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Labour union plans showdown with Nigeria’s president over petrol subsidy removal

Published

2 years ago

June 3, 2023

Following the decision by Nigeria’s new administration to end subsidies on petroleum products, the labour union in the country has announced a plan to embark on a nationwide strike next Wednesday.

The Nigeria Labour Congress (NLC) President, Joe Ajaero, after an emergency meeting of the union’s executive council in Abuja, called for the reversal of the policy by the state oil company, NNPC.

“The Nigeria Labour Congress decided that if by Wednesday next week that NNPC, a private limited liability company that illegally announced a price regime in the oil sector, refuses to reverse itself for negotiations to continue, that the Nigeria Labour Congress and all its affiliates will withdraw their services and commence protests nationwide until this is complied with,” Ajaero said.

The country was thrown into confusion on Monday as the new president, Bola Tinubu, during his inaugural address, remarked that “fuel subsidy is gone”. The market reacted sharply as long queues followed at fuel stations, and a sharp increase in the price of Premium Motor Spirit, popularly known as petrol, occurred.

The Nigerian government under former president Buhari had announced that the controversial subsidy regime would be discontinued by June this year. The then minister of finance, Zainab Ahmed had reiterated on occasions that Nigeria had no provision for fuel subsidy in the 2023 appropriation bill beyond June.

The country spent 4.39 trillion Naira ($9.7 billion) on petrol subsidies in 2022 and reportedly expended over N1.15 trillion in 2021 alone.

Some observers have argued that the hike in petrol price will put financial stress on the majority of Nigerians who depend on cheap petrol to power their businesses, as well as transportation, based on the poor state of public transit systems in the country.

The situation is compounded by the wage levels in the country. The minimum wage in Nigeria is 30,000 naira ($65). According to the National Bureau of Statistics, 63% of people living in Nigeria are poor, while the World Bank said in a report last year that as many as four in 10 Nigerians live below the national poverty line.

Meanwhile, President Tinubu has promised to review the minimum wage during a meeting with the ruling party state governors at his office in Abuja, adding that revenue collection should be strengthened.

“We need to do some arithmetic and soul-searching on the minimum wage,” Tinubu said

Related Topics:Featured Fuel subsidy Nigeria

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”