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Africa: X-raying a bloc’s fight against poverty

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Poverty, the inability to satisfy basic human needs is endemic in Africa. Unfortunately, the continent is blessed with enormous human and materials resources to meet its needs and stimulate growth and prosperity.

Many factors such as illiteracy and lack of good governance have been identified as being responsible for this. Recent global developments such as VCOVID-19 outbreak have made the matter worse.

According to the Economic Report on Africa 2021(ERA2021) inaugurated by the Economic Commission for Africa (ECA), the disruptions caused by the COVID-19 pandemic pushed an estimated 55 million Africans into extreme poverty in 2020.

The pandemic reversed more than two decades of progress in poverty reduction on the continent.

Reports show that in 2019, 424 million people in sub-Saharan Africa lived in severe poverty and 460 million in 2022.

Based on the Economic Development in Africa (ECA) Report 2021, Africa stands out as the most affected region in the world in terms of loss of income of poor households.

The Chief Economist of ECA, Hanan Morsy, says Africa currently accounts for more than half of the World’s poor at 54.8 per cent.

Morsy, during the 55th session of the Conference of African Ministers of Finance, Planning, and Economic Development in Addis Ababa, Ethiopia, said the continent faced a tsunami of global shocks that have exacerbated existing socio-economic operation and equity.

She said because of these shocks; the continent currently accounts for more than half of the world’s poor at 54.8 per cent.

“We have estimated 548 million Africans living in poverty in 2022 and 149 million at risk of falling into poverty in the same year.

“There is a skewed distribution across the continent in terms of concentration of these issues, with particularly East and West Africa having a higher share of poverty across regions,” she said.

Morsy said the situation was further exacerbated by existing inequalities, noting that even in times of high economic growth in Africa, the rate of inequality still rose.

“We need to pursue inclusive macroeconomic policies such as targeted and efficient spending and build resilience to future shocks at the household and community level.

“African governments need to enhance resource mobilisation. To do that, I think several measures would help, including closing tax loopholes.

“Africa loses 40 to 60 billion dollars annually in tax evasion. There’s also funding that can be raised through tackling issues of illicit financial flows,” she said.

Mr Adam Elhiraika, Director Macroeconomic Policy Division, ECA, said many African countries were struggling to meet the continent’s development goals due to the impact of severe and mutually reinforcing shocks.

According to Elhiraika, the continent has encountered severe developmental challenges due to increasing poverty, high inequality rates and a lack of decent jobs.

He reiterated that the COVID-19 pandemic, the Ukrainian war and the resultant food and energy crisis, rising inflation, debt tightening, and natural disasters were critical factors to the challenge.

He spoke at a recent at a meeting of experts to herald the 2023 Conference of African Ministers of Finance, Planning, and Economic Development in Ethiopia.

Elhiraika said the Africa’s growth dwindled from 4.6 per cent in 2021 to 3.6 per cent in 2022 and is anticipated to grow by 3.9 per cent in 2023.

“In 2022, an additional 18 million new poor emerged in Africa, with more than half the highest proportion of the world’s poor at 54.8 per cent.

“This is alarming because 546 million people were living in poverty in 2022, which is more than half of the continent’s population,” Elhiraika said.

To enable countries on the continent to advance, in spite of the challenges they encountered, the ECA pledged its unreserved commitment to support and provide shields where necessary.

Acting Secretary-General of ECA, Antonio Pedro, said Africa needs adequate financing to tackle poverty on the continent and cushion the vulnerable groups while meeting its long-term development objectives.

Pedro, at the conference, reiterated that evidence showed the effects of COVID-19, the war in Ukraine, the looming debt crisis, and climate change impacts characterised the deep and interlocking crises in Africa.

He said overcoming these challenges, occasioned by the overlapping crises, would require African countries to formulate innovative and multifaceted strategies that provide a range of policy options.

The acting secretary explained that implementing the agreement establishing the African Continental Free Trade Area (AfCTA) continued to be the blueprint for the African pro-poor economic recovery.

He said there was the need to expedite action on the agreement’s implementation, given its numerous benefits to member states, including resilience to shocks.

Similarly, the African Union Commissioner for Economic Development, Trade, Industry and Mining, Albert Muchanga, said African continental efforts alone were not sufficient to solve the problem.

He, therefore, urged the reform of the global value chain, focus on developing regional and continental value chains and the need for African countries to invest at least one per cent of their GDP in research and development.

Muchanga said the commission was designing a programme that would enable Africa to move from being a producer and exporter of raw materials to an exporter of manufactured goods, agro-processed foods, and services.

The commissioner, however, said Africa faced a climate finance challenge, which could lead to increased climate-induced poverty across the continent.

Meanwhile, highlighting some of the resolutions at the end of the conference, its Chairman/Ministerial Committee of Uganda, Henry Ariganyira, said women and youth empowerment was imperative for the continent’s development.

“Member States are called to leverage the agreement establishing the AfCTA to strengthen their resilience to future economic shocks and maintain sustainable growth.

“They should use it to create wealth and increase domestic resource mobilisation through prudent and targeted public spending, modernise the tax system and adopt home-grown fiscal and monetary reforms that attract small and medium-sized investors”, she said.

Experts say that to address its poverty challenge, African countries should look more inwards with a view to harnessing the continent’s abundant resources rather than depending on handouts and economic templates developed for the continent in foreign lands.

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FEATURE

Meet Ibadan fastest growing female cobbler, Bami Oníbàtá

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By Toheeb Babalola

Championing the world’s oldest professions by women ought not to emerge as a surprise due to the fact that all genders have equal fundamental rights in choosing careers without prejudice.

Shoemaking industry has been a key industry in Sub Saharan Africa dominated by male gender since the 18th century. Shoemaking, which is a business of joining leather, soles and materials to produce sandals, shoes, flip-flops, etc. for the use of human beings, had outrightly shut out females.

The root of this inequality could be traced to the African belief which placed women in the kitchen, and this has deprived them of their creative abilities to be seen or heard for decades. The tradition only prioritised men as the breadwinners of each household.

With the consistent awareness and advocacy for gender equality all around the globe, women have risen from their slumber, freed themselves from barriers and have started pursuing whatever profession they want. Nonetheless, Africa is blessed with extraordinary women who are already flourishing in the businesses initially owned by their counterparts, and Miss Mudirat Olabami Abayomi, seems to be one of them.

In a recent interview with Nigerian NewsDirect Newspapers at her workshop in Sango, Ibadan, Miss Abayomi, professionally called ‘Bami Onibata – Yoruba meaning of “the shoemaker,” revealed her struggles in the industry.

Bami Oníbàtá is an alumnus of one of the great citadels of learning in South-West Nigeria, The Polytechnic, Ibadan, she makes different kinds of footwear in less than three (3 hours) hours without any helping-hand.

She stormed the shoemaking industry with the passion of changing the narrative and pioneering the inclusion of women (most especially Ibadan residents) in the trade.

The 25-year-old shoemaker was officially welcomed into the profession at  a workshop in Oke Ado, Ibadan South West Local Government Area of Oyo State, immediately after her National Diploma, ND, programme, where she learned how to make Ankara shoes and bags for the female gender.

As a dynamic woman, Bami never allowed the lockdown (occasioned by COVID-19 pandemic) in 2020, deter her resolve to achieve fame in her chosen career, as she was always reporting for duty, finding her way from her Oluyole residence to her master’s workshop, it also did not stop her from fully delving into making different shoes for both gender. This endeared her to her trainer and master, especially her commitment and accuracy.

Bámi stated that, “In our workshop, we make shoes from scratch and my master hates sluggishness. I knew what I was up against and I did everything to prove I could learn faster. So, I learned everything in shoemaking within six months; though, I must confess that it wasn’t easy.”

Her commitment and diligence while learning the trade with other male apprentices endeared Bámi to her master’s clients, who always preferred her to repair their shoes for them to test her level of understanding of the trade.

But, she proved them all wrong in their perceived insinuations, springing surprises on them.

She however revealed that stereotypism by the male gender, who believes that she is foraging into an exclusive world of the male gender has not made things easy, she said, “The underestimation from people, especially the male gender, who are into it already relegate my gender from the trade. Since I delved into the profession, there has been little turn out.”

However, she enjoyed the support of her parents and relatives, and this has smoothen her journey into the shoemaking world. “Since I told them the reasons for my decision, they have nothing than to support me morally and financially,” she enthused.

Bámi Oníbàtà obtained her freedom from her master in December 2020, and ended up securing a job in one of the best shoemaking firms in Ibadan, Mow Footies, where she worked for 10 months before returning to school for her Higher National Diploma, HND, in 2021.

Combining lectures, which run from morning till evening with her work, Bámi began to source for clients on social media, making use of her friend’s workshop near The Polytechnic, Ibadan main gate.

“Most times, I will have to rush to the workshop during a break after two lectures, and rush back just to attend another lecture. And sometimes, I will work till night, just to meet up with the deadlines of my clients. I don’t fail my clients. My four-hour time frame for delivery/pick does not change,” She added.

With her commitment to delivery time, Bámi got more clientele through her clients, who recommended her and gave good feedback about her. She has made shoes for lecturers at her department; they recommended her to their colleagues in and outside the campus.

“There was a particular lecture, Public Relations Case Studies, the course lecturer, Mr. Olubukola Adio, used my brand, Bámi Oníbàtà, as a case study for the course. It gives my work more publicity on campus,” She revealed with a smile.

Bámi has been nominated for an award in the Best Entrepreneur category by the Union of Campus Journalists, The Press Council, TPI, The Polytechnic, Ibadan, which will come up on August 11.

Bámi, also a freelance On-Air-Personality, OAP, is currently conducting her final academic research study for the award of Higher National Diploma, HND, in Mass Communication.

She has a piece of advice for her gender, she encourages others not to feel inferior in anything they set out to do.

Addressing issues surrounding gender inequality, Fatimah Id¹ra, a Journalist and Gender-based Activist, clamoured for full participation of women in all sectors. Stressing that some professions are still lacking women representation.

Fatimah, crediting Bami, stated that female shoemakers are more influential than their male counterparts, and they easily drive the market and make profits despite the tough economy.

“It is not news that the women are doing better than the men in any area of specialisation. In journalism, as a case study, women are getting shortlisted for international fellowships and winning more investigative awards within and outside Nigeria. This is to confirm the fact that we (women) are taking over the world,” she said.

Bami Oníbàtá is currently embarking on a journey to camp for a year of mandatory youth service, National Youth Service Corps (NYSC).

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FEATURE

Minimum Wage: Addressing poor implementation by states

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Minimum Wage  – the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period – remains a  sensitive matter.

The purpose of establishing a minimum wage is to protect workers against exploitation, reduce income inequality, alleviate poverty and promote social and economic well-being.

In Nigeria,  minimum wage is based on monthly income with an average working period of eight hours daily and five days weekly.

It is expected to be reviewed every five years. The last review was in 2019, from N18, 000 to N30,000.

As Nigerian workers expect  a new minimum wage in 2024,  President Bola Tinubu has promised that it will take effect from April.

Workers’ expectations on the minimum wage have been high through their two major labour centres, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

Workers cross the country are optimistic that the Tripartite Committee on the National Minimum Wage, which was set up by the Federal Government on Jan. 30 to determine the new minimum wage, will be realistic  in determining the new wage amount.

They expect the committee to put into consideration the high inflation rate of 31.7 per cent in February from 29.9 per cent reported by the National Bureau of Statistics in January, among other factors.

The President of the NLC, Mr Joe Ajaero, had stated that if the inflation would continue,  organised labour might push for a new minimum wage of up to one million Naira for Nigerian workers.

Proposals by TUC and NLC at recent public hearings in the six geopolitical zones and Abuja, indicate that the organised labour may slash the demand from one million Naira but still expects the wage to be able to absorb financial pressures faced by the Nigerian worker today.

During the zonal public hearings in Lagos, Kano, Enugu, Akwa Ibom, Adamawa and Abuja, workers in the North-West requested for N485,000, North-East, N560,000; North-Central, N709,000 (NLC), and N447,000 (TUC); South-West, N794,000; South-South, N850,000; and South-East, N540,000 by  NLC and N447,000 by TUC.

According to the Chairman of Enugu State Chapter of the NLC, Mr Fabian Nwigbo, the value of N30,000 minimum wage approved in 2019 had been battered by inflation and worsening economic hardship.

Nwigbo argues that Nigerian workers remain the least paid in the entire West Africa.

“We are asking our leaders to consider the plight of Nigerians. It should be N540,000 per month,” he recommends.

The Secretary of the Nigeria Labour Congress, Mr Chris Onyeka, regrets that many workers can no longer afford their rents or pay their children’s school fees.

He is also worried that with increase in the cost of transport by almost 300 per cent, many civil servants are trekking to work.

Onyeka says every worker  wants to earn a favourable income.

‘’We expect that the minimum wage will take care of the basic needs of the average  Nigerian family.

“How much will that be? A loaf of bread that used to cost N600 is now almost N2,000.

‘’For a family of six, will a loaf of bread be enough for them  in a whole day? Will they not also, at least, take water to eat that bread?

‘’An average family will not spend anything less than N15,000 everyday to take care of themselves; we are talking about a salary that will meet those needs,” he emphasises.

The Lagos State Chairman of Radio, Television, Theatre and Arts Workers’ Union of Nigeria, Mr Ismail Adejumo, is looking forward to a holistic review of the minimum wage.

Adejumo, who is also the Public Relations Officer, NLC, Lagos State Chapter, says:  “There are parameters to be considered, and  expectations from the workforce in terms of productivity too can be measured side-by-side with what government will do in terms of fixing minimum wage.

“As for the parameters, the cost of commodities is a key factor, and the issue of transportation is a key factor.

“We should also be looking at the issue of housing, we have shortage of housing in Lagos vis-a-vis the population; it is really affecting most working class.”

While expectations on the new minimum wage remain high, analysts argue that the challenge about minimum wage in Nigeria is not approval but implementation especially by state governments and some  private employers.

They argue that since inception, minimum wage in Nigeria has suffered non-compliance by some state governments and private employers due to inability to pay and reluctance to pay.

Thus, they believe that ability to pay is very crucial when considering review of minimum wage.

At the recent public hearing organised by the Tripartite Committee on National Minimum Wage across the six geo-political zones of the country, Osun State Gov. Ademola Adeleke, who represented the governors in the South-West Zone, said that states lacked equal ability to pay.

‘’While it will be desirable to see that a uniform minimum wage is agreed to on a national basis, it will amount to self-deceit to assume that states have equal ability to pay.

‘’To this effect, I will humbly advise that individual states will have to negotiate with their workers and agree to a realistic and sustainable minimum wage in line with available resources, ‘’ Adeleke said.

However,  the Assistant General Secretary of NLC, Onyeka, argues that  state governments are not complying because there are no consequences for their non-complaince.

‘`If there were, I believe, many will be complying.

‘’The Federal Ministry of Labour and Employment, which is empowered by law to check abuses and violations of the extant law, does not have the capacity to monitor or enforce.

‘’When we look at the mechanism put in place by the Act to check non-compliance, reporting and enforcement, is the mechanism effective? It has to be strengthened, so that it will become effective,” he argues.

Prof. Kemi Okuwa, a Research Professor at the Nigerian Institute of Social and Economic Research, notes that Nigeria is number 44 in minimum wage cadre in Africa.

Okuwa made a presentation at the recent South-West Zonal public hearing, which took place in Lagos

According to her, the current N30,000 minimum wage is equivalent to $20 per month.

For the Director-General, Nigeria Employers’ Consultative Association, Mr Adewale-Smatt Oyerinde, there must be critical review  of the current minimum wage by all stakeholders.

Oyerinde also urges appropriate recommendations, approval and implementation.

Meanwhile, the Nigeria Governors’ Forum (NGF) wants the tripartite committee to take into account the present circumstances, unique characteristics of individual states, and their effects on the abilities of both governments and private sector employers to pay, when determining the  new wage amount.

In a communiqué issued after its virtual meeting, and signed by its Chairman and Kwara  governor. AbdulRahman AbdulRasaq, and made available to journalists on Thursday, the NGF said: “Members reviewed the progress of the National Minimum Wage Committee and ongoing multi-stakeholder engagements towards agreeing on a fair minimum wage.

“Members urged the National Minimum Wage Committee to consider the current realities, individual states’ peculiarities, and consequential impact on the capacity of  government as well as private sector employers to pay.

“Members also emphasised the need for proposals to be data-driven and evidence-based,” he said. Analysts urge the 37-member  tripartite committee, comprising government representatives, the organised labour, and employers association, to ensure that the new minimum wage reflects the evolving economic landscape.

They advise that the minimum wage should  meet the needs of the Nigerian  worker, urging also that it should be implementable and sustainable.

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FEATURE

Minimum Wage: Addressing poor implementation by states

Published

on

Minimum Wage  – the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period – remains a  sensitive matter.

The purpose of establishing a minimum wage is to protect workers against exploitation, reduce income inequality, alleviate poverty and promote social and economic well-being.

In Nigeria,  minimum wage is based on monthly income with an average working period of eight hours daily and five days weekly.

It is expected to be reviewed every five years. The last review was in 2019, from N18,000 to N30,000.

As Nigerian workers expect  a new minimum wage in 2024,  President Bola Tinubu has promised that it will take effect from April.

Workers’ expectations on the minimum wage have been high through their two major labour centres, the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

Workers across the country are optimistic that the Tripartite Committee on the National Minimum Wage, which was set up by the Federal Government on Jan. 30 to determine the new minimum wage, will be realistic  in determining the new wage amount.

They expect the committee to put into consideration the high inflation rate of 31.7 per cent in February from 29.9 percent reported by the National Bureau of Statistics in January, among other factors.

The President of the NLC, Mr Joe Ajaero, had stated that if the inflation would continue,  organised labour might push for a new minimum wage of up to one million Naira for Nigerian workers.

Proposals by TUC and NLC at recent public hearings in the six geopolitical zones and Abuja, indicate that the organised labour may slash the demand from one million Naira but still expects the wage to be able to absorb financial pressures faced by the Nigerian worker today.

During the zonal public hearings in Lagos, Kano, Enugu, Akwa Ibom, Adamawa and Abuja, workers in the North-West requested for N485,000, North-East, N560,000; North-Central, N709,000 (NLC), and N447,000 (TUC); South-West, N794,000; South-South, N850,000; and South-East, N540,000 by  NLC and N447,000 by TUC.

According to the Chairman of Enugu State Chapter of the NLC, Mr Fabian Nwigbo, the value of N30,000 minimum wage approved in 2019 had been battered by inflation and worsening economic hardship.

Nwigbo argues that Nigerian workers remain the least paid in the entire West Africa.

“We are asking our leaders to consider the plight of Nigerians. It should be N540,000 per month,” he recommends.

The Secretary of the Nigeria Labour Congress, Mr Chris Onyeka, regrets that many workers can no longer afford their rents or pay their children’s school fees.

He is also worried that with an increase in the cost of transport by almost 300 per cent, many civil servants are trekking to work.

Onyeka says every worker wants to earn a favourable income.

‘’We expect that the minimum wage will take care of the basic needs of the average Nigerian family.

“How much will that be? A loaf of bread that used to cost N600 is now almost N2,000.

‘’For a family of six, will a loaf of bread be enough for them for a whole day? Will they not also, at least, take water to eat that bread?

“An average family will not spend anything less than N15,000 everyday to take care of themselves; we are talking about a salary that will meet those needs,” he emphasises.

The Lagos State Chairman of Radio, Television, Theatre and Arts Workers’ Union of Nigeria, Mr Ismail Adejumo, is looking forward to a holistic review of the minimum wage.

Adejumo, who is also the Public Relations Officer, NLC, Lagos State Chapter, says, “There are parameters to be considered, and  expectations from the workforce in terms of productivity too can be measured side-by-side with what the government will do in terms of fixing minimum wage.

“As for the parameters, the cost of commodities is a key factor, and the issue of transportation is a key factor.

“We should also be looking at the issue of housing, we have a shortage of housing in Lagos vis-a-vis the population; it is really affecting most working class.”

While expectations on the new minimum wage remain high, analysts argue that the challenge about minimum wage in Nigeria is not approval but implementation especially by state governments and some  private employers.

They argue that since inception, minimum wage in Nigeria has suffered non-compliance by somestate governments and private employers due to inability to pay and reluctance to pay.

Thus, they believe that ability to pay is very crucial when considering the review of minimum wage.

At the recent public hearing organised by the Tripartite Committee on National Minimum Wage across the six geo-political zones of the country, Osun State Gov. Ademola Adeleke, who represented the governors in the South-West Zone, said that states lacked equal ability to pay.

“While it will be desirable to see that a uniform minimum wage is agreed to on a national basis, it will amount to self-deceit to assume that states have equal ability to pay.

“To this effect, I will humbly advise that individual states will have to negotiate with their workers and agree to a realistic and sustainable minimum wage in line with available resources,” Adeleke said.

However,  the Assistant General Secretary of NLC, Onyeka, argues that  state governments are not complying because there are no consequences for their non-compliance.

“If there were, I believe, many will be complying.

“The Federal Ministry of Labour and Employment, which is empowered by law to check abuses and violations of the extant law, does not have the capacity to monitor or enforce.

“When we look at the mechanism put in place by the Act to check non-compliance, reporting and enforcement, is the mechanism effective? It has to be strengthened, so that it will become effective,” he argues.

Prof. Kemi Okuwa, a Research Professor at the Nigerian Institute of Social and Economic Research, notes that Nigeria is number 44 in minimum wage cadre in Africa.

Okuwa made a presentation at the recent South-West Zonal public hearing, which took place in Lagos

According to her, the current N30,000 minimum wage is equivalent to $20 per month.

For the Director-General, Nigeria Employers’ Consultative Association, Mr Adewale-Smatt Oyerinde, there must be a critical review  of the current minimum wage by all stakeholders.

Oyerinde also urges appropriate recommendations, approval and implementation.

Meanwhile, the Nigeria Governors’ Forum (NGF) wants the tripartite committee to take into account the present circumstances, unique characteristics of individual states, and their effects on the abilities of both governments and private sector employers to pay, when determining the  new wage amount.

In a communiqué issued after its virtual meeting, and signed by its Chairman and Kwara  governor. AbdulRahman AbdulRasaq, and made available to journalists on Thursday, the NGF said, “Members reviewed the progress of the National Minimum Wage Committee and ongoing multi-stakeholder engagements towards agreeing on a fair minimum wage.

“Members urged the National Minimum Wage Committee to consider the current realities, individual states’ peculiarities, and consequential impact on the capacity of  government as well as private sector employers to pay.

“Members also emphasised the need for proposals to be data-driven and evidence-based,” he said.

Analysts urge the 37-member  tripartite committee, comprising government representatives, the organised labour, and employers association, to ensure that the new minimum wage reflects the evolving economic landscape.

They advise that the minimum wage should meet the needs of the Nigerian  worker, urging also that it should be implementable and sustainable.

Continue Reading

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