The Nation Newspaper

Author: The Nation

  • Ex-FCT minister makes clarifications on official cars

    Ex-FCT minister makes clarifications on official cars

    FORMER Minister of State for Federal Capital Territory (FCT), Dr Ramatu Aliyu, has said all her official cars have been returned to government pool.

    The clarification, Aliyu said, followed reports she refused to return cars assigned to her by FCT Administration.

    She said the reports were meant to smear her politically and dent her integrity.

    The former minister noted she had returned all vehicles in her possession to Life-Camp, official home of FCT minister

    In a statement Aliyu, she said there are evidences to prove all the vehicles were returned to the appropriate quarters.

    The statement reads:

    “There are misleading reports in the media pointing at official vehicles assigned to me by Federal Capital Territory Administration.

    Read Also: Abuja building collapse: FCT Minister orders  FHA officials’ arrest

    “All the vehicles assigned to me are no longer in my custody, I have returned them in good condition to the official residence of FCT minister in Life-camp, anyone who doubts should go there and verify, as well reach out to FCT Administration for more clarifications.

    “I am miffed by the unfounded reports apparently sponsored by weak minded individuals to undermine my academic, political, family and public reputation.

    “Indeed, as a female politician standing tall in the society, some persons must adverse me, but it should be in a concise manner, facts based than to weaken me.

    “While the allegations of hijack of FCT pilgrims slots is the writers’ imagination, because the procedure adopted by organs responsible for pilgrimage affairs cannot be subverted.

    “Our preparations and ratings in FCT Pilgrims Board received positive commendations in the preceding years. After my departure from office, my influence on the operations and its success is no more. Even then I had to go out of my way to insist a better accommodation be provided when I became aware of the challenge faced by some pilgrims in the past.

    “On my aides still in FCT Administration, I do not have any aides still in the Administration. The letter of appointment issued by the FCTA to special assistant on Special Investment Programme (SIP) will be terminated in August 2023, while special assistant on Climate Change is a staff of FCTA, who I engaged as a cost cutting measure. Both are employees of FCTA, not mine”.

  • I remain a bonafide member of NURTW, says Agbede

    I remain a bonafide member of NURTW, says Agbede

    Vice President of the National Union of Road Transport Workers (NURTW), Southwest, Alhaji Tajudeen Agbede, has described himself as a bonafide member of the union representing the region  in the current dispensation.

    He challenged those claiming he had joined the Lagos State Park Management Committee to show proof of his membership of the committee.

    Agbede was reacting to a news conference organised by some aggrieved elements in Osogbo, Osun State, where one Sina Olayiwola said he was no longer a member of the union.

    But Agbede, in statement at the weekend, insisted he was elected National Vice President in 2019 for a four-year term. He said he had neither resigned his position nor suspended from office.

    Read Also: Stop causing confusion in NURTW, Southwest leaders warn Baruwa

    He said: “So, those doubting my membership are ignorant of the union’s constitution. I challenge them to show proof of my letter of resignation or suspension, and show where my name was mentioned as a member of Lagos State Park and Garages Management Committee.

    “My position is that NURTW has problems in the Southwest, and the problems are caused by one man, Tajudeen Ibikunle Baruwa. And we cannot get the union back in the region unless he steps down. Our union is not operating. No revenue is coming from our region to the national headquarters, and you people are just there making noise. No state council is operating in the zone.

    “Again, some of those at the conference are shameless. They were in Abuja recently where one representative from the North spoke about removing the Southwest zone from NURTW, and none of them challenged his position. It is shameful.”

    Agbede advised them to join the progressives to move the union forward.

    “I implore these people to join us to reposition the union after the expiration of Baruwa’s tenure in August 2023. It’s just about two months away. I can assure them that their position and office in the union is not threatened. Baruwa is our common enemy; let us come together and get him out of the union.”

  • Adeleke not in charge, PDP member alleges

    Adeleke not in charge, PDP member alleges

    • ‘Nobody controlling governor’

    Gonvener of a campaign group for Osun State Governor Ademola Adeleke, Kehinde Raji, has alleged that the governor is not in charge of the state

    Raji, on his Facebook page, alleged that a certain cabal determines who is appointed by Adeleke and who should not. He lamented that the political appointees are helpless in doing their job constitutionally.

    He said: “Recently, a lot of revelations started unveiling. I will never, till I die, work against the interest of my people in Isale Osun and Osogbo at large. Some cabals rose up to only consider their loyalists for virtually all positions. The SSG given to us in Osogbo was relegated to an unimaginable position, never supported by the constitution. He looked helpless and can’t help nobody. I used to fight him until I realised the powers against him are more than him. I tried all possible efforts to speak to the powers that be with no response to my calls.

    “I personally will never go and prostrate for rewards we are naturally entitled to anywhere, a lot of my followers are disturbed without any changes to several complaints, my demand is let Mr SSG be accorded full respect of office, reward party faithful who have genuinely worked, and maintain fairness to all party faithful.”

    Read Also: Subsidy: Group urges Adeleke to provide palliatives

    But Secretary to the State Government, Teslim Igbalaye, denied the allegations, saying the claims lacked basis in truth and reality.

    The statement reads: “I want to strongly reject the allegation as lacking any basis in truth or reality. Governor Ademola Adeleke has since, assuming office, treated Osogbo as his second home by attending to the infrastructural upgrade of the capital city from roads to water and light, among others. Osogbo is receiving full attention for which our people are grateful.

    “It is equally false to posit that my office has been relegated by a cabal. There is no cabal in the government, and I wonder where Mr. Raji got his false narrative from. I remain an ever busy SSG who is handling many high profile state tasks, and whose office is functioning fully in line with best practices.

    I see the write up by Mr. Raji as a failed attempt to create a wedge between the people of Osogbo and the government. Within such a short period of time, Osogbo has benefited substantially from the present government and it is unfair to falsify reality for cheap political gains.”

  • Hajj 2023: NAHCON should decentralise medical team

    Hajj 2023: NAHCON should decentralise medical team

    • •Monarchs intervene as Osun pilgrims protest poor feeding

    Lagos State has called on the National Hajj Commission of Nigeria (NAHCON) to decentralise its medical team to the Holy land.

    The state, which commended NAHCON for a good administration of the 2023 Hajj, said whittling down power from the central medical team will ensure optimal performance during the period.

    Head of the Lagos State Hajj team and former Commissioner for Home Affairs, Prince Anofiu Elegushi, made the call in the Kingdom of Saudi Arabia after a successful airlifting of all pilgrims from Lagos State. Elegushi explained that the state, through its pilgrims’ board, has raised the bar in the administration of Hajj exercise and would love to collaborate with other stakeholders for more effective deliveries.

    He said: “We have been having a peaceful arrangement, though with little hitches, which is normal, but so far we have been able to control crowd and resolve other issues regarding the pilgrims. We have been able to airlift over 3,000 pilgrims to Saudi Arabia and for now, everything is okay for Lagos Pilgrims.

    “NAHCON has done well, but I think its best they reduce the power of the operation. Some states can perform better in certain areas, for instance medicals. Though NAHCON is always prepared, but looking at the number of people that came from Nigeria, their facilities may be overwhelmed.

    “If we can have medicals from the houses where pilgrims reside, it would reduce pressure on major medical infrastructure, they should at least release some powers to the state, I am sure things will go well if they can do that.”

    Elegushi however reassured the pilgrims of better arrangements in the coming days.

    Deputy Coordinator of the Lagos State Hajj team Abdullahi Jebe thanked Governor Babajide Sanwo-Olu for ensuring the right persons are positioned to carry out the Hajj operations for Lagos Pilgrims.

    Jebe noted that pilgrims in the last batch of have completed the visitation (Ziyarah) to some Islamic historical sites in the city of Madinah. According to him, the 11th batch, comprising 171 pilgrims, carried out the visitation between Thursday and Friday in fulfilment of requirements for the performance of the spiritual exercise.

    Meanwhile, pilgrims from Osun State have protested poor feeding by the Osun State Muslim Pilgrims Welfare Board.

    Read Also: Tinubu returns NEMA, NAHCON to VP Office

    Findings by The Nation revealed that the pilgrims have been poorly fed for three weeks since their arrival in the Holy Land, and they made several complaints to concerned bodies without changes. Pilgrims said they continue to eat boiled egg and bread in the morning, while they eat Semovita or Tuwo at night.

    The pilgrims resorted to buying foods from alternative sources which are not authorised, until Saturday evening when police arrested the alternative sources leaving them with no other options.

     In videos obtained by our correspondent, the pilgrims threatened to litter the bathrooms and toilet with the food.

     A pilgrim who identified himself as Saka said: “Since our arrival, they have been feeding us with bread and boiled egg in the morning, and poorly prepared Senovita or Tuwo with soup at night. We did not raise eyebrows because we are buying food elsewhere.

     “Meanwhile, police arrested the alternative food vendors yesterday and the food they brought yesterday was full of lumps, it is so disheartening, we paid for this Hajj and we are been treated like prisoners.”

     It was learnt that the Ataoja of Osogbo, Oba Jimoh Olanipekun and Timi of Ede, Oba Munirudeen Lawal, who are also on hajj, intervened and begged the pilgrims to exercise patience.

     Meanwhile, Administrative Secretary of the Osun State Muslim Pilgrims Welfare Board, Bolaji Sanni, in a statement reacting to the protest said: “A meeting was held this afternoon to appraise the situation and determine the cause of the problem. We discussed the lack of adequate local Yoruba delicacies in the food menu of the service provider, and the need for its inclusion in subsequent meals. The meeting also discussed the possibility of changing the caterers if there is no improvement.”

  • Abiru lifts 6,000 constituents

    Abiru lifts 6,000 constituents

    Senator Tokunbo Abiru (Lagos East) yesterday gave food packs to 6,000 vulnerable constituents across 16 councils.

    Beneficiaries included widows, unemployed youth, aged, women and people living with disabilities from 98 wards. The packs contained various food items produced by a reputable food manufacturing giant in Nigeria, and distribution held simultaneously in Ikorodu, Epe, Ibeju-Lekki, Somolu and Kosofe.

    Abiru said the programme was to relieve the burden of the less-privileged people in Lagos East. He added that he has been championing legislations, programmes and interventions that have lasting impacts on the larger number of his constituents.

    The lawmaker mentioned SAIL Innovation Lab, the first of its kind Innovation Lab in Lagos East, which would offer sustainable and globally competitive jobs and opportunities to young people of the district.

    Abiru urged parents, guardians and youths to avail themselves of the life transforming opportunities at SAIL Innovation Lab.

    Read Also: Sanwo-Olu, Abiru: we will fulfil campaign promises

    On the Ikorodu-Itokin road, which serves as a major road that links the Ikorodu to Epe and Ibeju-Lekki, and other parts of the country, Abiru assured that after the stabilisation of the road which was concluded recently, major rehabilitation will begin very soon. He also facilitated the first major rehabilitation of the 48-year-old road.

    Frontline political leader of the All Progressives Congress (APC) in Ikorodu, Prince Jamiu Adio Saka, who spoke for the party leadership in Ikorodu, said the party was very proud of the Senator.

    He said: “We are proud of him; we never had doubts about his abilities. When you look at his antecedents, it is not by accident. He is always wanting to do more and more for the people. Whoever does good shall always receive good things in return. We thank you very much, God bless you.”

    Some of the beneficiaries who thanked Abiru include Musbau Davis, a Person Living with Disability, Nofisat Adesanya, Biola Gabriel, an unemployed youth, Ogunyemi Abosede, a widow, Saidat Lawal, among many others.

    Dignitaries at the event were Alhaji Badru Enifeni, Dr Saheed Ibikunle, Special Adviser to the Senator on Constituency Matters, Mrs. Adebimpe Akinsola, Alhaji Rilwan Ishola Jinadu, Bishop SO Ayodele, Prince Adefarasin Hassan, Amid Oduborisa, Oriwu Club President, Ahlaja Abiodun Ogunniyi, among others.

  • My successor destroyed my education policy, says Aregbesola

    My successor destroyed my education policy, says Aregbesola

    Former Minister of Interior Rauf Aregbesola has said his educational policy as governor of Osun State would have produced 44,000 world beaters if his successor had not truncated the programme.

    Aregbesola spoke in Akure at a reception to honour him by the Old Students Association of Akoko Anglican Grammar School, Arigidi-Akoko, Ondo State.

    The former governor said he decided to replicate the late Chief Obafemi Awolowo’s education policy and programme because schools across the Western Region at that time taught and instilled ethics, social etiquette, morals and leadership that produced great individuals.

    Aregbesola recalled that his administration built 11 state-of-the-art 3,000 -capacity model secondary schools, in addition to rehabilitating and upgrading existing ones.

    He said: “By the time we left in 2018, 11 were fully operational. With each school graduating 1,000 students every year, and a combined output of 11,000, we should have not less than 44,000 world beaters now, if the programme had been sustained.

    “These schools were designed to produce world beaters and the fruits were already coming out. A student from our school topped the Senior Secondary School Examination while another topped JAMB examination shortly after we left. But our successor regrettably couldn’t continue with the tempo.

    “Our commitment then was from the understanding that there is no alternative to a sound public education foundation. All governments must therefore know that no matter how attractive private schools may be, they will never displace government-funded public education schools, if we really want to provide education to all the children and stimulate development from bottom up. It is a dream we must never give up on.”

    Read Also: ‘Aregbesola should explain why he didn’t vote for Tinubu, Oyetola’

    The Owa-Ale of Iyometa, Ikare-Akoko, Oba Adeleke Adegbite-Adedoyin II, said Aregbesola was still relevant in Nigerian politics and governance. He said those who think otherwise would soon be disappointed.

    Oba Adedoyin said Aregbesola was yet to reach the peak of his political career, adding that he still has many years to shine.

    ‘Why his policy failed’

    Former Special Adviser to former Governor Governor Adegboyega Oyetola on Education , Jamiu Olawumi, has berated Rauf Aregbesola for claiming his mega schools were the best.

    According to him, Aregbesola awarded contracts for 11 mega schools, but only 10 were completed. “The one in Iwo was never completed and never put to use till now”, he said.

    He added: “Aregbesola built the mega schools without a NEEDS assessment because all the schools, except one, are underutilised. The capacity of each school is 3,000, but the attendance is under 500. The structures are also failing due to structural defects.

    “The schools are non-residential, which is also a major factor discouraging pupils from across Nigeria. Meanwhile, the teachers he relied on to produce world beaters are owed 29 months’ salary.

    “The education policy of Aregbesola also converted single sex school into unisex schools. Example is Baptist Girls’ High School, which produced Hakeem Abdulramon as a pupil. We have about 17,000 pupils affected by the policy who cannot use their certificates because of the presumption of fraud.”

    Senator Ajibola Basiru, who also corroborated Olawumi, queried Aregbesola, saying: “How many world beaters did he produce before he left? Most infrastructure he left are not sustainable and some of them have structural defects. He must realise that he is no longer the governor of the state and he should move forward for the new governor to deal with governance.”  

  • First Lady pledges support for Nigeria’s efforts at attaining SDG goals

    First Lady pledges support for Nigeria’s efforts at attaining SDG goals

    •Senator Tinubu lauds Orelope-Adefulire’s many successes 

    The First Lady, Senator Oluremi Tinubu, has pledged her support for the nation’s quest at attaining the Sustainable Development Goals (SDGs).

    Senator Tinubu spoke at an event organised by the United Nations (UN) to present ”the 2023 UN SDGs Champion Award” to the Senior Special Assistant (SSA) to former President Muhammadu Buhari on SDGs, Princess Adejoke Orelope-Adefulire.

    Represented by the National Women Leader of the All Progressives Congress (APC), Dr. Betta Edu, the First Lady hailed Orelope-Adefulire for her exceptional commitment to the development of her community and the country.

    Highlighting presidential aide’s many successes, Senator Tinubu expressed delight about her choice for this year’s edition of the award.

    The First Lady said: “She (Orelope-Adefulire) is a consummate and an accomplished politician of great repute. She is a community and rural mobiliser, who has, unarguably, distinguished herself in her untiring and selfless service to her community and Nigeria as a whole.

    “Her foray into politics has, nonetheless, impacted positively on the people to the extent that she became a regular face in Lagos politics and Nigeria since 1999. 

    “From Lagos State, where she was the first woman to be elected into the State House of Assembly, she has a great record which gave the impetus to domesticate the Child Rights Act in Lagos State. This went a long way in considerably improving the lot of children in the state. 

    “When she became the Commissioner for Women Affairs in Lagos State, she treaded the political landscape so greatly that she effortlessly delivered on all her assignments on all fronts.

    “She became the Deputy Governor of Lagos State at a time a real team player was required and she contributed her quota to the transformative drive that catapulted the state to a mega city that we all are proud of today.

    “The position of responsibility as the Senior Special Assistant to the President on SDG became the clincher and ultimately raised her profile as a relentless servant who prioritises the interest of the people ahead of personal gains.

    “And it is this selfless approach to national assignment that has brought her this award today, and we are very proud of her.

    “Looking at her personality and what she has been able to achieve, it is indeed commendable and noteworthy that a global body as the United Nations with proven analytical approach to issues has found her worthy for this award. 

    “It further reinforces her dedication and commitment to the plight of her people in making SDG a success story in Nigeria.”

    Read Also: First Lady will better lives of women, girl-child, says body

    Responding, Orelope-Adefulire, who praised the UN and its agencies for their commitment to supporting development efforts in the country, assured all of her commitment to serving humanity.

    The erstwhile presidential aide urged all parents to support efforts at enhancing the female gender’s opportunities to access education, among others.

    She expressed delight about her choice for the award and commended her team for the successes recorded over the years by the country in its drive towards achieving the 2030 agenda for sustainable development.

    Orelope-Adefulire said: “Together, we have made significant progress in our collective desire to achieve the Sustainable Development Goals. As at December last year, as a country, we completed the long and tedious process of institutionalising the SDGs in Nigeria.”

     And we are one of the few countries to have done that.

    “All the institutional frameworks required to support the effective implementation of the SDGs in Nigeria are now in place. What remains is scaling the acceleration of implementation, which places Nigeria in the global map.”

    The erstwhile presidential aide, who spoke about the many achievements of the country in its efforts at attaining the SDGs, said Nigeria has achieved the integration of SDGs into medium and long-term national and states development plans, out of which 19 of the nation’s 36 states have been completed.

    She added: “Hopefully, very soon, all the 36 states and the Federal Capital Territory (FCT) will be completed. The intention is to integrate the SDGs into the short and longer term plans of the subnational governments.”

    Orelope-Adefulire said the idea was to ensure harmonious development planning between the states and the Federal Government, including its ministries, departments and agencies (MDAs) to allow for the successful implementation of the SDGs.

  • Tributes for Sanwo-Olu at 58, Gbajabiamila at 61

    Tributes for Sanwo-Olu at 58, Gbajabiamila at 61

    • Tinubu, others felicitate Lagos governor, CoS

    President Bola Ahmed Tinubu yesterday felicitated Lagos State Governor Babajide Sanwo-Olu and his Chief of Staff, Femi Gbajabiamila, on their birthdays.

    Both Governor Sanwo-Olu and Gbajabiamila celebrated their 58th and 61st birthdays yesterday.

    On his verified Twitter handle, @officialABAT, the President described both celebrants as outstanding public servants and true patriots, highlighting their shared birth dates.

    “On this special day, I extend my warmest wishes and heartfelt congratulations to my Chief of Staff, Femi Gbajabiamila (@femigbaja), and the Governor of Lagos State, Babajide Sanwo-Olu (@jidesanwoolu).

    “Two patriots and exceptional public administrators who, in an interesting coincidence, arrived the world on the same date.

    “Over the years in different capacities, they have both distinguished themselves with an unparalleled work ethic, ability to navigate complex challenges and sound judgment, especially in moments of uncertainty.

    “Each has contributed to the progress of the nation, particularly by setting powerful examples of creative and responsible executive leadership and the instigation of growth and development through sensible legislation and enabling policies.

    “I thank them for their effort and partnership while praying that the year ahead will be filled with good health, greater success and happiness,” the President said in his tweet.

    Also, Governor Sanwo-Olu described Gbajabiamila as a worthy ambassador of Lagos State, a patriot, respected parliamentarian, and committed public officer.

    In a statement at the weekend by his Media Adviser, Mr. Gboyega Akosile, the governor noted that the former House of Representatives Speaker’s tenure stabilised the Green Chamber for four years and showed his visionary leadership and pragmatic approach to politics and governance.

    Gombe State Governor Inuwa Yahaya described Gbajabiamila as “a great patriot, truly progressive and distinguished leader”.

    Read Also: Gbajabiamila invaluable asset to Nigeria, says Abbas

    House of Representatives Deputy Speaker Benjamin Kalu said: “…Your unwavering passion for service and tireless efforts in uplifting our nation have made a significant impact on the lives of countless individuals. Throughout your career, you have demonstrated remarkable leadership qualities, wisdom, and a genuine concern for the welfare of the people.”

    The Director General of the Institute for Legislative and Democratic Studies (NILDS), Prof. Abubakar Sulaiman, said: “Throughout your tenure, you have exemplified integrity, wisdom and a steadfast resolve in addressing the challenges that come your way.”

    Also, Lagos State House of

    Assembly Speaker Mudashiru Obasa described Sanwo-Olu as an exemplary governor with a sense of purpose and commitment to the ideals that made the state great.

    To Gbajabiamila, the Lagos Speaker said: “Since he assumed office as Chief of Staff to President Tinubu, Mr. Gbajabiamila has displayed commitment, passion, and visionary leadership in assisting the President to steer the ship of Nigeria in the right direction, which are evident in the daily wins of Mr. President’s four weeks in office.”

    Also, the member representing Pankshin/Kanye/Kanam Federal Constituency of Plateau State, Yusuf Adams Gagdi, described Gbajabiamila as a pan-Nigerian who has worked for uplifting Nigeria and Nigerians.

  • Why DisCos are bent on electricity tariffs increase

    Why DisCos are bent on electricity tariffs increase

    • •AEDC: fluctuation of naira exchange makes upward review inevitable

    Electricity tariffs will rise from Saturday despite the caution from Labour, manufacturers and consumers.

    The indication came yesterday from one of the electricity distribution companies which announced that only a hike in electricity tariffs could keep it in business.

    Other DisCos are expected to follow suit.

    The Abuja Electricity Distribution Company (AEDC), which covers the Federal Capital Territory (FCT), Niger, Kogi and Nasarawa states, attributed the review to the fluctuating exchange rate.

    The AEDC covers 133,000 square kilometres.

    In a statement yesterday, the distribution company said the upward review became inevitable because of the fluctuation of the naira in the exchange rate market.

    At the close of business last week, the naira traded at N756 per dollar at the Investors and Exporters (I&E) Window.

    The development followed the floating of the naira by the Central Bank of Nigeria (CBN) and its subsequent directive to commercial banks to sell forex freely at market-determined rates.

    It was the first time in years that the local currency would be allowed to trade at a rate determined by market forces.

    The AEDC statement reads: “Effective July 1st, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.

    “Under the MYTO 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption.

    “For customers within bands B and C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per kWh while bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.

    “For customers with a prepaid meter, we encourage you to consider purchasing bulk energy units before the end of this month as this will allow you to take advantage of the current rates and potentially make savings before the new tariffs come into effect.

    “For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.”

    Last week, an official of the Nigerian Electricity Regulatory Commission (NERC) official confirmed the ongoing review of the Multi-Year Tariff Order (MYTO).

    But the official said a review could be upward or downward.

    The official, who craved anonymity, said the commission has commenced the review and no one knows its outcome until the process is completed.

    It said NERC will make public the decision from the review. The Commission was yet to fulfil that promise last night.

    The commission has a mandate to carry out minor and major tariff reviews every six months.

    The major determinants of the review are mostly inflation rate, exchange rate and the price of gas.

    The last tariff review was in December last year. It was done quietly.

    Read Also: Govt unaware of planned electricity tariffs hike

    Consumers and operators in the Nigerian Electricity Supply Industry (NESI) have disagreed on the hike.

    To the consumers, because the power supply in the country remains epileptic, there should be no tariff increase. But the NESI continued to push for a cost-reflective tariff.

    Over the years, the Federal Government had frozen the tariff with different interventions from the CBN.

    Payment of subsidy on electricity ended under the administration of former President Muhammadu Buhari.

    Why manufacturers, Labour are kicking

    MAN’s Director-General Segun Ajayi-Kadir explained the opposition of manufacturers and other private operators to the impending hike in tariff, pointing out that in the last eight years, electricity tariff went up by 186 per cent.

    He said the government’s indebtedness of N75 billion in unpaid electricity bills underscored how burdensome the cost of electricity had become.

    A statement by the MAN boss at the weekend said a higher electricity tariff will directly increase the cost of production for manufacturers.

    The statement reads: “Already, we have energy constituting between 28-40 per cent in the cost structure of manufacturing industries. 

    “You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery, and chemicals manufacturing.”

    Manufacturers’ profit margins, Ajayi-Kadir also warned, will reduce.

    Also kicking against the tariff hike, the Nigeria Labour Congress (NLC) described the move as insensitive and callous, saying it reflected an organised indifference to the well-being of consumers.

    NLC President Joe Ajaero registered the Labour Centre’s opposition in a statement in Abuja last Thursday.

    The statement reads: “The plan to increase electricity tariff by 40 by July 1st is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones.

    “The massive increase is explained away as a response to the over 100 per cent increase in the pump price of premium motor spirit (PMS).

    “Details reveal a movement in inflation from 16.9% to 22.41 (threatening to needle 30), and a shift in exchange rate from N441 to N750.

    “We believe not even these figures are a justification for this reckless proposed tariff increase.

    “The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic.

    “The service providers in spite of sundry support have not been able to meet the threshold of 5000 megawatts. 

    “Coupled with this, there have been surreptitious increases without notice in violation of statutes.

    “The inherent risk in the new regime of tariff is that there is no control, implying that by August, consumers will pay new rates.

    “The other risk is that by the time other products or service-rendering entities come up with their new prices or rates, the ordinary person would have been compacted into dust.

    “We would want to advise apostles of the market who have called NLC all sorts of names to check their conscience.

    “The rate at which they are going is highly combative and combustible. With the contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones in addition to other costs/tariffs on the way, life in Nigeria could truly be Hobbesian.

    “The market economies which the market fundamentalists seek to emulate have in place socio-economic safeguards which we do not have.

    “In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety.”

  • Experts optimistic despite foreign reserves drop to $34b

    Experts optimistic despite foreign reserves drop to $34b

    Finance and economic experts are optimistic that Nigeria’s dwindling foreign reserves may start a slow recovery as policy measures by the government combine to halt the long-running depletion of the nation’s external reserves.

    Nigeria’s foreign reserves dropped by $239.74 million to close the weekend at a 22-month low of $34.35 billion, its lowest since September 3, 2021.

    However, Nigerian Upstream Regulatory Commission (NUPRC) also reported about 15 percent increase in Nigeria’s crude oil production, a major improvement in the recent period.

    Aggregate crude oil production rose by 14.7 percent in May 2023 to 1.43mb/d as against 1.25mb/d reported in April 2023.

    The latest foreign portfolio investment (FPI) report at the weekend indicated that foreign portfolio inflows into Nigeria recorded a dramatic recovery from a record low to reach its highest level in one and half years.

    The report, released at the weekend by Nigerian Exchange (NGX), indicated a significant improvement in foreign investors’ participation in the Nigerian investment market. Total FPI transactions rose by 338.72 per cent, driven by a significant 649.6 per cent increase in inflows, the highest since November 2021.

    Experts said while the foreign reserves might remain under pressure in the meantime due to the usual policy time lag required for transitional effects, there were credible indications that the recent policy mix by the new government could stop the drift and start the much-needed recovery.

    They said a mix of increased oil receipts, foreign investments, remittances and reduction in foreign exchange (forex) management could boost foreign reserves in the medium to long term.     

    Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said the short-term implications of the managed-float policy of the Central Bank of Nigeria (CBN) may require that it remains the main supplier of forex to the market, which could further impinge on the foreign reserves.

    He, however, noted that the current liberalization policy and the government’s efforts at bolstering oil production would improve foreign reserves in the near future.

    “In the min to long term, the liberalization policy should attract much-needed foreign direct and portfolio investments. Increased trades will also drive inflows. Oil production should also boost the foreign reserves going forward,” Amolegbe, a former president of the Chartered Institute of Stockbrokers (CIS) said.

    President, Association of Capital Market Academics and Professor of Capital Market Studies,  Uche Uwaleke, said the outlook in the immediate period if “grim”, given that the only way the exchange rate can be stabilized at the current level is by substantial intervention by the CBN, which can only happen at the expense of the external reserves.

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    “So, expect depletion in external reserves in the near term because the expected inflows of foreign direct investments will not happen overnight,” Uwaleke said.

    Analysts at Cordros Capital Group said they expected the re-introduction of the “willing buyer, willing seller” model at the Investors & Exporters (I & E) Window to influence the exchange rate direction.

    “Nonetheless, while the CBN’s abolishment of its multiple forex windows is positive in boosting foreign investors’ confidence, we think they will adopt a wait-and-see approach, for now, looking for signals on the CBN’s plans to start clearing the forex backlogs and boosting forex supply to support the market in the near term,” Cordros Capital stated.

    The naira depreciated by 13.9 per cent to N770.17 per dollar at the I & E Window (IEW). Total turnover however dropped by 31.0 per cent to $513.88 million, with trades consummated within the N446.32 and N815.00 per dollar band.

    Analysts at Cordros Capital noted that given the government’s efforts at curbing oil theft and pipeline vandalism, crude oil production will maintain its slow increases in the near term. Analysts estimated Nigeria’s crude oil production to settle at 1.53mb/d in 2023, indicating a higher oil production level relative to the 2022 actual production volume of 1.37mb/d.

    They however cautioned that aggregate production is unlikely to reach its pre-pandemic high of 2.10mb/d without investment in new production capacity, which may continue to limit the government’s oil revenue performance in the short term.

    Nigeria’s forex reserves had lost more than $2.86 billion in nearly six months of a free fall. Official forex reserves status data report obtained from the CBN indicated that forex reserves had depleted from $37.211 billion by January 16, 2023, to $34.35 billion at the weekend, its lowest since September 3, 2021.

    Nigeria’s external reserves, which closed in 2022 at about $37.08 billion, peaked at $37.211 billion on January 16, 2023. It has since been on the decline.