Author: Abdulrahman Kadiri

Wage

By Kadiri Abdulrahman

Abuja, June 26, 2024 (NAN) Some civil servants have decried the delay in payment of approved salary adjustments for civil servants on the consolidated salary structure, as well as the prolonged minimum wage negotiations.

The civil servants spoke to the News Agency of Nigeria (NAN) on Wednesday in Abuja.

Dr Uche Anunne commended President Bola Tinubu for approving the increase of between 25 per cent and 35 per cent salary increase for civil servants on the six consolidated salary structures.

He urged the government to expedite action on its implementation to help the workers ameliorate the present economic hardship.

“It is a good thing the president appreciates that there is the need to provide some palliatives by way of adjustment and harmonisation of salaries of public sector workers at the federal level.

“However, I wish the president could expedite action in that regard because, as it is now, many Federal Government workers are passing through difficult times arising from certain policy adjustments.

“I know that it is usually not very easy to negotiate and agree on sensitive issues like the minimum wage, the two parties, the Federal Government and the labour unions, have sound arguments.’’

According to him, the president can consider the implications of salary adjustment and its sustainability, as well as the ability of state governments to pay.

“It is good that they are driving an inclusive approach to the negotiation process.

“But salary adjustment for workers is long overdue; I call on the president to take urgent steps to ensure that the minimum wage impasse is resolved as quickly as possible.

“While workers continue to wait for salary adjustment, issues bothering on family expenses are not waiting; they are daily requirements.

“The long wait for a living wage in the midst of rising cost of goods and services is actually affecting the productivity of workers,” Anune said.

He said that the N250, 000 minimum wage figure of the labour unions should be acceptable to all workers since the unions represented the workers.

Another civil servant, Mr Joseph Edeh, said that the delay in implementation of the salary adjustment and the prolonged minimum wage negotiations were unfortunate.

According to Edeh, what Nigerians are going through presently does not warrant such delay.

“And the communication gap is fuelling a lot of suspicion; nobody knows the reason for the delay.

“There is the need for better communication so as not to put Nigerians in the dark.

“The labour unions have done well and they need to be encouraged as they try to negotiate a decent wage for the workers,” he said.

Mrs Dorcas Jonah appealed to the Federal Government to “try and do the needful” by effecting payment of the salary adjustment.

According to her, the prevailing economic hardship is taking its toll on civil servants and their families.

“A lot of civil servants would have planned on the money and it would have gone a long way to help those who have children going back to school.

“So many civil servants now survive on loans; delaying the payment is not helpful at all,” she said.

She urged the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) not to relent in their struggle for a decent living wage for the Nigerian worker.

“There is a plethora of things to agitate for; the price of everything has skyrocketed; the labour unions should not relent,” she said.

Angela Atabo, another civil servant, said that the delay in implementation of the various increases in salaries was counterproductive to the workers.

“On workers’ day, we had hoped that a new minimum wage would be announced but our hopes were dashed because the issue was not even mentioned.

“The 25 per cent and 35 per cent salary adjustment was announced, and civil servants have been planning on it

“We can only urge the government to expedite action on implementation,” she said.

Meanwhile, the Director of Press, Office of the Accountant General of the Federation (OAGF), Mr Bawa Mokwa, said that the wage adjustment had been approved.

Mokwa said that its implementation was awaiting a directive and cash backing by the Federal Ministry of Finance and National Planning.

He urged civil servants to exercise a little more patience as all issues relating to salary adjustment and minimum wage would soon be resolved.

NAN reports that aside from negotiations for a new minimum wage, the Federal Government had approved between 25 per cent and 35 per cent salary increase for civil servants on the six consolidated salary structures.

The salary increase, announced on April 30, the eve of the workers’ day celebration, was contained in a statement issued by Emmanuel Njoku, head of press, at the National Salaries, Incomes and Wages Commission.

The statement said the increase would take effect from Jan. 1.

The six consolidated salary structures affected are consolidated public service salary structure (CONPSS); consolidated research and allied institutions salary structure (CONRAISS), and consolidated police salary structure (CONPOSS).

Others are consolidated para-military salary structure (CONPASS); consolidated intelligence community salary structure (CONICCS); and consolidated armed forces salary structure .

The Federal Government also approved an increase in pension of between 20 per cent and 28 per cent for pensioners, on the defined benefits scheme with respect to the six consolidated salary structures.

Health workers, academic and non-academic staff working in federal tertiary institutions are not included in this latest salary increase.

In July 2023, the Federal Government approved a 25 per cent salary increase for health workers under the consolidated health salary structure (CONHESS), and consolidated medical salary structure (CONMESS).

In September 2023, the Federal Government also announced a percentage increase in salaries for academic and non-academic staff of all tertiary institutions across the country. (NAN)(www.nannews.ng)

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Edited by Chijioke Okoronkwo

The Director-General of the DMO,  Patience Oniha

Debt

By Kadiri Abdulrahman

Abuja, June 25, 2024 (NAN) The Debt Management Office, says the rise in Nigeria’s public debt stock from N97.34 trillion in December, 2023 to N121.67 trillion in March is partly due to exchange rate fluctuations.

The Director-General of DMO, Patience Oniha, said this in an interview with the News Agency of Nigeria (NAN) on Tuesday in Abuja.

She was clarifying misconceptions about the recently released update of the country’s total debt profile.

She said that the securitisation of N4.90 trillion as part of the securitisation of the N7.3 trillion Ways and Means Advances approved by the National Assembly was also responsible for the N24.33 trillion increase in the debt stock.

According to her, there is also the interest rate, as well as new borrowing of N2.81 trillion as part of the N6.06 trillion provided in the 2024 budget.

She, however, emphasised that the debt stock included the domestic and external debt stock of the thirty-six states and the Federal Capital Territory (FCT).

“The total public debt as at March 31, showed that the total public debt in Naira terms stood at N121.67 trillion compared to N97.34 trillion as at December 31, 2023.

“While detailed information was provided on the data such as the split between external and domestic debt as well as the fact that the debt stock includes the domestic and external debt stock of the 36 states and the FCT, it has become imperative to provide some explanations.

“It is important to recognise the fact that Nigeria has undergone some major reforms which have impacted economic indices such as the dollar/Naira exchange rate and interest rates.

“These two, in particular affect the debt stock and debt service,” she said.

Oniha said that the increase in Naira Terms of N24.33 trillion between the fourth quarter of 2023, and first quarter of 2024, did not strictly represent new borrowing.

She said that the total external debt stock was relatively flat at 42.50 billion dollars and 42.12 billion dollars in the fourth quarter of 2023, and first quarter of 2024 respectively.

“The Naira values were significantly different at N38.22 trillion and N56.02 trillion respectively, representing a difference of N17.8 trillion.

“This explains the perceived sharp increase of N24.33 trillion in the total debt stock in the first quarter of 2024.

“The difference in the exchange rate for the two periods also explains why in dollar terms, the total debt stock actually declined in the first quarter of 2024 to 91.46 billion dollars,” Oniha said.

She said that the debt report was somewhat an improvement from the past, before President Bola Tinubu government.

According to her, if you discount FX impact, the debt is moderate and within normal limit.

She urged the Federal Government to prioritise fiscal retrenchment, while assuring that the various measures to attract foreign exchange inflows would increase external reserves and support the Naira exchange rate. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

Examining effects of workers’ strike on Nigeria’s economy

By Kadiri Abdulrahman, News Agency of Nigeria (NAN)

On June 3, the two major labour unions in Nigeria, the Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC) called out other affiliate unions on an indefinite strike.

This was due to break down in negotiations for a new minimum wage for Nigerian workers between the unions and the Federal Government to cushion effect of the present economic realities occasioned by certain government policies.

The President of the NLC, Joe Ajaero, had announced that the strike followed failed negotiations between the government and organised labour.

Labour unions all over the world use strike as the most overt expression of industrial conflict, but it has far-reaching implications on the economy.

Experts are of the opinion that though industrial conflict is inevitable, strike can be avoided with good industrial relations.

During the last industrial action which, was suspended after three days, the national electricity grid was shut down, plunging the entire nation in darkness, while airline operations were disrupted across the nation.

Strike actions are a recurring feature in Nigeria, frequently used as a means of civil resistance and public expression.

These strikes have been accompanied by adverse economic consequences, including work stoppages, surging inflation rates, and sluggish overall economic growth.

According to a financial analyst, Aminu Abdulkadri, associated financial burdens are substantial, encompassing costs related to lost workdays, stalled infrastructure projects, and delayed service delivery, often amounting to huge financial losses.

“Rising inflation erodes consumer purchasing power leading to a contraction in aggregate demand as households and businesses grapple with reduced disposable income.

“The added pressure of a strike action can only worsen situation,” he said.

An economist, Peter Ogunmefu, said that the consistent spectre of strikes could deter foreign investment and erode investor confidence.

According to him, it can affect Foreign Direct Investments (FDIs), contribute to capital flight, and negatively affect foreign exchange earnings.

“Cultivating a more stable industrial relations is important for attracting investment, fostering sustainable economic growth and improving the overall economic well-being of Nigeria’s populace,” he said.

The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said that strikes usually constrained productivity.

“This means that we will not be able to run the hours of production that we used to run and this will lead to reduced capacity utilisation.

“During the period when we are not able to meet our production target, it means that the product that will be available for us to sell will be much lower and we are going to have a reduction in the number of manpower.

“It will lead to government’s reduced revenue and the trickle-down effect of that is that what a well-functional manufacturing process would have delivered to the economy will be lost,’’ he said.

Also, the National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said that strikes by the labour unions would usually put economic activities at a standstill, adding that every strike has consequences.

Kuti-George said that micro, small and medium enterprises being private usually do not go on strike.

“But if the people that serve them like the raw material suppliers, logistics people and all that are on strike, then certainly it is going to affect them,” he said.

An economist, Olorunfemi Idris, said that strikes could lead to reduced production, lost revenue, increased costs, damaged reputation, and social unrest, ultimately resulting in significant economic losses.

According to him, the impact of strikes on the economy cannot be overstated.

“A strike by oil workers for example, can lead to a decrease in oil production, resulting in lost government revenue and foreign exchange earnings.

“This can have a ripple effect on other industries and ultimately negatively impact the overall economy,” he said.

Idris said that the cost of a one-day strike in Nigeria can be as high as 100 million dollars.

He cited a study by the Nigerian Economic Summit Group (NESG), which estimated that the 2018 strike by the Academic Staff Union of Universities (ASUU) cost the economy 1.5 billion dollars.

“Strikes can also have long-term effects, such as declined investment and productivity in key sectors like oil, which can further worsen the economic impact,” he said.

As the nation comes to terms with the realities of the negative economic impact of industrial actions, Nigerians are urging the government, the labour unions and other stakeholders to prioritise dialogue and negotiation to avoid strikes and mitigate their effects on the economy.

Experts in key sectors of the economy have also cautioned that the nation risk losing N50 billion daily to strikes.

They said that apart from compounding the nation’s economic problems, strikes would create fear and send wrong signals to foreign investors. (NANFeatures)

***** If used, please credit the writer and the News Agency of Nigeria (NAN)

Nigeria’s debt stock hits N121trn – DMO

Debt

By Kadiri Abdulrahman

Abuja, June 21, 2024 (NAN) The Debt Management Office (DMO) says Nigeria’s total public debt stock hit N121.67 trillion (91.46 billion dollars) in March.

The Director-General of the DMO, Patience Oniha, made this known in a statement on Friday in Abuja.

Oniha said that the debt stock comprised the total external and domestic debts of the Federal Government, the 36 state governments, and the Federal Capital Territory (FCT).

According to her, the total domestic debt, as at March, was N65.65 trillion (46.29 dollars), while the total external debt was N56.02 trillion (42.12 billion dollars).

She said that the comparative figure of the total debt stock for December 2023 was N97.34 trillion (108.23 billion dollars).

She said that the increase in the total debt stock was informed by growth in the domestic component of the debt to bridge deficit in the 2024 budget, and instability in the foreign exchange market during the first quarter.

“Excluding Naira exchange rate movements in the first quarter of 2024, only the domestic debt component of the total debt stock grew from N59.12 trillion on Dec. 31, 2023 to N65.75 trillion on March 31.

“The increase was from new borrowing to part-finance the 2024 budget deficit and securitisation of a portion of the N7 3 trillion Ways and Means advances at the Central Bank of Nigeria (CBN),” she said.

She said that improvement in government revenue would go a long way in ensuring debt sustainability, while borrowing, as provided in the 2024 budget would continue.(NAN)(www.nannews.ng)
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edited by Sadiya Hamza

The Director-General of the DMO,  Patience Oniha

DMO re-opens 3 bonds worth N450bn for subscription by auction

Bonds

By Kadiri Abdulrahman

Abuja, June 20, 2024 (NAN) The Debt Management Office (DMO), on Thursday announced a re-opening of three FGN savings bonds worth N450 billion for subscription by auction.

Announcing the offer in Abuja, the DMO said that the bonds were offered at N1, 000 per unit subject to a minimum subscription of N50 million and in multiples of N1, 000 thereafter.

The first offer, as announced by the DMO, is an April 2029 FGN bond valued N150 billion, at an interest rate of 19.30 per cent per annum. (Five-year re-opening)

The second offer is a February 2031 FGN bond worth N150 billion at 19.50 per cent interest rate per annum. (Seven-year re-opening)

There is also the May 2033 FGN bond worth N150 billion at an interest rate of 19.89 per cent per annum. (nine-year re-opening)

According to the DMO, the auction date is June 14, while the settlement date is June 26.

It said that interest was payable semi-annually while bullet repayment (principal sum) would be made on maturity date.

“For re-openings of previously issued bonds, successful bidders will pay a price corresponding to the yield-to-maturity bid that clears the volume being auctioned, plus any accrued interest on the instrument,” It said.

The debt office said that FGN bonds were backed by the full faith and credit of the Federal Government, and charged upon the general assets of Nigeria.

“They qualify as securities in which trustees can invest under the Trustees Investment Act.

“They qualify as government securities within the meaning of Company Income Tax Act and Personal Income Tax Act for tax exemption for pension funds amongst other investors.

“They are listed on the Nigerian Exchange Limited and FMDQ ODC Securities Exchange,” the DMO said.

It also said that FGN bonds qualified as liquid assets for liquidity ratio calculation for banks.

The News Agency of Nigeria (NAN) reports that the N450 billion FGN bond offer constitutes the local component of the government borrowing plan, to bridge the nine trillion Naira deficit in the 2024 budget.(NAN)(www.nannews.ng)

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Edited by Joseph Edeh

Standard

By Kadiri Abdulrahman

Abuja, June 12, 2024 (NAN) As Nigeria celebrates democracy day, some stakeholders have urged President Bola Tinubu to take urgent steps to improve the living standard of Nigerians.

Speaking to the News Agency of Nigeria (NAN) in Abuja on Wednesday, they urged the government to retrace its steps and formulate policies that would quickly check inflation and improve the welfare of ordinary Nigerians.

A civil servant, Salawu Ajoze, said that since Tinubu took over government in the past one year, things appeared to have gotten worse.

He urged the Federal Government to reconsider some of its policies that had imposed hardship on the populace.

“There was very high hope and expectations when Tinubu took over in 2023, but everything appears to have been dashed.

“The removal of petrol subsidy alone has created serious economic hardship, which the government has not been able to ameliorate till now, ” he said.

He urged the president to agree with the organised labour on a decent living wage for Nigerian workers so as to reduce the huge financial burden that his policies had placed on them.

Abbas Ibrahim, a pharmacist, said that there was virtually nothing to celebrate about the democracy day.

According to Ibrahim, since the return to democracy in 1999, the country appears to be retrogressing.

“The idea of democracy was to create an atmosphere of freedom for equitable development and economic prosperity, but that has not been the case in Nigeria.

“Since 1999, things appear to be degenerating. Look at the high level of insecurity, inflation, unemployment. There is really nothing to celebrate about Nigerian democracy, ” he said.

Mr Aliu Sule, a retired director in the federal civil service, blamed the insensitivity of politicians for worsening living condition of. Nigerians.

Sule called for a drastic reduction in the cost of governance to allow more funds for development.

“The cost of governance in Nigeria appears to be the highest in the world, yet our minimum wage ranks among the lowest.

“I suggest a drastic cut in the cost of governance. In fact, we should start by scrapping one arm of the National Assembly and embracing the unicameral legislature. That will go a long way to freeing more funds for development, ” he said.

However, Mr Abdulkadri Aminu, a public affairs analyst, urged Nigerians to give the Federal Government benefit of the doubt, and more time for its economic policies to gestate.

According to him, no government can deliberately adopt policies with the intention of subjecting its populace to hardship.

“I agree that things are looking tough for Nigerians, but I am hopeful that the situation will improve over time when government policies start to bear fruit, ” he said. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

FAAC

By Kadiri Abdulrahman

Abuja, June 10, 2024 (NAN) The Federation Accounts Allocation Committee (FAAC), on Monday shared  N1.143 trillion among the Federal Government, states and Local Government Councils (LGCs) for May.

The revenue was shared at the June meeting of the FAAC, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

According to a communiqué issued by the committee at the end of the meeting, the N1.143 trillion total revenue comprised statutory revenue of N157.183 billion, Value Added Tax (VAT) revenue of N463.425 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N15.146 billion and Exchange Difference revenue of N507.456 billion.

It said that revenue of N2.324 trillion was available in the month of May.

” Total deduction for cost of collection is N76.647 billion, while total transfers, interventions, and refunds is N1.104 trillion.

“Gross statutory revenue of N1.223 trillion was received for the month of May 2024. This was lower than the sum of N1,233 trillion received in the month of April by N9.604 billion,” it said .

The communiqué said that
gross revenue of N497.665 billion was available from VAT in May, which was lower than the N500.920 billion available in April by N3.255 billion.

It confirmed that from the N1.143 trillion total revenue, the Federal Government received N365.813 billion, the state governments received N388.419 billion, and the LGCs received N282.476 billion.

It said that the sum of N106.502 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

On the N157.183 billion statutory revenue, the communiqué said that the Federal Government received N61.010 billion, the state governments received N30.945 billion, and the LGCs received N23.857 billion.

“The sum of N41.371 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“The Federal Government received N69.514 billion, the state governments received N231.713 billion, and the LGCs received N162.199 billion from the N463.425 billion VAT revenue.

“A total sum of N2.272 billion was received by the Federal Government from the N15.146 billion EMTL, the state governments received N7.573 billion, and the LGCs received N5.301 billion,” it said.

According to the communiqué, the
balance in the Excess Crude Account (ECA) is 473,754.57 dollars, (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

Licence

By Kadiri Abdulrahman

Abuja, June 6, 2024 (NAN) Some financial experts have commnded the Central Bank of Nigeria (CBN) for its proactive action in revoking the operating licence of Heritage Bank Plc in order to save depositors’ funds.

The experts, who spoke with the News Agency of Nigeria (NAN), on Monday in Abuja, said that the action was in the overall interest of the financial system.

According to Uche Uwaleke, a Professor of Finamce and Capital Market, and the president of Capital Market Academics of Nigeria, the revocation is a step in the right direction.

Uwaleke said that the proactive step by the CBN was in the overall interest of financial system stability.

He, however, said that efforts should be made to protect the depositors and employees of the liquidated bank.

“With the Nigeria Deposit Insurance Corporation (NDIC) taking over the liquidation process, efforts should be made to protect the depositors as well as interests of employees using liquidation dividends,” he said.

An economist, Dr Chijioke Ekechukwu, said that Heritage Bank had been struggling over the years to remain afloat, adding that the situation must have become irredeemable for the apex bank to revoke its licence.

According to Ekechukwu, a  past  president  of  the  Abuja  Chamber  of  Commerce  and  Industry, some years ago, some of us in the finance sector knew that the bank is struggling to remain afloat.

“For the CBN to revoke its licence, it means that it was irredeemable and probably not marketable to investors,” he said.

He said that there would be an initial setback to all the bank’s customers because it would take a while to verify them for the purpose of compensation and refund of their monies by the NDIC.

“It is, however, better to sanitise the financial system than to allow a sick and weak bank to continue to open its doors to customers,” he said.

Mr Gregory Mmaduakolam, also an economist, said that the action by the CBN was rash and capable of eroding the much needed confidence in the banking system.

Mmaduakolam said that the action would also result in avoidable job loss of staff of the bank, thereby, further exacerbating the country’s unemployment challenge.

“I would have preferred a situation where the CBN supports ailing banks and prevent them from failing than simply withdrawing their licences.

“Such an action does not encourage confidence in the banking system, ” he said.

The News Agency of Nigeria (NAN) reports that the CBN had on Monday, announced revocation of the licence of of the bank witb immediate effect.

It said that the action was in accordance with the apex bank’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA).

It said that the board and nanagement of the bank had not been able to improve the bank’s financial performance, a situation which constituted a threat to financial stability. (NAN)(www.nannews.ng)

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Edited by Ese E. Eniola Williams

No plan to revoke more bank licences – CBN

CBN Governor,  Yemi Cardoso

Bank

By Kadiri Abdulrahman

Abuja, June 4, 2024 (NAN) The Central Bank of Nigeria (CBN) says it has no plan to revoke the licences of more Deposit Money Banks (DMBs).

The Acting Director, Corporate Communications of the apex bank, Mrs Hakama Sidi-Ali, said this in a statement on Tuesday in Abuja.

Sidi-Ali’s statement was a response to allegations in some quarters of plans to revoke the licences of Unity, Keystone and Polaris banks, following the withdrawal of the operating licence of Heritage Bank on Monday.

“The attention of the CBN has been drawn to some information
circulating in the public domain, suggesting that the CBN is set to revoke the licenses of three additional banks following its regulatory action against Heritage Bank Plc on Monday.

“The CBN unequivocally states that these allegations are false and intended to trigger panic in the financial system.

“The Nigerian financial system remains safe, sound, and resilient.

“Our banks have begun submitting implementation plans for the Banking Sector Recapitalisation Programme in compliance with the Circular reviewing the minimum capital requirements for
Commercial, Merchant, and Non-Interest Banks (CMNIBs),” she said.

She said that the plans were currently being reviewed by the apex bank.

According to her, in addition to enhancing buffers to withstand economic shocks, this proactive measure by the CBN to require CMNIBs to recapitalize, will result in increased capital for Nigeria’s bank.

She said that it would enable them to provide much-needed credit to critical sectors of the economy.

“This will increase the financial system’s contribution to the growth and development of a one trillion dollars Nigerian economy.

“The CBN will like to reassure all stakeholders of its unwavering commitment to ensuring the financial system’s stability.

“Our financial system remains on a solid footing, and the CBN
will continue to take all necessary steps to maintain its safety and soundness,” the director said.

The News Agency of Nigeria (NAN) reports that the CBN had, on Monday, announced revocation of the licence of Heritage Bank Plc with immediate effect.

It said that the action was in accordance with the apex bank’s mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA).

It said that the board and nanagement of the bank had not been able to improve the bank’s financial performance, a situation which constituted a threat to financial stability.(NAN)(www.nannews.ng)

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Edited by Maureen Atuonwu
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