The 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, on Tuesday, said President Bola Tinubu’s policies did not create prosperity but have rather pauperised the poor and bankrupted the rich.

He, however, highlighted six steps for President Tinubu to take to make a success of the office he occupies.

The president, who assumed office on May 29, 2023, with a Renewed Hope agenda for Nigeria, marks his first year in office Wednesday (today).

In a statement on Tuesday, Atiku reviewed the administration over the past year, criticising the All Progressives Congress-led government for not presenting any plans for economic remodelling, but instead implementing a mix of policies to address it.

Atiku, it will be recalled, at various times had criticised the policies of the administration and, in response, was blamed by the presidency for finding faults without proffering relatable solutions.

On Tuesday, however, the former vice president asked the president to pause and reflect; undertake a comprehensive review of the 2024 budget within the new reform framework; undertake a comprehensive review of the Social Investment Programme to mitigate some of the impact of these policies on the most vulnerable households and refrain from any attempt to further pauperise the poor by introducing new taxes or increasing tax rates.

He also asked President Tinubu to provide clarity on the fuel subsidy regime, including the fiscal commitments and benefits from the fuel subsidy reform and the impact on the Federation Accounts and finally to tackle security headlong.

The former vice president stated that, predictably, 12 months later, Tinubu’s promises of economic growth and alleviating misery remained unfulfilled.

“Tinubu laid out no plans for the remodelling of the economy but soon embarked on a cocktail of policies to achieve it.

“In May 2023, he eliminated PMS subsidies, and a month later, the CBN implemented a new foreign exchange policy that unified the multiple official FX windows into a single official market.

“More policies followed in rapid succession: the tightening of monetary policy to reduce Naira liquidity, a hike in monetary policy rates, the introduction of cost-reflective electricity tariff, and a cybersecurity tax.

“Predictably, 12 months on, Tinubu’s pledge of growing the economy and ending misery remains unfulfilled. His actions or inactions have significantly worsened Nigeria’s macroeconomic stability.” He said.

He lamented that Nigeria remained a struggling economy and more fragile now than it was a year ago.

“Nigeria remains a struggling economy and is more fragile today than it was a year ago. Indeed, all the economic ills – joblessness, poverty, and misery – which defined the Buhari-led administration have only exacerbated.

“Africa’s leading economy has slipped to the fourth position, lagging behind Algeria, Egypt, and South Africa.

“Citizens’ hopes have been dashed and not renewed, contrary to the propaganda of the administration, as Nigeria’s economic woes have multiplied,” he added.

Atiku stated that he had previously voiced concerns about the risks of initiating reforms without proper sequencing, without clear implementation strategies, and without considering their potential and actual devastating consequences.

The PDP 2023 presidential candidate said implementing policies without proper planning and a clear destination was nothing other than trial-and-error economics.

“First, President Tinubu’s policies do not create prosperity. Instead, they pauperise the poor and bankrupt the rich. They spare no one. Nigerian citizens, the majority of whom are poor, are going through the worst cost-of-living crisis since the infamous structural adjustment programme of the 1980s.

“The annual inflation rate at 33.69 per cent is the highest in nearly three decades. Food prices are unbearably higher than what ordinary citizens can afford, as food inflation soared to 40.53 per cent in April, the highest in more than 15 years.

“Nigerian citizens have to pay 114 per cent more for a bag of rice, 107 per cent more for a bag of flour, and 150 per cent more in transport fares relative to May 2023.

“Today, in some locations, motorists are paying 305 per cent more for a litre of fuel. Yet, on a minimum wage of the equivalent of $23 per month, Nigerian workers are among the lowest wage earners in the world,” he stated.

He said the courage of the president to remove subsidy on PMS did not translate to the compassion to raise the minimum wage.

“Tinubu had the ‘courage’ to remove subsidy on PMS and impose additional taxes on his people but lacks the compassion to raise the minimum wage or implement a social investment programme that would reduce the levels of vulnerability, and deprivation of workers and their families,” he lamented.

Atiku asserted that President Tinubu’s policies had created a hostile environment for businesses of all sizes.

He added that the private sector was overwhelmed by the poor policies and burdened by his failure to address their negative consequences.

“The manufacturing sector, which holds the key to higher incomes, jobs, and economic growth, has been bogged down by rising input prices, higher energy and borrowing costs, and exchange rate complexities.

“For example, since 2023, the average price of diesel has doubled to N1,600 per litre. Electricity tariff has recently been increased by 250 per cent from N68/Kwh to N206/Kwh.

“As reported by the Guardian (13 May 2024), in Q1 of 2024, energy prices were up by 70 per cent, costing manufacturers N290 billion.

“Since May 2023, corporate Nigeria has lost more than a dozen enterprises to other countries. Unilever, GlaxoSmithKline (GSK), Procter & Gamble (P&G), Sanofi-Aventi Nigeria, Bolt Food, and Equinor, among others, had exited Nigeria, citing reasons including foreign exchange complexities, security concerns, and high operational costs.

“According to the Nigeria Employers’ Consultative Association (NECA), nearly 20,000 jobs may have been lost due to the departure of 15 multinational companies from Nigeria,” Atiku said.

The former vice president warned that an economy with high unemployment rates and a declining manufacturing sector was not viable.

He further noted that President Tinubu’s foreign exchange policies had failed to positively affect Nigeria’s foreign trade balance, contrary to expectations.

“In particular, the free float and the resulting devaluation of the Naira has not resulted in an appreciable improvement in Nigeria’s trade balance. Devaluation has not enhanced the competitiveness of local producers and has had no positive impact on exports of goods, primary or manufactured.

“President Tinubu’s policies have failed to attract foreign investments into the country despite all the posturing and media hype by the president’s men. Exchange rate unification and free float of the Naira have not led to higher capital inflows (whether Foreign Direct Investment or Foreign Portfolio Investments), again, contrary to policy expectations,” the former vice president said.

Atiku then expressed dismay that despite employing various monetary policy measures, inflationary pressures and exchange rate fluctuations persisted.

He attributed the Naira’s sharp decline against the dollar, resulting in its status as the worst-performing currency globally, to Tinubu’s misguided policies.

He noted that President Tinubu’s policies revealed an overestimation of their effectiveness and a lack of readiness for potential consequences.

Atiku pointed out that Tinubu and his team seemed unsure about the current state and next steps of the reform process, as he urged the government to grasp the necessary reforms and their sequence, stressing the need for a framework outlining reform objectives and strategies.

Atiku, therefore, advocated for a comprehensive review of the 2024 budget within the new reform framework.

“The 2024 FGN Budget, the exact size of which remains a mystery, is not designed to address the structural defects of the Nigerian economy or the cost-of-living crisis. It will neither create prosperity nor promote opportunities for our young people to lead a productive life.”

He stated, “The review must prioritise fiscal measures to deal with an unprecedented rise in commodity prices. Higher commodity prices have created more misery for the poor in our towns and villages and have pushed millions of people below the poverty line. One such measure for immediate implementation will be to ease the existing restrictions on selected food imports.

“Third, undertake a comprehensive review of the Social Investment Programme (SIP) to mitigate some of the impact of these policies on the most vulnerable households. The SIP must go beyond Conditional Cash Transfers to include programmes that prioritise support to MSEs across all the economic sectors, as they offer the greatest opportunities for achieving inclusive growth.

“In addition, a holistic programme to support medium and large-scale enterprises to navigate the stormy seas in the aftermath of the withdrawal of subsidy on PMS is also needed,” he said.

He warned against any plan to introduce additional taxes or increase tax rates by the administration.

“We are aware of the behind-the-scenes attempts to increase VAT rate from 7.5 per cent to 10 per cent, re-introduce excise on telecommunication, and increase excise rates on a range of goods.

“It needs to be restated that we cannot tax our way out of this situation. Instead, Tinubu must see the need for expenditure rationalisation and restraint – by having the budget more in sync with Nigeria’s fiscal reality, by improving efficiency in revenue utilisation, improving procurement processes and trimming the size of government – and, therefore, reducing the cost of governance.”

Atiku, who urged President Tinubu to promptly address insecurity, highlighted that the widespread insecurity significantly hampered agricultural production and its contribution to the economy, particularly in the northern region of the country.

“The state of pervasive insecurity continues to adversely impact agricultural production and the value it brings to the economy, especially in the northern parts of the country.

“Insecurity resulting from terrorism, banditry, kidnapping, and cattle rustling has compelled many crop farmers and pastoralists to abandon their lands and relocate to the neighbouring countries of Niger, Chad, and Cameroun.

“This has drastically caused a reduction in the production of food and skyrocketed prices of foodstuffs. Food scarcity in Nigeria is so dire that a report by Cadre Harmonize warns that between June and August this year, about 31.5 million Nigerians may face severe food shortages and scarcity,” he said.

The opposition Peoples Democratic Party (PDP) has scored President Bola Tinubu’s administration low in its first year in office.

The party described the All Progressives Congress (APC) government’s first year in office as the most challenging in Nigeria’s history since the Civil War.

In a statement on Tuesday by its National Publicity Secretary, Debo Ologunagba, the PDP said it is apparent that inflicting pain and misery on Nigerians remains the policy thrust of successive APC administrations.

It said the adverse effects of poorly conceived and executed policies, without any supportive measures to alleviate the resulting have led to increased costs and associated hardships for the masses, and have plunged many into extreme poverty.

The opposition party urged President Tinubu to utilize the occasion of his one year in office to carefully assess the state of the nation during his tenure, critically evaluate his policies, and present a coherent economic plan aimed at improving the welfare of the Nigerian populace.

The statement read in part “The PDP insists that the current rising insecurity, excruciating poverty, economic hardship and general despondency in the country necessitating the fleeing of thousands of Nigerians especially the youths from our nation further confirm that there is no hope in sight with the APC on the saddle.

“It is apparent that inflicting pain and misery on Nigerians remains the policy thrust of successive APC administrations which became heightened by the not well thought-out twin anti-people policies of removal of fuel subsidy and the floating of the Naira without due consideration for the citizens’ welfare and security.

“As if these were not enough, the APC administration continues in its anti-people policies in the arbitrary hike in electricity tariff and imposition of multiple taxes on the already impoverished Nigerians with no corresponding tangible development directed towards the welfare of the people.

“The consequences of these ill-thought and ill-implemented policies without any cushioning measures to mitigate the resultant rising cost and associated hardship on the masses have driven many into early death and extreme poverty.”

The PDP stated that a majority of Nigerians have become disillusioned with President Tinubu’s administration.

It also highlighted the inadequate attention given to security by the APC, as evidenced by the widespread killings, kidnappings, and attacks by bandits and terrorists that continue to plague communities across the nation.

It stated, “The APC’s continuing use of poverty as a weapon of mass destruction is responsible for the widespread despondency in the country where people are only preoccupied with survival rather than show interest in the government policies and activities which largely alienate them.

“It is shocking that while the Federal Government announced the removal of fuel subsidy forcing Nigerians to pay more for fuel, trillions of naira is still being reportedly paid as fuel subsidy allegedly into private bank accounts associated with corrupt APC leaders.

“Sadly, the APC in its insensitivity and disregard for the people has not bordered to render an account to Nigerians concerning the expected savings accruable to the Federation Account as a result of the announced fuel subsidy removal.

“The consequence of these is the massive loss of jobs and businesses with attendant socio-economic dislocation and uncertainty. This is compounded by the over 37% unemployment rate, inflation rate of over 33%, and over 200% devaluation of the Naira in the last one year.

“More distressing is that on the security front, the APC has merely paid lip service to the security of lives and property of Nigerians with massive killings, kidnapping, and marauding of communities by bandits and terrorists raging across the country.

“Since May 29, 2023, over 5000 Nigerians have been reportedly killed with many more abducted in various parts of our country with no concrete measure by the APC administration to arrest this ugly trend.

“From reports on governance at the sub-national levels across the country, it is clear that the only hope for our nation is the performance of governors elected on the platform of the PDP who continue to deliver life-enhancing citizen empowerment, human capital, and infrastructural development projects with a positive effect on the wellbeing of the people.

“Our Party therefore urges President Bola Ahmed Tinubu to use the occasion of his one year in office to have a deep reflection on the state of the nation under his watch; take a critical look at his policies and present a clear economic roadmap which will enhance the welfare of the Nigerian people. He should also address the allegation of corruption and profligacy in the administration.”

The Federal Government on Tuesday said it had reinstated the suspended social investment programme, disclosing the scheme would provide direct payments to 75 million Nigerians in 50 million households to reduce the suffering of citizens, especially vulnerable groups.

It stated that the cash transfer programme was overhauled to tackle fraud.

The Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, announced this at the ministerial sectoral briefing to mark the first year in office of the President Bola Tinubu administration in Abuja.

On January 12,  Tinubu suspended all the programmes administered by the National Social Investment Programme Agency for six weeks, as part of a probe of alleged malfeasance in the management of the agency and the scheme.

The president also suspended Betta Edu as the minister of Humanitarian Affairs and Poverty Alleviation on January 8. Edu’s ministry supervises the operations of the NSIPA.

The intervention programmes affected include the N-Power, the conditional cash transfer scheme, the government enterprise and empowerment programme, and the home-grown school feeding initiative.

On March 13, the House of Representatives asked the federal government to resume the implementation of the suspended social investment initiatives. 

To revamp the programme, Tinubu approved the establishment of a Special Presidential Panel, led by Edun to carry out an intensive review and audit of the existing financial frameworks and policy guidelines of the social investment programmes.

Giving an update on the steps taken by the committee at the briefing, the finance minister stated that the government had decided to restart the programme to provide succour for poor Nigerians.

Edun said, “I am duty-bound to give you an overview of the strategy, policies, and implementation of Mr President’s reform programme. Immediately upon assuming office, Mr President launched macroeconomic reforms to restore stability to the Nigerian economy, including subsidy reforms and foreign exchange market reforms. These reforms caused a spike in costs for individuals and businesses, but Mr President is committed to counterbalancing the negative effects with interventions across the social spectrum.

“The government has restarted the social investment program, providing direct payments to 75 million Nigerians in 50 million households. Access to credit has been improved, with N1bn allocated to consumer credit and grants of 50,000 Naira being given to 1 million nano industries.”

Food inflation

The National Bureau of Statistics in its April CPI report, said Nigeria’s 33.69 per cent inflation rate was largely driven by food inflation which stood at 40.53 per cent in April, 2024.

Nigerians have continued to lament the steady rise in the prices of goods and services partially fuelled by the removal of petrol subsidies.

But, the minister said with 30 per cent of the world affected by issues of food security, agriculture would play a critical role in addressing global food insecurity.

He stated, “Food security is a worldwide issue, affecting 30 per cent of the world’s active population, and Nigeria is no exception. As I mentioned earlier, agriculture is critical, and success in this area is crucial. Efforts are being redoubled, with N200bn provided by the Ministry of Finance towards an intervention program.

“Just today (Tuesday), we met with the social investment prudential panel and development partners to discuss the President’s emergency plan for food security. We talked about advancing this issue and providing food, nutrition, and security, and this area will receive more attention in the coming weeks. The economy is growing at 2.98 per cent in the first quarter of this year, higher than the population growth rate and last year’s growth rate. Agriculture has the potential to help move the economy forward and reduce inflation.”

Speaking further, the minister stated that the federal government had initiated direct payments to contractors, suppliers, and vendors engaged by the government, evidently aiming to curb corruption in business dealings.

He explained that this measure would guarantee the prudent and accountable expenditure of the nation’s wealth.

Edun also revealed that the government was set to roll out an Economic Emergency Plan that would be implemented in the next six months. The plan, he explained, would help stabilise the economy and set the country on the path of growth.

He explained, “A system of payment has been implemented to ensure that Nigeria’s money is spent wisely and accountably. The government has played a role in helping states in attracting cheap funding and processing projects at the community level. Nigeria’s international credit rating has improved, with Moody’s and Fitch increasing and improving Nigeria’s rates to positive.

“The government is committed to counterbalancing the negative effects of economic reforms with interventions across the social spectrum. Infrastructure is key to growing the economy, building employment, and creating multiplier effects throughout the economy. A fund has been set up to provide institutional long-term funds to support housing construction and low-interest mortgages for the average Nigerian and we are working to attract cheap funding for states and process projects at the community level.”

He added, “And as it was mentioned earlier, the pivot thing to CNG is a government policy not just for vehicles but for generators. They have to be either CNG-fueled or solar-based or electric vehicles.

“That is the new incentive structure. And it continues also in the oil and gas sector. There has just been a new set of incentives that are encouraging new investments. We expect $7bn worth of investment that has been sitting on the sideline to now come; similarly, in other sectors.

“A stable, growing economy attracts investment that increases productivity, grows the economy further, creates jobs and reduces poverty. That is the trajectory that Nigeria is now on.”

Speaking on economic reforms, the finance minister announced that Nigeria has sufficient resources to pay its debts, both domestically and internationally, without strain.

According to him, this is a significant improvement from the previous situation where the government struggled to pay its way through implementing technological change procedures.

The minister said the revenue of the Federal Republic “has been totally revamped, rejuvenated, and increased substantially” due to the implementation of macroeconomic reforms and the restart of the social investment program.

He said, “We met a situation where the government did not have enough money. The government was not able to pay its way through implementing technological change procedures, which does not just require the skill of the workforce but also the political will.

“However, we are now in a situation where the revenue of the Federal Republic of Nigeria has been revamped, related and increased substantially. What did mean is that the government can now pay its way the government is paid is debt service without resulting to Ways and Means, particularly into debt service, the obligations domestically are now being paid.”

This has put the government in a comfortable position to service its debts and meet its financial obligations.

Edun also highlighted the improvement in Nigeria’s international credit rating, with Moody’s and Fitch increasing and improving Nigeria’s rates to positive.

This, combined with the paying up of a $200m shareholding with the Islamic Development Bank, has built confidence and allowed Nigerians to take their rightful place at the table.

“The process that has been put in place is one that we are mandated not just by Mr President, but even the National Assembly passing the 2024 budget insisted that Nigeria’s money that was in the hands of parastatals agencies, or other enterprises needed to be brought in properly and that has been done which puts the government now in a comfortable situation as we would like to where we pay our way domestically internationally.

“There is a whole host of debt that we met. We owe Islamic Development Bank $200m in shareholding, this is not in terms of loans but in terms of shareholding, our subscriptions. These were things that did not allow the confidence to be built and did not allow Nigerians to have that pride of place when they sit at a table when they travel and they owe money. All these are things of the past now,” he said.

The minister emphasised the importance of infrastructure in growing the economy, building employment, and creating multiplier effects throughout the economy.

A fund has been set up to provide institutional long-term support to support housing construction and low-interest mortgages for the average Nigerian.

He added that the companies that exited Nigeria were not to be blamed on the current government.

He said, “Our government inherits the assets and liabilities of the previous administration. The 800 companies or so did not make up their minds overnight. They stayed until they could stay no more, he said.

“For the economy we have inherited, we have pointed out how seriously all obligations, both international and domestic, are being paid. This is being done because the revenue, which the company covers on behalf of Nigerian workers, is being diligently brought in. It is being monitored, collected, and accounted for. As I leave here, I am a member of the National Minimum Wage Committee and Tripartite Committee, and I chair the subcommittee on implementation documentation of the last minimum wage.

 “In assessing and analysing the implementation of the 2019 award, we came across people in the private sector, particularly nationals in the south, who asked, ‘Why are you not rescaling?’ Please go and look at the law; it is not a scale, it is a minimum, and it is not mandatory to be anything other than that minimum. We hope to quickly bring discussions to a conclusion on this matter. This is one of the items on our minds, as this is a minimum wage for both the private and public sectors, and it is the law of the land. We need to be guided by discussions, stations, and expectations.

“Mass transit vehicles are being produced, and I have even driven one of them, which will provide us with, for example, a bus that used to be fueled for 50,000 naira will now be fueled with 15,000 naira. That is the kind of change and improvement that is on the way.”

The Presidency on Tuesday ruled out the possibility of President Bola Tinubu delivering an address at the joint sitting of the National Assembly to commemorate 25 years of nation’s democratic rule scheduled for Wednesday in Abuja.

In a statement issued by presidential spokesperson, Ajuri Ngelale, the Presidency stated that office of the President was never involved in the planning of the event, hence no green light was given for the President to speak at the planned programme.

It, however, stressed that President Tinubu will continue to inaugurate projects across the country as part of his commitment to delivering good governance to the citizenry.

The Presidency in the three-paragraph release stated: “In furtherance of his commitment to delivering good governance, President Bola Tinubu has embarked on the inauguration of strategic projects across the country.

“More transformative projects will be inaugurated by President Tinubu’s administration for the benefit of all Nigerians.

“In view of public commentary concerning the President delivering a speech before a Joint Sitting of the National Assembly tomorrow, May 29, 2024, it is important to state that this information is false and unauthorized as the Office of the President was not involved in the planning of the event”.

The Tripartite committee on minimum wage has postponed its meeting “sine die”, sources familiar with the matter told our correspondent in Abuja on Tuesday.

According to Merriam-Webster dictionary, sine die means a situation, “without any future date being designated (as for resumption): indefinitely.”
Legal choices, a law website also describes sine die as a Latin word used when a law case has no fixed date for resumption.

The Federal Government on Tuesday added a sum of N3,000 to its initially proposed N57,000 minimum wage making it the sum of N60,000 proposed on Tuesday during the meeting of the tripartite committee on minimum wage in Abuja.

Organized Labour comprising of the Trade Union Congress and the Nigeria Labour Congress also went down by N3,000 from its last proposal of N497,000 during the last minimum wage meeting.

Speaking with our correspondent, one of the sources who is a leader of the NLC said, “The meeting ended in a stalemate and meetings have been adjourned sine die.

The government proposed N60,000 which was not accepted by Labour.”

A member of the Labour side who spoke to our correspondent before the meeting started noted that the organized Labour would only go lower if the government goes higher on its demands.

Speaking with our correspondent, one of the sources who is a leader of the NLC said, “The meeting ended in a stalemate and meetings have been adjourned sine die.

“The government proposed N60,000 which was not accepted by Labour.”

A member of the Labour side who spoke to our correspondent before the meeting started noted that the organized Labour would only go lower if the government goes higher on its demands.


“This is simply a case of if they go higher, we will go lower. They need to propose something reasonable for us to propose something lower too. There is no two-way about it. Also, we have a way of meeting ourselves as members of the Labour before each committee meeting. This will help us to take a uniform stand by the time we get to the meeting front. So as long as the government is ready to present something reasonable, we will meet them in the middle,” the Labour leader said.

Indications emerged yesterday that the Federal Government and organised labour are heading for a showdown over a new minimum wage as the 6th meeting of the Tripartite Committee on the new National Minimum Wage, NNMW, ended in another stalemate. 

Organised labour’s negotiating team for the second time in two weeks, however, walked out of the committee meeting after the Federal Government increased its offer to N60,000 from the N57,000 it offered on Wednesday, May 22.

Organised Labour, represented by the Nigeria Labour Congress, NLC, and its Trade Union Congress of Nigeria, TUC, counterpart, had on May 15, walked out of the tripartite committee meeting after the government offered N48,000 and Organised Private Sector, OPS, offered N54,000, against the N615,000 minimum wage demand by labour.

It will be recalled that at last week’s meeting, the government and the private sector offered N57,000, while Labour reduced its demand from N615, 000 to N497, 000.

However, at the resumed meeting yesterday, the government and the OPS added N3,000 to last week’s offers of N57,000, thereby raising their offers to N60, 000.

Labour immediately followed the footsteps of the government and OPS to reduce its demand by N3,000, bringing it down to N494, 000 before walking out.

Labour had given government up till May 31, to conclude negotiations to avoid industrial disharmony.
Confirming the development, President of NLC, Joe Ajaero, told Vanguard yesterday: “The government is not serious with the negotiation. They just added N3, 000 to their offer last week.

The painful aspect of it is that the government team is not giving explanation to its offer. We equally removed N3,000 from our demand and left.”

Pending ultimatum

On the next line of action, the NLC president said: “We have an ultimatum pending on the minimum wage and electricity tariff. We are waiting for the ultimatum, including the government. 

“There are still days remaining before the ultimatum expires. Well, it is part of negotiation. Nonetheless, like I said, the government team is not serious. On our part, we know what to do when the ultimatum expires.”

Giving more insight into what transpired at yesterday’s stalemated meeting, a source at the meeting said: “We walked out again. They (the Federal Government) added N3,000. We reduced by N3,000.
“We anticipated what they are doing, we anticipated that they will come up with another gimmick because we have been telling them, break down what you are giving as an award, break it down the way we broke our own down.

“Housing, food transportation, health, education and others but they have refused consistently. This is because if they break it down, are they going to now say food is N100?

“For you to put everything under N57,000 or N60,000 as it is now per month, you cannot put food per day at N200. If you put food per day at N200, that will be N6,000 multiply by four, that should be N24,000. What is left now is N36, 000.

“You cannot say transport is N50 because once they commit themselves to it, they are now telling Nigerian workers that what we are giving you for transport is N50 in a day, what we are giving you for housing is so, so and so. That might put them in a very tight corner. They cannot break it down.
“We are telling them that what they gave us in 2019 was N30,000. At that time, the value of N30,000 was $84.

“When we got to the meeting today (yesterday), they increased from N57,000 to N60,000, then the organised private sector aligned with them. We did not want them to adjourn because we are heading for strike from the first of next month (June).I do not think they can reconvene before that time. That is where we are.”

On the mood of government team when it was making the offer, the source said: “The government side is not even in a good mood. Members know that they are in a very difficult situation. At the last meeting, we told them they are not government and that they should not make it appear as if they are government.

“They are only representatives of government. Today (yesterday), when we were discussing with them, we said a loaf of bread is now N2,000. So, even if somebody is eating bread every day, how much would it cost in a month?”

The source said the government team, as usual, pushed the Minister of State for Labour, Nkeiruka Onyejeocha, to announce the N60,000 offer in the presence of the Minister of Finance and the Minister of Budget.

‘’The Head of Service was represented by a Permanent Secretary in the Secretary to the Government of the Federation, SGF, Office. 

He said: “The governors were not represented at today’s (yesterday) meeting again. They are running away. What we have observed is that the governors don’t want to get involved because they do not want to pay.

“For me, what is happening is a new development because they are trying to tell us why government will not be able to pay and the private sector is telling us how their productivity has been eroded and how so many of them have closed down.

‘’If we follow this very well, it changes the approach to governance. That is a situation where you don’t carry many people along.”

Labour’s demand may endanger job security — OPS

On his part, the spokesperson of OPS, and Director-General of Nigeria Employers’ Consultative Association, NECA, Adewale-Smatt Oyerinde, insisted that the major concern of members of the OPS was job security, pending when the economy improves.

He said: “It is important to note that what the committee was constituted to negotiate is a new national minimum wage and not maximum, that could be termed the “floor” wage, below which no employer should pay. 

“Employees should be able to navigate their paths toward higher wages through increased productivity and value addition.

“In the last three years, hundreds of companies have exited the country, shut down or changed business models. These companies include Jubilee Syringe Manufacturing, JSM, Procter & Gamble, Unilever Nigeria Plc, PZ Nigeria Plc, GSK Nigeria Plc, Sanofi Pharmaceuticals, Bolt Food, Nampak, Microsoft, Jumia Food, Equinor (oil & gas), Mayor Biscuits Company Limited, Greif Nigeria, among others, with many other multinational companies declaring over N1trillion in combined losses.

“According to the Manufacturers Association of Nigeria, MAN, about 767 manufacturing companies were shut down and over 335 experienced distress in the country in the last three years.

‘’In addition to this is a burgeoning N350 billion worth of unsold inventory of manufactured goods, of which the same fate is faced by Small and Medium Scale industries, SMEs. The private sector is on the precipice of collapse, with massive consequences for jobs.”

He pleaded with the “committee to refocus its effort on protecting jobs, boosting the capacity of the private sector to create more jobs and ensuring sustainability and ability to pay. 

“According to the National Bureau of Statistics, the combined rate of unemployment and time-related underemployment as a share of the labour force population (LU2) increased to 17.3 per cent in Q3 2023 from 15.5 per cent in Q2 2023.

“In specific terms, the unemployment rate increased significantly in Q3 2023 at 5.0 per cent. With these figures, more efforts should be concentrated on keeping more people in employment, while the government continues to implement its planned interventions in transportation, food security and general macro-economic stability.

“With organized businesses declaring over N1 trillion in combined losses and many shutting down their businesses for different reasons, while others are relocating to other climes, the ability to pay the prevailing N30,000 was already compromised.

“It will be practically impossible to guarantee enterprise sustainability and job security with the current demands of organized labour.

“Notwithstanding ongoing challenges, made worse by rising interest rates, astronomical logistics cost, increasing energy tariff and multiple taxes, levies and fees, the private sector remained committed to supporting the welfare of workers and the protection of their jobs, which can only be guaranteed by the survival of the enterprise.’’

Meanwhile, a member of OPS, however, informed Vanguard that the meeting was adjourned after yesterday ‘s deliberation, saying the labour negotiating team said members were going for consultations.

‘’So, the meeting was adjourned,’’ he said.

On when the meeting would reconvene, he said: “Only the secretariat of the committee can fix a date for the meeting. That has been the practice; it will inform us when to reconvene.”

ONE YEAR OF TINUBU ADMINISTRATION: EX-PRESIDENT BUHARI CONVEYS GOOD WISHES TO PRESIDENT.

Former President Muhammadu Buhari extends his best wishes to President Bola Ahmed Tinubu on the completion of his first year in office.

The former President appealed to all citizens to continue to strengthen the thread of national unity and goodwill.

He also appealed to them to give their blessings and support to the Tinubu administration so that it can succeed in its efforts to build a Nigeria of our dreams.

President Buhari expressed his wish for a successful tenure in office by the Tinubu administration.

Signed:
Garba Shehu.
28-5-24.

Wale Edun, minister of finance, says economic instability forced 800 companies to shut down operations.

Edun made this known on Tuesday in Abuja during the sectoral report of President Bola Tinubu’s one year in office.

The minister said the departure of these companies was not sudden.

He said issues such as market instability, unfulfilled promises, and contract breaches drove them away, but these issues have now been resolved.

“Government did inherit an unstable economy,” Edun said.

“The 800 companies or so did not make up their minds overnight. They stayed until they could stay no more.

“The conditions which sent them packing are no more. Those conditions were a foreign exchange market that was in no way fit for purpose.

“There was no liquidity. They were a general economic regime marked by instability, broken promises, lack of adherence to contracts.”

Edun said the new environment for investors involves tackling inflation, which will eventually result in lower interest rates.

This, he said, will allow investors to leverage the dynamic domestic markets to enhance their equity and invest.

On March 6, the Manufacturers Association of Nigeria (MAN) said 767 manufacturers shut down operations, while 335 became distressed, in 2023.

Dele Momodu, a chieftain of the Peoples Democratic Party (PDP), has called on President Bola Tinubu to bring in capable individuals who can help address the nation’s challenges into his cabinet.

Speaking with journalists on Tuesday in Lagos, Momodu acknowledged the difficult times many Nigerians have faced over the past year and urged Tinubu to invite people with fresh ideas to help turn things around.

According to Momodu, the President needs to do more to meet citizens’ expectations, stressing that Nigeria is blessed with some of the greatest human beings scattered across the globe.

He advised Tinubu to find and bring these individuals into the government.

“The best way to get a second term by any leader is when you have performed in the first term,” Momodu said, adding “My honest advice, borne out of patriotism, is that you urgently get the best people on board.”

The publisher further urged the president to surround himself with people who would provide honest feedback, warning against the culture of sycophancy which he described as an albatross to good governance.

Momodu also called on Tinubu to solve the energy crisis in the country which he believes is crucial for propelling development, stating: “Until we solve the energy crisis, I don’t think we will be ready to join the comity of other nations in their march towards advancement.

“We also need to declare a state of emergency in infrastructure, education, food security, and overall security.”

…says trial- and-error economic policies won’t work

The presidential candidate of the Peoples Democratic Party (PDP), in the 2023 general elections, Atiku Abubakar, has said President Ahmed Tinubu’s one year rule hasn’t produced tangible results because he unleashed reforms without an implementation plan.

Atiku said this in an article he made public on Tuesday. He recalled that “On May 29, 2023, President Bola Tinubu raised the hopes of Nigerians with his pledge to ‘remodel our economy to bring about growth and development through job creation, food security and an end of extreme poverty.”

He explained that since making this pronouncement, Tinubu has also spoken about growing the economy at double-digit rates to US$1 trillion in six years, ending misery, and bringing immediate relief to Nigeria’s cost-of-living crisis.

According to the former Vice President noted that on listening to this, Nigerians must have breathed a sigh of relief after their experience with ex-President Buhari’s 8 years of economic misadventure.

He, however, said, “Tinubu laid out no plans for the ‘remodeling’ of the economy but soon embarked on a cocktail of policies to achieve it.

“In May 2023, he eliminated PMS subsidies, and a month later, the CBN implemented a new foreign exchange policy that unified the multiple official FX windows into a single official market.

“More policies followed in rapid succession: the tightening of monetary policy to reduce Naira liquidity, a hike in monetary policy rates, the introduction of cost-reflective electricity tariff, and a cybersecurity tax.

“Predictably, 12 months on, Tinubu’s pledge of growing the economy and ending misery remains unfulfilled.

“His actions or inactions have significantly worsened Nigeria’s macroeconomic stability. Nigeria remains a struggling economy and is more fragile today than it was a year ago.

“Indeed, all the economic ills – joblessness, poverty, and misery – which defined the Buhari-led administration have only exacerbated.

“Africa’s leading economy has slipped to the 4th position lagging behind Algeria, Egypt, and South Africa. Citizens’ hopes have been dashed (and not renewed contrary to the propaganda of the administration) as Nigeria’s economic woes have multiplied.

Giving an analysis of how he thinks Nigeria got to this sorry state, Atiku said, “In my press statement on the state of our economy, earlier this year, I expressed my concerns about the downside risks of unleashing reforms without sequencing;

“…without any ideas on how to implement them; and without any regards to their potential and real devastating consequences. Implementing policies without proper planning and a clear destination is nothing other than trial-and-error economics.

“My concerns have not diminished. I will focus on just four areas to underscore those downside risks associated with Tinubu’s reform measures and their dire consequences on Nigeria’s medium to long-term growth and development.

“First, President Tinubu’s policies do not create prosperity. Instead, they pauperize the poor and bankrupt the rich.

“They spare no one. Nigerian citizens, the majority of whom are poor, are going through the worst cost-of-living crisis since the infamous structural adjustment programme of the 1980s.

“The annual inflation rate at 33.69% is the highest in nearly 3 decades. Food prices are unbearably higher than what ordinary citizens can afford as food inflation soared to 40.53% in April, the highest in more than 15 years.”

He further said, “Nigerian citizens have to pay 114% more for a bag of rice, 107% more for a bag of flour, and 150% more in transport fares relative to May 2023. Today, in some locations, motorists are paying 305% more for a litre of fuel.

“Yet, on a minimum wage of the equivalent of US$23 per month, Nigerian workers are among the lowest wage earners in the world. Tinubu had the ‘courage’ to remove subsidy on PMS;

“…and impose additional taxes on his people but lacks the compassion to raise the minimum wage or implement a social investment programme that would reduce the levels of vulnerability, and deprivation of workers and their families.

“Second, President Tinubu’s policies create a hostile environment for businesses, big or small. The private sector is overwhelmed by Tinubu’s dismal policies and overburdened by his failure to address the policy fallouts.

“The manufacturing sector, which holds the key to higher incomes, jobs, and economic growth, has been bogged down by rising input prices, higher energy and borrowing costs, and exchange rate complexities.

“For example, since 2023, the average price of diesel has doubled to N1,600 per litre. Electricity tariff has recently been increased by 250% from N68/Kwh to N206/Kwh.

“As reported by the Guardian (13 May 2024), in Q1 of 2024, energy prices were up by 70%, costing manufacturers N290 billion.

“Since May 2023, corporate Nigeria has lost more than a dozen enterprises to other countries. Unilever, GlaxoSmithKline (GSK), Procter & Gamble (P&G), Sanofi-Aventi Nigeria, Bolt Food, Equinor, among others had exited Nigeria citing reasons including foreign exchange complexities, security concerns, and high operational costs.

“According to the Nigeria Employers’ Consultative Association (NECA), nearly 20,000 jobs may have been lost due to the departure of 15 multinational companies from Nigeria.

“Those enterprises that remain are struggling to survive. Vanguard Newspaper (20 May, 2024) reported a significant rise – to nearly 30% – in unsold goods in the warehouses of manufacturers of fast-moving consumer goods, occasioned by the rising cost of living and declining purchasing power of the citizens.

“According to the Guardian, manufacturers reported in Q1 a 10% drop in capacity utilization, a 10% drop in production, a 5% drop in investment, and more than 7% drop in sales.

“The Daily Trust (1 May, 2024) quoted Dangote lamenting that nearly 97% of manufacturing concerns in Nigeria will be unable to pay dividends this year.

“In an economy with high rates of unemployment, a declining manufacturing sector cannot be an option.

“Third, President Tinubu’s foreign exchange policies have not had any positive impact on Nigeria’s foreign trade balance, contrary to policy expectations.

“In particular, the free-float and the resulting devaluation of the Naira has not resulted in an appreciable improvement in Nigeria’s trade balance.

“Devaluation has not enhanced the competitiveness of local producers and has had no positive impact on exports of goods, primary or manufactured. In Q4 of 2023, for example, while imports surged 163.1%, exports rose at a slower 99.6%, indicating a huge foreign trade deficit.

“Similarly, in Q1 of 2024, Nigeria recorded a trade deficit of $7.5 billion, with exports value of $12.7 billion and import value of US$14 billion. Overall, the trade deficit as a percentage of GDP increased by 0.83% from 0.05% in May 2023 to 0.88% in May 2024.

“Fourth, President Tinubu’s policies have failed to attract foreign investments into the country despite all the posturing and media hype by the President’s men.

“Exchange rate unification and free float of the Naira have not led to higher capital inflows (whether Foreign Direct Investment or Foreign Portfolio Investments), again contrary to policy expectations.

“ Indeed, FDI inflows declined by 26.8%, from US5.33 billion in May 2023 to US$3.9 billion in May 2024. It is not difficult to understand why: FDI is about TRUST.

“It is about the investing world trusting the leadership of a country to act and deliver on promises made. Investors come when the right policies are designed and delivered timely and efficiently by public institutions.”