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Atiku faults CBN Fx policy, proffers managed-floating system

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Former Vice-President and Presidential candidate of the People’s Democratic Party (PDP) in the 2023 General elections, Atiku Abubakar has faulted the policy direction of the Central Bank of Nigeria and the President Tinubu led administration in tackling the country’s grappling foreign exchange (Fx) issues.

Former Vice President Atiku Abubakar, has offered President Bola Tinubu basic lessons in economics and the management of Nigeria’s unstable Foreign Exchange market and its attendant consequences on the livelihood of the average Nigerian.

In a series of tweets via his X (formerly Twitter) handle as released by his Media Office, in Abuja, on Sunday, Atiku wrote, “At a meeting called at his instance on Thursday to address the Foreign Exchange crisis and the problem of economic downturn, among others, Bola Tinubu failed, yet again, to showcase any concrete policy steps that his administration is taking to contain the crises of currency fluctuation and poverty that face the country.

“Rather, he told the country and experts who have been offering ideas on how to resolve the crisis that he and his team should not be distracted and allowed time to continue cooking their cocktail that has brought untold hardship to the people of Nigeria. I don’t agree with that.

“The wrong policies of the Tinubu administration continue to cause untold pain and distress on the economy and the rest of us cannot keep quiet when, clearly, the government has demonstrated sufficient poverty of ideas to redeem the situation.

“If the government will not hold on to their usual hubris, there are ways that the country can walk out of the current crisis.

“After a careful assessment of the state of our economy at the twilight of the last administration, I knew full well that the economy of the country was heading for the ditch and came up with a number of policy prescriptions that would rescue the country from getting into the mess that we are currently in.

“Those ideas, encapsulated in my policy document titled: My Covenant With Nigerians made the following prescriptions:

“I had signed on to a commitment to reform the operation of the foreign exchange market. Specifically, there was a commitment to eliminate multiple exchange rate windows. The system only served to enrich opportunists, rent-seekers, middlemen, arbitrageurs, and fraudsters.

“A fixed exchange rate system would be out of the question. First, it would not be in line with our philosophy of running an open, private sector friendly economy.

“Secondly, operating a successful fixed-exchange rate system would require sufficient FX reserves to defend the domestic currency at all times.

“But as is well known, Nigeria’s major challenge is the persistent FX illiquidity occasioned by limited foreign exchange inflows to the country.

“Without sufficient FX reserves, confidence in the Nigerian economy will remain low, and Naira will remain under pressure. The economy will have no firepower to support its currency. Besides, a fixed-exchange rate system is akin to running a subsidy regime!

“On the other hand, given Nigeria’s underlying economic conditions, adopting a floating exchange rate system would be an overkill. We would have encouraged the Central Bank of Nigeria to adopt a gradualist approach to FX management.

“A managed-floating system would have been a preferred option.  In simple terms, in such a system, the Naira may fluctuate daily, but the CBN will step in to control and stabilize its value. Such control will be exercised judiciously and responsibly, especially to curb speculative activities.”

“Why control, you may ask. (i). Nigeria has insufficient, unstable, and precarious foreign reserves to support a free-floating rate regime. Nigeria’s reserves did not have enough foreign exchange that can be sold freely at fair market prices during crises.

“(ii). Nigeria is not earning enough US$ from its sales of crude oil because its production of oil has been declining.

“(iii).And Nigeria is not attracting foreign investment in appreciable quantities.”

Atiku argued that these are enough reasons for Nigeria to seek to have a greater control of the market, at least in the short to medium term when convergence is expected to be achieved.

According to him, Tinubu’s new policy FX management policy was hurriedly put together without proper plans and consultations with stakeholders. The government failed to anticipate or downplay the potential and real negative consequences of its actions.

Adding that, “The Government did not allow the CBN the independence to design and implement a sound FX Management Policy that would have dealt with such issues as increasing liquidity, curtailing/regulating demand, dealing with FX backlogs and rate convergence.

“I firmly believe that if and when the Government is ready to open itself to sound counsels, as well as control internal bleedings occasioned by corruption and poorly negotiated foreign loans, the Nigerian economy would begin to find a footing again.”

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Diri sets up committee on new minimum wage

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Gov. Douye Diri of Bayelsa has set up a committee to work out modalities for implementation of a new minimum wage for workers in the state’s civil service.

The committee is headed by Secretary to the State Government, Prof. Nimibofa Ayawei.

Other members included the Head of Service, Mrs Biobelemoye Charles-Onyeama, the Commissioner for Finance, Maxwell Ebibai, his Labour, Productivity and Employment counterpart, Ebiuwou Koku-Obiyai and the Chief of Staff, Government House, Mr Peter Akpe.

The committee has the end of May 2024 to submit its report.

Diri made the pronouncement on Wednesday at the 2024 Workers Day celebration at the Peace Park in Yenagoa.

The governor assured that his administration would implement a new minimum wage once the committee submitted its report, adding that the state workers always have emoluments as their federal counterparts.

Diri stressed that the welfare of workers had always been a top priority of his administration as attested to by the numerous worker-friendly policies he initiated.

He equally promised to commence the building of a new befitting secretariat complex for civil servants to accommodate the increasing workforce.

The state’s helmsman, who described workers as the backbone of development in society, attributed the achievements in his first tenure to the support and contributions of civil servants.

He called for continuous harmonious working relationship with his government in order to bequeath lasting legacies.

The Bayelsa helmsman also approved an annual step increment for civil servants, release of funds for completion of the state secretariat of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

“The committee is to immediately look into what the Federal Government has done on the proposed minimum wage and see the possibility of domesticating it in Bayelsa.

“It is given until the end of May to submit its report.

“My dear workers of Bayelsa, you have done so well. You know that you are the engine room of this government. We have succeeded because you have done so well. We receive commendations everywhere we go.

“In terms of infrastructure, human capacity building and other sectors, we have done well. I say you should continue to keep it up.”

According to him, together, we are building a Bayelsa of our dreams, a beacon of hope, a model of progress and a testament to our unity of purpose.

“The tangible evidence of these fruitful collaborations is that abundantly, we have made it clear for all to see in the plethora of transformative legacy projects that now span the length and breadth of our state, touching the lives of all Bayelsa people.

“Let us continue to work together so that the future of our state will be established.

“Beyond the ongoing renovation, we will look at the option of building a new state-of-the-art secretariat complex to accommodate the expanding workforce,” he said.

Earlier, the workers eulogised the governor for his labour-friendly policies that had improved their working condition.

In a joint address by the chairman of the NLC, Comrade Barnabas Simon, and his TUC counterpart, Comrade Laye Julius, the workers specifically thanked the governor for approving payment of wage award to all categories of workers in Bayelsa.

“We thank you for the regular conduct of promotion exercises and implementation, prompt payment of salaries of workers and pensioners, among others.

“Organised labour in Bayelsa is most sincerely grateful for your kind and favourable disposition to the needs and aspirations of workers in the state.

“Your open-door policies and swift response to most of our demands in the last four years is highly appreciated,” they said.

They, however, appealed for an upward review of the wage award, improved transportation system for workers, and mapping out of acquired lands for civil servants.

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Gov. Sani unveils N500m loans scheme for workers

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Gov. Uba Sani of Kaduna State has unveiled a  N500 million revolving loans scheme for civil servants in the State.
Sani disclosed this on Wednesday in Kaduna during the 2024 May Day Celebration .
Sani symbolically distributed  dummy cheques to some workers amidst cheers while announcing the more economic empowerment initiatives for the workers
He also reaffirmed his commitment to prioritise workers’ welfare and equip them appropriately within available resources.
Sani emphasised the importance of a motivated workforce for the success of his administration’s Rural Transformation Agenda, addressing the theme ‘People First’.
Sani stressed the centrality of citizens in development and governance, highlighting the strategic partnership forged with labour unions to advance workers’ interests and improve living conditions.
He also listed ongoing efforts to attract investments, provide training, and enhance job opportunities for the citizens.
Sani assured continued attention to human capital development and poverty reduction through various government interventions.
The governor further disclosed ongoing consultations with labour unions at both federal and state levels to negotiate a decent salary increase for the state and local government workers.
Earlier, the Chairman of the Nigeria Labour Congress (NLC), Mr Ayuba Magaji, commended Sani for his personal attendance at the May Day Celebration, marking a significant departure from the past nine years.
He also expressed gratitude for the governor’s prompt payment of salaries and allowances as well as the involvement of labour unions in decision-making processes
The highlight of the occasion was a  march past by various unions and affiliates of the NLC as well as the Trade Union Congress (TUC)
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Lagos-Calabar Coastal road: ‘You have no claim’ – Umahi attacks Landmark Beach owner

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Minister of Works, Dave Umahi has said the Group Chief Executive Officer and founder of The Landmark Group, Paul Onwuanibe, cannot claim compensation from the Federal Government in connection with the demolition of structures for the Lagos-Calabar Coastal Highway.

The Federal Government is currently demolishing properties along the shoreline to create a pathway for the Lagos-Calabar Coastal Highway.

The Landmark Group, owners of the Landmark beach in Lagos State, is believed to be one of the organisations that will be highly affected by the demolition.

However, Umahi has insisted that infrastructures belonging to Landmark were spared, hence the owner can’t make claims on the Federal Government.

Addressing journalists, the minister said the beach was on the right of way and shoreline.

He said: “No claim for Landmark, we spared all his infrastructure, we don’t pay for the demolition of shanties because it is on our right-of-way, 15 meters from the shoreline, so he has no claim.

“We made all efforts to spare his infrastructure. The Landmark owner is acting like a politician, me I’m an engineer.

“While he does all the politics, I am an engineer, I’ll do the engineering work. I don’t know the attention he is seeking.”

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