…says trial- and -error economics failing

 
 

 

Former Vice President, Atiku Abubakar, has urged President Bola Tinubu to stop deceiving Nigerians about his administration’s true position on fuel subsidy.

 

Atiku said this in a statement, in Abuja, yesterday.

He explained that contrary to the President’s public posturing about removing fuel subsidy, the Tinubu administration has been secretly paying trillions of Naira as subsidy on Premium Motor Spirit (petrol).

The former Vice President who was the Presidential candidate of the Peoples Democratic Party (PDP), in the 2023 election, noted that subsidy payments under Tinubu’s watch is likely to hit N5.4 trillion this year (2024).

Atiku said, “President Bola Tinubu, at his inauguration on May 29, 2023, announced the abolishment of the subsidy on PMS, popularly known as fuel.

“Ever since, it has been a bragging right of Tinubu and officials of his administration.

“I had in my statement reviewing the one year of the Bola Tinubu administration urged the government to come clean on the actual position of the subsidy policy.

 

“These were my exact words: “…provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact of this on the Federation Accounts.

“It is curious that since April 2024, fuel queues have mounted at many filling stations across Nigeria, and the infamous ‘black market’ has sprouted in several states.

 

“How much PMS is being imported and distributed, and at what cost? What is the implicit subsidy?”

“If the subsidy regime had been characterised by opaqueness, what would we say of a situation where the subsidy is still being paid under the cover without Nigerians in the know?

“Like millions of Nigerians, I was shocked to learn through media reports that
the “government is still supporting downstream consumption.”

 

“Now we know that expenditure on fuel subsidy may reach N5.4 trillion in 2024, compared to the N3.6 trillion spent in 2023, the same year that Tinubu claimed to have abolished fuel subsidy

 

“I wish to restate that Nigeria is not working, and what we have had in a little over a year is a cocktail of trial-and-error economic policies. Paying subsidies and lying about it is nothing to brag about. Nigerians deserve better than this deception. “

The Nigerian government has said the turnover of Binance, a cryptocurrency platform, surpassed $20 billion from activities in Nigeria, yet the firm paid zero tax to the country.

The Minister of Information and Orientation, Mohammed Idris disclosed this in a statement on Wednesday while reacting to the allegation that two Binance executives Tigran Gambaryan and Nadeem Anjarwalla were illegally held in custody in Nigeria.

The Minister clarified that the two executives, although one is currently at large, were held for fueling currency speculation and operating non-registered business activities in Nigeria. 

“It would be recalled that Binance had a turnover in Nigeria of over US$20 billion in 2023 alone, far above the federal budget for health and education, fueling currency speculation and the cost-of-living crisis.

“In addition, it is not registered in Nigeria and neither has it ever paid any taxes within the Nigerian jurisdiction, having all the while operated without oversight or any of the normal guard rails to flag criminal activity”, he said.

Recall that on February 28, Gambaryan and Anjarwalla were arrested by the Nigerian government on the allegation of currency speculation.

Anjarwalla was confirmed to have escaped custody in March.

In April, the Nigerian government arraigned Gambaryan in court for tax evasion and other charges bordering on money laundering.

Anjarwalla, though on the run, was joined in the suit with Binance.

In the federal high court in May, Gambaryan was denied bail and was ordered to be kept in Kuje Correctional Centre pending the recommencement of his trial.

Meanwhile, in a recent unfolding of the trial, Aluko & Oyebode, the law firm handling the case of Binance Holdings Limited, said Mr Tigran Gambaryan may die in custody in Kuje prison and called for his release.

Negotiations on the new national minimum wage hit a snag yesterday as the Federal Government’s negotiating team failed to present a new offer beyond the previously stated ₦60,000.

This development follows President Bola Tinubu‘s directive on Tuesday to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to finalize the cost implications of the new minimum wage and submit an affordable, sustainable, and realistic proposal.

The President had emphasized the urgency of the matter, mandating that the government’s new offer be ready by Wednesday to serve as a basis for resumed negotiations with Organised Labour.

This instruction was part of a broader call to expedite all processes involved in the discussions to reach a timely conclusion.

However, during the negotiation meeting that resumed at 3:30 pm on Wednesday, it became apparent that the government team was not ready to present a new proposal.

Sources close to the negotiation table told Vanguard that the government’s absence of an updated offer limited progress in the talks.

A source at the meeting said: “The meeting was adjourned to give the Minister of Finance time to meet the deadline given to him by the President to present cost implications to him.

“We just deliberated generally and then they (the Federal Government team) said we needed to adjourn because they needed to get to the President. You know he (President Bola Tinubu) gave them an ultimatum to give him the cost implications.

“So we could understand that they did not have anything to give us since they had not given the President the cost implications. Those present at the meeting were the Minister of Finance, Minister of Budget and Economic Planning and the Minister of State for Labour. So, we will be resuming negotiation tomorrow (today) by 2pm.”

On whether the Finance Minister gave any assurance of getting the President’s mandate before today’s meeting, the source said: “They do not have a choice, we are not bothered about them. We do not think they have a choice because they cannot disobey the President.

“If they decide to disobey the President or if the President decides to renege on his promise, we all know the consequences.”

[NaijaNews]

Six people have been rescued while 14 other miners are still being trapped, two days after a mining pit collapsed in Galadima-Kogo, Shiroro Local Government Area of Niger State.

Daily Trust could not independently establish if the six people rescued were alive or dead.

The permanent secretary, Niger State Ministry for Mineral Resources,  Alhaji Yunusa Mohammed Nahauni, blamed the management of the mining company for the collapse.

During a visit to the site of the tragedy where one person was reported dead on Tuesday, the commissioner said the collapse was due to lack of compliance and synergy between the mining company’s management and the community.

He said the governor earlier directed the suspension of all mining activities in the state and ordered a crackdown on illegal miners due to increasing security concerns.

He said, “The governor, through the ministry, had issued letters to all the emirates, instructing them accordingly,” warning that failure to adhere to his order would result in penalties.

He also urged the site engineer to consistently follow mining principles and operational guidelines to prevent future incidents, emphasising that safety should always be prioritised.

The ministry gave the names of the 14 victims being trapped as Abdullahi Yahaya, Ibrahim Mansir, Abubakar Isah, Friday Musa and Godwin Hussaini.

 

Others are Benjamin Ashafa, Zayyanu Ibrahim, Abdul Ali, Hamza Musa, Umar Abubakar, Joseph Madaki,  Ibrahim I. Ishiaku Kuta,  Abbas Musa and  Yakubu Mamman

While the State Emergency Management Agency had earlier said that 30 people were trapped, one person was killed and seven others rescued but severely injured, some locals said the number of miners trapped were more than the figures given by the authorities.

The police public relations officer, Niger State command, SP Wasiu Abiodun, in a statement, attributed the difficulty in rescuing the victims to lack of equipment.

[DailyTrust]

Former spokesman for the Atiku Abubakar/Ifeanyi Okowa presidential campaign in the 2023 presidential election, Daniel Bwala has said that his support for President Bola Tinubu is not for better for worse.

Bwala said he would easily work away if the President goes against the constitution of Nigeria and democratic Ideology.

He said this during an interview on Arise TV on Wednesday, insisting he had a good time with Atiku Abubakar but had to shift his support to Tinubu when it was clear the presidential election was over.

Bwala who was a strong supporter of former vice president Atiku, said, “It was nice that I supported former vice president Atiku and for the period I supported him, I gave my all but when I made a decision to support President Tinubu, it is just owing to the fact that the elections are over.

“We all know the problem we are in and if you’re privileged to have an attention of somebody who is now the sitting president who didn’t meet you in the first place but he felt that you have something to offer and said ‘Come and be a part of what we are doing in this government, let us see how you support good governance’, I feel it’s an honour.

“And don’t forget I was Asiwaju’s loyalist before. I changed party to Atiku, it is not a situation of going back to somebody you don’t know, I have always believed in him.

“The only thing that will make me withdraw my support for President Bola Tinubu is if he goes against the constitution of Nigeria and goes against democratic ideology but I do not see that happening because President Bola Ahmed Tinubu is on course.

“He is redefining the structure of our foundation and economy and I know that the decisions are hard, but they are definitely decisions that are going to work at the end of the day.”

[DailyPost]

The Federal Government and Organised Labour on Wednesday adjourned the minimum wage talks till Thursday (today) when the negotiation is expected to continue.

The Tripartite Committee on National Minimum Wage postponed the session in anticipation of the Minister of Finance, Wale Edun, submitting the salary template to President Bola Tinubu today.

Tinubu had on Tuesday directed the finance minister to present the cost implications for a new minimum wage within two days.

The President gave the order at a meeting with the government negotiation team led by the Secretary to the Government of the Federation, George Akume, at the presidential villa in Abuja. 

Sources in the labour unions privy to the committee meeting said the parties decided to await the outcome of the presidential template before proceeding with further negotiations.

A source who attended the meeting said, “The meeting has been adjourned until Thursday. We showed understanding because we all know that the president gave the minister of finance 48 hours to come up with a minimum wage. So, we decided to give them the time. We will be meeting by 2 p.m.”

A top labour official who is a labour representative on the tripartite committee explained that the template was crucial to the minimum wage negotiation.

The source, who cannot be quoted because he was not authorised to disclose information to the media on the negotiation, expressed confidence that the talks would record good progress once the presidential template is presented to the parties.

The Minister of Information and National Orientation, Mohammed Idris, had hinted that the President wished to know the financial implications of the new minimum wage in 48 hours.

Briefing journalists on the presidential directive, the information minister said, “We were all there to look at all issues, and the President has directed the minister of finance to do the numbers and get back to him between today and tomorrow so that we can have figures ready for negotiation with labour.”

Idris assured of the president’s readiness to accept the committee’s resolutions, adding that “The president is determined to go with what the committee has said and he’s also looking at the welfare of Nigerians.

“Government is not against or opponent of labour discussions; the government is not an opponent of wage increase, but what is there is that government is always there to ensure a balance between what government pronouncement is and what the realities are on the ground.

“And therefore, we will work assiduously to ensure that whatever promises the government makes are promises that will be kept. That is the idea of this meeting.”

Furthermore, he said Tinubu directed the government representatives to work collectively with the organised private sector and the sub-nationals to achieve a new affordable wage award for Nigerians.

Idris explained, “The President has given a marching order that all those who have negotiated on behalf of the Federal Government and all those who are representatives of organised private sectors, the sub-nationals to come together to have a new wage that is affordable, sustainable and  realistic for Nigerians.

“The wage is not just that of the Federal Government; as I mentioned earlier, the sub-nationals are involved, the organised private sector is involved; the Labour stepped out during that procedure. Now we have come back to the negotiation table.”

The minister assured that all hands would be on deck to present a new minimum wage for Nigerians in one week.

“All of us will work together assiduously within the next week to ensure that we have a new wage for Nigeria that is acceptable, sustainable and realistic,” Idris said.

Despite the intervention of the leadership of the National Assembly, labour embarked on a nationwide strike on Monday and Tuesday, crippling economic activities nationwide.

Banks, airports, public schools and courts were shut, forcing the Federal Government to convene an emergency meeting to find a way out of the impasse.

Following a meeting with the SGF, National Assembly leaders, and the National Security Adviser, Nuhu Ribadu, on Monday, the unions announced on Tuesday the suspension of industrial action for five days after President Tinubu agreed to pay a national minimum wage higher than N60,000. The tripartite committee pledged its readiness to convene daily until a new minimum wage is announced.

 

In an interview on Channels television, the President of the Trade Union Congress, Festus Osifo, said the unions would not insist on its N494,000 demand, indicating that the labour leaders were willing to accept a reasonable compromise.

 

Though the union leader refused to mention a specific amount, he said the new minimum wage must equal purchasing power to the value of N30,000 in 2019 and N18,000 in 2014.

Meanwhile, airlines lament the revenue loss incurred during the two-day strike declared by the labour unions.

The action forced airports to shut down, resulting in scores of cancelled flights and huge financial losses.

The Chief Operating Officer of United Nigeria Airlines, Osita Okonkwo, highlighted the severe impact of the strike on UNA’s operations.

He said, “For two days, we didn’t fly. Ours (revenue loss) runs into millions. We do about 24 flights every day, and for two days, we didn’t do 48 flights. I can tell you it runs into millions.

“Our passengers were continuously informed of the situation. Our call centre was busy 24/7. The fallout now is what do we do with passengers who want to continue with their businesses because they have lost two days and all want to travel tomorrow (today)?

“And then, we have passengers booked to travel tomorrow (today). We are trying to accommodate as many as we can. Where possible, we put in additional flights. But you know capacity, you can’t stress it too much. Most flights are full now because of what happened in the last two days. It is not like we are against the strike, but everybody is feeling the situation of the country.’’

Okonkwo canvassed that essential services should be exempted from strikes, lamenting the plight of stranded passengers.

“It is understandable what labour is doing. But essential services should be exempted from this type of strike. Hospitals, and air travel, because some people had connecting flights. Some were stranded in Asaba, and they were supposed to go to Europe,” he noted.

The Chief Operating Officer of Ibom Air, George Uriesi, also expressed concern over the financial losses recorded by the local airlines during the labour action.

“There was a massive loss of revenue. If you were going to take N100 of revenue a day, and you don’t fly at all, you will probably make N2 or N3. And then there’s more to it because we must accommodate all the people that didn’t fly. So, you may be unable to sell seats for a long time because you’re dealing with a backlog,” he explained.

The Assistant General Secretary of the Aviation Round Table, Olumide Ohunayo, emphasised the strike’s broader impact on the aviation industry.

“It’s not only the airlines. The aviation industry lost lots of money due to the strike. The airlines,  airport terminals, concessionaires, taxi drivers, and others. In fact, the entire ecosystem lost millions of naira, even the charter flights.

“Some flights were cancelled. People are now forced to reschedule flights and see if they can get seats on a future date. And in getting those seats, ticket prices have jumped due to the rush to get seats.” he stated.

Pointing out the long-term economic effects on the aviation sector, the Chief Executive Officer of Centurion Security Limited, John Ojikutu, said, “The domestic airlines will lose some money, and that will affect the economy. The kind of money I’m talking about is not coming from local airlines because they contribute virtually nothing. If you compare the money they make from ticket sales to the money we make from foreign airlines, that is where the problem is.

“In the next two, three days, they would have cleared all those passengers, and we would now go back to our normal aviation problems, which are fuel and ticket fares,” he said.

Speaking on the long-drawn minimum wage negotiation, Debo Adeniran, the Executive Director of the Centre for Anti-Corruption and Open Leadership, urged the Federal Government and labour unions to finalise their talks quickly.

“The FG and the labour unions should not waste any more time beyond the 48 hours given to the finance minister. Everything is already concluded; they need to harmonise their positions based on their capacities to raise resources,” Adeniran stated.

Stressing the need for swift negotiations, he noted, “Labour unions and the FG should be realistic, which should not take an eternity to conclude. They should aim to finalise everything by the end of tomorrow (today).”

Adeniran also cautioned the labour unions against rushing to embark on strikes.

On his part, the Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, admonished the government to be honest and realistic during the negotiation.

“The Federal Government needs to be honest and realistic. They should be able to restore dignity in labour. Once the FG is realistic in presenting a minimum wage to Nigerians, there would not be any delay in the meeting with labour unions,” he concluded.

[Punch]

5 June 2024: Lagos, Nigeria: Fidelity Bank Plc (“Fidelity Bank” or the “Bank”) has concluded all necessary arrangements to raise a total of up to ₦127,100,000,000.00 (One Hundred Twenty-Seven Billion, One Hundred Million Naira) by way of a Rights Issue to existing shareholders and a Public Offer (the “Combined Offer”). The Combined Offer is a part of the Bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (“CBN”) on 28 March 2024. Overall, the Bank expects that the capital raised would support the Bank’s efforts to drive sustained growth and diversification of its earnings base.

The Signing Ceremony with respect to the Combined Offer was held at the Board Room of the headquarters of Fidelity Bank in Lagos on Wednesday, 5 June 2024. The Bank's shareholders had already approved the Rights Issue and Public Offer at the Extra-Ordinary General Meeting held on Friday, 11 August 2023. Under the Rights Issue, 3,200,000,000 (Three Billion Two Hundred Million) ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of 05 January 2024, at ₦9.25 per share. For the Public Offer, 10,000,000,000 ordinary shares of 50 kobo each will be offered to the general investing public at ₦9.75 per share. 

Stanbic IBTC Capital is the Lead Issuing House to the Combined Offer, whilst the Joint Issuing Houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited. The Acceptance and Application lists for the Rights Issue and Public Offer are expected to open on Thursday, 20 June 2024 and close on Monday, 29 July 2024. 

At the Signing Ceremony, Managing Director and Chief Executive Officer, Fidelity Bank PLC, Dr. Nneka Onyeali-Ikpe, disclosed that the proceeds of the Combined Offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels. 

The Chief Executive of Stanbic IBTC Capital, Oladele Sotubo, commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer. He lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks. While thanking the Bank for trusting Stanbic IBTC Capital to lead and advise on this landmark transaction, Dele expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs. 

The Rights Circular for the Issue, which contains a Provisional Allotment Letter and the Participation Form, will be mailed directly to shareholders of the Bank. Printed copies of the Public Offer Prospectus can be obtained at the offices of Fidelity Bank and the Issuing Houses during the Public Offer Application Period. 

All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus and, where in doubt, consult your Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.

-ends-

About Fidelity Bank Plc

Fidelity Bank Plc is a full-fledged commercial bank, operating primarily through branches and service centres located across Nigeria, with authorisation from the CBN to operate internationally through branches located in foreign countries. The Bank provides a range of banking and other financial services to over 8.3 million corporate and individual customers from 250 business offices in the country with a total asset base of ₦6.2 trillion, all as of 31 December 2023. The Bank also operates in the United Kingdom through its wholly-owned subsidiary, FidBank UK Limited, located in London.

Financial products and services offered by the Bank include granting of loans and advances, equipment leasing, corporate and trade finance operations, treasury and investment services, retail banking (including current and savings accounts, debit cards, ATM services, electronic banking, agency banking and retail lending), money market activities, private banking/wealth management services, foreign exchange services, funds transfer services, and bank guarantees.

The Tripartite Committee on Minimum Wage has resumed talks over a new minimum wage for workers in the country.

The committee is meeting at NICON Luxury Hotel in Abuja.

DAILY POST reports that the Federal Government is represented by Wale Edun, the Minister of Finance; Atiku Bagudu, the Minister of Budget and National Planning; Nkeiruka Onyejeocha, the Minister of Labour; and representatives of the Secretary to the Government of the Federation, along with the Head of Service of the Federation.

Joe Ajaero, the President of the Nigeria Labour Congress, NLC, and Festus Osifo, the President of the Trade Union Congress, TUC, are leading the organized labour delegation.

Abdulateef Shittu, the Director General of the Nigeria Governors’ Forum, was present at the meeting even though none of the state governors was present at the time of filing this report.

DAILY POST reported that Labour suspended its nationwide indefinite strike on Tuesday after grounding the economy.

The Nigerian government has acknowledged that fuel subsidy expenditures are expected to surge to ₦5.4 trillion in 2024, according to a recent revelation by the Minister of Finance, Wale Edun.

This disclosure was made during the presentation of the Accelerated Stabilisation and Advancement Plan (ASAP) report, which outlines strategies to address critical challenges and stimulate growth across various sectors.

The projected subsidy cost for 2024 marks a significant increase from ₦3.6 trillion in 2023 and ₦2.0 trillion in 2022, highlighting a continuous upward trend in government spending on fuel subsidies.

This revelation comes amidst previous denials from the government regarding the complete deregulation of fuel prices.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, reiterated during a ministerial briefing on the anniversary of President Bola Tinubu’s administration that fuel subsidies had been entirely eliminated.

“I can confirm to you that subsidy is gone; officially, there is no subsidy; I want to make it clear that there is no subsidy in the country today,” Lokpobiri stated.

These statements come after significant policy shifts last year when President Tinubu declared the end of the fuel subsidy, leading to a hike in pump prices from ₦250 per litre to over ₦500. Prices have continued to climb, reaching an average of ₦702 per litre as of April 2024.

The persistence of fuel subsidies and the floating of the Naira have had a profound impact on the economy, contributing to soaring inflation rates. As of April 2024, Nigeria’s headline and food inflation rates had escalated to 33.69 percent and 40.53 percent, respectively.

Last modified on Wednesday, 05 June 2024 19:09

On the special occasion of World Environment Day marked every June 5, President Bola Tinubu calls for earnest effort and action by citizens, stakeholders, institutions, and development partners to safeguard the environment and ensure a win-win transition to a prosperous and clean economy future for all.

The World Environment Day, established by the United Nations during the Stockholm Conference on the Human Environment in 1972, is an important moment for raising awareness on environmental matters.

The theme of this year's occasion, 'Land restoration, desertification and drought resilience', is very significant, particularly for Nigeria, where the scourge of drought threatens parts of the country.

According to the projections of the UN Convention to Combat Desertification, about 40 percent of our planet’s land is degraded, which directly impacts half of the world’s population. 

The UN Convention to Combat Desertification also says the number and duration of droughts have increased by 29 percent since 2000 and that without urgent action, droughts may affect over three-quarters of the world's population by 2050.

In his determined march towards Nigeria's aspiration to achieve carbon neutrality by 2060, President Tinubu established the Presidential Committee on Climate Action and Green Economic Solutions, which he chairs, to oversee the nation's climate mitigation and adaptation efforts, as well as green economy initiatives.

The President also approved the establishment of Nigeria's first Green Industrial Zone, Evergreen City, which is poised to be the leading manufacturing hub in Africa for renewable energy technologies, green solutions, and climate-adaptation technologies.

The President restates his commitment to ensuring the planting of 25 million trees by 2030, not only to protect the environment but also to provide opportunities for Nigeria's youths within the green-economy value chain.

While calling for a more proactive approach to protect the land and ecosystem through afforestation, water conservation, and the cessation of indiscriminate felling of trees, President Tinubu emphasizes that to heal our world, we must begin by healing the land and its people.

 

Chief Ajuri Ngelale

Special Adviser to the President

(Media & Publicity)