Bishop of the Anglican Diocese of Oru, Rt. Rev. Geoffrey Chukwunenye has raised the alarm that “Nigeria is gradually sliding into a total collapse and the government appears to have lost every idea on how to stop the slide.” 

The alarm was part of the 77-page presidential address he delivered, weekend, during the first session of the sixth synod of the diocese, held at St. Bartholomew’s Anglican Church, Nempi, Oru West local council area of Imo State.

His words: “The nation, Nigeria, is gradually sliding into a total collapse. The present government seems to have lost every idea on how to stop this downward slide and revamp the economy. 

“Everything now looks like trial and error, or if you like, a case of try your luck. All the policies that are being churned out by the policymakers seem to be aimed at harming the people more.

“They all smear wickedness in content and outlook. A very good example is the increase in the electricity tariff to whatever percentage, they have pushed down our throats.

“From our experience in this part of the country, it is purely an increase in the darkness tariff. We have been here for the past 16 years as a diocese but in all these years, we have never enjoyed electricity for 20 minutes.

“All these times, we have only run on diesel and fuel. Now, the diocese has been sent a bill based on the increased tariff.

“The distribution company is insisting that the diocese must pay with or without supplying electricity or face the unsavoury consequence of disconnection.

“The question I have not ceased to ask the distribution company and government, which they have not answered is: Is it fair to the citizens to pay for darkness instead of light? 

“I think that the proper thing for this government and its distribution and generating companies should have done first is to ensure a steady supply of electricity before the increase in tariff. What they have done now is simply anti-people.

“Because the leaders of this country called Nigeria have never cared for the masses, they will always put the cart before the horse. 

“If they have achieved what Geometrics and Professor Barth Nnaji achieved in Aba, and increased the tariff, no sane person will ever complain, rather Nigerians will gladly pay any amount they are asked to pay.

“Let this government listen to the cries of Nigerians and always seek to do the right things for the benefit of the people. We passionately and graciously plead with this government not to kill this nation with taxes.

“As it is said, no nation on earth grows its economy through taxation. Economies are grown through production. This is where the government must focus its policies and energy production.

“A word is enough for the wise; a good and caring government. The government should realize that it is in power for the good and protection of the lives and properties of the citizens.”

Addressing the seeming tension and insecurity in the South East geo-political zone, the bishop said: “We thank some of our brothers for seeing reasons to give up on their anger.

“No matter how genuine and justified their anger is, I believe it is now time for them to calm down completely. This will enable us to rebuild the land and the economy that is almost in ruins.”

The Organised Labour in Nigeria has been urged to shelve its strike action billed to commence on Monday June 3, 2024 across the country.

Making this appeal was Sultan of Sokoto and President General of the Nigeria Supreme Council for Isslamic Affairs (NSCIA), His Eminence Alhaji Muhammad Sa’ad Abubakar, CFR, mni, through a statement circulated to the press by his Media Team Sunday night of June 2, 2024.

The Sultan said that, “The Labour leaders should consider the overbearing effects of the strike action they plan to embark upon in the wellbeing of the same Nigerians, whose interest they are fighting to protect, and therefore shelve the industrial action.”

According to him, the Organised Labour should not at any time be tired of negotiating with government.

“We appeal to Labour not to take the nation through another leg of hardship because that exactly is what will happen, if they make good their plan to go on this strike. They should try to listen to the government while the government should listen to them and both parties arrive at a conclusion that will be beneficial to all Nigerians with the working class inclusive,” he appealed.

Sultan Sa’ad Abubakar said, having been personally involved in such negotiations between the labour and government in the past, he was aware of the fact that the labour leaders are doing what is right making a case of better welfare for their class of fellow workers but that, they should do it in a way that will not plunge the nation into further hardship and difficult situation.

“You are doing what is right for your class of fellow workers but you should do it within the ambit of compassion and see strike always as the last option,” he said.

he Federal Government borrowed N20.1 trillion from domestic investors in the first year of President Bola Tinubu’s administration, representing a year-on-year YoY increase of 117 per cent from former President Muhammadu Buhari’s last year in office, prompting concerns over the impact on the economy including likely additional pressure on inflation, increased debt service cost and higher borrowing cost from businesses.

Analysts noted that the sharp increase in Federal Government’s borrowing has the potential to compound the historic high inflationary trend in the country which may lead to further interest rate hikes by the Central Bank of Nigeria, CBN and by extension increased cost of borrowing for businesses and individuals.

The Federal Government borrows from domestic investors through issuance of FGN Bonds, FGN Savings Bonds, and Sukuk Bonds by the Debt Management Office, DMO. In addition to these are the Nigeria Treasury Bills, NTBs, issued by the CBN on behalf of the FG.

Analysis of data from the DMO and CBN showed that in the 12 months ending May 31st (June 2023 to May 2024), also the first year of Tinubu as president, the FG borrowed N20.09 trillion through these instruments, representing YoY increase of 117 per cent from the N9.275 trillion borrowed in the previous 12 months, namely June 2022 to May 2023.

Most of the increase in borrowing was through the NTBs auctions conducted by the CBN, which also constituted 66 per cent of FG’s domestic borrowing during the period.

Borrowing details

According to data from CBN, FG’s borrowing through NTBs rose YoY by 188 per cent to N13.235 trillion in the 12 months ending May 2024 from N4.592 trillion in the 12 months ending May 2023.

FG’s borrowing through the monthly FGN Bond auctions, which constituted 32.8 per cent of total domestic borrowing during the period, rose, YoY by 42 per cent to N6.476 trillion in the 12 months ending May 2024 from N4.537 trillion in 12 months ending May 2023.

FG’s borrowing through Sukuk Bonds, which accounted for 1.7 per cent of total domestic borrowing during the period, rose, YoY by 169 per cent to N350 billion in the 12 months ending May 2024 from N130 billion in the 12 months ending May 2023.

FG’s domestic borrowing through FGN Savings Bonds accounted for 1.5 per cent of total borrowing during the period, also spiked, rising YoY by 116 per cent to N29.17 billion in the 12 months ending May 2024 from N16.07 billion in the preceding 12 months ending May 2023.

Interest rate hike

Among other things, the 117 per cent YoY increase in FG’s domestic borrowing in the 12 months ending May 2024 was driven by investors’ response to the high interest rate regime during the period following hike in the Monetary Policy Rate, MPR by the CBN.

Analysis showed that the average MPR rose to 20.32 per cent in the 12 months ending May 2024, representing 4.11 percentage points increase from 16.21 per cent in the preceding 12 months ending May 2023.

As a result, the average interest rate on NTBs rose to 9.1 per cent in 12 months ending May 2024, representing 5.1 percentage points from 4.0 per cent in the preceding 12 months ending May 2023.

In the same vein, the average interest rate on FGN Savings Bond rose to 17.91 per cent at the May 2024 auction from 10.89 per cent at the May 2023 auction.

Analysts’ comments

Notwithstanding the influence of the high interest rate regime, analysts expressed concern that the sharp rise in FG’s borrowing from domestic investors is harmful to the private sector as it makes it costlier for businesses to borrow.

The analysts were however divided on the impact of the borrowings on inflation.

Commenting, Co-Founding Partner, Comercio Partners, a Lagos based investment bank, Nnamdi Nwizu, said: “The increase in borrowing by the government means that there will be more spending by the government, which will have a huge impact on inflation as it will drive demand for goods. Governments are always the largest spender in the world, so the more money they spend, the higher the attendant inflationary pressure. Note also that since they are borrowing at record levels, it means that when they are servicing the debt, they will put a lot more funds in the hands of the public.

“Lending to the Private Sector has been impacted with corporates issuing bonds and Commercial Papers at record levels.

“Whilst we continue to see a lot of issuances by the private sector (above 25% yields), we also see that the smaller corporates are struggling as the government is crowding them out. If an investor can invest in one year risk-free NTBs at 25% yields, they would naturally ask for a premium when lending to the private sector. How many companies can afford to borrow at these steep levels and still be profitable? Also, the higher lending rates will lead to inflationary pressures as the corporates have to increase prices to cover for the higher borrowing rates.

“With respect to fiscal policy, we are yet to see the borrowing by the government have an impact on fiscal policy. Yes, we have the Coastal roads being built, but we would like to see more with regards to policies to help increase production output in the economy. Also, we expect to see a significant increase in debt servicing costs, factoring in the higher rates and increase in domestic borrowing.

“With respect to monetary policy, whilst the Central Bank continues on its hawkish trend, we expect pressure from the government on the Central Bank as its debt service costs rise. The government cannot afford to borrow at these levels for an extended period of time. Government spending can also lead to more pressure on the currency as it means more Naira available to chase the greenback.”

Similarly, Head of Equity Research, FBN Securities Limited, Tunde Abidoye, said: “Government borrowing could potentially fuel inflationary pressures. In addition there’s an indirect effect on exchange rates. Also, there’s the crowding out effect for private sector lending. As it is, not many businesses can afford to borrow at the elevated interest rate. Finally, the monetary policy response to all this may be to continue to raise interest rates in a bid to tame the spiraling inflation.”

However, Chinazom Izuorah, Senior Associate, Investment Brokerage, differed on the impact of the FG’s domestic borrowing on inflation, though she also noted it will make it costly for businesses to borrow.

She said: “The Federal Government’s domestic borrowing program has not changed in the last year. The government’s calendar for offering FGN bonds, savings bonds and Treasury bills remains consistent and in line with historical practice.

“The reason for the increase in value is due to the increase in MPR and the knock-on effect on interest rates for the FGN securities.

“At interest rates of 17% and above, the government’s instruments are more attractive than in the previous year and consequently there is increased interest and participation. This is also consistent with the CBN’s objective of reducing inflation by mopping up liquidity. In simple terms, higher interest rates create an incentive to save.”

She stated the impact of this in terms of inflationary pressure is that with the greater incentive to save, there will be less money in circulation which is crucial to limiting inflation.

“In terms of lending to the private sector: Higher interest rates on government securities, which are considered the safest instruments, is a disincentive to lending to the private sector, which is considered riskier.

“Money tends to fly to safety. Banks, other financial institutions and fund managers have little incentive to take-on riskier assets when they can get attractive returns lending the funds to the government.

“On the fiscal policy front the government uses the funds raised through the issuance of securities to fund the national budget. The present administration has earmarked a significant portion of the budget to capital expenditures, portions will also be used to fund recurring expenditures and debt service.

“The higher interest rates mean that the government is paying a higher rate to investors.

“However domestic borrowing is more sustainable than external borrowing as the monies are borrowed in the local currency. Governments look to external borrowing due to lack of capacity to meet funding needs from the domestic market.

“There is a lot of benefit to having a financially literate citizenry and high domestic savings rates. The most critical issue for Nigeria and Nigerians is that monies are judiciously employed for the purposes they are raised and projects executed efficiently.

“The increase in domestic borrowing values is indicative of the success of the administration’s monetary policy positioning.

“It can be assumed that the sustained rise in the MPR has been favorably received by the market and has stimulated increased participation in the domestic bond market.”

The Nigeria Labour Congress (NLC) has declared an indefinite nationwide strike starting on Monday, June 3, 2024, due to the Federal Government’s refusal to increase the proposed minimum wage above N60,000.

Despite the government’s final offer of N60,000, which included a recent increase from an initial N57,000, the labour unions found the proposal insufficient, setting a new proposal at N494,000.

The Evolution of Nigeria’s Minimum Wage

The concept of a minimum wage in Nigeria dates back to the 1950s. The late Chief Obafemi Awolowo, as Premier of the Western Region, implemented the first minimum wage policy in 1954. Western Nigerian workers received a minimum wage that was double the amount paid to their counterparts in other regions. This initial wage policy set a precedent and sparked ongoing discussions about fair labor compensation in the country.

Following Nigeria’s independence in 1960, the push for a national minimum wage continued. In 1959, Awolowo, then the President of the Action Group, campaigned vigorously for a five-pound minimum wage for federal workers. Although he lost the 1959 elections to Sir Abubakar Tafawa Balewa, the issue of a national minimum wage remained a significant political agenda.

The First National Minimum Wage Law

The first National Minimum Wage Law was enacted by President Shehu Shagari in September 1981, spurred by the advocacy of the Nigerian Labour Congress led by Hassan Sunmonu. The law set a minimum wage of 125 naira per month, equivalent to approximately US$204 at the time.

Subsequent Revisions

Over the years, the minimum wage has undergone several revisions:

2000: Increased to N5,500.

2011: Under President Goodluck Jonathan, it was raised to N18,000.

2019: The National Minimum Wage Act signed by President Muhammadu Buhari established a new wage of N30,000 per month.

The Current Debate

In January 2024, the federal government formed a 37-member tripartite committee to review the National Minimum Wage. However, the committee has not yet reached an agreement. The NLC and Trade Union Congress (TUC) have set a deadline of May 31 for the government to establish a new wage policy. The unions are demanding a minimum wage of at least N60,000.

Some states have unilaterally announced new minimum wages. For example, Edo State approved a new wage of N70,000 effective May 1, 2024, while Lagos State has been paying a wage award of N35,000 since January 2024.

The discussions about the minimum wage are fraught with tension, particularly between state and federal governments. State governments often argue they cannot afford higher wages, while the federal government usually proposes higher rates. This discord reflects a long-standing issue in Nigeria’s wage policy, where economic realities and political promises often clash.

The leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), have insisted on proceeding with the indefinite strike action scheduled to commence on Monday, 3rd June, 2024.

This is as the leadership of the National Assembly led by Senate President Godswill Akpabio called for a return to the negotiation table.

Naija News recalls that the labour leaders and the government delegation held a meeting on Sunday as part of last-minute efforts to avert a nationwide strike over the new minimum wage.

However, the organized labour said after the meeting, which lasted for about four hours, that their planned indefinite strike action over the new minimum wage would proceed as scheduled.

The unions added that they would meet and discuss the appeal made by the leadership of the National Assembly on the need to suspend the proposed strike and allow for more dialogue with its organs before taking a final decision.

During the meeting, the President of the NLC, Joe Ajaero, underscored the essence of the meeting, stating, “We are not fighting for a starvation wage but a living wage.”

Ajaero highlighted that the government must recognize the workers as the backbone of the nation. These workers are also relatives and constituents of the lawmakers and ministers present.

He emphasized the urgent need for a wage structure that enables Nigerian workers to meet the escalating cost of living without undue hardship.

Meanwhile, TUC’s leader, Festus Osifo, pointed out the exacerbating economic difficulties faced by Nigerians, particularly over the past year, which have complicated the process of negotiating fair remuneration for workers.

In a crucial meeting held in Abuja, leaders of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) convened with top government officials and the leadership of the National Assembly in a last-ditch effort to forestall the indefinite nationwide strike slated to commence on Monday, June 3.

This intervention by the National Assembly seeks to bridge the impasse between labour unions and the federal government over the contentious issues of a new national minimum wage and the recent increase in electricity tariffs.

The President of the NLC, Joe Ajaero, underscored the essence of the meeting, stating, “We are not fighting for a starvation wage but a living wage.”

Ajaero highlighted that the government must recognize the workers as the backbone of the nation. These workers are also relatives and constituents of the lawmakers and ministers present.

He emphasized the urgent need for a wage structure that enables Nigerian workers to meet the escalating cost of living without undue hardship.

Meanwhile, TUC’s leader, Festus Osifo, pointed out the exacerbating economic difficulties faced by Nigerians, particularly over the past year, which have complicated the process of negotiating fair remuneration for workers.

Osifo noted that the dire economic conditions demand immediate and thoughtful responses to prevent further deterioration of workers’ welfare.

The meeting, initiated by the National Assembly, aimed at bringing both sides to a consensus to avoid the impending strike which could cripple economic activities across the nation.

A host of government offices, buildings, and institutions risk being thrown into darkness if they fail to settle their electricity bills before the deadline issued by the Abuja Electricity Distribution Company (AEDC).

According to the AEDC, the affected buildings are owing huge electricity debts which have accumulated over time.

Power House building, located in the Maitama District of Abuja, which houses the office of the Minister of Power, Adebayo Adelabu, is part of the building listed in a notice of disconnection issued by the AEDC.

More than 20 other government institutions risk disconnection, according to the ultimatum issued by the distribution company in a statement addressed to its customers on Friday, 31st May.

The acting Managing Director of AEDC, Victor Ojelabi, in a statement, said the deadline for all outstanding payments is Monday, June 3, 2024.

Below is the full list of customers owing AEDC as released by the Disco:

1. Nigeria Army
2. Nigeria Airforce
3. Defence Headquarters (HQ)
4. Federal Capital Development Authority
5. Kogi state government
6. Niger state government
7. Nigeria Police Force HQ
8. Nigerian Army Barracks
9. Federal Ministry of Industry
10. Nigeria Police Force HQ
11. Nigerian Army Barracks
12. Power House
13. Office of the Secretary to the Government of the Federation (SGF) House 1
14. Head of Service
15. Ministry of Education
16. Ministry of Women Affairs
17. Ministry of Industry
18. Ministry of Trade
19. Ministry of Interior
20. Ministry of Water Resources
21. National Stadium
22. Goodluck Jonathan Athletics Hall
23. Ministry of Finance
24. Ministry of education
25. Ministry of Trade
26. National Planning Commission (budget)
27. Ministry of Works
28. Federal Airport Authority of Nigeria (FAAN) Abuja.

The former governor of Sokoto State, Aminu Tambuwal has urged President Bola Tinubu to desist from disassociating himself from the tenure of his predecessor, Muhammadu Buhari.
Tambuwal insisted that Tinubu must stop his ministers and aides from castigating Buhari’s administration.

The former governor stated this during the stakeholders meeting of the Peoples Democratic Party (PDP) in Sokoto State on Sunday.

He argued that the All Progressives Congress (APC) has no plans to secure the country and are more interested in grabbing power.

He said, “The same Tinubu government that has failed to secure Nigerians, and bring development is now lamenting and disassociating themselves from Buhari’s administrative failure.

“There’s no reason for President Bola Ahmed Tinubu to allow his aides or ministers to be castigating and attacking past APC government under Muhammadu Buhari which he has tremendously benefitted from as a member of APC.

“President Tinubu should face the governing of Nigeria with serious minded attention and not allow certain myopic tendencies in his government to destroy his good plan on securing of our nation and bringing cohesion and development to our country if at all he is ready.”

Speaking further, Tambuwal advised PDP supporters in the state not to be discouraged about the happening in the country, instead to unite and ensure political understanding amongst themselves.

“Nobody can change our country like determination and commitment to good cause as we are all known for, our party supporters should be united in bringing such to the party progress

“You have been in the vanguard of change and political unity, this will be your guiding principles of peace and political unity with discipline and respect to everybody in the party” he added.

In compliance with an earlier directive of an indefinite nationwide strike by organised Labour, the aviation unions have directed members to withdraw services across airports in Nigeria.

THE WHISTLER had earlier reported that NLC and its counterpart, the Trade Union Congress (TUC), declared an indefinite nationwide strike starting Monday, June 3, 2024.

The unions confirmed the strike in a joint statement signed by the General Secretaries National Union of Air Transport Employees (NUATE) Ocheme Aba; Air Transport Services Senior Staff Aassociation of Nigeria (ATSSSAN) Frances Akinjole; Secretary General Association of Nigerian Aviation Professionals (ANAP) Olayinka Abioye and General Secretary the National Association of Aircraft Pilots and Engineers (NAPE) Olayinka Abioye.

The statement reads, “In compliance with the directive from our labour leaders, Nigeria Labour Congress and Trade Union Congress of Nigeria-we hereby inform the general public, aviation service providers, airline operators, aviation businesses and all aviation workers nationwide that starting from 0000hrs of June 3, 2024, all services at all Nigerian airports shall be fully withdrawn till further notice.

“Being not oblivious of the fact that many international flights to Nigeria are already airborne, the strike action will commence at international terminals on 4th of June, 2024.

“All aviation workers should recognize the seriousness of this struggle and comply unfailingly. All Branch officers of our unions shall ensure full compliance at all airports.”

Some Nigerian women have narrated the huge economic challenges confronting them in sustaining homes.

The women expressed their views in separate interviews with the News Agency of Nigeria (NAN) in Lagos on Sunday.

A Mother of four, Mrs Abiola Dipeolu, said that presently, the family spent a lot of money to keep the home going.

People Talk: On sale of new Naira notes at Nigerian parties0:00 / 1:00
Dipeolu said that when she newly got married, she usually saved some money from the monthly allowance she received from her husband.

She said that the reverse was the case now, saying that what she received as feeding allowance hardly sustained the family for two weeks.

“I have to wake up as early as 4.00 a.m. to begin the hustle for the day and close by 6.00 p.m.

“Marriage is boring and uninteresting because the time for husband and wife to be together has been put into hustling” she said.

A Mother of three, Mrs Ronke Adu, said that she could not remember the last time she got financial support from her husband.

Adu said that the financial responsibilities had been shared and each of them took up his or her responsibilities.

She said that the present economic challenges had rendered some husbands mere figure heads in spite of the energy they put up on daily basis to make ends meet.

She noted that she had to do menial jobs like sweeping of compounds, cooking soup for the elderly and home cleaning on daily basis to make ends meet.

Expressing her views, a Mother of two, Mrs Busayo Adamolekun, said that she was a fashion designer by profession but when the reality dawned on her, she dropped her working tools and ventured into food selling.

Adamolekun said that food was one of the businesses now thriving.

She said her husband had to join the food business and closed his business centre because he no longer received patronage.

She said that some women took up the main financial expenses at homes, while their husbands only rendered support.

A Civil Servant and a Mother of three, Mrs China Okeke, said that it was a pity that the economy turned this way.

Okeke suggested that managing the home financially needed prudence.

“As a civil servant, I had to obtain loans to keep the home going,’’ she said.

She explained that the take-home pay was not enough.

A Grandmother and Pastor, Mrs Adefunke Clement, said that many women came to the church for financial help.

Clement said that there was no day a woman would not come to the church soliciting for meal.

She said that before now, the church used to have philanthropists who donated voluntarily, saying that now the church authorities had to announce before getting few donations.

“Women are going through a lot to put food on the table.

“Some go into four or five menial works on daily basis to keep the home going,’’ she said.