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ActionAid says Nigeria’s economy could face major fiscal crisis

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ActionAid says Nigeria’s economy could face major fiscal crisis

ActionAid says Nigeria’s economy could face major fiscal crisis

ActionAid has raised an alarm that Nigeria’s economy could face a major fiscal crisis with increasing financing of the fiscal deficit with borrowings.

A press statement issued by the non-governmental organisation on Tuesday after a virtual meeting to review the State of the Nation by its General Assembly Members lamented that the public fiscal deficit, financed mostly by domestic and foreign borrowings, widened with high debt service payments, estimated at more than half of federally collected revenues, pose a major fiscal risk to Nigeria’s economy.

Other observations coming from the meeting are that Nigeria is currently faced with an unprecedented wave of different but overlapping security crises – from kidnapping to extremist insurgencies, lamenting that almost every corner of the country has been hit by violence and crime with the growing insecurity being closely linked to the high rate of poverty in the country.

Also Read: Northern governors convene in Kaduna, Discusses Security…

Attendees of the meeting also described as unhealthy the ongoing strike of medical doctors across the country being the fourth time since the outbreak of the COVID-19 pandemic, with some of them complaining they are owed salaries for several months. They lamented that many Nigerian media outlets are reporting that patients – some with COVID-19 symptoms – are being turned away at short-staffed hospitals.

They however said the ongoing Review of the 1999 Constitution offers the opportunity for Nigerians to shape the constitution with the goal that it reflects the desires and aspirations of the citizens, stressing that some of the provisions to be considered vital for the uplifting of the status of citizens include Socio-Economic and Cultural Rights as contained in Chapter 2 of The constitution, issues of Gender Equality and a thorough reform of the Nigeria Police.

They observed that the Twitter ban by the Federal Government has had severe economic costs, stating that it is a step backwards for civic engagements and threatens the civic space which has continued to shrink in recent years.

They however recommended that the rising public debt, unemployment, inflation, and high cost of living require the immediate embracing of fiscal federalism in absolute terms, noting that this will enable the country to break the vicious cycle of poverty, eliminate the wholesale dependence on oil which makes Nigeria a monolithic economy.

They also advised that the cracking of the nation’s current security challenges requires increasing the manpower and welfare of all security agencies and equipping them with modern combat equipment, skills, and training, urging the government renew its partnership with neighboring countries to enhance intelligence exchange and information sharing that would help in quelling the insurgency and other sundry crimes, while calling for the state-of-the-art combat Tucano and Alpha jets newly acquired to be deployed immediately to help in further neutralizing the criminal elements with precision and bring the protracted insurgency to an end. 

They urged the federal and state governments to explore different models to improve the work environment for medical practitioners, adding that health insurance must be made mandatory with sound mechanisms to prevent corruption for universal health care coverage. 

On the constitution review, they asked that the non-justiciability of the provisions of chapter 2 of the 1999 constitution should be reviewed and amended by removing the non-justiciable character and make them enforceable in line with international treaties which have been domesticated in Nigeria.

ActionAid says Nigeria’s economy could face major fiscal crisis

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Crime

Six terrorists killed as army troops raid terrorists enclaves

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Six terrorists killed as army troops raid terrorists enclaves

By: Zagazola Makama

Troops of the Operation Hadin Kai of the Nigerian Army have killed six fighters of the Islamic State of West African Province (ISWAP) during a raid of a “notorious enclave” in Goniri in Damboa LGA in Borno.

It was gathered that the feat was recorded when the troops of 81 Division Task Force Battalion stormed the terrorists enclave in collaboration with Civilian Joint Task Force on May 9, 2024.

Intelligence sources told Zagazola Makama that the The troops successfully cleared Wulma Mashi and Kodow and destroyed structures of the terrorists. The troops went further to clear Goniri and Kokotuma. Contact was made with the terrorists in a small market before Gorere market.

The troops gundown the six terrorists and destroyed all the structures in the area.

Six terrorists killed as army troops raid terrorists enclaves

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FG Declares Wednesday Holiday to Mark Worker’s Day

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FG Declares Wednesday Holiday to Mark Worker’s Day

By: Michael Mike

The Federal Government has declared Wednesday, 1st May, 2024 as a Public Holiday to commemorate this year’s Workers’ Day Celebration.

The Minister of Interior, Hon. Olubunmi Tunji-Ojo, who made the declaration on behalf of the Federal Government, reiterated the need for excellence, efficiency and equity in all spheres of labour, re-affirming President Bola Tinubu’s administration’s commitment to fostering a culture of innovation, productivity, and inclusivity in the workplace.

Tunji-Ojo, in a statement signed by the Permanent Secretary in the Ministry of Interior, Dr. Aishetu Gogo Ndayako, said: “In alignment with this year’s theme, which focuses on ensuring safety and health at work in a changing climate, I wish to state that the Federal Government remains steadfast in its resolve to prioritise the safety and well-being of all citizens. Let me reaffirm Mr. President’s commitment to providing a conducive environment for work, where every worker can thrive and contribute meaningfully to national development”.

The Minister, while acknowledging the contribution of workers, called for proactive measures to mitigate adverse effects of climate change through synergy in in the implementation of sustainable practices and policies that promote well-being in the workplace and in building a nation guided by the principles of integrity, diligence and compassion.

Tunji-Ojo also urged Nigerians to remain committed to the present administration’s Renewed Hope Agenda as he wishes workers a happy celebration.

FG Declares Wednesday Holiday to Mark Worker’s Day

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Our Youths Will Transition Nigeria Into Digital Economy Powerhouse – President Tinubu

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Our Youths Will Transition Nigeria Into Digital Economy Powerhouse – President Tinubu

  • As African countries commit to greater financing, digital access at IDA21 Summit:
  • Resolve to mobilise domestic resources for Africa’s economic transformation

By: Our Reporter

President Bola Ahmed Tinubu declared on Monday that Nigeria is set to harness the potential of its youthful population to transform into a global digital economy powerhouse.

He also hinted at the nation’s plans to become a global hub for outsourcing talent within the digital and creative economy.

This was the submission made by President Tinubu who was represented by Vice President Kashim Shettima at the meeting of African Heads of State and Government on the 21st Replenishment of the International Development Association (IDA21) in Nairobi.

This is just as African Heads of State and Government committed countries on the continent to strengthen implementation capacities, mobilising domestic resources, and partnering effectively with IDA to accelerate the continent’s economic transformation.

President Tinubu also reiterated Nigeria’s plans to build a vast digital market capable of absorbing cutting-edge innovations and technologies, positioning the country as a hub for outsourcing talent in the digital and creative economy spheres.

“Being a young country with a median age of about 18, our interventions in the digital economy have been so extensive that we are no longer boasting of having the most unicorns, but preparing to serve as a global hub for outsourcing talents,” the President stated in his submission titled “The Path to Recovery: Nigeria’s Journey Beyond Sabotage”, which was delivered to the Summit by VP Shettima

President Tinubu informed other African leaders of the sweeping reforms implemented by his administration to curb illicit activities and currency manipulation that had long hindered the nation’s progress.

“Since assuming office, President Tinubu has remained steadfast in fulfilling his promise to end the reign of economic saboteurs who have long exploited and hindered the progress of our nation. I am pleased to report that our economy has escaped the phase of sabotage,” the VP noted.

Alongside the digital transformation agenda, President Tinubu said Nigeria is committed to prioritizing climate resilience and becoming an attractive destination for carbon market investments.

“The tensions resulting from climate-induced disruptions serve as a pressing call to action. The profound impact of climate change on our continent’s security underscores our dedication to transforming innovative concepts from conference discussions into tangible actions. We aim to become an investment-friendly destination for carbon market investments,” the organ was informed.

He expressed Nigeria’s belief that the summit’s communiqué would reflect the collective needs of African and IDA countries, capturing their “nuances, consensus, dreams, and projections.”

President Tinubu listed key priorities for Nigeria’s economic recovery in his administration’s Renewed Hope Agenda, anchored on poverty alleviation, to include economic expansion, job creation, enhanced access to capital, food security, and inclusivity.

He also stressed the importance of regional economic integration through instruments like the African Continental Free Trade Area (AfCFTA) Agreement to dismantle investment barriers and facilitate access to international markets.

“Our path to the future depends on nurturing strategic partnerships with other nations and development organizations. Therefore, we will utilize our absolute and comparative advantages to establish partnerships across borders,” the President said.

Earlier in his opening remarks, the President of Kenya, William Ruto, said the summit was urgent because it was “convened at a critical juncture facing a convergence of global crises which include escalating geopolitical tensions that challenge international unity, a deepening development and debt crisis that threatens our economic stability, and an urgent climate emergency that demands immediate and collective action for our planet’s survival.”

He gave instances of the devastating impact of severe flooding in the East African region which, according to him, has displaced thousands in Nairobi alone, and the vulnerability of the continent to extreme weather patterns, which points to the critical role of the IDA in financing Africa’s development and stability.

“This new normal demands our immediate and united action to safeguard our collective future. This underscores the critical role of IDA for Africa Summit as a cornerstone for financing for Africa. IDA has directed 75% of its total commitment which is nearly $26 billion to Africa in the last fiscal year with African countries comprising 8 of IDA’s top 10 borrowers. This support is not just financial but it’s a lifeline for development and stability,” President Ruto said.

Also speaking, the World Bank President, Ajay Banga, expressed optimism about Africa’s potential, saying “it’s very easy to feel hopeful when we’re together anywhere in Africa,” adding that you feel the infectious energy of young people.”

Banga affirmed the IDA’s commitment to accelerating progress on the continent, vowing to “move with urgency and purpose,” while making the institution more efficient and impactful.

“We stand at the crossroads of a new era of growth and prosperity for Africa,” he said.

At the end of the Summit, African Heads of State and Government adopted a joint communique committing countries on the continent to accelerate the continent’s economic transformation by strengthening implementation capacities, mobilising domestic resources, and partnering effectively with IDA.

They also called for an ambitious replenishment of the International Development Association (IDA) to support the continent’s development goals.

The Nairobi Communique described IDA as Africa’s largest source of concessional financing, outlining priorities for IDA21 to include building human capital, creating jobs, boosting energy and digital access, enhancing resilience to climate change and fragility, and promoting inclusive growth policies.

Our Youths Will Transition Nigeria Into Digital Economy Powerhouse – President Tinubu

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