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Fuel subsidy removal: Elites fight back to retain ‘illicit profits’ — President Tinubu
…Multiple exchange rate policy diverted monies to “elite of elite”
…identifies over 1trn savings from subsidy
…FG to provide N1billion credit facility at 9% per annum to 75 manufacturers
…hints on purchase of 3,000 units of 20-seater CNG-fuelled buses
…FG, Labour to meet again today
President Bola Ahmed Tinubu has revealed that elites in the country have been fighting back to retain illicit profits ever since subsidy was removed on Premium motor spirit (PMS).
In a nationwide broadcast yesterday, President Tinubu said, “For several years, I have consistently maintained the position that the fuel subsidy had to go. This once beneficial measure had outlived its usefulness. The subsidy cost us trillions of Naira yearly. Such a vast sum of money would have been better spent on public transportation, healthcare, schools, housing and even national security. Instead, it was being funnelled into the deep pockets and lavish bank accounts of a select group of individuals.
“This group had amassed so much wealth and power that they became a serious threat to the fairness of our economy and the integrity of our democratic governance. To be blunt, Nigeria could never become the society it was intended to be as long as such small, powerful yet unelected groups hold enormous influence over our political economy and the institutions that govern it.”
“The whims of the few should never hold dominant sway over the hopes and aspirations of the many. If we are to be a democracy, the people and not the power of money must be sovereign.”
He praised the Buhari administration for forseeing the looming danger amd making no provision in the 2023 Appropriations for subsidy after June this year.
“Removal of this once helpful device that had transformed into a millstone around the country’s neck had become inevitable.” He said.
Multiple exchange rate policy diverted monies to “elite of elite”
Commenting on the multiple exchange rate policy in use by the previous administration, Tinubu noted that the policy diverted money that should have been used to create jobs, build factories and businesses for millions of people.
“Our national wealth was doled on favourable terms to a handful of people who have been made filthy rich simply by moving money from one hand to another. This too was extremely unfair. It also compounded the threat that the illicit and mass accumulation of money posed to the future of our democratic system and its economy,” he lamented.
“I had promised to reform the economy for the long-term good by fighting the major imbalances that had plagued our economy. Ending the subsidy and the preferential exchange rate system were key to this fight. This fight is to define the fate and future of our nation. Much is in the balance.
“Thus, the defects in our economy immensely profited a tiny elite, the elite of the elite you might call them. As we moved to fight the flaws in the economy, the people who grow rich from them, predictably, will fight back through every means necessary,” Tinubu added.
…identifies over 1trn savings from subsidy removal
Giving a defence for the removal of subsidy, Tinubu said the administration “in a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters.”
“That money will now be used more directly and more beneficially for you and your families,” the former Lagos State governor said.
“For example, we shall fulfill our promise to make education more affordable to all and provide loans to higher education students who may need them. No Nigerian student will have to abandon his or her education because of lack of money,”
Recall that in May 29th, Tinubu, in his inauguration speech, announced the removal of the petrol subsidy — a development that had led to a hike in the price of the product and untold hardship on Nigerians.
FG to provide N1billion credit facility at 9% per annum to 75 manufacturers
To further cushion the effects of the removal of subsidy, President Tinubu reeking out some of his proposed palliative measures said that the Federal Government will be providing N1billion credit facility at 9 per cent per annum to 75 manufacturers.
According to Tinubu, “Earlier this month, I signed four (4) Executive Orders in keeping with my electoral promise to address unfriendly fiscal policies and multiple taxes that are stifling the business environment. These Executive Orders on suspension and deferred commencement of some taxes will provide the necessary buffers and headroom to businesses in manufacturing sector to continue to thrive and expand.”
“To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1billion credit at 9 per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”
He also added that his administration will inject micro, small and medium-sized enterprises and the informal sector sector with N125 billion noting that N50 billion of the sum will be spent on Conditional Grant to 1 million nano businesses between now and March 2024.
“In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months.” He said.
…hints on purchase of 3,000 units of 20-seater CNG-fuelled buses
By March 2024, the Federal Government would have acquired 3000 units of 20-seater CNG-fuelled buses to mitigate the hardship occasioned by the removal of subsidy on PMS, President Tinubu declared.
He said, “Part of our programme is to roll out buses across the states and local governments for mass transit at a much more affordable rate. We have made provision to invest N100 billion between now and March 2024 to acquire 3000 units of 20-seater CNG-fuelled buses.”
Speaking further, he noted that the purchased buses will be shared to major transportation companies in the states, using the intensity of travel per capital.
“Participating transport companies will be able to access credit under this facility at 9% per annum with 60 months repayment period.” Tinubu said.
FG, Labour to meet again today on planned strike action
The Organized Labour and the Federal Government will meet again today to further discussions on the planned protest by the labour against the hardship occasioned in Nigerians by the removal of fuel subsidy and distribution of palliatives.
Speaking to correspondents, the Chief of Staff to the President, Rt.Hon Femi Gbajabiamila said, “We have been locked behind for a couple of hours, we had a good meeting, issues were thrashed out on the situation in Nigeria today in terms of issues centred around on government intervention on the situation in the country.”
“We agreed to adjourn till tomorrow as you know Mr. President is making a national broadcast today. Based on what we anticipate that Mr. President will be telling Nigerians we decided to adjourn meeting till 12pm tomorrow before labour can decide whether or not they want to continue with the protest on Wednesday.”
“But we believe that after tonight broadcast, President will speak to all the issues, he will roll out his interventions and needles to say we believe any reasonable person will tell you that at that point there will be no need for any protest.”
However, the President of the Nigeria Labour Congress (NLC), Joe Ajaero, said the plan for workers to proceed on a peaceful protest from Wednesday has not changed.
He dismissed fears that the peaceful protest could be hijacked by hoodlums, saying that such had never happened in the history of workers protest.
However, he said it is the responsibility of security agencies to provide security for the protest to protect the workers.
By Matthew Denis
In a bid to enhance economic growth, President Ahmed Tinubu has promised to inject a whopping sum of N2trillions into the economy.
The President stated this while inaugurating a 31-man Presidential Economic Coordination Council (PECC), drawn from different sectors of society and the economy
The inauguration comes three months after the President established the committee on March 27, 2024.
After inaugurating the council, President Tinubu presented the outcomes of his review of the accelerated stabilization and advancement plan, which seeks to inject a total of N2 trillion into the economy in the next six months.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who led selected members of the council to brief journalists after the briefing, gave a breakdown of the areas to benefit from the emergency funding including Health, Agriculture, Energy/Power and other areas.
“The president has just inaugurated the Presidential Economic Coordination Council and that is a body that is made up of the President’s Economic Management Team, the Legislature, represented by the leaders of the National Assembly; the Senate President and the Speaker of the House of Representatives, as well as very importantly, the sub-nationals, represented by the chairman of the Nigerian Governors Forum, and, of course, the elite of the private sector.
“They were presented with the outcomes of Mr. President’s review of the accelerated stabilization and advancement plan and that was an emergency plan to cover the next six months, which Mr. President had directed that a combination of his own Economic Management Team and the sub nationals, the governor’s level, and the private sector put together for his consideration.
The sum of that very important exercise is that a N2 trillion package involving N350 billion funding for Health and Social Welfare; N500 billion funding for Agriculture and Food Security; N500 billion for the Energy and Power sector and general business support of about N650 billion.
“In addition to a range of policy measures and tax measures, there is a range of executive orders which Mr. President has signed and which are being gazetted to ease the cost of doing business at this particular time”, he said.
President Tinubu announced the constitution of the Council, which he personally chairs, in a statement issued by his Special Adviser on Media and Publicity, Ajuri Ngelale, of March 27, 2024.
Other members of the PECC are Vice President Kashim Shettima, Vice-Chairman; President of the Nigerian Senate; Chairman, Nigeria Governors’ Forum; Coordinating Minister for the Economy and Minister of Finance; Governor of the Central Bank of Nigeria; Ministers of Agriculture and Food Security; Aviation and Aerospace Development and Budget and Economic Planning.
The song of that very important exercise is that a N2 trillion package involving N350 billion funding for Health and Social Welfare; N500 billion funding for Agriculture and Food Security; N500 billion for the Energy and Power sector and general business support of about N650 billion.
“In addition to a range of policy measures and tax measures, there is a range of executive orders which Mr. President has signed and which are being gazetted to ease the cost of doing business at this particular time”, he said.
Recall that Tinubu had announced the constitution of the Council, which he personally chairs, in a statement issued by his Special Adviser on Media and Publicity, Ajuri Ngelale, of March 27, 2024.
Top members of the PECC are Vice President Kashim Shettima, Vice-Chairman; President of the Nigerian Senate; Godswill Akpabio, Chairman of Nigeria Governors’ Forum; Abdulrahkan Abdulrasaq , Coordinating Minister for the Economy and Minister of Finance; Wale Edun , Governor of the Central Bank of Nigeria; Yemi Cardoso, Ministers of Agriculture and Food Security; Aviation and Aerospace Development and Budget and Economic Planning.
The council also comprises 13 persons drawn from the organised private sector including the Chairman of Dangote Group, Aliko Dangote; UBA Chairman, Mr. Tony Elumelu; BUA Founder, Abdulsamad Rabiu, among others.
The members of the organised private sector would serve on the council for a one-year tenure.
They include Ms. Amina Maina, Mr. Begun Ajayi-Kadir, Mrs. Funke Okpeke and Dr. Doyin Salami, Mr. Patrick Okigbo, Mr. Kola Adesina, Mr. Segun Agbaje, Mr. Chidi Ajaere, Mr. Abdulkadir Aliu and Mr. Rasheed Sarumi.
The move is “in furtherance of his administration’s efforts at re-engineering the nation’s economic governance framework,” the Presidency said in a statement signed by Tinubu’s Special Adviser on Media and Publicity, Ajuri Ngelale, in late March.
The statement is titled ‘President Tinubu establishes comprehensive economic coordination and planning system for Nigeria.’
It came weeks after the President created an economic advisory committee comprising the federal government, sub-nationals, and the private sector, on February 25.
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#BigSamBigImpact: Old students to inaugurate, name library after NewsDirect Founding Publisher, Samuel Ibiyemi
…Ex-Ogun NUJ chairman calls for annual program to honour late NewsDirect publisher
By Omobolaji Adekunle
The Olode Grammar School Old Students Association has announced plans to rename the school library after Late Dr Samuel Folorunsho Ibiyemi, a renowned journalist and founding publisher of Nigerian NewsDirect in recognition of his contributions to the school and the community.
Ibiyemi who was a past president of the Rotary Club of Ota has donated over 200,000 books to the school library, which has been a valuable resource for students and teachers.
This was disclosed on Thursday by the National President of the Olode Grammar School Old Students Association, Dr. Salau Dauda Folaranmi, during the first year remembrance of the late publisher at his residence.
According to the National President, “We will renovate the library and dedicate it to his memory. He loved people, assisted people, and donated 200,000 books to the school, which has been beneficial to teachers and students.”
Also, Engr. Niyi Adegoke, a Rotarian of the Rotary Club of Ota, suggested the idea of renaming the library after Ibiyemi, saying, “Late Samuel Ibiyemi was a very active member of the club, and he lived his life for humanity. He was a philanthropist, and we will support the initiative to ensure that the project comes to reality.”
In the same vein, Former Chairman of the Nigeria Union of Journalists (NUJ) Ogun State Chapter and current Senior Special Assistant to the National President of the NUJ, Wole Shokunbi, has paid a heartfelt tribute to the late Samuel Ibiyemi, a renowned journalist and publisher.
Shokunbi, who described Ibiyemi as a mentor and brother, recalled their close relationship, which spanned over two decades.
He praised Ibiyemi’s commitment to developing people and bringing joy to others, even at his own detriment.
Shokunbi called for Ibiyemi’s immortalisation, suggesting that the NUJ and the Guild of Editors come together to organise an annual program in his memory.
He also promised to take action to support the family, saying, “We will get back to the family soon.”
…Governor launches special health insurance scheme for all Lagos retirees
By Esther Agbo
Lagos State announced that it has achieved a significant milestone in pension administration by clearing a longstanding backlog, disbursing a total of N4,461,659,536.82 to 2,000 retirees.
This accomplishment follows a previous payment of N3.1 billion to 1,013 retirees earlier this year, marking a commitment fulfilled.
Employees of Lagos State Government who retire from the civil service will now get their full pension benefits and gratuity immediately after retirement.
This unprecedented record has just been set by Governor Babajide Sanwo-Olu, who fulfilled his promise to settle all arrears and current pension liabilities in the State’s public service.
Sanwo-Olu, on Thursday, presented pension bond certificates totaling N4.5 billion to 2,000 retirees at the 105th Retirement Benefit Bond Certificate Presentation Ceremony hosted by Lagos State Pension Commission (LASPEC) in Oregun.
The clearing of the accrued pension liability essentially implies that the State Government owes no outstanding pension benefits and any form of entitlement to any individual who retired from its public service.
By implication, fresh retirees will no longer wait endlessly after service before being paid their retirement benefits. Settlement of the State’s pension backlog has transitioned Lagos pension administration from servicing a liability to an era of pay-as-you-go.
Besides, Sanwo-Olu launched a special health insurance scheme for all living retirees, who served the State.
The Governor said the development marked a milestone in the State’s pension administration, stressing that the new template of “Pay-As You-Go” had prioritised quick payment of accrued rights in order to ensure retirees in the State enjoy dignity and financial stability after their retirement.
He said, “Today, we mark the 105th Retirement Bond Certificate presentation and I am pleased to present bond certificates worth a total of N4,461,659,536.82 to 2,000 retirees from our civil service.
“This development marks a historic milestone as our dear State transitions into a new era of Pension Administration known as ‘Pay-As You-Go.’ From now on, all retirees of the State Government will be paid as they retire, provided all procedures and approvals have been completed before retirement.
”We have strategically prioritised clearing all backlogs of Accrued Rights payments to ensure our retirees enjoy dignity and financial stability after retirement. This commitment extends to the welfare of both current and former members of our workforce, recognising their unblemished careers in the State’s public service.
“These funds, along with their monthly contributions, have already been remitted into their respective Retirement Savings Accounts with the Pension Fund Administrators (PFAs).”
Sanwo-Olu said Lagos was the first State in the country to embrace the Contributory Pension Scheme when it commenced in 2004, pointing out that the State Government had paid N141.2 billion to 35,191 retirees till date.
Under his administration, the Governor disclosed that the State had paid N59.7 billion to 17,039 retirees over the last five years, making Lagos a top performer in pension payments.
Sanwo-Olu said the newly introduced health insurance scheme for the retirees was to further appreciate the service of the senior citizens in addition to payment of their financial entitlements.
He said, “We have also launched a Health Insurance Scheme tailored specifically for our retirees. This scheme will provide access to a wide range of medical services, from routine check-ups to specialised treatments.
“This initiative underscores our commitment to the well-being of our retirees, while ensuring that they receive not only what is due statutorily but also additional support and assistance to enhance your lives in retirement.”
LASPEC Director-General, Mr. Babalola Obilana, said the settlement of all backlogs of accrued rights demonstrated a significant achievement in public service, adding that the development reflected the Governor’s dedication to addressing the challenges faced by our retirees.
He said the Pay-As-You-Go template would help secure comfortable and dignified retirement for the retirees.
Head of Service, Mr. Olabode Agoro, observed that the Sanwo-Olu administration had been steadfast in recognising invaluable service of the State’s workforce, which made the Governor push all efforts to clear all backlogs of Accrued Rights Payments.
Agoro, who was represented by the Permanent Secretary in the Public Service Office, Mrs. Sunkanmi Oyegbola, said, “The State Government recognises and appreciates the remarkable contributions made by our esteemed retirees. Your commitment, dedication, and sacrifices have been instrumental in the achievements of our Public Service, which in turn have significantly contributed to the progress of our great State.”
Commissioner for Establishment and Training, Mr. Afolabi Ayantayo, said the transition to Pay-As-You-Go template had set a precedent for establishing a sustainable and dependable pension system, which would serve as a model in the country.
Ayantayo, represented by Permanent Secretary in the Ministry of Establishments and Training, Mrs Olubukola Abidakun, noted that the ministry had worked collaboratively with LASPEC and PFAs to ensure the disbursement processes were efficient and transparent.
“This gesture will undoubtedly impact the lives of our retirees positively, rebuild trust in the State’s pension system, boost employee morale, enhance productivity and ensure that public servants can anticipate a secure retirement,” the Commissioner said.
The retirees, in appreciation of the Governor’s gesture, held a special prayer session for Sanwo-Olu and his Deputy, Dr. Obafemi Hamzat. The senior citizens also trooped out to dance with the Governor.
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