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N760.17b Refund: NLC to Name Indicted Governors

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  • N760.17b Refund: NLC to Name Indicted Governors

Workers are angry with governors who blew their state’s share of the N760.17 billion Paris Club loan refund.

President Muhammadu Buhari’s comment on how states failed to pay salaries despite the huge cash injection has provoked the Nigeria Labour Congress (NLC). It is threatening to “name and shame” governors who failed to spend the refund on salaries and pension.

Besides, the President should demand that the governors account for the money before any further release is made to them, the NLC said yesterday.

NLC President Ayuba Wabba said it was unfortunate that despite their promises to pay workers’ salaries and pension, the governors refused to live by their word.

He said that some of the governors had even refused to disclose how much they received and how it was spent.

Wabba accused the Chairman of the Governors Forum, Zamfara State Governor Abdulazeez Yari, who made a commitment on behalf of his colleagues of not spending the money judiciously.

He said the President was reacting to its letter asking him not to approve the release of the third and last tranche of the fund to the governors until they account for what they have received.

Wabba said: “It is our letter he was reacting to. At our CWC meeting, we called on him not to release the last tranche of the Paris Club refund to the states because the governors have not kept their word.

“You remember that Chairman of the Governors Forum alluded to the fact that they are committed to using the money to address the liability of pension and salaries. Unfortunately, the Chairman of the Governors Forum has not lived up to those words.

“As you are aware, our workers in Zamfara have shut down the state. He himself who made the pronouncement could not honour the words that he pronounced on behalf of his colleagues. That is to show the level of deceit that is actually in the system and that is why we decided to write to the President to ensure that there is a level of accountability to show that he is actually on the same page with the governors.

“Before the second tranche was released, they made commitments and used the payment of workers salaries and pensions as a bait to get the President to approve and get the money across to them. But immediately they got the money, majority of them diverted the money. Right now, we have a standard data as to what the situation is in all states of the Federation.

“Let me make the point that some has actually judiciously untilised their own, but some states… have refused to make available how much they received.”

Wabba recalled that at the Kogi State House of Assembly, a member raised a motion to demand accountability on the Paris Club refund “and that resulted in the chaos we witnessed in the Assembly. That member had his head broken and the Speaker removed. That is the level of decay that is prevailing in some of those states.

“It means that Mr President is in touch with the real issues that is happening in every state. The fact that he is aware that some of the governors have not utilised the money in the direction that he appealed to them means that he is aware of what is happening.”

The NLC chief spoke also on the use of consultants to get the refund.

He said: “We learnt that about 5 per cent was deducted from source and used for the payment of consultants which eventually ended up in people’s pockets. We are also aware of those who diverted the money to build hotels and pay mortgages. It is really a bad situation.

“If we must fight corruption, those issues are issues that we must follow up and fight to their logical conclusion.

“In some of the states, our members used the Freedom of Information Act to demand how these money was utilised, but there has been no responses and I think that is most unfortunate. We have records of those states. We have also promised that we are going to name and shame those states that have not adequately utilized the bailout.

“We are working on the data and once they are ready, we will make them, available and we are going to engage states that have not transparently utilised the bailout fund for the purpose that it was meant for and for the benefit of their people. That is where we are now… that is why the situation of workers have not improved.

“ Let me emphasied that some states have done extremely well and we are going to point this out very clearly.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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