Politics |

June 14, 2024

June 14, 2024 IFMNEWS

World Bank Approves $2.25bn For Economic Reforms In Nigeria

The World Bank has sanctioned a $2.25 billion loan for Nigeria aimed at stabilizing its economy through reforms and bolstering assistance to the impoverished. Wale Edun, Nigeria’s Finance Minister, revealed this development on Thursday. In April, Mr. Edun had previously announced Nigeria's qualification for and intention to secure the $2.25 billion loan from the World Bank. The loan is anticipated to play a crucial role in supporting Nigeria's economic recovery efforts amidst ongoing challenges.

According to a statement from Mohammed Manga, spokesperson for the Ministry of Finance, the approved funding encompasses $1.5 billion allocated to the Nigerian Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing Programme (DPF) and $750 million for the Nigeria Accelerating Resource Mobilisation Reforms (ARMOR) Programme-for-Results (PforR). This total of $2.25 billion is set to provide essential financial and technical assistance as the government continues to address economic imbalances.

The statement highlights that these funds will aid Nigeria in its objectives to boost non-oil revenues and ensure fiscal sustainability, enabling the delivery of high-quality public services. Mr. Edun expressed gratitude for the World Bank's support and stressed the importance of these reforms in achieving sustainable and inclusive economic growth, generating jobs, and creating economic opportunities for all Nigerians.

He noted that the RESET initiative aims to strengthen Nigeria’s economic policy framework, create fiscal space, and protect vulnerable populations. Meanwhile, the ARMOR PforR program will support tax and excise reforms, enhance tax revenue and customs administration, and safeguard oil revenues.

Ousmane Diagana, the World Bank’s Vice President for Western and Central Africa, commended Nigeria’s efforts in reshaping its economy, emphasizing that comprehensive macro-fiscal reforms could stabilize the economy and reduce poverty. Diagana underscored the importance of sustaining these reforms and continuing to support vulnerable populations to mitigate the impact of the cost-of-living crisis.

June 14, 2024

June 14, 2024June 14, 2024 IFMNEWS

The Association of Local Government of Nigeria Expresses Concerns Over Proposed N62,000 Minimum Wage

The Association of Local Government of Nigeria (ALGON) has voiced apprehension regarding the proposed N62,000 minimum wage, warning that its implementation could significantly strain the financial capacities of local councils across the country.

Recently, the Federal Government cautioned organized labor about the broader economic ramifications of pushing for what it termed an unrealistic hike in the national minimum wage. Minister of Information and National Orientation, Mohammed Idris, emphasized that the suggested N250,000 minimum wage demand by labor unions could potentially destabilize the economy, trigger mass layoffs, and jeopardize the welfare of Nigerians.

Contrary to President Bola Tinubu’s assertions during his Democracy Day address that an agreement had been reached on the new national minimum wage, labor unions disputed this claim.

Speaking on a monitored program on Thursday, ALGON National President Aminu Muazu-Maifata expressed skepticism about the feasibility of local governments meeting the proposed N62,000 minimum wage. He highlighted that many of the 774 local government areas (LGAs) are still grappling with the payment of the current N30,000 minimum wage approved in 2019.

"The current allocation from the Federation Account is inadequate for local government councils to meet the proposed N62,000 minimum wage," Muazu-Maifata stated. "Currently, approximately 90% of our revenue from the Federation Account is allocated to salaries and pensions. Without a revision in the allocation percentage to local governments, it will be exceedingly challenging, if not impossible, to meet the proposed wage increase."

He further elaborated, "Local government councils presently receive slightly over 18% of the total Federation Account Allocation Committee (FAAC) funds, whereas the federal government receives over 52%. Some councils are still struggling with the N18,000 minimum wage and have not yet fully implemented the N30,000 wage. With the current allocation structure, local governments simply cannot afford an increase to N62,000."

Muazu-Maifata, who also serves as chairman of Lafia Local Government in Nasarawa State, emphasized that local governments shoulder numerous responsibilities beyond salary payments. He advocated for a comprehensive consideration of these obligations when evaluating the affordability and sustainability of any proposed minimum wage increase.

In conclusion, Muazu-Maifata underscored that should the proposed minimum wage legislation be enacted, local governments would have to seek financial assistance from governors and the Federal Government to bridge the funding gap.

June 14, 2024

June 14, 2024June 14, 2024 IFMNEWS

Reps Panel Suggests New Aircraft Purchase for Tinubu, Shettima

The House of Representatives Committee on National Security and Intelligence has recommended that the Federal Government purchase new aircraft for President Bola Tinubu and Vice President Kashim Shettima. This suggestion is detailed in a report released after the committee's investigation into the current status of the aircraft in the presidential air fleet.

The report states, "The committee is firmly convinced that, given the fragile structure of the Nigerian federation and the significant risks of any potential technical or operational failures within the presidential air fleet, it is in the country's best interest to procure two additional aircraft. This will be cost-effective in the long run and provide a suitable, comfortable, and safe carrier befitting the offices of the president and vice-president of the Federal Republic of Nigeria."

In May, the House of Representatives tasked the committee with conducting a "comprehensive investigation" to assess the airworthiness and technical status of the presidential fleet. This resolution came after Satomi Ahmed, chairman of the House Committee, sponsored a motion addressing concerns over the fleet's condition.

The motion sparked intense debate in the House, with some lawmakers suggesting that the president should travel using commercial aircraft or by road. Ahmed's motion was influenced by reports of faulty aircraft within the presidential fleet, which had previously forced the president to charter a plane from the Netherlands to Saudi Arabia during an international trip.

June 13, 2024

June 13, 2024 IFMNEWS

June 12: Peter Obi Commends Tinubu for Fulfilling Campaign Promises

Presidential candidate of the Labour Party (LP) in the 2023 general elections, Peter Obi, reaffirmed that President Bola Ahmed Tinubu has delivered on his campaign promises to Nigerians. Obi made these remarks during a Democracy Day discussion on Arise TV.

During his election campaign, Tinubu pledged to build a Nigeria that prioritizes youth empowerment, promising ample job opportunities with fair wages to enhance livelihoods. He emphasized the country's potential to manufacture, innovate, and reduce dependence on imports, aiming to strengthen the economy and stabilize the national currency.

Obi, who competed against Tinubu and finished third according to the Independent National Electoral Commission (INEC), acknowledged that Tinubu has upheld his commitment to follow in the footsteps of his predecessor.

"I believe President Tinubu has performed exceptionally well in his first year in office. I would say that he has fulfilled his campaign promises," Obi stated. "Throughout his campaign, he consistently emphasized continuing from where Buhari left off, and he has done so admirably."

The dollar was N450, it’s now N1500. Fuel was about N238, it’s now about N700; diesel was N844, it’s now N1415; a bag of rice was N30000-N35000, it’s now about N80,000; a bag of beans was similar, N30,000-35000, it’s now about N90,000; a tuber of yam was about N2000-N3000, but now it’s about N10,000; tomatoes basket was about N40,000 and now it’s about N150,000; electricity was N66 per kilowatt but now it’s about N200, you can go on and on. “Even bread, which is a basic thing other countries are subsidizing, small-medium bread was about N450 but is now N900. The big one is about N1500.”

Tinubu's broader promises included support for farmers, enhancing public infrastructure, empowering youth and women through emerging sectors like the digital economy and tourism, ensuring affordable healthcare, education, and housing, and implementing robust national security measures to combat extremism and crime.

The assessment by Peter Obi underscores his perspective on Tinubu's governance and the fulfillment of his electoral pledges in his initial year as President.

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