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Subsidy Gone, Hardship Remains: Economist Blames Policy Missteps, Debt Burden for Nigeria’s Deepening Crisis Amid Tinubu’s Borrowing

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By Yusuf Danjuma Yunusa

Amidst growing public discontent over persistent economic hardship and the Federal Government’s continued reliance on borrowing, former Central Bank Governor and current Emir of Kano, Sanusi Lamido Sanusi, recently questioned the logic behind President Bola Tinubu’s borrowing spree despite the removal of the long-criticised fuel subsidy.

In an exclusive interview with our correspondent, a prominent economist and financial analyst at a reputable establishment, AbdulWahab Olalekan, dissected the paradox, arguing that the administration’s promises to “stop the hemorrhaging” have yet to materialise because the wound has only been relocated.

When asked whether this economic dislocation is driven by global forces or local mismanagement, Olalekan did not mince words. He attributed the severity of the current hardship primarily to “local structural deficiencies and poor policy sequencing”—specifically the twin shocks of subsidy removal and foreign exchange (FX) liberalisation.

“The relocation of this hardship is primarily the result of local structural deficiencies and policy sequencing (FX liberalisation shock following subsidy removal), though it has been heavily compounded by global economic headwinds,” Olalekan said.

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He stressed that most economists agree the removal of the subsidy was a long-overdue necessity. However, the problem, he explained, lies in the “blunt execution of the transition.” He pointed to two critical domestic failures: the absence of effective social safety net programmes to cushion the blow for ordinary Nigerians, and the country’s “huge debt servicing blackhole” which has swallowed much of the revenue that should have trickled down to the populace.

“The severity of the current hardship is less about the removal of the subsidy itself… and more about the underlying fragility of the Nigerian economy and the blunt execution of the transition. Notably, failure to provide effective social safety net programmes to cushion impact and the fact that the country’s huge debt servicing blackhole sucked some of the subsidy revenue that should typically have trickled down to the average Nigerian,” he explained.

But while local dynamics set the stage, the economist acknowledged that global macroeconomic forces have acted as a devastating multiplier. He noted that the current high global interest rate environment has forced emerging markets like Nigeria to borrow at an expensive premium, further worsening the fiscal picture. Additionally, sticky global inflation has directly fed into Nigeria’s import-dependent economy, accelerating imported inflation.

“The high global interest rate environment meant that countries in the emerging and frontier markets like Nigeria had to borrow at an expensive premium further exacerbating our fiscal picture while the stickiness of global inflation meant increased imported inflation since we are largely an import-dependent nation,” Olalekan stated.

He, however, offered a sliver of relief, observing that the inflation trajectory would have been even worse were it not for the operationalisation of the Dangote Refinery and certain reforms introduced by the Central Bank of Nigeria (CBN).

“Thanks to the Dangote Refinery and some of the CBN reforms, the inflation situation could have been worse,” he concluded.

As the Tinubu administration continues to defend its borrowing plan in the face of mounting scrutiny, Olalekan’s diagnosis suggests that without fixing domestic structural flaws and providing tangible relief, removing the subsidy alone will remain a repositioning of pain rather than a cure.

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FG Approves Payments to 1,240 Contractors

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By Yusuf Danjuma Yunusa

The federal ministry of finance says it has approved payments to more than 1,240 contractors across ministries, departments and agencies (MDAs).

In a statement on Monday, Mary-Ann Duke, senior special assistant on communication and press secretary to the minister of finance, said the approval followed a verification and reconciliation exercise to validate outstanding obligations.

Duke said contractors with verified claims of N100 million or less were prioritised in the latest batch of payments.

“The Federal Ministry of Finance has approved payments to more than 1,240 contractors, providing immediate liquidity support to businesses across the country and reinforcing the Federal Government’s commitment to meeting its financial obligations,” the statement reads.

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The ministry said the payments would provide relief to indigenous businesses and small and medium-sized enterprises (SMEs), enabling them to return to project sites, pay workers and settle suppliers.

“Contractors prioritised for payment in the most recent batch are those with verified claims in the region of N100 million or less,” Duke said.

The ministry added that the federal government has processed more than N700 billion in verified obligations owed to local contractors in recent months.

The statement said within the month of May alone, approximately N436.6 billion in transactions were processed, demonstrating a significant acceleration in payment activity aimed at unlocking liquidity and supporting economic growth.

According to the ministry, prioritising smaller contractors is intended to spread the impact of the disbursements across sectors and regions, while helping businesses sustain operations, preserve jobs and complete ongoing projects.

The ministry said the latest payments are also expected to boost confidence among contractors, suppliers and service providers doing business with the government.

In January, local contractors prevented Doris Uzoka-Anite, the former minister of state for finance, from accessing the ministry.

Six months later, the senate constituted a panel to engage the finance ministry on debts owed to contractors.

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Faleke Tasks Civil Servants to Resist Political Pressure

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By Yusuf Danjuma Yunusa

The Chairman, House of Representatives Committee on Finance, James Faleke, has said Nigeria’s quest for rapid development depends largely on the willingness of civil servants to uphold integrity and due process, even in the face of pressure from political office holders.

Faleke spoke in Abuja on Sunday evening on the sidelines of the launch of a book titled “The Nigerian Legislature: A Practical Guide for Lawmakers,” written by the retiring Clerk of the House Committee on Finance, Oscar Okoro, to mark his 60th birthday and retirement from service.

The lawmaker said civil servants remain the backbone of governance and play a critical role in ensuring that government policies and programmes are implemented in line with established rules and procedures.

“The civil service mainly builds the country. They are the technocrats. They are the people that we politicians rely on,” Faleke said.

“And if the civil servant decides to get this done properly, I think the country will be better off. Even when the politician says, let us do it the other way, and he says no, let us follow the rules, I think Nigeria will be better off.”

According to him, dedication to national development requires a genuine commitment to the country’s success and institutions.

“It is about dedication to the development of Nigeria. When you trust and believe in the country, you will want to see the success of the country,” he added.

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Faleke described Okoro as a dedicated, committed and hardworking public servant whose career should serve as an example to younger generations entering public service.

“Okoro is a very hardworking guy. Unlike others, he is not money-conscious; he just wants to see things done accordingly and appreciably. For every time I push him hard, he works harder. I believe he is going to succeed very well in his retirement,” he said.

Also speaking, Deputy Chairman of the House Committee on Finance, Abubakar Saidu, said his relationship with Okoro had grown beyond official engagement into a family bond.

He described the retiring clerk as a consummate professional whose conduct and work ethic offer valuable lessons for younger public servants.

“He is very dedicated, very patient. He is a professional, excellent and committed as well as exemplary when it comes to the job,” Saidu said.

The House spokesman, Akin Rotimi, also paid tribute to Okoro, describing him as a model public servant whose career embodied integrity, diligence and commitment to duty.

“My encouragement to people in service is that this is the kind of person to model and pattern their careers after, people who have integrity and diligence as their watchword,” Rotimi said.

He noted that although the National Assembly has institutional mechanisms for mentoring and leadership development, Okoro’s experience and expertise would be difficult to replace.

Responding, Okoro attributed his achievements in public service to God, hard work, patience and humility.

“Life itself is a very difficult and cautious journey. You have to know your onions, be hardworking, be patient, humble and respectful. If these are lacking, you are bound to fail either in the National Assembly or anywhere in life,” he said.

The retired clerk said he would return to legal practice and consultancy while devoting more time to mentoring young people and serving God.

Earlier, the reviewer of the book, Professor Kabir Danladi of the Department of Public Law, Ahmadu Bello University, described the publication as a reflection of the author’s dedication during his 27 years of service.

Danladi said the 335-page book provides a practical guide to the workings of Nigeria’s legislature, particularly the National Assembly, covering its constitutional foundations, internal structures, legislative procedures, oversight responsibilities and relationship with other arms of government.

According to him, the book is organised into nine chapters and offers both historical and practical insights into legislative practice, making it a valuable resource for lawmakers, political actors, students and citizens seeking a deeper understanding of parliamentary governance.

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Dangote Cement Deploys AI, Telematics to Enhance Transport Safety

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Dangote Cement Transport has scaled up series of impactful, and technology backed programmes designed to improve performance, governance and compliance to road safety.

A statement from the Branding and Communications Department of the company said the enhanced programmes cover key operational areas, including performance metrics, strengthened governance standards, and improved accountability frameworks.

It further noted that the programmes also extend to comprehensive driver training and competency development, technology-enabled safety systems, journey management protocols, and regular recertification processes.

Other components include mandatory drug screening, strategic partnerships and collaborations, as well as environmental, social, and governance (ESG) commitments, sustainability programmes, and community impact programmes, among others.

The statement signed by the company’s spokesman, Anthony Chiejina, recalled that the Federal Road Safety Corps (FRSC) had recently commended the company for its proactive safety programmes, which have contributed to reducing road traffic crashes across the country.

The statement quoted Head of Transport of the Dangote Cement Plc, Mr. Murilo Silva, as saying that the company has upscaled its transport management systems through the deployment of automated inspection technologies and artificial intelligence-driven solutions aimed at enhancing operational efficiency and road safety.

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Mr. Silva said the company has since deployed enhanced GPS and telematics systems for real-time monitoring of driver behaviour during transit, strengthening oversight and operational safety across its fleet.

He added that, in a bid to combat driver fatigue, the company has increased its wellness campaign, while also engaging in a series of stakeholder fora with third-party truck operators and drivers to reinforce safety awareness, compliance, and responsibility on the road.

Mr. Sliva said the company’s collaboration with the Federal Road Safety Corps (FRSC) is already yielding positive results, noting that the partnership has continued to strengthen safety standards across its operations.

He added that FRSC officials are actively involved in the training and screening of drivers at the Dangote Articulated Vehicle Driving School in Obajana, where they provide technical guidance, enforce compliance with best practices, and support the development of highly competent and safety-conscious drivers.

According to him, the percentage of drivers undergoing structured training, drug and alcohol testing, as well as periodic recertification, has increased significantly, describing the growth as “astronomical.”

According to him, between the first quarters of 2025 and 2026, Dangote Cement Plc, Obajana, recorded significant improvements in its safety compliance measures, with drug and alcohol testing increasing by 245.2 per cent, pre-trip vehicle inspections rising by 489.1 per cent, and driver training programmes expanding by 128.4 per cent.

Corps Marshal of the FRSC, Shehu Mohammed, had commended the company for setting new standards in road safety management and urged it to sustain the reforms that have continued to improve safety across Nigeria’s transport sector.

The Corps Marshal stated that comparatively between 2025 and 2026, road crashes involving trucks belonging to the Dangote Cement Plc declined by 56 per cent, while fatal cases decreased by 36 per cent and injuries dropped significantly by 52 per cent.

He said the improvement has shown that the company has implemented its Gap Analysis, and company policies worthy of emulation by all logistics companies in Africa.

“We have always said that if Dangote Cement get its right, Nigeria and Africa, will get it right. This is a plus for Nigeria,” he said.

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