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Some Nigerian lenders are voluntarily increasing staff compensation to enable workers cope with higher costs of living, following government reforms that exacerbated inflation.
Guaranty Trust Holding Co. and Wema Bank Plc have already boosted pay, while Access Holdings Plc — the country’s largest lender — is working on a similar measure, according to spokespeople for the companies.
At Guaranty Trust, raises were “given according to the different cadres of staff, with the highest consideration given to junior staff,” said Oyinade Adegite, the lender’s spokesperson, without mentioning the percentage. Wema Bank said it hiked pay by 45% for all staff.
Nigeria has faced soaring costs since President Bola Tinubu eased currency restrictions and eliminated gasoline subsidies after taking office in May.
In the meantime, the naira has plunged by about 40% against the US dollar and the cost of gasoline has more than tripled. Inflation in the country hit a seven-year high in June, and the government declared an emergency due to surging food prices earlier this month.
Unionized workers in Nigeria are in discussions with the government over how to ease the cost burden, though no action has been taken yet. Meanwhile, some banks are raising salaries to retain staff following a previous exodus of talent.
“When employees are happy with their work conditions, they are more intentional in carrying out their duties, producing better results,” said Mabel Adeteye, head of brands and marketing communications at Wema Bank.
STOCK UP ON FOOD, MEDICINES; LIMIT YOUR TRAVELS, LABOUR ADVISES NIGERIANS AS NATIONWIDE STRIKE LOOMS
The Federal Government will on Monday meet with the representatives of the organised labour in an effort to prevent the nationwide strike called by the Nigeria Labour Congress.
However, the NLC has advised citizens to stock their homes with food items, medicines and other essential things ahead of the commencement of its seven-day strike to protest the removal of fuel subsidies and the escalating cost of living in the country.
The warning, it noted, had become necessary because the strike would cripple the country as movement would be severely curtailed as commercial transport operators would withdraw their services, while markets, schools and healthcare facilities would be forced to shut down.
Assistant General Secretary, NLC, Chris Onyeka, said in an interview that the citizens should also minimise their movements so as to avoid being stranded.
NLC has given the government a seven-day ultimatum with threats of a nationwide strike scheduled to commence on Wednesday, August 2, 2023. The labour movement in a statement signed by its National President, Joe Ajaero, accused the Tinubu-led Federal Government of failing to meet up with the demands it presented to it following the removal of the subsidy on Premium Motor Spirit, popularly known as petrol, which caused an astronomical rise in the pump price of the commodity.
Following the announcement of the strike by the NLC, the government team immediately called for an emergency meeting with the organised labour comprising the NLC and Trade Union Congress with a follow-up meeting on Friday at the State House.
However, officials of the organised labour angrily stormed out of the meeting following the alleged failure of the government team to show up.
Onyeka noted that the labour team would meet with the government on Monday, adding that the outcome of the meeting would determine the next step.
He said, “Nigerians should be prepared. That’s what we are saying. Being prepared means you have to stock food in your house and be economical with your movement at this particular point in time so as to avoid being stranded. It is going to be a nationwide mass protest and we are sure that it will affect every corner of the country. We are seriously mobilising across the nation. We are currently at work at the secretariat alongside the CSOs.
“We may not shut down the power supply system, but as the protest goes on, we may shut down other places depending on the response of the government. The (Friday) meeting didn’t hold at all. The government side was not prepared. The representatives were not available. They didn’t show any seriousness towards what they were doing. One of the things we do is hold dialogues. We don’t run away from the table anytime they call us. We are having another meeting with them on Monday.”
Nigeria Union of Petroleum and Natural Gas workers, and the National Union of Electricity Employees, on Saturday, confirmed that they were mobilising their members to ground the supply of fuel and the national electricity grid from Wednesday in response to the planned mass protest called by the NLC.
General Secretary, NUPENG, Afolabi Olawale, said, “The congress has taken a unanimous decision and it is mandatory that every affiliate should obey the directive of the Nigeria Labour Congress.”
When probed further to confirm if NUPENG was mobilising its members to halt the lifting of petroleum products, Olawale replied, “That’s it. I’ve given you an answer.”
On their part, electricity workers stated that they would shut the national power grid as it was binding on all employees in the sector to join the mass protest.
The acting General Secretary, NUEE, Dominic Igwebuike, stated, “The NUEE is an affiliate of the NLC and I’ve told you that we will join the strike action.
“The issue is that if there’s a deadlock between labour and the government; that means that the mass protest is still going on, and definitely electricity workers, as an affiliate of the NLC, will partake in the mass protest.
“So, all workers in the power sector will join the mass protest on Wednesday, August 2, 2023. It is binding on every staff member to join the strike action. So, if it results in a blackout, the only option is for the government to listen to us if it wants power to return.
“The government should listen to the Nigerian masses who are going through serious suffering right now. That is the only thing we are asking for. So, for now, the protest is going to hold, unless there is a further directive from the NLC.”
National Deputy President, TUC, Tommy Etim, blasted the government over the lack of seriousness shown so far with regard to the negotiations.
“When we got to the Villa on Friday, we waited for almost two hours at the gate for clearance with no intervention. It was after two hours that we were allowed in. By the time we got to the point of the meeting, we realised that the team representing the government failed to show up. So, it is wrong to actually say labour stormed out of the meeting. How can labour storm out of a meeting that did not hold? We felt very disappointed because we did not expect this from the government,” he said.
National Executive Council of the NLC had on Friday endorsed the August 2 nationwide strike and mass protests proposed by the body over the recent hike in the pump price of petrol.
However, the Federal Government had told the NLC that it was legally restrained from embarking on the planned nationwide strike due to the ruling of the National Industrial Court, which restrained organised labour from embarking on the strike.
The steering committee members met the government delegation on Wednesday, where the two parties agreed to reconvene on Friday to get a brief from the government’s subcommittees on mass transit, compressed natural gas and cash transfer.
The steering committee was set up by the Federal Government to draw up intervention plans to cushion the effects of fuel subsidy removal on Nigerians.
• Decry Delay Of Interventions, Repair Of Refineries
• Pregnant Mothers Skip Antenatal Care Over High Transport Fare
• CLO: Current Hardship Orchestrated To Punish Nigerians
Exactly two months after President Bola Tinubu removed subsidy on petrol and said the decision would free up money for education, regular power supply, transport infrastructure and healthcare, Nigerians have started lamenting that they are yet to feel any positive impact of the policy, according to a Guardian report.
Among their complaints is that life has rather become more miserable for them. They criticised the president for ‘foisting an anti-people economic policy’ on the country.
Tinubu had during his inaugural speech at the Eagle Square on Monday, May 29, after he was sworn in as Nigeria’s 16th president, stated that the 2023 budget made no provision for fuel subsidy, adding that subsidy payment was no longer justifiable. He promised that his government would instead channel funds into infrastructure and other areas to strengthen the economy.
However, two months after, Nigerians have assessed their lives and concluded that they were far better off two months ago, as it was becoming increasingly difficult for them to attend to their needs and those of their loved ones.
They urged the president to either reverse the policy immediately or fix the nation’s refineries for local refining of petroleum products to bring the pump prices within the reach of the average citizen.
Coordinator of the Arewa Defence League (ADL), Murtala Abubakar, in Kaduna, said the policy had thrown thousands of families in the northern part of the country into severe hardship.
“A lot of our members who are professionals, artisans, traders, civil servants and businessmen can no longer afford three square meals because of the decision of Tinubu to remove subsidy on fuel at a go.
“It is unfortunate that the government that is supposed to ameliorate the suffering of Nigerians is imposing more hardship on us. Imagine the situation we now find ourselves. Instead of the government to go after those who stole subsidy funds, bring them to book and make them to return the money they stole, the government is leaving them to go away freely and imposing hardship on the citizens.
“In a sane society, the subsidy thieves are supposed to be behind bars by now. But this government is shielding them away from prosecution and from returning the money in their possession, which they stole.
“Go to the streets of Kaduna, there are more beggars. People are also selling their properties for survival. People can no longer afford essential foodstuff because prices have skyrocketed and their income is stagnant,” Abubakar said.
A trader and businessman, Alhamdu China, who operates a barber’s shop in Barnawa area of Kaduna, said the removal of fuel subsidy had affected businesses in the state.
“Even the barber’s shop that we are operating is no longer breaking even because our customers are no longer patronising us. This is because we had to increase our prices as a result of high cost of petrol, which we use to power our generators.
“The government should help us, because we don’t have other means of survival apart from this work we are doing. And we have to feed our children, pay school fees and also cater for our domestic needs. This removal of fuel subsidy has killed businesses, and is even sending many people to their untimely graves.
“Go to the hospital, you will see that the number of sick people have increased. And where is the money to buy drugs and food? The price of everything has increased. The government should help Nigerians and solve these problems of poverty and hunger in the land. They should repair our refineries and make them work to make the price of fuel to come down.”
Amina Mustapha took her 15 months malnourished daughter to the Primary Health Care Centre (PHCC) in Duguri, Alkaleri Council of Bauchi State to get the Ready-to-Use Therapeutic Food (RUTF), a life-saving essential supply item that treats severe wasting in children under five years, but was told that the food was out of stock. The thought of a fruitless journey overwhelmed her as she was contemplating the next visit. Her community, Yalo, is about 25 kilometres from Duguri and she boarded a truck conveying goods to the area to be able to visit the health facility.
“I will need N1,000 for okada (commercial motorcycle) back home or wait till evening when people will be returning from the market,” she said. Her daughter was ostensibly hungry and crying but Amina was helpless. “I will trek because my baby is hungry and I don’t have any money on me to feed her,” she said when asked to attend to the crying baby.
A staff of the clinic, Yahaya Duguri, said most of the patients, particularly pregnant women and nursing mothers, were skipping their antenatal care and immunisation schedules due to high transport fare.
“Their number has reduced compared to what we normally record. Most of them are complaining about the hike in transportation fare. You know most of them are from neighbouring communities. They have to hire a bike,” he said.
The situation is not different at Yelwa Domiciliary PHCC in Bauchi metropolis. One of the auxiliary health care providers, Umar Mohammed, said: “Before, as early as 5:00am you would see so many of them here to pick numbers because of the crowd. Sometimes we attended to more than 300 women. This is about 9:30am and we have less than 150 of them.”
According to him, many of the women lament the high cost of transporting themselves to the clinic. Hanatul Luka was seen at Bayara General Hospital with her antenatal care card arguing with a commercial motorcyclist over the sudden hike in fare.
“Things are really hard. I came here for antenatal with my last N500. I only drank pap this morning. Now, this N500 won’t take me home. This is a distance that I used to spend only N250. How do I come next time for the next antenatal?”, she lamented.
Ruing the situation, Executive Director of the Civil Liberties Organisation (CLO), Ibuchukwu Ezike, said it was wrong for anyone to believe that the current hardship in the country is a result of the removal of fuel subsidy.
To him, the increase in the pump price of petrol is not a result of removal of fuel subsidy, because there has never been a subsidy on fuel in the country. He said the current hardship was orchestrated to punish Nigerians.
“CLO does not belong to the school of thought that believes that petroleum products are subsidised for Nigerians since after 1989 when the Ibrahim Babangida junta removed the subsidy on the commodity. The Nigerian students under the umbrella of the radical National Association of Nigerian Students (NANS), Nigeria Labour Congress (NLC), Nigerian Bar Association (NBA), Academic Staff Union of Universities (ASUU), the radical press, Nigeria Medical
Association (NMA), human rights associations and leftist organizations then came together to oppose the withdrawal of the subsidy and criminal increase in the pump prices of these products.
“The prices were not increased irrationally, the government introduced some programmes that cushioned the grave effects of subsidy removal from petrol. The protest was tagged anti-Structural Adjustment Programme (Anti- SAP) protest of 1989. Anti-SAP buses were provided for workers, students, professional associations like the NBA, NMA, farmers’ unions and the general public, while there was no increment in school fees, prices of foodstuffs, rents and household goods, but there was increase in salaries of workers. Since that period, there has not been any incident of re-introduction of oil subsidy in Nigeria, rather what we started witnessing was the collapse of oil refineries in the country and the shipping of crude oil out of the shores of Nigeria to be refined in countries where our corrupt and ruthless rulers were said to have built refineries. It was also this time that an independent marketers union was erected to do oil business on behalf of the members of the thieving civilian and military political classes. During this period, the government started paying them for shipping crude oil overseas, and the cost of refining and shipping the products back to Nigeria. This money, known as subsidy, is paid to the marketers and not to the Nigerian people who, thereafter, make returns to our wicked and unconscionable rulers.”
Ezike lamented that the increment in the pump prices of petroleum products had resulted in astronomical hike in the cost of living.
“In fact, everything is adversely affected and the standard of living has gravely fallen. There are increasing cases of social vices like prostitution, armed robbery and joblessness as private employers that can’t cope with payment of staff salaries and allowances and maintenance of offices have downsized their staff strength. The list is inexhaustible,” the CLO official said.
A communications expert, Maxwell Ngene, while commenting on the situation in the country, stated that Nigerians had witnessed unprecedented hardship, noting that, “it has also led to food inflation, devaluation of the naira and low purchasing power.”
According to Ngene, who is a lecturer in the Department of Mass Communication, Enugu State University of Science and Technology (ESUT), the last two months has brought Nigeria and her people to their knees.
“Nigerians are very angry and frustrated about the policy. It has led to the worst economic mess ever witnessed in the country since independence. Unfortunately, it portrays the president as an unprepared, unpatriotic, unresponsive and incompetent leader who does not care about public opinion. Since the removal of fuel subsidy, the country has witnessed unprecedented hardship occasioned by food inflation, devaluation of the naira, poor purchasing power, youth restiveness, intolerable living conditions, unemployment, widespread violence and criminality.
“The more troubling thing about fuel subsidy politics is that critics say that it is a scam orchestrated by the power elite. Those who are indifferent also see it as a policy unlikely to benefit Nigerians in the long run. This group of people thinks that the government will mismanage or steal whatever financial gains would stem from it. There’s not just a trust deficit but also a complete collapse of trust. The people do not trust the leaders. What is even more worrisome is that the extremely poor households are the worst hit in a nation that prides itself as the giant of Africa. The salary of civil servants no longer has meaning. The unemployed school leavers seem to have lost hope in the government and the nation. Most of them are now resorting to doing anything, including engaging in criminal activities just to survive.
“The solution, for me, is to revert to where we were before the removal. Efforts must be made to refurbish our ailing refineries and new ones built. If Aliko Dangote can build a refinery, there is no reason a country like Nigeria cannot do so,” Ngene said.
In an open letter to Tinubu titled, ‘Your Withdrawal of Fuel Subsidy by Fiat was Heartless, Reckless and Ill Informed’, which was made available to The Guardian, yesterday, a chieftain of the Peoples Democratic Party (PDP) in Lagos State, Adetokunbo Pearse, said those who believed that the President would run a gregarious administration based on his experience as a former governor of Lagos State for eight years and his much celebrated political sagacity had been proven wrong with the policy.
Pearse berated Tinubu for removing the fuel subsidy “without discussion, without negotiation and without consultation”, adding that “the devastating effects of the subsidy removal is that every aspect of daily life will be impacted adversely due to astronomical increase in cost of living.”
According to him, the President has not only unleashed economic hardship on the people “but you have set the nation into panic mode.” Also, the Lagos State Chapter of the Labour Party (LP), yesterday, lamented the effect of fuel subsidy removal on Nigerians, saying the Tinubu administration was clueless on economy management.
The state chairman of the party, Dayo Ekong, who noted that more people are slipping into abject poverty, bemoaned the level of inflation and devaluation of the currency in just two months Tinubu has stayed in office.
Ekong, in a statement, disclosed that the party was working to help youths and other vulnerable groups acquire requisite skills that would stand them in good stead in the society.
“Lagos State Labour Party, in alliance with our national body, expresses shock over the hike in price of petrol by this insensitive administration of Tinubu/APC. The government takes delight punishing instead of making life easy for the people.
“We sympathise with the masses who bear the heaviest brunt of the obnoxious price hike and assure that the LP Presidential candidate, Peter Obi, will bring succour to Nigerians when his mandate is recovered. It is just for a while.”
Central Bank of Nigeria extended its longest phase of monetary tightening to tame inflation, disregarding a call by President Bola Tinubu for borrowing costs to be lowered.
The monetary policy committee raised the benchmark rate by 25 basis points to a record 18.75%. The median of 17 economists surveyed by Bloomberg expected a 50 basis-point increase.
The meeting was the first presided over by acting Governor Folashodun Shonubi, who last month replaced Godwin Emefiele following his arrest on charges of illegally possessing a firearm. Tinubu, who has implemented several reforms including ending fuel subsidies and liberalizing the foreign-exchange market since he took office in May, has said that high interest rates are stifling economic growth and should be lowered to encourage spending.
The balance of arguments around the need to fight inflation, while also supporting investment and a recovery in economic growth, “leaned in favor of a moderate rate hike to sustain efforts aimed at anchoring inflation expectations, narrow the negative real interest rate gap and improve investor confidence,” Shonubi said in Abuja, the capital.
Nigeria Rate Hike Smallest in Current Tightening Cycle
CBN’s MPC has lifted rates in eight straight meetings
The yield on the nation’s 10-year dollar bonds extended an earlier decline after the decision, falling seven basis points to 10.65% by 5:40 p.m. in Abuja. The rate on the nation’s 2027 debt eased six basis points to 9.92%.
The MPC said it expects the economy to grow 2.66% this year, down from a forecast of 3% in May. Tinubu’s administration is targeting growth of at least 6% a year.
The decision to hike was split. Of the 11 MPC members who attended the meeting, four voted for a 25 basis-point hike, two favored a 50 basis-point increase and the rest preferred a hold.
Rising Inflation
The MPC has increased rates by 725 basis points since May 2022 to rein in inflation that’s been at more than double the top end of its 6% to 9% target range for over a year. Consumer prices rose 22.8% in June — the fastest pace in almost 18 years. The inflation rate has been kept high by rising food prices and is expected to remain elevated for some time.
Money supply rose 32% in June from a year earlier, compared with 14% in May, and gasoline prices have more than tripled since the scrapping of the fuel subsidy. The currency has meanwhile dropped about 40% against the dollar after the easing of foreign-exchange controls last month.
All MPC members also voted to narrow the central bank’s asymmetric corridor, which means the cost at which lenders borrow is at 100 basis points above the monetary policy rate, and the return on their deposits at 300 basis points below the benchmark.
Central Bank of Nigeria (CBN) says plans to gradually phase out the old N200, N500, and N1,000 naira notes are ongoing, as new notes are still being issued.
Folashodun Shonubi, acting governor of the apex bank, spoke on Tuesday after the monetary policy committee (MPC) meeting at the CBN headquarters in Abuja.
In October 2022, Godwin Emefiele, former CBN governor, announced plans to redesign the N200, N500, and N1,000 naira bills.
Emefiele had asked Nigerians to deposit their old notes before January 31, 2023, when they would cease to be legal tender.
The CBN later said Muhammadu Buhari, the former president, had approved an extension of the deadline for the demonetisaton of the old notes.
But in March 2023, the Supreme Court invalidated the naira redesign policy introduced by the central bank, ruling that the old N200, N500, and N1,000 notes would remain as legal tender until December 31, 2023.
Providing updates on the demonetisation policy on Tuesday, Shonubi said the old notes would “slowly, and overtime be replaced”.
He noted that the old notes were being exchanged for the new ones whenever it was being requested by the commercial banks.
“When a currency is printed and sent out. It is expected that it will go through a number of cycles, and then over time, will become one and then be replaced. That’s what we’re doing,” Shonubi said.
“We had to put out or re-put out old notes. And as they’re coming in, they’re being processed and returned to us as not issuable. We are then bringing out and replacing them with the new notes.
“We believe that we have an optimal level of the currency out there and so much of what’s being done is replacement to keep the level, rather than just putting money out there.
“And that is seen by the fact that the banks, whenever they come to us for notes, we provide it to them. If it wasn’t enough, they will be asking us for more. If it was too much, they’ll be dumping that much more on us.
“So, we will slowly, and over time you will see the old notes replaced out of the system with the new notes that’ll be the norm.
“This will be out of practice, not fanfare, you’ll just see it slowly move from old to new.”
Civil Society Groups flooded major streets in Benin City, Edo State on Monday, to protest the recent increase in price of petrol and nationwide hardship.
The groups under the aegis of the Edo Civil Society Organisations lamented the high cost of governance exhibited by politicians, at the expense of the poor Nigerians.
According to the groups, the federal government ought to have provided palliatives that would cushion the pangs of fuel subsidy removal before implementing it.
Recall that the Nigerian National Petroleum Corporation Limited, last Tuesday, increased the prices of petrol to N617 per litre in Abuja, while other places like Lagos are selling at N550 above.
In his inaugural speech, President Bola Tinubu had declared an end to subsidy of fuel, and this jerked the litre of petrol from N197 to above N500 across the country.
Tinubu, in his bid to ameliorate the sufferings of Nigerians, proposed to give N8,000 to 12 million households for six months, a measure that was suspended after a barrage of criticisms.
Reacting to all of these, the protesters took to the streets in Edo, carrying several placards bearing different captions like ‘FG Fix Our Refineries’, ‘Kill Corruption, not Nigerians’, ‘Poor Nigerians Lives Matter’, ‘We Say No To Constant Increment In PMS’, ‘How Did NNPCL Become Fuel Price Requlator’ ‘N8,000 Palliatives, and ‘What An Insult’ among others.
Nigerians are faced with hardship currently as the increment in the prices of petrol has adversely affected the cost of living including transportation, food, and other goods and services.
Groanings occasioned by the removal of the fuel subsidy grew louder on Monday as the Nigerian Labour Congress said it was ready to fight the economic pains and hardship caused by the Federal Government’s decision, the Punch has reported.
Also, university workers under the aegis of the Senior Staff Association of Nigerian Universities, the University of Lagos chapter of the Academic Staff Union of Universities, Congress of University Academics and protesting members of the Edo Civil Society Organisations lamented the subsidy removal and it attendant pains. The varsity unions decried the situation, saying the subsidy was ’unintelligently removed.’
National Assistant Secretary, NLC, Chris Onyeka, said the Central Working Committee of the congress would hold an important meeting today and take a position.
He said all issues around the suffering of the masses because of the recent price hike in PMS price would be addressed at the meeting.
“We are going to give the Federal Government an ultimatum. We have given them enough leverage to take care of Nigerians and make amends, but they have refused to make amends. Let them prepare themselves because we are preparing. We are ready to fight back,” he said,
Meanwhile, the Trade Union Congress has faulted plans to allow state governments to roll out palliatives to citizens to cushion the effects of the hardships caused by the removal of fuel subsidy.
President Bola Tinubu had during his inaugural address on May 29 announced the end of the fuel subsidy regime which instantly shut up the pump price of Premium Motor Spirit popularly known as petrol from N165 per litre to N540. The product currently sells for between N568 and N617 per litre.
Speaking on the economic pains brought about by the fuel hikes, National President, Senior Staff Association of Nigerian Universities, Ibrahim Mohammed, on Monday, explained that no specific progress had been recorded since the fuel subsidy was removed, adding that Nigerians were in anguish and distraught.
He noted, “The government removed the subsidy very unintelligently; now that they have removed the subsidy, nothing has changed except that people can’t feed, we can’t pay our children’s school fees, and people are committing suicide.
“We lamented the way the government handled this idea of subsidy removal; we welcome the removal if that will be the solution to Nigeria’s problems. But the government is not strategic with the removal, you have thrown people into anguish, into the wild forest and people are scampering.”
Elaborating on the impact of the fuel price hike on university workers and students, he said, “Most university campuses are located on the outskirts and people have to commute 15km to 20 km. How can work be done when a full tank can no longer last a week?”
He lamented that the government had yet to settle four months’ salary, stressing that none of its promises had been fulfilled.
Mohammed added, “Salary not reviewed and other promises made by the past government are not being fulfilled. They are owing us four months’ salary; the revitalisation funds have not been paid.
“If they feel the plight of Nigerians and of university staff, they will fulfil all their promises and meet up with the commitment of Earned Allowance and review salaries so that people can face their jobs. All civil servants have been exposed to hardship, so how can they stop corruption?”
Also speaking, Chairman, ASUU, University of Lagos chapter, Kayode Adebayo, revealed that due to the fuel subsidy removal, living in Nigeria was now tough for lecturers as it was for every Nigerian.
He called on the government to galvanise the system and put smiles on the faces of the citizens.
Adebayo added, “All lecturers are paid peanuts; this was part of the reasons we fought against the government about the 2009 agreement. We tried to negotiate; no need to pretend, the situation is still the same. Just as it is tough for ordinary Nigerians, so it is tough for us too.
“Government is responsible for the security of the citizens. The citizen welfare has been compromised. The government needs to put a smile on the faces of Nigerians. Nigerian citizens are hardworking and understanding and that is why we say Nigerians are the most docile people in the world.
“The government needs to look at the plight of the citizens. We have what it takes to build a country that everybody will be proud of, not people who will finish (graduate) here and be looking abroad for greener pastures.”
He also said that the Federal Government was indebted to ASUU, saying it had refused to settle the seven and a half month’s salary incurred when the union members went on a strike last year.
Adedeji Oyenuga of the Department of Sociology, Lagos State University, Ojo, said, “I have been spending more, a lot more. For my children’s car, I bought N7,000 (fuel) per week. The first increment made it N15,000 per week, but now, I do N18,000 per week with no guarantee that it would last the week. I used to fill my car tank with between N12,000 and N13,500 fuel. It rose to about N40,000, but is now N50,000.”
In Benin City, Edo State, citizens took to the streets on Monday to protest the increasing hardships imposed by the fuel subsidy withdrawal which had led to sharp hikes in fuel pump prices as well as an increase in prices of goods and services.
But expressing concern over the planned rollout of palliatives by the states to cushion the subsidy removal, the Trade Union Congress said it did trust state governors to manage the process well.
He was speaking against the backdrop of plans by the National Economic Council comprising 36 state governors and Vice President Kashim Shettima to allow state governments to implement the cash transfer programme for N12million Nigerians using state-generated social registers.
Addressing journalists in Abuja on Monday, TUC President, Festus Osifo, stated that the governors had not been specific about what they intended to do.
He said, “The Nigerians Governors Forum invited us for meetings and we made our case known to them. There is nothing specific about the palliative, they said each state should go back and look at what they could do. There is nothing concrete, there is nothing we can hold them accountable for.
“If you are coming out to say each state should pay a certain amount of money as wage award or each state should give some categories of workers tax relief, we can hold you accountable on that and not say each state should go and do according to their purse. That is not it. What they must bring to the table must be specific and measurable and must be done transparently.’’
Continuing, he noted, “For us, anything called palliative must be things we can verify and not something that you will promise us and at the end of the day you will not implement. We all remember during Covid-19 when palliatives were in warehouses and people were dying on the streets.
“We do not trust the process. The Governors’ Forum should do better. They are talking about mass transits, how many are they bringing up, let them tell us and we will empower our state councils to follow up.“
Condemning the hike in tuition fees, he cautioned the government against any policy that could render workers’ salaries useless.
He added that the student loan, which according to him had stringent provisions, should not be a yardstick to increase tuition fees.
Osifo said, “Also, we understand that our tertiary institutions are in a sorry state. We call on the government to be mindful of policies that would erode the take-home pay of Nigerian workers by introducing all manners of tuition fees from the Unity Schools to tertiary institutions.
‘’We understand there is a student loan but if you look at the provision of the law, students of any household where the parents are earning the N30,000 minimum wage cannot qualify for it. It clearly shows they are not willing to give the loan to anybody. There are other stringent conditions attached to it. For us, this should not be a yardstick to start increasing fees drastically.“
Osifo further rejected the proposed 7.5 per cent Value Added Tax on diesel, adding that affiliate unions had been placed on alert to monitor the activities of the government in that regard.
He said, “We also say no to the proposed 7.5 per cent VAT on AGO. It has been deregulated and the market forces are what determine the price. Today, if you introduce the VAT on AGO, we should be ready that this similar VAT will be introduced to PMS.
“As of today, they are listening but we have communicated with some of our affiliates that are directly responsible for this to continuously monitor if the government wants to introduce this through the backdoor.”
He also called on the government to ensure that the planned increase in electricity tariff does not see the light of day.
He warned that Nigerians’ endurance level was getting to the limit, advising the government to be mindful of the timing of some of its policies.
“You will be adding salt to people’s injuries if you increase the electricity tariff. Nigerians’ endurance level is getting to the limit. It may get to a point that Nigerians would not be able to take this anymore. When you are bringing about policies even when the policies are the best, you must look at the timing and how to phase them out for you not to make the citizens suffer,’’ the labour leader cautioned.
While commending the president for suspending the proposed excise duty on telecommunications in the country, he called on the president to scrap it.
He also called on the National Assembly to remove the item from the Finance Act.
Osifo, however, called on the government to come up with policies that would support the country’s exchange rate.
Travellers are expressing their disappointment and frustrations as airfares continue to skyrocket, making it increasingly difficult for individuals to embark on their desired trips. The rising costs, coupled with economic uncertainties, have left many passengers in a state of dismay, the Punch has reported.
About two weeks after President Bola Tinubu promised to unify the nation’s multiple exchange rates, the apex bank decided to float the naira at the Investor’s and Exporters’ Window of the foreign exchange market. Since then, the naira had fallen from N471/dollar to N867/$.
With this development, Nigerians, particularly, intending international students hoping to resume school in September, had been greatly impacted by the unpredictable fluctuations in foreign exchange rates.
The prices of air tickets had skyrocketed, making it increasingly difficult for Nigerians to travel, especially when compared to neighbouring countries such as Benin and Ghana, where airfares are notably cheaper.
The current policy of floating the Naira had done little to alleviate the situation. As the exchange rate continued to rise, most foreign airlines’ funds were trapped within Nigeria, due to a scarcity of dollars in the market. This scenario created a problematic landscape for Nigerians who depended on reasonably priced flights to go about their business.
In Abuja, Ade Johnson, a potential traveller, noted that although he had not yet booked his flight, he had noticed a significant increase in prices compared to a few months earlier.
He disclosed that many Nigerians had started exploring alternative options. One popular choice was to travel via the Benin Republic, where airfares were considerably cheaper. Additionally, the proximity of Benin Republic to Lagos, with a travel time of less than an hour, mades it an enticing proposition for cost-conscious travellers.
He said, “Though, I have not booked my flight, prices have gone up compared to what was obtainable some months ago. Lagos to London was around 350k in May for the airline I booked, but the same route goes for 750k or more now.
“The best alternative option is to travel through Benin republic where air tickets are cheaper and it’s less than an hour drive from Lagos.”
Moreover, the Fx situation had created additional challenges for Nigerian students, including increased payment for tuition fees, visa expenses, the International Health Surcharge, and the need to provide proof of funds for maintenance and upkeep.
Previously, Nigerian students utilised Form A for tuition payments, which was pegged at a fixed rate controlled by the Central Bank of Nigeria. However, the current circumstances had altered this arrangement, leading to further financial burdens for students.
Sharing her experience, Success Apiaka, a traveller impacted by the recent increase and fluctuation in foreign currency rates, expressed her frustration with the effect it has had on her travel plans and budget, adding that she was forced to reassess and make significant adjustments to his financial planning to accommodate the unforeseen changes.
Apiaka recounted the challenges she faced, stating, “The recent increase and fluctuation in foreign currency has affected my travelling plans, especially considering the amount I had originally budgeted for the process. I had to go back to my drawing board to replan and find the best way to achieve my travel goal. This meant cutting down on a lot of expenses, including food, clothing, and family-related costs, in order to meet the current exchange rate and make the most of every penny I have.”
Fortunately for Apiaka, being knowledgeable in economics, she anticipated the economic difficulties ahead and took proactive measures to secure her travel plans. She booked her flight as early as May after paying her tuition, having learned from past experiences with using Form A for foreign currency transactions.
“I had to cut down a lot of my expenses in terms of feeding, clothing, family, etc just to ensure I can meet up to the current rate, utilise every single penny that comes my way.
She said the mental stress that came with the entire process, the wait is really not easy, process and all. For the financial aspect, I would say a little because this is something I have been preparing for although not at this current rate but so far I must say the mental stress was quite overwhelming at some point.
Another affected traveller, Aisha Abdullahi said currency fluctuations and the single exchange rate policy were affecting her travel plans, strewing that with her intended budget of N12m, now only yielding 12,000 pounds instead of the expected 24,000 pounds.
Abdullahi had been forced to consider alternative arrangements to make up for the significant financial hurdle, noting that said she had to explore selling off properties and liquidating investments.
She highlights the drastic change in flight prices, with a return ticket now costing between N800,000 to over N1m, compared to the previous rates of N300,000 and above.
“I’m considering flying through Benin Republic, Contonu Airport to be precise but I’m trying to weigh the prons and cons that are involved because moving my things from my base in Abuja down to Lagos means incurring some expenses like paying for excess luggage to Lagos.
“So, I will put all this together and compare it with the air ticket in Cotonou then that would give me a clear picture of what I want and make my decision.”
Manufacturers Association of Nigeria has said its members are currently spending between 35 per cent to 40 per cent of total costs on energy needs.
President, MAN, Francis Meshioye, stated this during an exclusive interview with The PUNCH.
According to him, any increase in energy costs such as electricity tariff or fuel price hike increases their cost.
Meshioye said, “We rejected the hike in electricity tariff because, in the first instance, energy cost is very high for manufacturers, particularly those who consume much like steel manufacturers.
“It takes an average of 35 to 40 per cent of their total costs. Any increase in electricity tariff makes it harder on us. The harder it is, the harder it will be for consumers. When this is so, it means that the demand for products will drop. Like I said in my previous interview, the profit margin will be low.
“The tax that you will have on this margin will be low as well. So the government too, will lose. One thing that I emphasise is that there is a lack of efficiency on the part of the Discos. They are unable to collect all the money for their supplies. They rely on estimated billing in some cases. This is not good.”
He added, “You cannot tell people that you don’t mind how you collect your money. What they need to do is ensure that all electricity users are metered. It is then that they can say that they know how to get their money.
“They can now make a case to increase their tariff. If that is not done, the increase is not based on an informed decision. The data that they are using is inaccurate. So the decision will be inaccurate.”
Speaking further, Meshioye said exporting manufacturers were currently being challenged by ‘astronomical production costs’ which had kept them from operating at maximum capacity.
Meshioye, who was responding to a question on why manufacturers were unable to step up exports in order to help ease the forex crisis in the economy, said a harsh operating environment, themed by high production costs had been an impediment to exporting manufacturers.
According to him, the government needs to take conscious steps toward removing the bottlenecks inhibiting exporters in order to boost exports and bring more foreign currency into the economy.
He said, “If you want to export a product, it is fine, but at what cost are you going to export it? What will be your price? If the cost is astronomically high, it will be difficult to export.
“It is a circle. Of course, the export base should be good enough to support the floated exchange rate, but we need to have a good economic base to do that.”
Governor Uba Sani of Kaduna state has described the proposed cash transfer policy of the Federal Government as a scam.
Sani stated this while speaking in an interview with Arise Television’s News Night on Friday.
The governor said, “My position has always been that, at this critical time, cash transfer should not be something that we should bring up, completely. I think that cash transfer for me, in my opinion, is a scam. Completely is a scam. I can be very certain about that, because who are you transferring the money to?
“Let me give an example, go and check the current statistics. Like I said, as the Chairman, Committee of Banking for four years in Nigeria, I oversight Central Bank, I oversight all the commercial sector of our economy for the last four years and I look at the statistics, I will be very firm on this issue and you can go and check it.
“About 70 to 75 percent of the rural population in Northwest are financially excluded completely. You will have to go and check, these people we are talking about are important people in the society. They do not even have a bank account so who are you transferring the money to?
“Let’s try and work very hard to make sure that they are financially included, that is the most important thing and I will like to call on our development partners, the World Bank, to put more money towards bringing more people into the financial services and the vulnerable in particular.
“Let’s put more money to ensure that we open accounts for them, get them involved, if we don’t do that, no matter what we do however you do it, money will go to the wrong people, that’s the fact.”
President Bola Tinubu had earlier unveiled his administration’s plan for a monthly N8,000 transfer to 12 million of the poorest households in the country for six months, in a bid to cushion the effects of the removal of fuel subsidy.
But days after the announcement, the Federal Government said it would review the move following the public outcry it generated among Nigerians.
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Nigerian National Petroleum Company Limited (NNPC) yesterday said it remitted N123 billion as interim dividend and Production Sharing Contracts (PSC) profit oil to the Federation Account in June this year.
The remittance is coming barely two months after the NNPC exited the fuel subsidy regime following the removal by President Bola Tinubu.
In a note from the national oil company attributed to the NNPC Chief Financial Officer, Umar Ajiya, the company stated that N81 billion of the amount was the monthly interim dividend and N42 billion was 40 per cent PSC profit oil.
The note stated: “In line with the provisions of the Petroleum Industry Act 2021, the Nigerian National Petroleum Company Limited has commenced the payment of dividend into the federation account.”
“The payment of dividend by the NNPC Limited clearly shows that the company under the leadership of the Group Chief Executive Officer, Mele Kyari is moving in a positive trajectory as enshrined in the PIA” noted an NNPCL source.
The fresh information is coming against the backdrop of a release from the office of the Accountant General that the Federation Account Allocation Committee (FAAC) shared a total sum of N907.054 billion to the federal government, states and local government councils during the period. NNPCL attributed the increase in the money shared to its June remittances.
..says anarchy is imminent if the rule of law is trampled upon or truncated
Presidential candidate of the Labour Party in the February 25, election and first petitioner in the ongoing case at the Presidential Election Petition Court (PEPC), Peter Obi, has replied to the threat of anarchy claimed by the All Progressives Congress (APC), the second and third respondents in the petition, President Bola Tinubu and Kashim Shetimma, who argued that if the court interprets the Electoral Act, Section 134 against them it might lead to breakdown of law and order.
It would be recalled that Tinubu’s legal team led by Wole Olanipekun had in their final address to the court at the weekend threatened that “any other interpretation different from theirs will lead to absurdity, chaos, anarchy and alteration of the very intention of the legislature.”
But Peter Obi’s lawyers led by Livy Uzoukwu and Onyechi Ikpeazu disagreed with them, saying that what would rather lead to anarchy is where the rule of law is trampled upon or truncated, pointing out that in such situations anarchy reigns supreme.
According to Obi’s legal team: “A sentence in the 2nd-3rd respondents’ address alarmed the petitioners and millions of Nigerians. The 2nd-3rd respondents went too low and abandoned discretion when they claimed as follows: ‘Our submission is that the petitioners are inviting anarchy by their ventilation of this issue of non-transmission of results electronically by INEC.’”
They noted that they found Tinubu’s outburst as “a cheap, misguided, and destructive blackmail clearly intended to target the country’s judicialism and constitutionalism. It also aims at cannibalizing our democracy.”
The legal team also noted that the careless and absurd statements of the second and third respondents intend to raise the issue of insecurity if the petitioners were to emulate the bad example of the second and third respondents, but remarked that such will never happen because of the petitioner’s discipline and peaceful disposition and belief in the rule of law.
Still underscoring the pointlessness and the supererogatory of the respondent’s threat, the legal team wondered “when has it become offensive for petitioners to canvass a ground prescribed for the challenge of an election in Section 134(1)(b) of the Electoral Act 2022?
They attributed the needless flare-up and effusion of the respondents to desperation taken too far, which they said could be extremely dangerous.
“Let the 2nd-3rd respondents know that where the rule of law is trampled upon or truncated, anarchy reigns supreme!”
Two siblings, identified as Abdul Wahab Atolagbe, (7) and Mujib ( 9) on Saturday lost their lives when part of a building in the Ishawo area of Ikorodu, Lagos, collapsed.
The incident occurred during the heavy downpour.
The South West Coordinator, National Emergency Management Agency, NEMA Ibrahim Farinloye, confirmed the incident.
He said : "This is to confirm the recovery of two children that were trapped in a partial building that collapsed at about 11: 30 a.m at 25, Ajao Street, CWC, by Olainukan Bus-stop, Ishawo, Ikorodu.
"The children were trapped when fence from the neighbouring house fell on their building during heavy downpour.
"It was very unfortunate that distressed calls were not properly channeled to those whose responsibility was to save the lives of the children at the right time.
"Officials of the Lagos State Building Control Agency (LASBCA) are presently on ground to assess the situation.
A new video showing Muslim clerics threatening another set of Isese worshippers in the Oko Owo area of Ilorin, the Kwara State has emerged online.
The worshippers were seen performing some traditional rites at the bank of a river.
In the video, the rites are however disrupted by the clerics who ordered them to leave the river.
A Facebook user, Alfa Aribidesi At-Tawdeeh Islamic Da'wah, shared the video Friday night captioning it: "ANOTHER OSUN WOMEN CAUGHT LIVE @ OKO OLOWO IN ILORIN TODAY!!!"
The video shows a Muslim cleric charging towards the priestess who had yet to be identified, as she and her members stood by a river ready to offer sacrifices.
The cleric could be heard threatening to not only ruin the traditional procession and rites but also physically attack the priestess and two other girls in her company.
Speaking in Yoruba, one of the clerics could be heard saying:
"We warned you against these sacrifices. I have you on tape with your calabashes.
"You dare not drop the calabashes," the cleric screamed at the convoy.
'Everything you are saying is cheap talk. I am an Indigene just like you," one of the women in the Osun priestess’ group fired back at the cleric who made it a point to also mention that Ilorin does not tolerate traditional religious practices.
The two exchanged heated words for a while before the cleric began to charge toward the priestess and her girls, chanting a Muslim prayer as he marched on.
"Come out here because this is Ilorin and such is not allowed. Is this Osun? Leave! Leave! Leave now! Do you not hear me, leave or I'll pelt you with stones."
The priestess ignored all of his threats and continued with her rites.
This won't be the first of such occurrence in Ilorin. A few weeks ago, the story of Yeye Ajesikemi Olokun Omolara was widely reported, as she was also threatened by a Muslim group, Majlisu Shabab li Ulamahu Society, in Ilorin, the capital of Kwara State, in a bid to cancel a planned Isese festival in the state.