Labour unions planned strike, minimum wage increase… 7 business stories to track this week

Here are the seven top business stories you need to track this week — October 2 to October 6.

NLC, TUC PLANNED STRIKE

The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have directed their members and affiliate bodies to start a mass action on October 3, as a protest against the state of the nation.

The labour unions announced the decision in a communique issued at the end of virtual meetings of their respective national executive councils, last week.

The associations said they have decided “in the spirit of the Independence Day celebration and to demonstrate our resolve for a truly independent Nigeria to take our destinies in our own hands and rescue our nation”.

Other unions joining the strike are the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), and National Union of Electricity Employees of Nigeria (NUEE).

FG JACKS UP MINIMUM WAGE BY N35,000 FOR CIVIL WORKERS

The federal government has announced a provisional wage increment of N35,000 monthly for treasury-paid workers for six months.

The development followed President Bola Tinubu’s Independence Day speech delivered on Sunday.

The president, who had initially raised the wage by N25,000 for junior civil workers, said the increment would enhance wages without increasing the inflation rate.

Tinubu further noted that his administration would provide investment funding for enterprises with great potential and also increase investment in micro, small, and medium-sized enterprises.

The federal government, after a four-hour meeting with labour bodies, to avert the planned nationwide indefinite strike, said the minimum wage provisional increase would now be applicable to all levels of civil servants.

BUA FIXES CEMENT PRICE AT N3,500

The management of BUA Cement has reduced its ex-factory price to N3,500 from N5,500 to spur development in the building materials and infrastructure sectors.

In a statement on Sunday, the company said the new ex-factory price becomes effective from October 2.

The manufacturer said it would monitor field sales to ensure compliance among the firm’s licensed dealers.

The price adjustment follows the pledge made by Abdul Samad Rabiu, the company’s founder and chairman, on September 16 after the meeting with Tinubu in Aso Villa, Abuja.

FG WAIVES VAT ON DIESEL

The federal government says it will waive the value-added tax (VAT) on diesel for the next six months as part of measures to cushion the impacts of the removal of the petrol subsidy.

The waiver is part of the resolution reached by the federal government and leadership of the NLC and TUC at the end of a four-hour meeting held on Sunday in Abuja.

Speaking at the end of the meeting, Femi Gbajabiamila, chief of staff, said the government team and the labour leaders have reached some resolutions.

CARDOSO SHARES PLANS TO STABILISE FX

Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN), has spoken on his plans to stabilise the country’s foreign exchange (FX) market and slow inflation.

Cardoso spoke on Tuesday when he and four CBN deputy governor nominees were screened by the senate.

The CBN governor said when confirmed, the immediate plan to stabilise the naira would be for the apex bank to settle some financial obligations and make “transparent rules”.

Cardoso said his administration aims to look into “operational issues, settle some financial obligations and make transparent rules.”

X TO BECOME PROFITABLE BY 2024 | INTRODUCES NEW FEATURE

Linda Yaccarino, chief executive officer (CEO) of X (formerly known as Twitter), says the company will be profitable by early 2024.

Yaccarino, who became the first female CEO of Twitter in May 2023, said X was just about “break-even” in terms of operating cash flow and should soon make a profit.

“Now that I have immersed myself in the business, we have a good set of eyes on what is predictable,” she said.

Meanwhile, the micro-blogging platform has also introduced a new feature that allows content creators to receive direct messages (DMs) from only subscribers of the blue tick mark.

OIL PRICE CLIMBS TO $97 A BARREL

Oil price, last week, jumped to $97 a barrel.

The price of Brent crude, the global oil benchmark, jumped 3.6 percent to $97 a barrel — up from the $94.30 the commodity traded last Monday.

The price of the product also signifies the highest since November 2022.

The price surge was said to be exacerbated by a drop in crude stocks in the US, which added to worries over tight global supplies from the Organisation of Petroleum Exporting Countries (OPEC) output cuts.