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IMF denies involvement in subsidy removal in Nigeria

The International Monetary Fund (IMF) recently clarified that it did not play any role in the Nigerian government’s decision to remove fuel subsidies.

This statement was made by Abebe Selassie, the IMF’s African Region Director, during a press conference at the IMF and World Bank Annual Meetings held in Washington, D.C. Selassie emphasized that the decision by President Bola Tinubu’s administration to remove fuel subsidies was entirely domestic, originating solely from the Nigerian government without any external influence or pressure from the IMF.

“We don’t have programmes in Nigeria,” Selassie stated, clarifying the organization’s limited engagement with Nigeria.

According to him, the IMF’s involvement with the country is confined to routine dialogues, similar to those it maintains with other nations such as Japan and the United Kingdom.

He explained that while the IMF regularly communicates with governments around the world, these discussions are not equivalent to the implementation of IMF-backed programs, nor do they imply direct influence on a country’s policy decisions.

The removal of fuel subsidies has sparked widespread discussion and debate in Nigeria, primarily because of its significant social and economic implications.

Many Nigerians have linked the subsidy removal to alleged pressures from international financial bodies like the IMF and the World Bank, accusing these institutions of indirectly dictating Nigeria’s fiscal policies.

However, Selassie’s remarks during the press conference sought to dispel these notions, reiterating that the IMF did not have an operational program within Nigeria that would warrant it to dictate policy actions.

Nonetheless, Selassie noted that the Nigerian government’s approach to removing fuel subsidies was aligned with long-term economic sustainability.

He acknowledged that such policy decisions are complex and often come with high social costs, which can impact vulnerable populations the most.

“We recognize the significant social costs involved,” Selassie said, noting that the government could implement mitigation measures to ease the burden on those most affected by the removal of fuel subsidies.

He highlighted the importance of expanding social protection programs, which could offer relief and support to Nigeria’s most vulnerable citizens during this period of transition.

On May 29, 2023, President Bola Tinubu announced the removal of the fuel subsidy, declaring, “Subsidy is gone.

” The decision, made immediately after his inauguration, was perceived as part of a broader economic reform agenda aimed at addressing Nigeria’s persistent fiscal challenges.

However, the removal of subsidies has led to a sharp increase in fuel prices, with the pump price of petrol rising to over 1,000 Naira per liter in many regions. This surge has had a ripple effect, contributing to inflation and increasing the cost of living for millions of Nigerians.

The sharp rise in fuel prices following the subsidy removal has not only placed a burden on individual households but has also intensified the economic strain on businesses and industries reliant on fuel.

Many Nigerians are now contending with increased transportation and food costs, while businesses face higher operating expenses due to the elevated cost of fuel.

This has fueled public discontent, with many citizens and analysts questioning whether the government has adequate social welfare structures in place to cushion the impact on vulnerable groups.

While some Nigerians acknowledge that subsidy removal might be a necessary step for economic restructuring, others argue that the government should have taken a phased approach, allowing time to develop compensatory mechanisms before implementing the policy.

There is widespread concern that, without proper support systems, the most vulnerable segments of society could suffer disproportionately.

Critics have also pointed out that while subsidy removal may alleviate certain fiscal pressures, it does not address underlying structural issues within the Nigerian economy, such as low levels of industrial production, high dependency on imports, and a persistent trade imbalance.

They argue that without addressing these foundational challenges, the benefits of subsidy removal may be short-lived and could further strain the country’s socio-economic fabric.

In response to the public criticism and widespread accusations that Nigeria’s economic policies are being shaped by international institutions, Selassie reiterated the IMF’s commitment to providing only advisory and technical support.

He emphasized that the IMF respects the sovereignty of its member countries, allowing them to make decisions based on their national interests.

He further noted that any assistance offered by the IMF is generally aimed at supporting the government’s long-term goals for sustainable economic growth and poverty alleviation, not at imposing policy changes.

In conclusion, the IMF has clarified that it did not influence or dictate Nigeria’s decision to remove fuel subsidies, which remains a contentious issue within the country.

While the government views this move as a pathway to long-term fiscal sustainability, the immediate impact on Nigerians has raised questions about the adequacy of social protection measures in place to support those affected by the rising costs.

The situation underscores the complex balance Nigeria must strike between economic reform and social stability, as well as the importance of clear communication and comprehensive planning when implementing policies with widespread implications.

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Labour Party Dismisses Allegations of Partnership with Tinubu for 2027 Elections

The Labour Party (LP) has refuted claims circulating on social media that its leadership is collaborating with President Bola Tinubu ahead of the 2027 general elections.

The allegations stem from a video where activist Deji Adeyanju alleged that the LP had entered into a partnership with Tinubu in preparation for the next presidential poll.

In a statement released on Friday, the National Publicity Secretary of the Labour Party, Mr. Obiora Ifoh, categorically denied the claims, emphasizing that the party remains committed to its role as a leading opposition force in Nigeria.

“The Labour Party has repeatedly and firmly denied any understanding or collaboration with the ruling All Progressives Congress (APC) regarding the 2027 elections,” Ifoh said.

He highlighted the party’s consistent criticism of the current administration under the leadership of its National Chairman, Barrister Julius Abure. “Our chairman has been at the forefront of opposing the government, critiquing its policies, and offering constructive solutions,” Ifoh stated.

The Labour Party, he noted, has undertaken several initiatives to strengthen its position as a credible opposition, including:Establishing an Electoral Reform Committee to advocate for credible, fair, and transparent electoral processes.

Creating a Political Education Committee to reorient citizens towards a more positive and informed approach to politics.

Launching an e-membership registration platform to deepen participatory democracy, which has already attracted thousands of subscribers.

“These efforts are aimed at repositioning the Labour Party as a formidable political force,” Ifoh said, describing the allegations as baseless and damaging.

He challenged Adeyanju and others making similar claims to provide concrete evidence of any alleged collaboration between the Labour Party and Tinubu or the APC.

“It is both irresponsible and absurd to attempt to tarnish the image of a party dedicated to reforming Nigeria’s political landscape,” Ifoh concluded.

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71% of households affected by food price hike – NBS

The National Bureau of Statistics (NBS) says the most prevalent shock affecting households across Nigeria is the price increases on major food items.

The NBS said 71 per cent of households reported this shock.

The NBS disclosed this in its General Household Survey-Panel (GHS-Panel) Wave 5 2023/2024 unveiled in Abuja.

The report said urban households experienced the shock of food price increases at 75.5 per cent more than rural households at 68.9 per cent.

It said the issue was most pronounced in the South-East and South-South zones at 83.6 per cent and 79.3 per cent, respectively.

“In general, the data indicate that price hikes on essential goods are a major concern for households nationwide.”

The report revealed the other top most common economic shocks were increase in price of oil and fuel at 52 per cent, and increase in prices of other fuels at 32.2 per cent.

“This was followed by increase in price of farming/business inputs at 28.8 per cent, floods at 8.8 per cent, droughts at 5.8 per cent, and pest and plant disease at 5.7 per cent.

“Shortage/scarcity of petrol at 5.3 per cent, irregular rains at 4.7 per cent and very high temperatures (>40°C) at 4.7 per cent.”

It said these households dealt with shocks in a variety of ways, but the main coping mechanism was reducing food consumption at 48. 8 per cent.

“To cushion shock effects, some households also received assistance from friends and family at 36.1 per cent and reduced purchased quantities compared to the last at 32.6 per cent.

“In contrast, a significant proportion of households did nothing to deal with the shocks at 28.3 per cent.”

The report revealed that only 4.0 per cent of households nationwide received safety-net assistance, a decline compared to GHS-Panel Wave 4 at 10. 4 per cent.

The report showed that households in the urban areas had a higher coverage of receiving assistance at 5.2 per cent compared to rural areas which has a coverage of 3.5 per cent.

“Also households in the urban areas had a stronger reliance on cash assistance at 60.5 per cent compared to the rural areas at 49.6 per cent.”

The report said at the zonal level, the South-South and North-West zones recorded the highest share of households with safety nets at 6.7 per cent and 5.6 per cent, respectively.

The News Agency of Nigeria (NAN) reports that the GHS-Panel is Nigeria’s nationally representative longitudinal household survey which commenced in 2010 and the NBS has implemented five waves of the survey.

The panel nature of the data enables tracking household-level changes in critical areas of welfare, work, and socio-economic outcomes over time, yielding insights for policy.

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Supreme Court nullifies National Lottery Act

The Supreme Court has nullified the National Lottery Act 2005 enacted by the National Assembly, declaring it unconstitutional.

The apex court in a unanimous decision delivered by a seven-member panel on Friday held that the National Assembly lacks the authority to legislate on matters related to lotteries and games of chance, as such powers reside exclusively with state Houses of Assembly.

Justice Mohammed Idris, who delivered the lead judgement, ordered that the National Lottery Act 2005 should no longer be enforced in any state except the Federal Capital Territory (FCT), where the National Assembly is constitutionally empowered to make laws.

This judgement arises from a suit filed in 2008 by Lagos State and several other states, challenging the constitutionality of the Act.

The court’s decision reinforces the federal principle of states’ autonomy over certain legislative matters.

Details later.

News

How DSS arrested fake NGO leader

Officials of the Department of State Services (DSS) Thursday in Abuja arrested one Kennedy Tabukoi for allegedly leading an unregistered Non-Governmental Organization (NGO), the Niger Delta Development Initiative (NDDI), to blackmail certain high-profile officials of government.

According to security sources, when such government officials fail to meet Tabukoi’s demands, he resorts to organising other unsuspecting groups to lead protest marches against government officials.

One such protest march was held Thursday morning at the National Assembly gate, where Tabukoi led several groups to protest against what he claimed were moves by the federal lawmakers to stall a probe of the petroleum sector.

The sources confirmed that, unknown to Tabukoi, security operatives had been on his trail after certain officials of government reported the several attempts he made to allegedly blackmail them into parting with huge sums of money and contracts, “or risk being embarrassed.”

A security source said, “That man Tabukoi had been boasting to friends and members of his syndicate that, as a Niger Deltan activist, he would use his NGO to deal with any government official who didn’t do his bidding.

“Unknown to him, it was the same people he had been intimidating with claims of how much he would make from top government officials in Abuja that tipped off the DSS that he had no NGO and that he was merely using impersonation to blackmail such government officials.”

“When we invited Tabukoi, he didn’t waste time in corroborating the claims of his so-called friends. He said he was aware that several Niger Deltans made money from activism, reason he was in the process of raising money to register his own NGO.”

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IPOB disowns Simon Ekpa

The Indigenous People of Biafra (IPOB) has disowned Simon Ekpa

The Indigenous People of Biafra (IPOB) on Friday disowned Simon Ekpa, the self-acclaimed Prime Minister of Biafra Government in Exile (BRGIE), who was arrested in Finland alongside four others over terror-related activities.

According to the Finnish Police, Ekpa was arrested “on suspicion of public incitement to commit a crime with terrorist intent,” while the four others were arrested “for financing a terrorist crime”.

In a statement released on Friday, IPOB’s spokesman, Emma Powerful, accused Ekpa of recruiting violent criminals to destabilize the South East Region.

IPOB also disowned Ekpa, stating that he has never been a registered member of the group.

“Contrary to the deliberate and malicious misinformation from the Neo colonialist news agency, the BBC, that Simon Ekpa is an IPOB leader. Simon Ekpa has never and is not an IPOB member, let alone being a leader in IPOB,” Powerful said.

“IPOB has some family units in Finland, and Simon Ekpa is not a registered member of any IPOB unit in Finland or any other IPOB unit globally. Mazi Nnamdi Kanu established IPOB as a peaceful movement to seek Biafra Independence via a supervised UN referendum.

“IPOB is a peaceful global movement that has never taken to violence or arms struggle in two decades of our self-determination struggle. Even though the various murderous government regimes in Nigeria have provoked us, we have remained resolutely peaceful.

“It was unfortunate that some innocent Biafrans being passionate for the restoration of the stolen sovereignty of the Biafran Nation, thought that Simon Ekpa was genuinely sympathetic to the Biafra course. Sadly, they had to learn the hard way that he was a destructive agent paid to infiltrate and destroy the IPOB peaceful movement for Biafra self-determination.

“He recruited violent criminals to destabilize the South East Region in 2021. He is a self-acclaimed prime minister of a small, criminally minded group called the Biafra Government in Exile (BGIE). The infamous BGIE, led by Simon Ekpa, created a violent group that called itself the Biafra Liberation Army.”

Powerful accused Ekpa’s BRGIE group and the Nigerian Army of being responsible “for many kidnappings, rapes, forceful disappearances, killings, and burning of homes in the South Eastern region.”

News

NEC sets up National Electrification Committee to end grid collapse

NEC has set up a National Electrification Committee to end the frequent collapse of Nigeria’s power grid

The National Economic Council (NEC) has in its resolve to end the frequent collapse of Nigeria’s power grid set up a National Electrification Committee.

The Vice President, Kashim Shettima who is the chairman of NEC disclosed this in a post he shared on his official X account on Thursday night.

“The National Economic Council (NEC) has resolved to reinforce implementation of the National Electrification Strategy in a bid to end the collapse of the nation’s power grid,” the post read.

“This is just as Vice President, Kashim Shettima who is the chairman of NEC told members of the council that access to energy is a fundamental right and not a privilege because electricity is the oxygen of economic growth.”

Accordingly, the council has constituted a committee on National Electrification to help address the challenges in the power sector.

The formation of the committee was among decisions taken by NEC at the end of its 146th meeting on Thursday chaired by Shettima at the Council Chambers of the Presidential Villa, Abuja.

The committee headed by Cross River State Governor, Bassey Otu is to work towards deepening states’ engagements within the Electricity Reform Act 2023 and the National Electrification Strategy and Implementation Plan.

VP Shettima added that the private sector distributed renewable energy generation is vital to increasing electricity access across Nigeria.