Abia State Launches ₦1bn Interest-Free Loans as Labour Threatens Strike Over Wage Dispute

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The Abia State Government will, on Thursday, July 11, 2024, launch a ₦1 billion interest-free revolving loan scheme for 9,200 residents from the state’s 184 wards in the first phase of the program.

Briefing journalists on the outcomes of the executive council meeting presided over by Governor Alex Otti on Monday, Okey Kanu, the State’s Commissioner for Information and Culture, said the initiative aims to empower local entrepreneurs and stimulate the state’s economy.

“This scheme is designed to support micro-businesses operating within the state. It is an interventionist program that will serve both as a palliative and empowerment for the beneficiaries,” Kanu explained.

The loan disbursement will be facilitated through the Abia State Co-operative and Support Schemes.

“To ensure an even spread around the state, 50 beneficiaries have been drawn from 184 political wards in the state,” Kanu noted.

He further highlighted the significant impact the program is expected to have in the short, medium, and long term, addressing the economic challenges faced by local businesses due to the economic downturn in the country.

Labour Threatens Abia State Government With Strike Action

Meanwhile, the Organised Labour in Abia State, on Monday, issued a seven-day strike ultimatum to the state government over non-compliance with the payment of the former ₦30,000 minimum wage and the ₦35,000 palliative wage award approved by the Federal Government since October 2023.

In a letter seen by Neusroom and signed by Okoro Ogbonnaya, the National Labour Congress (NLC) State Chairman of Abia State, and Enogwe Ihechi, the State Chairman for the Trade Union Congress (TUC), the unions expressed their dissatisfaction with the state government’s failure to implement the agreed wages.

“In line with the national directive on the non-compliance of the Abia State government regarding the payment of the former ₦30,000 minimum wage and the ₦35,000 palliative wage award as approved by the Federal Government since October 2023, the Organised Labour hereby issues this seven-day ultimatum effective from the date of receipt of this letter,” the letter stated.

The Organised Labour made it clear that there would be no further communication with the government if their demands were not met by the end of the ultimatum.

“At the expiration of this ultimatum on Sunday at 00:00 hours, there shall be no further communication with the government. Instead, the entire workforce of Abia State will proceed on an indefinite strike action beginning on Monday, July 15, 2024,” the letter continued.