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

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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.

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‘Resign or face the law’, Zambian President Hichilema warns ministers with ‘long fingers’

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Zambian President, Hakainde Hichilema, has warned ministers, civil servants and officials with intention to perpetrate corruption in government to have a rethink and resign before the law catches up with them.

President Hichilema, who gave the warning while speaking at the Sam Lya Momba traditional ceremony in Namwala on Sunday, stressed that his administration would not tolerate theft of public funds as seen in previous governments, while also condemning the actions of those whom he said had enriched themselves over the decades at the expense of ordinary Zambians.

“The country needs discipline. Zambian money should work for the people, not go into a few pockets,” Hichilema said, as he vowed that his government would recover stolen resources and redirect them to benefit the public.

He added that recovering stolen assets serves as a warning to current officials not to engage in corrupt activities, as the law will apply equally to everyone, inside or outside government.

“It’s a lesson to all of us. If you have long fingers, you are on your own. Ministers, Members of Parliament, council chairpersons, mayors, civil servants—if you’re involved in theft, resign now because the law will catch up with you,” he cautioned.

The president further stressed that national resources should be used to support vital areas such as education, healthcare, and debt repayment, expressing surprise that individuals responsible for incurring the country’s massive debt were now criticizing the government’s performance.

“Do not steal from the government. Health workers pilfering medicine to sell in private pharmacies, your time is up. We will deal with you because you’re stealing taxpayers’ money,” the head of state warned.

He also addressed concerns over the rising cost of Zambia National Service (ZNS) Eagle Mealie Meal, urging traders to maintain the recommended price of K230 and warning them against exploiting citizens during times of hunger by inflating prices.

“This is a year of hunger. The government has intervened by producing affordable mealie meal through the ZNS and correctional services. The Eagle Mealie Meal should not be sold for more than K230. Traders who ignore this should not complain when the law catches up with them,” he said.

The president also called on politicians to use traditional ceremonies as platforms for promoting unity, not division, underscoring the importance of preserving the country’s heritage and values and documenting its history to educate future generations on Zambia’s journey to unity.

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‘Severe malnutrition rises in Northern Nigeria by 51%’ — MSF

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International charity organization, MédecinsSans Frontières (MSF), says severe malnutrition in Northern Nigeria has risen by 51 per cent after treating over 52,725 children with the life-threatening condition across the region over the first eight months of this year.

MSF’s International President, Dr Christos Christou, who disclosed this during a press briefing in Abuja on Sunday, said for the past few years, MSF had seen a significant increase in the number of admissions for malnutrition.

Christou stated that the numbers in 2022 and 2023 were already critically high, adding that between January and August of 2024, MSF has seen a 51 per cent increase in admissions of children with severe malnutrition, compared to the same period last year.

“On top of this, outbreaks of vaccine-preventable diseases, such as measles are recurrent in Nigeria, and one of the leading causes of death amongst children. Between January – August this year alone, we had already treated over 12,500 cases of measles. That’s nearly double the same period last year,” he said.

“Outbreaks of infectious diseases significantly increase mortality risks for children under the age of five. Unvaccinated children in this age group are particularly vulnerable to vaccine-preventable diseases; diseases which elevate the risk of acute malnutrition.”

He noted that during his visit to Nigeria, he saw why the recent massive flooding in Maiduguri had gained some attention worldwide, stressing that the shocking scale had affected millions of people.

“Maiduguri is not the only place in Nigeria affected by flooding, the people in northern Nigeria have been through a lot.

“This includes overwhelming levels of malnutrition, frequent outbreaks of vaccine-preventable diseases, lack of medical facilities and medical personnel. All of this has been compounded by continuous insecurity.

“People now have to seek temporary shelter in displacement camps once again, rebuild their homes once again, and try to figure out what’s left of their farmlands. Because this flooding happened at the end of the lean season, it has deprived farmers of even the illusory hope to harvest.

“All this has happened in the background of a catastrophic malnutrition crisis. One of my colleagues, a Nigerian doctor who has been working with MSF for more than eight years, told me that this year is very different.

“Every year, he said, during this season, we see terrible numbers of malnourished children coming to the hospital in severe condition. But this year, at a time when the peak is supposed to be over, the number of patients admitted to the hospital is not going down. Worse, the condition in which they arrive is even more severe than usual.

“Very often people don’t have access even to basic medical care where they live, and do not have enough money or available transport. As a result, they reach to us too late.

“This is not the time to relent, this is not the time to stop. We have to help the people who need assistance now,” Christou added.

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