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Economic Policies: We Stand By Our Advice To Tinubu – IMF Maintains Stand Despite Backlash From Nigerians
AFOLABI
The International Monetary Fund (IMF) has reiterated its support for the removal of petrol subsidy and the floating of the exchange rate by the President Bola Tinubu-led government.
The Bretton Woods institutions have come under heavy backlash by Nigerians for advising President Bola Tinubu on the present economic policies, especially the removal of subsidy from PMS as well as the floating of the naira which have plunged the country into inflationary pressures.
The IMF’s African Region Director, Abebe Selassie at a briefing on the sidelines of the IMF and World Bank Annual Meetings, however, stated that the organisation did not advise the President to remove fuel subsidy, adding that it was Tinubu’s decision.
However, an IMF spokesperson who spoke to Premium Times, in response to its enquiry on Wednesday, said the institute stands by its advice to the Tinubu-led government.
“We stand by our advice, though it’s important to underscore that individual pieces of that advice cannot be viewed in isolation.
“Our advice is a comprehensive policy package where all elements are linked to each other. That package seeks to ensure macroeconomic stability and raise living standards in a sustainable fashion.
“Importantly, our advice on petrol subsidies and the exchange rate, is set in a larger, comprehensive policy mix that also includes scaling up social transfers to provide relief to Nigerians who are already suffering from a cost-of-living crisis or who are impacted by policy reforms,” the spokesperson was quoted as saying.
Also, the spokesperson referenced the IMF’s 2024 report on Nigeria, published in May, in which the global institution’s executive directors “welcomed the bold reforms implemented by the new administration and commended the authorities’ focus on revenue mobilization, governance, social safety nets, and upgrading policy frameworks in the face of Nigeria’s significant economic and social challenges.”
The Senate on Wednesday confirmed the appointment of Bianca Odumegwu-Ojukwu as the substantive Minister of State for Foreign Affairs, alongside six other ministerial nominees in President Bola Tinubu’s cabinet reshuffle.
The confirmations followed the dismissal of several ministers by Tinubu on October 21, 2024.
In addition to Odumegwu-Ojukwu, the Senate approved Dr. Jumoke Oduwole as Minister of Industry, Trade, and Development, Dr. Nentawe Yilwatda as Minister of Humanitarian Affairs and Poverty Reduction, and Muhammadu Dingyadi as Minister of Labour and Employment.
The chamber also confirmed Idi Muktar Maiha as Minister of Livestock Development, Yusuf Ata as Minister of State for Housing, and Dr. Suwaiba Said Ahmad as Minister of State for Education.
Following approximately five hours of screening, the nominees were confirmed by a voice vote led by Senate President, Godswill Akpabio.
Each nominee outlined their plans to advance their respective ministries, discussing reforms and goals to enhance Nigeria’s development.
After the recent handover process, the confirmation marks a fresh chapter for several ministries.
The Minister of Women Affairs, Iman Sulaiman-Ibrahim, assumed office on Monday, succeeding Uju Kennedy Ohanenye.
The Ministry of Tourism also transitioned leadership, with former Minister Lola Ade-John handing over to the Minister of Arts, Culture, Tourism, and Creative Economy.
The Senate had earlier suspended its procedural rules following a motion by Senate Leader, Opeyemi Bamidele to admit Basheer Lado, Special Adviser to the President on Senate Matters, who accompanied the nominees into the plenary.
Naija News understands that the confirmed ministers will be sworn-in by President Bola Tinubu, thereby giving them the right to attend the weekly Federal Executive Council (FEC) meeting.
The next weekly FEC meeting is expected to hold on Monday, 4th of November, with a fresh view after the reshuffling of cabinet during the last meeting.
President Bola Tinubu has appointed Major General Olufemi Olatubosun Oluyede as the acting Chief of Army Staff (COAS).
Oluyede will serve in the capacity of COAS until the return of Lt. General Taoreed Abiodun Lagbaja, who is currently unwell and undergoing treatment overseas.
President Bola Tinubu’s spokesperson, Bayo Onanuga, confirmed this development in a statement issued on Wednesday, October 30, 2024.
“President Bola Ahmed Tinubu, Commander-in-Chief of the Armed Forces, has appointed Major General Olufemi Olatubosun Oluyede as the acting Chief of Army Staff (COAS).
“Oluyede will act in the position pending the return of the indisposed substantive Chief of Army Staff, Lt. General Taoreed Abiodun Lagbaja,” the statement read.
Prior to his recent appointment, Oluyede held the position of the 56th Commander of the prestigious Infantry Corps of the Nigerian Army, located in Jaji, Kaduna.
At the age of 56, Oluyede was a coursemate of Lagbaja, both having been part of the 39th Regular Course.
He was commissioned as a second lieutenant in 1992, with an effective date of 1987, and achieved the rank of Major-General in September 2020.
Throughout his career, Oluyede has undertaken numerous command roles since his commissioning as an officer.
His positions have included Platoon Commander and adjutant at the 65 Battalion, Company Commander at the 177 Guards Battalion, Staff Officer for the Guards Brigade, and Commandant of the Amphibious Training School.
General Oluyede has been involved in various operations, such as the Economic Community of West African States Monitoring Group (ECOMOG) Mission in Liberia, Operation HARMONY IV in Bakassi, and Operation HADIN KAI in the North East theatre, where he led the 27 Task Force Brigade.
He has received numerous accolades for his distinguished service across different operational fields, including the Corps Medal of Honour, the Grand Service Star, successful completion of the Staff Course, and membership in the National Institute.
The Senate, yesterday, screened and confirmed the appointment of the seven ministerial nominees sent to it by President Bola Tinubu last week Thursday.
The screening of the nominees and their approval was done at the committee of the whole while their appointments were confirmed at plenary.
The ministers-designate and their ministries were Dr Nentawe Yilwatda (Humanitarian Affairs and Poverty Reduction); Muhammadu Dingyadi (Labour & Employment); Bianca Odumegwu-Ojukwu (Minister of State Foreign Affairs), and Dr Jumoke Oduwole (Industry, Trade and Investment).
Others were Idi Mukhtar Maiha (Livestock Development); Yusuf Ata (State, Housing and Urban Development), and Dr. Suwaiba Ahmad (Minister of State Education).
The nominees answered specific questions which the senators asked them regarding the fresh ideas and plans they had for their proposed ministries.
Senators Enyinnaya Abaribe, Victor Umeh and Tony Nwoye, however, commended President Tinubu for appointing Bianca, wife of the late Igbo leader, Chukwuemeka Odimegwu-Ojukwu, and chieftain of the All Progressives Grand Alliance (APGA) as minister.
They said the development was an indication that Tinubu was committed to forming a Government of National Unity.
Bianca, former Nigerian Ambassador to Spain, confirmed the South East senators assertion and emphasised that Nigeria would experience massive transformation if its citizens come together with a commitment to peace.
“I am here because I believe that if we are able to come together sincerely to commit to serving this nation, focusing on ensuring that we have peace, then the sky is the limit for this country.
She noted that the combined efforts of cultural, governmental, and diplomatic organisations could drive transformative change.
“There is hope for this country if we sincerely commit to unity and focus on peace, Nigeria’s potential is limitless.”
The Ministers-designate for the Ministry of Livestock Development, Idi Mukhtar Maiha, assured Nigerians that the issue of farmers-herders clash would be a thing of the past after developing the 417 grazing areas in the country.
The new ministry, he said, would develop a database of all the infrastructure that are animal husbandry related, meaning all the grazing reserves in the country.
“We also want to know all the cattle routes. We also want to know all the dams that are viable. From there, we will develop those grazing reserves that have no legal inconveniences. The ministry intend to work with other critical stakeholders to make sure that this vision is realised,” he said.
The Minister-Designate for Trade and Investment, Dr. Jumoke Oduwole, pledged to continue with the economic policy of the Tinubu administration which focuses on investment, productivity, and job creation.
She noted that the, key reforms in monetary and fiscal policy aimed at stabilising the economy have started to deliver some results.
“Perhaps what we now need to deliver is the convergence of these two pillars of monetary and fiscal policy, with trade, investment, and industrial policies, to further drive growth,” she said.
A Kuje Magistrate Court in the Federal Capital Territory has adjourned to Friday, November 8, to begin hearing on the charges brought against a member of the House of Representatives, representing Aba North and South Federal Constituency of Abia State, Alexander Ikwechegh, after granting him bail in the sum of N500, 000.
Ikwechegh, who was arraigned on Wednesday, before His Worship, Abubakar Umar Sai’id, for allegedly assaulting a Bolt driver, Stephen Abuwatseya, at his residence in Abuja, pleaded not guilty to the charges brought against him.
The Inspector General of Police, Kayode Egbetokun, arraigned Ikwechegh on three counts bordering on abuse of office, assault and threat to life.
After taking his plea, the lawmaker’s counsel proceeded to make an oral application for bail, which was granted by the court.
The magistrate said, “The court will grant the defendant a bail set at N500,000, with two sureties in like sum. The sureties must reside within the court’s jurisdiction and provide utility bills as proof of residence.”
The court proceeded to adjourn the hearing in the matter till November 8.
A video of Ikwechegh allegedly assaulting the Bolt driver had gone viral on social media on Monday.
In the video, Ikwechegh can be seen repeatedly slapping the driver. Aside from the slaps, the lawmaker can be heard threatening the driver and assuring him of how he can make him disappear without a trace.
Meanwhile, a civil society organisation, Rule of Law and Accountability Advocacy Centre, in a statement, on Wednesday, condemned Ikwechegh’s action and described it as “a glaring example of abuse of power” most common with politicians.
The statement signed by RULAAC’s Executive Director, Okechukwu Nwanguma, said the lawmaker’s action was a shame not only on him but also on every member of the House of Representatives.
He stated, “The recent incident involving a federal lawmaker, Alex Ikwecheghi’s brutal treatment of Uber driver, Mr Stephen Abuwatseya, is a glaring example of the abuse of power that permeates Nigeria’s political landscape. Ikwechegh’s actions, including verbal and physical assault, as well as intimidation of the victim, reveal a profound lack of humility and respect for the rights of others that should be expected from someone in a public office.
“This incident not only shames Ikwechegh but also reflects poorly on the House of Representatives, the police, and the broader political system. The indiscriminate use of power to silence and control vulnerable citizens showcases a troubling trend among officials who seem to operate above the law. The complacency of the police in this matter raises serious concerns about their integrity and commitment to justice, as they appear more willing to serve influential individuals than to uphold the rule of law.
“While the House of Representatives’ decision to investigate this behaviour is a positive step, it remains to be seen whether meaningful accountability will follow. Historical precedents suggest a risk of sweeping the issue under the rug once public outrage subsides, which would do little to repair public trust in governance.”
Nwanguma noted that the societal implications of the incident were dire as it “transcends the individual and speaks to a culture of impunity that must be addressed,” imploring that justice must not only be served for Abuwatseya but also the many unnamed victims of similar abuses.
“This case must serve as a catalyst for change, leading to reforms that prioritise respect for human rights and the rule of law in Nigeria”, he stated.
[Punch]
Sub-national governments continued to grapple with a persistent reliance on borrowing to finance their budgets in 2023, as the total debt stock of the 36 states surged by 38.1%, from N7.25tn in 2022 to N10.01tn.
According to BudgIT’s 2024 State of States report released on Tuesday, the debt growth was partly driven by a N606.12bn increase in domestic debt, resulting in an average year-on-year growth rate of 11.4%. By 31st December 2023.
The total domestic debt stood at N5.86tn.
The situation was further complicated by rising foreign debt, which increased by 4.1%, from $4.43bn in 2022 to $4.61bn in 2023.
According to the report, the liberalisation of the exchange rate exacerbated the financial strain on states, significantly raising their foreign loan repayment obligations in naira terms.
Lagos State remained the most indebted in foreign currency, accounting for 26.9% of the total foreign debt, equivalent to $1.24bn.
Further analysis of the debt landscape revealed a considerable variance of N2.74tn in debt repayment obligations when comparing the exchange rate shift from N899.39 per dollar as of December 31, 2023, to the new rate of N1,492.9 as of June 2024. The devaluation exposed many states to heightened financial risk, particularly the eight states where more than 50% of the total debt is dollar-denominated.
Kaduna and Edo had the highest foreign debt-to-total debt ratios, at 86.06% and 60.54%, respectively.
The other states in this group—Ondo, Bauchi, Lagos, Enugu, Ebonyi, and Anambra—had ratios ranging from 50% to 59%.
The debt burden also varied significantly across the country, with the average sub-national debt per capita reaching N40,469 in 2023.
Twelve states exceeded this benchmark, with Lagos having the highest debt per capita at N138,034.
In addition to the existing debt stock, the states have exiting liabilities totalling N1.19tn: N408.69bn is owed in contractor arrears, N521.36bn is owed in pension and gratuity arrears, N79.64bn is owed in salary and other staff claims, N4.36bn is owed in judgement debt and other pending litigation, and other payables and liabilities amount to N182.79bn.
The report advised that to achieve debt sustainability, states need their appetite for accumulating foreign loans amidst exchange rate volatility and shrinking fiscal space to minimise their exposure to unfavourable exchange rates.
“Domestic revenue mobilisation should be strengthened to reduce borrowing needs and budget deficits.
“States should implement fiscal reforms that broaden the tax base and formalize economic activities.
“Furthermore, states should establish robust frameworks for debt transparency and accountability, ensuring that borrowed funds are directed towards high-impact projects with clear economic returns. Enhanced coordination between federal and state governments is essential for monitoring debt sustainability and providing guidance on borrowing limits to safeguard fiscal stability,” BudgIT advised.
The World Bank has advised the Federal Government to prioritise providing jobs for the Nigerian youths.
The World Bank’s Country Director for Nigeria, Ndiame Diop gave the advice in the wake of critical reforms made by the Bola Tinubu’s administration, which had thrown the country into skyrocketing inflation and increase in costs of living.
Tinubu in May 2023 declared an end to fuel subsidies, a move that has increased prices of Premium Motor Spirit (PMS) from N175 per litre to officially N1,025 per lire in Lagos state at the Nigerian National Petroleum Company Limited (NNPCL) stations.
Following the development, the world’s apex bank in its Nigeria Development Update Report, titled “Staying the Course: Progress Amid Pressing Challenges,” said going forward, it is most crucial for the government to provide jobs for its citizens, youths especially, to help them cope with the hardship.
“Nigeria took the bold and courageous move to undertake difficult but critical reforms. This against the backdrop of an already fragile economic position, high food and transport inflation, and other heightened uncertainties. If these reforms were not done, Nigeria would have fallen into a serious fiscal crisis that would have made it difficult for government to meet its obligations to citizens.
“It will be important to consolidate the improving fiscal outlook and scale up the support for the poorest households to cope with purchasing power losses and hardships, while expanding opportunities for growth and productive jobs, especially for young Nigerians is most urgent and crucial”.
Stop Ad-Hoc FX Auctions
It urged the Central Bank of Nigeria to refrain from intervening in the foreign exchange market through forex auctions.
It was also advised to continuously reaffirm the commitment to exchange rate flexibility by adopting a comprehensive, systematic, and transparent framework for foreign exchange interventions.
The advice followed the auction of $876.26m to end users via a retail Dutch auction on August 26, 2024, by the CBN.
The major move was away from its traditional sales of foreign exchange to Bureau De Change operators.
This auction marked one of the most significant FX interventions by the CBN under the leadership of Governor Yemi Cardoso, who has been actively working to stabilise the naira and address the ongoing volatility in the FX market.
The apex bank said the auction process was to enhance foreign exchange liquidity in the market, alleviate demand pressure, and support price discovery in alignment with its objectives.
According to the sales report, 3,347 firms got access to the dollars via the 26 banks, which qualified at the rate of N1,495 per dollar cut-off rate.
But the Bretton Woods Institution in its latest report noted that permitting market participants to trade FX with more flexibility across time would also contribute to deepening the FX market.
The report read, “Exchange rate policy should continue to be geared towards maintaining a unified, market reflective exchange rate, whilst deepening the FX market. The CBN should continue efforts towards deepening the official FX market, including by facilitating formal remittances inflows, allowing international oil companies to fully concentrate their FX sales in the official market, restoring intermediated market access to bureaux de change, and refraining from ad-hoc FX auctions.
“Allowing market participants to trade FX with more flexibility across time would also contribute to deepening the FX market.”
The Senate has commenced the screening of the seven newly nominated ministers.
The nominees are Dr Nentawe Yilwatda as Minister of Humanitarian Affairs and Poverty Reduction, Muhammadu Dingyadi as Minister of Labour and Employment, Bianca Odumegwu-Ojukwu as Minister of State, Foreign Affairs, and Dr. Jumoke Oduwole as Minister of Industry, Trade and Development.
Others are: Idi Muktar Maiha as Minister of Livestock Development, Rt. Hon. Yusuf Ata as Minister of State, Housing, and Dr Suwaiba Said Ahmad as Minister of State, Education.
The Senate following a motion moved by the leader, Opeyemi Bamidele at 12:57 pm, on Wednesday suspended its rule to admit the Special Adviser to the President on Senate matters, Basheer Lado, to bring the nominees into the plenary.
The Senate President, GodsWill Akpabio, had on Thursday read the letter from President Bola Tinubu nominating the new ministers.
This development follows President Tinubu’s recent reshuffle of his cabinet, including the dismissal of five ministers: the Minister of Women Affairs, Uju-Ken Ohanenye; Minister of Tourism, Lola Ade-John; Minister of Education, Prof. Tahir Mamman; Minister of State for Housing and Urban Development, Abdullahi Muhammad Gwarzo; and Minister of Youth Development, Dr Jamila Bio Ibrahim.
The Osun State chapter of the All Progressives Congress (APC) has suspended former Minister of Interior, Ogbeni Rauf Aregbesola, over alleged anti-party activities.
According to Vanguard, in a resolution submitted to the APC National Secretariat and directed to National Chairman Dr. Umar Ganduje, Osun APC accused Aregbesola, who previously served as governor, of fostering divisions within the party by creating a rival faction.
The APC claims that this act has disrupted party unity, especially during a sensitive time in Osun politics.
Party leaders believe Aregbesola’s influence over certain groups has deepened internal rifts, which the state chapter sees as detrimental to the party’s unity.
It reads: “Following Committee, the State Executive Committee (SEC), llesa East Local Government Executive reviewing the allegations and by the powers vested in it by Article 21(3) (vi) (c) of the party’s Constitution, hereby suspends Ogbeni Rauf Aregbesola from the party pending the outcome of an investigation into the allegations by a Disciplinary Committee.
“The State Executive Committee has constituted a Disciplinary Committee to investigate and provide Ogbeni Aregbesola with the opportunity to respond to the allegations of activities deemed to violate Article 21 (2) of the party’s Constitution, particularly relating to anti-party activities that undermine the collective interests of the APC levelled against him as follows:
“Factionalisation of the party with the creation of splinter groups i.e. the Omoluabi Caucus-a trending video of their recent activities in Iwo is here with attached; Creation of parallel organs within the party;
“Working with opposition parties to undermine the APC in the State -admission made at the Ataoja’s Palace 4th of January 2024, Osogbo; Public outbursts against the leaders of the party, including President, H.E. Asiwaju Bola Ahmed Tinubu (GCFR), Chief Bisi Akande and H.E. Gboyega Oyetola, among others;
“Refusal to show up or support any party activities in the State; and Refusal to vote for the party since after the 2019 general elections.”
This suspension represents a bold step by the Osun APC to address internal issues and refocus leadership priorities as they prepare for upcoming elections. Responses from Aregbesola’s camp are expected as the situation develops.
Northern leaders converged on Kaduna State, on Monday, for a meeting to address the ongoing power blackout and other critical challenges affecting the region.
Chairman of the Northern States Governors’ Forum (NSGF) and Governor of Gombe State, Muhammadu Inuwa Yahaya, led the meeting attended by the 19 Northern Governors and Traditional Rulers.
Issues such as insecurity, economy and sustainable development priorities were discussed at the meeting, according to a statement issued by Ismaila Uba Misilli, spokesman to Gombe governor.
Je said the NSGF, under Governor Yahaya’s leadership focused on charting a unified agenda to enhance regional cooperation and development, leveraging the north’s resources to promote long-term development.
The statement said Governor Yahaya raised concerns over the current power outage caused by vandalism of critical infrastructure, calling for investments in new transmission lines and energy diversification to prevent future disruptions.
He also stressed the need to move beyond symbolic meetings, urging the NSGF and the Northern Traditional Rulers Council to develop practical, results-oriented strategies tailored to the region’s unique challenges.
“The time to walk the talk is now,” he said, expressing confidence that unity, determination, and bold leadership would steer the region towards a more prosperous future.”
The governor also advocated for strengthening agricultural infrastructure, supporting farmers, and reviving agro-industries, like the textile sector to address food insecurity and drive economic revival.
Governor Yahaya also emphasized the importance of traditional institutions as tools for conflict resolution and community engagement.
In a welcome address, Governor Uba Sani of Kaduna State, emphasised the urgent need for a unified strategy to combat insecurity and other regional challenges.
According to him, without security, there will be no development in the region.
The Sultan of Sokoto, Alhaji Muhammad Sa’ad Abubakar III, who led the traditional rulers, emphasised the critical role of traditional institutions in promoting peace and stability in the region.
He highlighted the need for honest discussions about the root causes of insecurity, including poverty and unemployment, calling for decisive actions from political leaders to address these issues effectively.
Sultan commended Governor Yahaya for constantly engaging with stakeholders across multiple sectors and galvanising his colleagues towards implementing actionable strategies towards addressing the region’s numerous challenges.
[DailyTrust]
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Global rights group Amnesty International has expressed concern over the escalation of mob violence which, it said, emboldens impunity in Nigeria.
In a new report, the rights group said at least 555 victims of mob violence were recorded in Nigeria in the last decade
Amnesty International said the upsurge in blasphemy killings was fueled by alleged incitement of clerics.
“The failure of the Nigerian authorities to protect lives has led to a growing escalation of mob violence over the last decade, as people increasingly take law into their hands and carry out so-called ‘jungle justice’,” said Amnesty International Nigeria in the new report.
The group said enforcement failures exacerbated the wave of mob violence in Nigeria as victims accused of theft, blasphemy, shoplifting and witchcraft are beaten, tortured and killed with impunity and suspected perpetrators almost always get away with it.
“Between January 2012 to August 2023, Amnesty International recorded at least 555 victims of mob violence, from 363 documented incidents across Nigeria.
“Over the period of this investigation at least 57 people were killed by violent mobs; 32 were burnt alive, 2 persons were buried alive, while 23 people were tortured to death. Many cases of mob killings in remote areas go unreported.
“The menace of mob violence is perhaps one of the biggest threats to the right to life in Nigeria. The fact that these killings have been happening for a long time, with few cases investigated and prosecuted, highlights the authorities’ shocking failure to uphold and fulfil their obligation to protect people from harm and violence,” said Director Amnesty International Nigeria, Isa Sanusi.
“The failure of law enforcement agencies, especially the Nigeria Police Force, to prevent mob violence, investigate allegations of torture and killings, and bring suspected perpetrators to justice, is empowering mobs to kill. The problem is compounded by weak and corrupt legal institutions and systems.”
Amnesty International’s research detailed cases of victims of mob violence that include at least 13 women, six children, and two persons with actual or perceived mental health illnesses and/or psycho-social or intellectual disabilities.
Cases of mob violence were documented in each of Nigeria’s six geopolitical zones: South-South (82), South-East (43), South-West (98), North-Central (42), North-West (100), and North-East (26).
“The Nigerian authorities must urgently address the escalating cases of mob violence including by upholding and protecting the rights of everyone in the country to life and freedom from torture.
“Government must ensure prompt, thorough, impartial, independent, transparent and effective investigation of cases of mob violence and bring those suspected to be responsible to justice in fair trials. Authorities should also take appropriate and effective measures to prevent cases of mob violence across the country and ensure access to justice and effective remedies for victims. The police must be adequately equipped to prevent and respond to mob violence.” said Sanusi.
The President and Chief Executive of Dangote Group, Aliko Dangote, has expressed support for President Bola Tinubu’s energy transition drive from petroleum products to Compressed Natural Gas (CNG).
At a recent event, the billionaire businessman said the company’s investments in CNG are also in line with Nigeria’s Nationally Determined Contribution (NDC) under the Paris Agreement, which aims for net-zero emissions by 2060.
“In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President,” Dangote said.
He noted that the company’s early adoption of CNG has made it the largest operator of CNG trucks in Nigeria, emphasising that the initiative is a boost to President Tinubu’s quest towards enhancing the nation’s energy independence and contributing to a more secure energy future.
“We are now using CNG vehicles, especially with the new policy of the Federal Government, launched under the Renewed Hope Agenda by His Excellency, President Bola Ahmed Tinubu. We are committed to a cleaner and greener future,” Dangote said.
Similarly, President Tinubu emphasised the urgent need for Nigeria to utilise its vast natural gas resources in the transportation sector. He stated that CNG transportation is an economic necessity for Nigeria, signalling a significant shift in the country’s approach to public transportation and energy use.
“Utilising natural gas to power Nigeria’s transportation industry is the next way to go,” he stated.
On its part, the Dangote Cement said its over $280m investment not only solidifies its leadership in the CNG sector but also reflects its dedication to mitigating climate change and supporting a transition to a low-carbon economy.
Group Managing Director of Dangote Cement Plc, Arvind Pathak, said the investment is aimed at acquiring 100% CNG trucks as part of a long-term plan to transition its entire fleet to CNG.
Pathak stated, “By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.”
Pathak said that the company’s CNG infrastructure investments have positively influenced Nigeria’s transition to cleaner fuels.
He added that the CNG station at Obajana, capable of refuelling over 3,000 trucks, exemplifies this commitment, with a second station currently under development in Ibese to further support fleet operations.
The World Bank has said that the reports submitted by the Nigerian National Petroleum Company Limited (NNPCL) to the Federal Account Allocation Committee (FAAC) were inconsistent, and lacked necessary details on its operations.
This was revealed in the bank’s Accelerating Resource Mobilisation Reforms (ARMOR) Report for May 17, 2024.
According to the WB, in addition to reduced net oil revenues, the opaque governance of NNPCL has significantly undermined the transmission of oil revenues to the federation.
“Non-transparent reporting to the Federal Ministry of Finance (FMF) and the Federation Account Allocation Committee (FAAC), make it difficult for the authorities to oversee NNPCL’s performance, calculate anticipated oil and gas revenues and determine the difference between revenues received by the Federation and NNPCL’s total revenue.
“The reports submitted to FAAC by NNPCL are inconsistent and lack information such as details on pledged revenues, the tradeable value of crude oil, actual payments, and receipts from global trade, among others. As highlighted in the Nigeria Public Finance Review (2022),7 financial reporting is opaque due to quasi-fiscal activities such as in-kind revenues in the form of crude oil, and costs directly deducted from revenues that would have otherwise been transferred to the Federation Account,” the report said in part.
NNPCL is governed by the Petroleum Industry Act (PIA) 2021
The world’s apex bank cited a case where the NNPCL pledged 35,000 barrels of crude oil per day to the owners in exchange for a 20 per cent stake in the privately owned Nigerian Dangote Refinery.
WB said although the total value of the contractual investments for pledged oil revenues was estimated to be worth US$5.8 billion at end-2022, the amount eventually declared by NNPCL was below expectation.
“All production sharing contracts signed by NNPC state that all fiscal payments shall be made in-kind by allowing the NNPC to lift tax oil, royalty oil, and profit oil. In joint venture operations, in which the Federation owns 55 per cent or 60 per cent of the equity oil and gas, the NNPC handles crude oil and natural gas receipts on behalf of the Federation.
However, the share of oil production in these contracts amounts to more than two-thirds of the total oil production in Nigeria.
“Nigeria’s dependence on oil and gas revenue is a source of fiscal vulnerability. During the commodity-price boom of 1996-2014, the revenue-to-GDP ratio was 12 per cent, (albeit considerably lower than the Sub-Saharan Africa (SSA) average of 21.5 per cent at that time), while a decade later, revenue-to-GDP was just 7.7 per cent in 2023.
“ Despite a 116 per cent increase in international oil prices between 2020 and 2022-2023, net oil and gas fiscal revenues transferred to the Federation fell in the same period from 2 per cent of GDP to 1.8 per cent of GDP due to falling oil production and the retention of fiscal transfers to finance the gasoline subsidy.
“Oil production fell from 1.8 million barrels per day (mbpd) in 2020 to 1.4 mbpd in 2022-2023 due to insecurity and a lack of investment and adequate maintenance. The cost of the gasoline subsidy increased over this period from 0.9 to 1.6 percent of GDP, deducted directly by the Nigeria National Petroleum Corporation Limited (NNPCL)5 and reducing the net oil revenue transfers to the Federation Account.”
Additionally, WB said the NNPCL has retained oil and gas revenues for projects such as a gas pipeline to Morocco.
“NNPCL also entered contractual arrangements that pledge future oil and gas revenues to business partners in lieu of cash payments,” the report added.
FG Eyes Fresh $750m W’Bank Loan
The Federal Government is also pressing for a $750m loan from the World Bank.
This loan project is a part of the broader $2.25bn approved by the World Bank for Nigeria on June 13, 2024, to bolster Nigeria’s economic stability and support its vulnerable populations.
The other second part of the loan package was for the Nigeria Reforms for Economic Stabilisation to Enable Transformation, Development Policy Financing Programme project.
Already, an agreement for the loan has been signed between Nigeria (through the Ministry of Finance) and the World Bank.
The agreement document read in part, “The bank agrees to lend to the borrower the amount of $750,000,000 as such amount may be converted from time to time through a currency conversion (“Loan”), to assist in financing the programme described in Part 1 of Schedule 1 to this Agreement (“Programme”) and the project described in Part 2 of Schedule 1 to this Agreement (“Project”, and together with the Programme, hereinafter jointly referred to as the “Operation”).
“The borrower may withdraw the proceeds of the loan in accordance with Section IV of Schedule 2 to this Agreement. All withdrawals from the loan account shall be deposited by the Bank into an account specified by the Borrower and acceptable to the bank.”
According to the Disbursement Linked Indicators set out in the loan agreement, the loan will only be released upon achieving measurable progress in key areas.
These include raising VAT collection through improved regulations, increasing excise taxes on health and environmental products, and boosting corporate tax compliance through enhanced digital infrastructure.
Central to the ARMOR programme is the government’s plan to increase VAT rates and expand taxpayer compliance.
Some of the loan targets include increasing VAT collections to 1.8 per cent of non-oil Gross Domestic Product, unlocking $105m of the loan.
The WB said despite recent reforms, Nigeria’s non-oil tax revenues underperform due to low tax rates, poor compliance, a narrow tax base, and high tax expenditures.
Reforms introduced in 2020-2021 increased non-oil tax revenues from 2.3 per cent of GDP in 2020 to 3.7 per cent of GDP in 2023 due to a rise in Value-Added Tax (VAT) rates, improvements in tax digitalisation, and the unification of the exchange rate in 2023.
“Despite this increase, tax revenues in Nigeria remain very low compared to peers (Figure 2). Unlike most developing countries, Nigeria has yet to tap VAT (a federal responsibility to collect while sharing VAT revenues) as a significant source of revenue. In 2022, VAT revenues were only 1.2 per cent of GDP while VAT tax expenditures were estimated at 1.98 per cent of GDP in 2022 (latest available data).10 The current VAT rate of 7.5 per cent is the lowest rate in Africa, and well below the SSA average of 15.8 per cent. Under the VAT legislation, the tax operates like a sales tax, since firms are unable to recover input VAT on purchases of fixed assets, services, and general administration costs.
“Meanwhile, Corporate Income Tax (CIT) has a very narrow tax base, and although collections have increased in recent years, they represented just 1.6 per cent of GDP in 2023. By comparison, poorly designed and sometimes discretionary CIT expenditures were estimated to cost 0.4 per cent of GDP.11 Excise rates are exceptionally low by global standards, and revenues were less than 0.1 per cent of GDP in 2023.12 Personal Income Tax (PIT) is assigned exclusively to the States, where challenges persist in collection due to tax evasion and underreporting: only 13 per cent of the workforce is registered for PIT (2018) and only 2 per cent of those are reported as active.
The bank advised that the tax and customs administrations need modernising to improve efficiency.
The Joint Action Committee of the Non-Academic Staff Union of Educational and Associated Institutions (NASU) and the Senior Staff Association of Nigerian Universities (SSANU) is set to launch an indefinite strike starting today, effectively halting all activities in universities across Nigeria.
This action comes after the Federal Government’s failure to address the unions’ demands, which include the payment of four months’ withheld salaries, improved remuneration, earned allowances, and the implementation of the 2009 agreement.
A statement released on Sunday, signed by SSANU National President Mohammed Ibrahim and NASU General Secretary Prince Peters Adeyemi, highlighted that the ultimatum given to the government expired at midnight on Sunday.
The statement emphasized the importance of compliance, mandating all NASU and SSANU branches in both federal and state universities, along with inter-university centers, to participate.
The government’s “No Work, No Pay” policy, introduced in 2022, led to the withholding of salaries during previous strikes by university unions.
While President Bola Tinubu directed the partial release of these salaries earlier this year, only academic staff received payment, leaving non-teaching staff excluded.
The unions argue this selective approach is unjust and have repeatedly issued ultimatums, staged protests, and held warning strikes—all of which have yet to yield results.
Today’s action follows a series of unresolved protests and ultimatums.
During a peaceful protest in July, the unions warned the government of possible shutdowns if withheld salaries were not paid.
However, despite promises and approvals for payment, including a recent assurance from President Tinubu, no funds have been disbursed.
The unions assert that members, who handle critical campus services such as water, electricity, internet, and security, are essential to university operations.
In light of this deadlock, SSANU and NASU have instructed members to hold joint congresses on campus today to discuss and launch the indefinite strike.