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Rapid Economic Reforms Must Tackle Escalating Poverty, Stakeholders Warn

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Stakeholders caution President Bola Ahmed Tinubu about the urgent need to address escalating poverty in Nigeria and avoid hasty implementation of economic reforms that could erode any progress made.

World Bank Reveals Alarming Rise In Poverty

Recent revelations by the World Bank indicate that the removal of fuel subsidies in Nigeria during the first half of 2023 resulted in over four million people sinking into poverty. Urgent action is required to prevent an additional projected 7.1 million Nigerians from falling into poverty by the end of the year.

Sequential Implementation Of Reforms Essential

Renowned economist and Nigeria’s first professor of capital market, Uche Uwaleke, emphasizes the importance of sequenced reforms. The policy document developed by the Policy Advisory Council, led by distinguished Senator Tokunbo Abiru and supported by KPMG, outlines the need for a gradual approach. The initial phase involves announcing the intention to remove subsidies, followed by implementing non-cash palliatives, increasing refined capacity through strategic partnerships, and finally, effecting the complete removal of fuel subsidies.

Monetary Policy Considerations

Professor Uwaleke further highlights the advisory council’s recommendations regarding monetary policy. Before unifying exchange rates, the government should model the economic impact and determine the required quantum of external reserves. The backlog of foreign exchange demand, amounting to approximately $12 billion, along with contingency reserves, must also be considered. Unfortunately, some of these recommended steps were not followed in the current implementation.

Board Of Economists Expresses Concerns

The Board of Economists echoes the concerns of experts, cautioning against hasty implementation without proper communication on the impact and availability of palliative measures. While acknowledging President Tinubu’s efforts to reform the economy, the board warns that the short-term consequences of these policies could negatively affect the masses and further burden the nation.

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World Bank’s Recommendations For Mitigating Impact

The World Bank emphasizes the significance of compensating transfers to protect vulnerable households from initial price shocks resulting from subsidy reform. It recognizes the removal of petrol subsidies and foreign exchange reforms as vital steps toward addressing long-standing macroeconomic imbalances. These reforms have the potential to establish a solid foundation for sustainable and inclusive growth, despite adverse consequences such as rising inflation and a debt-to-GDP ratio of approximately 46%.

Stakeholders Discuss Sustainable Reforms

During a panel discussion, stakeholders from various backgrounds offer perspectives on sustaining reforms and mitigating their impact on the poor and vulnerable. State governors Alex Otti and Seyi Makinde stress the need for collective efforts to protect the most vulnerable members of society. The World Bank Country Director in Nigeria, D. Chaudhuri Shubham, recommends a robust cash transfer programme to provide swift relief to the households most affected by the reforms.

Balancing Reforms And Economic Growth

Professor Uwaleke reiterates the importance of avoiding rushed reforms that may have adverse effects on output, inflation, and poverty reduction goals. To alleviate the current suffering, the government should swiftly implement existing palliative measures, including mass transit and minimum wage. Interventions should primarily focus on non-cash-based solutions and reducing out-of-pocket expenses in crucial areas such as healthcare.

Effective Communication with Citizens

Economists advise the new government to engage in urgent and effective communication with citizens. This will enable Nigerians to comprehend the implications of the actions.

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Uba Sani: Least Paid Worker In Kaduna Earns N72,000

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Uba Sani, governor of Kaduna, says no worker in the state earns less than N70,000 as salary in compliance with the new minimum wage.

Sani spoke on Thursday at Murtala Square in Kaduna on occasion the Workers’ Day celebration.

The governor said the least paid worker in the state earns N72,000, noting that he believes in the dignity of labour, adding that the issue of incremental adjustment of salaries would be addressed soon.

“I have been involved in the struggle for labour rights, workers’ rights. That is my antecedent. Because of my background, I sat down with the leadership of the Nigerian Labour Congress (NLC),” Sani said.

“I made it clear to them that though we have met the minimum wage requirement but there is something called incremental adjustment which is discretionary.

“Because of my relationship with both NLC and TUC, I asked them that we should sit down and come up with a formular that will make every worker in Kaduna state happy, irrespective of his or her status and they came up with three different options.

“Today, I want to reaffirm to all of you here that by the grace of God, we will look at the incremental adjustment and ensure that even senior civil servants will benefit because we have to make our workers happy.’’

The governor added that his administration also prioritises improving the living conditions of pensioners.

He said the state government has released N3.8 billion to settle outstanding gratuities, death benefits, and accrued rights under the contributory pension scheme in April.

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“Since the inception of our administration, we have cumulatively paid the sum of N10.4 billion in gratuity, death benefits, and accrued rights in the Contributory Pension Scheme,” Sani said.

The governor said the payment of such a huge sum to pensioners is “unprecedented.”

Commenting on the ongoing industrial action by the Kaduna State University branch of the Academic Staff Union of Universities (ASUU), Sani said his administration has done everything to reposition the school.

According to him, more than 60 percent of the courses were not accredited when he assumed office, but his administration spent over N300 million to secure National Universities Commission (NUC) accreditation.

The governor said the striking lecturers’ demands had accumulated over 17 years, with about three of his predecessors unable to settle the liabilities, which now total between N5 billion and N6 billion.

“In spite of this, the lecturers want us to settle these liabilities now, and I said no. I said that we have to sit down and have a dialogue. I then asked them, where were their voices in the last 17 years?” he said.

He promised that the problem would be addressed owing to the importance of education, which he described as the “greatest leveller”.

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PETROAN Asks FG To Prioritise Welfare Of Oil, Gas Workers

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The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has asked the government to prioritise the welfare of oil workers, given the hazardous nature of their work.

In a statement on Thursday, Billy Gillis-Harry, PETROAN’s president, hailed oil and gas workers across the country on Workers’ Day.

According to Joseph Obele, PETROAN’s spokesperson, Gillis-Harry, while addressing journalists in Abuja, appealed to the government and stakeholders in the industry to improve welfare packages and expand health insurance for oil workers.

“Studies have shown that workers in areas where gas flaring is prevalent are at high risk of several health challenges, which can affect them physically, mentally and even increase cancer risks,” Gillis-Harry was quoted as saying.

The association said gas flaring remains a serious problem in Nigeria’s energy industry, exposing workers and nearby communities to harmful health and environmental effects.

The group said the impact of gas flaring highlights the urgent need for better health protection and general welfare for those working in the sector.

According to the statement, Gillis-Harry urged regulatory bodies to strictly enforce existing laws aimed at stopping gas flaring in the country.

“It’s imperative that we prioritise the health and well-being of our workers and protect the environment from the harmful effects of gas flaring,” the president said.

The spokesperson said PETROAN believes ending gas flaring would reduce its harmful impact on workers and host communities and help build a more responsible oil and gas industry.

Obele said PETROAN commended governors who have started paying the new minimum wage, especially those paying above the set rate.

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“Billy Gillis-Harry called on governors who are yet to comply to do so in the shortest possible time, emphasising the need for workers to receive fair compensation for their labour,” he said.

He said the association also reaffirmed its commitment to collaborating with stakeholders to support oil and gas workers and ensure safe and healthy working environments.

Obele said PETROAN is of the view that better welfare and an end to gas flaring would boost productivity, reduce accidents, and raise performance across the industry.

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MTN Nigeria posts N1trn revenue surge

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MTN Nigeria Communications Plc generated N1.0 trillion in service revenue in the first quarter of 2025.

This marks a 40.5 per cent increase from the N752.99 billion earned in Q1 2024.

The company confirmed this in a corporate filing with the Nigerian Exchange Ltd. on Tuesday.

Profit after tax dropped by 134 per cent, falling to N133.7 billion from N392.7 billion in the same period of 2024.

Its total subscriber base grew by 8.2 per cent to 84.1 million, with 3.2 million new additions in Q1 2025.

Active data users rose by 13 per cent to 50.3 million, following the addition of 2.6 million users.

EBITDA climbed 65.9 per cent to N492.7 billion, while EBITDA margin improved by 7.2 percentage points to 46.6 per cent.

The company recorded free cash flow of N209.9 billion and earnings per share stood at N6.38.

MTN Nigeria CEO, Karl Toriola, expressed satisfaction with the Q1 2025 results, citing strong strategic execution and resilient service demand.

He said momentum from Q4 2024 had helped put the firm on track to restore profitability and achieve a positive net asset position.

He added that regulatory approval for price adjustments was essential to sustain investment and maintain service quality.

This approval enabled N202.4 billion in capital expenditure, up 159 per cent, aimed at expanding capacity and enhancing user experience.

Toriola said the 40.5 per cent growth in service revenue underscored strong demand and commercial discipline.

He noted that Q1 results do not yet reflect the full impact of price changes made late in the quarter. (NAN)

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