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The Oyo State Government has suspended the Onido of Ido, Oba Gbolagade Muritala Babalola, over alleged links to the activities of illegal miners in the Ido local government area of the state.
The government, in a letter dated February 2, 2024, and signed by the Commissioner for Local Government and Chieftaincy Matters, Honourable Olusegun Olayiwola, indicated that Governor ‘Seyi Makinde approved the suspension on February 1, 2024.
The letter directed Oba Babalola to hand over all government properties in his possession to the chairman of Ido Local Government.
It read: “I wish to inform you that His Excellency, the Executive Governor of Oyo State of Nigeria, in exercise of the powers conferred on him by Sub-section 1&2 of Section 26 of the Chiefs Law, Cap. 28 Vol. I, Laws of Oyo State of Nigeria 2000, and by virtue of all other enabling powers in that regard, have approved your suspension as the Onido of Ido in the area of authority of Ido Local Government Area of Oyo State.”
A government source said the decision followed intelligence reports that the suspended Onido was aiding and abetting the activities of illegal miners and other criminals.
The source held that the state government, drawing from the circumstances behind the Bodija explosion, was going all out to deal with illegalities that had the tendency to harm the state.
In light of this, the official stressed that the state government will not hesitate to hit hard and bring to justice anyone, regardless of their status or position, who contravenes the laws of the land.
On the issue of the possibility of Onido being dethroned when the investigation is conclusive, the government source said, “All options are on the table.”
There are strong indications that the Federal Government is mulling a policy that will result in the conversion of foreign currencies in domiciliary accounts of citizens to naira to stabilise the national currency, which earlier this week recorded its worst performance in history.
If it goes ahead with the plan, the government will order the conversion of foreign currencies sitting idly in individuals’ and corporate organisations’ domiciliary accounts to naira at a rate to be determined by the Central Bank of Nigeria.
According to top Presidency sources, the move is meant to stabilise the naira, which recorded its biggest fall in the official Nigerian Foreign Exchange Market on Monday, depreciating by 24 per cent to close at N1,348 per dollar.
One of the Presidency sources told Saturday PUNCH that the problem of forex scarcity and the naira fall was an elite issue, adding that the Federal Government would not fold its arms and continue to watch some individuals hoarding foreign currencies at the expense of the naira.
The source said, “The problem of dollar scarcity is an elite problem. You will notice that this happens at the end and the beginning of a new month. That is when the exchange rate goes up. Invariably, that is when governors collect FAAC (Federal Account Allocation Committee) allocations. Whatever the connection, we don’t know.
“There is no country in the world where people open domiciliary accounts to keep dollars. It happens only in Nigeria. This must be addressed. This is not only a political issue, but it is also an economic issue that must be addressed. Genuine demands driven by economic activities can’t bring this huge pressure. By June, dollar demands are supposed to have gone down when Dangote Refinery must have started.
“Nobody should keep a domiciliary account if they do not have legitimate foreign currency earnings like salary or getting foreign exchange revenue, either as an individual or as a company. Even if you have foreign exchange inflow as a result of your work, immediately after the money lands in your account, the banks should automatically change it to the local currency and your local currency account will be credited with the equivalent value.
“In Nigeria today, there are over $30bn in domiciliary accounts of individuals. It is in the CBN account. The records are there. It is not right. These are issues we will have to deal with. In other countries, dollars are not meant to stay in peoples’ accounts.”
If implemented, this will be a major policy shift by the President Bola Tinubu administration, which said in September 2023that it was looking to attract funds held in domiciliary accounts and those held by Nigerians abroad into massive investments in various sectors of the economy.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, had disclosed this at a press briefing in Abuja.
According to him, Nigerians have huge funds in domiciliary accounts and hold large sums abroad, which can be deployed to rejuvenate the economy, adding that his team was working to provide the needed environment to attract such funds into the local economy.
Edun said Nigerians in the Diaspora were also expected to play a significant role in the fresh move to take the economy to a position of high growth through productivity and efficient management of resources.
The minister had said, “What we can see is that really, there are quite substantial sources of foreign exchange in Nigeria.
“There is a lot of cash outside the system, which if brought into the system, increases the money supply of dollars, increases in reserves and so forth.
“There are funds in domiciliary accounts, which if you give people the incentives they will utilise for investment in Nigeria.
“Nigerians in Nigeria have huge holdings of foreign currencies in banks and financial institutions abroad.
“We need to provide the environment that brings those funds home to choose to invest in the Nigerian economy rather than foreign economies, which is what they are doing right now.
“If you place money in a bank abroad, you’re investing in a foreign economy. Finally, we also have a huge source of funds from the Diaspora.
“Nigerians living and working abroad, who of course, have their families here and who are interested in keeping a presence here; we have to encourage them to be willing to save in Nigeria, perhaps by improving payment mechanisms; so we have to do a lot to aim at them.
“There is plenty of hope and it is our determination to put in place the kind of structures and incentive framework that brings Nigeria money abroad and even Nigeria money outside the system into the financial and economic system to work, to create jobs for Nigerians.”
However, a branch manager of a Tier-1 bank in Lagos, who spoke on condition of anonymity because he was not authorised to speak on the matter, told Saturday PUNCH, “It’s too early to talk about compliance with the CBN directive by banks. Maybe we will have a clearer direction by next week when we should get the true picture. I don’t have information about my bank’s compliance at the moment; it’s our treasury people who will have the information, but at my branch today (Friday), customers came to deposit dollars into their domiciliary accounts unlike the situation before now.
“I personally think it will be tough for the government to put a lien on money in domiciliary accounts. At what rate will such funds be converted to naira? The exchange rate is gradually coming down as a result of the CBN directive.”
Meanwhile, the Minister of Finance and Coordinating Minister for the Economy, Wale Edun; Chairman of the Economic and Financial Crimes Commission, Ola Olukoyede; and the Governor of the Central Bank of Nigeria, Olayemi Cardoso, met in Abuja on Friday to discuss how to enhance the efficiency of the financial system and also stabilise the naira.
The official X of the Federal Ministry of Finance posted, “The meeting highlighted our continuous efforts in aligning monetary and fiscal policies, underscored by a commitment to the rule of law.”
The EFCC chairman was quoted to have “reaffirmed the commission’s support for these initiatives, emphasising his dedication to enhancing (the) integrity of financial regulations.”
Banks, fintech barred from IMTO services
The Central Bank of Nigeria has banned banks and fintechs from International Money Transfer Operations.
In its ‘Guidelines on International Money Transfer Services in Nigeria,’ the apex bank said, “All banks are prohibited from operating International Money Transfer services but can act as agents.
“Also, financial technology companies are not allowed to obtain approval for IMTO.
The new guidelines by the CBN are meant to guide the IMTOs in conducting money remittances in compliance with the regulatory framework established by the CBN.”
This new guideline has parked conversations about the fate of fintechs like Flutterwave, Interswitch, Paga, and others, which have IMTO licences from the CBN.
The apex bank also increased the minimum share capital requirement for IMTO operators to $1m. Listing requirement to be an operator the bank stated, “Any IMTO intending to operate in Nigeria shall submit its application to the Director, Trade and Exchange Department with the following documents: A non-refundable application fee of N10,000,000 or such other amount that the bank may specify from time to time; payable to the CBN through electronic transfer or bank draft.
“Approval to operate in other jurisdictions or agency agreements (for all IMTOs). Minimum share capital of $1m for foreign IMTOs and the equivalent for indigenous IMTOs.”
Naira’s fall against the dollar has slowed in the past three days, with the national currency closing the week at N1,435.53/$ on Friday after falling to an all-time high of N1,482.57 /$ on Tuesday at the official window.
This is a 3.17 per cent appreciation for the naira, which started the week badly. On Monday, the naira began its worst week of trading on the official window at N1,348/$ following the review of exchange rates calculation by the FMDQ Security Exchange.
In a notice to the market, FMDQ noted, “This revision aims to address recent fluctuations and challenges encountered in the Nigerian Foreign Exchange (‘FX’) Market.”
It explained that the new measures would ensure that NAFEX and NAFEM rates accurately reflect market conditions, adding, “These revisions are focused on enhancing the accuracy and reliability of the NAFEX and NAFEM rates’ determination process, with a focus on data availability and integrity involving a rigorous data validation process, including tolerance checks, which shall be applied by FMDQ Exchange, subject to internal policies and procedures.”
Also, the CBN in the week asked authorised dealers in the financial market to be transparent.
It noted that “…deliberate attempts to create price distortions by reporting false transaction details amounts to market manipulation, which will not be tolerated and henceforth face sanctions.”
Since Monday, the gap between the official market and the parallel market has reduced drastically. On Friday, the naira was N1,420/$ at the parallel market with Bureau De Change operators noting that there was still demand for the dollar at the black market.
One operator, who did not want his name in print, said, “I will buy from you at N1,400/$ and sell to you at N1,420/$.”
Another operator in Abuja, Malam Ibrahim, explained while noting that his rate was around N1,470/$, that rich Nigerians were rushing to the market to buy dollars and hoard for profit.
He said, “If the government wants to help the masses in this country, it knows the right things to do. Even after the directive given to banks by the CBN to release more dollars, nothing has changed.
“The problem is that even if you go to any bank, you won’t get anything. If you ask for $10,000, you have to pay bribes before they will release it.
“I can tell you that the naira will still fall because people are still buying and hoarding more dollars. I bought a dollar today for N1,470, how much do you think I will sell it or do you think I will sell at a loss? I am very sure that by Monday or Tuesday, the naira will start crashing again.
“Remember that we are only frontiers for people who only give a portion of profit. Nobody produces dollars in the country; the only source is from the government through the CBN. I can tell you that our politicians and very important personalities also have their Bureau de Change operations so that they can keep their dollars away from the banks.”
He added, “It is only the rich who trade in dollars; where will a poor man get dollars to put in his account? These people know the business well. They follow the trends of the market even more than journalists. They come in their cars to buy $5,000 and then return in a few hours to sell it so that they can monitor the market. We also have those whose children school abroad as well as international travellers, who need dollars abroad.
“Yesterday (Thursday), the naira gained but people are still rushing here to buy dollars and keep today (Friday). So, how do you think the country will get better? Some people just prefer to do this in their selfish interest rather than for the overall gain of the country.”
However, the President of the Association of Bureau De Change of Nigeria, Aminu Gwadebe, said Nigerians had stopped buying dollars to hoard because of the CBN’s policy direction.
He told Saturday PUNCH, “It used to be the rational behaviour, but there has been some relaxation in the demand pressures. Before, people were buying because of a lack of confidence in the CBN.”
To boost liquidity in the foreign exchange market, the apex bank on Wednesday ordered Deposit Money Banks to sell their excess dollar stock by February 1, 2024. Some bank officials stated that the directive boosted dollar supply a bit in the foreign exchange market this week.
The CBN, which disclosed this in a new circular released on Wednesday, also warned lenders against hoarding excess foreign currencies for profit.
According to officials, the central bank believes some commercial banks hold long-term foreign exchange positions to enable them to profit from the volatile movements of exchange rates.
The new circular introduces a set of guidelines aimed at reducing the risks associated with these practices.
In the circular titled, ‘Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks’, the CBN raised concerns over the growing trend of banks holding large foreign currency positions.
The circular came barely 48 hours after the CBN released a circular warning banks and FX dealers against reporting false exchange rates, among others.
The Ministry of Steel Development, under the Federal Government, is proceeding with the concession process for Ajaokuta Steel Company, aiming to expedite its revival.
Minister Shuaibu Audu revealed plans for a three-year ultimatum to initiate steel operations, aligning with President Bola Tinubu’s directive.
This follows a previous legal restraint, and despite opposition in 2022, the Federal Executive Council approved the engagement of transaction advisors for the concession.
Audu emphasized that the concession is integral to a three-year roadmap addressing the steel company’s dormancy and reducing the nation’s heavy reliance on steel imports.
Lagos inland waterways case: Oba elegushi clears air on supreme court ruling
He said, “About the three-year plan for Ajoakuta Steel and whether we should assume that it would start working, I think the short answer is yes.
“The three-year plan is to enable us to start production of some form of steel in the next three years, so we should be able to get the light steel mill working, the engineering workshop working, we should be able to get some of the lines plants working and operating at near full capacity or full capacity.
“Part of what we would also do within that three years is to concession it to a concessionaire that has the required skill set to be able to have liquid steel production coming out of blast points. Ideally, in a perfect scenario, that’s what we would like.
“And I suspect that the concession agreement to be worthwhile for the concessionaire would have to be a minimum of let’s say, 10 or 30 years agreement where they would be able to recoup their capital.”
According to him, the implementation of the road map which requires an investment of $5bn will create 500, 000 jobs and a possible revenue of $10bn.
Audu added that the ministry is considering all available options with stakeholders to avoid the misdeeds of previous administrations, adding that ongoing litigation have been resolved.
The minister added, “Based on the advice I’ve been provided with and based on some of the data that I’ve seen and the technical analyses that have been done, we would need between $2bn and $5bn to revive this entire Ajaokuta Steel Complex but certain things can be done in piecemeal before we resolve the entire issue with the plant.
“What we plan to do is to restart the Light Steel Mill section, which will cost us about N35 billion for us to be able to produce 50,000 metric tonnes of iron rods. When we achieve all of these, we expect to bring $10bn into the economy and 500,000 direct and indirect jobs for Nigerians. Right now, 90 per cent of our steel demand is imported and we spend in excess of $4bn annually on the importation of steel and we are going to reverse that trend.”
The minister also stated plans to commence the construction of new steel companies through foreign investors from China in order to meet local production demands.
“We have also engaged with foreign investors to start new steel plants in the country. We have met with Chinese investors to look into how to set up a new steel plant in Nigeria and I am sure all of these plans will come to fruition soon.
“Part of what we need to do for this is to identify a new location, would it be a green field location or ground field location that has enough land mass with the needed infrastructure? Ideally, where we intend to get is to have 90 percent local production and 10 percent import,” he said.
Commercial banks in the country are heaving a sigh of relief as the Central Bank of Nigeira (CBN) reversed to its old ways of calculating and deducting cash reserve requirement (CRR), a move that analysts say will see an increase in the loan books of banks.
While the move has been commended and described as one of the best news for banks in recent time, there are still questions that remain unanswered. The CBN had issued a circular titled “Cash Reserve Requirement Framework Implementation Guideline” yesterday to all banks and signed by the acting Director Banking Supervision department, Dr Adetona Adedeji.
According to the circular, the CBN is ceasing daily CRR debits and will be adopting an updated Cash Reserve Requirement (CRR) mechanism that is intended to facilitate banks’ capacity for planning, monitoring, and aligning their records with the CBN.
CRR is a percentage of a bank’s total deposits that it is required to maintain in the form of cash reserves with the central bank. Central bank across the world use it as a monetary policy tool to control the money supply in an economy and influence inflation and liquidity levels.
In Nigeria, the CRR has been set as 32.5 per cent of deposits and the CBN has in the past computed CRR daily and regularly debited trillions of naira from banks’ account but the new circular states that the determination of the segment of deposits subject to sterilization with the CBN as CRR will follow the old process.
Accordingly, it stated that in phase one of the process, the determination will utilize an incremental approach as “the extant ratio (32.5%) will be applied to increases in the banks’ weekly average adjusted deposits.”
This means that after the CRR has been debited, only the increase in the deposits will be sterilized onward. Typically what happened before the rule was changed by the previous CBN leadership was that every two weeks, if the deposit of the bank increased, the CBN will take 32.5 per cent of the increase of as additional CRR. This is the process that the CBN is reverting to.
Also, the circular noted that “CRR levy of 50 per cent of the lending shortfall will be enforced for banks that do not meet the minimum Loan to Deposit Ratio (LDR) as per our correspondence to all banks referenced BSD/DIR/GEN/LAB/12/049 dated September 30, 2019.”
LDR the proportion of a bank’s total loans to its total deposits, and is calculated by dividing the total loans by the total deposits and then multiplying the result by 100 to express it as a percentage. The CBN had set LDR at 65 per cent, thus with the new guideline, the CBN in addition to the CRR, the penalty for not meeting the LDR is 50 per cent of the shortfall of what should have been given out.
Commenting on the latest guideline, President, Nigerian Economic Society, Professor Adeola Adenikinju, a member of the Monetary Policy Committee which had set the previous rule noted that under the previous CBN governor, the dynamic CRR (DCRR) was introduced to compel the banks to lend instead of just buying government fixed income assets or playing in the forex account with surplus cash.
He explained that the DCRR was “designed to compel banks to do more lending and reduce their surplus cash that they could put into the forex market or into fixed income assets. Emefiele introduced the LDR, loan to deposits ratio, which is the minimum rate of deposits that banks must lend. Any bank that failed to meet the LDR, the shortfall is taken away from the bank balances and added to the CRR. Hence, the actual CRR was much higher than the 32.5 per cent.”
To Head of Financial Institutions ratings at Agusto & Co, Ayokunle Olubunmi, “this is one of the best news that the banks can have. The current rate for CRR is 32.5 but what we have seen in the era of the former CBN governor is that they don’t adhere to the rule. The CBN can just wake up and debit you anyhow. There were some banks that had over 50 per cent of their naira deposit sterilized with the CBN.”
Nine months financials of 10 banks for the period ended September 2023 showed that their CRR stood at N13.81 trillion up from N9.56 trillion a year ago, representing a 45.51 percent increase.
Speaking on the LDR, Adenikinju said “the new circular has reduced how much banks could lose to failure to meet the LDR to 50 per cent instead of the entire amount, as was the practice in the past. The new circular would also allow the banks to estimate their CRR and be able to plan more effectively.
“This would also be done weekly instead of daily. It will also now be universal among the banks instead of selective applications in the past. The 50 per cent additional CRR would be equally applied to all the banks that fall below their LDR”
On implications for banks, Olubunmi said it will enable banks to be able to plan adequately “they will be able to know how much the CBN will sterilize and they can plan thier portfolios and their activities. That is what the banks have been complaining of. They don’t even know how the CRR has been deducted. They what to know what we are working with so that we can plan adequately.
“Secondly, we will see a significant increase in the industry loan book because a lot of banks will be working towards avoiding the penalty that comes with not meeting the LDR.” However the circular remains unclear as to whether the CBN will refund excess CRR that has been deducted as well as what it will do in the case where the deposit reduces rather than increase.
Leadership findings reveal that the CBN is yet to refund CRR of some merchant banks after it revised downwards their CRR from 32.5 per cent to 10 per cent.
Following the growing spake of insecurity in the country, a chieftain of the People’s Democratic Party (PDP) and former campaign spokesperson of Atiku Abubakar, Daniel Bwala, has said President Bola Tinubu regrets the anger and frustration expressed by Nigerians.
Bwala made the remark while speaking in a statement issued via his official X handle on Wednesday, January 31.
He assured Nigerians that President Tinubu would do everything possible to address the security and economic challenges confronting the country.
Bwala said the hydra-headed security challenge is a test to Nigerians, but the president would ensure it’s resolved in due time.
He, therefore, charged the citizens to remain resilient and keep faith in the country, stressing that Nigeria is a unique country of resilient people.
He wrote: “Fellow countrymen, keep faith with your country; Nigeria is a unique country of resilient people.
“@officialABAT will do whatever he can to address the myriad of challenges confronting the Nigerian people.
“Your frustration and anger are deeply regretted. But I assure you that the labour of our heroes’ past shall never be in vain.
The hydra-headed security challenge is testing our resolve, but If we stay hopeful and resilient amidst these trying times, we will rise undaunted as a nation.”
The Federal Government through the Central Bank of Nigeria has raised the exchange rate for cargo clearance from N952/$ to N1.356 per dollar.
This is coming weeks after the rate was increased from N783/$ to N952/$.
In November, the exchange rate for cargo clearance was raised from N757 per dollar to N783 per dollar, representing a 3.4 per cent increase, and was later raised from N783/$ to N952/$ in December.
However, it was observed on Friday that the new rate has been reflected on the portal of the Nigeria Customs Service.
According to Punch, a member of the Association of Nigerian Licensed Customs Agents, Remilekun Sikiru, in a chat with the newspaper on Friday, said, “How do we explain this? From N952/$ to N1.4/$ as of Friday morning with about N404 increase? It’s quite unfortunate that the prices of goods and commodities will automatically increase. Importation would further decrease and depreciate, vehicle prices would skyrocket again.
“Since this unification of a thing, the government has refused to look inward and critically into the maritime industry as regards importation and exportation. The sector have been neglected and things are getting worse daily. The question now is, how would freight forwarders and customs brokers agents cope with this new rate?”
Also speaking, an agent, Ben Anya, said that they woke up to the new rate, “which was before now set at N951 per dollar,”
Anya explained that with the latest increase in the exchange rate, the cost of clearing would increase.
“And this would also affect the cost of goods in the market. It would also lead to a drop in importation,” he said.
The Department of State Services, DSS, has cautioned all contending parties in the February 3, 2024 by-elections to shun all acts capable of causing a breakdown of law and order.
The agency enjoined public commentators, social critics and key players in the public space to consider the peace of the country over and above their personal or group interests.
This is even as the Service assured that it will work with the Independent National Electoral Commission, INEC, other sister security and law enforcement agencies and all stakeholders to ensure a hitch-free election.
This was made known in a statement on Friday by Peter Afunanya, the Director, PR & Strategic Communications, DSS National Headquarters, Abuja.
Afunanya assured that the DSS will continue to implement proactive measures to achieve the desired stability in the country.
He further advised those engaging in subversive endeavours or desirous of doing so to desist from such as the Service will not hesitate to ensure that defaulters, no matter how highly placed, face the full weight of the law.
The Central Bank of Nigeria (CBN) has prohibited banks and fintech companies from engaging in international money transfer services.
This directive, outlined in the revised guidelines for International Money Transfer Operators (IMTOs), was officially communicated on January 31, 2024.
The exclusion mentioned in the document pertains to individuals associated with the management, shareholders, and officers of banks.
The document reads: “All banks are prohibited from operating International Money Transfer services but can act as agents.
“Also, Financial Technology Companies are not allowed to obtain approval for IMTO.
“The provisions of BOFIA 2020 on the prohibition of employment of certain persons in banks shall also apply to IMTOS.”
In the previous guidelines issued in 2014, only deposit money banks were prohibited. However, the CBN has extended the ban to fintechs.
N10 Million Application Fee
The apex bank also increased the application fee for IMTO licence from N500,000 in 2014 to N10 million in the revised guidelines. This is an increase of about 1,900% in about 10 years.
The document noted that any IMTO intending to operate in Nigeria shall submit its application to the Director, Trade and Exchange Department with the following documents, among others:
“A non-refundable application fee of N10,000,000.00 (Ten Million Naira only) or such other amount that the Bank may specify from time to time; payable to the CBN through electronic transfer or bank draft.
“Approval to operate in other jurisdictions or agency agreement (for all IMTOs).
“Evidence of tax clearance and incorporation documents in Nigeria (for indigenous IMTOS) to include Memorandum and Articles of Association (Certified True Copy), of which the primary object clause shall indicate provision of money transfer services.”
There is also an annual renewal at a fee of N10 million naira, or any amount that the apex bank may specify from time to time; payable to the CBN through electronic transfer or bank draft on or before 31st January of the year.
It was also noted that the renewal of IMTO approval shall be done within the first quarter of every year, adding that where an IMTO fails to avail its agent bank of a copy of CBN renewal of its IMTO approval for that year within the first quarter of the year, the bank should cease any further transaction with the IMTO.
Super Eagles defender, William Troost-Ekong has revealed that head coach Jose Peseiro almost made him stop playing for Nigeria because of a disagreement he had with the Portuguese.
Speaking in an interview with ESPN, the former Udinese and Watford star said he was not sure of playing at the ongoing 2023 Africa Cup of Nations, AFCON, in Ivory Coast.
“I was not sure if I was going to play this AFCON or not and to be honest, I was not sure if I was going to continue with the national team either because I was weighing all my options,” Troost-Ekong said.
“I felt that maybe the only thing that was going to stop me this time was that there was some disagreement with the coach [Peseiro] before the tournament so I was not sure if I was going to be part of the squad or not.”
He added, “I stayed in communication with the team, I was wishing them well. I also reminded the coach that I am available and I think everyone was impressed with how I was playing in the league and also the European Conference League.”
Troost-Ekong has been solid for Nigeria at the AFCON.
The 30-year-old scored a goal for Nigeria against the host nation Ivory Coast.
Ondo State governor, Hon. Lucky Orimisan Aiyedatiwa, has transmitted the names of six Commissioner-nominees to the State House of Assembly for screening and confirmation.
The development is contained in a statement issued on Friday by his chief press secretary, Ebenezer Adeniyan.
According to the statement, the six nominated for appointment are Mrs. Omowumi Isaac, ACCA, Mr. Olukayode A. Ajulo, SAN, Engr. Razaq Obe, Pastor Emmanuel Igbasan, Barrister Akinwumi Sowore, and Mr. Oseni Oyeniyi.
The governor also appointed three Special Advisers. The nominees are Hon. Olugbenga Omole (Special Adviser on Information & Strategy), Mrs. Olamide Falana (Special Adviser on Gender Affairs), and Mr. Alabi Johnson, (Special Adviser on Energy).
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The president of the Senate, Godswill Akpabio, on Friday flew into Abidjan Cote d’Ivoire to support the Super Eagles of Nigeria in the quarter final match against Angola.
Akpabio being received in Cote d’Ivoire
Accompanying Akpabio, is Senator Simon Lalong, former Governor of Plateau State, among others.
Lalong in a social media statement, declared:
Sen. Simon Bako Lalong
@LalongBako
Akpabio, Lalong and others
“Today, I joined H.E. @SPNigeria Godswill Akpabio on a journey to Abidjan, Cote d’Ivoire, to rally behind the Super Eagles of Nigeria as they face Angola in the quarterfinals.
“The nation stands united in support of d Eagles, & I am confident they will bring pride to us. Go Eagles!”
[NationalDaily]
French President Emmanuel Macron confirmed on Friday that two French aid workers had been killed in a Russian strike in Ukraine and condemned the attack as “outrageous”.
Ukranian officials said the two men died in a recent drone attack in southern Ukraine.
“Two French aid workers have been killed in Ukraine by a Russian strike. A cowardly and outrageous act,” Macron said on X (formerly Twitter).
“My solidarity goes out to all the volunteers who are committed to helping people,” he added.
Foreign Minister Stephane Sejourne added: “Russia will have to answer for its crimes.”
Ukranian officials said that two French nationals were killed and three other foreigners wounded on Thursday in Beryslav, near the southern Ukrainian city of Kherson.
Ukrainian police said they had died as a result of a drone attack.
Beryslav, which sits on the Dnipro River close to the front line, has regularly been targeted by Russian drones and artillery.
Ukrainian President Volodymyr Zelensky voiced gratitude for the Frenchmen’s work in his war-torn country.
“Russian terror knows no boundaries or victims’ nationalities.
“The brave French aid workers assisted people and we will always be grateful for their humanity.
“My condolences go out to their loved ones,” Zelensky wrote on social media.
AFP
Governor Lucky Orimisan Aiyedatiwa of Ondo State has nominated six persons for appointment as Commissioners.
In a statement issued on Friday by his Chief Press Secretary, Ebenezer Adeniyan, the governor said the nominees will assist him in the day-to-day running of the government of the state.
The statement added that Governor Aiyedatiwa had forwarded the names of the Commissioner-nominees to the State House of Assembly for screening and confirmation.
It stated that three of the commissioners and two special advisers sacked last week by the governor, were amongst the new special advisers and commissioner nominees.
According to the statement, the nominees are Omowumi Isaac, ACCA, Olukayode A. Ajulo (SAN), Engr. Razaq Obe, Pastor Emmanuel Igbasan, Barrister Akinwumi Sowore, and Oseni Oyeniyi.
The governor also appointed three Special Advisers. The nominees are Hon. Olugbenga Omole (Special Adviser on Information & Strategy), Olamide Falana (Special Adviser on Gender Affairs), and Alabi Johnson, (Special Adviser on Energy).
[NaijaNews]
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]