The Maritime Workers’ Union of Nigeria (MWUN) has expressed its gratitude to the Federal Government for revisiting the previously mandated 50% deduction from the Internally Generated Revenue (IGR) of maritime agencies, including the Nigerian Ports Authority (NPA), down to 20%.
Recall that the Federal Government had earlier issued a directive mandating a 50% automatic deduction from the IGR of all Federal Government Owned Enterprises (FGOEs), including the NPA. This move was intended to boost federal revenue
The MWUN had opposed the original directive, which they argued would have had catastrophic consequences for the maritime sector, particularly concerning the welfare of workers and the maintenance of critical port infrastructure.
However, the President General of MWUN; Comrade Adewale Adeyanju, recently provided an update on the union’s stance and the government’s response.
He recalled the union’s efforts to persuade the government to reconsider the 50% deduction, which had sparked widespread concern among stakeholders in the maritime industry. The union had argued that the NPA, being a self-funding government agency, needed to retain at least 70% of its IGR to effectively manage, replace, and provide necessary infrastructure within the ports.
Adeyanju highlighted that the union had written to the government expressing these concerns and had also engaged with the former Managing Director of NPA, Mohammed Bello-Koko, on the matter. “We made it clear to the former MD that our primary concern was the welfare of workers,” Adeyanju said. “He assured us that the issue was before Mr. President, and efforts were being made to address it.”
He said the recent reduction in the deduction rate to 20% is a significant victory for the union and the broader maritime community.
Adeyanju noted that this adjustment would help ensure that the agencies can meet their financial obligations, including paying salaries and pensions, which had been at risk under the original directive.
“We need to thank the government because there’s no way you can reduce the revenue of an agency that is responsible for such critical operations without affecting the welfare of the workers and retirees,” Adeyanju added.
He also emphasized the importance of ensuring that maritime agencies are not treated differently from those in other sectors, such as aviation, which have also seen reductions in IGR deductions. “If they have done that for the aviation industry, then the maritime sector shouldn’t be an exception,” Adeyanju stated, underscoring the union’s commitment to protecting the interests of its members and ensuring the continued viability of the sector.
The MWUN President General concluded by thanking President Bola Tinubu for the decision, noting that it demonstrated a commitment to putting Nigeria first and recognizing the vital role that maritime workers play in the nation’s economy. “With this new development, we want to thank Mr. President sincerely,” Adeyanju said.
