A major step towards averting an industrial action over petrol subsidy removal was taken last night.
The Federal Government said it would consider a list of demands by the Trade Union Congress (TUC), including a minimum wage increase and tax holiday.
Yesterday’s meeting was a follow-up to Wednesday’s parley between the government and Labour over President Bola Ahmed Tinubu’s pronouncement during his inauguration statement that ‘fuel subsidy is gone’.
Following the speech, marketers raised the price of petrol and Labour announced a nationwide strike to begin on Wednesday.
Negotiations would continue tomorrow on the demands, the spokesman of the government team, Mr. Dele Alake, announced after the meeting.
According to its president Joe Ajaero, the government must reversed the ‘unilateral’ increase of petrol prices before any negotiation.
Former Edo State governor Adams Oshiomhole faulted the NLC for shunning the resumed negotiation between the Federal Government and the organised Labour.
He expressed the hope that the Joe Ajaero-led union will return to the tomorrow when the government team and Labour officials resume talks.
But the government said it would continue to reach out to the NLC leadership.
There were calls on the NLC to shelve the planned action.
The government got more support for the subsidy removal from manufacturers, investors and business concerns, and was urged to introduce palliatives.
The government team at yesterday’s meeting was led by Secretary to the Government of the Federation (SGF) Senator George Akume.
Alake said: “We are very happy to announce that this engagement has been very productive.
“The TUC presented a list of demands, which will be presented to Mr President for consideration.
“A lot of the items on the list are not impracticable. What we need to do is to study the numbers very well.
“We have asked the TUC to also give us a leeway to consult very exhaustively and reconvene on Tuesday (tomorrow) to look at the numbers’ viability and practicability of all the items.
“The most important is the issue of the minimum wage, which the Labour movement has demanded given the consequential impact of this removal of subsidy.
“The government will look at that and Mr President is most likely going to constitute a tripartite committee of Federal Government, states and the organised Labour as well as the private sector.
“The committee will study all the dynamics of a wage increase in percentages, the numbers and the categories that will be affected.
“So, by Tuesday, when we reconvene to meet with the TUC again, we should have very concrete items to present to the world.
“But, the most important thing for today is that we are making appreciable progress with the Labour.”
Alake admitted that the cost of living will rise with subsidy removal.
“Labour argues that there is an immediate impact on the workers, on the purchasing power, because the price of fuel has gone up.
“That will necessarily reduce the purchasing power of the average worker. So, the next thing of immediate consequence is to increase the purchasing power of the worker.
“That to me and all of us on this side is the topmost priority on the list.
“There are other things like the tax holidays in which some categories of workers will be beneficiaries. But the most important is the minimum wage,” Alake said.
On the NLC, he said: “We all agreed that we are going to meet here, but again, in this game there are dynamics.
“Sometimes, they could be meeting with their executives and not able to meet with us, or they could want to postpone or they have not articulated their list of demands as the TUC.
“But we cannot second-guess why they are not here. But efforts are being made to reach them; we are not isolating them at all.”
Osifo said his team attended the meeting as directed by the union’s National Executive Council (NEC).
He said: “Yes, we have presented the list of our demands and they received it in good faith. They will go back to their principal and come back to us on Tuesday.
“So we’re hopeful that the demands that we have presented will be reviewed in the best interest of Nigerian workers and the entire Nigerian masses.”
He confirmed that part of the demands is the review of minimum wage, which he said has been eroded by the subsidy removal.
“Because they are going back to Mr President, we also think that we should also give them that benefit of the doubt,” he said.
Others members of the Federal Government team are Central Bank of Nigeria (CBN) Governor Godwin Emefie; Senator-elect Adams Oshiomhole; and Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari.
Also at the meeting were the Executive Secretary of the National Sugar Development Council (NSDC), Zacch Adedeji; Executive Vice President, Downstream, of the NNPCL, Yemi Adetunji; House of Representatives member James Faleke, among others.
NLC: strike to go on
The NLC yesterday debunked claims that its ranks were divided, saying it was going ahead with its planned industrial action.
The Congress said all the affiliate unions of the NLC stand together.
Head of Information and Public Affairs, Benson Upah, said: “Whereas primordial sentiments such as religion, region or ethnicity may be a refuge for some, at the NLC, they have no place.
“What counts for us are issues such as the mindless and criminal increase in the pump price of PMS whose burden will be borne by the already impoverished communities of the poor across Nigeria.
“The burden of this malevolent policy will not be borne by other segments of the country to the exclusion of the North or Southwest. Thus, there is no reason for these regions to back out of the strike.”
More unions are mobilising for the industrial action.
The National Union of Electricity Employees (NUEE) directed its members to withdraw their services nationwide on Wednesday.
The NUEE, in a notice signed by its acting general secretary, Dominic Igwebike, urged its members to comply with the directive and stop work from the early hours of Wednesday.
“All national, state and chapter executives are requested to start the mobilisation of our members in total compliance with this directive,” the statement stated.
The Nasarawa chapter of the NLC is also mobilising its members.
Its chairman, Ayuba Oko, after an emergency meeting of the State Executive Council (SEC), said there was no going back unless the subsidy removal is reversed.
Sanwo-Olu, Ndume, urge Labour to shelve plan
But, Lagos State Governor Babajide Sanwo-Olu, urged the NLC to shelve the action.
Speaking after a post-inauguration thanksgiving service at the Cathedral Church of Christ, he said: “This is not the time to go on strike. Recall that all presidential candidates said the first thing they will do is remove fuel subsidy. So what has changed?
“What has President Tinubu said or done that is different from what others would have done? The president has not even spent one week in office.
“We need to be very patient and reason together. Let us not make the issue about politics, but let’s support this man. We should allow him to go and reflect.
“Strike will not resolve anything; it won’t address the issue. The point should be how to ensure a sustained turnaround in our economy…
“So, I plead with the NLC to not turn the subsidy issue into a political one. The leadership should know they are leading people and so there is a need to restrain themselves. Let us be patient and work with the president.”
Former Senate Leader, Mohammed Ali Ndume, also urged the NLC to call off the planned strike.
He said: “This fuel subsidy removal is something we must do now or never. We need to open the wounds now and begin to heal them.
“The NLC needs to work with the government and see how the effects can be minimised. If we don’t remove the subsidy now, some people will continue to milk this country.
“NLC should go to the negotiation table with the Federal Government.”
But, Kano State Governor, Abba Kabir Yusuf, asked petroleum marketers to revert to the old price.
In a statement by his Chief Press Secretary, Sanusi Bature Dawakin Tofa, the governor said the marketers still had old stock that was supposed to be sold at the previous rate.
“I am disheartened to see our dear people of Kano suffering as a result of an unjustified fuel hike, and the situation must be stopped right away,” Yusuf said.
IPMAN predicts price crash
The Independent Petroleum Marketers Association of Nigeria (IPMAN) believes petrol prices will drop when more companies are licensed to import the product.
Its Chairman Enugu Depot (comprising Anambra, Ebonyi and Enugu), Chinedu Anyaso, said: “The competition that will begin in the coming days will surely ease the pain of high prices of products.”
‘Dialogue needed’
Director General, Michael Imoudu National Institute for Labour Studies (MINILS), Comrade Isa Aremu, called for continuous dialogue.
He said: “What makes the current reform different is that there is a national consensus among all stakeholders that prohibitive costs of subsidising a single product (PMS) in the wake of declining public revenue and other national needs are unsustainable.”
He added: “Neither policy reversal nor mass protest is an option. Genuine negotiation and social dialogue would make the deregulation policy a reality without compromising the welfare of the citizens concerning welfare and secured jobs.”
National Chairman of Tinubu Support Network and Director-General of Amalgamated All Progressives Congress (APC) Support Groups, Kailani Muhammad, applauded President Tinubu for the prompt announcement of subsidy removal.
Kailani, a former staff of the defunct Nigerian National Petroleum Corporation (NNPC), argued that if Tinubu had not announced the removal of the subsidy at the time he did, the oil cabals would have frustrated the effort as they did past administrations.
At a briefing in Kaduna, he said: “This is the right decision because the immediate past administration shifted it. We have been postponing the evil day. A time has come for this country to measure up with the comity of nations.
“Nigeria as a member of OPEC should enjoy gains that accrue from sales of oil to develop infrastructure, health, education, agriculture, etc.
“I think we are good to go. Subsidy removal will increase competitiveness and prices will fall back. I believed he did it in a good fate.”
Also, Chairman APC USA, Prof. Tai Balofin, urged Nigerians to trust President Tinubu to work out palliatives to cushion the effect of fuel subsidy removal.
“I trust that the president will put some measures in place to cushion the effect of the subsidy removal so it does not go overboard,” he said.
A chieftain of APC U.S.A, Mr Tunde Doherty, said the United Kingdom does not pay subsidies on its petroleum products.
“In the UK today, we have Costco Oil selling for £1.3 and we have Sabre (Oil and Gas) selling for £1.7. So it is a liberalised economy with petrol.
“There is no subsidy in the Diaspora and we enjoy fuel. We have never experienced fuel scarcity. The time for us to enjoy that Renewed Hope is here,” Doherty stressed.
‘Provide palliatives’
A former Minority Leader, Senator Biodun Olujimi, urged President Tinubu to roll out palliative measures to cushion the effects of subsidy removal on Nigerians.
“Even though we want the subsidy to go, it should have been done in such a way that it won’t cause people unnecessary pain,” he said.
A group, the Community of Advocacy for Positive Behavioural Patterns Initiative (AFPBPI), also called for palliative measures to ameliorate the effects on the masses while welcoming the policy.
Its spokesman, Bamidele Mann, said in a statement: “We want you (President Tinubu) to protect and cushion the effect of the removal especially on the low incomes and youths to enable us to secure the right to an adequate standard of living and to avoid further hardship.
Substitute Annabelle Chukwu scored twice in extra time Sunday to send Canada to next year’s FIFA U-20 Women’s World Cup with a 5-3 comeback win over Costa Rica in the third-place match at the CONCACAF Women’s Under-20 Championship.
Kayla Briggs dispossessed a Costa Rican defender and Ella Ottey sent in a perfect cross for an unmarked Chukwu to knock home in the 101st minute. Chukwu had come off the bench to open the second half and had a string of scoring opportunities, hitting the post with one of them before delivering the go-ahead goal.
The 16-year-old from Ottawa added an insurance goal in the 121st minute, curling in a shot past the outstretched Genesis Perez.
The defending champion United States faced Mexico in the championship game later Sunday, with both having already booked their ticket to the World Cup.
The two finalists and third-place side at the eight-team CONCACAF tournament will represent North and Central America and the Caribbean at the FIFA U-20 World Cup.
Down 3-2, Canada tied it up in the 74th minute with a lunging Olivia Smith poking in a low cross from Briggs before crashing into the goalpost. It was Smith’s fourth goal of the tournament.
Tied 2-2 in the sixth minute of first-half stoppage time, Costa Rica’s Josselyn Briceno scored from a spectacular free kick taken from more than 40 yards out. Canadian goalkeeper Faith Fenwick, who stands five foot seven, got her hands to the dipping moon shot but only managed to deflect the ball into the roof of the goal.
The Canadians had chances late in the second half to pull ahead but could not convert. And there were more scoring opportunities in extra time, with substitute Jaime Perrault’s header flashing wide.
Briceno tried two more long-range shots early in extra time but Fenwick gathered one in and the other flew just high.
Florianne Jourde and Ottey also scored for Canada, which trailed 3-2 at the half.
Smith (two caps) has played for the Canadian senior side. Chukwu and Ottey were called into camp last year but have yet to make their senior debut.
Marian Solano and Sheika Scott also scored for Costa Rica, which fought back from 1-0 and 2-1 deficits.
The Canadians had qualified for eight of the 10 previous FIFA U-20 Women’s World Cups, missing out in 2010 and 2018. Canada was runner-up to the Americans in 2002 when it hosted the event, which was then an under-19 competition. The U.S. also won the U-20 World Cup in 2008 and 2012.
Costa Rica qualified for the 2014, 2014 and 2022 U-20 World Cups, never making it past the group stage.
It was 30 C, feeling like a steamy 38 degrees, for the noon kickoff at Estadio Olímpico Félix Sánchez. The game paused for hydration breaks in both halves.
Ottey opened the scoring for Canada in the 16th minute. Perez flew through the air, diving to punch a Rosa Maalouf cross away, only to see the ball drop to Ottey, who controlled the ball neatly with her thigh before launching a shot that deflected in off a defender.
Solano tied it up eight minutes later, deftly making room at the edge of the penalty box to escape a defender and curl a left-footed shot that beat a diving Fenwick.
Canada went ahead in the 27th minute after a pass from Smith, who had a Costa Rican tugging at her jersey, put Jourde behind the defence. The midfielder from St-Hubert, Que., slid a low shot past Perez.
Smith was taken down by Briceno in the Costa Rican penalty box in the 33rd minute, with video review eventually confirming a penalty. But Smith, the Canada captain, slotted the penalty low and wide.
After video review, Costa Rica was awarded a penalty in the 43rd minute after Veronica Matarrita was caught by Clare Logan’s leg as she tried to twist free. Matarrita made the most of the contact, tumbling dramatically to the turf.
Scott made no mistake with the spot kick, finding the corner of the goal in stoppage time to tie the game at 2-2 with her sixth goal of the tournament.
Canada coach Cindy Tye sent on Briggs, Chukwu and Jadea Collin to open the second half.
Canada came into the match with a 4-1-0 edge over Costa Rica in CONCACAF under-20 play with the Canadians winning 3-1 last time out in 2018.
Tye made four chances to her starting lineup with Maalouf, Renee Watson, Ella McBride and Nyah Rose slotting in.
The Canadians lost a heartbreaker to Mexico in Friday’s semi-final, beaten 2-1 0n a 92nd-minute goal by Alice Soto. Costa Rica was beaten 2-1 by the U.S. in the other semi-final.
Canada finished runner-up to the U.S. in Group A, downing Jamaica 4-0 and Panama 5-0 before falling 5-2 to the Americans.
Costa Rica was second to Mexico in Group B.
The Canadians lost 1-0 to Mexico in last year’s semi-final at the same venue before blanking Puerto Rico 2-0 to finish third. The U.S. beat Mexico 2-0 in the final for its seventh CONCACAF crown.
Canada won the CONCACAF tournament in 2004 and 2008, defeating the U.S. both times, and was runner-up to the Americans in 2006, 2012 and 2015.
[theglobeandmail]
The 10th National Assembly (NASS) will be inaugurated this month. In electing the officials of the NASS, there is need to carry every section of the country along in line with the federal character principle expressly enshrined in the Constitution.
Though democracy is a game of numbers, it also presupposes inclusiveness.
Any country where a section of the populace feels that it is being excluded from the scheme of things, justice demands that the situation should be quickly addressed and resolved.
When the political parties were selecting their presidential candidates, the issue of equity and fairness was raised. Since former President Muhammadu Buhari, who was completing eight years in office then, is from the North, Nigerians expected that his successor should come from the South. The All Progressives Congress (APC) and Labour Party (LP) chose southern presidential candidates, while the Peoples Democratic Party (PDP) picked a northerner. Now the country has Asiwaju Bola Ahmed Tinubu of the APC, from South West, as president, with Alhaji Kashim Shettima, from North East, as Vice president.
With this setting, we strongly feel that for equity, fairness, and justice, the South-East deserves the Senate Presidency position in the 10th Senate, as has been canvassed by many Nigerians, including Vanguard newspapers, which, on June 30, 2023 emphasised it. We are not oblivious of the fact that a number of candidates from other zones are contesting for the same position, but we must remember that since independence in 1960, the South-East has been on the periphery of power in Nigeria.
Take the Presidency, for instance. In the first republic, Dr. Nnamdi Azikiwe was the ceremonial President. The real powers resided in the Prime Minister, Sir Abubakar Tafawa Balewa, a northerner. In 1966, there was a coup that brought in Gen. Thomas Aguiyi-Ironsi. The reign of Aguiyi-Ironsi as military Head of State ended disastrously six months later as he was killed in a counter coup in 1966. In the second and third republics, the story was the same.
In the fourth republic, from 1999, things appear to have worsened. Chief Olusegun Obasanjo from the South-West became the President of Nigeria in 1999. His ascension to power was to assuage the South-West which was embittered by the annulment of the June 12, 1993 presidential election presumably won by its son, Chief MKO Abiola. South-Easterners like Dr. Alex Ekwueme had to suspend their ambition in PDP, while former Minister of Science, Technology and Innovation, Dr. Ogbonnaya Onu, who earlier emerged the presidential candidate of the All Peoples Party (APP) surrendered it for Chief Olu Falae (South West) to be picked as consensus joint candidate of APP/Action for Democracy (AD), just to allow the South-West candidate to sail through to the Presidency. After the eight-year rule of Obasanjo, a northerner, Umaru Musa Yar’Adua took over the mantle of leadership. He died three years after. His deputy, Dr. Goodluck Jonathan (South-South) succeeded him. A northerner, Muhammadu Buhari, succeeded Jonathan in 2015 and has just handed over to another South-Westerner, Tinubu.
During Buhari’s eight-year rule, security and other major appointments eluded the South-East zone. No South-Easterner was found worthy to be appointed a service chief, Minister of Defence or even National Security Adviser. None of them was also found worthy to be Inspector-General of Police, Director-General of the Department of State Services (DSS), Controller-General of Customs, Comptroller-General of the Immigration, Chairman of the Economic and Financial Crimes Commission (EFCC), and the Commandant-General of the Nigerian Security and Civil Defence Corps (NSCDC). The South-East was not also found worthy to present Senate President, Deputy Senate President, Speaker of the House of Representatives and Deputy Speaker of the House.
Originally, Nigeria used to stand on a tripod: Hausa/Fulani, Yoruba and Igbo. Now, one leg of the tripod, the Igbo, appears to be broken. The 2023 presidency position should have been ceded to the South-East for fairness and equity. But, the APC and the PDP – in their wisdom, presented candidates from outside the South-East. This obtains in spite the fact that the majority of the South-East people believe in one Nigeria. They have their businesses and investments all over Nigeria. They have also paid their dues in the two dominant parties. The APC, for instance, rules in two of the five states in the South-East – Ebonyi and Imo states. PDP rules in one, while Labour Party and the All Progressives Grand Alliance (APGA) rule in one state each.
In APC, which is the ruling party, the South East has shown support. The party has two governors – Hope Uzodimma (Imo) and Francis Nwifuru (Ebonyi). There are six senators of APC from the South-East. With these, the expectation is that one of the elected senators should be considered in the 10th Senate leadership, since APC has the majority. The ranking senators who should be considered for the post are capable and ready to lead the Senate, for good result.
We say strongly that since the APC denied the South-East the presidential ticket, the party should consider compensating the zone with the Senate Presidency position. This will be in line with the Federal Character principle as enshrined in Section 14(3) of the 1999 Constitution. It will also be part of the processes to heal the wounds of the 30-month Nigerian civil war of 1967-1970 as well as address the marginalisation of the zone, which has escalated in the current democracy. This is moreso since the Tinubu administration has chosen a Chief of Staff to the President from the South-West and the Secretary to the Government of the Federation (SGF) from North-Central. Also, none of the service chiefs and the Inspector-General of the Police is from the South East.
Democracy is strengthened when every section of a federation is carried along in the scheme of things. South-East deserves more than it has got from the Nigerian federation. It needs to have a sense of belonging. The voice of the people of the zone should be heard and reckoned with.
Senators should know that everything is in their hands. They should be careful in choosing who leads them at this point in time. Nigeria is sharply divided along ethnic and religious lines. We should not add to that division by our acts of omission or commission. The country deserves peace and unity. It desperately needs growth and progress. Only equity, fairness, political inclusion and justice will make that possible. Justice and fairness will be served if South East produces next Senate President.
[Sun]
The Nigerian Association of Resident Doctors (NARD) has urged President Bola Ahmed Tinubu to declare a state of emergency in the health sector to address the menacing brain drain.
It noted that while most doctors are competent and patriotic, the poor working environment, welfare, insecurity, among others, pushed many to seek greener pastures abroad.
The union insisted on at least a 200 per cent increment in the basic salary of its members, with the additional allowances, as contained in the letter it sent to the Federal Government through the Federal Ministry of Health on July 7, 2022.
The NARD expressed shock over the recent increase in the prices of petroleum products, following the removal of subsidy, saying this would propel an increased inflation rate and cost of living.
The union urged the government to put measures in place to cushion the effect of subsidy removal on poor Nigerians.
The statement by NARD President, Dr. Emeka Orji, reads: “We call on the President, Asiwaju Bola Ahmed Tinubu, to, as a matter of urgency, declare a state of emergency in the Nigerian health sector as the era of paying lip service to the monster called ‘brain drain’ should be over.
“We urge the government to set up a high-powered panel to review and harmonise the reports from the former President Obasanjo Health Agenda for Nigeria Committee and the former Vice President Yemi Osinbajo-led Health Sector Reform Committee in order to generate a plan of action in the Health sector for the President Tinubu-led administration.
“We insist on the demand for at least 200 per cent increment in the CONMESS salary structure and the associated allowances, as contained in our letter to the government, dated July 7, 2022. We have resolved to give the new government some time to quickly resolve this issue which is at the root of the current spate of massive brain drain in the sector.”
NARD added: “We call on Governors Adedapo Abiodun of Ogun State, Alex Otti of Abia State, Siminalayi Fubara of Rivers State, Seyi Makinde of Oyo State, AbdulRahman AbdulRasaq of Kwara State and the Federal Capital Territory Administration (FCTA) to urgently look into the situation in the Health sector in their states since these are capable of breaking down the industrial peace in their states.
“We call on the management of the Lagos State University Teaching Hospital (LASUTH) and the Lagos State Governor to discontinue the demand for bench fees as this contravenes the decision of the National Council on Establishment to abolish the fees.
“We call on the West African Colleges of Surgeons and Physicians to immediately discontinue the practice of charging our members using parallel market exchange rates.
“We call on the Medical and Dental Council of Nigeria to stop the downgrading of the membership certificate as this is not the practice in sister African countries that share the same certificate.”
…As Ajaero mobilises NLC members for nationwide strike
…Yoruba Council calls for arrest of Labour leaders
…KPMG forecasts 30% inflation on N500/Litre PMS
…SERAP seeks legal action on alleged missing $2.1bn crude oil, N3.1trn subsidy payments
…Endure, APC Govt is temporary — Atiku
Following the upward adjustment of the prices of Premium Motor Spirit ( PMS) from N175 to average of N500 per litre nationwide by Nigerian National Petroleum Company Limited ( NNPCL), stakeholders have called for the reversal of the prices to avoid nationwide strike, galloping inflation and job cuts. The stakeholders led by the Nigeria Labour Congress ( NLC ) and SERAP also called for the probe of eight years N3.1 trillion fuel subsidy payments, alleged missing $2.1billion crude oil and provision of actual daily demand figure by NNPCL.
For instance, KPMG Nigeria Partner and Chief Economist , Mr Yemi Kale, said that the updated prices of Premium Motor Spirit (PMS) will jerk Nigeria’s inflation to about 30 per cent in June 2023.
Kale speaking via his twitter handle said, “Using the NBS CPI model+my macro model, the new petrol prices may add about six per cent to Consumer Price Index (CPI) in June over whatever is reported in May, holding other things constant.
“April was 22.22 per cent and May is unknown and won’t be affected. So, June will be somewhere about 30 per cent. Not as bad as I expected.”
He however noted that the CPI for May would not be impacted.
NLC threatens nationwide strike
Following the impact of the removal of fuel subsidy on the price of PMS, the Nigeria Labour Congress ( NLC), is set for a face off with the Federal Government.
Recall that last week after a meeting between the labour union leaders and representatives of the Federal Government, Dele Alake stated that the discussion with the union was inconclusive.
The NLC has now come out to issue an ultimatum of Wednesday to revert to the old price of N194 per litre or it would direct its members to withdraw their services nationwide across both public and private sectors.
The NLC also directed all its affiliates unions and state councils to commence mobilisation in case the government through the Nigerian National Petroleum Company Limited (NNPCL) refuses to revert to the old pump price of PMS.
In a briefing with journalists after its National Executive Council (NEC) meeting in Abuja, the national President of NLC, Joe Ajaero, noted with regret that NNPCL on Wednesday jerked up the pump prices of PMS by over 200 per cent bringing the price of fuel to between N488 and N557 per litre.
Ajaero said after an unanimous decision of all NLC affiliates, unions were directed to commence mobilisation immediately ahead of the planned nationwide protest.
According to him, “The NLC decided that if by Wednesday next week the NNPCL, a private limited liability company, that illegally announced a price regime in the oil sector, refuses to revert itself for negotiation to continue, that the NLC and all its affiliates, will withdraw their services and commence protests nationwide until this is complied with. The NNPCL doesn’t have the monopoly to act illegally even as a private company. The NLC NEC, therefore, directed all state councils and all industrial unions to commence mobilisation from this moment to make sure that this action is enforced. The action has commenced at this moment.”
Ajaero then called for a probe of the subsidy regime in the past eight years, the amount paid on subsidy and the beneficiaries of the payment. The labour leader also urged the NNPCL to ensure a proper account of the amount of petroleum products Nigerians consume daily. He accused the NNPCL of refusing to disclose beneficiaries of subsidy and landing cost of petroleum products.
He said, “The Nigeria Labour Congress is calling for a thorough probe in the process of subsidy to know those involved and the amount involved. Investigate it properly before it is swept under the carpet. The current attempt to sweep the fraudulent practices in the subsidy regime should not be tolerated by all well-meaning Nigerians.”
Endure for now, Tinubu’s administration is temporary — Atiku Abubakar
The Peoples Democratic Party (PDP) Presidential candidate in the February 2023 general elections has advised Nigerians to appreciate the PDP Government and regard President Tinubu’s administration as temporary.
Speaking at a one day retreat in Bauchi, Atiku said, “We have the experience as a party in government. That is what we would have done and not just announce subsidy removal without discussion with the affected sectors of the economy. I think Nigerians should appreciate what they have temporarily lost.
“Between 1999 and 2007, the PDP government initiated the petroleum subsidy removal and I chaired the committee. We achieved subsidy removal in two phases but only after providing palliatives for those most affected by the subsidy removal,” he said.
Atiku further expressed confidence that he will reclaim his stolen mandate at the court.
Probe missing $2.1bn, N3.1trn subsidy payments or face legal action — SERAP tells Tinubu
Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to “set up a presidential panel of enquiry to promptly probe the grim allegations that US$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019, as documented by the Auditor-General of the Federation.”
SERAP urged him to “name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy, and to ensure their effective prosecution as well as the full recovery of any proceeds of crime.”
SERAP also urged him “to promptly, thoroughly, independently, transparently and effectively probe all fuel subsidy paid by successive governments since the return of democracy in 1999, and to use any recovered proceeds of crime as palliatives to address the impact of any subsidy removal on poor Nigerians.”
In the letter dated 3 June 2023 and signed by SERAP Deputy Director Kolawole Oluwadare, the organisation said, “There is a legitimate public interest in ensuring justice and accountability for these serious allegations. There will be no economic growth or sustainability without accountability for these human rights crimes.”
SERAP said, “Your government should urgently act to follow due process of law in any policy to remove fuel subsidy, ensure that suspected perpetrators of these crimes against Nigerians are brought to justice and full recovery of any missing public funds.”
SERAP also said, “Arbitrarily removing fuel subsidy without addressing outstanding accountability issues in the alleged mismanagement of oil revenues and fuel subsidy payments would amount to punishing poverty and further impoverishing the poor while letting high-profile officials and non-state actors get away with their crimes.
“Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds.
“We would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.
“The proposed panel should be headed by a retired justice of the Supreme Court or Court of Appeal, and its members should include people with proven professional record, and of the highest integrity that can act impartially, independently, and transparently.
“A comprehensive approach that prioritises accountability and full recovery of missing crude oil and public funds is required to address the problems of the implementation of fuel subsidy since 1999.
“According to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit N663,896,567,227.58 into the Federation Account. The Auditor-General fears that the money may be missing.
“The NNPC also reportedly failed to account for the allocation of crude oil to refineries in 2019. 107,239,436.00 barrels of crude oil were lifted as domestic crude without any document. The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted.
“The NNPC in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162(1) of the Nigerian Constitution 1999 [as amended]. The Auditor-General fears that the money may have been diverted.
“The NNPC also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account.’ The Auditor-General wants the money remitted.
“The NNPC also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00. The Auditor-General fears that the PMS may have been diverted.
“The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’ The Auditor-General fears that the crude oil may have been diverted.”
“The Department of Petroleum Resources (DPR) in 2019 also reportedly failed to remit US$1,278,364,595.49 in revenue to the Federation Account. The money was deducted by the NNPC from the Oil and Gas Royalty assessed by the DPR.
“The DPR in 2019 also deducted N19,840,081.29 as ‘stamp duty’ payments from contractors and consultants but the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.
“The DPR in 2019 also paid N137,225,973.35 to contractors and consultants for various contracts and consultancies but failed to deduct stamp duty. The Auditor-General wants the money recovered.
“The DPR also paid N11,856,088,271.92 as salaries for 2019 but failed to deduct N118,560,882.72 as contribution of 1 per cent Industrial Training Fund (ITF). The DPR in 2019 also failed to transfer US$35,738,342.95 year balance. The Auditor-General wants the money recovered and remitted.
“The DPR in 2018 also withdrew without any explanation $759,387,755.10 from DPR Signature Bonus Account rather than paid the money into the Federation Account.
“Subsidy records show that N443,940,559,974.80 was paid as total subsidy for 2016 but the money was not budgeted for. The payments were for outstanding Petroleum Support Fund (PSF) commitments for year 2015.
“However, there was no payment in 2016. Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.
“The Auditor-General fears that the oil marketers that received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund ( PSF) as the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any document on the payments.
“N39,141,210,181.74 was also paid from the Federation Account in 2016 to different Oil Marketers in 26 transactions, being Payments of Interest and Foreign Exchange Differential on Subsidy but without any document.
“The NNPC also made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016. This is contrary to expectations that profits should be made from the joint ventures.
“The Ministry of Petroleum Resources, Abuja in 2016 paid N14,490,000.00 for the supply of 3 Nissan Almera Saloon vehicles 1.5 to the Ministry without proper documentation. The purchase of ‘the vehicles were made through direct procurement without competitive bidding by at least three companies, as required by Financial Regulations. There was no advertisement and bidding for this contract.
“Although ‘N12,442,500.00 was approved by the Bureau of Public Procurement for the vehicles, the Ministry made an overpayment of N2,047,500.00 to the car company.
“SERAP urges your government to prioritise getting to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.
“Promptly investigating and naming and shaming suspected perpetrators and recovering any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”
Yoruba Council calls for arrest of Labour leaders
Meanwhile, the apex umbrella body of all Yoruba indigenous people has called for the arrest of Joe Ajaero and Emmanuel Ugboaja led Nigeria Labour Congress (NLC).
President, Yoruba Council Worldwide, Aare Oba Oladotun Hassan Esq. said the council is aghast to see Joe Ajaero and Emmanuel Ugboaja led Nigeria Labour Congress (NLS) to have declared strike action via a trending circulated letter dated 2nd June, 2023 to commence strike action on Wednesday 7th June, 2023 against President Asiwaju Bola Ahmed Tinubu’s led Federal Government on the removal of the fuel subsidy in the wake of the inauguration on 29th May, 2023.
The Yoruba leader aimed that based on evidence at the Council’s disposal, the proposed NLC planned strike is an act of economic sabotage, calculated at truncating the administration of Asiwaju Bola Ahmed Tinubu, consequently amounting to Double standards and Treasonable felony.
“We are equally surprised to see the ill-motivated chaotic action to picket CBN offices nationwide and not NNPCL if even genuine as a deliberate premeditated ploy of the Labour Party manifested to cause monumental havocs, considering the siamese political affinity and negative positions of NLC and Labour Party at the last Presidential election, and their earlier treacherous declarations led by the Labour Party’s Vice Presidential candidate Datti Baba Ahmed to make the current government ungovernable,” he decried.
“Surprisingly, Are Oladotun said this is the same political campaign Agenda of the Labour Party’s Presidential candidate Peter Obi to remove and scrap fuel subsidy immediately if elected, so what has changed?”
According to him, “It is highly hypocritical to see the Labour Union Leaders and their ilk involved in such a deceitfully clandestine and criminally crafted plans, considering the purveyors of the strike action who are mainly hardcore ‘Obidients’ using the sentiments of the current economic situation to orchestrate the ill-motivated chaotic total shutting down of the economy.
“It is on this premise we call on all law enforcement agencies, particularly the DSS to stop any act of NLC declared protests, for this is a dangerous prescription to nosedive the ship of government and throw the country into abyss.”
He warned Nigeria Labour Congress and all her affiliates to desist from political grandstanding evil machinations to disrupt the wheel of progress of governance predicated on successful start of a renewed hope agenda.
“We use this medium to call on all Nigerians to continue to support and rally round the new administration of President Asiwaju Bola Ahmed Tinubu and Vice President Senator Kashim Shettima led Federal Government, based on their genuine robust plans to positively reposition the Oil and Gas industry and strategically grow the economy in the overall interest of the greatest number.
“Besides, NLC and TUC leaders knew since last year November that subsidy will be scrapped from July 1 as no provision has been made in the budget for it, beyond this date. The Federal Government which already commits 96 per cent of its revenue in servicing debt is not in any position to continue selling subsidised fuel, most of which is smuggled across our borders for criminal and obscenely unpatriotic profit.
“Subsidy of fuel is most fraudulent decoy to plunge the nation into bottomless pit of hell and economically no longer sustainable as the Federal Government is virtually broke. Apart from its N77 trillion debt, it also owes the NNPC Limited about N2.4trillion for past subsidies,” he lamented.
[NewsDirect]
Countries with the highest unemployment have been ranked.
The World of Statistics in its latest release on Sunday via its verified Twitter handle ranked Nigeria high, indicating the country has the highest level of unemployment in the world at 33.3%.
Following in that order of countries with the highest number of unemployment are South Africa 32.9%, followed by Spain at 13.26%, Greece at 11.2%, Colombia is 10.7% and Turkey, 10% making up the top Six.
Here’s the full list according to the ranking.
Average number of Unemployment rate:
Nigeria: 33.3%
South Africa: 32.9%
Spain: 13.26%
Greece: 11.2%
Colombia: 10.7%
Turkey: 10%
Iran: 9.7%
Uruguay: 8.8%
Chile: 8.7%
Brazil: 8.5%
Italy: 7.8%
India: 7.8%
Sweden: 7.5%
Portugal: 7.2%
Egypt: 7.1%
France: 7.1%
Euro area: 6.5%
Pakistan: 6.5%
Paraguay: 6.5%
Venezuela: 6.4%
Argentina: 6.3%
Austria: 5.9%
Belgium: 5.6%
Germany: 5.6%
Indonesia: 5.45%
China: 5.2%
Canada: 5%
Saudi Arabia: 4.8%
Bangladesh: 4.7%
Philippines: 4.7%
UK: 3.9%
Ireland: 3.8%
Australia: 3.7%
US: 3.7%
Norway: 3.5%
Netherlands: 3.4%
Russia: 3.3%
Mexico: 2.8%
UAE: 2.75%
Japan: 2.6%
South Korea: 2.6%
Denmark: 2.4%
Vietnam: 2.25%
Switzerland: 2%
Singapore: 1.8%
Thailand: 1.05%
Cambodia: 0.36%
Qatar: 0.1%
[DailyPost]
•NLC faults negotiation team, Lagos, Nasarawa, more state chapters join strike
•TUC demands salary increase, fuel importers seek equal access to forex
The Nigeria Labour Congress on Sunday shunned a meeting called by the Federal Government to discuss the subsidy removal and the attendant hike in fuel pump prices across the country.
The union insisted that it would not hold any dialogue with the government representatives unless a legitimate team was set up.
However, the Trade Union Congress officials attended the meeting which was a follow-up to the talks held with the NLC at the Presidential Villa, Abuja, last week, which ended in a deadlock.
This is as the electricity workers vowed to join the strike and plunge the nation into a blackout in protest against the removal of fuel subsidy by the Bola Tinubu administration.
The National Treasurer of the NLC, Hakeem Ambali, confirmed the decision of the union to boycott the meeting which was a follow-up to the Wednesday meeting on the removal of subsidy.
During the meeting attended by the Governor of the Central Bank of Nigeria, Godwin Emefiele, Managing Director, Nigeria National Petroleum Corporation Limited, Mele Kyari, Dele Alake, and others, the NLC had insisted on the reversal of the fuel pump price pegged at between N488 and N540.
Following the breakdown of talks, the congress resolved at its NEC meeting held on Friday to embark on a nationwide strike.
Speaking to The PUNCH on Sunday, Ambali explained that like the TUC, the NLC was invited for a follow-up meeting at the State House following the earlier meeting which ended in a deadlock.
He hinted that the union did not attend the talks because the government representatives had no official mandate or authority to negotiate for the President.
“It was an adjourned meeting, a follow-up to the last one. However, the NLC insisted that we would be ready to negotiate with a team that has legitimacy and official mandate to negotiate for President Tinubu,” he stated.
Shedding light on the NLC’s boycott of the session, the National President of the congress, Joe Ajaero, contended that the meeting was of no consequence to the congress.
NLC slams FG
Speaking in an interview on Arise television on Sunday, Ajaero said, “Of what use is today’s meeting? As of Tuesday night, I had a meeting with the president of the TUC and some other government officials. I told the NNPCL MD that any move to increase the pump price would be taken as war.
“They went ahead to announce. We told them to return to the status quo so that negotiations will continue but up till now, they have not done that. So what are we going to the meeting to do?
“We are not making any progress and this is because we are still at the same point. The issue of alternatives and subsidies are things we have discussed over time and our position has been made public but the government appears not to be interested in our position.”
Speaking on media reports about factions of the NLC opposed to the strike, Ajaero said, “On Friday, all affiliates of the NLC agreed that we should take the next line of action. We don’t have northern NLC or southern NLC. If any media house has proof, let them bring it forward.”
In a notice issued on Sunday, the National Union of Electricity Employees also threatened to join the strike action.
Already, the NUEE has directed its members to withdraw their services nationwide over the sudden removal of the fuel subsidy by the FG.
The NUEE in a notice signed by its acting General Secretary, Dominic Igwebike, urged its members to comply with the directive and stop work from the early hours of Wednesday.
The union said its decision was a sequel to the directive from the NLC.
“To this effect, all national, state, and chapter executives are requested to start the mobilisation of our members in total compliance with this directive,” the statement said.
It further added, “Please note that withdrawal of Services nationwide commences from 0.00 hours of Wednesday, June 7, 2023.
“You are encouraged to work with the leadership of State Executive Councils of the Congress in your various states with a view to having a successful action.’’
As the Federal Government was scrambling to avert the strike, various state chapters of the NLC on Sunday started mobilising their members for the strike on Wednesday as directed by the leadership of the union.
The Lagos State chapter of the union endorsed the strike declared by the NLC leadership despite pleas by Governor Babajide Sanwo-Olu.
The NLC Chairman in Lagos State, Funmi Sessi, said the chapter was “in full support of the strike.”
Sessi, who said the NLC was not against subsidy removal, stressed that the congress was concerned about the masses and the effect the abrupt removal of subsidy would have on them.
She stated, “We are part of the NLC NEC’s decision to embark on a nationwide strike from Wednesday. If the Federal Government does not caution the NNPCL to revert to the old pump price, the strike will go on as planned.
“The pump price must be reversed, then the Federal Government should afterward invite the NLC and stakeholders to dialogue over the issue. We are part of this decision in Lagos, and we are in full support of the strike.”
Like his Lagos counterpart, the Chairman of NLC in Nasarawa State, Ayuba Okok, said the workers in the state would participate in the strike action.
Addressing journalists after an emergency meeting of the State Executive Council held in Lafia on Sunday, Oko stated that he had directed all affiliates of the union in the state to mobilise their members preparatory to the strike.
Similarly, the Bayelsa State Council of the NLC said that it had asked the state workers to prepare to join the strike.
The state NLC secretary, John Angese, who stated this in a telephone chat with one of our correspondents on Sunday, said the state council was against the removal of oil subsidy by the Federal Government.
He said, “We (Bayelsa NLC) are participating in the strike; we’ve been given a directive to that effect from the national leadership. Our chairman is returning to Yenagoa from Abuja where he had gone to attend the NEC meeting. As soon as he comes into town, there is the likelihood of us convening a meeting tomorrow Monday to carry out the directive of the national leadership.”
The situation was the same in Delta State where the workers’ leaders are gearing up for the strike.
The NLC Chairman in the state, Goodluck Ofobruku, said, “We’re fully in support of the ultimatum and will join the planned strike and protests. As I speak, mobilisation has started”
On his part, the NLC leader in Cross River State, Gregory Ulayi, expressed his strong support for the impending strike.
The Ondo State chapter of the congress said it was ready to comply with the directive on strike issued last Friday by the NLC headquarters.
The congress Chairman in the state, Mr Victor Amoko, noted, “The NLC executive in the state will be meeting tomorrow (Monday) where we will brief our members on the outcome of the NLC decision in Abuja.
“I want to confirm to you that we are not backing out from the planned nationwide strike unless there is a new directive from the national body of the union”
On the other hand, the TUC in the state said its action would depend on the outcome of the meeting of the national body of the association with the FG.
The state chairman of the TUC, Mr Clement Fatuwase simply said, “Our national body would meet today on the matter and the outcome would determine whether we are going to join the strike or not.”
The Chairman of the TUC in Ekiti State, Sola Adigun, echoed Fatuwase, saying the union members had yet to be mandated to begin a strike over the removal of fuel subsidy.
Adigun said the TUC and its affiliates in the state were only instructed to start preparing their members for actions that will take place based on the Federal Government’s response to organised labour’s demand.
Giving an update on its decision about the proposed action, the Kano State chapter of the NLC said it would decide on Monday (today) whether to join the strike and protest called by the national body of the union.
Kano NLC meets
The state NLC Chairman, Kabiru Inuwa, disclosed that the union would hold a meeting at 3pm on Monday to take a decision on the planned strike and protest and made its position known afterwards.
“I attended the meeting convened by the national body of our union in Abuja. So, we have also called for a meeting of our local branch which will be held tomorrow (Monday).
“We shall make our position known whether to join the strike or not tomorrow after the meeting which has been fixed for 3 pm,” Inuwa said.
During a two-hour meeting with the Presidency, the TUC, among others, demanded a review of the minimum wage.
Meanwhile, the Judiciary Staff Union of Nigeria said it was mobilising its members for the nationwide strike.
The union’s National Financial Secretary, Jimoh Musa, made this known in an interview with our correspondent on Sunday.
Musa said, “Of course, we will be mobilizing our members. We were a part of the meeting held two days ago. An injury to one is an injury to all. So, therefore we will be joining the strike.”
Speaking on the planned strike, the Deputy-President of the Lagos Chamber of Commerce and Industry, Gabriel Idahosa described it as ill-advised and counter-productive to the long-term merits of fuel subsidy removal.
‘NLC short-sighted’
According to him, fuel subsidy has been an albatross on the neck of the national economy, stifling growth, while enriching a select few.
Idahosa said, “It is definitely not a good move by the NLC. It just shows the unfortunate shortsightedness of the labour movement because they are looking at the immediate pain and the immediate gain and they are not looking at the best interest of their own workers.’’
In the same vein, the National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George said the planned strike action by the NLC would amount to postponing the evil day.
Meanwhile, the Federal Government, on Sunday evening, said it was reviewing a long list of demands made by the Trade Union Congress of Nigeria, the topmost of which was the upward review of the minimum wage.
This followed a two-hour meeting between the representatives of the FG and the TUC at the Aso Rock Presidential Villa, Abuja.
Sunday’s meeting came four days after talks between the Government, TUC, and the Nigerian Labour Congress ended in a deadlock.
Dele Alake who spoke on behalf of the FG said the meeting featured the consideration of a list of demands from the trade unions, amongst which was the upward review of the minimum wage due to what he described as a drastic fall in the purchasing power of Nigerian workers occasioned by the discontinuance of petroleum subsidy.
However, discussions would continue on Tuesday, he said, as the President plans to convene a tripartite committee comprising the organised labour and private sector, to consider the specifics of the demands.
The President of the TUC, Festus Osifo, said aside from the minimum wage increase the union also demanded tax holidays for some categories of workers and revert to the old petrol pump price of N195/Litre while negotiations continue.
He explained “In the meeting we just concluded, we have detailed and marshalled out the list of our demands to them (FG).
“They also in turn told us that when they presented the items to us on Wednesday, we told them that we were going back to our principals. So they also need to touch base with Mr. President, so that we will reconvene this meeting again on Tuesday.
“We are hopeful that the demand that we have presented will be reviewed in the best interest of Nigerian workers.”
Meanwhile, e-hailing drivers under the aegis of the Amalgamated Union of App-Based Transport Workers of Nigeria have said that they would withdraw their services and embark on a nationwide protest on Tuesday over the failure of e-hailing companies to implement a 200 percent increase in fares following the new pump prices for petrol.
The Chairman of the Media and Publicity Committee of the union, Jossy Olawale disclosed this to The PUNCH.
He said the union was aware of the upward review of fares being implemented by some e-hailing firms.
A popular e-hailing company, in a memo dated June 2 informed drivers on its platform about an upward review in fares following the spike in operating costs.
According to the memo seen by our correspondent, the price review will see fares rise from N700 to N800.
Against the backdrop of the strike threat by labour unions, the Director General of Michael Imoudu National Institute For Labour Studies, Issa Aremu, has called for continuous dialogue between the organised labour and the FG on the fuel subsidy removal.
Aremu in a statement issued in Ilorin on Sunday, emphasized the imperative of policy dialogue and discussions between the government and relevant stakeholders on the vexed issue of deregulation.
He expressed optimism that through the exchange of facts, negotiations, and compromises, both the government and labour would find common ground for the inevitable reform of the petroleum downstream sector which he said the sector unions had been pushing for years.
He recalled that Petroleum products supply and pricing had always been an acid test for successive governments in Nigeria.
The former vice president of the NLC said, “What makes the current reform different is that there is a national consensus among all stakeholders that prohibitive costs of subsidizing a single product (petrol) in the wake of declining public revenue and other national needs are unsustainable. In addition, he said the Petroleum Industry Act with all its imperfections has rightly unbundled NNPC and legitimized deregulation.”
To deepen labour engagement through effective civil action, a tactical coordinating team of civil society and labour leaders has been mandated to work closely with the NLC, TUC and organised civil society to present the issues from proper perspectives.
The group comprising Nkoyo Toyo, Salisu Mohammed, Abiodun Aremu, Chris Uyot, Malachy Ugwumadu, Martins Egbanubi, Mo Paul, Hauwa Mustapha, Femi Aborishade, Monday Ubani, Richard Inoyo, Chris Nwaokobia, Jnr, Promise Adewusi, and Olawale Okunniyi, was expected to reach out, mobilise and organise collaborative peaceful mass actions across labour centres and other social movements.
[Punch]
The premium motor spirit (PMS) subsidy removal offers Nigeria the rare strength to crawl back from the fiscal cliff, but whether the imminent doomsday is only shifted miles away or completely aborted may not only depend on how the current transition is managed but also the response of critical stakeholders to the decision.
To suggest that the country has been dancing around the abyss in the past few days is to discount the severity of the challenges. Of course, the push-and-pull narrative about subsidy removal had been elevated to a popular discourse in the past two decades or so. But never has the waste and corruption associated with it pushed the economy to its current bend-or-break position.
And the red figures as well as headshaking facts are now in the open. Volumes of books could be written about the missed opportunities but nothing calls for deep-thinking and audacious action than the current sorrowful state of public finances, poor infrastructure spending and mounting liabilities.
The argument could continue endlessly on whether the government should have toed its path in clotting the open wound subsidy and all its trappings have assumed or endure the bleeding a little longer. But it is what it is – the country is on life support and does not have the luxury of time to tarry before proceeding with the much-needed surgical operation.
First, the recent steep increase in deficits amid dissaving is a major concern. As at the end of April, the outstanding on the Excess Crude Account (ECA), according to the Federation Account Allocation Committee (FAAC), was $0.475 million, 98 per cent steep fall from $2.1 billion in the coffer about less than a decade ago.
The fiscal deficit has also grown from less than N1 trillion in the period to a projected N10.78 trillion captured in the 2023 budget. The deficit accumulation is matched with a borrowing spree that has seen national public debt stocks balloon to about N70 trillion. Sadly, much of the debt is frittered away through subsidy payments and non-productive channels rather than reinvested in infrastructure and other local capacity-building projects that could raise the output level and taxable incomes in the future. Hence, the country has consistently grappled with tattered finances amid rising deficits; which raises fears about the future ability to pay. In 2015, when ex-President Muhammadu Buhari assumed office, the Federal Government’s total earned revenue was N2.4 trillion. Seven years later, it managed to climb up by 85 per cent to N4.46 trillion.
But within the period, the total expenditure moved from N4.477 trillion to N11.08 trillion or an equivalent of 132 per cent increase. The recurrent expenditure also went up by over 100 per cent, from N4.3 trillion to N9.2 trillion. That implies that the revenue profile has been growing much slower than the government’s expenditures.
However, that is just an aspect of the problem. In dollar terms, the FG’s earned more in 2015 than they did seven years later. Using the prevailing exchange rates, the total retained revenue was $12.2 billion in 2015 but it dipped to $10.8 trillion in 2021. If the revenue earned is juxtaposed with the growth of the country’s population and widening infrastructural needs, the extent of the decline in the commonwealth becomes even more abysmal.
The growing need amid declining revenues has tipped government to debt financing, with huge consequences of rising debt service affecting the country’s credit rating and negating its ability to secure fresh loans.
As at end of last November, for instance, 80.6 per cent of the government’s N6.5 trillion retained revenue in the year was spent on debt servicing whereas only N1.88 trillion was released for capital projects. Rising debt service to revenue ratio reduces equity financing capacity and increases the tendency to take more loans, experts have warned. The dilemma could also push the government deeper into a debt trap.
The proportion of government income that goes into debt service is already alarming but the World Bank warned, last year, that it could be much higher in years to come if urgent reforms are not implemented. The Bank said it could hit 160 per cent in five years, except broad-based reforms are implemented to ‘unfreeze’ the fiscal space.
Country Director, Shubham Chaudhuri, had noted that the percentage of government’s revenue going into debt service cost would continue to trend upward in the next five years and balloon except the government bite the bullet and cut off its excesses, including subsidy removal and other public sector reforms.
Between 2015 and last November, the budgetary allocation for capital projects was N10.3 trillion, which is less than twice of N5.24 trillion the FG paid its creditors for only 11 months last year. In the past 18 months, about N7.6 trillion was budgeted for the subsidy scheme alone. The figure is over half of Buhari’s eight-year budgetary support for capital projects, assuming the N5.47 earmarked last year was fully released. Recall that only 34.4 per cent (or N1.88 trillion) was released at end of November.
Perhaps, the worst damage subsidy payment inflicts on the economy comes through external factor leakages. From about $3 billion monthly remittance to the Federation Account in 2014, receipts from the Nigeria National Petroleum Corporation Limited (NNPCL) dropped to zero last year. That means more depletion of the external reserve position, which sends a negative signal to the international market about Nigeria’s ability to meet its maturing obligation, triggering a positive feedback loop.
At the close of May, the country’s external reserves dropped to $35 billion, about 46 per cent hair shave from its all-time high of $64.8 billion reached in August 2008 (at a time the country’s import was less than what it is today). An analysis of Nigeria’s import volume vis-à-vis its peers in relation to their external reserve positions leaves the country with gaping holes.
The rule of thumb used in assessing reserve adequacy suggests that countries should keep amounts sufficient to cover their short-term debts or three-month imports. In the fourth quarter of last year, the country’s total imports stood at N5.4 trillion ($11.74 billion). In nominal terms, the country is in its comfort zone. But beneath the veneer are unsettling issues, chief of which is the volatility of the reserves.
Still, on per capita analysis, Nigeria’s external reserve translates to $162, which pales into insignificance when compared with other oil-producing countries or those at the same stage of development. For instance, Kuwait’s per capita reserve is above $10,000 while that of South Africa is $780. Some of the countries with healthier foreign reserve positions are even more self-sufficient, thus less import-dependent than Nigeria.
Besides, a school of thought has argued that the recommended three-month import cover does not suffice given rising unforeseeable market risks such as COVID-19. The experts are calling for much larger reserves. In the post-COVID era when Nigeria’s reserve sufficiency became a serious debate, India’s had hit an all-time high of $605 billion, providing an import cover of about 15 months. But the intellectual community of the Asian country kicked, saying that the amount did not provide a sufficient buffer. Then, the argument was understandable as the reserve of its regional rival, China, could clear import bills of 16 months while Japan had enough reserve to last for 22 months as at then.
Falling external reserves have a cause-and-effect relationship with the weak naira, which also takes a beating from rising petroleum imports. The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, had lamented that the country spent about 40 per cent of its scarce FX on the importation of petroleum products as well as petrochemicals, which have continued to put pressure on the exchange rate.
The waste has pushed naira to a crisis level. Eight years ago, the official exchange rate was about N196/$ with the black market rates converging around the same rate or even trading slightly lower in some days. At the black market, the currency has lost about 290 per cent of its value against the dollar in less than a decade, while it dipped by close to 150 per cent at the official market.
The just-commissioned Dangote Refinery is expected to alter the course of history and move Nigeria from a net importer of petroleum products to a net exporter. But the country faces a concentration risk of relying on only one refinery to break the self-inflicted jinx. Experts have argued that a deregulated market could trigger a chain of investments in the downstream sector to halt petroleum product importation.
At full capacity, Dangote Refinery is projected to generate 135,000 direct jobs, while the indirect could be in multiple. This means more taxable incomes for the government, improvement in the standard of living and real-time poverty reduction.
Like medical surgery, deregulation will come with pains. Some economists, including Yemi Kale, the former Statistician-General of the Federation, have projected that the inflation rate could spike by as much as six percentage points in June. But a retired investment banker, Victor Ogiemwonyi, pushed back, saying the focus should shift to “driving growth faster than inflation”.
The economist, who believes the removal offers a rare opportunity to stabilise the fiscal position, also advises the authority to work towards reflating the economy, cutting the cost of governance, reducing waste and enhancing public transportation as soothing balms on the temporal wounds the surgical procedure would cause.
“Fuel subsidy is a consumption subsidy that can be used by governments with surplus income to redistribute the surplus if investment opportunities are scarce. However, for a developing economy with untapped vast opportunities, instead of consumption subsidy, the government pursues a policy of production subsidy as a strategy to direct resources to areas of production where they can catalyse growth, create wealth and generate productive employment.
“FG borrows money to subsidise consumption instead of taxing it to generate revenue. Mounting FG debt arises partly from consumption subsidies. If the subsidy is discontinued, it will help in balancing the budget and reduce debt servicing obligations. It will free more funds for the execution of FG’s capital projects… Discontinuation of fuel subsidy can impact the foreign reserve of Nigeria positively because less fuel will be imported and consumed,” David Adonri of Highcap Securities Limited, told The Guardian.
Maybe, Bismarck Rewane, an economist and member of the Presidential Economic Advisory Council (PEAC) under Buhari is more inspirational about how bold reforms (like subsidy removal) could jumpstart the economy when he puts the country’s potential output at $1.6 trillion, a mind boggling 235 per cent above the country’s current discounted gross domestic product (GDP) size – $477 billion.
Yes, Rewane’s estimation is outside the production possibility curve, which the country cannot attain with its current factors. It needs to expand its factor inputs, including injecting additional capital, to reach that level of output. The fresh investment can only come on the back of liberalisation advocated by pro-subsidy advocates.
This is certainly a bend-or-break moment for the country. And Tinubu has taken the first shot. What may be required to start pulling back the lost years and transition to a more productive environment, one that creates jobs and raises public revenues is certainly not a relapse to old culture but forward-looking initiatives.
The best time to have removed the PMS subsidy was before it started; the second best time appears to be now.
[Guardian]
The Oyo State government has announced the constitution of new excos for the Park Management System (PMS) in the state, with Mr Tomiwa Omolewa as Chairman.
This is just as the state government ordered the reopening of the parks which had been under lock and key following the dissolution of the PMS Disciplinary Committee led by Alhaji Mukaila Lamidi
The new Chairman, Omolewa was among personalities who pledged their support for the state government’s new plan on transport management at last week’s stakeholders’ meeting held at the House of Chiefs, State Secretariat, Ibadan.
The stakeholders’ meeting, among others, had agreed to the imperativeness of a reorganisation of the PMS as well as need for appointment an Interim Management Committee for transport management in the State.
The latest development on transport management in the State was conveyed in a statement by the Chief Press Secretary to the Oyo Governor, Mr Sulaiman Olanrewaju, on Sunday.
Also contained in the statement was the appointment of Mr Kasali Lawal as PMS secretary in the State.
The new management team announced by the government on Sunday comprises of members from all the major factions in the transport union.
Apart from the chairman and secretary, other members of the management include Alhaji Tajudeen Jimoh, Deputy Chairman; Kamardeen Idowu, Treasurer; Tirimisiyu Olowoposi, Financial Secretary; Abass Amolese, Organising Secretary; and Alhaji Hamidu Mustapha Were, Auditor.
Others are Alhaji Abideen Ejiogbe, First Vice Chairman; Ganiyu Mojeed, First Trustee; Alhaji Musa Alubankudi, Second Trustee, Alhaji Rahman Akinsola Tokyo, Second Auditor; and Alhaji Wasiu Emiola, Public Relations Officer.
Speaking after the announcement, the new PMS chairman, Tomiwa Omolewa, said he would work towards ensuring peace across the state.
He said: “I thank Governor Seyi Makinde for counting me worthy of this position. I use this opportunity to assure the people of Oyo State and the government that there will be a difference in our attitude to work.”
“I promise that the people will notice a significant difference in our operations as we assume office.”
It will be recalled that Governor Seyi Makinde, hours after he was sworn in for a second term in office, ordered the dissolution of the disciplinary committee of the PMS led by Mr Mukaila Lamidi popularly called Auxiliary.
Afrobeats singer, David Adeleke, also known as Davido, has revealed how he met his wife Chioma.
Davido, in an Interview with YouTuber and vlogger Tayo Aina, said he first met Chioma while they were both studying at Babcock University.
The singer mentioned he was pursuing a degree in music, while Chioma studied Economics.
He said in part, “I was in school for a year before I blew up. That was when I met my wife. I remember the day I saw her. I can never forget it.
“I was in a Prado, and I looked behind and I saw this girl walking. Just there with her bag, it was Chioma.
“I told Lati omo I like that girl, go and call that girl for me.
“He called her but she did not answer me at the time. Later on, she came to Lagos and we linked up. And I was like, yeah, I got you.”
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Following the clash of interest that ensued between the former Chairman of disciplinary committee of the Park Management System in Oyo state, Alhaji Mukaila Lamidi, aka Auxiliary and Governor Seyi Makinde, the governor, has broken silence on why he sacked PMS boss, saying there can’t be two governments in a state.
The governor, made this revelation on Sunday, during a thanksgiving service to commemorate his Omituntun 2.0, held at the Cathedral of St. Peter, Aremo, Ibadan.
Recall that, Makinde, through his ex-Chief of Staff, Segun Ogunwuyi, last Tuesday, announced dissolution of the PMS headed by the former NURTW boss.
Oyo Police Command on the other hand, declared Auxillary wanted in connection with cases of attempted murder, causing grievous harm, arms dealing, murder, armed robbery within Oyo state and kidnapping at Oke-ogun and Ibarapa axis of the State.
The governor said he wielded the big stick by dissolving PMS, saying no meaningful activity can take place in an atmosphere of insecurity.
But Makinde, while speaking at the thanksgiving service, assured government would do all necessary reforms in PMS to ensure those fomenting trouble were engaged.
The governor said, “Before the last election, it wasn’t as if there is no thugs but we called them and told them the new Oyo State we want. We don’t want them to fight themselves, we don’t want fight to break from our garages every time.”
“We told them, don’t fight anybody. if we are re-elected, we shall ensure we unite you so that everyone can get what belongs to him or her for people and the government to operate in the atmosphere of peace.”
“But one of them said he can’t work with others. so I said two governments cannot operate in the state, there will only be one government.”
The governor said it took the grace of God for all his achievements in his first term.
He noted that the most important thing in Omituntun 2.0 is the upgrade of condition of the people, saying government shall do everything possible to make the upgrade is seemless and provide atmosphere for people to comply.
Mr. Olusade Adesola, the Permanent Secretary, Federal Capital Territory Administration (FCTA), says steps will be taken towards developing bicycle tracks within the Abuja metropolis.
Adesola made the expression in a statement by the Director, Information and Communication FCT, Mr Muhammad Sule, in Abuja on Sunday.
According to the statement, Adesola spoke at the opening of the 2023 World Bicycle Day in Abuja.
He said that bicycle tracks were already captured in the master plan of Abuja city, saying, ”We need to develop them.
“This move will deepen the campaign to reduce the effect of climate change, emissions will be reduced if cycling is encouraged,” he said.
The permanent secretary described cycling as an enjoyable and physically beneficial sport which should be encouraged and promoted.
“As a people, we need to imbibe the culture of riding bicycles, both as sport, exercise and means of transportation.
“The benefits of cycling are enormous. It can improve heart health and strengthen the limbs,” he said.
Adesola commended the Indian High Commission in Nigeria for its consistent supports towards the celebration of World Bicycle Day in the FCT.
Speaking, the Indian High Commissioner to Nigeria, Mr Shri Balasubramanian, urged Nigerians to embrace cycling in the interest of good health and healthier environment.
He said the Commission had, in the last five years, supported the celebration of the day in the FCT.
The theme of the event was: ”Cycling – A Better Way to Enjoy the City.”
The Judicial Staff Union(JUSUN) has mobilised its members to join the strike action declared by the Nigeria Labour Congress to protest fuel subsidy removal by the federal government.
In a circular addressed to the Deputy President, All Vice Presidents, All Branches and chapters of JUSUN” and dated June 3rd, 2023.
It reads “I bring you fraternal greetings from Nigeria (JUSUN) The leadership of the Judiciary Staff Union.
“This is to inform all Branches and chapters of our great union across Nigeria to begin mobilisation for a nationwide action and withdrawal of service which would commence on Wednesday 7th June 2023.
“This followed a decision of the National Executive Council (NEC) of the Nigeria Labour Congress (NLC) at her meeting on 2nd June, 2023 over the increase in the pump price of Petroleum Motor Spirit (PMS) by the Federal Government through NNPCL
All zonal vice presidents are to coordinate their zones by ensuring that Branch and chapters chairmen mobilise their members for a total compliance. Also note that the nationwide action commences on Wednesday 7th, June 2023.” The circular, signed for the NLC General Secretary by M.J. Akwashiki, instructed its addressees.
Nigeria To Earn More Revenue From Oil & Gas Sector As OPEC Grants Approval To Produce ‘Maximally’ In 2023
AdminHopes for an increase in crude oil production for Nigeria was rekindled on Sunday following approval by the Organization of Petroleum Exporting Countries to Nigeria, Congo and Angola to produce “maximally”
This was disclosed in a statement issued on Sunday
Nigeria and other OPEC and non-OPEC members at the 35th Joint Ministerial Monitoring Committee Meeting of OPEC held in Vienna, Austria, on Sunday have agreed to cut production volumes in order to ensure global oil market stability just as it allowed Nigeria, Congo and Angola to continue to produce maximally to their OPEC quota of 2023.
In the statement, Nigeria, Congo and Angola have agreed that the highest production volumes of the last six months from November 2022 to April 2023 should be used as the basis for the determination of their 2024 production quota
Nigeria alongside other OPEC and Non-OPEC members at the JMMC meeting agreed to a cut production volumes in order to ensure global oil market stability.
Furthermore, the statement added that Nigeria, Congo and Angola have agreed that the highest production volumes of the last Six (6) months (November 2022 – April 2023) to be used as the basis for the determination of their 2024 production quota.
Nigeria’s highest production of crude oil only of 1.383 MBPD was achieved in February 2023.
The statement reads in part, “OPEC has also agreed to allow these countries to continue to produce maximally to their OPEC quota of 2023.
“This implies that Nigeria can ramp up its production up to its current quota of 1742KBD and subsequently be capped at 10pwr cent less as its quota for 2024 subject to verification by independent secondary sources.”
The statement stated that the Nigerian delegation is confident that the ongoing security intervention under the leadership of President Bola Ahmed Tinubu will enable the restoration of country’s production to the 1580KBD crude oil only.
This will be complimented by condensate of about 400KBD.
This will ultimately enable Nigeria’s crude oil and condensate production of about Two (2) Million Barrels per day in 2024.
Nigeria’s daily crude oil production has surged to about 1.6 million barrels per day, and it’s expected to hit 1.8 million barrels per day according to the Chief Upstream Investment Officer of the NNPC Upstream Investment Management Services, Bala Wunti.
Wunti had said on Saturday at the 186th meeting of the Organisation of Petroleum Exporting Countries (OPEC) that with the technology deployed, Nigeria’s oil production will hit 1.8 million barrels by July or early August.
He said, “It is what we are harvesting already, and the result of the security collaboration is what actually reversed the trend of our declining production.
“That we are back to about 1.6 million barrels today is a result of the collaboration. Everybody is working, the security agencies are working in synergy with the industry, the regulators are working and the communities .
“What we have done is to bring everybody together the four players: the security agencies, the regulators, industry players, as well as the communities through the private community contractors.
“And then we brought in overlaying technology. That technology created a lit of platforms, one of which is the collaborating platform, whereby all security issues are now seen in real time.
“And it is the outcome of that that has brought about the confidence that we have to hit about 1.8 million barrels by the end of July or early August. “
He dismissed every doubt of reaching the new target, saying that, “as of today this morning, our instantaneous production number is about 1.59 million which is basically 1.6 million and this is because of some of our facilities that are basically going through a turn around maintenance.”
He said some of the facilities have 40,000 barrels capacity, which will be on stream by Sunday.