NLC strike, foreign capital report… business stories to track this week

Here are the seven top business stories you need to track this week — June 3  to June 7.

NBS REPORT

The Nigerian Bureau of Statistics (NBS) is expected to release the capital importation report for the first quarter (Q1) of this year.

Also, the bureau intends to publish reports on Nigeria’s domestic and foreign debt and foreign trade for Q1 of 2024.

OIL, ELECTRICITY WORKERS TO JOIN PLANNED STRIKE

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has directed its members to comply with the directive of the labour unions to begin an indefinite nationwide strike on June 3.

In a statement on June 1, Afolabi Olawale, NUPENG’s general secretary, said the union is committed to ensuring total compliance with the directive.

Also, the National Union of Electricity Employees (NUEE) also “mobilised” its members to embark on the strike in accordance with the directive of NLC and TUC.

On May 31, the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) declared an indefinite nationwide strike to begin on June 3, over the federal government’s refusal to increase the minimum wage from N60,000.

‘NLC’s N615k MINIMUM WAGE DEMAND UNAFFORDABLE’

Meanwhile, Wale Edun, the minister of finance and coordinating minister of the economy, says the minimum wage demanded by the labour unions is unaffordable across the board.

Edun said the labour union has to consider the affordability of the proposed minimum wage for states and local governments as well as the private sector.

He said by law, the government is mandated to set a new wage scale every five years.

TAX REFORM COMMITTEE PROPOSES N800/$ AS CUSTOMS IMPORT DUTY RATE

The presidential committee on fiscal policy and tax reforms says it has asked the federal government to adopt an exchange rate of N800 per dollar for customs import duty.

Taiwo Oyedele, chairman of the committee, spoke on May 30 while engaging journalists on the activities of the tax panel in Lagos.

The tax expert expressed concern over the import duty rate which constantly changes due to the volatility of the foreign exchange (FX) market.

This, Oyedele said, does not allow for adequate planning by businesses.

HUGGIES TO EXIT NIGERIA AFTER 14 YEARS

Kimberly-Clark (KC), the makers of Huggies, on May 31, announced plans to halt local manufacturing and sales activities in Nigeria.

The company, which has operated in Nigeria for nearly 15 years, said it would “close its manufacturing facility and commercial office in Lagos and will no longer manufacture, market, or sell its Huggies and Kotex products in the country”.

The firm said its decision to leave Nigeria is due to its plan to refocus strategic priorities globally and on economic developments in the country.

‘98% OF TRAPPED AIRLINES’ FUNDS CLEARED IN NIGERIA’

The International Air Transport Association (IATA) says 98 percent of trapped airlines’ funds have been cleared in Nigeria.

Willie Walsh, IATA’s director-general, disclosed this in a statement on June 2.

At its peak in June 2023, Walsh said, Nigeria’s blocked funds amounted to $850 million, significantly affecting airlines’ operations and finances in the country.

IATA also said airline funds blocked from repatriation by governments decreased by 28 percent.

The body said the total blocked funds at the end of April was about $1.8 billion — a decrease of $708 million (28 percent) since December 2023.

AEDC SETS JUNE 3 DEADLINE FOR PAYMENT OF OUTSTANDING BILLS

The Abuja Electricity Distribution Company (AEDC) has asked all customers with outstanding bills to clear their debts or risk disconnection.

The AEDC issued the warning on Thursday in a statement by Adefisayo Akinsanya, its head of marketing and corporate communications.

The DisCo advised customers to settle their accounts by June 3 to prevent service disruption, stressing that payments must be made “within 72 hours of this notice”.

FG INAUGURATES NNPC CNG STATION IN LAGOS, ABUJA

Ekperikpe Ekpo, minister of state for petroleum resources (gas), has inaugurated a 5.2 million standard cubic feet per day (mmscfd) compressed natural gas (CNG) and autogas station in Lagos.

The Nigerian National Petroleum Company (NNPC) Limited, in partnership with Transit Gas Nigeria Limited (TGNL), a subsidiary of Axxela, built the facility.

The CNG station is expected to fill about 3,700 cars or 600 trucks and buses per day.