Metro

I saved Nigeria from bankruptcy by removing fuel subsidy— Tinubu

Published

2 weeks ago

April 29, 2024

Nigerian President, Bola Tinubu, on Sunday, boasted that he saved Nigeria from going bankrupt by removing fuel subsidy on his first day in office.

Tinubu had, in his inaugural speech on May 29, 2023, pronounced that his administration would discontinue fuel subsidy payments and though the ripple effect of the removal has brought untold hardship and hunger, the President has continued to praise his courage in taking that decisive action.

Tinubu who spoke at the Special World Economic Forum in Riyadh, Saudi Arabia, on Sunday, admitted that though the policy came with economic pains, it was in the best interest of Nigerians, affirming that the move has save the government money for infrastructural expansion.

While addressing his audience, Tinubu argued that removing the petrol subsidy was a necessary action for Nigeria not to go bankrupt and to reset the economy towards growth.

Tinubu said that the petrol subsidy removal equally engendered accountability, transparency and physical discipline for the country.

“Concerning the question of the subsidy removal, there is no doubt that it was a necessary action for my country not to go bankrupt, to reset the economy and pathway to growth,” Tinubu said.

“Yes, there have been drawbacks. Yes, there was the expectation that a greater number of people would feel the difficulty, but, of course, I believed it was their interest that was the focus of government.

“It is easier to manage and explain the difficulties, but along the line, there was a parallel arrangement to cushion the effect of the subsidy removal on the vulnerable population of the country.

“We shared the pain across the board. We cannot but include those who are very vulnerable. Luckily, we have a very vibrant youthful population interested in discoveries by themselves, highly ready for technology, good education, and committed to growth,” Tinubu explained.

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Metro

Chipata youth calls for stronger media protections amid concerns over media independence

Published

13 hours ago

May 14, 2024

Akanimoh Etim

Alepha Banda, a programmes officer at the Youth Development Foundation (YDF), says Zambia’s existing laws do not adequately safeguard journalists, thereby impeding media freedoms and their ability to report objectively.

Banda also argued that journalists’ lack of economic stability makes them susceptible to manipulation.

In an interview with Zambia Monitor in the Eastern Province, Banda stated the need for the government to develop policies aimed at protecting private media entities and journalists.

“The government should formulate a policy that will protect the private media and journalists,” he said.

Moreover, Banda pointed out that although individuals theoretically possess the freedom to express themselves, this liberty was frequently curtailed by factors such as fear and threats emanating from certain members of the political class.

“Individuals in positions of power have a tendency to interfere with the media, as evidenced by numerous incidents where media outlets have been stormed by individuals affiliated with certain political factions,” he said.

Nevertheless, he noted that there had been instances where the government respected media freedoms.

“At least we have seen some tolerance in some instances, where the government has not taken action that hinders media freedom,” he stated.

Additionally, Banda mentioned that the marginalised were often overlooked both in new media platforms and traditional mainstream media outlets.

“The marginalised are often neglected across television, radio, and newspapers,” he said.

This story is sponsored content from Zambia Monitor’s Project Aliyense.

Metro

Nigeria may need to raise supplementary budget to be able pay minimum wage— IMF

Published

19 hours ago

May 14, 2024

Akanimoh Etim

The International Monetary Fund (IMF) says the Nigerian government may need to raise a supplementary budget to be able to pay the proposed minimum wage increase for workers.

The IMF which gave the advise in its latest staff country report for Nigeria on Monday, said a supplementary budget was necessary because the negotiated amount for the wage increase may surpass the budgeted amount in the original 2024 budget.

“The authorities noted that a supplementary budget may be needed to accommodate the outcome of the ongoing wage structure negotiations which may exceed what they had included in the 2024 budget,” the report said.

“Staff projects a higher fiscal deficit than anticipated in the 2024 budget, but broadly unchanged from 2023. The drivers are lower oil/gas revenue projections, reflecting IMF oil price forecasts but incorporating recent production gains; higher implicit fuel and electricity subsidies; continued suspension of excise measures included in the MTEF; and higher interest costs,” the agency noted.

The report also noted that the government might need to raise the domestic and external borrowing ceilings to prevent fresh borrowings from the apex bank’s Ways and Means.

“Over the medium-term, staff projects consolidation in the non-oil primary deficit. With rising interest costs, government debt stabilises towards the end of the projection period.

“Staff factors in an under-execution of capital expenditure in line with past outcomes and estimates an FGN deficit of 4.5 per cent of GDP relative to the 2024 budget target of 3.4 per cent of GDP.

“For the consolidated government, this implies a projected deficit of 4.7 per cent of GDP in 2024—compared to 4.8 per cent of GDP in 2023 measured from the financing side—which is appropriate given the large social needs and factoring in a realistic pace of revenue mobilisation.

“Based on staff’s projections, the authorities must raise the domestic and external borrowing ceilings to prevent renewed recourse to CBN financing.

“With higher interest rates, banks and nonbanks should have sufficient appetite—as indicated by market sources—conditional on careful management of system liquidity, including a likely reduction in the currently high cash reserve requirement.”

Organised labour in the country has continued to clamour for an increase in the minimum wage for government workers.

Labour leaders have demanded for N615,000 from N30,000 as salaries for lowest ranked workers, while a tripartite committee set up by the government have mulled N70,000 as the new minimum wage.

Despite the government allocating N6.48tn for personnel cost in the 2024 budget, the international lender argues that the amount may be insufficient, which could force the government to come up with a supplementary budget to fund the deficit, the report added.