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Editorial

Growing Nigeria’s economy beyond rhetoric

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The Obasanjo led administration fought relentlessly for the course of debt cancellation. The then creditors saw the sincerity and the economic plans on ground, and they offered to do something about it. Debt relief was granted and we eventually saw our foreign reserves “swelling.”

The United Nations General Assembly 2022 started  last Tuesday as President Muhammadu delivered his “captivating” speech on Wednesday, stating his administration’s achievements, challenges and plea for debt cancellation.

In his words, “The multifaceted challenges facing most developing countries have faced a debilitating chokehold on their fiscal space. This equally calls for the need to address the burden of unsustainable external debt by a global commitment to the expansion and extension of the Debt Service Suspension Initiative, DSSI to countries facing fiscal and liquidy challenges as well as outright cancellation for countries facing the most severe challenges.”

For the record, at the start of COVID-19 , owing to the economic recession in 2020, “the World Bank and International Monetary Fund urged the G20 to set up the DSSI. This was done in May 2020 to help countries concentrate their resources on fighting the menace and safeguarding the lives and livelihoods of millions of the most vulnerable people.The initiative suspended $12.9 billion debt service payments owed by participating countries to their creditors.

The World Bank and IMF supported the implementation of the DSSI, by monitoring spending, enhancing public debt transparency, ensuring prudent borrowing. The countries were committed to use freed-up resources to increase social, health, or economic spending in response to the crisis. They pledged to disclose all public sector financial commitments ( involving debt and debt-like instruments). They also committed to limit their non concessional borrowing under the IMF arrangements and the World Bank’s Sustainable Development Finance Policy.”

Going by the stipulated conditions to be met before a country could be considered for debt cancellation, can we really say Nigeria measures up? Are our borrowing prudent? Are the public debts transparent? What are our economic policies? Do they align with those of the world bodies? Is Nigeria, in the real sense of it broke? Are we sure the public funds are not cooling off in the coffers of individuals? Has corruption stopped? The discovery and arrest of corrupt public officers, what is the punishment meted out to them? What has happened to Senator Suleiman Abdu Kwari’s (APC Kaduna North) bill : Bill For An Act To Make  Comprehensive Provisions For Seizure, Confiscation,  Forfeiture, And Management of Properties Reasonably Suspected To Have Been Derived From Unlawful Activities? The huge amount earmarked in the 2023 budget for subsidy, won’t it go a long way in fixing our refineries?

We need foreign investors and expatriates to inject their resources into our economy. What are we doing to encourage them in the face of infrastructural decadence and insecurity?

The Independent Corrupt Practices and other Related Offenses Commission, ICPC has just alleged padding of 2020 and 2021 budgets. No one is asking questions. The commission went on to say that it was its proactiveness that salvaged billions of naira that would have gone into servicing ghost workers between January and June this year. No one cares about those that perpetrated the criminal act.

In all this lopsided system, we are clamouring for debt cancellation. We have taken the world bodies for “father Christmas.”

Economic development is not by accident. It’s a product of frantic steps, putting all the indices into consideration. It’s time to be more serious and be bold enough to take the bull by the horns if Nigeria is to become economically giant.

We have all it takes to be great. We are blessed with resources, human and natural. We can’t continue to be “beggars.” Corruption must be fought to its knees. As a matter of urgency, power sector must be looked into. Our  security agents must be empowered and given free hand to operate in fighting insecurity. It is only then indigenous and foreign businesses can thrive in the country.

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Editorial

Is the Labour Union minimum wage demand in the interest of Nigerians?

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Contrary to its beginnings, the Organised Labour Unions have fallen into a pattern of protests that collapse quickly with little concession on the part of the government,  as they often worry about themselves without considering the plight of over 240 million Nigerians, whom they represent.

The public must resist support for unnecessary labour agitation. The various state governments are yet to pay the N30,000 minimum wage demanded by the labour force about five years ago. Therefore, it will be difficult for the government to meet the current demands (N615,000) amidst the downturn economy.

The recent International Workers Day reopened the long discourse about the status and welfare of the Nigerian worker, which, in our country, largely begins and ends in debate over the minimum wage.

There is no gainsaying that the minimum wage is long due for a review. Worse, the current socio-economic realities in Nigeria make the N30,000 minimum wage look utterly ridiculous, if not pitiful. It is worrying the delay in arriving at an agreement while the living situation in the country worsens.

At the federal level, discussions are ongoing to review it, as stated by the Minister of State for Labour, Nkeiruka Onyejeocha, last week while addressing Nigerian workers at the May Day celebration in Abuja.

She said the Tripartite Committee On National Minimum Wage is yet to conclude its negotiations, adding that workers will not lose anything as the new minimum wage will take effect from May 1, 2024.

Meanwhile, last December, the Minister of Information and National Orientation, Idris Mohammed, said a new minimum wage regime would come into effect on April 1, 2024.

He said the current N30,000 minimum wage would expire at the end of March 2024.

The minister stated this while responding to questions on the 2024–2026 Fiscal Framework budget, which indicated that the government would spend N24.66tn on salaries in 2024, 2025, and 2026.

The federal government had agreed to pay N35,000 to each of its workers to cushion the effect of fuel subsidy removal by President Bola Tinubu on May 29, 2023.

The organised labor insisted that the N35,000 wage award was a temporary measure, adding that the minimum wage should be reviewed in 2024.

The federal government’s team and the Joint National Public Service Negotiating Council on October 18, 2019, agreed on the implementation of the N30,000 minimum wage after months of negotiations.

However, discussions have since deadlocked over labour’s proposal of N615,000 as the minimum wage. The union, pressing its case, gave a breakdown of how it came about this figure, arguing that as much as it was stringently conservative, it wouldn’t let its members collect an impoverishing wage.

The federal government insists it cannot pay what labour is asking. Reports, however, indicate that the government and the private sector’s counteroffer of between N60,000 and N70,000, was what led to the stalemate in negotiations.

The state governors, last week, said they would review the report of the tripartite committee when submitted and that each state would reach a decision on what it can pay.

However, in some states, the minimum wage was reviewed, albeit variedly. While the Lagos State government said it had doubled the minimum wage since January by an additional N35,000, the Edo State government declared N70,000 as the minimum wage in the state.

The Cross Rivers State government also announced a N40,000 minimum wage while in Ebonyi State, an additional N10,000 was added to their pay.

As a newspaper, we consider this gesture commendable even though it is not a favour by any of the governors. If anything, we believe that, in light of current realities, the workers should get more at a time when all safety nets seem to have been removed.

While grappling with fuel subsidy removal, the electricity tariff hike came. For a long time, workers have had to pay for their security, which is supposed to be the major responsibility of the government. With public housing gone, private estates now employ security agents. What’s worse, the cost of food has been on a steady rise for years now.

Yet, political office holders who have access to the Commonwealth have, without inhibitions, amassed public wealth to themselves.

Of course, the ripple effect has been that some public workers have since learned to adapt by pilfering from the public to make ends meet. Hence the scramble for juicy public and political offices continues to spike. Still, this ugly trend is highly condemnable as it is not justifiable in any way and by any stretch of the imagination.

At this juncture, it’s important that Nigerians must think differently to ensure that the government meets their needs, the labour demand is unrealistic, and may drag millions into a deadlock for months.

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Editorial

Nation in distress: The urgent need for economic and security relief

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Nation in distress: The urgent need for economic and security relieAs the one-year anniversary of President Tinubu’s inauguration approaches, the nation is gripped by an unprecedented economic crisis, leaving a trail of hardship and anger in its wake.

Recall that protests have erupted in Minna, Kano, and Ondo, as it became clear that the rising cost of living in Nigeria reached a boiling point. Angry youths and women took to the streets, calling on the Tinubu administration to address the pressing issue of hunger and economic hardship.

The Northern wing of the Christian Association of Nigeria (CAN) has also joined the chorus, urging the federal government to take immediate action to alleviate the suffering of ordinary Nigerians.

The high cost of foodstuff, transportation, goods, and services has made life unbearable for many. The escalating insecurity, marked by rampant killings and kidnapping for ransom, has only compounded the problem. The economy is in distress, and the security situation is dire.

The removal of subsidies on petroleum products last May sparked a chain reaction of price hikes, with petrol prices skyrocketing by nearly 300 percent.

The ripple effect has been devastating, with the prices of essential items soaring to unimaginable heights. Companies are passing on transportation and energy costs to consumers, exacerbating the scourge of hunger and deprivation.

Youth frustration is boiling over, fueled by the difficulties brought on by President Tinubu’s policies, including the controversial floating of the Nigerian currency. The once-simmering pot of discontent has reached a boiling point, with protests and demonstrations erupting across the nation.

As the hunger crisis deepens, Nigerians are crying out for relief. The government must act swiftly to address the economic woes and restore hope to a desperate citizenry.

The clock is ticking, and the nation waits with bated breath for a solution to this avoidable crisis. Will the government heed the call and rescue Nigerians from the clutches of hunger and despair? Only time will tell.

Meanwhile, The Sultan of Sokoto, Alhaji Muhammadu Abubakar III, and the Jama’atu Nasril Islam (JNI) have sounded the alarm, urging governments to intervene in the worsening economic hardship that has pushed Nigerians to the brink.

The removal of subsidies on petroleum products last May sparked a chain reaction of price hikes, with petrol prices skyrocketing by nearly 300 percent.

The consequences of the government’s policies have been swift and brutal, with inflation spiraling out of control and wreaking havoc on the Nigerian people. Basic food prices have skyrocketed, with staples like rice, beans, maize, plantain, and tomatoes increasing by a staggering 25.34 percent to 40.01 percent as of March 2024.

To add insult to injury, the government has hiked electricity tariffs by a whopping 603 percent to N225 per kilowatt, despite the abysmal power generation that fluctuates between 2,500 and 4,000mw. This has led to the collapse of numerous small businesses, exacerbating the economic hardship.

The current economic situation, poverty level, removal of fuel subsidies, and galloping food inflation have created a perfect storm that threatens the very existence of the average Nigerian. The biting economic hardship has pushed many Nigerians, especially the youth, to the brink of desperation, with many seeking to flee the country in search of better opportunities abroad.

The situation is dire, and the government must take immediate action to address the economic crisis, restore hope to the people, and prevent a looming catastrophe. The clock is ticking, and the nation waits with bated breath for a solution to this avoidable crisis.

A recent poll conducted by NOIPolls in August 2023 revealed a staggering 63 percent of adult Nigerians are eager to leave the country in search of better opportunities.

The survey found that 73 percent of youths aged 18-35 are leading the charge, driven primarily by the quest for economic prosperity (60 percent) and education (32 percent). Insecurity, though a smaller concern, still motivates 3 percent to seek refuge abroad.

As Nigeria grapples with the triple threats of hunger, insecurity, and dwindling purchasing power, the streets have become a hotbed of kidnapping, terrorism, and banditry.

The value of the naira continues to plummet, eroding the purchasing power of ordinary citizens. With no respite in sight, the nation teeters on the brink of collapse.

The government must act swiftly to address the economic and security crises ravaging the country. The mass exodus of youths, Nigeria’s future, is a ticking time bomb that demands immediate attention.

Urgent steps are needed to revitalize the economy, ensure security, and restore hope to a desperate citizenry. The clock is ticking, and the nation waits with bated breath for a solution to this avoidable crisis.

Furthermore, 25 percent of Nigerians implored the government to rein in inflation, which has eroded their purchasing power. Others called for better working conditions (14 percent), improved citizen welfare (11 percent), and enhanced healthcare services, economic stability, and electricity supply (12 percent). These pleas echo the frustrations of a nation yearning for basic necessities and a decent standard of living.

The government must heed these urgent calls and prioritise the welfare of its citizens. By addressing these fundamental issues, Nigeria can stem the tide of migration and create a more prosperous and secure future for its people. The time for action is now.

It is time for the federal government to take concrete steps to stimulate economic growth, create jobs, and reduce the cost of living. It is also imperative to tackle the security situation head-on, ensuring that citizens are safe and secure in their daily lives.

The suffering of Nigerians is real, and it is the responsibility of the government to alleviate it.

We urge the Tinubu administration to heed the calls for help and take decisive action to address the economic and security challenges facing the nation. The time for action is now.

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Editorial

Nigeria must act now to mitigate flood disasters

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As the rainy season looms ahead, a palpable sense of concern grips the nation.The recent cautionary message from the                      Federal Government to 31 state governors  regarding the looming threat of floods from April to November serves as a wake-up call, demanding swift and concerted action from both state and federal authorities.

Presented by Minister of Water Resources and Sanitation Joseph Utsev, the 2024 Annual Flood Outlook paints a bleak picture, underscoring the urgent need for preemptive measures. It is not merely an emphasising advisory; it is a resounding call to arms.

The spectre of past flood calamities in Kano, Taraba, Lagos, and other states still haunts our collective memory.

The haunting images of devastated homes, displaced families, and shattered livelihoods serve as poignant reminders of the human toll exacted by our complacency.

It is imperative that we glean lessons from these tragedies and take proactive steps to forestall the impending catastrophe.

The warning issued by the Federal Government is crystal clear: floods are imminent, and the time to act is now.

The Nigeria Hydrological Services Agency’s classification of 148 local government areas across 29 states, including Lagos, Kano, and Delta, as high flood-risk zones emphasising the gravity of the situation.

Every moment of inaction heightens the risk to countless lives and properties. State governors, local authorities, and relevant agencies must set aside differences and collaborate effectively to implement robust flood preparedness and mitigation measures.

From infrastructure reinforcement to early warning systems and community awareness campaigns, a comprehensive approach is imperative to safeguard vulnerable communities.

As responsible stewards of our nation’s welfare, we cannot afford to be caught off guard. Let us heed the warning, unite in purpose, and proactively address this looming threat.

The cost of inaction is too grave to contemplate, and the time to act decisively is now. This is not a drill.

The minister’s revelation that 31 states face high flood risks, while all 36 states and the Federal Capital Territory will experience moderate flooding, demands immediate attention and collective action.

“The high flood-risk states are Adamawa, Akwa Ibom, Anambra, Bauchi, Bayelsa, Benue, Borno, Cross River, Delta, Ebonyi, Edo, Imo, Jigawa, Kaduna, Kano, Katsina, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Ondo, Osun, Oyo, Plateau, Rivers, Sokoto, Taraba, Yobe,” the Minister said.

We cannot afford to wait until the waters rise and lives are lost. The time to act is now. It’s imperative that federal and state governments, agencies, and local communities join forces to mitigate the impact of floods.

This requires a coordinated response, including public awareness campaigns, infrastructure upgrades, emergency preparedness plans, and investment in flood mitigation projects.

The future of our nation depends on it. Let us heed the warning and take proactive steps to build a more resilient Nigeria, where lives and properties are protected from the ravages of flooding. The clock is ticking; let us act now to avoid a catastrophe.

While 31 states face high flood risks, the remaining five states must also be proactive in their preparations. It’s not enough to simply warn residents to relocate from flood-prone areas; state governments must provide safe and conducive spaces for relocation, complete with essential services like relief materials, healthcare, and security.

This will help mitigate the trauma faced by displaced families. Citizens, too, have a critical role to play. They must be willing to relocate from their homes and comfort zones to prevent avoidable deaths and losses. The stark reality is that flood disasters are devastating, as seen in 2023 when 45 lives were lost, 171,545 persons displaced, and 22,666 homes partially damaged, with 5,358 others completely destroyed.

The economic toll was equally staggering, with a $4.6 billion bill that significantly dented Nigeria’s GDP. Let us learn from the past and take collective responsibility for flood preparedness. State and federal governments, agencies, and citizens must work together to build a more resilient nation, where lives and properties are protected from the ravages of flooding. The time to act is now.

In 2022, flooding claimed 662 citizens; 2.43 million others were displaced and 3,174 were injured nationwide, per NEMA.

The financial losses were estimated at $9.12 billion by the Federal Government, and by a United Nations agency at $7 billion. A UN report stated that food insecurity was aggravated in the country as 569,000 hectares of farmland were destroyed by the flood.

According to the then Minister of Water Resources, Suleiman Adamu, 178 LGAs in 32 states were declared “highly probable flood risk states.”

Although climate change remains a global concern, leading to flash floods, droughts, forest fires, and cyclones, the government must not make excuses.

They need to take lessons from previous floodings and replace their nonchalance with strategic actions and campaigns. They must do all they can to avoid the repetition of losses of lives and properties.

The citizens must play their part by clearing drainage in their vicinity, cultivating good waste disposal and environmentally friendly culture. To entrench this, the government must place strict surveillance and enforce stiff penalties against erring residents.

State governments should demolish structures erected on flood paths to enable rainwater to drain appropriately.

NGOs in the environmental niche should activate campaigns distilled in local languages through the media to prepare citizens for the flood.

The federal and state governments should be proactive in the deployment of ecological funds to provide guardrails against natural disasters. This must be used for pre-emptive measures like building bridges, desilting rivers, evacuating canals and drainage, and building dams and levees. The dams would help preserve excess rainfall to irrigate farmland during the dry season.

The government must fully embrace its onerous duty to safeguard lives and properties.

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