Wale Edun, minister of finance, says economic instability forced 800 companies to shut down operations.

Edun made this known on Tuesday in Abuja during the sectoral report of President Bola Tinubu’s one year in office.

The minister said the departure of these companies was not sudden.

He said issues such as market instability, unfulfilled promises, and contract breaches drove them away, but these issues have now been resolved.

“Government did inherit an unstable economy,” Edun said.

“The 800 companies or so did not make up their minds overnight. They stayed until they could stay no more.

“The conditions which sent them packing are no more. Those conditions were a foreign exchange market that was in no way fit for purpose.

“There was no liquidity. They were a general economic regime marked by instability, broken promises, lack of adherence to contracts.”

Edun said the new environment for investors involves tackling inflation, which will eventually result in lower interest rates.

This, he said, will allow investors to leverage the dynamic domestic markets to enhance their equity and invest.

On March 6, the Manufacturers Association of Nigeria (MAN) said 767 manufacturers shut down operations, while 335 became distressed, in 2023.

Dele Momodu, a chieftain of the Peoples Democratic Party (PDP), has called on President Bola Tinubu to bring in capable individuals who can help address the nation’s challenges into his cabinet.

Speaking with journalists on Tuesday in Lagos, Momodu acknowledged the difficult times many Nigerians have faced over the past year and urged Tinubu to invite people with fresh ideas to help turn things around.

According to Momodu, the President needs to do more to meet citizens’ expectations, stressing that Nigeria is blessed with some of the greatest human beings scattered across the globe.

He advised Tinubu to find and bring these individuals into the government.

“The best way to get a second term by any leader is when you have performed in the first term,” Momodu said, adding “My honest advice, borne out of patriotism, is that you urgently get the best people on board.”

The publisher further urged the president to surround himself with people who would provide honest feedback, warning against the culture of sycophancy which he described as an albatross to good governance.

Momodu also called on Tinubu to solve the energy crisis in the country which he believes is crucial for propelling development, stating: “Until we solve the energy crisis, I don’t think we will be ready to join the comity of other nations in their march towards advancement.

“We also need to declare a state of emergency in infrastructure, education, food security, and overall security.”

…says trial- and-error economic policies won’t work

The presidential candidate of the Peoples Democratic Party (PDP), in the 2023 general elections, Atiku Abubakar, has said President Ahmed Tinubu’s one year rule hasn’t produced tangible results because he unleashed reforms without an implementation plan.

Atiku said this in an article he made public on Tuesday. He recalled that “On May 29, 2023, President Bola Tinubu raised the hopes of Nigerians with his pledge to ‘remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty.”

He explained that since making this pronouncement, Tinubu has also spoken about growing the economy at double-digit rates to US$1 trillion in six years, ending misery, and bringing immediate relief to Nigeria’s cost-of-living crisis.

According to the former Vice President noted that on listening to this, Nigerians must have breathed a sigh of relief after their experience with ex-President Buhari’s 8 years of economic misadventure.

He, however, said, “Tinubu laid out no plans for the ‘remodeling’ of the economy but soon embarked on a cocktail of policies to achieve it.

“In May 2023, he eliminated PMS subsidies, and a month later, the CBN implemented a new foreign exchange policy that unified the multiple official FX windows into a single official market.

“More policies followed in rapid succession: the tightening of monetary policy to reduce Naira liquidity, a hike in monetary policy rates, the introduction of cost-reflective electricity tariff, and a cybersecurity tax.

“Predictably, 12 months on, Tinubu’s pledge of growing the economy and ending misery remains unfulfilled.

“His actions or inactions have significantly worsened Nigeria’s macroeconomic stability. Nigeria remains a struggling economy and is more fragile today than it was a year ago.

“Indeed, all the economic ills – joblessness, poverty, and misery – which defined the Buhari-led administration have only exacerbated.

“Africa’s leading economy has slipped to the 4th position lagging behind Algeria, Egypt, and South Africa. Citizens’ hopes have been dashed (and not renewed contrary to the propaganda of the administration) as Nigeria’s economic woes have multiplied.

Giving an analysis of how he thinks Nigeria got to this sorry state, Atiku said, “In my press statement on the state of our economy, earlier this year, I expressed my concerns about the downside risks of unleashing reforms without sequencing;

“…without any ideas on how to implement them; and without any regards to their potential and real devastating consequences. Implementing policies without proper planning and a clear destination is nothing other than trial-and-error economics.

“My concerns have not diminished. I will focus on just four areas to underscore those downside risks associated with Tinubu’s reform measures and their dire consequences on Nigeria’s medium to long-term growth and development.

“First, President Tinubu’s policies do not create prosperity. Instead, they pauperize the poor and bankrupt the rich.

“They spare no one. Nigerian citizens, the majority of whom are poor, are going through the worst cost-of-living crisis since the infamous structural adjustment programme of the 1980s.

“The annual inflation rate at 33.69% is the highest in nearly 3 decades. Food prices are unbearably higher than what ordinary citizens can afford as food inflation soared to 40.53% in April, the highest in more than 15 years.”

He further said, “Nigerian citizens have to pay 114% more for a bag of rice, 107% more for a bag of flour, and 150% more in transport fares relative to May 2023. Today, in some locations, motorists are paying 305% more for a litre of fuel.

“Yet, on a minimum wage of the equivalent of US$23 per month, Nigerian workers are among the lowest wage earners in the world. Tinubu had the ‘courage’ to remove subsidy on PMS;

“…and impose additional taxes on his people but lacks the compassion to raise the minimum wage or implement a social investment programme that would reduce the levels of vulnerability, and deprivation of workers and their families.

“Second, President Tinubu’s policies create a hostile environment for businesses, big or small. The private sector is overwhelmed by Tinubu’s dismal policies and overburdened by his failure to address the policy fallouts.

“The manufacturing sector, which holds the key to higher incomes, jobs, and economic growth, has been bogged down by rising input prices, higher energy and borrowing costs, and exchange rate complexities.

“For example, since 2023, the average price of diesel has doubled to N1,600 per litre. Electricity tariff has recently been increased by 250% from N68/Kwh to N206/Kwh.

“As reported by the Guardian (13 May 2024), in Q1 of 2024, energy prices were up by 70%, costing manufacturers N290 billion.

“Since May 2023, corporate Nigeria has lost more than a dozen enterprises to other countries. Unilever, GlaxoSmithKline (GSK), Procter & Gamble (P&G), Sanofi-Aventi Nigeria, Bolt Food, Equinor, among others had exited Nigeria citing reasons including foreign exchange complexities, security concerns, and high operational costs.

“According to the Nigeria Employers’ Consultative Association (NECA), nearly 20,000 jobs may have been lost due to the departure of 15 multinational companies from Nigeria.

“Those enterprises that remain are struggling to survive. Vanguard Newspaper (20 May, 2024) reported a significant rise – to nearly 30% – in unsold goods in the warehouses of manufacturers of fast-moving consumer goods, occasioned by the rising cost of living and declining purchasing power of the citizens.

“According to the Guardian, manufacturers reported in Q1 a 10% drop in capacity utilization, a 10% drop in production, a 5% drop in investment, and more than 7% drop in sales.

“The Daily Trust (1 May, 2024) quoted Dangote lamenting that nearly 97% of manufacturing concerns in Nigeria will be unable to pay dividends this year.

“In an economy with high rates of unemployment, a declining manufacturing sector cannot be an option.

“Third, President Tinubu’s foreign exchange policies have not had any positive impact on Nigeria’s foreign trade balance, contrary to policy expectations.

“In particular, the free-float and the resulting devaluation of the Naira has not resulted in an appreciable improvement in Nigeria’s trade balance.

“Devaluation has not enhanced the competitiveness of local producers and has had no positive impact on exports of goods, primary or manufactured. In Q4 of 2023, for example, while imports surged 163.1%, exports rose at a slower 99.6%, indicating a huge foreign trade deficit.

“Similarly, in Q1 of 2024, Nigeria recorded a trade deficit of $7.5 billion, with exports value of $12.7 billion and import value of US$14 billion. Overall, the trade deficit as a percentage of GDP increased by 0.83% from 0.05% in May 2023 to 0.88% in May 2024.

“Fourth, President Tinubu’s policies have failed to attract foreign investments into the country despite all the posturing and media hype by the President’s men.

“Exchange rate unification and free float of the Naira have not led to higher capital inflows (whether Foreign Direct Investment or Foreign Portfolio Investments), again contrary to policy expectations.

“ Indeed, FDI inflows declined by 26.8%, from US5.33 billion in May 2023 to US$3.9 billion in May 2024. It is not difficult to understand why: FDI is about TRUST.

“It is about the investing world trusting the leadership of a country to act and deliver on promises made. Investors come when the right policies are designed and delivered timely and efficiently by public institutions.”

The Organised Labour has rejected a fresh minimum wage proposal by the Nigerian Government.

Channels Television reports that the Organised Labour, comprising the Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, rejected the offer of the Federal Government to pay N60,000 as new minimum wage,.

It was also gathered that labour had shifted grounds from its N497,000 proposal to N494,000.

Channels Television said a prominent member of the Tripartite Committee for the negotiation of a new minimum wage for Nigerian workers revealed that the Federal Government and the Organised Private Sector side of the talks proposed a N60,000 monthly minimum wage as against the N57,000 they tabled last week when the committee resumed negotiations.

DAILY POST recalls that the government had initially proposed N48,000 and N54,000, which were also rejected by Organised Labour.

However, Labour had also presented N615,000 as the new minimum wage but saw reasons to drop their demand from to N497,000 last week and then to N494,000 on Tuesday.

The Tripartite Committee is yet to agree on a new minimum wage with three days to the May 31 deadline the labour unions gave to the government.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has said that the Nigerian economy was experiencing a positive growth rate of 2.99 per cent, surpassing the 2.3 per cent growth seen in the first quarter of 2024.

Edun made this disclosure during the presentation of his ministry’s performance, one year into the administration of President Bola Tinubu in Abuja on Tuesday, May 27.

According to him, the improvement in economic growth highlights the effectiveness of President Bola Tinubu’s economic strategy.

“This growth in agriculture provides the monetary authority with the leverage needed to stabilize foreign exchange (FX) rates,” Edun explained. “By continuing on this path and intensifying our efforts, we are on track to lift many Nigerians out of poverty,” He said.

The minister, who said that revenue collection had also seen significant improvements, added that it has enabled the government to service its debts without resorting to the Central Bank’s Ways and Means advances, a practice that has previously been a cause for concern regarding fiscal discipline and inflation.

The finance minister emphasized that these positive economic indicators reflect the current administration’s commitment to sustainable economic growth and fiscal responsibility.

As the Economic Community of West African States (ECOWAS) commemorates its 49th anniversary on May 28, the President of the commission, Omar Touray said insecurity has continued to threaten the region despite its achievements.

Touray’s assertion was contained in a statement made available to THE WHISTLER on Tuesday, where he called on the region, to regardless,
recall some of the commission’s positive results.

“These achievements can be seen in many areas including free movement of our people, intra-community trade, regional energy, and transport infrastructure, governance as well as in peace and Security.

“ECOWAS may have realised many achievements, but the Community continues to face a number of challenges.

“As we celebrate our 49th anniversary, insecurity continues to threaten our region.

“Some of our member states are battling terrorist groups on a daily basis and a large number of our population face displacement and food insecurity.”

Touray noted that it was pertinent that the region stays united to successfully win the war against insecurity. “But it is our unity which now stands threatened,” he said.

He called on the member states to do everything to preserve the unity, even as it aligns with the theme of this year’s anniversary: ‘Strengthening regional unity, peace and security’.

The theme, according to Touray was chosen to reflect the region’s current challenges and the need to work to preserve regional unity and peace as envisioned by its founding fathers like General Yakubu Gowon who ensured the security and integrity of the region was protected.

“I would like to take this opportunity to thank our leaders, both past and present, members of the Community as well as the staff of all ECOWAS institutions and agencies for the sacrifices they make every day to promote our community objectives.

“I would also like to extend my gratitude to all our local and international partners for their consistent support to ECOWAS in the implementation of the various community projects and programmes.

“We are convinced that in unity, we will preserve peace and strengthen our actions for the security of our Member States and our people.

“Through unity, we will preserve regional stability and the harmonious political and socio-economic development of our community,” Touray said.

The leader of Afenifere, the pan-Yoruba socio-cultural and socio-political organization, Chief Reuben Famuyide Fasoranti, has backed President Bola Ahmed Tinubu led administration on the step taken to grant the 774 local government areas in the country full autonomy.

This was contained in a congratulatory message marking the first year anniversary of President Tinubu.

The statement was signed by Afenifere National Publicity Secretary, Comrade Jare Ajayi.

Ajayi quoted Pa Fasoranti as expressing delight on some bold steps that the President has taken in the last one year aimed at repositioning Nigeria adroitly.

“Before, during and after the Presidential election that brought you into the office last year, I gave you some ideas regarding how to tackle some challenges that Nigeria faced – and still faces. We also spoke about some of these issues when I led Afenifere delegation to your office in Abuja last month.”

“I’m happy to note that, in line with your promises, you are making efforts at implementing policies that will enhance the situation of our dear country and better the lot of the people,” Pa Fasoranti stated.

The nonanegarian said that the reforms initiated by the government have the prospect of revamping the country’s economy and reducing the mutual distrust among the ethnic nationalities in the country.

According to Ajayi, the Leader particularly commended Tinubu on his government’s effort to rescue local governments from the strangulating grip of state governors.

“It’s undebatable that local government is the closest to the people. For, it is through it that the people at the grassroots can effectively feel the impact of the government.

“As the situation is presently however, the tight grip that state governors have on local governments is seriously denying the people of the benefits they should, by right, be deriving from their local governments.

“It’s in this respect that Pa Fasoranti, described the latest step taken by the Attorney General Lateef Fagbemi on behalf of the federal government as a step in the right direction”, Ajayi quoted Fasoranti who is also the Asiwaju of Yoruba, as saying.

While expressing optimism that steps being taken by the government will soon soothe the pains of Nigerians, Fasoranti called on President Tinubu to further look in the direction of infrastructure such as power and transport among others.

“Security is an important factor in any social equation. For, it’s in a situation where people are secured that they would be able to confidently engage in activities that will boost the economy and enhance inter-personal relationships.

“In order to institutionalize reforms being made, accelerate developments, enhance people’s participation in governance and engender the desired new Nigeria, there is the urgent need to restructure the country.

“Restructuring will deepen people’s participation in governance, boost the creativity of Nigerians and guarantee the future of the country”.

The President and Commander-in- chief of the Federal Republic of Nigeria, Bola Ahmed Tinubu will on Wednesday deliver an address at the joint sitting of the Senate and House of Representatives to mark 25 years of democracy/Legislature in Nigeria.

The President is also expected to commission the new National Assembly Library as part of the events slated for the 25 years celebration.

The joint sitting to commemorate Nigeria’s unbroken democracy will be the first of its kind by the National Assembly since the inception of the Fourth Republic in 1999.

The two chambers only sit jointly during the budget presentation by the President. However, Wednesday’s sitting will be historic in the country’s democracy.

This is contained in a statement signed by the Clerk to the national assembly, Sani Magaji.

The statement reads, “President Bola Ahmed Tinubu is expected to deliver an address at the Joint sitting of the National Assembly on Wednesday.”

“The President is also expected to commission the new National Assembly Library as part of the events slated for the 25 years celebration.”

“Also expected to attend the joint session in the national assembly are Vice President Kashim Shettima, Chairman of the Nigeria Governors’ Forum (NGF) and governor of Kwara State, Gov. Abdulrahman Abdulrazaq.”

“The chairman of the Progressives Governors’ Forum, who is the governor of Imo State, Gov. Hope Uzodinma; the Secretary to the Government of the Federation (SGF), Senator George Akume, and the Chief of Staff to the President, Rt. Hon. Femi Gbajabiamila.”

“The Minister of the Federal Capital Territory (FCT), Barr. Nyesom Wike; the Clerk to the National Assembly, Alhaji Magaji Tambuwal, the Senior Special Assistants to the President for both the Senate and the House, among others.”

“There will be commemorative lectures on 25 Years of the National Assembly: Lessons & Opportunities at the joint sitting.”

“While Gbajabiamila, who served as the Speaker of the 9th House (2019-2023) will deliver a paper on ‘Reflections on the House’, Distinguished Senator (Dr.) David Mark, GCON, the President of the 6th & 7th Senate (2007-2015), will speak on ‘Reflections on the Senate.”

“Former Head of State, General Abdulsalami Abubakar, will also deliver a paper on’ Reflections on the Journey to Democracy.”

Governor Alex Otti of Abia State says non-enrollment of school-age children in the state  will now be criminalised.

He warned that parents and guardian who don’t register their children or wards of school age will be seriously penalised. 

He issued the admonition while speaking at Umuahia Township Stadium during the 2024 Children’s Day celebration.

He stated that the policy will receive a legislative backing from the Abia State House of Assembly which would prescribe a penalty for offenders.

“From now on it is an offence for any child that is of school age not to be sent to school. 

“We are going to back that up with a legislation and that legislation will prescribe penalties for any parent who refuses to bring out his child for education,” he said.

He also disclosed that there will be scholarship for children whose parents are financially disadvantaged, to ensure that every child of school age goes to school, promising that no child in the state would be marginalized or molested.

He further abolished payment of levies for special books by students of the school for the blind, Afaraukwu, and donated a bus to them.

The governor, who broke down in tears at Umuahia Township Stadium while taking salute from pupils, said he was pained by the plight of the children with special needs like the deaf.

He apologized to Abia children for the past administrations which owed teachers salaries and environments left to rot.

The House of Representatives has announced plans to investigate allegations of widespread financial misappropriation in the Federal Ministry of Women’s Affairs.

Hon. Kafilat Ogbara, Chairman of the House Committee on Women Affairs, disclosed this during an investigative hearing regarding petitions from contractors. The petitions concern the payment of N510 million to contractors who did not participate in the bidding process. This hearing was convened by the House Committee on Procurement, chaired by Hon. Unyime Idem.

At the hearing last Tuesday, Hon. Unyime Idem presented the petitions to the Minister, addressing the issue of the N510 million payments to non-participating contractors.

He said: “The matter that brought all of us here this afternoon is about a petition that was brought to us last month. The petition is about some projects in your ministry to the tune of N510 million that were bidded and subsequently award letter was given to the bidders, that is the contractors.

“But surprisingly, while some of the contractors according to their claims said they have executed the projects and some said they were still waiting to get mobilisation from your Ministry to enable them execute the projects, they were shocked to know that some of those projects were already paid for by the Ministry of Finance.

“From their discoveries, when they visited the Ministry of Finance and they found out that while either the money they spent to execute the contracts were not paid or the request they made in your Ministry asking for mobilisation was not paid and the Ministry told them that all those projects we’re paid for.

“And unfortunately they paid into the wrong account. What I mean by wrong account is that the people they paid the money to or the contractor they paid the money to, did not take part in the bidding process they were not given award letters but were surprised too that the money were paid to the account that did not take part in the entire procurement process.

“So, the contractors numbered about 10 came to the National Assembly to protest of irregularity that is going on regarding the process. In fact, they described the process as procurement fraud, that it’s incumbent upon the Committee in charge of Procurement to come to their rescue by asking the Ministry to reverse the N510 million from the wrong accounts that the money were paid to, to their own accounts.

“Because they claimed that some of them have already done the job while some said that ‘wait they are waiting for mobilization’. So, that’s why we are here,” the lawmaker noted.

Idem further disclosed that the Committee has written the office of the Accountant General, to furnish this Committee with the position of this alleged malpractice or fraud that is rocking this particular contract. We wrote to that office and they have given us the details of the payment they have made in respect to the projects in question.

“So, we have those documents with us here, so we’d like to hear from you because I think the last time we met I gave the Ministry the assignment to contact the Ministry of Finance and Accountant General to confirm if the documents submitted to us are anything to rely on in terms of being the evidence before this committee.

“So, I don’t know whether you have been able to confirm what we sent to you or whether you have gotten independent information regarding these transactions?”

Hon. Udem also affirmed that there are some of the aggrieved contractors present during the investigative hearing.

In her intervention, Chairman, House Committee on Women Affairs, Hon. Ogbara who expressed displeasure over the inordinate attitude of the Minister to the Committee, argued that she has not been cooperative despite all efforts made to synergize with her.

She said: “I’ve got so many petitions already against her. Even the people working with the Ministry, have complained that she works alone.

“Apart from the excuse she has given that she wants to try and get her people to come with her, the Perm Sec and relevant personnel that need to appear before this Committee, I will just want to appeal to the chairman to give her time, not too long because we also inviting her from the Committee on Women Affairs very soon.

“The notice is already out, I don’t know whether they’ve sent it to her office. So, we also invited her, because I don’t understand, I have been trying to work cordially with her as a woman. As women supporting women, we should work together, but when you’re trying to work with somebody and the person is not even trying to learn or trying to work in the way you expect.

“Now, there are so many petitions, diversion of money, misappropriation of funds, people’s jobs in the Ministry. You just misappropriate paned the money, anyway, anyhow from all the complaints that we have got, so we are going to invite her from the Committee as well, and I want the Chairman to choose the nearest day possible.

“All the personnel she’s talking about, they are right there, they are indoors in the Ministry, if you want them to come tomorrow morning, they should be here. Even when the Committee went to the Ministry on oversight, they didn’t have records to show and they were just mixing up different things, with different terminology, misappropriated a lot of funds for different projects, they used the same name just turn it to another name, you know, duplication of contracts and all that. I can go on and on,” Ogbara lamented.

In response to the inquiry, Minister of Women Affairs, Mrs. Uju Kennedy-Ohaneye said: “after we came here the last time, the information given by the Accountant General’s office was wrong, they gave you totally wrong information.