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  • Tinubu Orders Cost Analysis for New Minimum Wage

    Tinubu Orders Cost Analysis for New Minimum Wage

    — President Bola Tinubu has directed the Minister of Finance, Wale Edun, to prepare and present the cost implications of a new minimum wage by today. This directive is aimed at establishing a realistic and sustainable wage figure for negotiations with organized labour.

    The order comes after the Federal Government’s offers of ₦48,000, ₦57,000, and ₦60,000 were rejected by labour unions, leading to an indefinite nationwide strike that was suspended yesterday. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) had proposed ₦615,500 and ₦494,000, respectively, as the new national minimum wage, citing economic hardships and inflation.

    Tinubu convened a meeting with key government representatives, including the Minister of Finance, the Minister of Budget and National Planning, Atiku Bagudu, the Minister of State for Labour and Employment, Nkeiruka Onyejeocha, the Minister of Information and National Orientation, Mohammed Idris, and the CEO of the Nigeria National Petroleum Company Limited, Mele Kyari. The meeting focused on resolving the contentious issues surrounding the new minimum wage.

    Mohammed Idris, speaking after the meeting, emphasized the government’s commitment to finding a balanced and realistic wage solution. He stated, “The President has directed the Minister of Finance to calculate the numbers and report back by today so we can have figures ready for negotiation with labour.”

    Idris reiterated that the government is not opposed to wage increases but must ensure that any promises made are sustainable and realistic. He added, “A new wage award must be acceptable and sustainable, involving not just the federal government but also sub-national entities and the organized private sector.”

    Following the suspension of the strike, the NLC and TUC explained their decision in a communiqué, highlighting the government’s commitment to a higher minimum wage than ₦60,000. They also expressed disappointment over the government’s inaction regarding the reversal of electricity tariff hikes and the discriminatory classification of electricity consumers into bands.

    The communiqué detailed the NEC’s examination of key issues, including the government’s proposal for a higher minimum wage and demands for the reversal of the electricity tariff hike. It noted that labour withdrew from the Tripartite National Minimum Wage negotiation due to the government’s refusal to go beyond ₦60,000.

    Labour has resolved to relax the strike for one week to allow for further negotiations. The tripartite committee resumed discussions yesterday, adopting an agenda for the one-week continuous negotiation period. Labour leaders warned that the strike would resume if no agreement is reached.

    In related developments, the Senate has urged the Federal Government to expedite actions to prevent further industrial unrest, criticizing some unionists for excessive actions during the strike, such as shutting down the national grid. Senate President Godswill Akpabio emphasized the importance of continued negotiations and legislative support for a new minimum wage.

    ActionAid Nigeria also called on the government to resolve the industrial action promptly, highlighting the economic and social hardships caused by the strike.

    The coming days will be crucial as the government and labour unions work towards a mutually acceptable resolution on the new minimum wage.

  • Accountant General Suspended Over N80bn Scandal

    Accountant General Suspended Over N80bn Scandal

    The Accountant General of the Federation, Ahmed Idris, has been suspended indefinitely over alleged N80 billion fraud.

    He was suspended by the Minister of Finance, Budget and National Planning, Zainab Ahmed, on Wednesday.

    In a letter dated May 18, 2022, the minister said the suspension “without pay” was to allow for “proper and unhindered investigation” in line with public service rules.

    On Monday, the Economic and Financial Crime Commission announced the arrest of Idris over alleged diversion and laundering of N80 billion.

    Head of Media and Public Information, Mr Wilson Uwujaren, stated that verified intelligence reports showed that Idris raked off the funds through bogus consultancies and other illegal activities using proxies, family members and close associates.

    Uwujaren added that the funds were laundered through real estate investments in Kano and in Abuja.

    He explained that Idris was arrested after he failed to honour invitations by the EFCC to respond to issues connected to the fraudulent acts.

    Details later…

  • FG Postpones Fuel Subsidy Removal till Further Notice

    FG Postpones Fuel Subsidy Removal till Further Notice

    The Minister of Finance, Budget and Economic Planning, Hajia Zainab Ahmed, said in Abuja on Monday that the Federal Government had postponed the planned removal of subsidy on petroleum products till further notice.

    Ahmed stated this at a meeting held at the National Assembly.

    The meeting was convened at the instance of the President of the Senate, Ahmad Lawan.

    It had in attendance the Minister of State for Petroleum Resources, Timipre Sylva and the Group Managing Director of the. NNPC Limited, Mele Kyari, among others.

    The Finance Minister said the Federal Government initially had the plans to remove subsidy on petroleum products from July this year.

    She said that was the reason adequate provision was made in the 2022 national budget for subsidy payment till June.

    She said, “Provision was made in the 2022 budget for subsidy payment from January till June. That suggested that from July, there would be no subsidy.

    ” The provision was made sequel to the passage of the Petroleum Industry Act which indicated that all petroleum products would be deregulated.

    “Sequel to the passage of the PIA, we went back to amend the fiscal framework to incorporate the subsidy removal.

    “However, after the budget was passed, we had consultations with a number of stakeholders and it became clear that the timing was problematic.

    “We discovered that practically, there is still heightened inflation and that the removal of subsidy would further worsen the situation and impose more difficulties on the citizenry.

    “Mr. President (Muhammadu Buhari), does not want to do that. What we are now doing is to continue with the ongoing discussions and consultations in terms of putting in place a number of measures.

    “One of these include the roll out of the refining capacities of the existing refineries and the new ones which would reduce amount of products that would be imported into the country.

    “We therefore need to return to the National Assembly to now amend the budget and make additional provision for subsidy from July 22 to whatever period that we agreed was suitable for the commencement of the total removal’

    The Senate President therefore urged the organised labour unions in the country to shelve their proposed nationwide protests as it was no longer necessary.

    The meeting dissolved to a closed session and it was still ongoing as at the time of filing this report.

  • Continue VAT Collection in all States, Finance Minister Directs FIRS

    Continue VAT Collection in all States, Finance Minister Directs FIRS

    The Minister of Finance, Budget and National Planning, Zainab Ahmed has directed the Federal Inland Revenue Service (FIRS) to continue the collection of value added tax (VAT) and advised all Nigerians to pay their VAT to FIRS until the appellate court rules otherwise.

    The Rivers State Government had last month secured a major court victory over the federal government in the collection of VAT in the state, and had gone ahead, along with Lagos State, to enact necessary laws and agencies for the collection of the tax.

    But the Abuja Division of the Court of Appeal on September 10 ordered all parties that had submitted themselves before the court to maintain status quo ante bellum pending the hearing of an application seeking to stay the judgment of the Federal High Court, Port Harcourt.

    Following the Appeal Court ruling, the Organised Private Sector of Nigeria (OPSN), became confused, and desperately called on the federal government to clear the confusion.

    Apparently in reaction, the Minister of Finance, in a newspaper advertorial on Thursday, stated the position of the federal government on the rulings, directing the FIRS to continue the collection.
    The minister stated: “The tax-paying public has been confused about whom to pay VAT to as a result of the Federal High Court’s judgement in Suit No. FHC/PH/CS/149/2020.

    “The Appeal Court’s ruling, halting the execution of the judgement of the Federal High Court required all parties to maintain the status quo ante bellum. As such, FIRS shall continue to administer VAT in all the states of the federation unless the appellate court rules otherwise.
    “The ruling of the Court of Appeal, therefore, implores all taxpayers in all the states to continue to pay their VAT, and for the FIRS to continue to collect VAT on behalf of the government in compliance with the VAT Act.

    She appealed to all parties to stop their litigations in the interest of the nation, stating that the economy had ominous challenges and needed the support of every Nigerian for it not to go under.
    Ahmed said, “The uncertainty caused by the recent pronouncements of the Federal High Court, sitting in Rivers State and the subsequent enactment of Value Added Tax (VAT) laws by some states is unnecessary and very regrettable.
    “The Nigerian economy, just as the economy of other nations, is facing serious challenges occasioned by the COVID-19 pandemic.”

    According to her, “Government is facing serious revenue challenges and, therefore, this is not the time for litigations, but for all hands to be on deck, to pull through this difficult period.”
    The ruling of the Court of Appeal, she said “has provided the much needed certainty, clarity, and consistency that will enable compliance without disruption to business while final resolution is awaited.”

    She said the federal government “shall continue to update the tax-paying public on this matter as the proceedings unfold at the appellate courts. All businesses are hereby encouraged to continue with their lawful operations.”

    The leaders of the Organised Private Sector of Nigeria (OPSN), had on September 17, spoken in one voice, urging the federal government to make a statement that would clear the VAT confusion.
    They said that the reality and consequences of the controversy “portend grave danger for the business community and by extension, the fragile economic recovery the country had been witnessing in recent times.”

    The OPSN, which is comprised of the Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), and the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the Nigeria Association of Small Scale Industries (NASSI) and the Nigeria Association of Small and Medium Enterprises (NASMEs), said a statement from the federal government would give a clear direction to the business community.

    It said it would also save them the dilemma of remitting their VAT to the wrong government that might necessitate double payment; it would also save them the consequence of paying penalty fees for withholding the remittance of their VAT beyond the due date of Tuesday, September 21, 2021.
    The Chairman of the OPSN, Mr. Taiwo Adeniyi, said: “We want to pay the VAT. But it is for the government at the centre to make a pronouncement because we do not want the situation where we will pay the VAT to the FIRS and the court will later say that it is state governments that shall collect VAT. We are shouting that the government will give us a direction as to what to do. It is not even late as a pronouncement can be made on Tuesday, September 21.

    Adeniyi said that the OPSN was seriously concerned about the consequences of the ongoing controversy over the right of the government to collect VAT in the country, adding that it would be an “aberration to punish businesses or make them suffer from the proverbial ‘two elephants fighting.”
    He said the situation had created an environment of uncertainty, which would negatively affect business competitiveness and sustainability in the country.

    The federal government, through the FIRS by virtue of the Value Added Tax Act of 1993, has been the sole collecting authority of VAT in Nigeria until the Rivers State Government’s court victory, which empowered it to collect VAT from businesses located in the state.

  • Nigeria to boost economy with N2.3tn

    Nigeria to boost economy with N2.3tn

    Nigeria is injecting the sum of N2.3 trillion to stimulate its economy, in view of covid-19 pandemic.

    The country’s Executive Council also called FEC on Wednesday approved the N2.3 trillion sustainability package, recommended by the Economic Sustainability Committee chaired by Vice-President Yemi Osinbajo, to revamp the economy.

    It also approved N122.280billion billion to build seven roads in different parts of the country and another N14.90 billion for the award of contracts for 11 ecological projects in the six geopolitical zones.

    It would be recalled that President Muhammadu Buhari set up the Osinbajo committee on March 30 to come up with an economic sustainability plan as a response to challenges posed to the economy by the COVID-19 pandemic.

    The Minister of Finance and Budget Planning Mrs. Zainab Ahmed who made the disclosure while briefing State House correspondents in Abuja after the FEC meeting said the council approved the report containing the N2.3trillion package as NESP.

    She said the package is a 12-month plan meant to create jobs, ensure a flow of liquidity in the economy, support small and medium enterprises and prioritise local content with the overall intention of saving the econo

  • BREAKING: Senate summons minister of finance over N1.8trn power intervention funds

    BREAKING: Senate summons minister of finance over N1.8trn power intervention funds

    The Senate Committee on Power, said on Thursday that it has perfected plans to begin a three-day investigative hearing with the purpose of ascertaining how the N1.8trn injected into the power privatisation exercise by the Federal Government between 2013 till date, was utilised.

    The privatisation exercise was consolidated on September 13, 2013, during the tenure of former President Goodluck Jonathan.

    The Chairman of the Senate Panel, Gabriel Suswan told journalists after the meeting of his panel that the probe was not a punitive action.

    Suswan said various sums ranging from N701bn, N600bn, N380bn and N213bn had been released as intervention funds in the last seven years.

    He said the Minister of Finance, Zainab Ahmed, and her counterparts in the Ministry of Power, among other heads of government agencies in the power sector as well as private sector operators, had been summoned.