42.6% higher than the preceding year

Poverty and staggering debt remain the albatross on the shoulders of the federal government, 36 States and the Federal Capital Territory (FCT) and the 774 Local Government Areas, despite sharing a whopping N17.9 trillion as the cumulative Federal Account Allocation Committee (FAAC) revenue under President Bola Tinubu.

The figure, which is the highest by the Nigerian government in history, represents a 42.6 per cent surge when compared to N12.56 trillion it was a year earlier.

The increase sprang from the removal of petrol subsidy which freed more funds for monthly FAAC payouts.

The revelation came from a recent FAAC report released by the National Bureau of Statistics (NBS).

Widening poverty 

Regardless of the higher monthly subvention, a report from the World Bank indicates that Nigeria’s poverty rate rose from 40 percent in 2018 to 46 percent in December 2023. It means that the number of poor people increased from 79 million to 104 million.

According to the report, more people have fallen below the poverty line due to sluggish economic growth and rising inflation.

“Sluggish growth and rising inflation have increased the poverty rate from 40 percent in 2018 to 46 percent in 2023, pushing an additional 24 million people below the national poverty line,” the World Bank said.

The report added that the number of poor people in urban areas (more exposed to inflation) increased from 13 million to 20 million, while the number of poor people in rural areas rose to 84 million from 67 million within the same period.

The worst five states in poverty headcount rate for 2019, according to Statista are; Sokoto, 87.73%, Taraba, 87.72%, Jigawa, 97.02, Ebonyi, 79.76% and Adamawa, 75.41%

The lowest five states are; Lagos, 4.5%, Delta, 6%, Osun 8.5%, Ogun 9.3% and Oyo, 9.8%

Analysts say the figures have not improved because the factors responsible for the worsening poverty, like terrorism, climate change crisis, lack of farm input, inflation and others, are yet to abate.

The World Bank, however, predicted a silver lining, explaining that the increase in poverty rate will be undone by the recent reforms of President Bola Tinubu from 2024 onward, reversing the rise to 44 percent in 2026.

High sovereign debt 

Figures from the Debt Management Office (DMO) show that Nigeria’s total public debt stock as of December 31, 2023, was N97. 34 trillion or $108.229 billion.

Sub-national domestic debt stood at N5.863 trillion, while external debt stock was $4.61 billion.

Topping the debtor list is Lagos State, Nigeria’s commercial hub, had an external debt of $1.24 billion in 2023. However, this figure is slightly less than the $1.25 billion in 2022. The slight decline is likely due to a dependance on more domestic debt, which is about N1.05 trillion. Following closely is Kaduna State, which has an external debt of $587.07 million in 2023, climbing from $573.74 million in the previous year. Also exposed to offshore lenders is Edo State with external debt jumping to $314.45 million in 2023 from $261.15 million in 2022.

Highest and lowest FAAC receivers 

An analysis by the whistler shows that Delta, Rivers, Akwa-Ibom, Bayelsa, Lagos and Kano states got the highest FAAC allocation under Tinubu.

On the flip side, Gombe, Ekiti, Ogun and Cross-River States for the lowest.

Despite the fatter monthly FAAC income, there are genuine concerns as 15 Nigerian states have yet to implement the N30,000 minimum wage for their workers since it was signed into law in 2019.

Considering the humongous funds available to states, the organized labour is insisting on a monthly minimum wage of about N600,000 as millions of Nigerians battle multi-dimensional poverty.

According to BudgiT, even though 15 states are yet to implement the minimum wage of N30,000, the 36 states of the federation grew their cumulative personnel cost by 13.44 per cent to N1.75 trillion in 2022 from N1.54 trillion in 2021.

Also, these states grew their overhead bills by 23.42 per cent to N1.24 trillion in 2022.

Under the current administration Delta, Rivers, Akwa-Ibom, Bayelsa, Lagos and Kano states got the highest FAAC revenue during the period.

However, at the end of the 10 months of February 2023 under former President Muhammadu Buhari, Delta, Akwa-Ibom, Rivers, Bayelsa, Lagos and Kano states received the highest revenue.

Further breakdown showed that Delta state despite being the state with the most allocation in both periods, saw a decline of 3.77 per cent to N326.64 billion as against N339.44 billion it got under Buhari.

Rivers, which is the second state with the highest allocation under Tinubu, dropped by 0.88 per cent to N261.48 billion against the N263.79 billion which it got under Buhari.

Experts preach frugality 

Experts have pushed for more frugal management of resources across the three tiers of government so that the gains of good governance can cascade down to all nooks and crannies of the society.

The Director General, Centre for the Promotion of Private Enterprise (CPPE) Muda Yusuf, said it was disheartening that development at the sub-national level has remained appalling, calling on governors to look beyond the state capital to develop the rural areas where the bulk of the citizens reside.

He said: “It’s not nice that poverty has continued to ravage the citizens despite higher FAAC disbursements.

“The additional revenue should be spent on projects that positively impact the lives of the people.

“It’s not about governors building flyovers at state capitals and neglecting many parts of their states.

“Look at what your citizens are predominantly engaged in. Are they farmers, fishermen, traders and so on? You invest in what they do so you make the state more inclusive, not just building airports, flyovers etc.

“Corruption is a major issue actually. The more money available, the more the corruption component of it.

“People should be made accountable. A system carrying too many parasites cannot grow.

The citizens should demand accountability and not just lament and go to bed after voting”, he said.

Fuel distribution, health, bank and other essential services nationwide will be shut from today as organised labour begins an indefinite strike over minimum wage and the recent hike in electricity tariff. 

But the Federal Government in a swift reaction yesterday, warned the Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, to shelve the proposed indefinite strike, saying it was premature and illegal.

This is even as the Senate president, Godswill Akpabio, speaker of the House of Representatives, Tajudeen Abbas, Secretary to Government of the Federation, SGF, George Akume, Chief of Staff to the President, Femi Gbajabiamila, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, among others, last night failed in their effort to stop the proposed strike, after a marathon meeting with NLC president, Joe Ajaero, and his TUC counterpart, Festus Osifo.

However, as part of the mobilization for the strike, the Trade Union Congress of Nigeria, TUC, has directed the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, Association of Senior Staff of Banks, Insurance and Financial Institutions, ASSBIFI, Association of Senior Civil Servants of Nigeria, ASCSN, and other senior staff associations to ensure total compliance.

Earlier, Nigeria Labour Congress’ affiliates, including the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, National Union of Electricity Employees, NUEE, Maritime Workers Union of Nigeria, MWUN, National Union of Banks, Insurance and Financial Institutions Employees, NUBIFIE, and other critical sector unions had written to their members to ensure total compliance.

Recall that the two labour centres had Friday, announced an indefinite nationwide strike from today over the government’s failure to conclude a new national minimum wage and reverse the recent hike in electricity tariff.
NLC and TUC leaders had on Workers Day’s celebrations, given the Federal Government’s May 31 deadline to conclude the negotiations on a new national minimum wage or risk nationwide industrial unrest.

The tripartite committee on a new national minimum wage set up by the government failed to agree on a new national minimum wage after about four meetings.

Labour leaders had walked out of the meetings thrice after rejecting government and the organised private sector’s, OPS, offers.

The last walkout was Friday, which incidentally was the deadline labour gave the government to conclude a new minimum wage as the old minimum wage of N30,000 signed into law by former President Muhammad Buhari on April 18, 2019, expired on April 18, 2024.

Earlier on Friday, May 31, organised labour negotiators had walkout of the meeting for the third time over refusal by the government to make a new offer beyond N60,000.

It was gathered that the negotiations hit a brick wall when the government and the organized private sector, OPS, remained adamant on the N60,000 offers, they made earlier on Tuesday.

Organised labour’s negotiating team had Tuesday, May 28, for the second time in two weeks, walked out of the committee meeting after the Federal Government increased its offer marginally to N60,000 from the N57,000 it offered on Wednesday, May 22.

The labour negotiating team had on May 15, walked out of the tripartite committee meeting after the government offered N48,000 and the organised private sector, OPS, offered N54,000, against labour’s offer of N615,000.

TUC directives

Ahead of today’s commencement of the strike, TUC directed PENGASSAN, ASSBIFI, ASCSN and other senior staff associations to fully participate in the nationwide strike.

Acting Secretary of TUC, Hassan Anka Secretary- General, said: “We convey compliments from the TUC, particularly the President, Festus Osifo, and write to direct all state councils to commence mobilization for an indefinite strike effective Monday, June 3, 2024. Today’s (Friday May 31) meeting was unfruitful as the government further demonstrated unseriousness towards the demands of Nigerian workers and people.

“The six governors that are members of the tripartite committee were absent, except the ministers of state for labour and employment who acts as a conciliator. Sadly, she had no mandate to make any commitment.

‘’Therefore, you are hereby directed to jointly work together with your sister labour center to carry out this important action.”

In the build-up to the strike, PENGASSAN has informed all its officers across the country, including Lagos, that the strike was compulsory.

A notice by the Public Relations Officer, PRO, Lagos Zone of PENGASSAN, Juliana Adenike, said: “Concerning the planned withdrawal of service from all of our offices on Monday, June 3, 2024, there must be strict compliance. It is your responsibility to ensure no entry and exit in your offices by any of our members.”
According to the notice, all executives at every level of leadership of PENGASSAN “are to wear red or any PENGASSAN attire,” adding.

‘’Mount your entrances and ensure 100 per cent compliance with the above directive. There will be a joint task force TUC/NLC going around to ascertain full compliance. Any company in default will be penalized.

More critical unions to join

Meanwhile, more critical unions affiliated with the NLC have joined the Nigeria Union of Petroleum and Natural Gas Workers, NUPENG, National Union of Electricity Employees, NUEE, Maritime Workers Union of Nigeria, MWUN, National Union of Banks, Insurance and Financial Institutions Employees, NUBIFIE, among others have pledged total compliance.

Teachers

In a circular to all its officers across the country, Nigeria Union of Teachers, NUT, Secretary General, Dr. Mike Ene, said: “This is to inform all national standing committee members, state chairmen and state secretaries that consequent upon the inability of the federal government to yield to the demand for a living wage by organized labour for Nigerian workers, an indefinite nationwide strike has been jointly declared by the NLC/TUC with effect from the midnight of Sunday, June 2, 2024.

“Given this, you are requested to sensitize and mobilize our members to fully join the strike and ensure that on no condition should any school be allowed to open from Monday, June 3, 2024 till further notice.

“The national leadership will not entertain any excuse for failure from any state, so, strict compliance is required because NUT particularly has a stake in the struggle.

NAPPS opts out, urges dialogue, peaceful resolution

But the National Association of Proprietors of Private Schools, NAPPS, opted out of the strike and called for dialogue and peaceful resolution of the face-off between organised labour and government.

The body in a statement signed last night by Chief Yomi Otubela, National President, Comrade Augustine Ajibade, National Secretary, and Pastor Gabriel Igbinejesu, National Publicity Secretary, said: “The National Association of Proprietors of Private Schools, NAPPS, Nigeria, is aware of the directive regarding the proposed strike by the Nigeria Labour Congress, NLC, and Trade Union Congress, TUC, scheduled to commence on June 3, 2024.

“While NAPPS Nigeria identifies with the struggles of the NLC/TUC to improve the living conditions of workers in affiliated organisations, it is important that we prioritize the well-being of our nation and work towards a peaceful resolution that benefits the workers, the economy, and the overall social fabric of Nigeria.

“In light of this, NAPPS Nigeria issues the following directives and information: Advice to embrace constructive dialogue and negotiation, rather than resorting to industrial action. We encourage both the federal government and the Nigeria Labour Congress to further engage in constructive dialogue, negotiation, and mediation to find a mutually acceptable solution. NAPPS is willing to offer its support and expertise in facilitating the negotiation process to ensure a fair and sustainable resolution for all parties involved.

“Non-participation in the strike: Our esteemed members are enjoined not to participate in the indefinite strike by NLC/TUC commencing on Monday, June 3, 2024. A strike would disrupt the education sector, affecting both students and teachers. Continued stability in the education system is crucial for the growth and development of our nation.’’

Medical, health workers

Also, the Medical and Health Workers Union of Nigeria, M&HWUN, in a circular, said: “Sequel to the declaration of a nationwide indefinite strike by the organized labour over federal government’s apparent unseriousness and failure to reverse the satanic increment of electricity tariff and conclude negotiation for a living wage for Nigeria workers, I wish to request you to immediately commence intense mobilization of our members’ for a total shut down of all the health facilities in the country, commencing from 00.01 hours, June 3, 2024, in compliance with the directive of the Nigeria Labour Congress.

“Consequently, the state councils’ leadership are equally requested to collaborate with organized labour in their state to ensure water-tight compliance and monitoring of the strike, as any form of sabotage shall not be acceptable.

“Also, pictorials of your level of compliance should be posted on the national secretariat platform for further necessary action please.’’

ASUU’ll participate, CONUA undecided

Similarly, members of the Academic Staff Union of Universities, ASUU, said they would participate in the nationwide strike.

However, a rival academic staff union in the university system, the Congress of University Academics, CONUA, has yet to take any position on the matter.

Presidents of the unions, Prof. Emmanuel Osodeke of ASUU, and Dr Niyi Sunmonu of CONUA, made their positions known yesterday while speaking with Vanguard.

Osodeke said: “ASUU is an affiliate of NLC, hence ASUU will participate in any action of NLC.”

Sunmonu, on his part stated: “We are following the development and I have called an emergency meeting of the congress for later this evening. There, we will appraise the situation and decide on what to do next. “

Also speaking in a chat, the Chairman of ASUU in the University of Lagos, UNILAG, Prof. Kayode Adebayo, explained that the NLC and the government had till midnight on Sunday to resolve the issue.

“One cannot say the matter is totally closed now. The NLC and the government have up till midnight to negotiate, one cannot say anything positive can come out of such.

‘’If by that time, they agreed, there may be no need for any strike, but if the logjam remains, all affiliates of NLC would join, “he said.

SSANU

On its part, the Senior Staff Association of Nigerian Universities, SSANU, in a circular by Kingsley Okayi, Senior Assistant General Secretary, said: “We bring you warm and fraternal greetings from the national secretariat of our great union.

“In line with the letter from the NLC which we are an affiliate, I am directed by the President to request that you comply with the information by directing all SSANU members to liaise with their NLC state chapters to ensure a comprehensive closure of workplace with effect from Monday, June 3, 2024, until further notice.

“You are also to liaise with your national pice president and report the progress of the industrial action to the national secretariat regularly.”

Civil service union

Similarly, the Nigeria Civil Service Union, NCSU, in a notice by its leadership, said: “Fraternal and solidarity greetings from the national leadership of our great union.

“The national leadership is, hereby, directing all state chapters to comply with the directive of organized labour declared nationwide indefinite strike which is scheduled to commence on Monday, June 3, 2024,
“This is in furtherance to the directives of organized labour, comprising both NLC and TUC, due to a deadlock at the meeting of the negotiation committee on the new national minimum wage. Please, adhere to this directive and make the nationwide strike total and successful.”

AUPCTRE

Also, the Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees, AUPCTRE, among others, said: “Your council, committee and organ is hereby directed to mobilize our members to join the nationwide strike that will commence on Monday the 3rd of June, 2024 to press home our demands on the reversal of the hike in Electricity Tariff and the inconclusive National Minimum wage negotiation.”

Judiciary workers

In the same vein, the Judiciary Staff Union of Nigeria, JUSUN, in a statement by its Acting General Secretary, Moses Akwashiki, said: “Following a declaration of industrial action by NLC and TUC, beginning from Monday 3rd June 2024 due to the inability of government to conclude the negotiation of the new National Minimum Wage and refusal to reverse the increase in electricity tariff, I am directed to inform you to commence mobilisation ahead of the action.

“The action will start at midnight on Sunday nationwide, so all branches /chapter chairmen and secretaries of JUSUN are expected to ensure strict compliance with this directive

“All vice presidents of our great unions are to monitor their respective zones to ensure compliance with the total shut down of all Courts and Judicial Institutes across Nigeria

“Note that the nationwide action is to ensure governments agree to a new national minimum wage and subsequently pass it into law before the end of May as they were notified, reverse the hike in electricity tariff without consulting the stakeholders as required by the Law to N225/kwh back to N66/kWh and stop the apartheid categorization of Nigerian electricity consumers into Bands.”

Railway workers

Similarly, the Nigeria Union of Railway Workers, NUR, in a circular, by its Secretary General, Igbokwe Francis, said: “As directed by the NLC, we write to inform you of the commencement of a Nationwide strike beginning from 12 midnight, Monday 3rd of June 2024.

“This is sequel to the insensitivity of the Federal Government of Nigeria to agree on a new national minimum wage to be passed into law as directed by the organized Labour before the last day of May 2024 as notified, plus their refusal to reverse electricity to the old tariff of N66/kwh instead of the criminally new N225/kwh inter alia the categorization of Nigerian electricity into bands.

“Consequently, we advise Management to ensure that all critical equipment and properties of the corporation are well protected.”

NUJ

In a circular to its national officers, state chairmen and secretaries, the National Secretary of Nigeria Union of Journalists, NUJ, Achike Chude, said: “This circular serves to inform all the national officers, zonal vice presidents, and council executives in all the states of our country and the Federal Capital Territory, FCT, that in solidarity with the NLC/TUC, following labour’s indefinite strike declaration from midnight of Sunday, June 2, 2024, NUJ is expected to fully participate in the strike.

This action has become inevitable, following the inability of the government to yield to the demand for a living wage for Nigerian workers.

‘’All officers, state, and national, are thus expected to help mobilize and sensitize members and participate where necessary towards the success of this action.”

Meanwhile, organized labour yesterday urged workers nationwide to be wary of the antics of the government and fully participate in the strike because it is about their wellbeing and survival.

One of the labour leaders who spoke on a purported government’s claims that there was a subsisting court order preventing NLC and TUC from embarking on strike, said: “It is an old antic of the federal government. There is no court order anywhere.

‘’What the government is parading or circulating is an injunction got since last year that has lost relevance, even since last year. We can’t be intimidated by those antics. We are talking about statutory minimum wage.

‘’Sometimes, some of these government officers need to think over issues before making the jaundiced views public. It is unfortunate that in Nigeria, once one is appointed to a public office, he or she finds it easy to say what he or she would not have said outside the government.

‘’Well, we are going ahead with the strike until we sign an agreement. The Minimum Wage Act expired on April 18, 2024. We are fighting for a new Act. We are not lawbreakers.’’

Your proposed strike premature, illegal, FG warns NLC, TUC

Reacting to the proposed indefinite strike yesterday, the federal government warned NLC and TUC to shelve their plan to commence the strike billed to start today.

The government in a statement issued by the Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, described the proposed industrial action as “premature, ineffectual and illegal.”

It stressed that the agitation for the increase of the minimum wage of workers in the country was currently being addressed, insisting that the labour unions failed to fulfil the condition precedents that would enable them to embark on strike.

The AGF in a letter addressed to the two labour unions, noted that the Federal Government and other stakeholders involved in the tripartite committee on determination of a new national minimum wage had not declared an end to the negotiation.

He argued that because the federal and state governments were not the only employers to be bound by a new national minimum wage, it was therefore “vital to balance the interest and capacity of all employers of labour in the country (inclusive of Organized Private Sector) in order to determine a minimum wage for the generality of the working population.”

Besides, the AGF noted that an order of the National Industrial Court, NIC, which barred the two labour unions from embarking on any form of strike was still extant as it had not been set aside.

He, therefore, urged the unions to reconsider their proposed strike and return to the negotiation table.

Suspend nationwide strike, Senate, Reps beg NLC, TUC

Also yesterday, Chairman of the Senate Committee on Finance, Senator Sani Musa, APC, Niger East, wrote the President, Nigeria Labour Congress, NLC, Joe Ajaero, and his Trade Union Congress, TUC, counterpart, Festus Osifo, appealing to them to suspend the declared strike.

According to him, suspending the proposed strike will allow room for what he described as continued negotiations as well as demonstrate a collective commitment to the well-being of the Nigerian workforce and the prosperity of the country.

In the letter dated June 2, Senator Musa urged them to explore every possible avenue for dialogue and negotiation to reach a mutually beneficial agreement, adding that the progress of the nation hinged on the ability to work together, especially during critical times.

The letter read: “I write to you in my capacity as chairman of the Senate committee on finance to address the imminent threat and declaration of strike action scheduled to commence on Monday due to the ongoing wages negotiations stalemate.

“First and foremost, I want to express our profound respect and understanding of the critical role that the NLC and TUC play in advocating for the welfare and rights of Nigerian workers.

‘’Your dedication to this cause is truly commendable and pivotal in shaping the progress and prosperity of our nation.

“We are acutely aware of the challenges faced by the workforce, and it is within this context that I appeal to you to consider the broader implications of the planned strike action. President Bola Ahmed Tinubu, with his Renewed Hope agenda, is steadfast in his commitment to repositioning the status of the workforce for the better.

‘’His vision is to strengthen, revamp, and revitalise Nigeria’s economy, infrastructure, and development across all sectors.

“The ongoing negotiations are a testament to the government’s willingness to engage in dialogue and find sustainable solutions that will benefit all stakeholders.

‘’We recognise that the process has been arduous and, at times, fraught with frustrations. However, I urge you to consider the potential disruptions and setbacks that a strike could inflict on our collective efforts to move the nation forward.

“In light of this, I humbly appeal to the leadership of the NLC and TUC to suspend the declared strike action. Let us explore every possible avenue for dialogue and negotiation to reach a mutually beneficial agreement. The progress of our nation hinges on our ability to work together, especially during these critical times.

“By postponing the strike, we allow room for continued negotiations, demonstrating our collective commitment to the wellbeing of the Nigerian workforce and the prosperity of our nation.

‘’We remain hopeful that through constructive dialogue, we can address and resolve the issues at hand in a manner that honours the interests of all parties involved.

“Thank you for your understanding, and I am confident that together, we can forge a path that ensures both the welfare of our workers and the advancement of Nigeria.”

Similarly, in a statement signed by Yemi Adaramodu and Akin Rotimi, spokespersons of Senate and House of Representatives, respectively, the National Assembly said the federal government and organised labour had “tenable” positions on the issue of minimum wage.

“Given this, the National Assembly leadership and chairmen of the Senate and House Committees on Labour, Employment, and Productivity, respectively, Senator Diket Plang and Adegboyega Adefarati, are looking to engage both parties in constructive dialogue and explore a variety of solutions in addressing the issues at hand.
“The 10th National Assembly is committed to ensuring that the interests of all parties are fairly represented.
“We further urge all stakeholders to remain patient and cooperative as we work diligently to find a mutually acceptable resolution in the best interest of the country.”

However, at press time last night, the Senate president, Godswill Akpabio, and speaker of the House of Representatives, Tajudeen Abbas, were still locked in a marathon meeting to convince organised labour to suspend the strike.

National Minimum Wage Act 2019 has expired — Falana, SAN

Reacting to the development last night, human rights activist, Femi Falana, SAN, said: ‘’Pursuant to the National Minimum Wage Act 2019 the the national minimum wage was fixed at N30,000. By virtue of section 3(4) of the Act 2019 the national minimum wage :expires after five years, and it shall be reviewed in line with the provisions of this Act.

“Since the commencement date of the Act was the 18th day of April 2019, the national minimum wage of N30,000 has since expired. Hence, the Minister of State, Ministry of Labour and Employment, Nkeiruka Onyejeocha, announced during the last May Day rally in Abuja that the new national minimum wage would take effect on May 1, 2024.
‘’Following the removal of fuel subsidy last year, the Federal Government announced an additional N35,000 wage award (wage subsidy) for six months, starting from September 1, 2023.

‘’During the 6 months, the total monthly wage payable to a worker was N65,000. In the same vein, the various state governments awarded various sums as wage subsidies to their workers. Both Lagos State and Edo State Governments have since announced a minimum wage of N70,000.

‘’Curiously, the federal government turned around to offer a minimum wage of N48,000. Hence, the Nigeria Labour Congress and Trade Union Congress have embarked on an indefinite strike due to the failure of the federal government and other employers of employment to pay a realistic new minimum wage to Nigerian workers.
‘’However, it has been reported that the leaders of the National Assembly have intervened in the planned strike. ’The National Assembly should, therefore, pass speedily a new National Minimum Wage Act like the new National Anthem Act that was enacted within 48 hours, last week,’’ he said.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Borrowing details

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

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

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

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

Interest rate hike

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

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

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

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

Analysts’ comments

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Evolution of Nigeria’s Minimum Wage

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

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

The First National Minimum Wage Law

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

Subsequent Revisions

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

2000: Increased to N5,500.

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

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

The Current Debate

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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