National Issues
Has fuel, gas price come down to N87? FCT civil servants reject NBS report on recession
For days, Gbenga Odunsi, a journalist, toured five of the federal ministries in Abuja, spending time with civil servants over the NBS report that Nigeria is officially out of recession. His findings show that majority of the civil servants do not believe the report. Nigerians wants to feel the NBS statistics in their stomach before they believe. Those who believed it explained that it will take time before Nigerians can feel it, Gbenga writes.
The news of Nigeria’s exit from recession did not only come as a shock but also generated much controversy. While many are of the opinion that the recession is still hitting hard in the economy, others say it’s a past story.
Official results from the National Bureau of Statistics (NBS) had shown that the economy grew at 0.55 per cent in the second quarter (Q2) of 2017, effectively removing Nigeria out of recession.
The statistics office attributes the economic recovery to the performance of four main economic activities comprising oil, agriculture, manufacturing and trade.
The Nigerian economy slipped into recession in early 2016.
This news had struck many Nigerians leaving them in doubt of the NBS report. In separate interviews, the journalist spoke with some civil servants in the nation’s city capital and got divergent views.
Reactions
When asked if he was happy that the country had journeyed out of recession, Tunde Bankole, a staff of ministry of information simply smiled and stood up from his black leather office chair, looked out through the window, and sat back on his chair.
With a sad face, Tunde queried that if Nigerians who lost their jobs during the recession period get their jobs back, and the high prices of commodities drop down to the pre-recession prices, then Nigeria is truly out of recession, but is the reverse is the case, then the NBS statistics is a hoax.
“Does this translate to all or a greater percentage of people who lost their jobs gaining it back? Does this translate to prices of commodities in the market dropping drastically?
“Does this translate to improved standard of living for the Nigerian populace? Does this translate to businesses bouncing back?
“If no, then those things are mere figures that are not in tandem with reality”.
When Ijebu garri is the yardstick for measuring recession
In his opinion, Jide Akintunde, an administrative officer at the ministry of education, lamented that the exit from recession has not shown in the prices of foodstuffs.
“So, leaving recession was just in the paper, we haven’t seen it in real life.
“Let the prices of Ijebu garri and bag of rice come down so we can really say recession is over”, he added.
Time factor
However, Ndubisi Julien, a public affairs analyst at ministry of finance felt excited to respond to the journalist. “This is the type of question I like to answer” she said.
She commended the Buhari-led administration for leading the country out of the worst economic recession, adding that Nigerians may not necessarily feel the impact of the exit immediately.
Ndubisi lamented that Nigerians are ignorant of the way recession and its exit works, adding that people use the word without in-depth knowledge of its operations.
“It is obvious Nigerians don’t know what recession is all about, they have only been using the term because they heard it on TV/radio.
“Most of them think exiting recession mean a drop-in price of garri.
“Once the economic variables stabilize, it will start reflecting in the lives of the people, although it may take time but we are getting there”, she concluded.
Ndubisi however urged Nigerians to exercise patience till October before they start feeling the new waves of the post-recession period.
Revving the engine of his Toyota Camry at the ministry’s parking lot, obviously on his way out, Gerald Lawrence, an account at the ministry of health commended the Vice President, Prof. Yemi Osinbajo for his efforts in stabilizing the economy of the country while President Buhari was away on his medical trip to London.
Lawrence further explained that it will take some time for the development to reflect on the lives of Nigerians, adding that prices hardly drops down when it goes up in Nigeria.
“Good development, truth be told, Osinbajo contributed a lot to improving the economy, but it is still Buhari’s administration that gave Osinbajo – a technocrat- the opportunity to so.
“It will however take some time for the development to reflect in the life of the average Nigerian especially considering the fact that anything that goes up in Nigeria never comes down”.
Some have accepted fate
boredom is killing me, ye eh eh
boredom is killing me, ye eh eh
pour me holy water make i find my square root
emi o s’ere
ko s’ina, ko s’omi
economy yi ti fe so mi di were…
sugbon, emi o ni je k’economy kill mi oh
ma jo, ma yo
economy no go give me heart attack oh
ma jo, ma yo
economy no go give me high blood pressure oh
ma jo, ma yo…Economy song by 9ice
This was the song Prince Olalekan Ibrahim, communications officer at the ministry of transportation, was playing on his android phone when the journalist approached him.
Dressed in a white native wear, guinea material to be specific, Olalekan paid much attention to his laptop, while singing the 9ice ‘Economy’ song at the same time.
When asked of his opinion on the NBS report that Nigeria is out of recession, Olalekan asked the journalist to give him few minutes to round off his work – it was almost closing hour.
Responding to the question, Olalekan explained he does not worry himself with issues bothering around Nigeria and its economic state. He noted that the APC-led administration is not concerned whether an average Nigerian feeds well or not.
The 9ice fan further noted that he has decided to make himself happy no matter what happens in Nigeria as it is obvious the government doesn’t care about its citizens.
He lamented on the report by NBS describing it as politically motivated scheme to make Nigerian believe the Buhari administration is working.
“Now answer me, what are the physical indices that shows we are out of recession? Prices of essential commodities rose to the ceiling level and that was the beginning of recession in Nigeria
“Now they are telling us that recession is over- the question is, has those prices come down?
“Has fuel/gas price come down to N87?
“Has people who lost their jobs been reinstated?”
“Has the foreign exchange returned to where Buhari and his government met it in 2015? Olalekan queried.
“Until all these are reversed, you can come out to say Nigeria is out of recession. If you dare me, then go to Wuse market and say this and see if you will not be beaten to pulp”, Olalekan added.
Sometimes, you just don’t know the source of some people’s anger
“Why did they make Lai Mohammed the government spokesperson”
This was the answer that welcomed the journalist’s question when he asked Paul Iredia, a staff at the ministry of industry, trade and investment his position on the NBS report.
Iredia, a middle-aged man with grey hairs on his head fumed and responded with anger over APC-led administration and their economic policies. It took the grace of God for the young journalist to escape
“slaps” from the obviously anti-Buhari civil servant.
“This same government told us Boko haram has been defeated but we still hear of boko haram attacks in the Northeast
“How many people ate meat this morning?
“Where did they get the statistics from, market or office?
Iredia lamented over how Buhari-led government plunged the country into recession. He explained that at the 4th quarter of 2015, the economy was flourishing fine but by the 1st quarter of 2016, the economy was languishing.
Knowing fully well that the journalist wasn’t comfortable with his outburst, Iredia calmed down a bit and concluded by saying “we need to see the effect of the statistics on our tables before we can rightly say we have exited the recession”.
When a Muslim quotes verses from the Bible
Umar Mohammed, an administrator at the ministry of environment was quick to liken Nigerians with the Israelites, explaining that when Moses was leading the Israelites of out Egypt to the promise land, they were faced with numerous difficulties on their way.
While in Egypt, they were convinced God really sent Moses to deliver them from the wicked hands of king Pharaoh. Following the difficulties they encountered, they the Israelites demanded that Moses return them back to Egypt – This is how Nigerians are behaving, Umar said.
“When NBS declared that Nigeria has entered recession with facts and data to back it up, everyone accepted, even the government in power accepted the fact. Nigerians did not call it a campaign. The government accepted the fact and accepted responsibility and promised to improve the economy.
“Now the same NBS that declared recession has said we are out of it with data to back up their facts but some elements have decided to play politics with it and are now saying it is a lie and that it was politically motivated.
“Everyone is now talking as if manna were falling down from heaven prior to the recession period.
“Atiku is saying food must be on the table of every Nigeria for us to believe we are truly out of recession as if during the pre-recession period, everyone was eating 3-square meal.
“Every Nigerian is now acting like we had constant electricity, good road, potable water, good and consistent health care, good education system, until recession came and scattered everything.
“Funny enough, when NBS declared recession, nobody demanded for all these explanations, we all accepted the fact, now Nigerians are demanding explanation of how the country exited recession”, he concluded.
National Issues
Nigeria’s Foreign Debt Servicing Hits $3.58bn in Nine Months, Pressuring Budgets
The Nigerian government spent a staggering $3.58 billion on servicing foreign debt within the first nine months of 2024, marking a significant 39.77% increase compared to the $2.56 billion expended over the same period in 2023.
This data, drawn from a recent report on international payment statistics by the Central Bank of Nigeria (CBN), reflects a concerning rise in the country’s foreign debt obligations amid depreciating currency values.
According to the report, the most substantial monthly debt servicing payment occurred in May 2024, totaling $854.37 million. This is a substantial 286.52% increase from May 2023’s $221.05 million.
Meanwhile, the highest monthly payment for 2023 was $641.7 million in July, underscoring the trend of Nigeria’s escalating debt costs.
Detailed analysis of monthly payments further illuminates the trend.
In January 2024, debt servicing costs surged by 398.89%, reaching $560.52 million, a significant rise from $112.35 million in January 2023. However, February saw a modest reduction of 1.84%, with costs decreasing from $288.54 million in 2023 to $283.22 million in 2024. March also recorded a decline of 31.04%, down to $276.17 million from $400.47 million the previous year.
Additional fluctuations in debt payments continued throughout the year, with June witnessing a slight decrease of 6.51% to $50.82 million from $54.36 million in 2023. July 2024 payments dropped by 15.48%, while August showed a 9.69% decline compared to 2023. September, however, reversed the trend with a 17.49% increase, highlighting persistent pressure on foreign debt obligations.
With the rise in exchange rates exacerbating these financial strains, Nigeria’s foreign debt servicing costs are projected to remain elevated.
The central bank’s data highlights how these obligations are stretching national resources as the naira’s devaluation continues to impact debt repayment in dollar terms.
Rising State Debt Levels Add Pressure
The federal government’s debt challenges are mirrored by state governments, whose collective debt rose to N11.47 trillion by June 30, 2024.
Despite allocations from the Federal Accounts Allocation Committee (FAAC) and internally generated revenue (IGR), states remain heavily reliant on federal transfers to meet budgetary demands.
According to the Debt Management Office (DMO), the debt burden for Nigeria’s 36 states and the Federal Capital Territory (FCT) rose by 14.57% from N10.01 trillion in December 2023.
In naira terms, debt rose by 73.46%, from N4.15 trillion to N7.2 trillion, primarily due to the naira’s depreciation from N899.39 to N1,470.19 per dollar within six months. External debt for states and the FCT also increased from $4.61 billion to $4.89 billion during this period.
Further data from BudgIT’s 2024 State of States report illustrates how reliant states are on federal support. The report revealed that 32 states depended on FAAC allocations for at least 55% of their revenue in 2023.
In fact, 14 states relied on FAAC for 70% or more of their revenue. This heavy dependence on federal transfers underscores the vulnerability of states to fluctuations in federal revenue, particularly those tied to oil prices.
The economic challenges facing both the federal and state governments are stark. The combination of mounting foreign debt, fluctuating exchange rates, and high reliance on federally distributed revenue suggests a need for fiscal reforms to bolster revenue generation and reduce vulnerability to external shocks.
With foreign debt obligations continuing to grow, the report emphasizes the urgency for Nigeria to address its debt sustainability to foster long-term economic stability.
National Issues
Rep. Oseni Urges Urgent Action on Rising Building Collapses in Nigeria
Engr. Aderemi Oseni, representing Ibarapa East/Ido Federal Constituency of Oyo State in the House of Representatives, has called for a prompt investigation into the increasing occurrences of building collapses in major cities across Nigeria.
In a motion presented to the House on Wednesday, Oseni expressed deep concern over the alarming frequency of building collapses, emphasising the threat they pose to the lives and property of Nigerians.
The APC lawmaker, through a statement by his media aide, Idowu Ayodele, cited the recent collapse of a two-storey school building at Saint Academy in Busa Buji, Jos, Plateau State, on July 12, 2024. The tragic incident, which trapped 154 people and claimed 22 lives, is the latest in a series of similar disasters, raising serious concerns nationwide.
Oseni also referenced a report from The Punch newspaper, which revealed that Nigeria had recorded 135 building collapse incidents between 2022 and July 2024.
“This figure is alarming and unacceptable,” he stated, stressing the urgency of preventing further occurrences.
The Chairman of the House Committee on Federal Roads Maintenance Agency (FERMA), Oseni reminded the House that the Council for the Regulation of Engineering in Nigeria (COREN) and other relevant professional bodies are responsible for ensuring compliance with building standards and practices.
“Despite these regulatory frameworks, the recurring collapses suggest that enforcement is lacking. The loss of lives, properties, and resources is staggering, and this disturbing trend must be addressed immediately,” he remarked.
He proposed the formation of an Adhoc Committee to investigate the underlying causes of these collapses and recommend both immediate and long-term solutions.
Also, he urged the House Committee on Legislative Compliance to ensure swift implementation of any recommendations.
The House agreed to deliberate on the motion and is expected to present its findings and proposed actions within eight weeks.
National Issues
Corruption Among Political, Religious Leaders Stalls Nation-Building – Olugbon
The Vice-chairman of the Oyo Council of Obas and Chiefs, Oba Francis Olusola Alao, has expressed deep concern over the increasing involvement of religious leaders in material pursuits, accusing them of abandoning their spiritual duties in favour of wealth and influence.
Oba Alao, who is also the Olugbon of Orile Igbon, made this statement during a visit from the leadership of the Cherubim and Seraphim Church Movement “Ayo Ni O,” led by Baba Aladura Prophet Emmanuel Abiodun Alogbo, at his palace in Surulere Local Government on Thursday.
The monarch accused some religious leaders of sharing part of the blame for the moral and political crises that have engulfed the nation. According to him, spiritual leaders, once seen as the moral compass of society, have become compromised by corruption, aligning themselves with the very forces they should condemn.
Oba Alao was unapologetic in his criticism, stating, “Ninety-five percent of Nigerian leaders, both political and religious, are spiritually compromised.”
He argued that this moral decay among clerics has made it impossible for them to hold political leaders accountable or speak the truth to those in power, as their integrity has been eroded by their pursuit of material wealth.
“Carnality has taken over spirituality. Our religious leaders can no longer speak the truth to those in authority because their minds have been corrupted. Most of the so-called General Overseers (G.O.) are corrupt and perverted,” Oba Alao added.
He stressed that this shift towards wealth accumulation at the expense of spiritual values has greatly contributed to the country’s stagnation in development and social justice.
Olugbon urged both religious leaders and traditional rulers to reflect on their actions, reminding them that they would be held accountable for their stewardship, both in this world and the next.
“The prayers of sinners are an abomination before God, hence the need for our leaders to rethink,” he warned.
The monarch concluded by reiterating the transient nature of power and the importance of staying true to sacred duties, regardless of the temptation to indulge in worldly gains. “I am a traditional ruler. I don’t belong, and will never belong, to any occultic groups,” he emphasised, drawing a clear line between his position and the corrupt practices of some leaders.
In response to the Cherubim and Seraphim Church Movement’s request for collaboration on community development projects, Oba Alao assured them of his support.
“Your requests are aimed at the development of the Orile Igbon community. I am assuring you that necessary assistance will be provided in this regard.”
Earlier, Prophet Alogbo requested the monarch’s collaboration on a range of community development projects. These initiatives include the establishment of a women and youth empowerment center, clean drinking water initiatives, a bakery, animal production facilities, and farm produce processing.
Other proposals included a diagnostic and medical center, a full-size recreational sports facility, and a home care facility for the elderly.
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