Tag: tinubu

• By Temitope Ajayi

As the new year 2024 begins with a positive outlook, Nigerians can look forward to a great and economically rewarding year as the Federal Government is set to launch a massive consumer credit system in the country.

While seeking the mandate of Nigerians during the last electioneering season, President Bola Tinubu was big and loud on the catalytic effect of consumer credit in driving economic recovery, growth and development, in boosting industrial production and as a strong weapon against corruption.

Long before he declared for the Presidency of Nigeria, President Tinubu had been a big advocate of consumer credit. He made it a key highlight of his remarks at the 2016 edition of the Bola Tinubu Colloquium in Lagos where he called out Chairman of Zenith Bank, Jim Ovia; his UBA counterpart, Tony Elumelu, and other bankers in attendance to begin to rethink consumer credit in Nigeria and charged them to develop good banking products in this regard.

In ‘Financialism: Water from Empty Well’, a book he co-authored with Brian Browne, several pages were devoted to how consumer credit can propel unprecedented growth and shared prosperity. To demonstrate his absolute commitment to achieving this objective and a major campaign promise clearly enunciated in his Renewed Hope Agenda for a better Nigeria, President Tinubu has set in motion the process to entrench consumer credit as one of the building blocks of a virile and productive economy.

Against this backdrop, the Presidential Council on Industrial Revitalisation, on December 20, 2023, just before the Christmas holiday, established a Technical Working Group to develop the needed framework to enhance consumer credit in Nigeria. 

The Tinubu-led administration in the words of the Minister of Industry, Trade and Investment, Doris Uzoka-Anite, recognises the importance of consumer credit and its linkage to market efficiencies.

“An efficient consumer credit system is a highly essential component of successful economies, as it works to improve market efficiencies and fill in gaps in consumption and productivity by providing consumers immediate access to credit, allowing them to purchase ahead of ability,” the Minister said.

At the inaugural meeting of the Technical Working Group on Consumer credit system that had other members including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, Minister of Communications and Digital Economy, Bosun Tijani, Uzoka-Anite lamented how the absence of consumer credit had shrunk the productive capacity of the economy and hampered financial inclusion.

“The absence of a well-structured consumer credit system has been a significant impediment to financial inclusion and economic prosperity,” the Minister of Industry, Trade and Investment declared.

Given the current state of the economy and the strong push by the government to revamp it, the setting up of the Technical Working Group by the Presidential Council on Industrial Revitalization can be said to be timely and strategic. The Technical Working Group among other things will draw up a working proposal and implementation method on how the country can achieve a viable institutional and regulatory framework that will significantly open up the consumer credit landscape. 

According to Uzoka-Anite, Nigeria has numerous financial institutions and credit schemes, but many Nigerians still face substantial hurdles in accessing credit due to stringent eligibility criteria, high interest rates, identity-related challenges, fragmented data sources for proof of livelihood and financial worth, lack of awareness or understanding of credit processes, and inadequate credit available for lending. To make sure the agenda of President Tinubu is established on a solid ground and for seamless take-off of the credit scheme, the government has brought together various Ministries and agencies of government that have roles to play to work collaboratively for a successful execution.

The Technical Working Group draws its members from the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), National Identity Management Commission (NIMC), the National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Federal Competition & Consumer Protection Commission (FCCPC) and the Bank of Industry (BOI) amongst others. It must be said that because of the importance attached to the scheme by President Tinubu, the TWG set for itself a five-month timeline to achieve its objectives. This means by May 2024, a comprehensive, life-changing and an all-encompassing consumer credit system will be launched.

Uzoka-Anite who is the Vice Chairman of the Presidential Council on Industrial Revitalisation spoke on the specific objectives and the tasks before her Committee to include: “increasing consumer credit uptake in Nigeria, enabling a sustainable credit system for the country in line with global best practices, and enhancing the supporting infrastructure (technology, data, financial institutions, global partners) to boost credit operations and equip players in the industry.”

Read Also: Group scores Tinubu administration high

In delivering on its core mandate, the TWG has adopted, according to the Vice Chairman, a holistic consultative approach that will draw on the experience, knowledge, and expertise of the credit ecosystem to understand the issues within the industry and define workable solutions to addressing them.

As he declared in his New Year National Broadcast, President Tinubu committed himself to removing every obstacle that impedes economic recovery and competitiveness of the business environment. In the new year speech, he also assured that his administration would race against time to deliver necessary reforms that will make life better for all Nigerians. This move by the government to recalibrate consumer credit system is one important reform that will give a new lease of life to Nigerians to be able to own the consumer goods they desire without the burden of having to pay all at once.

The strategy will also be calibrated to promote local industries and boost productivity among Nigerians towards achieving the lofty economic growth and development promises of the Tinubu administration, as Nigerians will be encouraged to patronise local goods and services. This way, the velocity of credit will be enhanced and the dreams of President Bola Ahmed Tinubu for the transformative power of credit and capital will be achieved.

-Ajayi is Senior Special Assistant to the President on Media & Publicity

The Director-General of Michael Imoudu National Institute for Labour Studies (MINILS), Ilorin, Comr. Issa Aremu, has hailed President Bola Tinubu on his  commitment  to a new minimum and living wage.

In his New Year address, President Bola Tinubu had promised a new national living wage for industrious workers.

 Aremu, in statement, praised  the President for his commitment to wage-led growth strategy, economic recovery  and poverty eradication through payment of adequate living wages in 2024.

 The Director General urged  states and local governments, employers of labour and organised labour to align with vision of  Tinubu in ameliorating the suffering of masses.

 Aremu  recalled that 2024 expected tripartite wage negotiations would be the 6th of such national minimum wage review since 1981,  (N125) 1990, (N250) 2000, (N5,500) 2011 (N18000) and  2018 ( N30,000) noting that it was remarkable that the President acknowledged the reality of high costs of living and inflation caused by petroleum subsidy removal.

He said the President has set the stage for  robust constructive collective bargaining for new wage review in line with Nigeria’s labour laws and relevant conventions of the International Labour Organisation (ILO) .

 Aremu said the pronouncement on wage improvement further points to Tinubu’s  labour- friendly disposition, referring  to his presidential campaign council in which he dedicated a Directorate to labour, the only Presidential candidate to do so.

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 He  praised the 10th National Assembly leadership for improving on the budget of the Ministry of Labour and Employment, adding that budgetary allocations must tally with the vision of the President on combating youth unemployment and underemployment.

 The  DG also commended the  Minister of State for Labour and Employment, Barr. Nkeiruka Onyejeocha, for her bold sanctions against private companies and employers that disregarded occupational health and safety standards of workers in the world of work last year.

 In a related development, the Director General  urged  the staff and management of MINILS to intensify labour education in line with the targets and deliverables set by Ministry of Labour and Productivity in ensuring the 8-point Renewed Hope  agenda of  Tinubu in the new year.

A former Ogun state governor, Olusegun Osoba, has said the current administration led by President Bola Tinubu cannot avoid borrowing even if it so desired.

In an interview with Arise News, Osoba defended the current government, asserting that it inherited an empty treasury from its predecessor, which resorted to borrowing, even for salary payments.

While not wholly endorsing the culture, he explained that the Tinubu-led government must necessarily engage in it for the time being if it must deliver.

He said: “When treasury is empty, when the previous administration was borrowing to pay salaries, what else can you do except to borrow for now to fill the gap? That does not mean that the culture of borrowing will go on forever and ever. It’s only serving us for now,” he said.

Speaking on the issue of cash stockpile by Nigerians, resulting in the scarcity of the nation’s legal tender, Osobo shared President Bola Tinubu’s initiative to tackle the situation.

He said: “During my discussion with President Tinubu on Christmas Day, he disclosed to me that he is preparing a document to encourage Nigerians to bring out hidden funds that are currently out of the banking system and causing cash scarcity.”

He expressed that more support for the presidency’s decision to postpone visitation to the victims of the Christmas Eve attack in Plateau state.

About the opposition parties’ visits to the impacted communities, he noted they were merely acting in their capacity to establish strong, critical engagements that will aid the ruling party in examining their remarks and declarations to determine whether any information uncovered will be advantageous.

Osoba stated: “There is no Nigerian who will not cry for what happened in Plateau, the unnecessary killing. We need to have a well-organized broad-based policy to curtail these intercommunal conflicts that are beheading us all over the country. I assure you that Tinubu is very much on top of it.

“On the issue of token appearance, it is not just a token. He must be ready when he is going to go there, it is to tell them the steps and actions that he is going to take to contain this situation that has been going on.

“For the opposition parties, that is their role. There must be robust engagements. If they don’t engage us robustly, how would we know some of our shortcomings and challenges? When Obi went to Plateau for a token appearance, it was part of the robust engagement.

“When we were in ACN we robustly engaged Goodluck Jonathan heavily. So, they are playing the role expected of the opposition. What do you expect of them? We are in government and they throw punches. We would defend the punches and where necessary, we give a little brushing of their faces too.

“But I agree that they are within the barns of opposition in a way that they are being critical and we analyze their statements, and reactions and see if whatever we find will be useful.”

Read Also: Why Tinubu suspended NSIPA boss Halima Sheu – Official

He said the immediate past administration made no allocation for petrol subsidy, stressing Tinubu would have contravened the law had he done anything other than declaring its end on assuming the mantle of leadership.

“Yes, there is hardship and problems. We expected it. The time president Tinubu assumed office, there was not a single allocation for oil subsidy. The previous administration did not allocate a kobo. What else did you expect from the president? He had no choice than to announce the removal of subsidy, if not he would have bridged the law immediately, he was sworn in if he continued with the subsidy.”

As for the effect, Osoba indicated it was folly to expect differently, noting: “Naturally, the multiplication effect of the oil subsidy started immediately. It is common sense. I don’t have to be an economist.”

He added: “Cost of transportation shot up by almost 500-1000 percent. That naturally would affect every aspect of our lives. This I know very well and I am aware. It has affected every area and there is no segmentation. Both the poor and Rich, even in the private sector.

“Naturally, we don’t expect people to hail the government in every aspect. You will hear, go back home and then rearrange things.”