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One Year Anniversary: Afenifere to Tinubu; Rejig your Economic policies …Says high inflation, increased poverty, among others

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President Bola Ahmed Tinubu

 

By George Mgbeleke

The pan-Nigerian social welfarists group, Afenifere, has urged Nigeria’s government to rethink its economic policies, citing high inflation and increased poverty as major concerns affecting citizens.

In a release signed by Afenifere’s Publicity Secretary, Prince Justice Faloye and made available to journalists, the group warned that if the Federal Government does not change its current economic policies during the first year of its scorecard review, the ongoing economic turbulence may persist.

It claimed it would further impoverish the citizens in the following years.

The group advised President Bola Tinubu’s administration to pay heed to the yearning of the masses and alleviate their plight.

It stated that the economy had experienced severe turbulence in the one-year administration of Tinubu.

Afenifere called for a better understanding of the economy to stop the alarming rate of inflation, devaluation, increasing unemployment, homelessness, and poverty.

“Firstly, it is an illogical economic belief that the subsidy removals and tax increases that remove money from the economy will stimulate economic growth. Therefore, the adoption of flawed neo-liberal theories of subsidy removal and unbridled tax increases must be stopped since they always contract the economy. Ours is no exception as companies are folding up and leaving due to fuel and electricity costs skyrocketing, fuelling galloping inflation and fall of real incomes.

“In apparent over-reliance on a one-sided monetary policy, this current government has been hiking interest rates with the Monetary Policy Rate standing currently at 26.25 per cent from 18.5 per cent a year earlier. The Central Bank of Nigeria also raised the Cash Reserve Ratio to 45 per cent from its 32.5 per cent position a year ago,” it said.

Recall that President Bola Tinubu announced the removal of subsidy on petrol in his speech at his inauguration on May 29, 2023.

Meanwhile, on June 14, 2023, the Central Bank of Nigeria announced the unification of all segments of the forex exchange market, causing the local currency to depreciate from N463.38/$ on June 9 to N632.77/$ at the official forex market.

The naira has further weakened to N1,482.63 on May 27.

Afenifere emphasised that those policies were crowding out the productive sectors of the economy from much-needed loans.

According to the group, hikes in interest rates are not effective in curbing inflation for the twin reasons that whatever loans are withheld from the private sector by the restrictive policies are flowing to the government, which is spending recklessly and pumping the same funds right back into the markets.

It stated, “Energy costs are crucial to the modern economy since energy is an essential ingredient for almost all human activities, so (they) are subsidised by most nations, while querying the need to remove fuel subsidies when, according to the International Monetary Fund, the global average for fuel subsidies to the Gross Domestic Production is 7.1 per cent, compared to ours, that was about two per cent.”

The group noted that the ratio of all subsidies to government expenditure for over 200 million people was about 25 per cent, which was half the cost of governance of 50 per cent enjoyed by just one per cent of the population.

“Past governments failed to prioritise local refineries for petrol and gas production for thermal plants. The national electricity plan intended to subsidise private investors initially and then raise prices to recover investments. However, without significant new investments, the government increased electricity costs, profiting from existing resources. This imposed high energy costs, hindering productivity and job creation.

“The policy of floating the naira without moderating the excesses of the free-market speculators and hoarders, and a nation addicted to capital flight, is questionable economic logic. With 90 per cent of our foreign exchange derived from oil and gas, stopping government funding of the forex market was bound to lead to massive devaluation as witnessed.

“Our collective patrimony is not only meant to fund the political class’s excessive cost of governance but to stimulate the economy and abundance of life to the greatest number of citizens. This is the Afenifere standard of governance,” it stated.

Meanwhile, Afenifere also stressed the need for a stable foreign exchange market to steady domestic prices, enhance investor confidence, and attract both local and foreign investments. It criticised expensive efforts to lure direct foreign investors, noting that existing investors were stagnant or withdrawing due to unfriendly investment conditions.

Afenifere urged the government to prioritise accurate accounting of oil and mineral extraction and strengthen national security to protect economic sites, proposing shifting focus from elite protection to implementing multi-tiered policing as a national priority.

“Unfortunately, it appears that President Tinubu is still possessed by this mindset of taxing the poor to transfer to the privileged, especially cronies. We are being inundated with all sorts of hare-brained tax schemes like communication, and cyber security taxes,” it noted.

The group explained that concentrating solely on elevating the tax-to-GDP ratio from 6.7 per cent to 18 per cent is akin to transferring resources from the less affluent to the affluent.

“The informal sector, which constitutes most of our employment and income, lacks substantial government social support. This means that the increased tax revenue is likely to disproportionately benefit the wealthy, such as civil servants and politicians, instead of addressing the needs of the broader population.

“The administration’s economic strategy lacks foresight and prioritises costly projects over beneficial investments. For instance, choosing the Lagos-Calabar Coastal Highway over the railway system reveals misplaced priorities. Allocating N20 trillion to cronies for the highway instead of addressing homelessness or investing in productive infrastructure is concerning,” it stated.

According to Afenifere, to improve revenue and promote development, the country needs transparency in oil revenue management and the government should focus on building railways like Lagos-Calabar, Ilorin-Yola, and Sokoto-Maiduguri, adding that those projects offer high returns, create better-paying jobs, and reduce reliance on the informal sector.

“At the end of the first year of Tinubu’s administration, the question is whether our continued arrested economic development is due to corruption or incompetence. From failure to mine and refine crude oil to unjustified loans, and excessive cost of governance, it is the people that are made to suffer the tragic consequences. This economic dispensation of Monkey dey work, baboon dey chop must be halted before the sociopolitical fabric of Nigeria is destroyed beyond repair,” Afenifere stated.

 

Business & Economy

Insecurity: CSO urges Govt, Stakeholders to provide needed help to PWDS

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By Joshua Kingsley Kenneth

For over two months Nigerians have been awashed with the threat by the United States President, Donald Trump, to send in troops into Nigeria, to identify and eliminate terrorists and so-called bandits killing citizens and sacking communities.

The statistics have dwelt largely on the gruesome killings of unarmed and innocent Nigerians in different parts of the country- from Benue to Taraba, Borno to Kogi States, just to list a few.

Not long ago the country again woke to a stark reminder of the abduction of school with 300 kidnapped from a Catholic school in Niger State, and another 24 taken hostage from Government Girls Comprehensive secondary school in Maga in Kebbi state.

Added to this horrendous list of insecurities and woes are the killings and abductions in Kwara State, and the general air of danger and fear that has gripped the country resulting in unquantifiable economic losses and a credibility crisis on the part of the federal government.

It therefore did not come as a surprise to many, especially victims of these dastardly attacks, when the United States through the activism of some of its lawmakers inspired President Trump to move against Nigeria, especially seeing that the federal government had failed in its primary responsibility of protecting lives and properties of citizens.

Whilst JOSHUA K B DISABILITIES RIGHTS AND SUPPORT INITIATIVES, a non-governmental organization committed to promoting the rights, welfare and wellbeing of Persons With Disabilities (PWDs) in the country joins the millions of well meaning and right thinking Nigerians and the international community in condemning the heinous and barbaric acts of killings, abductions and the insecurity engendered by terrorists, bandits, non-state actors, other criminals, their financiers and supporters whoever and wherever they may be, we call for urgent attention to Persons who may have been disabled by this phenomenon.

We call on the federal government, especially the Ministry of Humanitarian Affairs, National Emergency Management Agency, state governments, the armed forces and other intervention partners to urgently identify victim-PWDs from these crises and provide such interventions that would help them integrate into the economic and political lives of their immediate communities and the country at large.

We are convinced that such quick interventions would prevent a stage two crisis such as depression, low self esteem, poverty, and a host of other debilitating post crisis trauma that would further deteriorate their situations.

We also call on military authorities to provide meaningful economic, social, material and other forms of assistance and interventions to service men who are now members of the PWDs community following their sacrifices on the line of duty.

As an organisation focused on advancing the course of PWDs, JOSHUA K B DISABILITIES RIGHTS AND SUPPORT INITIATIVES uses this opportunity to sensitise relevant authorities, CSOs and other stakeholders that the various violent armed conflicts and attacks in the country has caused physical harms, leading to new disabilities or worsening existing conditions.

It has caused families to flee homes, lose livelihoods and resources, forced many, especially old and PWDs, into begging and extreme hardship.

JOSHUA K B DISABILITIES RIGHTS AND SUPPORT INITIATIVES also calls the attention of stakeholders to the struggle PWDs to escape danger due to inaccessible environments, making them targets for abuse, neglect, and exploitation during crises.

Systems and measures must be put in place to pull PWDs from severe neglect, discrimination, and lack of basic needs like food and healthcare which they face in camps and displaced.

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Business & Economy

FG , NSITF , others throw weight behind Social Security Bill …As Senate assures stakeholders of acceptable law

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Senate in session in the chamber

By Our Correspondent

The Federal Government and the Nigeria Social Insurance Trust Fund ( NSITF) Monday threw weights behind bill on Social Security Trust Fund which seeks to harmonize the existing NSITF Act and the Employees’ Compensation Act (ECA) 2010 for better service delivery.

This is as the Senate through its committee on Employment , Labour and Productivity , assured all stakeholders at public hearing organised for their inputs into the proposed legislation , very acceptable law for all .

The bill sponsored by Senator Cyril Fasuyi ( Ekiti North) , primarily seeks to expand the scope of NSITF into social security through harmonization of NSITF Act of 1993 and the Employees Compensation Act 2010 which will transformed NSITF to Nigeria Social Security Trust Fund ( NSSTF).

In his presentation at the public hearing , the Managing Director and Chief Executive Officer of NSITF , Mr Oluwaseun Faleye, commended the Senate for what he termed a “strategic and forward-looking legislative intervention.

The new bill according to him, marks a decisive step towards modernising Nigeria’s social security framework in line with global standards, especially the International Labour Organisation (ILO) Social Security (Minimum Standards) Convention, 1952 (No. 102), and the Tripartite Consultation Convention, 1976 (No. 144).

One of the most significant elements of the Bill, according to him, is the repeal of both the NSITF Act of 1993 and the ECA 2010.

Their co-existence, he explained, had resulted in operational ambiguities, particularly after the Pension Reform Act (PRA) 2014 transferred contributory pension functions from NSITF to the National Pension Commission.

“The consolidation of the two Acts into a single, coherent statute is timely, necessary, and commendable. It eliminates duplication, resolves conflicts, and strengthens the legal framework of the Fund.

“The Bill’s expansion of social security coverage to include informal sector workers and self-employed persons is a historic step towards inclusive protection for all categories of working Nigerians”, he said .

Despite its broad support for the Bill, the NSITF raised concerns about what it described as the “misapplication” of the term Board throughout the document. Faleye warned that using the word to refer simultaneously to governance, oversight, and day-to-day administrative functions could create confusion and weaken accountability.

“The Board meets quarterly, while daily operations are under the Managing Director. The Bill must distinguish clearly between the Governing Board as oversight body, Management as administrators, and the Agency as the implementing institution,” he said.

He recommended that the Bill adopt clearer definitions similar to those used in the Federal Inland Revenue Service (FIRS) Act, where the Board’s role is separated from that of the Executive Chairman, who functions as the Chief Executive and Accounting Officer.

Faleye concluded by reaffirming NSITF’s full support for the passage of the Bill, describing it as “progressive, timely, and aligned with global best practices.”

In his remarks , the Minister of Labour and Employment, Alhaji Muhammadu Maigari Dingyadi described the move by the Senate on the proposed law as very beautiful idea .

He however urged the Senate through its committee on Labour to arrive at safe and acceptable position for all stakeholders by striking the required balance between powers of management team and that of the board .

Though the Nigeria Labour Congress ( NLC) and Nigerian Employers Consultative Association ( NECA ) , kicked against the bill, but NLC led by its National President, Joe Ajaero , later succumbed, saying ” we are not here for we no go gree, we no gree .. ”

” Since many of the other critical stakeholders have supported the bill, NLC is not hellbent in opposing it . But the grey areas we identified during presentation , should be addresed by the committee .

After exhaustive deliberation at the public hearing , the Committee , Chairman , Senator Diket Plang ( Plateau Central ) , assured Nigerians of very acceptable law on social security trust fund very soon .

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Business & Economy

Electric Buses To Crash Cost Of Transportation In Abia,says Gov. Otti

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Gov.Alex Otti of Abia State

By Our Correspondent

Disturbed the increasing cost of livelihoods suffered by Nigerians as a result of subsidy withdrawal by the federal government, Abia State Governor Dr Alex Otti has assured Abians and the residents of Abia that the electric buses which the State Government is bringing into the State will further crash the cost of transportation in the State.

Governor Otti who made the declaration at the November edition of Governor’s Media chat held in Government Umuahia, said electric buses have already started arriving in the State,adding that before the end of the year, the buses would be put on the road for peoples’ use.

He explained that the buses will reduce the cost of transportation,thereby easing means of transportation as well as making life easier for Abians

“Before the end of the year,our electric buses that have started arriving,will be put on the road and that will further crash the cost of transportation in Abia”

The Governor further explained that the Government has also intensified effort on revenue drive, especially those who are owing the government, to ensure that they pay.

” As a government we do not look at faces. As a rule we do not move with touts.As a government sometimes we may intervene and even when we intervene,the defaulters must surely pay”

Governor Otti, expressed appreciation to the people of Abia for their continued support and cooperation,adding that government has continue to pay attention to governance and the government efforts have started yielding positive results.

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