By Steve Agbota
The Maritime Workers’ Union of Nigeria (MWUN) has expressed deep appreciation to the Federal Government for reducing the mandatory deduction from the Internally Generated Revenue (IGR) of maritime agencies, including the Nigerian Ports Authority (NPA), from 50% to 20%.
Previously, the Federal Government had directed that 50% of the IGR of all Federal Government Owned Enterprises (FGOEs), including the NPA, be automatically deducted as part of efforts to bolster federal revenue. This directive was met with significant opposition from MWUN, which warned of severe repercussions for the maritime sector, particularly concerning workers’ welfare and the maintenance of critical port infrastructure.
Adewale Adeyanju, President General of MWUN, recently provided an update on the union’s stance and the government’s reconsideration of the directive. He recounted the union’s vigorous efforts to persuade the government to rethink the initial 50% deduction, which had raised widespread alarm among stakeholders in the maritime industry.
MWUN had argued that the NPA, as a self-funding government agency, required at least 70% of its IGR to effectively manage, replace, and upgrade essential port infrastructure. Adeyanju emphasized that the union had formally communicated these concerns to the government and engaged in discussions with the former Managing Director of the NPA, Mohammed Bello-Koko, to advocate for a reduction in the deduction.
“We made it clear to the former MD that our primary concern was the welfare of workers. He assured us that the issue was before Mr. President, and efforts were being made to address it,” Adeyanju stated.
The union views the recent reduction in the IGR deduction rate to 20% as a significant victory for both the union and the wider maritime community. Adeyanju noted that this adjustment would ensure that maritime agencies can meet their financial obligations, including the payment of salaries and pensions, which had been jeopardized by the original directive.
“We need to thank the government because there’s no way you can reduce the revenue of an agency responsible for such critical operations without impacting the welfare of the workers and retirees,” he added.
He also highlighted the importance of ensuring that maritime agencies receive equitable treatment compared to other sectors, such as aviation, which have similarly seen reductions in IGR deductions. Adeyanju stressed that if such considerations have been made for the aviation industry, the maritime sector should not be an exception.
The union remains steadfast in its commitment to protecting the interests of its members and ensuring the continued viability of the maritime sector. Adeyanju expressed deep gratitude to President Bola Tinubu for the decision, stating that it demonstrates a commitment to prioritizing Nigeria’s welfare and recognizing the essential role that maritime workers play in the nation’s economy.
“With this new development, we want to sincerely thank Mr. President,” Adeyanju concluded.