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As President Bola Tinubu sets up a committee to decide a new minimum wage for Nigerian civil servants, it would seem worrisome that the country’s rising inflation, currently at 28.92%, is yet to be tamed.
Economists believe the implementation of a substantial new minimum wage will hurt the economy with more than 50% inflation. This is just as the naira exchange rate to international currencies widens daily.
President Tinubu is touting a minimum wage that will be satisfactory to all, which leaves many in wonderment what that would be.
According to the World Bank, People living below the poverty line don’t have enough to meet their basic needs. Countries typically define national poverty lines, using the lines of a group of the poorest countries to define the international extreme poverty line of $1.90 per day.
Currently, at the rate of N1,520/$, a N30,000 monthly wage is worth 66 cents per day, which is far below the poverty line.
If the committee set up to recommend a new minimum wage, does it by the World Bank’s standard, that means the next minimum wage must be at least N84,474, going by the current exchange rate to the dollar.
Considering the fact that the civil service across the states and the federal government is at least 1.7 million, an addition of at least N50,000 per civil servant would mean infusing N85 billion into the economy every month, or N1.02 trillion every year.
Without value addition in terms of productivity, the government will resort to printing or borrowing money endlessly to meet its recurrent expenditure, which would in turn cause massive demand-pull inflation.
The President said his administration hopes to surpass the basic Social Protection Floor for all Nigerian workers, considering the sustainable payment capacity of each tier of government for employers or businesses.
Veteran stockbroker and lecturer at Adeleke University, Professor Tayo Bello, told Nairametrics that increasing wages in Nigeria during a period of rising inflation could initially provide relief to workers by improving their purchasing power and standard of living. He said higher wages may contribute to a boost in consumer spending, potentially stimulating economic activity.
- “However, the downside is that this wage increase might exacerbate inflationary pressures. As businesses face higher labor costs, they may pass on these expenses to consumers through increased prices for goods and services. This, in turn, could create a feedback loop, with rising wages fueling further inflation,” he said.
Dr. Tosin Olaleye, an economic affairs analyst, also told Nairametrics that small and medium-sized enterprises (SMEs), which make up more than 96% of businesses in Nigeria, may be particularly vulnerable to increased wage costs, potentially leading to layoffs or business closures.
He said this could negatively impact employment levels and overall economic productivity. He also said depending on how well the minimum wage is managed, the exercise could increase the rate of inflation by as much as 50%
Special Advisor to President Bola Tinubu on PEBEC and Investment, Dr. Jumoke Oduwole, revealed that 39.7 million MSMEs in Nigeria today account for roughly 96% of businesses and 88% of jobs.
Financial economist at Ebonyi State University, Dr. Nelson Nkwo, noted that the government may need to implement complementary policies to manage the potential negative effects of wage increases, such as tightening monetary policy to control inflation and providing support to affected businesses through targeted interventions.
- He said striking a balance between addressing the legitimate demands for higher wages and managing inflationary pressures is crucial for achieving sustainable economic growth.” Policymakers must carefully consider the broader economic implications and adopt a comprehensive approach to ensure a harmonious and stable economic environment,” he stated.
Drawing strength from the outcome of the Udoji Commission in 1972, Nkwo said, “I fear we may have another bout of uncontrollable inflation, maybe above 50%, if the wage increase is not properly managed.”
Also speaking, the chief executive of Anthill Concepts Limited, Dr. Emeka Okengwu, stated that it is more appropriate to be talking about living wage because living wage takes into consideration what minimum wage does not.
He said a living wage would contain three major factors, including energy cost, which would include electricity and transportation, education, and the cost of food and healthcare.
He caveated that this cannot be achieved without productivity because it cannot be accomplished with imported goods and services such as energy and health facilities.
He also cautioned that it’s only a small percentage of Nigerians that are in paid employment and a smaller percentage of Nigerians in the civil service.
According to the Anker Reference Value Update Rural Nigeria 2023, the Living Income for 2023 is NGN 232,948 (USD 383). This update takes into account the amount of inflation to mid-2023 for the country since mid-2020.
Accumulated inflation in this period was 68.0%. “Without accounting for inflation, the living income estimated in 2020 would not be sufficient for families to have a basic but decent standard of living in 2023, because the purchasing power of the living income would have decreased.
The Coordinator of the Independent Shareholders Association of Nigeria, Moses Igbrude, and Professor Tayo Bello agreed that increasing the minimum wage will not be the ultimate solution to the underlying problem laborers face.
Speaking separately, they cited that the government needs to improve the country’s productivity, especially in the agriculture and manufacturing sectors.
Igbrude noted that an increase in the minimum wage at this time would reduce the value of the increase in no time because there are no measures in place to curb the rising inflation and the sliding value of the naira, which is another major cause of inflation.
[Nairametrics]
Nigeria is the second-largest trading partner in Africa to the United States of America, Julie Leblanc, U.S. Commercial Counselor to Nigeria, said during her speech held at the BusinessDay Africa Trade and Investment Summit.
The event organised by Africa’s business journal of international repute, BusinessDay, is currently taking place at the Eko Convention Centre, Lagos, and has had captains of industry, senior government officials, and members of some diplomatic coups in attendance, with more to speak today (Friday).
Leblanc, who stood in for Will Stevens, the U.S. Mission to Nigeria, and of Consul General, spoke about the significance of strengthening bilateral trade relations between the U.S. and Africa, and in particular Nigeria.
She emphasised the roles played by the U.S. government to reduce the trade gap between both countries.
She said, “Turning our attention to Nigeria, one of the continent’s largest economies, we recognise the vital role it plays in regional and global markets. With two-way trade exceeding $10.6 billion in 2022 and U.S. foreign direct investment totaling $5.6 billion, Nigeria stands as our second-largest trading partner in Africa.”
The U.S. envoy stated the specific areas that have helped improve this bilateral relationship, with more focus directed towards enhancements in technology, education, healthcare, and agriculture, amongst other areas.
Leblanc said, “Our partnership is increasingly technology-driven, with significant investments in Nigeria’s tech ecosystem and collaborative efforts to tackle global challenges in education, healthcare, agriculture, and other key areas.”
LeBlanc highlighted the pioneering programme of the Biden-Harris Administration, the Digital Transformation with Africa (DTA), as a demonstration of the U.S.’s commitment to enhancing productivity in its partnership, particularly with Nigeria and the entire continent of Africa.
She says, amongst several things, that the DTA is going to “expand digital access, enhance U.S.-Africa commercial relations, and strengthen digital environments in alignment with the African Union’s Digital Transformation Strategy.”
The programme was created not only to acknowledge the continent’s contribution to global trade but also, most importantly, to amplify its role in global digital transformation.
In addition to the remarkable initiatives aimed at enhancing trade relations between the world’s largest economy and Nigeria, the U.S. envoy highlighted several commendable programmes the U.S. government employs to bolster Africa’s presence on the global stage.
Among these initiatives is the U.S.-African Continental Free Trade Area Memorandum of Understanding. The U.S. government’s unwavering confidence in the programme is reflected in its investment of $160 million to support it.
According to Leblanc, “this funding supports the development of digital trade and investment protocols, stakeholder engagement across Africa, and trade facilitation efforts.
“Our focus is on expanding trade in goods and services, digital trade, and supporting the Women and Youth Protocol of the African Continental Free Trade Area.”
[BusinessDay]
The Belgium government has sounded a warning that it is not easy to survive in Belgium, albeit Europe without a decent job.
Belgium also expressed concern over the spike in some asylum seekers from Nigeria in the post-COVID era, saying it has increased from 50 to 380 in 2023.
Freddy Roosemont, Director General, Office of Foreigners, Belgium barked out the warning while addressing journalists in Abuja on Friday.
Roosemont said right now there is no space for people to migrate to in his country, as lots of irregular migrants end up on the streets.
He therefore stressed that most dreams of a better life in Europe are nothing but eldorado; adding that it’s a dream and not a reality.
He said: “First of all, informing the people correctly, because that they often leave with a dream. If I say to the investor, you’re gonna win the lottery next week and it’s going to bring you a million euros and he believes me it will be a dream, is that dream realistic? Not at all.
“So first of all, you have to take away the dream. The dream is not real. That’s why I’m telling you and I hope that through you, the public is aware that dream is not real.
“It’s not easy to survive in Europe, without a decent job and without sort of being an employer or by a university. The dream is fake.
“The second thing is, of course, we have legal migration, but legal migration will not be for 10,000 for 5000 people. It will be for some people who have gone through some conditions. Somebody who wants to study in Belgium is very welcome. But he first has to show to the university that he will be capable of following the studies there in English, that if he’s studying medicine he has a sort of basics to study medicine, and if he wants to become an engineer, that he has a technical knowledge that he is good in maths and so on. So there it’s the division University is going to select who they let it was not only from Nigeria, it’s from everywhere in the world like that.
“The work possibilities are there, but it will be a Belgium employer who is looking for somebody who can fill a position in his company, and he has connections, he knows that you’re capable of doing so that he asks at the Belgium service of labour if he can contact you give you a contract and get you over family reunification is easy to do.
“So you need a family you need a wife and your children. But those three are the three main levels of legal migration.”
He also warned that coming to Belgium to seek asylum would not work, as there is a low chance of obtaining a residence permit.
“So at that moment, we have to limit the reception of asylum seekers only to people who are vulnerable and that means families, women with children. No man alone, not in that group.
“So for the moment there are lots of these asylum seekers living in Brussels on the street, and I can assure you the temperature in Brussels is not what it is here in Abuja. It got to minus seven, minus five. Now it’s around zero Celsius.
“So it’s really not easy to survive in Brussels without help without assistance.
“We are by law obliged to give that assistance but we simply can’t do it because places are filled up or simply filled up. It’s a very painful situation for Belgium, but it’s like that if you look at the newspapers, if you look at the journals, if you walk in the streets in Brussels, you’re going to see everywhere, people sleeping on the streets and people trying to survive without any help.
“Secondly, we also see that a lot of people, especially girls are forced into prostitution in the big cities.
“If we find girls like that, we try to help them we try to help them to come to come them the people come keep guilty of that.”
He also added that certain procedures in the Belgium Justice Department would help girls who want to leave the profession. So we get quite good information about what they have to do and what they earn. And they earn nothing, their passport will be taken away from them. Their humanity will be taken away from them and they will end up there and that’s why you have to inform your public, the people of Nigeria, the youth of Nigeria that things like that are still going on in Europe and Belgium.
Roosemont pleaded with the media to help educate the people, saying “Notifying the youth that it’s not the dream to go to Europe to go to Belgium is not realistic and it’s very dangerous. So that’s why I making that brief. That’s also the reason why we were here in Nigeria the last week to try to inform the youth directly or indirectly, that the thing that they hope is not realistic. It’s a very dangerous thing.”
A Federal High Court in Abuja on Friday dismissed a preliminary objection challenging the competence of the Inspector General of Police to prosecute them on terrorism-related offences.
The defendants Chime Eguma Ezebalike, Prince Lukman Oladele, Kenneth Goodluck Kpasa, Osiga Donald, and Ochueja Thankgod, who are loyalists of the Rivers state governor, Simialayi Fubara, are standing trial on terrorism-related charges and alleged murder.
The IGP had instituted the charges against them following their alleged role in the bombing of the Rivers State House of Assembly in October 2023.
When the charges were read to the defendants, they all pleaded not guilty.
DID YOU KNOW? Did you know a man who locked himself up for 55 years over the fear of a woman?
In a preliminary objection filed through their counsel, the defendants urged the court to stop the trial of the terrorism-related offence preferred against them as only the Attorney General of the Federation and Minister of Justice could try them on such an offence.
Justice Mobolaji Olajuwon, in a ruling on their preliminary objections on Friday, held that the defendants were wrong in their claims that only the AGF can put them on trial.
Justice Olajuwon said that the law, especially sections 3, 63, and 74 of the Terrorism Prevention Act, were clear to the effect that the AGF is Constitutional. Power to strengthen the terrorism prevention law, the same sections did not confer the exclusive rights to prosecute on the AGF.
The Judge said that while section 5 of the Terrorism Prevention Act confers the responsibility of gathering intelligence and investigation on police, the same section donated rights to Police to initiate criminal charges in a competent court of jurisdiction.
Specifically, Justice Olajuwon held that while the AGF, under section 174 of the 1999 Constitution, can lawfully take over, continue, or terminate any initiated criminal charges, such right did not make trial an exclusive right of the AGF.
“From the cursory look at all the authorities cited by lawyers for and against the IGP rights to initiate the instant criminal proceedings, one thing is clear too, that police can rightly initiate criminal charges including terrorism charges”.
The Judge said that the preliminary objections to the trial by the defendants were incompetent and lacking in merit.
Olajuwon subsequently dismissed their objections.
After the ruling, the counsel for the first and second defendants, Lukman Fagbemi (SAN), urged the court to grant bail to his clients.
But the counsel for the prosecution, Simon Lough (SAN), opposed the application.
Justice Olajuwon, however, fixed Monday, February 5, for ruling on their respective bail applications.
Justice Olajuwon ordered that the five defendants be returned to Kuje Prison in Abuja pending the decision of the Court on whether to allow them on bail or not.
[Punch]
. . . fourth time is less than 14 months
The Central Bank of Nigeria, CBN, has approved an increase in the import duty rate by 43 percent.
Recall that the exchange rate for duty collection is usually determined by the CBN.
Importers and stakeholders in trading woke up on Friday to find the increase in the exchange rate, which before now was set at N951.842 per $1 as of December 2024, taken up to N1356.42.
Reacting to the development, Chief Executive Officer of the Center for the Promotion of Private Enterprises, CPPE, Dr. Muda Yusuf, expressed shock at the development, saying that the increase will further worsen the already bad economic situation.
Yusuf wondered if anybody was advising the Governor of the CBN on the implications of these actions.
He said, “I am shocked at the development, I mean with all these suffering, with all these costs, we have not recovered from the unification of the exchange rate they just did, now another increase in duty.
“This increase will definitely affect every area of our economic life, already; we recorded a drop in the volume of import last year, so you imagine what will happen with this increment.
“The sharp depreciation and the increment of import duty will no doubt affect the volume of trade because the cost of import is going to increase significantly and this will affect practically all the key components of cost.
“That is the cost of transportation, the cost of shipment, the cost of clearing and this will slow down the velocity and the tempo of activities in the maritime sector. And that tempo has already reduced anyway and it further reduces.”
He warned against the upward review of the exchange rate for the computation of import duty, adding that it would be devastating for both the economy and the citizens.
Speaking in a similar vein, former Executive Secretary of the Nigerian Shippers Council, Mr. Hassan Bello, said that the velocity of the exchange rate is affecting every sector of the economy, adding that the country needs to export more than import.
He said, “As the Naira further depreciates against the Dollar, we will have less importation.”
[Vanguard]
Prices of imported goods and services will increase, thereby, fuelling inflation as the Central Bank of Nigeria (CBN), adjusted the exchange rate from N951.941/$1 to N1,356.883/$1.
LEADERSHIP reports that financial experts have said until the exchange rate stabilises, inflation will not stabilise and will continue to soar in Nigeria.
Our Correspondent, however, gathered that the adjustment was made midnight by the CBN, meaning the cost of clearing cargoes in the nation’s seaports will automatically go up
It could be recalled that the CBN on June 24, 2023 adjusted the exchange rate from N422.30/$1 to N589/$1 and on July 6, 2023 it was adjusted to N770.88/$1, on November 14, 2023, it was adjusted to N783.174/$1, December 7, 2023, it was adjusted to N951.941/$1 and currently, it is N1,356.883/$1.
Clearing agents, however, stated that with N 404.942 increment, cargoes will be abandoned at the nation’s seaports while prices of goods will go up.
Confirming the development, a clearing agent, Chukwu Ikemefuna, said the CBN effected the increase on Trader Portal for Single Window by midnight.
Ikemefuna rued the increment, saying importers will now pay more for cargo clearance at the various seaports.
He stated that a lot of cargoes would be abandoned at the seaports because the differential was too wide for importers to bear.
“The federal government has increased the Dollar exchange rate, from N422.30 to N589.45 then to N770.88, in November, it was moved to N783.174, December 2023, we are at N951.941 to a dollar now, we N1,356.883/$1, this is too much,” Ikemefuna, a frontline clearing agent stated.
He continued, “What it implies in simple terms is that, if clearing agents have a Debit Note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly.”
“We just believe that maybe with time, we will see low exchange rate and it will become beneficial to the importers as well because once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or accessed your work, you are good to go and your consignment would be released for you if you don’t have any infraction.”
“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as of now, you can’t capture it with that old rate. Especially for the Roll On Roll Off (RORO) or those that are doing PAAR door to door. It’s a Federal government policy. We stakeholders can’t do anything for now, but it’s the prerogative of the FG to intervene and stabilise the foreign exchange market,” he stated.
President Tinubu, Others Congratulate Dangote on Award of National Order of the Lion by the Govt of Senegal
AdminPresident/Chief Executive of Dangote Industries Limited, Aliko Dangote has been conferred with the prestigious award of the National Order of the Lion by President Macky Sall of the Republic of Senegal. The National Order of the Lion Award is the highest civilian laurel to be bestowed on any individual in the West African country. The award ceremony will be held, in Senegal on Friday.
This highest recognition and honour was said to be in appreciation for the services Dangote has rendered to the Republic of Senegal as well as a tribute to his business acumen, philanthropy, and developmental projects, which are capable of transforming Africa as a whole. The Dangote Group has a Cement Plant in Pout, Senegal.
President Bola Ahmed Tinubu has sent a congratulatory message to the frontline businessman on the award conferred on Dangote by the Senegalese Government.
In a press statement, signed by the Special Adviser, Media & Publicity to the President, Chief Ajuri Ngelale, President Tinubu applauded the industrialist for his enterprise and ingenuity, creating jobs and opportunities for many in Nigeria and across West Africa, as well as contributing to their economies, which the award further affirms. The President commended Mr. Dangote and wished him the very best in his endeavours.
Recall that, just recently, Dangote was also conferred with the Commander of the Order of Merit of Niger award by the President of the then Republic of Niger, His Excellency Mohamed Bazoum in Niamey.
In the same vein, Dangote also bagged Nigeria’s second highest national honour, Grand Commander of the Order of the Niger (GCON), after the Grand Commander of the Federal Republic (GCFR) - an award which is only reserved for Nigerian Presidents and Heads of State. Dangote became the first individual outside government to receive this national honor. In the past, the GCON honour has only been awarded to Vice-Presidents, Chief Justices of the country, and Senate Presidents.
[PRESS STATEMENT] Church Of Nigeria To Honour Olamiti With Prestigious Award Of Excellence at 45th Anniversary
AdminThe Church of Nigeria Anglican Communion has nominated Sir Folu Olamiti for the prestigious Church of Nigeria Award for Faithfulness in Kingdom Service as the church celebrates 45th Anniversary of the Province of Church of Nigeria that was inaugurated on 24th February 1979.
In a letter signed by the Church of Nigeria Anglican Communion Archbishop Metropolitan and Primate of all Nigeria, Most Revd Henry Ndukuba, the Church stated that the honour “ is in grecognition of your unwavering dedication, exemplary leadership and significant contributions to the church of Nigeria Anglican Communion and Christian community at large.
“ Your life and ministry have left an indelible mark on the hearts of many, and this award is a small token of our immense appreciation for your tireless work in the Lord’s vineyard.
“ Your presence at this event would not only grace the occasion but also inspire and encourage others in their faith and service.
“The presentation of the award will take place during the opening ceremony of the Standing Committee of the Church on 7th of February 2024, at the Cathedral of the Ascension, Boji Boji, Owa in the Diocese of Ika, Delta State, at 10 am.
Signed
Anayochukwu Agbo
The new minimum wage demand rose from N200, 000 a month to N435, 500 because of the economic realities in the country.
The Chairman of the Trade Union Congress, Enugu State, Comrade Ben Asogwa, stated this in Enugu on Thursday in an interview.
Asogwa said the value of naira to a dollar when the N200, 000 was the benchmark had doubled, hence the demand for an increase from the earlier amount requested.
He said, “Let’s face the economic realities. If you look at the present monetary value, and what it was then, you will understand that the increase is in order. We are also trying to make the government understand how bad the economy has become. They should also evaluate what workers in other parts of the world earn compared to Nigeria.
“Nigeria is an importing nation, including importing the finished products of our natural resources exported in raw forms. Those in government have so much bastardised the economy. When we pegged the minimum wage at N200, 000, a dollar was around N700. But today, it is over N1400. The government should realize the injuries it has done to the economy.”
He said the review of the minimum wage was in accordance to the law, adding that, “By law, the minimum wage is reviewed every five years. It was last reviewed in 2019, hence this year is statutorily the year for another review.”
On how the new minimum wage would impact on non-civil servants, C Asogwa said, “The wage is not only for those who are government workers. The committee constituted for the negotiation comprises representatives of federal, state and the private sectors. It is also noteworthy that the economy revolves around workers’ salaries. When workers are paid well, traders sell better and the value chain continues.”
He blamed the dwindling of the nation’s economy to the removal of fuel subsidy without ensuring that Nigeria’s refineries were optimally functional, government’s inability to stabilize the dollars against the naira, and the country’s lack of production capacities.
He, however, admitted that the proposed N435, 500 new minimum wage is not static as it could be reviewed by the committee currently meeting with the federal government on the matter.
Vice President Kashim Shettima has voiced his frustration at some Nigerians whom he said were celebrating the rapid fall of the nation’s currency, the naira, calling them “clowns.”
Shettima who is never short of expletives and is usually in a combative mood made the statement while speaking as a representative of the President, Bola Tinubu at an event organised by the Economic and Financial Crime Commission (EFCC) on Wednesday in a video shared by Symfoni.
The naira has been rapidly depreciating in an astonishing manner with the Central Bank of Nigeria (CBN), instigating frantic monetary policies in its bid to stem the tide due to scarcity of the greenback.
Africa’s biggest economy is experiencing new challenges putting the naira under pressure since Bola Tinubu, the president, came to power on May 29, 2023.
The rate at the official window closed above the parallel market, often referred to as the ‘black market’, on Tuesday at the close of trading, raising concern on the direction of the country’s economy.
At the so-called Nigerian Autonomous Foreign Exchange Market (NAFEM) window, the naira was 1,482:57 per dollar according to the data published by the FMDQ, which calculates the exchange rate.
That was above the black market rate which closed at 1,475 raising serious alarm and frantic apex bank intervention.
And on Wednesday, the naira rose above N1,500 before retreating to above N1,400 as of Thursday and above N1,300 on Friday according to reports by FMDQ, following CBN intervention.
Shettima did not take kindly to social media reports which he said were not only disheartening but disenchanting.
He descended on those he said were celebrate the fall, saying, ‘”It is not only disheartening and disenchanting, but also heartbreaking that yesterday when the Naira culminated to N1,500 to the dollar, instead of us to coagulate into a single force and salvage our nation economy, sadly, some clowns are celebrating on Twitter of an impending implosion of the Nigerian economy.”
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The Nigerian Government has bought 12 AH-1Z Viper attack helicopters and other military arms to bolster the West African nation’s military capabilities.
The United States Department of Defense made this known in an article published on Thursday.
The contract, valued at $1 billion, includes the state-of-the-art helicopters and 32 mission computers provided by Northrop Grumman, with a separate contract valued at $7.7 million awarded in December.
Nigeria has been grappling with complex security challenges for years, including the Boko Haram insurgency in the northeast and banditry in the northwest.
This multi-pronged crisis has displaced millions and claimed countless lives, making the purchase of the helicopter, scheduled for completion in June 2024, a significant upgrade to Nigeria’s military assets.
The sale follows the US State Department’s approval in April 2022 of Nigeria’s request for the helicopters, which includes guidance systems, night vision imaging systems, and extensive training.
This military package aims to enhance Nigeria’s security infrastructure, contribute to shared security objectives, and promote regional stability. The Defense Security Cooperation Agency of the United States highlighted the importance of this sale in supporting the foreign policy goals and national security objectives of the United States by improving the security of a strategic partner in Sub-Saharan Africa.
The AH-1Z Viper, a multi-role attack helicopter, is designed for various missions, including reconnaissance, escort, and strike operations. This addition is part of Nigeria’s broader effort to address multiple security challenges within its borders, ranging from Islamist insurgency to widespread banditry.
Nigeria’s ongoing military procurement strategy includes acquiring m-346 attack aircraft, T-129 ATAK helicopters, Agusta 109 Trekker multi-role helicopters, and Chinese-made Wing Loong II drones, among others.
The Economic and Financial Crimes Commission (EFCC) has clarified a statement made by its chairman, Ola Olukoyede, that a religious sect was laundering money for terrorists, saying the group referred to was neither a church or mosque in particular.
The anti-graft agency said those subjecting Olukoyede’s revelation to sinister interpretation were on to mischief and should be ignored.
EFCC spokesperson, Dele Oyewale, in a statement on Thursday, with the titled “EFCC clarifies Its chairman’s disclosures about alleged money laundering by religious leaders,” said: “The groups fingered by the EFCC chair are religious sects, not a church or a mosque.
“Those subjecting this disclosure to sinister interpretation are on to mischief and should be ignored. The EFCC’s boss is focused on his assignment of tackling all shades of economic and financial crimes and would not be distracted.”
Recall that at the commission’s public engagement on ‘Youth, Religion and the Fight Against Corruption’ on Wednesday, January 31, 2024 in Abuja, the chairman had frowned at the conduct of some religious sect leaders whom he accused of being complicit in money laundering.
He had said: “As I’m standing before you, there is a matter we are handling, a pyramid scheme that involves over N30 billion fleeced from Nigerians.
Along the line, some people died, some victims collapsed and all of that. We were able to trace over N7billion to a particular religious body and I said, write a letter to the leader of that religious sect, and we did
“The next thing we saw was a restraining order. We got a restraining order restraining us from recovering the money. Meanwhile, people have died along the line. Money traced directly to your body, and that is what we are battling. Of course, we have appealed, and this is the situation that is facing us, religious leaders.”
He further said, “when I was the chief of staff, we investigated an issue of money laundering, somewhere in this country. There is a particular religious sect that laundered money for terrorists. These are the problems we are battling with.”
However, Oyewale said, “Olukoyede neither mentioned a Church, Mosque nor any particular religious entity. Unfortunately, his comments have been twisted with mischievous connotations.”
President of the Senate, Senator Godswill Akpabio, has urged the German government to not deport about 12,000 illegal migrants into Nigeria, saying such a move will aggravate security challenges in the country.
Akpabio made the call on Wednesday when the German Ambassador to Nigeria, Annette Gunther paid him a courtesy visit in Abuja.
Gunther, in her address, said both Germany and Nigeria are large economies in Africa and Europe respectively, and as such can partner.
“We are honoured to be here today. Nigeria and Germany being the largest economies and population in their respective continents, need to come together in their peoples’ interests. Nigeria is Germany’s second largest trading partner in sub-Saharan Africa,” the German envoy said.
In his own address, Akpabio noted that Nigeria is grappling with insecurity and called on Germany to work in synergy with Nigeria in the areas of security and power, to enhance the socio-political development of Nigeria.
The Senate President, then, urged Gunther to help Nigeria, Africa’s largest population in fighting insecurity as well as strengthening its economy.
He begged the German government to halt its move of deporting 12,000 illegal migrants of Nigerian extraction, as this can create more insecurity in the country.
“We also have a problem of infiltration from other countries. We require assistance from Germany in the area of security because when we had the Boko Haram issues in the North East, it might not have escalated to the level it did if we had the support of major players like Germany and others,” he said.
“It was very difficult for us to get support from America at that time, maybe due to what they read on social media concerning us. If developed countries stop listening to social media, they would be willing to assist developing countries.
“The recent decision of Germany to deport illegal Nigerians back to the country numbering 12,000 is something you have to look into for us, because of its security implications. As a result of the current political situation in Mali, Niger, and Burkina Faso, almost every black person in Germany, would claim to be a Nigerian because they don’t want to return to crises prone countries.
“Dumping 12,000 illegal immigrants in Nigeria would lead to the escalation of insecurity in the country. There is, therefore, the need for your country to allow our immigration officers to assess, who exactly is a Nigerian amongst them. If they allow them in here, without any kith and kin and they have to survive, the result would be nothing but militancy or insecurity,” Akpabio added.
The depreciation of the naira against the United States dollar by 55 per cent at the official foreign exchange market has led to a commensurate depreciation in airfares on international routes in Nigeria, according to findings by The PUNCH.
The naira had fallen from approximately 900/dollar to over 1,400/dollar on Monday after the FMDQ Exchange, which records data the nation’s official exchange rate, reviewed its methodology for calculating the rate.
The review came after the Central Bank of Nigeria accused approved foreign exchange dealers of reporting false figures.
However, barely 24 hours after the movement of the official exchange rate, international airlines operating in Nigeria moved the exchange rate for pricing their tickets to from about N900/dollar to N1,421/dollar.
The development led to approximately 55 per cent in international airfares on Nigerian routes.
Findings by our correspondent on Wednesday showed that ticket prices on Lagos-London-Lagos, Lagos-New York-Lagos, Lagos-Johannesburg, Lagos, among other top destinations had increased commensurately.
The President of the National Association of Nigerian Travel Agencies, Susan Akporiaye, who confirmed the sharp increased, said the development would compound the woes of travel agencies.
“We have been feeling the pinch for a long time, and the situation is just getting worse. People who are traveling are not doing so for fun; they are traveling for serious business like medical or even education. It’s no longer about leisure,” Akporiaye told The PUNCH.
Akporiaye explained that travelers were reluctantly parting with money, and given a choice, they wouldn’t pay at all.
“For instance, an air ticket that used to cost $1000 has now surged to N1.5m. The financial strain is a necessity for travelers, forcing them to squeeze their budgets.”
She said the industry operators empathised with their situation, with some passengers resorting to appealing and offering collateral just to pursue their objectives and travel.
The president said the prices would undoubtedly decrease, adding that, “I am optimistic. It’s not the fault of the airlines; rather, it’s a reflection of the country’s economic situation.”
The NANTA leader said at the moment there was no noticeable difference between the rates in the black market and the official window of the forex market.
As such, she advised airlines to open up lower inventory options to encourage travelers already financially burdened.
“I suggest that airlines contemplate offering lower inventory options, enabling customers to access flights for maybe N1m. This customer-centric approach recognises the financial constraints faced by many travelers.
“The higher inventory, nearing almost N5m, shows variations with some options open while others remain closed. It’s crucial to emphasize that airlines are not responsible for setting the exchange rate.”
Price checks by The PUNCH revealed that the average airfare ticket to some of the high-traffic international destinations like London cost N2.77m; Dubai N2.65m; New York N3.2667m; and Johannesburg N3.05m.
For the Lagos-Johannesburg-Lagos route, depending on the travel date, Africa World Airlines charges N2.7m, while Turkish Airlines sets the price at N3.4m. The airfare for a round-trip from Lagos to Dubai is N2.3m with Turkish Airlines, and N3m with Lufthansa.
An agent at Travel and Tours Limited, Maureen Chimaobi informed The PUNCH that the naira’s exchange rate of naira to dollar is getting worse for travelers.
“As of Monday, the exchange rate was $1 to N1450. I don’t know how much it sold today..”
“This ugly development is no longer only limited to the aviation sector, prices of goods and services have generally gone up. Even local commodities are not left out.”
On June 14, 2023, the naira fell signficantly following the decision to allow the currency to fluctuate freely, leading to a significant drop in its value. Since then, airlines and passengers have continued to struggle to bear the surging air ticket prices.
Despite the currency woes, our correspondent could not verify if there is any data to support that travel demands in Nigeria have dropped.
The International Air Transport Association reported that African airlines’ annual traffic rose 38.7 per cent in 2023 versus the prior year.
“Full year 2023 capacity was up 38.3 per cent and load factor climbed 0.2 percentage points to 71.9 per cent, the lowest among regions. December 2023 traffic for African airlines rose 9.5 per cent over December 2022.”