News

FG’s policies crippling businesses — NECA, MAN, NACCIMA

AFOLABI

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

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

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

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

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

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

Our concerns

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

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

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

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

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

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

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

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

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

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

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

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

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

MAN blames forex, power, inflation

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

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

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

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

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

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

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

NACCIMA seeks improved public finance management

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

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

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

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

NLC threatens to shut Nigeria

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Court Rejects Emefiele’s Request to Travel Outside Nigeria for Medical Checkup

AFOLABI

A request by former governor of the Central Bank of Nigeria, (CBN), Godwin Emefiele requesting access to his international passport to enable him to travel to the United Kingdom for a follow-up medical check-up has been rejected.

The request was rejected by the Federal Capital Territory High Court.

Recall that the Economic and Financial Crimes Commission (EFCC) had on March 2024, told the Federal Capital Territory High Court, that Emefiele and nine other officials at the apex bank were involved in allegedly approving multi-billion contracts to his wife, Margaret, brother-in-law and staff of the apex bank, Sa`adatu Ramallan Yaro.

The EFCC’s legal team equally opposed Emefiele’s application to travel out.

Emefiele was arraigned before Justice Hamza Muazu of the FCT High Court over the alleged illegal award of contracts.

It alleged that Sa`adatu Ramallan Yaro, a director at April 1616 Investment Ltd, was awarded several contracts by the CBN under the purview of Emefiele, for the supply of over 45 Toyota Hilux Vehicles ranging from N854, 700,000, to N99,900,000.

Emefiele’s wife, Margaret, and his brother-in-law were directors and major shareholders at Architecom Nigeria Ltd, a company that was said to have been contracted by the apex bank to renovate the CBN governor’s residence in Ikoyi, Lagos state.

Emefiele denied the allegations and subsequently applied to the court for leave to travel to the UK from July 28 and return on September 10, 2024.

But EFCC’s counsel, Muhammad Abbas Omeiza, contended that there was no medical report before the court showing that Emefiele was plagued by an ailment.

He insisted that the embattled governor is facing cases at three different courts.

Omeiza said, “The defendant has co-conspirators all over the world. One Anita and Tony are all aides of the defendant who are currently in the UK. The defendant might be tempted to jump bail because he is standing trial in three different courts.”

But Emefiele’s legal team urged the court to dismiss EFCC’s arguments, assuring the court that their client would return to attend the trial.

His lawyers argued that his sureties are aware of the UK hospital’s invitation regarding the need to come over for a medical check-up.

Justice Mu’azu then fixed today for ruling on Emefiele’s application.

Ruling on the application on Tuesday, Justice Muazu said it is a fact that the defendant is presumed innocent pending the determination of his case.

He said, however, that Emefiele did not provide any letter from the UK hospital showing his medical conditions among other things.

“As it stands, I cannot exercise my discretion to allow the applicant travel outside Nigeria, ” the judge held.

The judge also observed that Emefiele is facing criminal charges in three different courts.

“The application fails and is hereby dismissed, ” the judge ruled.

Emefiele was arraigned on a 20-count charge bordering on alleged corrupt practices and forgery instituted by EFCC.

The former governor had pleaded not guilty to the charges and trial commenced.

On February 13, 2024, a former Secretary to the Government of the Federation, Boss Mustapha, told the court that his principal, Buhari, did not approve $6.2 million as payment for election observers.

At previous proceedings, a document analyst from the EFCC further confirmed the forgery of Buhari, Mustapha’s signatures.

The embattled governor is facing criminal proceedings in two other trial courts in Lagos and Abuja.

Port Harcourt refinery will commence production next month - Kyari

AFOLABI

The Nigerian National Petroleum Company (NNPC) Limited says the Port Harcourt refinery will begin operations in early August.

Mele Kyari, NNPC’s group chief executive officer (GCEO), said the operationalisation of the refinery is one of the emerging indicators in the energy and gas sector that Nigeria would become a net exporter of petroleum products by December.

Kyari spoke on Monday at the national assembly when economic stakeholders appeared before the senate committee on finance led by Sani Musa, a lawmaker.

The NNPC GCEO said in a few months time, oil production level for the country would hit 2 million barrels per day (bpd) as all enablement towards this has already been put in place.

The oil and gas industry, according to Kyari, is very critical in bringing a turnaround in the current economic situation and “we understand the importance of this”.

“We have already seen growth in our oil and gas production because of certain actions that Mr. President personally took, and also the very mere truth that we have also declared a war on production activities, and this is yielding the required results,” he said.

“The combination of these two has now seen us restoring production in our country, and we believe that, as the Honorable minister has said, we will soon hit the target of 2 million barrels oil production per day.

“Specific to NNPC refineries, we have spoken to a number of your committees, that it is impossible to have the Kaduna refinery come to operation before December, it will get to December, both Warri and Kaduna; but that of Portharcourt will commence production early August this year.”

Kyari had said the refinery would begin production by the end of March, but this has not happened.

TheCable had reported that president recently expressed concerns over the NNPC’s failure to deliver critical projects including the Port Harcourt refinery.

But Heineken Lokpobiri, minister of state for petroleum resources (oil), said such projects often take time, adding that the refinery is at its final rehabilitation stage.

Binance executive, Gambaryan, appears in court on wheelchair

AFOLABI

The detained Binance Holdings Limited’s executive, Tigran Gambaryan, was on Tuesday, whisked into Federal High Court in Abuja in a wheelchair.

Gambaryan, who was dressed in a black T-shirt with blue jeans trousers, is facing a money laundering charge alongside the cryptocurrency firm.

When the matter was called, Gambaryan stood up from the wheelchair and walked slowly into the dock.

The Economic and Financial Crimes Commission’s lawyer, Ogechi Ujam, told the court that though the matter was scheduled for the continuation of trial, the commission’s lead counsel, Ekele Iheanacho was not in court.

Ujam prayed the court to stand down the matter to enable Iheanacho to conduct the trial.

Babatunde Fagbohunlu, SAN, who appeared for Binance (1st defendant) and Mark Mordi, SAN, who represented Gambaryan, did not oppose the application.

Justice Emeka Nwite stepped down the matter until noon.

The News Agency of Nigeria reports that Justice Nwite had, on July 5, ordered the management of the Nigerian Correctional Service to release the medical certificate of Gambaryan on or before July 16.

The judge gave the order following an application by Gambaryan’s lawyer, Mordi.

Mordi had prayed the court to summon the medical doctor at the health facility of Kuje Correctional Centre, to explain why he had allegedly refused to make available his client’s medical report despite an earlier court order.

NAN reports that Gambaryan had, on May 23, collapsed in the open court over alleged ill-health.

The defence law firm, Aluko & Oyebode, had also, on May 27, raised alarms that the cryptocurrency firm’s executive might die in Kuje Correctional Centre over his alleged deteriorating health.

NAN

Northern Politicians Are Responsible For The Region’s Poverty – Gov Sani

AFOLABI

Governor of Kaduna State, Uba Sani, has said Northern politicians, past and present, are responsible for poverty in the region.

Senator Uba Sani said the number of unbanked northerners, out-of-school children and those living in poverty is scary.

He said the cause of insecurity and crisis in the region affecting Nigeria was because the northern politicians in the last 15 years put more northerners below the poverty line.

He said his administration had to open accounts for 2.1 million Kaduna residents to be able to support them. He added that throughout the North, 65 to 70 percent of northerners are financially excluded because they are unbanked.

“In the last six months, we opened accounts for 2.1 million in banks. That is why we can support them. In many parts of northern Nigeria, in some states, about 65 northerners are unbanked, that is why we are having crisis of poverty, crisis of insecurity.”

Governor Sani said this on Tuesday while speaking on NTA Good Morning programme.

“In North, we have millions of out-of-school children. Nigeria has the highest number of out-of-school children in the whole world, but 7o percent of that number are domiciled in North, for me that is scary.

He continued, “That is why when people are complaining about insecurity, about poverty, I ask everyone, all of us who are in who politics, who are in government, even some who are in private sector in Northern Nigeria, we need to look at ourselves in the mirror and tell ourselves the truth, all of us must be blamed.”

“In the last 15 years, the level of poverty in northern Nigeria is very scary. In 15 years ago, if you look at the poverty index, only about 35 percent of our people are below the poverty line.

“Today, 15 years, in some states about 70 states of our people are below the poverty line. so I believe all the politicians in northern Nigeria, whether you are former president, former vice president, whether you are a senator, a governor, a minister in the last 15 years you must be blamed for that.

“So we need to sit down and stop blaming everyone and blame ourselves and we need to find solution, that is unacceptable and we should also stop misinforming our people this time. we need to find solution,” he added.

The Kaduna State governor said his administration would ensure the resettlement of victims of banditry was done transparently. He said his administration had to include community leaders and affected families in the process to ensure transparency.

Sunday Igboho Issues Fresh Eviction Notice To Fulani Herders In Southwest

AFOLABI

A prominent Yoruba Nation agitator, Sunday Adeyemo, known as Igboho, has reportedly issued a new eviction notice targeting notorious herders involved in kidnapping and robbery in the South West zone.

This latest directive was communicated through an audio message by his spokesperson, Olayomi Koiki, although its authenticity remains unconfirmed.

The call to action follows renewed hostilities in the Oke Ogun area of Oyo State, where locals have suffered increased violence, including kidnappings and killings by the herders.

According to a resident speaking to Vanguard, these criminal activities have also hindered farmers from accessing their fields, exacerbating tensions in the region.

Igboho previously warned these herders to vacate the area a few weeks ago and has suggested the establishment of local security outfits to protect farmers from ongoing intimidation and violence.

In the audio message, Koiki spoke in Yoruba, saying, “Today is the 15th of July, 2024. This breaking news is issued around 6pm. All Fulani people living in Oke Ogun, living inside the bushes there, who are kidnappers, that are killing the people, are immediately ordered to leave now. Sunday Igboho said he would continue his work at Oke-Ogun, in Kishi, and all communities that made up of Oke-Ogun. He said he would touch all those places remaining.

“All Fulanis should leave the bush in Oke-Ogun. The forest does not belong to you. The land belongs to us. He added that he is also waiting for the Obas in other parts of Yoruba land to speak up if they are witnessing attacks from Fulani people in their domains.”

As claimed in the audio, Igboho made it clear that he is not fighting any governor, but he’s ready to show the herders troubling his people out of the zone.

He added that his men would comb all the forests presently occupied by herders across the Yoruba lands after getting permission from kings in Ondo, Ogun, Ekiti, and Osun states.

He said his men “are currently working on how to storm the forest in Oke Ogun land in Oyo State and warn all Fulani living there to vacate immediately.”

LG autonomy: Makinde sets up committee to review Supreme Court judgement

AFOLABI

Governor Seyi Makinde of Oyo State, on Monday constituted a special technical and legal committee to review the recent supreme court judgement on local government financial autonomy.

The Attorney-General and commissioner for justice, Barrister Abiodun Aikomo in company of the commissioner for local government and chieftaincy matters, Hon Ademola Ojo disclosed this at a press briefing shortly after a consultative/advisory meeting.

Governor Seyi Makinde, had earlier before the close door meeting, berated the supreme court judgement and strategies by the federal government to usurp undue authority over the state and local government administration, thereby causing tension within that nation’s polity rather than focusing on other germane issues affecting the nation’s economy.

At the press briefing, Hon Ademola Ojo assured that Governor Seyi Makinde remained committed to the people’s well being and would protect and safeguard the interest of all stakeholders

Barrister Aikomo who explained that the terms of references which specifically hinged on review of the supreme court judgement, identifying challenges and proffering recommendations that would result in implementation plan for the benefit of all stakeholders, noted that the committee had been given a duration of 4 – 6 weeks.

The attendees at the meeting were drawn from various relevant groups and other stakeholders in the state, among whom were the leadership of the Nigeria Labour Congress, NLC, Trade Union Congress, TUC, Nigeria Union of Local Government Employees, NULGE, and Nigeria Union of Pensioners, NUP and representative from the state house of assembly.

Kano Assembly Passes Bill To Create Second Class Emirates

AFOLABI

The Kano State House of Assembly has passed a bill into law for the creation of second class Emirates in the state.

The house gave expeditious hearing to the bill on Tuesday when it resumed plenary.

It scaled through second and third reading after initiation promoting the deputy speaker, Mr Muhammad Bello Butubutu, to move for adoption and passage.

The Speaker of the House, Mr Jibril Ismail Falgore, who presided over the plenary hailed the bill.

The new second-class emirates to be created include:

Rano Emirate: Rano- Bunkure, Kibiya
Karaye Emirate: Karaye- Rogo
Gaya Emirate: Gaya- Ajingi, Albasu

Osun Governor, Adeleke’s Phone Hacked

Admin

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

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

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

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

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

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

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

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

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

[Naijanews]

FG Releases 2024 Common Entrance Results Into Unity Colleges

Admin

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

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

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

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

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

[DailyTrust]

More...

Kano State Govt files fresh charge against Ganduje

Admin

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

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

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

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

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

No date has been fixed for the arraignment.

[DailyPost]

Another Rep member Adams reportedly dies

Admin

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

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

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

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

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

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

Controversy as Manufacturers reject NBS inflation figure

Admin

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

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

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

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

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

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

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

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

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

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

Monetary policy is failing- Adonri

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Vanguard]

FG repatriates 190 Nigerians from UAE

Admin

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

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

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

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

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

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

(NAN)