The International Monetary Fund (IMF) has disclosed that the Federal Government may need to raise a supplementary budget to accommodate the proposed minimum wage increase for Nigerian workers.
According to the international lender, this has become necessary as the negotiated amount may surpass the budgeted amount in the original 2024 budget.
This was contained in IMF’s 2024 Article IV Consultation report recently released..
The new minimum wage has been an ongoing matter between Organised Labour and the government since the beginning of this year to cushion the impacts of the harsh economy.
Recent reforms in Nigeria including the removal of fuel subsidy and the unification of the foreign exchange market have pushed the cost of living to newer levels.
While labour leaders demand N615,000 from N30,000 as salaries for lowest ranked workers, there are indications the tripartite committee may recommend N70,000 as the new minimum wage.
Reacting to this, IMF said “The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the report stated.
READ ALSO:IMF warns Nigerian govt on amendment of CBN Act
In the 2024 budget, the government allocated N6.48tn for personnel costs but the international lender posits that the amount may be insufficient.
It also noted that the government might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the Central Bank Of Nigeria’s Ways and Means.
It said, “Based on staff’s projections, the authorities must raise the domestic and external borrowing ceilings to prevent renewed recourse to CBN financing. With higher interest rates, banks and nonbanks should have sufficient appetite—as indicated by market sources—conditional on careful management of system liquidity, including a likely reduction in the currently high cash reserve requirement.
“Staff projects that the government’s 2024 net financing needs can be met from the market and external borrowing. Domestic market financing needs to increase by 1.5 per cent of GDP over 2023. In addition, the government wants to retire outstanding ways and means borrowing from the CBN of 2.5 per cent of GDP through the issuance of further domestic securities.
It added, “While staff agrees that ways and means financing should be brought to zero by end-2024 in line with the law, the authorities may need to consider other options to avoid crowding out private sector credit, including drawing down the government’s deposits at the CBN built up in 2023 or a second securitisation operation to tackle this legacy problem.
“While external financing is costlier than when Nigeria last accessed Eurobond markets, staff supports an opportunistic issuance, also given upcoming maturities in 2025. A Eurobond issuance and some official financing are factored into staff’s projections as an integral part of the 2024 financing mix.”
By: Babajide Okeowo
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Nigerian govt may need supplementary budget to meet demands of new minimum wage, says IMF
Katsina Gov swears in new Head of Service, retains former Reform Adviser
Governor Dikko Umaru Radda of Katsina State has sworn in Alhaji Falalu Bawale as the state’s new Head of Service.
The Katsina Governor also swore in the immediate past Head of Service, Usman Isiyaku, as Special Adviser on Public Service Reforms and member of the State Executive Council.
Addressing the audience at the swearing-in ceremony after administering the oath of office and oath of allegiance to the appointees at the Katsina Government House Chamber, Governor Radda stated that both the new Head of Service and the Special Adviser were appointed on merit.
He called on all the permanent secretaries to join hands with the new head of service to enable them deliver for the progress of the state.
According to the Katsina Governor, the major challenge facing the incumbent administration was the issue of time, as the state government had a lot to cover.
Turning to the Special Adviser, Governor Radda described him as a committed and trustworthy personality, which prompted the state administration to retain him to enjoy more from his vast experience.
Katsina Gov swears in new Head of Service, retains former Reform Adviser
No respite for naira, depreciates further to N1478/$1 at official window
There is no respite yet for the Nigerian currency, the naira as it continued its depreciation against the dollar on Monday May 13, 2024 to trade at N1, 478/$1 data from the Nigerian Autonomous Foreign Exchange Market (NAFEM) has shown.
At the end of trading on Monday, the naira lost N12 against the dollar when compared to the previous exchange rate of N1, 466/$1 on Friday, May 10, 2024.
The intra-day high and low recorded during the day were N1,515/$1 and N1,301/$1 respectively, representing a lean spread of N214$1.
Similarly, the naira against the dollar at the parallel section of the market, crossing the N1500 point to trade at N1,515/$1 representing a loss of N45 when compared to the N1, N1,470/$1 it traded the previous trading day.
READ ALSO:Naira crashes further, trades at N1,421/$1 at official window
In the same vein, the naira lost N20 against the pound. The domestic currency depreciated by N20 against the British Pound to trade at N1,860£1 as against the previous trading price of N1,840/£1 representing a loss of N20 for the local currency,
The Canadian dollar closed flat against the naira to trade at N1,200| CA$1 same as the previous trading day rate of N1,200| CA$1.
The naira also depreciated massively against the Euro to trade at ₦1,600/€1 as against the rate of ₦1,530/€1 the previous trading rate this represents a loss of N70 in the local currency.
By: Babajide Okeowo
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RIVERS CRISIS: Asari-Dokubo lashes Wike, accuses him of ‘playing god’ (Video)
Former Niger Delta militant and founder of the defunct Niger Delta Peoples’ Volunteer Force (NDPVF), Mujahid Asari-Dokubo, has weighed in on the current political crisis rocking Rivers State as a result of the fallout between immediate past Governor Nyesom Wike and his estranged political godson, Governor Siminalayi Fubara.
In a video he posted on his Facebook page on Monday, Dokubo, an ally of Fubara, accused Wike of “playing god” who wants to be worshipped by everyone in the state including Fubara who was elected by the people of the state.
In the video, Dokubo also warned President Bola Tinubu not to make the mistake of handing over Rivers and Bayelsa to the FCT Minister.
“He (Wike) is now playing god. It is dead on arrival, all those things that he is doing,” Dokubo said in the video.
“I advise my friend, President Bola Tinubu; what you are doing to all Ijaw, Ikwerre people in Rivers State. You took Rivers state and gave it to one man.”
Dokubo who also seized the opportunity to celebrate Fubara as he clocks one year in office, said the incumbent governor was on the right path.
READ ALSO:Again, Asari-Dokubo laments appointments, says Tinubu ‘traveling on a dangerous path’ (Video)
“With Governor Fubara leading the way, there is hope for a future of growth and development, free from division and discord,” he said.
“Rivers State boasts abundant natural resources that, when properly utilized, can elevate the region into an economic powerhouse, creating opportunities and prosperity for its people.
“By following in the footsteps of the visionary founding fathers of Rivers State, like Chief Harold Dappa-Biriye and Chief Godfrey Kio Jaja Amachree, who championed unity and inclusivity, it is possible to build a united and prosperous future for all.
“As we celebrate this important milestone, I call on all residents of Rivers State to embrace peace, forgiveness, and inclusivity.
“By working together with Governor Fubara, regardless of political differences, a brighter and more prosperous future for Rivers State is within reach.”
The former militants leader also commended Tinubu for the award of the contract for the coastal highway, which he said would unleash wealth and development in the areas covered by the highway.
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Ohanaeze: Unfounded allegations won’t deter our pursuit of Igbo interest – Isiguzoro
The factional Secretary-General of Ohanaeze Ndigbo, Mazi Okechukwu Isiguzoro has declared that no amount of propaganda and frivolous allegations would make him jettison the pursuit of Igbo interest.
He spoke in reaction to allegations against him and some other chieftains of Ohanaeze Ndigbo by Ohanaeze President, Chief Emmanuel Iwuanyanwu.
Isiguzoro, who said there are clandestine meetings ahead of the 2027 election, which is aimed at satisfying the personal interest of an unnamed South-East governor in the All Progressives Congress, APC, said they would continue to frustrate such moves.
He said Professor Obasi Igwe, Dr. Harford Ugwu, and Professor Nwankwo Nwaezeigwe should be commended for standing tall in defence of Igbo interest and vilification.
“These noble individuals have exhibited unwavering courage in unveiling the hidden agendas and clandestine political machinations of the so-called ‘Ohanaeze Reconciliation Committee.’
“This committee, established in December 2023 with an office in Abuja, has been unmasked for its ulterior motive: to advance the 2027 Vice Presidential ambition of a Southeast Governor.
“The clandestine activities of this committee aim to pair a Southeast Governor as the running mate to a Northern presidential candidate in the 2027 elections.
“This strategic move seeks to exploit Northern discontent with the Federal Government to oppose President Bola Tinubu in the 2027 election.
“Despite facing setbacks exposed by leaked audio recordings, the civil intrigues to unseat President Tinubu persist, with financial backing provided by the Southeast Governor.
“This subversive effort involves leveraging a faction of misguided Igbo Elders to engage with Northern counterparts, Fulani leaders, and Northern Monarchs.”
He said the proponents had “resorted to deceptive tactics, baseless accusations, and alarmist strategies to obfuscate the truth.”
He said the allegations directed against him were “groundless, malicious, and untruthful.
“No monetary demands for any medical trip were made to Chief Iwuanyanwu by Isiguzoro. We challenge Chief Iwuanyanwu to substantiate any claims he makes.
“Isiguzoro, along with Professor Obasi, Professor. Nwankwo Nwezeigwe, and other dedicated individuals, will not be deterred by ongoing threats, intimidation, or false media propaganda.
“Recent events highlight the urgency of safeguarding OHANAEZE NDIGBO from being co-opted for the 2027 Vice Presidential aspirations of the Southeast Governor.
“Attempts to extend the President General’s tenure from Imo State and deprive Rivers State of the rightful opportunity to lead OHANAEZE Ndigbo must be scrutinized and resisted by Ndigbo.”
He called on all Ndigbo and well-meaning Nigerians “to stand together to safeguard our collective future from divisive forces seeking to manipulate our destiny.
“It is only through collaboration, honesty, and a firm dedication to the truth that we can navigate the challenges that lie ahead.”
Ohanaeze: Unfounded allegations won’t deter our pursuit of Igbo interest – Isiguzoro
FG petitions IGP as Niger Speaker moves to marry off 100 girls
Mrs Uju Kennedy-Ohanenye, Minister of Women Affairs, has petitioned the Inspector General of Police, IGP, and sought for a court injunction to stop Abdulmalik Sarkindaji, Speaker of the Niger State Assembly from marrying off 100 orphaned girls.
TVN recalls that the Speaker recently announced his plans to marry off the orphaned girls.
The orphans reportedly lost their parents due to banditry attacks in Mariga local government area of the state.
The Speaker announced that marrying them off would be part of his constituency project.
He announced that the gesture is “aimed at alleviating the suffering of the impoverished”, pledging to pay the dowries for the bridegrooms and have procured materials for the mass marriage.
Kennedy-Ohanenye, while briefing newsmen in Abuja on Monday, described the plans as “unacceptable” emphasising that a full-scale investigation has commenced on the issue.
“I want to let the honorable speaker of the house in Niger State to know that this is totally unacceptable by the Federal Minister of Women Affairs and by the government, totally unacceptable.
“Because there is something called the Child’s Right Act and I said it from the onset, that it is no more business as usual.
“These children must be considered, their future must be considered.
“So I have gone to court. I have written him a letter and written a petition to the IG of police.
”And I have filed for injunction to stop him from whatever he is planning to do on the 24th, until a thorough investigation is carried out on those girls, find out whether they gave their consent, their ages, find out the people marrying them,” she said
FG petitions IGP as Niger Speaker moves to marry off 100 girls
Ondo: NLC, TUC shut down NERC, BEDC offices in Akure
Following the hike in electricity tariff in the country, the leadership of the Nigeria Labour Congress, NLC, and the Trade Union Congress, TUC, on Monday shut the Ondo State headquarters of the Benin Electricity Distribution Company, BEDC, situated within NEPA axis of Akure, the state capital.
The protest was in compliance with organised labour national leadership’s directive over the recent action of the National Electricity Regulatory Commission, NERC.
With the main gate of the BEDC barricaded by the unionists, members of staff of the commission were prevented from gaining entrance to the premises as the protesting union members demanded for the reversal of the tariff hike.
Speaking while picketing the Discos office, the Ondo State Chairman of the NLC, Comrade Victor Amoko described the recent hike in electricity tariff as unjustifiable.
Amoko, who was flanked by the State JNC Chairman, Comrade Ademola Olapade and other affiliate union chairmen, noted that, “we discovered that the FG is so silent over the tariff hike and we observed that the FG is intentionally supporting them to frustrate us.
“We say no to increment in tariff. Before now, we didn’t have adequate electricity supply despite paying a huge amount of money.
“In Akure for instance, for four good days, we won’t have electricity supply and they keep increasing the tariff. We are saying enough is enough.
“What they’re doing is clandestinely short-changing the entire populace. We don’t want it anymore.”
On his part, the State Chairman of TUC, Clement Fatuase appealed to President Bola Tinubu to halt the various harsh economic policies his administration had been introducing in the last one year.
Ondo: NLC, TUC shut down NERC, BEDC offices in Akure
Top 10 stories from across Nigerian Newspapers, Tuesday, May 14, 2024
Here are the top 10 stories making headlines across the country.
1. Tinubu orders MDAs to buy only CNG vehicles
President Bola Tinubu on Monday issued a directive to all government ministries, departments and agencies to end the purchase of petrol-powered vehicles and go for compressed natural gas (CNG)-powered vehicles.Read more
2. Obi visits Atiku, Lamido, Saraki in their Abuja homes
The 2023 presidential candidate of the Labour Party, Peter Obi, on Monday, visited visited former Vice President, Atiku Abubakar, former President of the Senate, Bukola Saraki and former Jigawa State Governor, Sule Lamido in their Abuja homes.Read more
3. IPOB warns Nigerian govt against citing foreign military base in South-East
The Indigenous People of Biafra (IPOB) on Monday warned the Federal Government any plan to establish a military base in the South-East would be met with stiff resistance.Read more
4. Two Chinese, 30 others arrested by Oyo govt for illegal mining
Oyo State Government, on Monday, said it has arrested 32 illegal miners, including two Chinese nationals over activities of illegal miners at Sooro market in Kishi, Irepo Local Government Area of the state.Read more
5. Fubara goes for the jugular, vows to set up probe panel into governance in Rivers
Governor Siminalayi Fubara of Rivers State has taken the crisis rocking the state a notche higher, as he vowed, on Monday, to set up a panel of inquiry to look into the affairs of governance in the state.Read more
READ ALSO:Top 10 stories from across Nigerian Newspapers, Saturday, May 11, 2024
6. Tribunal reserves judgment in Kogi gov election dispute
The Kogi State Governorship Election Petition Tribunal, sitting in Abuja on Monday, reserved judgment in the petition filed by the Social Democratic Party and its governorship candidate, Murtala Ajaka, against the election victory of Governor Usman Ododo.Read more
7. MPC will do anything necessary to tame inflation, says Cardoso
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, has disclosed that members of the Monetary Policy Committee (MPC) will do whatever is necessary” to keep soaring inflation in check.Read more
8. Customs, Chinese counterpart sign MoU to enhance economic growth
The Nigeria Customs Service (NCS) and the General Administration of Customs of the People’s Republic of China (GACC) have signed a Memorandum of Understanding (MoU) to foster bilateral relationship between the two countries.Read more
9. China moves to gather samples from moon’s unexplored areas
China has moved to become the first country on Earth to retrieve samples from moon’s previously unexplored areas using an unmanned spacecraft.Read more
10. Sports Minister hails NFF for appointing local coach for S’Eagles
Minister of Sports Development, Senator John Owan Enoh on Monday praised the leadership of Nigeria Football Federation (NFF) for settling for an indigenous Head Coach for the Super Eagles, despite the plethora of foreign tacticians who applied for the job.Read more
The post Top 10 stories from across Nigerian Newspapers, Tuesday, May 14, 2024 appeared first on Latest Nigeria News | Top Stories from TVN.
Electricity tariff hike: Nigerian govt reveals next plan after workers’ protest
The controversy surrounding last month’s electricity tariff hike is yet to fade as the Nigerian workers, on Monday, disrupted activities in the power sector, demanding its reversal.
TVN reports that the organized labour picketed offices of all eleven Electricity Distribution Companies and the Nigerian Electricity Regulatory Commission, NERC.
In Abuja, the protest was led by Joe Ajaero, NLC president, to the Ministry of Power and the NERC headquarters.
Offices of Abuja Electricity Distribution Company were also shut down as workers were prevented from resumption.
Similarly, they picketed the offices of the eleven discos in Kwara, Lagos, Kaduna, Plateau, Enugu, Sokoto and other parts of the country.
Ajaero, during the picketing, said NERC should review its methodology for tariff increases in the electricity sector.
He noted the tariff hike is the fundamental cause of the country’s soaring headlines and food inflation, which stood at 33.20 per cent and 40.01 per cent in March.
In response to the organized labour’s one-day protest, the Nigerian Government has said that it is ready to negotiate with organized labour.
A spokesperson for the Ministry of Power, Mrs Florence Eke, in a telephone interview with TVN after workers crippled activities at the Ministry of Power, said the Federal Government, through the Permanent Secretary, Mr Mamman Mahmuda, had convened a consultative meeting for the next week with the organized labour and stakeholders to address the matter.
“The permanent secretary assured me that the Ministry is also a worker.
“The Ministry has asserted that its responsibility is to make policy while agencies, in this case, the Nigerian Electricity Regulatory Commission, and other agencies implement it.
“The Ministry will invite all stakeholders for a proper consultation by next week,” she said.
However, the Nigeria Labour Congress spokesperson, Benson Upah, told TVN that the government was supposed to consult before implementing the April 3 electricity tariff hike.
He warned that the picketing was just a teaser of what was to come if the Nigerian Government did not reverse the tariff hike.
“They were supposed to do a consultation before the tariff hike. What happened today is a teaser to what will come if the Government does nothing,” he said.
Recall that in April 2024, the Nigerian Electricity Regulatory Commission announced a 240 per cent electricity tariff increase for Band A customers getting 20-24 hours of power supply.
The hike led to customers in band A paying N225 kwh from N68 Kwh.
As justification for the hike, the Nigerian Government at different fora said it would save the country N1.5 trillion, and that only 15 per cent of the 12.8 million electricity customers would be affected.
Following the hike rejection by Nigerians, a recent minor reduction of N18.2 was announced.
However, workers’ picketing of Discos and NERC showed that the organized labour is unsatisfied with the Government’s minor tariff reduction.
Reacting to the development, Ewetumo A A, a retired staff member of the defunct Power Holding Company of Nigeria, PHCN, formerly the National Electric Power Authority, NEPA, said the picketing by the organized labour was long overdue.
“Regrettably, today’s picketing action by the NLC and TUC is belated and long overdue.
“The April 3, 2024, tariff increase, though only on Band A consumers, is having a ripple and multiplier effect on the economy.
“The inflationary trend in the country is alarming and worrisome.
“This present increase can only make it worse.
“NERC must adopt a more pragmatic and gradual three-step review approach to implementing its Cost Reflective Tariff Regime without unsettling the economy.
“Ultimately, the power sector needs a massive infusion of capital to build new power plants and refurbish the ageing old network.
“The Federal government is advised to explore a Public Private Partnership initiative to fund the power sector, incorporate the various states into blocks of regions to undertake a total transformation of the Power Sector”, he told TVN.
Electricity tariff hike: Nigerian govt reveals next plan after workers’ protest
Kebbi NLC, TUC protest tariff hike, shutdown KEDCO, NERC offices
The Nigeria Labour Congress, NLC, and Trade Union Congress, TUC, in Kebbi State have taken action by shutting down the offices of Kano Electricity Distribution Company, KEDCO, and the Nigerian Electricity Regulatory Commission, NERC.
Following directives from their national headquarters, the unions ensured the closure of these offices in Birnin Kebbi, with staff complying with the labour orders.
Speaking to reporters, Comrade Murtala Usman, the NLC Chairman for Kebbi State, criticised the tariff increase, citing the lack of stable electricity supply in the country.
“Organised Labour is calling for the reverse of the increase of the electricity tariff immediately by the Federal Government and NERC, distribution companies in the country.
“We are no longer comfortable with this increase of the tariff. Members of the Nigerian Union of Electricity Union are being harassed every day whenever they go out to discharge their civil duties because Nigerians thought they were the ones behind the increment of the electricity tariff.
“The worst aspect of this is the bands they introduced to us. You will see an area enjoying a good supply of electricity while others are getting a supply for 2 to 8 hours a day. Other areas will not even enjoy up to 2 hours in a day,” Usman added.
Usman criticised the privatisation of the electricity sector, arguing that it has not solved the issue of stable electricity and has left Nigerians paying for faulty transformers and damaged cables.
The picketing exercise was also attended by TUC state chairman, Comrade Atiku Alkali; NUEE chairman, Comrade Ibrahim Tusha’u; and Comrade Muhammed Usman Anache, the Secretary General of Initiative for Transparency and Justice.
Kebbi NLC, TUC protest tariff hike, shutdown KEDCO, NERC offices