Inflation: Federal Govt Moves To Exempt Minimum Wage Earners From Income Tax

November 23, 2020

In order to reduce the impact of inflation on Nigerians, the Federal Government is proposing, through the 2020 Finance Bill, the exemption of minimum wage earners from the Personal Income Tax.
The exemption, which was described as an“incentive” to the workers in public sector, will ensure the resilience of the Nigerian economy to exogenous shocks.

President Muhammadu Buhari, who made these known in a speech he delivered virtually by Vice President Yemi Osinbajo today, November 23 at the opening session of the 26^th Nigerian Economic Summit Group Conference, said: “we are proposing in the new Finance Act that those who earn minimum wage should be exempted from paying income tax.
“These provisions which complement the tax breaks given to small businesses last year will not only further stimulate the economy, but are also a fulfilment of promises made to take steps to help reduce the cost of transportation and the impact of inflation on ordinary Nigerians.”
He acknowledged the role of the private sector in building a resilient economy, stressing: “this government has always emphasized that the private sector has a key role to play in our efforts to build a more resilient and competitive economy as expressed in the Economic Recovery and Growth Plan.
“Private companies in design, construction, logistics and finance are very much engaged in our infrastructural projects in power and rail as well as road and bridges and the installation of broadband infrastructure which is an essential requirement if Nigeria is to participate actively and benefit from the 4th Industrial Revolution.
“It is clear that we must diversify the economy away from dependence on crude oil exports, speed up human capital development and improve on infrastructure. Above all, our economy must be made more resilient to exogenous shocks. It is important for the private sector to play a key role as we work together to identify national priorities and try to influence our future national trajectory.”
The President also gave insights into the collaboration between the CBN, the Nigerian Sovereign Wealth Investment Authority (NSIA) and other stakeholders in the creation of an Infrastructure Company (Infraco) Fund to address some of the nation’s critical infrastructure needs.
“It goes without saying that partnerships remain essential to attract the resources for building a solid national infrastructural base. I am pleased to inform you in this regard that we are working actively with the Central Bank, Nigerian Sovereign Investment Authority and State Governments under the auspices of the National Economic Council to design and put in place a N15 trillion Infraco Fund which will be independently managed.
“The Infraco Fund will help to close the national infrastructural gap and provide a firm basis for increasing national economic productivity and growth.”

The President restated the commitment of his administration to sustaining collaborations with the private sector in addressing challenges, adding: “if there is one single lesson to be learnt from the COVID-19 pandemic, it is that partnerships are essential for credible responses with lasting effects.
“Our national journey to economic prosperity is a long one, so we must all certainly work together. As we saw, partnerships were essential when we were faced with the serious challenge of combatting COVID-19.
“We saw the key role that partnerships played in our national effort to combat the COVID-19 crisis. While Federal and State Governments worked together to manage the health response and ensure the establishment of isolation centres and availability of test kits, personal protective equipment, and medicines, the private sector also played an active role as individual entities, and also worked together in groups like the Coalition Against COVID-19.”
The themed of the Conference is: “Building Partnerships for Resilience”.

Police Boss Promotes Over 82,000 Junior Officers

Editorial staff

November 23, 2020

The Inspector-General of Police (IGP), Mohammed A Adamu approved the promotion of 82,779 Junior Police Officers to their next ranks.

The promotion of the officers, according to a statement today, November 23 by the Force spokesman, Frank Mba, comprises 56,779 Sergeants to Inspector, 17,569 Corporal to Sergeants and 8,431 Constables to Corporal

The statement said that the promotion is part of the on-going efforts at boosting the morale of personnel and repositioning the Force for greater efficiency.

It said that those who are being promoted include 86 junior officers negatively impacted by the ENDSARS riots, with 16 of them getting special posthumous promotion while 70 others injured during the violence arising from the ENDSARS protests were equally specially promoted.

The statement said that the IGP congratulated the officers and charged them to see their promotion as a mark of additional responsibility and a call to rededicate themselves to their professional calling.

He enjoined them to continue to carry out their duties diligently and in conformity with best practices and respect for the rights of the citizen even as he said that the promotion albeit, posthumously, of the officers who were killed by some ENDSARS protesters is a symbolic gesture in recognition of the ultimate price they paid in the service of the nation.

“The IGP promised to work with all relevant agencies, organs of Government and other stakeholders in driving a successful reform of the Police for improved welfare and conditions of service towards better service delivery to the people.”

Recession: Group Asks Atiku, PDP To Keep Mouths Shut

Editorial staff

November 23, 2020

A group, The Buhari Media Organisation (BMO) has faulted claims by the Peoples Democratic Party (PDP) and its former Presidential candidate, Atiku Abubakar that President Muhammadu Buhari is responsible for Nigeria’s slide into another recession.
In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, BMO also described Atiku’s prescription for a quick exit as a recipe for disaster.
“We are not totally surprised that the opposition party and its failed candidate decided to jump on the latest GDP figures to play to the gallery, but in doing so they ended up exposing themselves to ridicule.
“Only strange economists or fake ones would pretend not to know that Nigeria would not escape the Covid-induced global recession that has been ravaging some of the biggest economies in the world since the second quarter of the year.
“We wonder how someone whose son was infected with the Covid-19 and had to spend weeks in an isolation centre could be pretentious about the impact of the pandemic.
“So in blaming President Buhari for the 3.62%, Q3 drop in the country’s GDP after a 6.10% in Q2, PDP and Atiku should also hold Buhari responsible for the situation in South Africa, United Kingdom and the United States which recorded much deeper contraction than Nigeria.
“In fact, we dare say that the country outperformed many economies in the world and is already on the path of a technical exit from the recession with its 3.62% decline.
“And in case PDP and the former Vice President have been too consumed with petty politics to notice, President Buhari had, before the global lockdown, set the stage for a quick exit from the inevitable recession with a number of post-covid programmes targeted at putting cash in the hands of Nigerians.
“This is a man that stemmed the tide of four consecutive PDP-era GDP contractions between Q2 2014 and Q2 2015, and set the country on the path of growth with a more resilient and diversified economy from Q3 2015,” the group added.
On the suggestions made by Atiku Abubakar, BMO noted that he is not in a position to offer solutions.
“A 15% increase in taxes is not the product of a sound economic mind at a time when the economy needs to be energised through tax rebates. This is exactly what the Buhari administration has been doing for a category of business owners to enable them to invest more in productive ventures.
“In case he doesn’t know, the administration’s plan is anchored on the several complementary fiscal, real sector and monetary interventions that were proactively introduced by the government to forestall a far worse decline of the economy like that of South Africa with a-50% decline.
“So our message to Atiku Abubakar is that a government that did so well to make the economy Africa’s largest, will take the country out of recession swiftly and without recourse to his ill-thought-out suggestions.
“As for the issue of borrowing, which he likes bringing up, we find it strange that a former Vice President could descend to the level of lying that the Federal Government takes loans for salaries and white elephant projects.
“For the avoidance of doubt, the Buhari administration had since 2015 added $17bn to the public debt stock and Nigerians know that they are tied to infrastructure, as opposed to the inherited PDP-era debt of $54bn which fits Atiku’s description of frivolous expenditure that can’t be tracked.”
BMO also urged Nigerians to trust President Buhari’s ability to keep to his administration’s promise of taking the country out of recession in or before the first quarter of 2021.

Recession: 2021 Budget Needs To Be Reworked – Atiku Abubakar

Greenbarge Reporters

November 23, 2020

Former Nigeria Vice President, Alhaji Atiku Abubakar has suggested the repackaging of the 2021 national budget to address the negative effects of the worst recession that has seized the country.

According to him, in a statement he issued, the proposed 2021 budget which was presented to the National Assembly on Tuesday, October 8, 2020, is no longer tenable.

He said that Nigeria neither has the resources nor the need to implement such a luxury heavy budget.

“The nation is broke, but not broken. However, if we continue to spend lavishly, even when we do not earn commensurately, we would go from being a broke nation, to being a broken nation.”

Atiku Abubakar’s statement is reproduced here:

It is with a very heavy heart that I received the confirmation that for the second time in five years, Nigeria has entered into another recession. Heaviness of heart, because this could have been avoided had this administration taken heed to patriotic counsel given by myself and other well meaning Nigerians on cutting the cost of governance, saving for a rainy day, and avoiding profligate borrowing.

Yes, the COVID19 pandemic has exacerbated an already bad situation, however, we could have avoided this fate by a disciplined and prudent management of our economy.

Be that as it may, it serves no one’s purposes to quarrel after the fact. We must focus on solutions. Nigeria needs critical leadership to guide her back to the path of economic sustainability.

We cannot afford hand wringing and navel-gazing. We must act now, by taking necessary, and perhaps painful actions.

For a start, the proposed 2021 budget presented to the National Assembly on Tuesday, October 8, 2020, is no longer tenable. Nigeria neither has the resources, or the need to implement such a luxury heavy budget. The nation is broke, but not broken. However, if we continue to spend lavishly, even when we do not earn commensurately, we would go from being a broke nation, to being a broken nation.

As a matter of importance and urgency, every non essential line item in the proposed 2021 budget must be expunged. For the avoidance of doubt, this ought to include estacodes, non emergency travel, feeding, welfare packages, overseas training, new vehicle purchases, office upgrades, non salary allowances, etc.

Until our economic prospects improve, Nigeria ought to exclusively focus on making budgetary proposals for essential items, which include reasonable wages and salaries, infrastructural projects, and social services (citizenry’s health, and other human development investments).

Additionally, we have to stimulate the economy, by investing in human development, and increasing the purchasing power of the most vulnerable of our population. Only a well developed populace can generate enough economic activity for the nation to exit this recession.

We must invest in those most likely to be impacted by the effects of the recession, the poorest of the poor. As well as stimulating the economy, this also ensures that they do not slip further into extreme poverty.

For example, a stimulus package, in the form of monthly cash transfers of ₦5000 to be made to every bank account holder, verified by a Bank Verification Number, whose combined total deposit in the year 2019 was lower than the annual minimum wage.

Now, how will this be funded? By more profligate borrowing? No. I propose a luxury tax on goods and services that are exclusively accessible only to the super-wealthy. A tax on the ultra wealthy to protect the extremely poor.

A practical approach to this is to place a 15% tax on all Business and First Class tickets sold to and from Nigeria, on all luxury car imports and sales, on all private jets imports and service charges, on all jewellery imports and sales, on all designer products imported, produced or sold in Nigeria, and on all other luxury goods either manufactured, or imported into Nigeria, with the exception of goods made for export. The proceeds of this tax should be exclusively dedicated to a Poverty Eradication Fund, which must be managed in the same manner as the Tertiary Education Trust Fund, or the Ecological Fund.

I further propose that a 1% poverty alleviation tax should be legislated by the National Assembly on the profits of every International Oil Company operating in Nigeria, and international airlines doing business in Nigeria, which should also go towards the proposed Poverty Eradication Fund.

It is inhumane for us as a nation to increase the cost of goods and services that affect the poor, while keeping the cost of luxuries fairly stable. We must flip this, and flip it immediately.

And above all, Nigeria must stop borrowing for anything other than essential needs. Again, for the avoidance of doubt, borrowing to pay salaries, or to engage in White Elephant projects, is not an essential need. This is particularly important as we need cash at hand, because the world and our economic and development partners are also focused on helping their home economies overcome the effects of COVID19. We must be our own saviours.

The more we borrow, the more we will need cash to make interest and principal payments, and the less cash we will have to make necessary investments in our economy and our people. If we keep borrowing, we stand the risk of defaulting, and that will make recession a child’s play, because we will lose some of our sovereignty.

I urge the administration of President Muhammadu Buhari to swallow its pride, and accept its limitations, so that they can open their minds to ideas, without caring who the messenger is. For as Deng Xiaoping said “It doesn’t matter whether the cat is black or white, so long as it catches mice.”

Atiku Abubakar

Vice President of Nigeria, 1999-2007

22nd November, 2020

You Have Done So Much For Us, But Do More, Kogi Youths Plead With AA Oil Boss

Greenbarge Reporters

November 22, 2020

A group of youths under the umbrella of Ebira Youth Voice Association in Kogi Central Senatorial District has commended the Chief Executive Officer of AA Oil Nigeria Limited, Chief Alhaji Aliyu Abubakar for the positive roles he has been playing in youth development.

The youth group, in an open letter, however pleaded to Alhaji Aliyu Abubakar and other wealthy people in the area to gear more efforts in the same direction.

The open letter, signed by the President of the Association, M I. Hadi, asked the business mogul to come to their aid by means of providing job opportunities through establishment of cottage industries where the teeming youths and women can be gainfully employed.

“The entire youths of Ebiraland are calling for your support, and assistance to better their lives. We have a numerous graduates with a good class of degrees in both science and humanities, but lack support in terms of job prospect, hence the need for intervention from well meaning sons of the land to come to their rescue.

“In fact most of the youths in Ebiraland are jobless, and even those that venture into skill acquisitions lack the required capital and support they need to set up their businesses after the training.”

The youth group drew the attention of Alhaji Aliyu Abubakar to the issue of academic, which it said is a tool for development, suggesting to him to initiate a Foundation in his name, “thereby giving opportunities to the less priveledge in furtherance of their education through scholarships at all levels.”

The youths acknowledged that Alhaji Aliyu Abubakar, though not a poiltician, has helped much more than the politicians across Nigeria.

“The entire youths of Ebiraland wish to acknowledge your tireless efforts toward the development of the youths in the society.”

How Nigeria Can Quickly Pull Out Of ‘Worst” Economic Recession – Expert

Greenbarge Reporters

November 22, 2020

An economic expert, Professor Uche Uwaleke has offered possible quicker ways of pulling Nigeria out of the now famous worst economic recession.
Reacting to the report from the Nigeria Bureau of Statistics (NBS), which announced the return of the recession which the nation went through up to 2017, Professor Uche Uwaleke said that the first thing that should be done is the quick passage of the 2021 national budget by the national Assembly, saying that this will go a long way in supporting the quick recovery of the economy.

Professor Uwaleke agreed that the NBS Q3 real GDP number is a confirmation of the fact that economic contraction occasioned by COVID’19, Q2 2020 represents the worst experience for Nigeria.
According to him, when compared to a contraction of 6.10% in Q2 of this year: “it is actually an improvement reflective of the the ease in lockdowns and movement restrictions, the reduction in the cases of COVID’19 and the gradual return of investors confidence in the economy.”

Uwaleke, who is the first professor of capital market said: “this improved confidence has also manifested in PMI readings and stock market performance.
“This explains why, although still in the negative territory, sectors like Manufacturing, Trade, Transportation and Education recorded improvements over the Q2 numbers.”
According to him, the performance of the Agriculture sector in real terms which came in at 1.39% was disappointing.
“This corroborates the high food inflation rate now above 17% caused in large part by insecurity in many parts of the country.
“Yes, the economy has officially entered a recession but I see a quick V-shaped recovery as the effect of COVID’19 recedes and the impact of the interventions by the government and CBN begin to manifest including the implementation of the Economic Sustainability Plan.
“The early passage of the 2021 appropriation Bill will also go a long way in supporting economic recovery.”
According to the third quarter report released by the National Bureau of Statistics, NBS on Saturday, the Gross Domestic Product in real terms declined by -3.62% (year-on-year) in the third quarter of 2020.
The decline marks the beginning of a full-blown recession and second consecutive contraction from -6.10 per cent recorded in the previous quarter of this year.
According to the numbers contained in the report, oil GDP contracted by -13.89 per cent from -6.63 per cent in the second quarter of this year and 6.49 per cent in Q3 2019.
The country’s non-Oil GDP contracted -2.51 per cent from -6.05 per cent in Q2 2020 and 1.85 per cent in Q3 2019
Information & Communication under Services GDP grew 14.56 per cent compared to 16.52 per cent in Q2 2020 and 9.88 per cent in Q3 2019.
Services real GDP contracted by -5.49 per cent compared to -6.78 per cent in Q2 2020 and 1.87 per cent in Q3 2019.
Construction under Industry real GDP grew by -2.84 per cent compared to -31.77 per cent in Q2 2020 and 2.37 per cent in Q3 2019.
Industry real GDP contracted by -6.12 per cent compared to -12.05 per cent in Q2 2020 and 3.21 per cent in Q3 2019.
Telecoms real GDP grew by 17.36 per cent compared to 18.1 per cent in Q2 2020 and 11.3 per cent in Q3 2019.
Agricultural sector grew by 1.39 per cent compared to 1.58 per cent in Q2 2020 & 2.28 per cent in Q3 2019.

DSS Detains Its Operative For Alleged Killing Of Citizen Ifeanyi Okereke

Editorial staff

November 20, 2020

The Department of State Services (DSS) has confirmed the detention of security aide of the Speaker of the House of Representatives for allegedly shooting and killing of one Ifeanyi Okereke.

“As part of its disciplinary procedures in the instance, he (the officer) has been taken into detention.

“In addition, the Service has opened a detailed investigation into the matter.”

In a statement today, November 20, the Public Relations Officer of the DSS,

Peter Afunanya, confirmed that the suspect is one of its personnel deployed to the Speaker’s Convoy as a security detail.

“And as already stated by the Speaker that he has been suspended from his Convoy, the Service has further withdrawn him from the assignment.”

He pledged that the DSS would be transparent and accountable in handling the matter, adding that it is liaising with appropriate authorities to achieve this objective.

Lingering Strike By University Lecturers: Federal Govt Shifts Ground On IPPIS

Editorial staff

November 20, 2020

The Federal Government has shifted ground over the Integrated Payroll and Personnel Information System (IPPIS), which had led to a nation wide strike by members of the Academic Staff Union of Universities (ASUU) that had lingered for a long time now.

The minister of Labour and Employment, Chris Ngige who made this known today, November 20 when he met with the representatives of the Academic Staff Union of Universities (ASUU), said that the Ministry as well as the Ministry of Education would use the previous payment platform of the government before it introduced IPPIS to pay the withheld salaries of the Universities lecturers under strict monitoring.

Ngige said that representatives of the government and ASUU met over the University Transparency Account System (UTAS) proposed by the union, but that it is work in progress.

He said that the Federal Government has offered a cumulative sum of N65 billion to the Academic Staff Union of Universities (ASUU) to address earned academic allowances and revitalisation of universities.

The Minister said that the government has decided to shift grounds on the lingering issues that have kept students out of the classroom for several months.

Ngige said that in its bid to resolve the impasse with ASUU, the sum of N15 billion from the amount offered by the government would be for more funds to revitalise the universities.

He said that the fund was in addition to the N20 billion paid earlier, making it a total of N35 billion committed as revitalisation fund by the government.

The minister, who said the visitation panel to the universities would be inaugurated next week.

The ASUU president, who also addressed reporters, acknowledged that the government has made some new offers to the union and some progress have been made.

He, however, said that the union leaders would report to their organs and get back to the government on the position of their members

National Assembly Sets To Pass 2021 Budget In December 2020

Editorial staff

November 20, 2020

The National Assembly is working hard to pass the 2021 Appropriation Bill by the second week of December.

According to the Senate President, Ahmad Lawan: “we are working to pass the 2021 budget by the second week of December by the Grace of God,”

Senator Ahmad Lawan, at a retreat today, November 20 for top management staff of the National Assembly and National Assembly Service Commission, said: “we are working very assiduously, we will ensure that there is every possible scrutiny of the budget estimates presented to us by the Executive arm of government.

“So far, we achieved that in 2020 budget. We believe we did the right thing. We promised Nigerians that we will do that and it is going to be part of our legacy in the Ninth National Assembly,” Lawan said.

The Senate President also hinted that the National Assembly would ensure the passage of the Petroleum Industry Bill by the second quarter of 2021.

“The PIB which is one of the most essential legislations that we have to have in this country, we intend to pass it by the Grace of God before the end of the second quarter of next year.

“We will take our time because this is a very delicate and sensitive piece of legislation. We will take our time to ensure that what comes out of the National Assembly in the PIB is a product of legislation that will ensure that Nigeria earns its revenues from this industry as it should and of course also support our business people, the oil companies that are investing and infact retain and encourage new ones to come to Nigeria to invest.

“So it has to be a win-win for all of us. We will not be selfish as a country, trying to take everything. No.

“Oil is like water now. Almost every country now has oil. So if you don’t provide a competitive environment in Nigeria, oil companies will have no difficulty relocating to other countries. So we will ensure that we have a competitive environment for business and for investment”

The Senate President gave an assurance that the National Assembly would have been done with the current process of the constitutional ammendment by 2021 and also the Electoral Act (Ammendment Bill).

“The constitutional ammendment, of course at the moment, is not very warm because of the activities of members of the National Assembly on the 2021 budget but the two committees in the Senate and the House are already working behind the scene to ensure that as soon as we pass the budget, the constitional ammendment activities will start in earnest.

“We believe that we should pass our ammendments within 2021. Similarly the ammendment to the Electoral Act is going to be within that year 2021 to ensure that we don’t encounter unnecessary distractions.”

PDP Wanted Me To Be Insulting Buhari, It’s Not In My Character – Ebonyi Gov, Umahi

Editorial staff

November 20, 2020

Governor David Umahi of Ebonyi State has revealed that the Peoples Democratic Party (PDP), which he just dumped, wanted him to be insulting and castigating President Muhammadu Buhari

He said: “another one is that the PDP wants me to be castigating Mr. President. I have no other boss apart from Mr. President. And by my culture and upbringing, you do not insult the elders. It’s not in my character.”

In apparent response to Rivers State Governor, Nyesom Wike, who said that the Peoples Democratic Party, PDP, made him (Umahi) what he is today, Ebonyi Governor, who crossed over to the ruling All Progressives Congress (APC),

“And some of them [PDP Governors] speak rubbish in the day and in the night they’re caps in hands and they start going up and down. I don’t do like that. So Mr. President remains my boss, father and boss and I’ve no regret about that.”

“People say PDP made me what I am. That is absolutely rubbish. We made PDP what PDP is,” he said.

“It is the people that make the party and I’ve contributed so much in the making of PDP not the other way around. I’ve been a peacemaker.

“I’ve been a negotiator and even the Governor of Edo State coming on board was my prophecy which my fellow Governor directed the working committee to come and probe me but that was a big minus for them because you don’t probe a sitting Governor.

Governor Umahi, who answered questions on Arise TV programme today, November 20, 2020, said that some Governors of the opposition party who speak against the Buhari government during the day, used to “go up and down at night begging” the same Buhari.

Governor Wike had in one of his recent interviews said: “Umahi has the right to move to the APC, it’s his constitutional right, but we cannot in all cases allow Umahi blackmail PDP that made him chairman of the party, deputy governor, and governor and then you now realize there is an injustice against southeast.”

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