THERE are very good vibes coming from the Ministry of Communications, Innovation and Digital Economy. They give a good feel to the ears and even more catchy for the eyes. At a press meet which looked more like a well-worked roadshow to promote a new Bill currently with the National Assembly, titled: ‘National Digital Economy and e-Government Bill’, the Minister, Dr Bosun Tijani, said the passing of the Bill could inject $18.3bn into the nation’s economy. 

That sounds very good and attractive. Introduced as ‘A Bill for an Act to enable the growth of Digital Economy and Digital Governance in Nigeria by improving the certainty of digital transactions, digital service delivery, and matters related’, the 54-page document has objectives, which include: To enhance the use of digital technology to grow Nigeria’s economy; to create an enabling environment for fair competition to promote innovation, growth, and competitiveness for the Nigerian Digital Economy;  to create export-oriented capacities in Nigeria’s digital economy to improve Nigeria’s balance of trade and services; and to mandate, promote and enable the digital transformation of public institutions and Government processes for efficient and effective service delivery.

The Bill seeks to bring clarity and validity to digital transactions, trade and business relationships while setting new standards in government to government communications and government interface with the public.  

It is fair to say that the Bill looks at governance with digital eyes from the psychedelic positioning of the young-at-heart who, perhaps, look at yesterday as a life too far gone and very antiquated. The Bill encourages you to do transactions without ever meeting your trade partners, and everything executed to specifications, with the right signatures electronically appended, and with generous assurances of fidelity in the entire process. It will smoothen  processes and evaporate bureaucracies in government offices. It plans to reset Nigeria with a new engine, a digital one for that matter.

This is not a preview at all. But there are a couple of things which raise something more alarming than the proverbial red flag. I am not a learned fellow, dear friends, but fairly literate to the extent of knowing when a language is becoming violent and superfluous. Look at this. 

In Part XV, under Miscellaneous, which is annotated as ‘Supremacy of National Digital Economy and E-Governance Act’, the Bill which is confusingly called an Act, states as follows: “Notwithstanding the provisions of any other law but subject to the provisions of the Constitution of the Federal Republic of Nigeria, in all matters relating to the digital economy and e-government, the provisions of the Act shall override the provisions of any other Law; and the Regulatory agency shall establish regulations on the use and adoption of new and emerging technologies as it relates to information technology.”

The foregoing two examples will suffice. But here is my gut feeling about the Bill. The Bill puts on the costume of dollars to beguile a nation and a National Assembly that may not see beyond the superficiality of monetary attractions, especially in a country with roaring inflation and troubling food prices. The Bill which is like a child trying to appropriate the responsibilities of a father, holds in absolute contempt other existing Acts irrespective of age. 

Already in existence are the Cybercrimes(Prohibition, Prevention, etc) Act, 2015; Nigerian Communications Act 2003; The National Broadcasting Commission Act Cap N11 Laws of the Federation of Nigeria 2004; National Information Technology Development Agency, NITDA, Act 2007, and, in fact, there is already a very controversial Bill at the National Assembly which seeks to amend the existing NITDA Act. And then, this new one entirely. 

This particular Bill will set up a regulator for the digital space which may be given the rapacious opportunity to swallow up other Acts before it. That may be the only way to accommodate a new regulator in these days that the current administration is trying to trim the size of government. The dollar sign is only a ruse, a smokescreen that will evaporate at the approach of reality. 

But I must also admit the Bill is well written, perhaps too sugar-coated; the lawmakers must strip it of all its excesses and octopi positioning. The Bill should only try to encourage new businesses and opportunities in the digital ecosystem and not cause chaos in already established areas.

Irrespective of promoted advantages and the huge inflow of cash expected to come into the economy, I see a whole lot of contradictions and that troubles me. It seems the minister is on a drive at such a speed that leaves relevant stakeholders behind. 

Asked whether the telecommunications industry was ever consulted as critical stakeholders before the Bill was put in place, a highly placed industry source told this writer that there was never such consultation. “Those in authority are not interested in negative or constructive feedback. They are only interested in what they want to hear. Are the critical stakeholders being engaged? The answer is no,” my source said, adding ruefully that “we are not in a very good position as an industry.”

I will attempt a little explanation. People expected that the minister would pay more attention to the digital economy, new tech businesses and tech upstarts where he has earned a name. He seems not to have disappointed their expectations at all. 

Somebody had asked me what would happen if the telecommunications sector should unplug some of these young tech companies. There would be a failure of immense proportions, the source volunteered an answer. That is not likely to happen soon. The source was only trying to explain why the minister should be interested in the fortunes of the industry, and there are no strong signs to prove that he is presently. 

The telecommunications industry is in dire straits. Out of the big three,  two made significant losses last year and one of them even had to scale down CAPEX by as much as 30 per cent. It is no surprise that the quality of experience, as the NCC chooses to call it now instead of quality of service, is painfully poor. Glo is a private business and does not announce earnings while 9MOBILE remains in the woods.

Unfortunately, the regulator, Nigerian Communications Commission, NCC, is also troubled and its immediate attention may be tailored towards its own survival. Although it is often said that government is a continuum, this writer gathered that the previous administration caused so much distortion and chaos within the regulatory system that steering the agency to a safe zone has become a daunting task. This comes with pains which the agency is feeling and the industry as well.

A source within the Commission said on Monday that the regulator is aware of the challenges confronting the industry at the moment and was working with key stakeholders to achieve industry sustainability and elevated quality of experience. 

“Let quality improve and let Nigerians have something to be happy about,” the source explained. 

Confronted with the grind of survival, the minister’s Bill may be a distraction, although the NCC will not have the stomach to say so. This writer is old enough to inform here that Dr Bosun has not earned the trust of the telecommunications industry and there is a small group at the regulatory agency praying for affliction not to return a second time after a painful and destabilising experience under the previous administration. I am of the strong opinion that there is a good way ahead to make amends. 

The Nigeria Employers’ Consultative Association, NECA, Manufacturers Association of Nigeria, MAN, and the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, have blamed hastily implemented government policy shifts without corresponding plans to mitigate the negative effects of the inception of the present government for the socio-economic crises confronting the country currently.

The trio spoke separately on the issue yesterday, with NECA saying major policy shifts undertaken by the government in 2023 and the adverse impacts they had across various sectors, are having terrible effects on businesses and the national economy.

President and Chairman of Council, NECA, Mr Taiwo Adeniyi, at the 67th Annual General Meeting, AGM, of the Association yesterday in Lagos, lamented that the combination of fuel subsidy removal, and exchange rate liberalization have significantly created market distortions and increased the cost of doing business, leading to a contraction in business activities since mid-2023.

He said: “It is no longer a secret that private businesses in the economy are beset with innumerable challenges, pushing many to the realm of mere subsistence.

‘’A good number of these private businesses continue to exist due to sheer determination and doggedness of the owners and investors, who are committed to supporting the economy.

‘’We commend the Federal Government for its various policies aimed at improving the operating environment and for establishing the Presidential Committee on Fiscal Policy and Tax Reforms.
“As we await the committee’s report, we believe the recommendations will be business-centric and given quick implementation attention by government.”

Our concerns

Notwithstanding the ongoing support by the government, Adeniyi listed six key concerns of businesses including the high cost of doing business due to depreciation in the value of the naira, increased Customs forex rate for clearing of cargoes, business-antagonistic regulations, proliferation of provocative taxes/levies and oversight functions of the National Assembly.

He said: “Private businesses are struggling with high production costs due to increased import bills for foreign inputs and raw materials. Before the liberalization of the forex regime, N460 was exchanged for US$ in the official market and about N750/US$ in the parallel market.

“After the policy, the exchange rate soared to N1600/US$, significantly raising import costs for the private sector. To address these challenges, we urge the Federal Government to review the current forex liberalization policy and adopt a more guided forex management procedure that supports domestic production.

“The upward review of Customs rate for cargo clearance to N1,413/US$ from N952/US$ in February 2024 has severely impacted businesses. These increases depleted the working capital of businesses, increased cost of production and drove up commodity prices, while also reducing household purchasing power.

‘’It has also contributed ominously to the general contraction of private businesses in the economy. Therefore, we urge the government to embark more on policies that are not only pro-business but also drive production and ensure job creation.

“In recent times, we have witnessed a proliferation of unfriendly and unjustifiable regulations aimed at organized businesses. It is our firm believe that regulations are meant to promote businesses and not to stifle them.

“Some of the recent regulations have become a source of shock and distraction to organized businesses, even though some of them were eventually suspended. For instance, the recent ban on alcoholic beverages in small packs by the National Agency for Food and Drug Administration and Control, NAFDAC, caused significant anxiety in the sector before being suspended after lengthy engagement with the government.

‘’We, therefore, urge the government to always conduct exhaustive consultation with private sector stakeholders on policy issues and act in the overall interest of the country within the prevailing circumstances.

“In recent times, we have observed several new taxes being imposed on private businesses by the Federal Government agencies. While we have witnessed the introduction of new taxes and levies, we commend government’s bold initiative of inaugurating the Taiwo Oyedele led Presidential Committee on Fiscal and Tax Reforms.

‘’It is hoped that the recommendations of the presidential committee will usher in a new dawn in tax administration in Nigeria.

“For over 10 years, we have witnessed the incessant invitation of organized businesses by different committees of the National Assembly on issues within the purview of the executive arm of government.

‘’Constitutionally, the National Assembly’s oversight function does not extend to private businesses. This responsibility lies with the ministries, departments, and agencies, MDAs, of the government.

‘’These invitations have caused significant distress to businesses, consuming time and resources. Although NECA has ongoing litigation on the dimension of the exercise of the oversight function with the Supreme Court, we urge the committees of the National Assembly to exercise their oversight responsibilities within the confines of the constitution.”

MAN blames forex, power, inflation

Reacting, the Manufacturers Association of Nigeria, MAN, also identified foreign exchange (FX) volatility, inadequate power supply and high inflation as some of the topmost challenges they encountered in their operations in the first quarter of 2024 (Q1’24).

This, according to it, led to a further surge in production and distribution costs by 20.7 per cent within the period.

MAN based its position on the response of chief executive officers in the manufacturing sector on a survey it carried out.

The Manufacturers CEO Confidence Index, MCCI, Q1’24 survey report stated: “The list of manufacturers’ challenges include unstable and high exchange rate/scarcity of FX; inadequate power supply/frequent power outages; high inflation/high operating cost (of raw materials, labour, equipment and maintenance); high cost of energy (petrol, diesel, gas); high and multiple taxes, charges and levies, among others.”

Commenting, the Director General of MAN, Segun Ajayi-Kadir, said: “The subdued performance of the sector is attributed to some ongoing harsh economic reforms that have compounded the long-standing challenges confronting the sector.

‘’This is confirmed by the finding of this report which reveals that forex scarcity, inadequate power supply, high inflation, rising energy cost, multiple taxation, policy inconsistency, exorbitant interest rate, poor infrastructure and high logistics costs are the top ten challenges depressing productivity in the sector.

“MAN expects government to frontally address insecurity, improve electricity supply, promote fiscal sustainability, and ensure policy consistency.’’

NACCIMA seeks improved public finance management

Similarly, the Director General, Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, Sola Obadimu, said: “The cost of doing business continues to rise almost on a daily basis.

‘’That’s neither healthy for business operations nor planning. Due to rising interest rates, MSMEs may not have the financial capacity to borrow. Large businesses may also prefer to downsize rather than borrow at current rates.

“With decreasing production due to high cost of funds, unemployment may worsen with the possibility of an increase in crime rates. Unfortunately, in the midst of all these, there seems to be a deliberate effort to aggressively pursue tax drive policies.

“Certainly, there is a need for an improvement in public finance management to ameliorate the harsh economic environment.”

NLC threatens to shut Nigeria

Meanwhile, in his goodwill message at the NECA AGM, President of Nigeria Labour Congress, NLC, Joe Ajaero, solicited the support of NECA for a better wage for workers, saying it was not about figure but the value of money.

Ajaero said: “Fair wages are not just a matter of social justice; they are also instrumental in boosting worker’s productivity and, consequently, the bottom line for employers. Enhanced purchasing power among workers will lead to increased consumption, thereby addressing the concerns of rising inventories in warehouses.

‘’We have advocated from the beginning of our engagement on the national minimum wage fixing exercise for the need to put more money in the hands of workers. We made this case on the understanding that it will help our businesses and rev up the economy.

‘’We had strongly believed that your organization would have been one with us and would have seen that we are actually making a great case for the survival of your businesses. We do not have any interest in crippling our businesses because you cannot cut your nose to spite your face.

‘’It is on this premise that we urge members of NECA to join us in the quest for a national minimum wage that will eliminate deep poverty from the lives of workers; wages that will not increase the number of the working poor and amount to a starvation wage for Nigerian workers is what we should all push for.

‘’The only way to break the present consumer resistance is to increase the wages of workers and that speaks to the policy of government that seeks to reflate the economy. It is not by giving handouts or reducing Nigerians to beggars who must queue at the various charity parks before they can eat.

‘’We must join hands to stop this collective slide into the pit. We must save our businesses by saving workers. N250,000 as national minimum wage is already a steep consideration by Nigerian workers.

As we are speaking now, the House of Representatives and the Senate are meeting to make sure they decentralize wage.

‘’We all know that wage in International Labour Organisation, ILO, is a national law and Nigeria will not be an exception. We will also demand that the wages of political officeholders and others are brought under minimum wage.

‘’You cannot be in the Senate and you are under minimum wage and not legislate for a better wage We should know your wage, we should know what you are earning. If you are a governor, you have security vote that is unaccounted for. If you have excess funds, you will not know that people are suffering.

“But if everybody is brought under the minimum wage, even if the governors want to create level 18, 19, or 20 for them, they all should come under the wage system. That is the only way it is going to work.

“If it is possible, both the House of Representatives and the Senate should be on part-time basis.
‘’Let it be based on professional callings. If you are a lawyer, a doctor, you have a business or profession of your own. If they meet three times a week, then the remaining days in the week, you go on with your businesses because the money being spent at the National Assembly is unimaginable. ‘’Unless we address this, the country will continue to go down and the gap between the rich and poor will continue to widen.

Later, in a chat with journalists after his remarks, Ajaero warned that should the governors and members of the National Assembly succeed in deregulating the minimum wage, Organised labour would shut the country for one month.

He insisted that by the International Labour Organization, ILO, Convention 131 ratified by Nigeria, minimum wage is a national issue, warning that organised labour would not accept a situation where governors, working with the members of the National Assembly, imposed slave wage and poverty on workers and Nigerians.

“As we are here, a joint committee of the Senate, the House of Representatives, and the Judiciary are meeting. They have decided to remove section 34 from the Exclusive legislative list to the concurrent list so that state governors can determine what to pay you and so that there will be no minimum wage again.

‘’You cannot decide what you should earn. The very moment the House of Representatives and the Senate come up with such a law that will not benefit Nigerian workers, they will be their drivers and gatemen, and there will be no movement for one month.

‘’We cannot accept any situation where the governors and the National Assembly members will foist a slave wage on workers and force poverty on the citizens. Organised ‘labour will not accept it,’’ Ajaero said.

[Vanguard]

Building collapse has been on the rise in Nigeria over the years, leading to injury, loss of life, and property damage. The National Chairman of the Nigerian Institute of Civil Engineers (NICE), during the institute's workshop titled Stemming the Tide of Building Collapse Menace in Nigeria” held in May 2024 in Abuja, said Nigeria recorded 41 building collapses in 17 months. More disturbing is that in only July 2024, three building collapses have been reported—in Mushin, Lagos; Kubwa, Abuja; and a school in Jos, Plateau—where 22 people were said to have been killed. Immediate action must be taken to stem the tide.

It is common practice to see housing construction being undertaken by non-qualified professionals. In a bid to save money, many people build their houses without using the necessary professionals. Additionally, some developers, in their quest to maximise profit, employ only some of the services of the required professionals; relying largely on artisans. The architect, civil engineer, quantity surveyor, project manager, etc, all have crucial roles in building construction. Any compromise in their roles could lead to poor construction design, faulty construction, poor quality control, and ultimately building collapse. For example, constructing a house without properly considering the soil texture can lead to fatal results in the future.

Another significant factor that leads to building collapse is the compromise in the quality and quantity of materials used. This may be done by the contractor in charge of the construction to maximize profit, or even by the site engineer or workers who may exchange quality materials procured with substandard ones or sell some of the materials procured for the construction for personal gain. Hence, there is a need for effective monitoring.

To win a bid, some contractors submit very low quotations, which they know cannot properly support the construction of the buildings they are bidding for. The practice of choosing the lowest bidder for building contracts by default should not be encouraged. The lowest bidder sometimes may be the least experienced or one who is out to compromise standards.

The age of a building also contributes to its collapse. Just like anything in the world, buildings do expire if they are not reinforced through extensive rehabilitation, which is beyond regular renovation. This is often an expensive task, especially for high-rise buildings, and hence is sometimes overlooked.

Government (federal, state, and local, as applicable) should begin to undertake integrity tests on any building that is more than one storey high, especially those in public use. As a matter of policy, such checks should be periodic. Any building found defective, where remedial work cannot salvage it, should be pulled down. Subsequently, any building more than one storey high should be certified habitable by the relevant government agency before being put into use. Anyone engaged in substandard building practices should be sanctioned. All building codes should be enforced.

Professional bodies like the Council for the Regulation of Engineering in Nigeria (COREN) Nigerian Institute of Civil Engineers (NICE), and the Real Estate Developers Association of Nigeria (REDAN) should sanction members who cut corners and compromise standards. They should also monitor the activities of their members from time to time; this will serve as a deterrent to unwholesome practices. There is also a need to create public awareness about the importance of engaging registered professionals in building.

Proper supervision of construction projects by sponsors and project site managers is crucial to ensure adherence to specifications and prevent the occurrence of sharp practices. It is also recommended that professional project managers be engaged to ensure the successful completion of projects.

The Standard Organisation of Nigeria should ensure that substandard building materials are neither domestically produced nor imported for use. They should also conduct random, unannounced inspections of building material vendors to check for substandard items that may have entered the market.

Nigeria needs to take deliberate actions to stop the issue of building collapse. People should be encouraged to engage registered professionals in their building construction. Professional bodies have a role to play in checking the conduct of their members and sanctioning those who err. By fostering a culture of adherence to standards and professional integrity, Nigeria can mitigate the risk of building collapses and ensure the safety of its citizens.

Kenechukwu Aguolu 

Abuja, Nigeria

The Osun State Government has issued a public alert on the security breach of Governor Ademola Adeleke‘s official telephone number.

The compromised number, +234 803 365 7555, is reported to have been hacked, leading to potential fraudulent communications being sent from it.

In a statement released by the Governor’s spokesperson, Mallam Olawale Rasheed, the public has been strongly advised to disregard any calls or messages received from the hacked number.

“Members of the public should ignore any such communications as they are not authorized by the Governor,” Rasheed emphasized.

The state government is actively taking measures to address the breach and restore security to the Governor’s communication channels.

An investigation into the incident is underway, and efforts are ongoing to prevent future occurrences.

Residents and officials have been urged to report any suspicious activities or interactions related to the compromised number.

The government promises to keep the public updated as they work to resolve the situation and strengthen security measures around the Governor’s telecommunications.

Naija News understands that this is not the first time the phone number of a state Governor will be hacked as the Cross Rivers State Governor, Bassey Otu, on the 11th of February, 2023, saw his phone numbers hacked by criminals.

[Naijanews]

The Federal Government has  announced the release of  results of the 2024 National Common Entrance Examination (NCEE) into Unity Colleges and Federal Government Academy (FGA), Suleja.

NCEE is for admission into Junior Secondary School (JSS 1) of Federal Unity Colleges and this year’s edition was written on Saturday, June 1, 2024 in Nigeria, Benin Republic and Togo.

Minister of State for Education, Dr Tanko Sununu,  while announcing the results on Tuesday in Abuja said, 71,291 candidates registered for the 2024 NCEE and 66,931 candidates sat for the examination, while 4,360 were absent.

He said: “Out of the maximum obtainable score of 210, one candidate obtained the highest score of 203, while 13 candidates obtained the lowest score of 1”

Sununu noted that this year, 52 candidates (2 candidates from Lagos State and 50 candidates from Rivers State) were involved in examination malpractice.

[DailyTrust]

The Supreme Court judgement on July 11, granting financial autonomy to the 774 local councils and recognising them as the third tier of Nigeria’s governance architecture, was truly historic. It was perhaps the most remarkable judgement ever delivered by the apex court in recent times, as it used its power to interpret the law to give a different meaning to Section 162 of the Constitution.

Since 1999, governors have used this section to withhold and tamper with the funds federally allocated to the councils, using a joint account that has proven to be a honeypot of abuse.

Last Thursday, the Supreme Court described the payment of the allocations to the account as gross misconduct and scolded the governors for dissolving democratically elected councils and setting up caretaker committees.

The court ruled that caretaker committees are illegal and that councils run by them should not receive the federal allocation.

Henceforth, the court ruled that the allocations should go directly to the accounts of the 774 local councils.

Justice Emmanuel Agim, who read the lead judgment, said Nigeria runs a three-tier governance structure, where no one tier is subject to the whims and caprices of the other. He criticised the governors and the state assemblies for almost allowing the councils to go into extinction with their treatment of them.

The judgment was generally well received by Nigerians. According to reports, the verdict ignited jubilation by workers in some local councils as they sang the praises of the Tinubu administration.

The Kano State Government on Tuesday filed fresh charge against former governor of the state, Abdullahi Ganduje.

In the charge sheet with case No. K/143c/24, the state government accused Ganduje and erstwhile Commissioner for Justice, Musa Lawan, of Criminal Conspiracy, and misappropriation contrary to Section 308 and punishable under Section 309 of the Penal Code (as amended) CAP 105, Vol. 2, the Laws of Kano State of Nigeria.

The offence, the state government said, is contrary punishable under Section 97 and Section 315.

The state government accused Ganduje and Lawan of abuse of office.

In the charge sheet, the state government said it intends to present four witnesses.

No date has been fixed for the arraignment.

[DailyPost]

Another member of the House of Representatives, Hon. Ekene Abubakar Adams, has reportedly died. 

Adams, who represented Chikun/Kajuru Federal Constituency in Kaduna State as a first-time member, reportedly died after a protracted illness. 

Until he died on Tuesday morning, he was the Chairman of the House Committee on Sports.

An ex-footballer with Remo Stars, he was once a General Manager of Kada City Football Club of Kaduna and elected on the platform of the Labour Party during the last general election. 

He is the second member of the House to die within the last seven days after Hon. Akinremi Olaide representing Ibadan North and the fourth member to die since the inauguration of the House in June 2023.

As at the time of filing this report, the House spokesman, Hon. Akintunde Rotimi and the Chairman of the Kaduna caucus, Hon. Amos Gwamna Magaji could not be reached for confirmation. 

Nigeria’s inflation narratives took a controversial twist yesterday as the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), gives its own figure contradicting that of the National Bureau of Statistics, NBS, by a wide margin.

The NBS had released its Consumer Price Index, CPI, for June 2024 reporting that headline inflation rate increased by 0.24 percentage points to 34.19 per cent in June from 33.95 percent in May.
But when contacted by Vanguard for his comment, the President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Kelvin Oye, simply said, “Inflation is over 90 percent”, without giving further details.

Giving its own details NBS, also said that food inflation grew to 40.87 percent in June from 40.66 percent in May 2024 due to increase in the prices of millet whole grain, garri, guinea corn, etc (bread and cereals class), yam, wateryam, cocoyam, potatoes, yam & other tubers class, among other food items.

Meanwhile, financial analysts said the NBS’ figures outstripped both the individual and consensus forecasts.

NBS stated: “In June 2024, the headline inflation rate increased to 34.19 percent relative to the May 2024 headline inflation rate which was 33.95 percent.

“Looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24 percentage points when compared to the May 2024 headline inflation rate.

“On a year-on-year basis, the headline inflation rate was 11.4 percentage points higher compared to the rate recorded in June 2023, which was 22.79 percent.

“This shows that the headline inflation rate (year-on-year basis) increased in the month of June 2024 when compared to the same month in the preceding year (i.e. June 2023).

“The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items: Millet Whole grain, Garri, Guinea corn, etc (Bread and Cereals Class), Yam, Water Yam, Coco Yam (Potatoes, Yam & Other Tubers Class), Groundnut Oil, Palm Oil, etc (Oil & Fats Class) and Catfish Dried, Dried Fish-Sadine, Mudfish (Fish Class), etc.

According to NBS, in June food inflation on a year-on-year basis was highest in Edo (47.34 percent), Kogi (46.37 percent), Cross River (45.28 percent), while Nasarawa (34.31 percent), Bauchi (34.78 percent) and Adamawa (35.96 percent), recorded the slowest rise in food inflation on year-on-year basis.

Monetary policy is failing- Adonri

Reacting, David Adonri, Analyst and Executive Vice Chairman at Highcap Securities Limited, said : “Despite all the measures taken by CBN, inflation rate continues to rise. Continued application of monetary policy to tackle this kind of stubborn inflation is failing because what is required is not demand management but supply side fiscal policy.

“Should the monetary authority react by hiking interest rate again, it will further increase yield on debt and cause financial assets to migrate more to debt. This may harm ongoing recapitalization exercise of banks. Rising inflation is not good news for equities.”

Commenting on the further rise in inflation, analysts at Comercio Partners said: “Looking ahead, food inflation, the main driver, is expected to taper off because of the short-term federal government’s recent interventions, with a N2 trillion packages announced by Abubakar Kyari, the minister for Agriculture and Food Security, to curb rising prices and speed up stabilization and growth.

“Also, a 150-day duty-free import window has been approved, allowing tariff-free importation of maize, husked brown rice, wheat, and cowpeas through land and sea borders. This measure, with imported commodities subject to a Recommended Retail Price (RRP), aims to provide immediate relief.

“However, tackling food inflation long-term means addressing underlying issues like transportation and logistics challenges, harvest losses, and regional insecurity. Moreover, discussions around raising the minimum wage could further fuel inflationary pressures.

“On the monetary front, recent interest rate hikes have helped combat inflation, but another hike seems unlikely because of tight macroeconomic environment.

“However, a focus should shift towards addressing the root causes of inflation without stifling economic growth.”

Also commenting, analysts at CardinalStone Finance stated: “The June CPI data indicated that inflation leapt by 24 bases points (bps) to 34.2% YoY, missing analysts’ average consensus of 33.94% and our projection of 33.90%. “Our tamer inflation expectation, based on the stability in the foreign exchange (FX) market was overshadowed by a more pronounced food inflation.

“We perceive that the food basket is still grappling with an uptick in input costs and persisting insecurities in the review period, thus propping up prices.

“The outlook for July’s inflation is likely to be mixed on the back of multiple factors. On upside risk, we expect the recent PMS scarcity and another electricity tariff hike for ‘Band A’ users to increase price pressure.

“Furthermore, FX volatility will likely be prevalent in July, stemming from increased FX demand for vacation and payment of foreign tuition fees.

“While these highlighted factors are expected to increase inflationary risk, we anticipate the base effect to sufficiently moderate YoY inflation.

“Moreover, the government’s decision to suspend duties, tariffs, and taxes on the importation of certain commodities like Maize, husked brown rice, Wheat, and cowpeas for the next 150 days is expected to lead to lower food prices. “The government’s plan to import 250,000MT of Wheat and 250,000MT of Maize also bodes well for the food price outlook, providing a positive counterbalance to the inflationary risks. “Overall, we expect headline inflation to moderate by 50bps to 33.7%.
“In light of the above, we expect the monetary policy authority to maintain its hawkish stance and hike the policy rate by 50 to 100bps in its July meeting”.

In his own comment Clifford Egbomeade, Public Policy Analyst and Communication expert, said: “The rise in Nigeria’s inflation rate to 34.19% in June 2024 has several significant implications for the economy. First, it reduces the purchasing power of consumers, making goods and services more expensive and diminishing the standard of living, particularly for low and middle-income households. This increased cost of living can exacerbate economic hardship and potentially push more people into poverty.”

“High inflation also creates economic uncertainty, which can deter both local and foreign investment. Investors are likely to be cautious in such an environment, leading to reduced investment and slower economic growth. “Moreover, the Central Bank of Nigeria (CBN) may be compelled to further raise interest rates to control inflation, which increases borrowing costs for businesses and consumers, potentially further slowing down economic activities.

“To address rising inflation, the government and the CBN should consider a combination of monetary and fiscal measures. Tightening monetary policy can help curb excessive money supply, although this must be done carefully to avoid stifling economic growth. Implementing prudent fiscal policies, such as reducing fiscal deficits and improving tax collection, is also crucial. Investing in supply-side interventions, such as supporting local production and reducing import dependency, can help stabilize prices in the long run”.

[Vanguard]

The Federal Government has repatriated 190 stranded Nigerians from the United Arab Emirates (UAE).

This is contained in a statement signed by Mr Bashir Garga, the National Emergency Management Agency’s (NEMA) zonal director in the North Central, on Tuesday in Abuja.

He said that the returnees were received at the Nnamdi Azikiwe International Airport, Abuja, on Tuesday at 5:57 a.m.

He said the returnees were received by a combined team of government officials led by NEMA.

He said that the returnees were profiled and documented by the relevant agencies and sensitised to behave with decorum and responsibility on their return to Nigeria.

“The Federal Government urges all Nigerians, wherever they may be, to act as exemplary ambassadors of their country, by upholding the fundamental values of patriotism, rule of law, decency, and integrity,” the statement says.

(NAN)