National
MTEF-FSP: Finance Minister express worry overNigeria’s borrowing spree

****Says, adequate revenue needed to fund Budgets
***As Senate panel raises concerns over MDAs poor revenue projections, leakages
Nigeria can not continue in its borrowing habit to fund 2023 national budget, the Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun has indicated
He said the country has no option but to make necessary sacrifices to generate adequate revenues to reduce its current high deficit financing.
The Minister spoke on Thursday when he appeared before the joint Senate Committee scrutinising the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper under the leadership Senator Sani Musa.
Edun briefed the joint panel in company of the Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji and the Director General of the Debt Management Office, Ms. Patience Oniha, before the lawmakers called for a closed session.
The Minister insisted that the best way Nigeria could fund its annual budgets was to spend more money on infrastructure that could generate revenues.
He also indicated that the advanced countries have increased their interest rates because they wanted to bring down inflation rate to stabilize their economy.
The Minister pointed out that accessing foreign loans would therefore be very expensive for a developing country to cope with.
Edun said, “Clearly the environment that we have now, internationally as well as nationally we are in no position to rely on borrowing.
“We have an existing borrowing profile. Our direction of tariff is to reduce the quantum of borrowing or intercepting deficit financing in the 2024 budget.
“Simply put internationally there is focus among rich countries on bringing down the inflation rate to stabilize the economies and give them opportunity for investment growth.
“They are in the process, sacrificing that immediate goal for compacting their economies, or at least contracting the money supplies and pushing up the interest rates and of course high interest rates and investments don’t go together.
“What is left for us to access those funds are expensive so it is the last thing that we must rely on.
“As we know we have all the figures and debt servicing and cushioning 98 per cent of government revenue.
“The last thing you can think of is to pike on more debts. Government needs to not just maintain its activity, it needs to spend more.if you look at government spending, if you look at the budget as a percentage of GDP, ours is one of the lowest bein 10%, even Ghana is at 25%, rich ones they are 50%.
“The very rich countries have to be most advanced in terms of social safety nets and its social security system at 70% of GDP. Government spending definitely will lead to increase.
“The number one source of revenue especially in short term, even in the medium term is all revenue.”
Earlier, Musa, the Chairman of the joint panel scrutinising the MTEF-FSP document expressed the fears that the revenue projections of the ministries, departments and agencies of the federal government that had so far appeared before his panel were a far cry to the what the Federal Government was proposing as income in the 2024 fiscal year.
He noted that going for external interventions would definitely be an option because it would further push the country to further deficit financing.
Musa said, “Currently there are lots of leakages in the use of government resources.
“A lot of funds being generated as revenues by most MDAs are not being remitted as at when due. Some even remits funds a year after they collected the money.
“The office of the Accountant General of the Federation should look properly in that direction.
“The current practice of delaying the remittances of revenues by the MDAs had created a room for the misappropriation of those funds.
“After meeting with the Nigerian Customs Service officials yesterday, we realise that there were lots of shortfalls they are experiencing as a result of incidences of waivers.
“We want to know who is issuing those waivers. Is it the FIRS or the Ministry of Finance?
“We are also interested in knowing details of the Customs modernization project, known as e-customs.
“The Senate Committee on Finance is interested in known the type of agreement that was signed on behalf of the Federal Government of Nigeria.
“What is the value of the e-customs agreement. How much is Nigeria expecting?
“We are tired of judgement debts all over the places. We need to know the plans on ground to collect excise duties and other tariffs so that we won’t run a deficit budget again next year.”
National
Strike: NASS Leadership, Labour Leaders, others in closed meeting to avert industrial action

In last minute effort to prevent indefinite industrial action declared by Nigeria Labour Congress ( NLC) and affiliate bodies from tomorrow, Monday, June 3, 2024 , the leadership of the National Assembly led by the President of the Senate, Godswill Akpabio and Speaker of the House of Representatives, Hon Tajudeen Abbas, are currently in closed door meeting with the labour leaders and some Ministers at the Senate Wing of the National Assembly
The Secretary to the Government of the Federation, Senator George Akume, Minister of Finance , Wale Edun, Minister of Information and National Orientation, Alhaji Mohammed Idris Malagi and some other Ministers are also at the Emergency meeting.
Labour welcomes negotiations for “survival wage “NOT “starvation wage” for workers. Akpabio cautions Labour to be mindful of possible “collateral damage” that might lead to massive job loss
Thesewere just before they went into a closed door meeting.
The National Assembly had had earlier indicated that it would engage the organized labour as part of moves to avert the industrial action due to commence on Monday.
It said its decision of to intervene followed the deadlock between the federal government and the Labour Unions in agreeing on a new national minimum wage and reversal of the recent hike in electricity tariffs. The National Assembly stressed that both parties have tenable reasons for their respective positions.
A statement issued Sunday and jointly signed by the spokesperson of the Senate, Senator Yemi Adaramodu and the spokesperson of the House, Akin Rotimi revealed that the President of the Senate, Senator Godswill Akpabio, and Speaker of the House of Representatives, Hon. Abbas Tajudeen, are taking proactive steps to mediate and avert the impending industrial action.
The legislative arm was of the opinion that the strike action would have severe repercussions on the populace and economy
It said: “The National Assembly acknowledges the announcement by Organised Labour, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), to commence an indefinite strike action from Monday, June 3, 2024, nationwide.
“In view of this, the National Assembly Leadership and the Chairmen of the Senate and House Committees on Labour, Employment and Productivity respectively, Senator Diket Plang, and Rep. Adegboyega Adefarati, are looking to engage both parties in constructive dialogue and explore a variety of solutions in addressing the issues at hand.”
It added that the 10th National Assembly was committed to ensuring that the interests of all parties are fairly represented.
National
Strike is not in the interest of Nigerians, Labour Minister cautions organised labour

The Minister of State for Labour and Employment, Barr. Nkeiruka Onyejoecha, has caution the organised insisting that embarking on a nationwide strike is not in the best interest of the country and its people.
In a statement by her Special Adviser (Media) Emameh Gabriel the minister
Minister advised the workers unions to have a rethink as declaring a strike in the middle of ongoing negotiations would not only compound the economic woes but also exacerbate the suffering of millions of Nigerians who are already struggling to eke out a living from their daily endeavors.
Explaining further the Minister noted that the “government has consistently demonstrated commitment and goodwill throughout the negotiations with organised labour.
She pointed out that the government’s proposals were carefully crafted, taking into account the country’s economic realities and incorporating innovative solutions.
“These proposals include a comprehensive package featuring a wage increase to N60,000 for federal workers, the introduction of CNG-fueled buses, and enhanced financial access for Micro, Small and Medium Enterprises (MSMEs). “Additionally, the government has pledged investments in strategic sectors such as agriculture, manufacturing, education, healthcare and many others that are already in the pipeline.
She however cautioned that any new minimum wage must not lead to widespread job losses, particularly in the Organised Private Sector, which employs the bulk of the nation’s workforce
“This sector is crucial to the country’s economic growth and stability. The government’s stance is rooted in a deep understanding of the negotiations, demonstrating its dedication to finding a balance between the needs of workers and the economic realities of the country.
“The goal is to establish a minimum wage that is not only realistic but also sustainable, avoiding any potentially detrimental consequences for the economy.
“By adopting this approach, the government aims to safeguard the interests of both workers and employers, ensuring that any agreement reached is mutually beneficial and does not jeopardise the country’s economic progress.
“This balanced stance is crucial for maintaining harmony in the workforce and driving national growth”, she explained.
The Minister expressed disappointment that in a surprising turn of events, organised labour abruptly exited the negotiations yesterday, despite the government’s flexibility in rescheduling the meeting from Monday to Friday, May 31st, to accelerate the talks.
“Labour unions remained adamant in their demand for a staggering 1,547% wage increase, after the government’s proposed 100% increase, accompanied by various incentives for workers.
“It is widely acknowledged that the labour unions’ demands are unrealistic, given the country’s current economic position. The government takes into account the nation’s fiscal constraints and the need for sustainable economic growth. In contrast, labour’s demands seem disconnected from the economic realities, potentially jeopardising the very gains they seek to achieve”.
“The government’s willingness to engage in dialogue and its demonstrated flexibility in the negotiations underscore its commitment to finding a mutually beneficial solution. However, labour’s inflexibility and unrealistic expectations may hinder the progress made thus far, ultimately harming the workers they represent and the nation as a whole, the minister added.
She however, urged the unions to reconsider their decision and continue engaging in constructive dialogue to find a solution that benefits all, as strike will disproportionately harm the most vulnerable segments of our society. She concluded by asking
organised labour to continue to respect the principles of social dialogue, engaging in good-faith.
National
Gov Yusuf Visits National Security Adviser, Ribadu

Governor Abba Kabir Yusuf of Kano State on Thursday met with the National Security Adviser Malam Nuhu Ribado at his Office in Abuja
The meeting which was ocasioned by the recent happenings in Kano following the dissolution of five emirates by the Kano State House of Assembly through the repeal of the state emirate law, the governor’s assent and the subsequent restoration of Emir Muhammad Sanusi II by the
Governor.
The Governor’s spokesperson Sanusi Bature Dawakin Tofa, in a statement indicated that the two political leaders deliberated on various matters relating to state/national development and the peaceful coexistence of the nation during their discussions in Abuja.
Recall that the NSA had been accused of involvement in the Kano crisis for allowing a substantial military presence to protect the dethroned Emir Aminu Ado Bayero, a position the Office of the NSA debunked
The Kano State Deputy Governor, Comrade Aminu Abdussalam Gwarzo, had apologized to the NSA for his implication in the Kano crises, attributing the error to flawed intelligence.
Recognizing the respected professional background and integrity of the NSA throughout his time as an Officer and Anti-corruption campaigner, the state deemed it necessary to retract the allegation and offer a sincire apology.
In harmony with these events, the Governor’s meeting with the NSA coincided with Emir of Kano Muhammadu Sanusi II’s six-day stay at the Kano palace, where a significant majority of district heads and kingmakers already pledged their allegiance and loyalty to the newly consolidated Kano Emirate under the leadership of the 16th Emir.
The state assured that Kano has been characterized by peace and tranquillity, and thus urges all residents to continue their regular activities in compliance with the rule of law.
“It was a fruitful discussion between myself and the National Security Adviser, his role is critical for the harmonious existence of our nation, so I briefed him on the recent developments in Kano,” Governor Yusuf confirmed.
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