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NPA workers threaten to showdown over 50% IGR deduction

Both senior and junior workers of the Nigerian Ports Authority (NPA) yesterday, issued a seven-day ultimatum to the Federal Government to reverse the presidential directive on automatic deduction of 50 per cent from its internally generated revenue (IGR) or they would shut the ports.

This was contained in a letter jointly signed by the Senior Staff Association of Statutory Corporation and Government Owned Companies (SSASCGOC) and Maritime Workers’ Union of Nigeria (MWUN).

In the letter, the workers sought urgent reversal of the 50 per cent policy insisting that if not curtailed, it would lead to irreversible industrial action and closure of the business at port.

The letter reads in part: “We wish to reiterate our position as stated in our letter reference above thus: The NPA, as the employer of workers who are our members, is self-funded and receives zero allocation from the government budget. This means that it needs to retain most, if not all, of the funds it generates in order to be able to continue to effectively discharge its duties, which include constant dredging of our Port; regular maintenance of our Quay aprons; maintenance of Ports, Jetties, and Terminals; manpower development and discharge of corporate social responsibilities (CSR).

“Without prejudice to the intentions behind the formation of policies to raise revenue for the Federal Government, it must be said that it is not advisable to introduce extractive policies to self-funding specialized entities as they will be subjected to unnecessary hardship and avoidable disruption of processes due to the revenue disruptions.

"Since it came into force, the list of negative effects of this policy of 50per cent Automatic Deduction is growing at an alarming rate. Suffice it to say that the 50per cent benchmark for deduction is too high and inimical to the well-being of the Nigerian Ports Authority. It constitutes a direct threat to its growth, its operations, and ultimately its very existence. This is because the unprecedented drop in the revenue pool has directly impacted the NPA’s ability to carry out its responsibilities, as highlighted in Paragraph 1 above.”

The workers also impressed “upon the Minister of Finance, in having to combine the onerous duty to sign off on funds meant for the running of the NPA and several other government owned entities as the sole signatory authorized to do so is constituting a bottleneck to the effective running of the NPA in particular with the resultant delay in the payment of gratuities, rent allowance, and salaries/pension to workers and retirees alike.

“Our recommendation in our referenced letter was that rather than 50per cent, it would be more practical to deduct 30per cent while 70 per cent is left to the Authority to carry on its statutory duties as highlighted here”.

The workers implored the minister to take cognizance of their pains and the negative impact this policy and its execution mechanisms are having on the workers and NPA as an entity.

“For the avoidance of any ambiguity, the two Unions SSASCGOS and MWUN do hereby demand a rejig of the execution mechanisms of this policy to ensure timely actualization of funds disbursement process; and a downward review of the new deduction from 50 per cent to 30 per cent.

Failure to effect the changes, the union said: "We have demanded that within seven days from the receipt of this letter will result in the two Unions having no further option than to proceed on an industrial action to the withdrawal of the services of all our members from all the ports nationwide."