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…..says that it’s a diverse and inclusive collective
Against the backdrop of a Political Party creating a directorate for the Obidient Movement, the Presidential Candidate of the Labour Party in the 2023 general elections and the Principal mentor of the Obidient Movement In Nigeria, Peter Obi has said that the group is beyond a political party and cannot be cubbyhole into one.
Obi explained that membership of the Obidient Movement cut across a political party, sex, tribe, religion or geopolitical area pointing out that the driving force of the body is rescuing and building a new Nigeria that is POssible.
Explaining further the size, scope and nature of the Obidient Movement, the LP standards bearer wrote in his X platform on Wednesday “I like to categorically state that the Obidient Movement is not a directorate in any particular political party. Any individual or individuals claiming to be leaders of this non-existent directorate are simply not members of the broader Obidient Movement.
“There may be a youth mobilization directorate in political parties but the Obidient movement is far beyond a particular political party. The Obidient Movement is a diverse and inclusive collective that transcends traditional political, religious, and ethnic affiliations.
“It is not domiciled within any particular party or headquartered in any particular part of the country. Its membership spans across Africa and the globe, comprising individuals from various backgrounds, including rural communities, and public, private, and corporate entities, united by a shared vision for a New and better Nigeria. Guided by the principles of adaptive and transformative change, progress, discipline, and democratic values, the Obidient Movement advocates for fairness, equity, inclusivity, and justice.
“It is committed to a strictly accountable and responsible code of government. Our members are committed to contributing to the realization of a better future for Nigeria through the New Nigeria project, anchored on loyalty, integrity, and democratic values.
“The Obidient Movement seeks to foster positive change through a commitment to integrity, honesty, and accountability, rejecting deceitful behaviours.
“We serve as a beacon of hope for a reimagined Nigeria, where leadership is grounded in character, capacity, competence, compassion and the well-being of all citizens.
“Let this serve as a clarification that the Obidient Movement operates independently of any political party, and its membership is not limited to any particular affiliation.
“Our focus remains steadfast on driving positive change and promoting a New Nigeria for all. This is who we are and will remain for all time.
Nigeria’s inflation rate is predicted to stabilize at 14 per cent in 2029, indicating a potential end to the current upward trend according to the latest data from the International Monetary Fund.
This projection comes as a relief amidst concerns over the increasing inflation rate, which currently stands at 33.69 per cent as of April 2024, according to the National Bureau of Statistics a variation from the IMF’s prediction of 24.6 per cent in the year.
The IMF data suggests that the inflation rate will gradually decline from 23 per cent in 2025 to 16 per cent in 2026, 15.4 per cent in 2027, and 14 per cent in both 2028 and 2029.
This predicted stabilisation is believed to be a welcome development for the Nigerian economy, which has been grappling with rising inflation and interest rates.
Nigeria’s economy has been facing challenges in recent times, with rising inflation and interest rates posing significant threats to economic growth and stability.
The Central Bank of Nigeria has implemented various measures to address these challenges, including the increase in interest rates at the 295th MPC meeting in May 2024.
However, economists have raised concerns over the continued increase in inflation and interest rates, urging the government to address the underlying drivers of inflation, which are primarily food and transportation costs.
The Chief Economist, SPM Professionals, Paul Alaje, who spoke exclusively to PUNCH online via phone decried the increase in the Monetary Policy Rate.
He said, “I do not encourage any increase in MPR because the increase would have implications.
“Already within 4 weeks, we have seen the Monetary Policy Committee increase on 600 basis points, the MPR.
Alaje asserted that Nigeria is getting poorer and the economy is growing at a slow pace.
“We need to look at other tools rather than monetary tools in providing solutions to our economy. Monetary authorities have tried their best and we have seen so many things they have brought, however, despite all of the efforts, the exchange rate is back at 1,500 heading towards 1,600.
“Our solution would go beyond forcing and using monetary tools when we know that it is not just money supply influencing what we have,” he said.
However, another economist Jonathan Thomas said he believed “the IMF prediction of a stabilised inflation rate in 2029 is a positive indicator for the Nigerian economy. However, the government and monetary authorities must remain vigilant and implement policies that address the root causes of inflation.”
The current increase in inflation and interest rates has significant implications for businesses, households, and the overall economy.
By addressing the drivers of inflation and maintaining a stable economic environment, Nigeria can promote sustainable economic growth and development and possibly meet up with the IMF’s prediction.
The National Publicity Secretary of the Labour Party, LP, Abayomi Arabambi, had said that the party would not allow Peter Obi to join the Peoples Democratic Party, PDP.
Arabambi made this statement in an interview on Channels Television on Friday monitored by DAILY POST.
According to him, the party is seeking a political solution to its internal crisis so that its 2023 presidential candidate won’t work with his PDP counterpart, Atiku Abubakar, ahead of the 2027 poll.
“Politically, we will not allow the crisis to fester for long that we will now allow Mr Peter Obi to join Atiku.
“We knew their plans, that was why we said ‘we need to explore political solution between ourselves,” he said.
The Labour Party chieftain also spoke on the recent legal tussle bedeviling the party wherein an FCT High Court barred Julius Abure and two others from parading themselves as national officers of the party.
Recall that Justice Hamza Muazu of the FCT High Court, ruling on an ex parte application on April 5, 2023, had restrained Abure, Farouk Ibrahim, Clement Ojukwu, and Oluchi Opara from acting as national officers of the LP.
But in March 2024, the Court of Appeal in Abuja set aside the judgment of the lower court which restrained Julius Abure and two others from parading themselves as national officers of the Labour Party.
Justice Hamman Barka, leading a three-member panel of justices, held that Abure’s appeal had merit and was accordingly allowed. He held that the FCT high court was wrong to have assumed jurisdiction on the matter.
The court also awarded the sum of N1 million in favour of Abure and other appellants in the matter.
Reacting to the verdict, Arabambi said every action taken by Abure between March 2023 and March 2024 is a nullity.
“Since the Court of Appeal just set aside the judgement in March 2024, every other thing done between March 2023 and to 2024 by Julius Abure is a nullity,” he added.
The spokesman of the Obi-Datti organisation, Yunusa Tanko, on Friday, clarified that the Obidient Movement is bigger than the Labour Party.
Tanko, while speaking on Channels TV, stated this despite the movement being supporters of the LP presidential candidate in the 2023 election, Peter Obi.
He said, “It’s bigger than the Labour Party. It is so because it is a move of its own that has a life of its own. What they are interested in is good governance
“Even if the Labour Party is doing something that is wrong, they are able to challenge it. Let me go further. Even His Excellency [Peter Obi], if he does something that is not aligned with good governance, we would challenge it.”
According to Tanko, the Obidient Movement is all about good governance, which Obi preaches.
He said, “They are loyal to the messages that connect to good governance and Peter Obi is championing that particular good governance.”
Recall that the Labour Party, after a backlash, recently renamed a directorate of the party named the Directorate of Obidient Affairs.
According to the National Publicity Secretary of LP, Obiora Ifoh, the Obidient Directorate is now renamed as the Directorate of Mobilisation and Integration.
Obiorah said, “Following the controversies arising from the creation of the Directorate of OBIDIENT Affairs, in the party, the Directorate is hereby renamed the Directorate of Mobilisation and Integration.
“The inauguration will take place on Saturday, June 8, 2024, at the party’s National Secretariat, Utako, Abuja, by 10 a.m. Party members and the general public should take note.”
In the wake of the move, Obi said the movement is beyond the LP and cuts across party, gender, and ethnic divides.
Obi said, “There may be a youth mobilization directorate in political parties, but the Obidient Movement is far beyond a particular political party. The Obidient Movement is a diverse and inclusive collective that transcends traditional political, religious, and ethnic affiliations
“It is not domiciled within any particular party or headquartered in any particular part of the country.”
A former Peoples Democratic Party, PDP, Deputy National Chairman, Bode George, has maintained that President Bola Tinubu’s lack of prior experience in the presidency warrants a grace period.
The PDP chieftain stressed that President Bola Tinubu might not have been able to achieve much in one year because he was studying the failures of his predecessors.
The elder statesman, therefore, called on Nigerians to give President Tinubu an additional year to deliver on his promises and fix the country’s challenges.
George highlighted in an interview with AriseTV on Friday, June 7, that Tinubu, being a first-time president, requires additional time to enact his policies and gain Nigerians’ trust in his vision.
The elder statesman said, “He (Tinubu) had never served at that level (presidency). Well… you will say he was part of the party (APC) that formed the government (of Muhammadu Buhari), but it’s a hell of a different thing taking over and now leading the team.
“To be fair to my conscience, he has had that one-year holiday of trying to study the failures of the past administration. I have given him that one year of grace because now he has seen it and lived there.
“I expect his ministers to have come back in one year with those areas of lapses. Even when Baba (Olusegun Obasanjo became president in 1999, he was still trying to figure out what happened there or vise-versa in his first year. Let’s give him more time.”
The Nigerian government said it is releasing N20 billion to provide electricity meters for Band A customers before the end of September 2024.
Adebayo Adelabu, the minister of power, disclosed this on Friday at the BusinessDay Conference in Lagos.
“We are releasing N20 billion for the electricity distribution companies to procure meters for the unmetered Band A customers before the end of September,” he stated.
“The government has put in place the required framework to enable an injection of 1.5 million meters into the power sector through the World Bank Distribution Support Recovery Program.
“The Presidential Metering Initiative will ensure an additional 2 million meters will be procured annually for 5 years. This will ensure accurate billing, reducing revenue loss and improving cash flow for a more liquid power sector.”
According to latest data from the Nigerian Electricity Regulatory Commission, NERC, electricity customers in Nigeria without meters stood at 7,319,846 million which is 55.61 per cent of a total of 13,162,572 power consumers.
Consequently, only 5,842,726 electricity customers are metered of 13,162,572 registered consumers who get supply from the national grid, according to NERC.
The development comes as NERC announced a 245 per cent electricity tariff hike for Band A customers, getting 20-24 power supply in April.
Meanwhile, the Nigeria Labour Congress and Trade Union Congress embarked on strike on Monday, calling for the reversal of the electricity tariff hike.
The Bola Ahmed Tinubu-led Federal Government has increased its offer of a new national minimum wage to N62,000.
Organized labour has reduced its demand from N494,000 to N250,000.
Already the Tripartite Committee on New National Minimum Wage has adjourned as there was no consensus at the meeting.
The organized private sector also backed the government offer of N62,000, Vanguard reports.
The Tripartite Committee on New National Minimum Wage, NNMW, adjourned following their inability to reach an agreement.
According to the source, “there was disagreement on the amount. The government offered N62,000 and Labour offered N250,000.
“The report is to be communicated to the President for further deliberation on the next line of action. Let us wait for the President to receive the report.”
Recalls that organised labour’s negotiating team walked out of the committee meeting on Tuesday, May 22, for the second time in two weeks after the Federal Government increased its offer to N60,000 from the N57,000 it offered on Wednesday, May 22.
Labour, represented by the Nigeria Labour Congress, NLC, and its Trade Union Congress of Nigeria, TUC, counterpart, walked out of the tripartite committee meeting on May 15 after the government offered N48,000 and Organised Private Sector, OPS, offered N54,000, against the N615,000.
The 2023 Peoples Democratic Party, PDP, presidential candidate, Atiku Abubakar, on Friday, said the voice of Bauchi Central Senator, Abdul Ningi can’t be suspended from the people’s hearts.
Atiku said those who bear true conscience are welcome to his house.
Posting on X, Atiku wrote: “The voice of truth which Senator Ningi represents cannot be suspended from the hearts of the people. Every bearer of true conscience is welcome in my house. -AA”
In March, DAILY POST reported that the Senate suspended Ningi for three months over his allegation of budget padding.
His suspension followed an interview with BBC Hausa where he claimed that the Federal Government was operating two versions of the 2024 budget.
Ningi claimed that the N28.7 trillion budget passed by the National Assembly and signed into law by President Bola Tinubu was skewed against the North.
Following his suspension, he was recalled on May 28 after the Deputy Minority Leader Senator Abba Moro initiated a process, expressing regret on his behalf.
The Bauchi Central senator resumed at the National Assembly on Tuesday after he was recalled.
The Peoples Democratic Party (PDP) presidential candidate in 2023, Atiku Abubakar, has told federal lawmakers that posterity will not be kind to them if they keep looking away from what he alleged is the “daylight robbery” surrounding the fuel subsidy regime of the Bola Tinubu-led administration.
Atiku also alleged that the Tinubu administration was diverting public funds through petrol subsidy, hence the refusal of the government to reveal how much is being spent on subsidy.
The former vice president was reacting to the Presidency’s debunking of claims that it is making provisions to pay the sum of N5.4trn for fuel subsidy in 2024.
Recalled the minister of finance and coordinating minister of the economy, Wale Edun, had, in an Accelerated Stabilisation and Advancement Plan (ASAP), revealed that the government would be spending up to N5.4 trillion on oil subsidies in 2024.
Meanwhile, The Peoples Democratic Party (PDP), reacting also to the presidency’s claim, said the revelation confirmed its stand that the Tinubu-led All Progressives Congress (APC) administration is corrupt and deceitful.
The PDP, in a statement by its national publicity secretary Hon Debo Ologunagba, further demanded that the president immediately clear the air and come clean by “personally addressing Nigerians and ordering a public enquiry into the reported N5.4 trillion fuel subsidy under his watch.”
However, Atiku, in his own statement yesterday, said there is a need for the National Assembly to get to the bottom of the matter rather than focusing on frivolous issues.
“The National Assembly needs to be alive to its responsibilities, especially in the area of oversight. Posterity will not be kind to members of the National Assembly if they continue to look the other way while daylight robbery is taking place,” the former Vice President said.
He said the clandestine subsidy regime was one of the reasons investments in the oil sector had refused to come in.
Atiku added, “Tinubu has brought the shady nature of running Lagos to the federal level. He claims subsidy is gone but his Special Adviser on Energy, Olu Verheijen, says they are intervening from time to time while his Finance Minister, Wale Edun, described subsidy removal as an ‘ongoing process’. A document authored by the Coordinating Minister of the Economy revealing how much subsidy is being paid is now being disowned by the very authors of the document.
“Both the World Bank and the IMF have revealed in separate reports that Nigeria is still paying petrol subsidies, but the Tinubu government refuses to come clean. Even a senior member of the APC had revealed that subsidy was beyond paid.
“For a man who claims to be on a mission to attract foreign direct investment, it is ironic that he cannot see that his policy flip flops and lies are capable of dissuading investors. He must come clean on this subsidy issue since he doubles as petroleum minister. The Tinubu administration should be courageous enough to own their policies and outcome with their full chest and responsible enough to be accountable for their actions to Nigerians.”
Atiku said the denial lends credence that money meant for the Federation Account, which ought to be shared to states and local governments, is being diverted without any form of accountability whatsoever.
[Leadership]
A former senator, who represented Kaduna Central, Shehu Sani, yesterday urged the Kaduna State Government to recover all the funds allegedly diverted under the Nasir El-Rufai Administration.
The state House of Assembly accused El-Rufai and his aides of squandering N423 billion in eight years, an allegation the former governor denied.
The House received the report of the ad hoc committee set up to investigate all finances, loans and contracts awarded by the former governor.
The report indicted El-Rufai and many of his commissioners and aides.
Sani said the report vindicated his long-held opinion that there was massive mismanagement of funds by the last administration.
In a post on social media, the Senator stated: “The Kaduna Assembly has done a good job. I wish to congratulate them.
“The next step is to ensure the recovery of our stolen money…
“For anyone who cared to go through that published report, I don’t know what ‘serving with integrity means’.
“Kaduna was a victim of two types of banditry; the one in our forests and the one in the Government House.
“They left behind estates and malls for their children and left behind a mountain of debt for the children of the poor.”
Sani said the House report vindicated his personal views.
“For eight years, I stood alone telling the people of Kaduna State and the country how our state was systematically looted…
“The people inside and outside the state were deceived with aesthetics and industrial-scale propaganda.
“They wrecked the economy of the state, … destroyed the lives and livelihoods of millions of people and used religion to divide our state.
“Many politicians in the state were silenced out of fear of arrest, attacks by thugs or having their properties confiscated or demolished. I refused to be silenced.
“The Kaduna Assembly report is a vindication,” Sani said.
El-Rufai denied the allegations, describing the report that indicted him as “jaundiced.”
The House alleged that N423 billion of the state resources was siphoned under El-Rufa’i.
It mandated Governor Uba Sani to refer the former governor and others indicted aides to relevant security agencies for investigation.
Chairman of the ad-hoc committee and Deputy Speaker, Henry Magaji Danjuma, presented the report during plenary on Wednesday.
The report alleged that most of the loans obtained by the El-Rufai Administration were not used for the purpose for which they were secured, while due process was not followed in some cases.
The Speaker, Yusuf Liman, said the past administration’s financial activities left the state with huge liabilities.
The report was adopted and its recommendations were forwarded to the governor for immediate action.
The House alleged that the humongous withdrawals of cash in naira and dollars from the state’s coffers had no supporting records of utilisation.
It further alleged that El-Rufa’i connived with commissioners and heads of parastatals to defraud the state by issuing directives to the Kaduna Public Procurement Agency (KADPPA) to circumvent due process in payment to contractors.
[TheNation]
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As Labour, FG Continues Negotiation
Report has indicated that state governors are not considering a new national minimum wage that is higher than ₦70,000.
According to The Nation, the state helmsmen, after a meeting in Abuja reviewed the situation and concluded that any amount above ₦70,000 is not feasible.
They ruled out the ₦100,000 option being dangled by some people.
Sources at the meeting said the governors, who met under the auspices of the Nigeria Governors’ Forum (NGF), considered options between ₦60,000 offered to Labour by the Federal Government before the strike, and ₦70,000, which is what the Edo State Government has started paying.
The source said, “After deliberation on the minimum wage, we decided to consider options between N60,000 and N70,000 a month. We could not reach a concrete decision on the wage rate for states.
“Eventually, a committee, to be led by Governor Uzodimma, was mandated to look at all presentations and make recommendations.
“The NGF will soon reconvene to consider the Uzodimma Committee report.
“No state can afford to pay a N100,000 minimum wage and we have ruled out this benchmark.
“Records available to us indicated that some states are still paying N18,000 because they are unable to afford N30,000 (which came into effect in 2019). Only a state has adopted a N70, 000 wage.”
Naija News reports that this development is in line with a previous statement by Chairman of NGF and Kwara State Governor AbdulRahman AbdulRazaq that states will only agree to a minimum wage that is “affordable and sustainable”.
Top federal government officials have kept their lips shut on the new national minimum wage proposal submitted yesterday to President Bola Ahmed Tinubu by Wale Edun, the minister of finance and coordinating minister of the economy.
It was similar with organised labour officials when LEADERSHIP Friday contacted them on the issue. They, too, would not volunteer information.
The only information offered by a source close to the president of the Nigeria Labour Congress (NLC), Joe Ajaero, was a rebuttal of claims that the minister proposed N105,000 as minimum wage to the president.
The presidency also said the amount published by some online platforms as the new minimum wage was untrue.
Even the minister of state for labour and employment, Hon Nkeiruka Onyejeocha, who attended yesterday’s government-labour meeting, declined to tell journalists what transpired at the parley.
The minister, a member of the Tripartite Wage Negotiating Team, dodged questions put to her during a chat with journalists.
Her response to one of the questions was: “Why are you asking what is unnecessary?” (referring to the figure submitted to the president).
Pressed further, she said, “Wait for the conclusion of our negotiations.”
In his report, Edu presented President Bola Tinubu with the projected cost implications of implementing a new national minimum wage.
The submission came just two days after Tinubu issued a 48-hour directive to Edun to present a proposed new minimum wage figure and analysis of the associated costs.
The finance minister’s report outlines several potential new minimum wage levels along with the anticipated fiscal impacts on the federal budget of each option.
In his reaction to the rumoured N105,000 rate, the special adviser to the president on information and strategy, Bayo Onanuga, said there was no truth in it.
Onanuga refuted the claims in a post on his X handle yesterday.
He wrote: “The honourable minister of finance and coordinating minister of the economy, Wale Edun, has not proposed N105,000 minimum wage. The contrary story being disseminated is false.”
LEADERSHIP Friday recalls that the federal government and the Organised Private Sector had presented N60,000 as the new minimum wage, but organised labour rejected it.
Consequently, on Monday, members of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) embarked on an indefinite nationwide strike to press home their demands for a new national minimum wage and a reversal of the recent electricity tariff hike. This development paralysed activities in both public and private sectors across the country.
The next day the organised labour and the federal government reached a resolution to further engage daily for the next one week at the level of the Tripartite Committee on National Minimum Wage until a final agreement is reached.
This came after the federal government assured the Labour leaders that President Tinubu was committed to paying a new monthly minimum wage above the initial offer of N60,000.
North Central Council Flays NLC, TUC Over High Wage Demand
Meanwhile, the North Central Citizens Council (NCCC) has strongly condemned the reckless agitation of the Nigeria Labour Congress (NLC) and her counterpart, the Trade Union Congress (TUC) for an unreasonable increase in the minimum wage of Nigerian workers.
The NCCC, in a statement by the coordinator, Comrade Mohammed Eneji, termed the efforts by the labour unions in forcing the federal government to succumb to their terms in the negotiation process as inhuman and selfish as this will have an adverse effect on the common man who does not earn salary.
It said if the minimum wage of workers is jacked up without considering the adverse effect it will have on the ordinary citizens of the country, especially those living in the rural areas, then the effort will be counterproductive and useless.
It said if many state governors are still battling to pay the N30,000 minimum wage, “how then do we think that the governments both at state and local government levels will be able to pay the minimum wage of 60,000 and above?”
It said the labour movement is obviously not putting Nigeria and Nigerians first in this process of the negotiation and, as such, NCCC demands that the labour leadership reviews and considers the plight of the larger percentage of Nigerians who are not under the payroll of the government, nor the private sector, as this percentage of Nigerians constitutes the largest population of workforce in Nigeria compared to those under government employ who are less than 1% of the entire Nigerian population.
“We also demand that the Labour be flexible by looking at the bigger picture as this demand of theirs will further heighten the inflation rate in the country and also increase the unemployment rate, for as a result of the increase in the minimum wage, many multinationals and government agencies at state level may result in downsizing the personnel on their payroll due to inability to pay the new wage.”
Meanwhile, the chairman of the Progressive Governors Forum, Hope Uzodimma, has said the negotiation between government and organised private sector is not all about Nigerian workers, but also the sovereignty of the country.
Uzodimma said at the end of the day, both parties would come to an agreeable terms that would be in the overall interest of everyone.
The Peoples Democratic Party (PDP) has asked the Inspector General of Police to immediately comply with a Court order for the arrest and presentation of former Adamawa State Resident Electoral Commissioner (REC), Mallam Hudu Yunusa Ari, for prosecution.
The party said the delay in the prompt and diligent prosecution of Ari for his alleged criminal conduct during the governorship election in Adamawa State in 2023 constitutes a clear and present danger to democracy and the Rule of Law.
The national publicity secretary of PDP, Hon Debo Ologungaba, at a press conference, recalled that Ari had “brazenly attempted to subvert our nation’s constitutional democratic rule by trying to install an illegal government in Adamawa State in violation of Section 1(2) of the Constitution of the Federal Republic Nigeria, 1999 (as amended).”
He also recounted that Ari, on Sunday April 16, 2023 “attempted to override the will of the people of Adamawa State in the Saturday April 15, 2023 election by illegally declaring the candidate of the defeated All Progressives Congress (APC) as winner while collation of results was on-going.”
Ologungaba alleged that Ari’s action amounted to a “civilian coup” which tried to undermine the nation’s sovereignty, triggered a serious crisis in Adamawa State and threatened national peace and security.”
The PDP spokesman said Ari has been on the run, since his removal by the Independent National Electoral Commission (INEC) and the declaration of Governor Ahmed Fintiri at the end of collation as the lawful and duly elected Governor of Adamawa State.
Says FX reforms already bearing fruit
Governor, Central Bank of Nigeria, CBN, Mr. Olawale Cardoso said the apex bank will continue to implement bold reforms that makes the economy works for everyone.
He spoke at the 2024 Annual Vanguard Economic Discourse with the theme: “Reform in an era of Global Economic Uncertainty: Whither Nigeria”, in Lagos.
According to Cardoso, the recent measures introduced by the CBN to reform are already bearing fruit.
He said: “The theme, Reforms in the Era of Global Economic Uncertainties: Whither Nigeria, embodies for me the tough challenges and the trade-offs that policymakers worldwide are having to make or are having to navigate in response to the terrible headwinds and economic turbulence we all face.
In this era that has been aptly captured as a vocal era, which is the era of volatility, uncertainty, is characterized by choppiness of the headwinds that are dreaming by the unending stream of shocks in the global and the regional sphere.
Global Uncertainty
This has led to what we tag today as an elevated level of global uncertainty. It is true.
There is an index called the World Uncertainty Index that measures how uncertain the world is today. And the last report of that index says that, and I like the way it summarizes it, so let me read it for you. It says, the shocks that have shaken the global economy in recent years have introduced a new normal for turbulence.
These episodes, the turbulence driven in some cases by political fragmentation between countries, these episodes also lifted uncertainty to exceptionally high levels, which in turn caused economic growth. And I think that’s the part that we are particularly interested in today. The uncertainties that we are seeing globally are having a significant impact on the economic growth and economic outcomes.
On its part, the IMF said recently that we are expecting a growth rate of about 3.2% globally. However, it was true to mention that there are clear risks to the achievement of this economic growth level, and it names those risks as including tight financial conditions, disruptions to global supply chains, geopolitical tension and economic fragmentations.
The economic market, or the financial market tightening that we have seen globally has been as a result of monetary authorities taking steps to rein in inflation. And as the market is tighten, that has had impact on developing the economy like ours because we have seen flights of investment leaving developing economy back to safety as they worry about risk and uncertainties.
Energy and financial markets as well as world trade foods have also been impacted significantly by conflicts especially the crisis in the Middle East and the conflict between Russia and Ukraine which we have seen impacting on trade and other markets. This impact has resulted in a drag on economic growth and has caused significant inflationary pressure.
In addition, we have also seen fragmentation that started during the COVID 19 where governments have resulted more in protectionism to keep more of what they produce to protect themselves.
These kinds of protectionism have created uncertainties in global trade.
Furthermore, the growth in global debt levels especially amongst developing countries that are also struggling to pay or to cover the debt repayment schedule has also created some additional uncertainty in the economic environment.
Domestic challenges
On the domestic front, we have been faced with uncertainty driven by high inflationary pressure, fx for volatility, rising debt burden and slowing economic growth.
The challenge of high inflation in Nigeria is driven largely by food inflation due to the rising cost of transport of farm produce, infrastructure related constraints, and security challenges of food producing areas and exchange rate pass through to domestic prices from imported goods.
All of these have created uncertainty for businesses and for homes.
Another concern that we face is the volatility in the foreign exchange market which over the years have been driven by market distortions and reduced supply of foreign exchange which have created opportunity for speculative activities that have impacted the price and the rate and the value of the naira.
In addition we’ve had concerns or more or less we’ve prioritized as one of the things that we need to do increasing the capacity of the banking system to be able to facilitate the size of transactions that will help us build and establish the one trillion dollar economy that Mr President has envisioned.
Distinguished ladies and gentlemen having identified some of the challenges versus the abundant human resources which is typified by the great talents and intellectual capacity that I see across the room this morning and the natural resources in our land we certainly deserve better outcomes than the current economic realities that we find ourselves in.
In responding to these uncertainties and indeed to any kind of uncertainties, the need for appropriate focus and unwavering reforms cannot be over emphasized
As the Governor of the Central Bank of Nigeria, I remain committed to reposition the bank to deliver meaningful data-driven and sustainable solutions with clear positive impact on the livelihood of all Nigerians.
However, addressing these challenges requires the concerted effort of all stakeholders, especially the monetary and fiscal authorities working in harmony.
I therefore wish to acknowledge the contribution of Vanguard Newspaper in organizing these very important summits as a platform for collaboration and synergy in the march towards our common goal of a larger and more resilient economy.
When I was being ushered in, I had the opportunity to greet the publisher and his adorable wife and I was want to whisper to them a big thank you for putting this together because we hope that at the end of this summit, we’ll be able to harvest many new and germane ideas that we would mix with available data to move our country forward.
Like you all know, we are always on the lookout for new ideas, for new collaboration, for new ways to add value to our economy, and to build our economy and make it work for all of us.
On our part, my team and I in the Central Bank of Nigeria are determined to continue to implement bold reforms to make the economy work for all Nigerians.
Monetary policy
We have embarked on tightening the bank’s monetary policy to address inflationary pressure in the economy and believe that the results will become evident in the near term.
Luckily, we are already seeing deceleration in inflation, evidenced by a decline in the month-on-month growth in the headline and food inflation rates, based on our March inflation numbers.
We remain committed to use all the Autonomous Monetary Policy tools available to us to address inflation.
FX measures
We have also embarked on major reforms to liberalize the foreign exchange market, which has enhanced transparency, reduced arbitrage opportunity, promoted stability, and improved liquidity in the market.
The settlement of all valid FX forwards, which was one of my commitments when I came as a Governor of the Central Bank of Nigeria, has also improved the confidence of stakeholders. We are already seeing the results of this reform in the growth of FX flows into the country.
In fact, the FX flows into the country in Q1 of 2024 was 136% of the total inflows that we had in the whole of 2023. I think that deserves a round of applause.
In addition, we are working to address the challenges in the BDC segment. To this end, we have developed and revised regulatory and supervisory guidelines for BDCs operation in Nigeria. This is aimed at ensuring that BDCs play the right role in the foreign exchange market.
In addition, we have also revoked the license of BDCs who have been involved in unwholesome practices.
Also, we continue to be focused on increasing the flows from diaspora remittances into the economy through official channels. We are working to improve liquidity in the foreign exchange market. We are working closely with key stakeholders in this segment. And recently, to push this forward, we licensed 14 new IMTOs, which are international money transfer operators to enhance competition, efficiency, and transparency in the foreign exchange market.
We continue to be committed to a transparent and functional FX market where price discovery is based on market-driven frameworks and we are confident that this will lead to long-term stability of the Naira, which I know is what all of us see.
Let us be able to know exactly what the rate of the naira is at any given time.
Banking recapitalization
Furthermore, the bank is in the process of implementing far reaching reforms in the in the banking system which includes increasing the capital requirement for banks to improve financial system stability and enhance the capacity of banks to support the one trillion economy envisioned by Mr. President.
Measures are also being taken to ensure good ethical and professional practices in the banks by enforcing compliance with enhanced corporate governance guidelines.
Distinguished participants, I am pleased to note that some of our bold actions are already bearing fruit, evidenced by the improvement in Nigerian foreign credit rating and the commendations from the World Bank and other multilateral institutions.
We are confident that the prudent implementation of our reform program will restore the economy to the path of inclusive and accelerated economic growth in the near term.
I would like to acknowledge that much more work is required to address our economic challenges. But let me assure you that the Central Bank of Nigeria is committed to and will continue to enhance its efforts to deliver on its mandate of promoting monetary and price stability in Nigeria.
The CBN will continue to strengthen its collaboration with other regulators as well as with fiscal authorities in order to deliver sustained and inclusive economic growth. In doing this, the Central Bank will pay attention to all the deliberations.