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Opinion

Government Panics as Cost of Living Crisis Deepens

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Professor Jibril Ibrahim

 

Jibrin Ibrahim

The Tinubu Administration is a fanatic believer in economic liberalism and market forces. Based on its belief, it cancelled fuel subsidy and floated the naira so that it can find its true value. The naira played its part and has been rising steadily desperately searching for its true market value, which it turns out, is still very far away. The result is a “misery crisis” as food prices rise beyond the incomes of ordinary citizens whose naira is too small to enable them purchase food and hunger and anger spreads throughout the land. The President who always tells Nigerians that he understands their pains then offers a solution and orders distribution of free grains from the Strategic Food Reserves. It turned out the civil servants forgot to brief him that the reserves are empty.

Over the past few weeks, hunger and anger have led to street protests all over the country and strike threats. Our politically savvy President sensing the danger decides that since the stupid market forces are now threatening his turn to rule in peace, he must find a diversion. If you search, you will find. The Bureau de Change operators, the “Mallams”, are responsible for destroying the capacity of the “market forces” he unleashed to bring down the cost of living. He therefore got the EFCC to establish a Special Task Force across its commands, to clamp down on individuals “dollarizing” the Nigerian economy. The gun trotting operatives of the Economic and Financial Crimes Commission have since Monday been raiding Bureau de Change operators and arresting them all over the country. The task force which was inaugurated by the Executive Chairman of the Commission, Ola Olukoyede, was raised: “to protect the economy from abuses, leakages, and distortions exposing it to instability and disruption”, we were told.

Those of us of a certain age were brought up in an era in which the dollar did not circulate as a means of exchange or store of value and we used our currency, the naira. Did our Afrobeat hero Fela Kuti not do to jail for having dollars cash that he wanted to travel out of the country with to perform in a concert? Then the neoliberals told us it was imperative to allow free purchase and sell of foreign currency. They even encouraged us to open domiciliary accounts in our banks to store foreign currency which government guaranteed will be safe as the ideology of free markets requires the assurance. The Central Bank of Nigeria licensed thousands of BDCs and asked them to trade in currencies. Why the hell are they being arrested today for doing what the law asked them to do? The other panic move is to place the blame on crypto-currency websites for stealing the value of the naira. The issue is that the few people with naira, conscious of its steady and daily loss of value, would seek to protect their asset anyway they can, won’t they?

The fact of the matter is that we are simply not earning enough foreign currency to meet our high demands for imported goods. In so doing, for decades, we have relied on petroleum rent as our major source of foreign currency. Then to our shock, in 2022, the Group Managing Director of NNPCL, Mele Kyari, explained to us in a State House media briefing that most of our petroleum was being stolen so the dollars are no longer coming in. Mr. Kyari blamed various sections of the Nigerian society for being complicit in the theft of millions of barrels of crude oil, mentioning even that make-shift pipelines and stolen fuel have been found in churches and mosques.

We were told that between January and July 2022, Africa’s biggest oil producer lost an average of 437,000 barrels of oil a day to criminal entities and individuals who illicitly tap pipelines onshore and offshore in the Niger Delta region. The solution to the problem is therefore clear – stop the oil theft and more dollars will come in. The bigger issue is that for a rentier State, safeguarding the source of rent is an existential problem and simple logic should have prevailed and made the state stop the theft. The underlying reality, as we all know however, is that our political leaders and upper echelons of our security forces are beneficiaries of the oil theft. They have taken the decision to eat the goose that lays the golden egg and move to Dubai thereafter as rich refugees.

There is still an explanation needed for the astronomic collapse of the Naira over the past few weeks. What the hell is going on? The answer, says the research done by Business Day is that we should look at those with a lot of naira – government. Since the removal of fuel subsidy, the Federal and State governments have been receiving massive amounts of naira through the disbursement of money by the Federation Account Allocation Committee (FAAC). BusinessDay learnt that portions of the funds from FAAC were often changed to dollars by some governments at the parallel market, putting more pressure on the naira. Their analysis shows that from July 2023 to January 2024, the naira depreciated in the black market for the six months immediately after the FAAC shared money to the federal, state and local governments:

“With the removal of fuel subsidy, more volumes of naira are being shared by the federal, state and local governments and some of these monies are changed to dollars at the parallel market.” BusinessDay has asked us to open our eyes from now on. We should note the price of dollars one week before FAAC allocation, check back the price after the allocation and you will see clearly the difference. Let’s all do that and know that those who should go to jail are some of our governors and ministers. President Tinubu, please stop panicking, just look around you and you shall see.

Professor Jibrin Ibrahim
Senior Fellow
Centre for Democracy and Development, Abuja
Follow me on twitter @jibrinibrahim17

Opinion

Ahmad Abdulkadir Firdaus :A Successful Business Man And Philanthropist

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Abdulkadir Ahmad Firadusi

 

By AbdurRaheem Sa’ad Dembo

The fascinating story of Ilorin born businessman but resident in Kano, Ahmad Abdulkadir Firdaus is the one filled with a rare commitment and tenacious disposition. He is the Chief Executive Officer of Aquarich Integrated Services, Hydro Blue Water and Habidaus Global Concept in Kano. Indeed, no businessman or an entrepreneur would ever tell you it is easy to be in business or self employed but he has been making remarkable progress against all odds.

It interests me to write about him because I have been in the know of how he has positively metamorphosed from being an employee to become an employer of labour in the commercial city of Kano. Firdaus story is not a fairy tale as those who know him can attest to his growth in the Kano business community.

Sincerely, it is through observation of him I got to know practically that you don’t invest in a business if you don’t have time to monitor it, otherwise you would be feeding the greedy and glutton among your workers inadvertently, and before you know it, the business has collapsed. They don’t want to know how you come about the capital for the business but they would be ready to drain the resources to comatose, since no one would be around to have critical monitoring of their activities.

Successful businessmen do have challenges and that of Firdaus is no exception, especially given the current stifling inflation in the country. You must have the courage and sagacity to pull through in business with sincerity and promptness.

There was a time I visited Kano, precisely February, 2022 to attend the 40th Anniversary of Mass Communication Department in Bayero University, Kano, my alma mater. I observed him in the office and I discovered that he has full grasp of what it entails to run a business. He is an economist, so one shouldn’t expect less from him.

He is very strict but pragmatic. His strictness cannot be likened to nefariousness but proper way of doing things. He doesn’t cut corners. He will never bargain for substandard products.

As an entrepreneur you have a goal, but it should be predicated on your customers satisfaction. Without them your business will face retardation and sluggishness. That is why when you agree on a day and date for the supply of goods, do not renege. Customers develop confidence in someone based on their experience over time. If their experience is positive you are in for a good time with them.

Discipline as a core value in any setting, be it political, social or economic, will help anyone to grow; especially in business, financial discipline is key. To the best of my knowledge, Firdaus has it and his prudence is a great deal of idea.

*My relationship with Firdaus*

We are both from Ilorin but we didn’t know each other until we met in Bayero University, Kano. Although we gained admission the same time, he was a year ahead of me because his was a direct entry. Since graduation, the relationship has been sustained till today; alhamdulillahi! He is a thorough person, he neither receives ideas and/or opinions nor treat issues dogmatically. It takes a sound and convincing explanation of a subject matter to get him on the same page with one.

Our good friends, they say, are our lives. At one’s lowest hour, one must have that one person in whom to confide. This is reminiscent of Mariama Ba’s So Long a Letter in which it is said “confiding in others always pain”.

Our relationship has transformed beyond friendship, it is now a familial bond. I can remember when I attended his wedding in Kaduna in the year
2009 and he reciprocated by attending my wedding in Ilorin together with his wife, an epitome of a good wife.

He is based in Kano but his door is always open to visitors. You can’t visit his family without giving a good account of their hospitality and humility. Great men are synonymous with humility and that has been my conviction over the years.

*His Philanthropic Activities*

He is a finest gentleman with a kind heart and generous disposition.He does not have a Foundation through which he reaches out to the less privileged because he believes giving to people is a personal thing and does not require publicity. His argument has been that he is doing it for the sake of Allah, not for people to praise him, and that getting a reward for doing good is preregative of Almighty Allah.

This is unlike politicians; there is no way they can keep in secrecy if they render assistance. If they don’t say it out, oppositions would use that against them, that they have neglected the people after gaining their mandates. So it is easy for him to do it in his own way, because he is not a politician.

There are cases of where he has helped and those people would be the one to tell me much later. If he helps you the third person would not hear about it. Emphatically, he has been kind to me as well.

Ahmad Abdulkadir Firdaus does not allow his busy schedules to deprive him of the opportunity to reach out to people through associations. He is currently the Vice President II of Bayero University Kano Alumni Association, the national body. He is also the Vice Chairman of Ilorin Emirate Descendants Progressive Union (IEDPU), Kano Branch. He is a Patron of Ilorin Emirate Students Union, BUK Chapter.

He is a detribalized Nigerian; his hand of fellowship spreads beyond his tribes and associates.

*His business sojourn*

Firdaus joined Royal United Nigeria Limited in Lagos State in 2007. He was later transferred to Kano office where he rose from the position of Accounts Assistant to become Regional Manager, North. In his words “I joined Royal United Nigeria Limited in 2007 through my Guardian, Dr. Abdullahi Jibril Oyekan”

Ahmed Abdulkadir Firdaus was born to the family of Alfa Ahmad and Hajia Halima of Ile Machine, Oju Ekun Oke, Adangba, Ilorin and grew up at Sebutu compound, Ilorin. He had his primary and part of secondary school education in Ilorin before proceeding to Lagos where he completed it. He is happily married with kids.

Below are his Educational background, Awards, and excerpts of the interview with him.

*Academic Qualification

In 2005 he bagged B.Sc. Economics from Bayero University, Kano with second class upper. He also obtained Master of Business Administration (MBA) in 2011 from the same institution. In 2006 he obtained Proficiency Certificate in Management and graduate member from the Nigerian institute of Management.
He became an Associate member , Institute of Chartered Economists in Nigeria (2006).

*Awards

Award of Excellence by Ilorin Emirate Descendants Progressive Union, IEDPU Northern Zone, 2023

Award of Excellence by BUK Alumni, Ilorin Emirate chapter, 2023

Award of Excellence by An-nur Islamic Organization, BUK, 2021

Award of Excellence by Ilorin -Ifelodun Social Group, Kano, 2021

Markazul Ulum Wal Maharif Islamic School Dei Dei, Abuja, 2020

Award of Excellence by National Association of Kwara State Students, BUK Chapter, 2019

Award of Excellence by Ilorin Emirate Youth Development Association, Kano, 2019

Award of Excellence by Ilorin Emirate Students’ Union, BUK, 2016

Certificate of Merit by National Youth Service Corps, Corps Welfare Association, Giginya Barracks, Sokoto, 2007

Merit Award (Chairman Fundraising) by Ilorin Emirate Students’ Union, BUK, 2005

Merit Award (Financial Secretary) by Ilorin Emirate Students’ Union, BUK, 2005

Merit Award (Member Fundraising) by Ilorin Emirate Students’ Union, BUK, 2004

Merit Award by Markaz Agege Alumni Association, BUK, 2003/2004

Al-Adabiyya Alumni Association, BUK, 2003/2004

Merit Award (Active member) Ilorin Emirate Students’ Union, BUK, 2002

*Interview Session*

What do you sell?

I sell different types/brands/sizes of Tyres and TableWater (HYDRO BLUE)

What could be the catalyst for your success in the business world?

Determination, patience, and passion can drive a business growth.

Nigerian economic challenges are enormous, but I always tell myself that if Dangote can do it, I can equally do with determination.

What advice do you have for upcoming entrepreneurs?

Business requires pragmatism, goal-oriented, and target. Including the culture of discipline

At the early stage of business, they must be available (full participation), adopt austere approach, have some level of accounting knowledge, and financial discipline.

They should understand that there is no shortcut to success; Rome was not built in a day.

Is it always rosy for your kind of business?

Not at all, like the Yoruba would say, a person that knows the day he would make plenty of sales might know the day of his death. Is just a saying nobody knows when he or she will die. No one can determine the day he or she will make enormous sales. However, business is unpredictable, most especially in the face of the current inflation that has influenced price instability.

It is obvious that even in the business world there are challenges but your ability to cope with its complexity and dynamism will determine how far you would go. This doesn’t rule out the significance of prayers as you weather the storm gradually. Our young men and women should cultivate the habit of sincerity and patience. Nothing good, they say, comes so easy. Get-rich-quick syndrome can’t be a way out of poverty but the road to doom. Patience is key to every facets of our lives just as Hausa saying “Hakuri maganin zaman duniyan”. Meaning patience is the key to successful life.

Firdaus, as a businessman is an example of those who would do their businesses diligently and would not surcharge the people.

He is in Kano, doing his business with utmost standard and excellent customer relations. Please patronise him for a life changing experience.

abdurraheemsaaddembo@gmail.com

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Opinion

Exposing the fraud in NASS budget-Jaafar Jaafar

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By Jaafar Jaafar

In an unprecedented budget fraud, the National Assembly has appropriated N370 billion on running costs, contingency, vague and duplicated projects for the Senate and House of Representatives in the 2024 Appropriation Act.

I’m not talking about the hundreds of billions of naira padded in other ministries, departments and agency, but what they budgeted for their welfare and running of the National Assembly.

In the N370 billion NASS budget, the lawmakers duplicated projects and created new, unnecessary projects that increased the budget from N170billion in 2023 to N370 billion this year.

In budget (under Statutory Transfers ), the NASS budgeted 36,727,409,155 for the National Assembly Office; N49,144,916,519 for the Senate; N78,624,487169 for the House of Representatives; N12,325,901,366 for the National Assembly Service Commission and; N20,388,339,573 for Legislative Aides.

A senator recently told me that each of them (and members of the House of Reps) is entitled to five aides, while the four presiding officers (Senate President, Speaker and their deputies) have at least 3,000 aides. In total, you are talking about over 5,000 aides!

Despite the foregoing, the NASS budgeted N30,807,475,470 for “General Services” and N15billion as “Service-Wide Vote” – known in administrative parlance as “contingency” or “security vote”. The NASS never had anything like service-wide vote in the past as “service-wide vote” is always exclusive to the Executive arm. Insiders said this is a clear case of budget padding as the purpose for the huge appropriations are vague.

Even the retired clerks and perm secs (despite receiving their pensions) are not left out in this public funds buffet as they got N1.2billion padded for them.

Apart from padding the intangibles, the NASS will spend N4billion to build recreation center; about N6billion to furnish committee rooms for the two chambers and; another N6billion to build car parks for senators and members (don’t ask me whether they lack any parking space).

And despite this, the lawmakers padded N30 billion in the FCDA budget for “Completion of NASS Chambers” and N20billion for “completion of NASS Service Commission”! In the same budget, the lawmakers set aside another N10billion (under NASS budget) for the completion of National Assembly Service Commission building! How did this happen? No be juju be dis?

Still hungry to devour public resources, the avaricious parliamentarians budgeted another N3billion for the “Upgrade of NASS Key Infrastructures”. How come? What about the N30billion budgeted for “Completion of NASS Chambers”?

NASS Library Complex, named after President Tinubu’s Chief of Staff, Femi Gbajabiamila, got N12billion as take-off grant and another N3billion for purchase of books.

Like other institutions under NASS, the National Institute for Legislative and Democratic Studies got N9billion without clearly stating how or where the resources will apply to. The same institute also got another N4.5billion (is this ‘jara’?) for completion of its headquarters.

Despite the dedicated powerline and powerful generators backing up power supply in the National Assembly, the lawmakers budgeted N4billion to install solar power system. I guess this will give them a reason to pad billions for the purchase of batteries every year.

The committee that superintended this butchery of public resources, the Appropriations Committees of the Senate and the House of Reps, got N200m each for a job well done.

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Opinion

Workers’ Day and The Nigerian Workers In Perspective

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By AbdurRaheem Sa’ad Dembo

Every 1st of  May workers celebrate their day globally .It is always a day of reflection, celebration and emancipation of workers around the world.

In Nigeria,May Day as a holiday was first declared by the People Redemption Party (PRP) Government of Kano State in 1980.Afterwards it became a national holiday on May 1, 1981

Before venturing to restrict myself to Nigerian workers let me take a broad look at how May Day emerged in the world.Workers’ Day, stemmed in part, from an ancient European Spring festival,but its modern manifestations arise from the organised efforts of socialist and communist groups to establish a time for honouring workers and the working class.To be specific, the holiday was first promoted by the International Workers Association in 1904 to commemorate the slaughter of protesting labourers in Haymarket Square in Chicago ,United States of America in 1886 and it was to be a day to push for the eight-hour work day and other demands.

The date May 1st was chosen because,in the USA, the eighth- hour workday first came into effect on that date in 1886.It was predicated on the demands of the Federation of Organized Trades and Labour Unions.There was a general strike and a riot in Chicago in 1886, and eventually, the eight -hour workday was legally recognised.

Many people tend to attend the National May Day celebration in Abuja and other State capitals.The president or State Governors would be there as the case may be to make a speech, and thousand would fill the Eagle Square or state stadium to listen to the President or Governor.Some people attend number of other events that hold across Nigeria on May Day,organized by schools,labour unions,hospitals,and other various institutions.People use the day for relaxation since it is a public holiday.

In Nigeria,some people participate in nationwide marches and rallies on workers’ Day or Labour Day.More often their major concerns are usually to clamour for an increase in the minimum wage,an end to workers being left unpaid for months,the need for government action to address the high unemployment rates of recent years ,and the necessity for government action to address the high unemployment rates of recent years, and the need to move Nigeria off of over dependence on petroleum exports.

On a May Day in Nigeria, politicians and labour leaders will give out speeches on the strength and the challenges of Nigerian economy , and on how to improve it for the general good of the country.

It is significant to say that Nigerian workers both in public and private sectors are facing enormous challenges.The disparity in the salary structure and irregular payments of salary as witnessed before the coming of Buhari’s administration in 2015, where a lot of state Governors could not pay their workers for several months.

The Buhari administration ensured that bailouts were given to states to enable them offset their unpaid salaries to workers.That was a plus for the Daura man administration.

Meanwhile, President Tinubu’s administration has also sustained the legacies of prompt payment of workers salaries in the last one year.It is expected , because even as Lagos State Governor he had no history of owing workers.

In a larger context, welfare of Nigerian workers are not properly taken care of, most especially those in private sectors.There are situations where teachers in private schools are being paid peanuts as salaries,whereas the owners or proprietors charge the parents homongous school fees.This is not a hearsay I was once in that shoe as an English language teacher.

The area where the civil servants in both Federal and States are feeling the heats is the non regular payment of promotion arrears.According to sources some agencies under federal government are being owed promotion arrears since 2018.This is not a healthy practice, though some sources said the federal government has put the payment in batches and it is now being paid bit by bit.In some states the promotions are not even implemented let alone payment of its arrears

As Nigerian workers join others around the world to mark 2024 workers’ Day,it is expected that the ongoing negotiation by the federal government and labour leaders on new minimum wage will yield good results.

It is imperative to say that the Federal Government should fix the economy for the collective good and progress of the country.No minimum wage can ameliorate poverty, if there is consistent economic instability.

The level of inflation ravaging Nigerian economy is worrisome.Any minimum wage that is less than hundred thousand naira today won’t make any appreciable impacts in the lives of average Nigerian workers.

Essentially,Corruption can only be tackled effectively and holistically,if there is a reasonable living wage for the civil servants.You can’t fight corruption in a country where workers welfare and retirement package are relegated to the background.According to the human rights lawyer,Femi Falana ” corruption cannot be meaningfully fought by governments that pay poor wages to workers,owe workers and pensioners arrears.”

To the NLC and TUC leaders, providing sincere leadership is key to the quality ,emancipation and progress of Nigerian workers.Adam Oshiomhole was an example of a good labour leader in the history of Nigeria.He stood for the workers even in the face of oppression.So the current leaders should take a cue from his tireless comradeship for the benefit of Nigerian workers.

 

Nigeria is a blessed country and a land of prosperity; her workers have no reason for penurious lives.

Happy Workers’ Day

abdurraheemsaaddembo@gmail.com

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