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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

Pastor Reuben Initiative extols founder’s philanthropic gesture

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Pastor Reuben Wilson

 

By Idibhar Agadaga, Baylesa

The Director General Pastor Reuben Initiative for Good Leadership and Accountability (PRIFGLA), Eseimokumo Frank Soko has commended Pastor Reuben Wilson’s selfless contributions to the development of Bayelsa State and the Niger Delta region.

Speaking on an enlighment program on Royal FM, 95.5, Eseimokumo Frank Soko, highlighted Wilson’s commitment to education, noting that he has sponsored over 200 students across various universities in the region.

According to Soko, Wilson’s philanthropic efforts extend beyond education, as he has also provided monthly stipends to members of the Initiative ànd numerous individuals in need.

He particularly extolled Wilson’s selfless and sacrificial lifestyle which have positively impacted the lives of many Bayelsans.

He emphasized that Wilson’s charitable works is not limited to any particular political party or affiliation as beneficiaries come from diverse backgrounds including PDP, APC and Labour Party members.

On his part, PRIFGLA’s National Secretary and Special Adviser on Student Matters and Scholarships, Ogbomo Erepamowei, shared Wilson’s inspiring personal story, which has driven his passion for helping others.

Ogbomo noted that despite facing challenges in his own educational journey, Wilson has demonstrated remarkable resilience and generosity, supporting students in various institutions across the Niger Delta.

He added that over 200 students are under scholarship sponsored by Pastor Reuben Wilson in various universities across the Niger Delta region.

In a final statement, Soko expressed gratitude to Wilson, describing him as a “sacrificial leader” who has positively impacted the lives of those working with him.

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Business & Economy

Three Oil Coys admit owing FG over $5.5m  *As Reps Issue 2-Weeks Ultimatum For Payment

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By Our Reporter
Following the ongoing efforts by the National Assembly to generate revenue for the federal government, three major oil companies operating in Nigeria Chorus Energy, Dubril Oil company limited, and Belema Oil have all admitted to owing $5,543,491.45 to the Nigeria’s Federation Account.
This revelation came during Tuesday investigation by the House of Representatives Committee on Public Accounts prompted by the Auditor General’s annual report.
The committee heard detailed testimonies from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), presented by Mr. Balarabe Haruna, which outlined the outstanding debts of the companies.
According to NUPRC, the debts are as follows: Chorus Energy owes a total of $814,680.06 and N181,954,238.43, comprising $396,907.76 for crude oil by price and $417,772.13 for crude oil by production.
Dubri Oil owes $3,025,193.71, which includes $646,605.55 for crude oil by production and $2,378,588.15 for gas flare.
Eroton Exploration & Production owes $78,486,333.27, made up of $45,094,125.31 for crude oil by production, $33,392,207.96 for gas flare, and $916,027.00 for concession rentals.
Belema Oil owes $1,703,617.68, including $977,793.54 for crude oil by price, $511,870.14 for gas flare, and $213,954.00 for concession rentals.
In response, the Chief Financial Officer of Chorus Energy, Mr. Oluseyi Simon, explained that the company’s debt arose after an increase in the crude oil price rate from 0.5% to $3.5.
He noted that the company has consistently paid its liabilities and that it had already paid $5.3 million in 2024 alone.
Simon assured the committee that the remaining balance would be cleared before the end of the month.
Meanwhile, Mr. Clement, the Acting Managing Director of Dubri Oil, acknowledged the debt and explained that the company’s financial difficulties stemmed from a decline in production during the first quarter of 2024.
He emphasized that the company had been trying to mitigate the situation through workovers on its wells, but the efforts were unsuccessful.
However, Clement assured the committee that Dubri Oil planned to begin drilling new wells and, once production increased, would settle the outstanding debt.
He further revealed that Dubri Oil had been in discussions with the Economic and Financial Crimes Commission (EFCC) and had agreed to a payment schedule, with an expected resolution by the third quarter of 2025.
Belema Oil also confirmed the debt, citing operational challenges as the cause of the indebtedness.
According to the company’s Managing Director, Ahmad H. Sambk said Belema Oil had been unable to meet its production targets since August 2022 due to issues with the evacuation pipeline system, which had experienced significant leakages, leading to the loss of nearly 5 million barrels of crude oil.
These challenges had resulted in a complete shutdown of operations, preventing the company from fulfilling its financial obligations.
Chairman of the investigation sub-committee, Hon. Akinlade Isaq, expressed anger over the failure of oil companies to meet their financial obligations and stressed the urgency of retrieving the owed funds.
“Paying off these outstanding debts is not just a matter of financial responsibility, it is a critical step toward improving governance in Nigeria,” Isaq stated.
The committee then unanimously gave the oil companies a strict two-week ultimatum to settle their debts.
The committee also issued a warning to any oil companies that failed to respond to invitations for hearings, stressing that non-compliance would lead to severe repercussions.
In addition to the aforementioned companies, the committee also disclosed the indebtedness of other oil operators that failed to appear today as follows;
“For Conoil Producing, the company owes $3,884,308.56 for crude oil by production and $708,600.06 for Gas flare and $475,785.40, bringing the total to $4,592,908.62.
Continental Oil has a total debt of $57,053,842.22, which includes  $44,519,936.05 for crude oil by production, $12,533,906.17 for gas flare and $250,650.00 for concession rentals.
Enageed Resources owes a total of $15,001,089.91, consisting of $11,647,300.01 for crude oil by production, $3,353,789.90 for gas flare and $469,552.00 for concession rentals.
Energia limited owes a total of $19,260,982.13, made up of $6,675,524.25 for crude oil by price, $9,768,926.81 for crude oil by production,$10,208.89 for gas sales, $2,806,322.19 for Gas flare and $305,995.40 for concession rentals.
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Business & Economy

New Bayelsa Secretariat: Govt Appeals To Host Communities To Maintain Peace

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Gov Douye Diri of Bayelsa

 

By David Owei, Bayelsa
The Bayelsa State Government has appealed to the people of Yenagoa and Ovom communities currently locked in a dispute over ownership of the land, where the new 9-storey secretariat is sited, to sustain their age long unity and peaceful coexistence.

The Deputy Governor, Senator Lawrence Ewhrudjakpo, made the appeal at separate meetings with the leaders and critical stakeholders of both communities in Government House, Yenagoa on Tuesday.

Senator Ewhrudjakpo, in a statement by his Senior Special Assistant on Media, Mr Doubara Atasi, pointed out that there was no need for both communities to feud over the land as government had acquired it for development purposes several decades ago.

According to the Deputy Governor, every land acquired by government with compensation paid becomes its property, stressing that all the communities lying within 15-kilometre radius from Yenagoa make up the Bayelsa State capital.

While acknowledging the sacrifices being made by the communities hosting the state capital, he assured that government would continue to protect their interests by performing its corporate social responsibility.

Senator Ewhrudjakpo, however, warned that the present administration would not fold its arms and watch any community or group of people cause crisis to disrupt the prevailing peace in the state for whatever reason.

He particularly cautioned the youths of Ovom against the alleged unwholesome practice of going to ministries, departments and agencies to demand a change in the letterheads and signboards of MDAs to reflect Ovom.

His words: “There is no long-term benefit in conflict. People can disagree, but they can reconcile their differences through the roundtable.

“Yenagoa and Ovom communities have a long history of peaceful coexistence as two sister communities in the Atissa Kingdom in the Yenagoa Local Government Area.

“As communities in the epicenter of the state capital, Ovom and Yenagoa have made huge sacrifices, and they cannot afford to fight themselves over land already acquired by government.

“Our position is that none of the communities own the land of the project site for the new state Secretariat; the ownership of that land now belongs to the Bayelsa State Government by virtue of the Capital City Development Law.

“However, government will continue to protect the interest of the communities who have donated the lands for public use and development.

“We are also receiving reports that some youths of Ovom are going to ministries, departments and agencies demanding for a change of address to reflect Ovom. That attitude is not right, and therefore, must be stopped forthwith.

“We should all know that like any other capital city in this country, the name of Yenagoa has influence over all other communities lying within the 15-km radius of the state capital, and as such Yenagoa is reflected in all addresses.”

In her remarks, the Member representing Yenagoa Constituency 1 in the State House of Assembly, Hon. Ayibanengiyefa Egba, expressed gratitude to the state government for its swift intervention and called on the communities to embrace peace as brothers to foster development and progress.

Others who spoke briefly at the two meetings include the former Technical Adviser to the Governor on Conflict Resolution, Chief Boma Spero-Jack, Hon. Markson Fefegha, Chief Couple Anyamalem, Chief Stephen Abaribote, and Chief Loveday Abaribote.

Top government functionaries present included the commissioners for works, information, marine and blue economy, lands and survey, and that of community development.

Also in attendance were the Chairman of Yenagoa Local Government Area, Hon. Bulodisiye Ndiware, the Acting Surveyor General of Bayelsa State, Geku Tonye Margareth; the Technical Adviser to the Governor on Boundary Matters, Hon. Salem Vote, among others.

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