Maritime workers have issued a warning that they may go on strike across the country if the federal government proceeds with its plan to deduct 50 percent of the revenue earned by the Nigerian Ports Authority (NPA).
The threat was made in a joint statement by the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASCGOC) and the Maritime Workers Union of Nigeria (MWUN) in Lagos.
In January, the federal government released a circular that mandated a “automatic” 50 percent remittance of the total revenue generated by all self-funded enterprises.
Previously, these self-funded agencies, also known as “Super Agencies,” were allowed to use up to 50 percent of their revenue for expenses and retain 20 percent of the remaining balance as “operating surplus,” the amount by which revenue exceeds expenses.
According to a circular from the Ministry of Finance dated December 28, 2023, the policy implementation was in accordance with a presidential directive.
In a statement signed by Akinola Bodunde (SASCGOC) and Adewale Adeyanju (MWUN), the presidents of the two unions, the workers mentioned that they had written a letter to the president about this matter.
The unions stated that if the decision is not reversed, it will result in the withdrawal of workers and a complete shutdown of ports across the country.
“Automatic deduction of 50 per cent of its internally generated revenue shall leave the Authority financially incapacitated to discharge these responsibilities to the host community, which may lead them to resort to unhealthy activities,” the statement reads.
“We recommend that 30 percent of the revenue internally generated by the Authority could be automatically deducted whilst 70 per cent is left for the Authority to accomplish its overhead costs and statutory responsibilities, failure of which the Union would have no other option than to withdraw the services of its members from all Ports formations nationwide.”
Speaking on behalf of the unions, Bodunde, the president of SASCGOC, highlighted the significant financial impact that a deduction of this nature would have on the NPA’s ability to function effectively.
As the NPA relies on its own generated income, a 50 percent reduction would severely hamper its operational capabilities.
This decrease in revenue could potentially jeopardize important maritime operations, such as dredging port channels and maintaining infrastructure, which would ultimately have a negative impact on vessel traffic and port activities.
Additionally, Bodunde expressed concerns about the potential consequences of the proposed deduction on workforce development and community relations.
