national minimum wage.
“The third is the overall improvement in the economy, in this case reforms in the oil and Gas sector that will enable the country to meet with the OPEC quota of between 1.8m barrels per day to 2m barrel per day. As it is today we are at 1.2m bpd.
“What do we do to be able to meet up with the OPEC quota? That should improved infrastructure and that will include not only providing the required security at the Niger Delta to stop oil theft but it will also include huge investments in revamping and addressing the decayed oil and gas infrastructure”
“The act establishing salaries and wages Commission has a provision that each time there is inflation bites that agency is empowered under what they term as collateral cost of living allowances adjustment, that is annual.
“Every year if inflation goes up the agency is empowered by law to adjust cost of living allowance. This can provide a succor to be able to manage the situation.
“Now the second terminology, is living wage. Living wage has a much more complicated calculation. It is expected to be a wage that is expected to be paid to a worker far above the Marginal existence.
“This could include his health care needs and that of his family, his transportation, education of the family and after all that he should be able to have something to save for a rainy day.”
Alhaji Goni said, as chairman of the Tripartite committee which was made up of 37 members, including him, at one of the meetings, they all agreed on the need to increase the minimum wage of workers but however, the committee could not reach a conclusion on how much was needed to be increased minimum wage.
“At a time it is so convoluted that as someone who is midwiving different interests each interest that opens its mouth will convince you that day that you have no other option than to adopt its own position.
“The two forces in the whole exercise is that of desirability and affordability. Every one in the room comprising 36 members, 12 from Labour, 12 from the Private sector, 12 from the Government side, 36 of them, myself as an umpire as a neutral person, 37. “All the 37 agreed that there was need and desire to increase the National minimum wage but what extent, how far can it go became so difficult to understand.
“O the side of Labour the issue definitely is that of cost of living on as at today, on the side of Government, the position of the National economy and inflation, on the side of the private sector, cost of electricity, cost of diesel, customs duties particularly for manufacturers.”
He therefore advised the Federal government to reduce the cost of governance in order to save more money for national productivity, using appropriate reforms.
The Minister of state for Labour and Employment, Dr Nkeiruka Onyejeocha called on stakeholders to treat workers with dignity, stressing on the safety of workers in their work places, by creating an enabling environment for operation.
The president of the Senate, Senator Godswill Akpabio assured the participants on the speedy passage of the bill on Minimum Wage if sent to the National Assembly.
Senator Godswill Akpabio who was represented at the One day Retreat by senate committee Chairman on Employment, Labour and Productivity, Diket Plang, Plateau Central said National Assembly is passionate about issues relating to Nigeria workers and ready to stand side by side with the Nigerian workers.
Earlier, in his welcome address, the Director General National Institute for Legislative and Democratic Studies, NILDS professor Abubakar Sulaiman said the personalities attending the retreat signified how important the event is, which was aimed at embarking on labour reforms in order to provide a good work force in the country.
Professor Sulaiman said that no Nation survives in a chaotic situation, hence the need for realistic living wage for Nigeria workers.
He disclosed that since National Assembly is the only arm to deliberate on such issues , the retreat was paramount for them to provide insights for quality debate.
Similarly, the National president Trade Union Congress TUC Comrade Festus Osifo said Nigerians were passing through tough times, thereby making life extremely difficult for a Nigerian worker.
Comrade Osifo said to negotiate for Minimum Wage was necessary because of high inflation in the country.
The Director General Nigerian Employers’ Consultative Association NECA, Mr Adewale Smatt Oyerinde, said the Programme was necessary and pledged to support the labour reforms.
The lead paper was presented by the President National Industrial Court of Nigeria, Justice Benedict Kanyip who titled the paper: Labour laws, Issues and challenges and the way forward.
The retreat was formerly declared open by the Senate president.
Legislature
CNG Safety Under Scrutiny: NASS Questions Readiness as Explosions Raise Alarms
The National Assembly has called for a comprehensive reassessment of Nigeria’s Compressed Natural Gas (CNG) initiative following alarming reports of vehicle explosions attributed to uncertified conversions. Lawmakers are urging the Federal Government to prioritize rigorous adaptability tests to ensure the safety and suitability of the technology in Nigeria’s unique environment.
During the 2025 budget defense session of the Joint Committee on Petroleum (Downstream), Petroleum (Upstream), and Gas, Senator Natasha Akpoti (PDP, Kogi Central) questioned the adequacy of research conducted before rolling out the CNG program.
“Nigeria’s bumpy roads and hot climate differ significantly from the smooth and cooler environments where this technology originated. Were these factors considered before introducing CNG?” Akpoti asked.
Her concerns come amid incidents of explosions in CNG-converted vehicles. The Minister of State for Gas, Hon. Ekperikpe Ekpo, attributed these accidents to uncertified conversions carried out by roadside technicians, emphasizing that certified centers adhere to strict safety standards.
Ekpo also assured lawmakers that the technology had been evaluated by a Presidential Committee on CNG and affirmed its long-term viability. “CNG has come to stay,” he stated.
The session also highlighted budgetary concerns, particularly the Ministry of Petroleum’s 2025 capital allocation of N903 million. Lawmakers criticized the sum as inadequate to address Nigeria’s pressing energy challenges.
“For a ministry driving Nigeria’s energy transition, this allocation raises concerns about commitment to infrastructure and innovation,” remarked Hon. Kafilat Ogbara.
As Nigeria seeks to diversify its energy mix, the National Assembly has stressed the need for enhanced safety measures, proper implementation, and increased funding to fully realize the potential of CNG while ensuring public safety and trust.
Legislature
Umahi expresses Frustration over Fixing Nigerian Roads
***Seeks Support for Loans as Budgetary Provisions Fall Short
The Minister of Works, Senator David Umahi, has voiced his deep frustration over the state of Nigeria’s road infrastructure, highlighting inadequate yearly budgetary allocations as a major barrier to progress.
Speaking during the 2025 budget defense session before the Senate Committee on Works in Abuja on Friday, Umahi described the financial constraints as overwhelming. “I’ve succeeded in most of my life’s engagements, but I feel frustrated fixing Nigerian roads with these meagre allocations,” he lamented.
Umahi disclosed that President Bola Tinubu inherited 2,064 road projects valued at N13 trillion, but rising costs have pushed the estimated expenditure to N18 trillion. He noted that the N827 billion allocated for road infrastructure in the 2025 budget is grossly insufficient to address the challenges.
“Roads are critical to economic growth and poverty reduction. They create jobs and drive economic activities. However, fixing these roads cannot be achieved with yearly budget provisions alone,” he explained.
The minister urged Nigerians to support the government’s borrowing initiatives, assuring that the funds would directly impact citizens’ lives by boosting economic activities and reducing hunger.
Senators on the committee, led by Senator Mpigi Barinaga, praised Umahi for his efficient management of scarce resources and supported his call for alternative funding mechanisms. They acknowledged the scale of the work required and admitted that the proposed budget falls far short of what is needed to resolve Nigeria’s road infrastructure crisis.
The session concluded with a shared resolve to explore additional funding options to tackle the nation’s road challenges effectively.
Legislature
In another rowdy session, Lawmakers Demand Accountability Amidst Budget Defense Chaos
***Minister Lokpobiri Assures of Reforms, Apologizes for Lapses
The 2025 budget defense session for the petroleum sector took a contentious turn on Friday as the Senate and House of Representatives Joint Committee on Petroleum (Upstream, Midstream, Downstream, and Gas) erupted into disorder. Tensions flared over delays in budget documentation, with lawmakers decrying the Ministry of Petroleum Resources’ perceived lack of preparedness and respect for legislative protocols.
The meeting, chaired by Senator Jarigbe Agom Jarigbe, was already fraught with logistical challenges. The cramped committee room, bursting with lawmakers and ministry officials, became the backdrop for a fiery exchange that highlighted the strained relationship between the legislative and executive branches. Calls to relocate the session to a more accommodating venue went unheeded, adding to the frustration.
Before the session could proceed, Hon. Kelechi Nwogu raised a procedural objection, pointing out the absence of vital budget documents. “We cannot engage in a meaningful discussion without the necessary materials. This undermines the integrity of the process,” Nwogu asserted.
The Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, faced sharp criticism for the disorganization. Hon. Ado Doguwa, Co-Chairman of the Joint Committee, accused the Ministry of fostering an adversarial relationship with the legislature. “Minister, we see you only once a year, and even then, the lack of collaboration is glaring. This is unacceptable,” Doguwa said, his frustration evident.
Lokpobiri, in an attempt to salvage the situation, apologized for the lapses. “Distinguished Senators and Honourable Members, I deeply regret this oversight. It was not intentional. The budget documents are being distributed as we speak,” he said. He assured lawmakers that the Ministry remained committed to supporting legislative oversight and improving future engagements.
However, Lokpobiri’s lighthearted remark that the documents were being delivered in “Ghana Must Go” bags—containing no money—elicited mixed reactions. While some lawmakers chuckled, others viewed it as a diversion from the seriousness of the issue.
Doguwa, accepting the apology, stressed the need for strict adherence to legislative guidelines. “While we appreciate the apology, the late submission of documents is a breach of procedure. This cannot continue. We demand accountability and timely cooperation moving forward,” he said.
The session ultimately ended in stalemate, with lawmakers insisting on postponing the meeting until all necessary documents had been reviewed. The debacle underscores the persistent challenges of executive-legislative coordination in Nigeria’s budgetary process, particularly in critical sectors like petroleum.
As the Joint Committee prepares to reconvene, stakeholders will be watching closely to see if the Ministry of Petroleum Resources can rebuild trust and ensure a smoother process in the future.
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