Nigeria offers measures to offset rising costs as unions mull strike

Nigerian workers march to the premises of the Nigerian National Assembly in Abuja on August 2, 2023 during a nationwide protest called after talks to reach an agreement with the government broke down. (AFP/File photo)
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Updated 02 October 2023
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Nigeria offers measures to offset rising costs as unions mull strike

  • The fuel subsidy had been in place for decades and kept petrol prices artificially low in what was seen by many Nigerians as a benefit from their government

ABUJA: Nigerian President Bola Ahmed Tinubu’s government on Sunday proposed a temporary wage hike for federal workers and more cheap gas-powered public transport among other measures to offset the impact of his economic reforms and convince labor unions to call off a planned national strike.
Speaking in a broadcast to mark Nigeria’s 63rd independence day anniversary, Tinubu’s announcement came after he ended a longstanding fuel subsidy that cost the government billions of dollars a year to keep fuel cheap and also his liberalization of the naira currency.
Government officials say the reforms were needed to revive Africa’s largest economy and investors applauded them, but Nigerians are struggling with a tripling of fuel prices, a sharp naira devaluation and inflation now at 25 percent.
“There is no joy in seeing the people of this nation shoulder burdens that should have been shed years ago,” Tinubu said.
“I wish today’s difficulties did not exist. But we must endure if we are to reach the good side of our future.”
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) — the two major unions representing industries from aviation workers and nurses to teachers and bankers — had called an indefinite strike for October 3 because they say the government failed to address their concerns.
In his broadcast, Tinubu said the federal minimum wage for the lower-grade public employees would increase by 25,000 naira a month ($32) for the next six months.
Later Sunday, government officials and labor unions met for negotiations, and the government said the temporary wage increase would now apply to “all treasury-paid federal government workers for six months,” according a presidency statement.
The temporary wage hike was among other offers, it said.
“NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations,” the statement said.
NLC chief Joe Ajaero told reporters the union would take the government offers to its membership for consultations.
“We’re hopeful that (membership) will have a look at them and give us a fresh mandate,” he said.
Tinubu said the government was also preparing to speed up the introduction of gas-powered buses for public transport, which would lower the costs of transport — one of the main complaints for Nigerians since the fuel subsidy removal.
Social security cash transfers to the poorest Nigerians would also be extended and investments made available for small businesses, he said.
Tinubu — a former Lagos governor elected in February in a highly contested ballot — has promised to bring in more investment and tackle the country’s complex security challenges, from jihadists to bandit militias carrying out mass kidnappings.
The Nigerian leader has also sought to shake up the country’s central bank, whose previous director critics say was responsible for unorthodox monetary policies that kept investors away.
The former central bank director has been replaced and arrested.
The fuel subsidy had been in place for decades and kept petrol prices artificially low in what was seen by many Nigerians as a benefit from their government.
But the measure cost the government billions annually because although Nigeria is a major oil producer, it imports most of its fuel because of a lack of functioning refineries.
The NLC and TUC went on strike in August over the same issues, with many businesses, government offices, markets, banks closed for a day in the capital Abuja. But the call to strike met with more mixed response from businesses in the economic capital Lagos.


China executes 11 linked to Myanmar scam compounds

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China executes 11 linked to Myanmar scam compounds

  • Fraud compounds where scammers lure Internet users have flourished across Southeast Asia
  • The 11 people executed Thursday were sentenced to death in September by a court in Wenzhou
BEIJING: China executed 11 people linked telecom scam operations, on Thursday, state media reported, as Beijing toughens its response to the sprawling, transnational industry.
Fraud compounds where scammers lure Internet users into fake romantic relationships and cryptocurrency investments have flourished across Southeast Asia, including in the lawless borderlands of Myanmar.
Initially largely targeting Chinese speakers, the criminal groups behind the compounds have expanded operations into multiple languages to steal from victims around the world.
Those conducting the scams are sometimes willing con artists, and other times trafficked foreign nationals forced to work.
In recent years, Beijing has stepped up cooperation with regional governments to crack down on the compounds, and thousands of people have been repatriated to face trial in China’s opaque justice system.
The 11 people executed Thursday were sentenced to death in September by a court in the eastern Chinese city of Wenzhou, state news agency Xinhua said, adding that the court also carried out the executions.
Crimes of those executed included “intentional homicide, intentional injury, unlawful detention, fraud and casino establishment,” Xinhua said.
The death sentences were approved by the Supreme People’s Court in Beijing, which found that the evidence produced of crimes committed since 2015 was “conclusive and sufficient,” the report said.
Among the executed were “key members” of the notorious “Ming family criminal group,” whose activities had contributed to the deaths of 14 Chinese citizens and injuries to “many others,” Xinhua added.
Fighting fraud ‘cancer’
Fraud operations centered in Myanmar’s border regions have extracted billions of dollars from around the world through phone and Internet scams.
Experts say most of the centers are run by Chinese-led crime syndicates working with Myanmar militias.
The fraud activities — and crackdowns by Beijing — are closely followed in China.
Asked about the latest executions, a spokesman for Beijing’s foreign ministry said that “for a while, China has worked with Myanmar and other countries to combat cross-border telecom and Internet fraud.”
“China will continue to deepen international law enforcement cooperation” against “the cancer of gambling and fraud,” spokesman Guo Jiakun told a regular press conference.
The September rulings that resulted in Thursday’s executions also included death sentences with two-year reprieves to five other individuals.
Another 23 suspects were given prison sentences ranging from five years to life.
In November, Chinese authorities sentenced five people to death for their involvement in scam operations in Myanmar’s Kokang region.
Their crimes had led to the deaths of six Chinese nationals, according to state media reports.
The United Nations Office on Drugs and Crime warned in April that the cyberscam industry was spreading across the world, including to South America, Africa, the Middle East, Europe and some Pacific Islands.
The UN has estimated that hundreds of thousands of people are working in scam centers globally.