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Travel entourage reduction not enough, Obi tells Tinubu

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The presidential candidate of the Labour Party (LP) in the 2023 presidential election, Peter Obi, has told President Bola Tinubu to cut down on the cost of governance instead of a reduction in travel entourage recently announced by the Federal Government.

Tinubu had, on Tuesday, directed that all the entourages to state and International events be drastically reduced by 60 per cent.

However, while reacting to the announcement, Obi says what Nigerians need is a 60 percent cut in the cost of governance and not a reduction of travel entourages.

Obi, who posted his reaction on his verified X handle on Wednesday, said the measure from the government was just scratching the surface because it would only lead to a negligible saving.

Obi stated as follows:

“The just announced 60% cut in the size of federal official entourages on travels is one positive step towards the reduction of cost of governance and a way of halting wastage.

“But this measure is just scratching the surface as it is limited in scope and can only lead to a very negligible saving. We are yet to be told how much savings this will amount to.

“While this modest step may be somewhat commendable, what is desirable should be both a 60% reduction in federal official overseas trips as well as a 60% reduction in the size of delegations.

“Most importantly, what our current economic reality demands is a 60% reduction in the total cost of governance at the Federal level.

“This implies that the recently passed federal budget needs to be revised to cut all wasteful and unnecessary items.

“This is the level of cost-cutting and savings that can meaningfully impact the present state of the economy. This level of cut in the cost of government should lead to substantial savings.

“Such savings should be used to fund the productive sectors of the economy and the much-needed social investments, especially in three key areas: education, healthcare, and the migration of millions of Nigerians from poverty.

“Most importantly, it is not enough to announce arbitrary cuts in the size of federal official entourages. The nation needs to be informed of how much the measure will save and where such savings will be applied”.

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

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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.

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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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