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Tag: Federal Government

  • FG sets to enhance rail sector for improved services -Alkali

    The Federal Government has underscored its commitment to overhauling the rail transportation sector to ensure superior service delivery, aligning with President Bola Tinubu’s vision of creating a secure, accessible, and affordable railway network accessible to all Nigerians.

    During an unannounced visit to the Idu Train Station in Abuja, Senator Sai’du Alkali, the Minister of Transportation, affirmed this dedication. Alkali outlined strategic steps to rejuvenate the railway system, including bolstering cooperation with the Military high command to enhance security measures along all railway routes.

    Addressing concerns about the subpar condition of train coaches, amenities, lifts, and escalators, the Minister assured that comprehensive repairs would be expedited, ensuring they become operational promptly.

    Furthermore, the Minister extended commendation to security personnel for their role in maintaining safety. He assured the personnel that any outstanding allowances would be settled without delay, and going forward, remuneration would be provided punctually.

    Alkali reiterated that rail transportation remains the optimal means of travel, encouraging Nigerians to continue embracing it. He emphasized ongoing endeavors to align rail services with international standards and best practices.

  • Katsina govt confirms receipt of N2bn palliative from FG

    The Katsina State Government has confirmed the receipt of N2 billion out of the N5 billion palliative approved to the states by the Federal Government.

    Dr Bala Salisu-Zango, the state’s Commissioner for Information, Culture and Home Affairs made the clarification while reacting to insinuation that the federal government released N5 billion to the state.

    He said that: “The attention of the state government has been drawn to news going round in the media that N5 billion has been released to states by the Federal Government for palliative.

    “I wish to state that, Katsina State Government received only N2 billion for procurement of grain to be distributed to the citizens of the state”.

    Salisu-Zango said the state government had so far utilised N2 billion to procure 40,000 bags of rice for distribution to vulnerable persons in all the polling units across the state.

    He said the government would also utilise the next tranche of the fund from the federal government to purchase maize for distribution to deserving households.

    He warned that the state government would punish anyone found wanting in the palliative distribution exercise. 

  • FG to redesign Lokoja-Ganaja-Ajaokuta Road

    The Minister of Works, David Umahi has vowed to redesign the Lokoja-Ganaja-Ajaokuta Road in Kogi State.

    Umahi, who spoke during a courtesy call on the Kogi State Governor, Yahaya Bello at the Government House, Lokoja on Tuesday night, also revealed plans for long-lasting, low-maintenance concrete roads and assured of swift progress on all federal road projects in the state.

    The minister had earlier on Tuesday inspected a bridge reconstruction at Gada-biu, the Abaji section of Abuja-Lokoja road, Koto-Karfe bridge, Murtala bridge, Lokoja-Ganaja-Ajaokuta Road, Lokoja-Okene Road, and Lokoja-Kabba Road.

    He disclosed that the federal government was considering concrete road construction innovation which he said it has low-maintenance cost and can last for over 50 years without maintenance.

    The minister also disclosed that concrete roads are cheaper in terms of construction cost and the guarantee of construction materials. 

    He, however, commended Governor Yahaya Bello’s commitment to the people of Kogi State and his administration’s accomplishments across education, healthcare, and infrastructure.

    The Minister expressed gratitude for the governor’s warm reception upon his appointment as Minister of Works and for his dedication to the betterment of Kogi State.

    In a remark, the Kogi State Governor, Alhaji Yahaya Bello, expressed deep appreciation for the minister’s proactive approach in inspecting deteriorating federal roads within the state, which according to him, demonstrated a significant dedication to resolving pressing infrastructure issues.

    Bello also expressed optimism regarding the Federal Government’s commitment to enhancing the country’s road infrastructure, and commended Umahi for his visit to the state.

    The governor highlighted the concern surrounding the condition of federal roads in Kogi State, emphasizing its strategic position as the connecting point between Northern and Southern Nigeria.

    He acknowledged the hardships faced by commuters, the negative impact on trade and the economy, and the strain on transportation systems. 

  • FG raises N4.46trn bonds in 8 months

    FG raises N4.46trn bonds in 8 months

    The Federal Government raised the sum of N4.46 trillion from the bond market in the last eight months.

    The result is that the interest rate on 30-year FGN bonds increased to 15.85 per cent in August 2023 from 14.3 percent in July 2023.

    The Debt Management Office (DMO) received N5.42 trillion total subscriptions as against N2.88 trillion offered during the period amid monetary policy tightening by the Central Bank of Nigeria (CBN) and global uncertainties.

    An analysis of the bond market activity during the period revealed that FGN bonds recorded 53 percent oversubscription as interest rates continued on a steady trajectory.

    The DMO has conducted four auctions in 2023, which were oversubscribed despite a hike in inflation rate and investors’ diversification into the stock market.

    While the information on the buyers of corporate bonds are publicly disclosed, other publicly available reports indicate Pension Fund Administrators (PFA), asset managers, banks, and institutional/foreign investors are among the largest buyers of FGN Bonds.

    The auction results released by DMO indicate strong investors’ demand for FGN bonds, as the total amount allotted exceeded the total amount offered. It also suggests investor confidence in the Nigerian economy and the ability of the government to meet its debt obligations.

    A breakdown showed that in the first quarter (of 2023, total subscription to FGN bonds stood at N2.61trillion while the DMO allotted N1.996 trillion out of the N1.080 trillion offered to the investing public.

    In the second quarter of 2023, investors were also offered N1.080 trillion FGN bonds; it witnessed N2.503 trillion subscriptions. The DMO eventually allotted N2.23trillion.

    However, a July 2023 auction revealed that subscriptions stood at N945.14billion as against the N360 billion offered. The DMO allotted N657.84 billion.

    At the just concluded FGN bond auction in August, the four instruments were 14.55 per cent April 2029 FGN bond; 14.70 per cent June 2033 FGN bond; 15.45 per cent June 2038 FGN bond; and 15.70 per cent June 2053 FGN bond. They were valued at N90 billion each, making a total offer of N360 billion.

    In spite of current market conditions, the auction received a total subscription of N312.56 billion and amount allotted to successful bidders for the four instruments was N230.26 billion.

    Investors’ appetite for the 15.70 June 2053 (30-year bond) remained strong, with a bid-to-cover ratio of 2.71 times.

    Allotments were made at 13.85 per cent for the 14.55 per cent April 2029 instrument and 15.00 per cent for the 14.70 per cent June 2033 instrument.

    Also, “15.20 per cent was for the 15.45 per cent June 2038 instrument and 15.85 per cent for the 15.70 per cent June 2053 instrument,” the DMO said.

    The federal government had proposed to borrow over N11 trillion to finance the proposed 2023 budget deficit.

    Findings by Economic Confidential revealed that FGN Bonds auctioned were re-openings with rates below the inflation rate.

    The debt office in 2023 maintained four tenor bond auctions between January and June and each FGN bond offer was oversubscribed.

    Meanwhile, finance experts have attributed the strong demand for FGN bonds to attractive yields, which offer investors high returns on their investments.

    They added that the oversubscription also revealed that investors have confidence in the government’s ability to meet its debt obligations.

    The appetite for FGN bonds indicates that PFAs, and Nigerian investors prefer investment instruments with less volatility that assures them of their capital returns albeit with low yield on investment.

    But, in recent years, Nigeria’s rising debt profile has been a topic of concern, as Vice President, Highcap Securities Limited, Mr. David Adnori warned that the country’s debt levels are unsustainable.

    DMO stated in January that Nigeria’s public debt could rise to N77 trillion if the country’s “ways and means” are securitized.

    “Ways and means” refer to the CBN’s lending to the federal government. The DMO said that the securitization of ways and means” is not unusual and is a common practice in many countries, but it is not a decision that can be made by the DMO alone.

    Adnori expressed concerns that Nigeria’s rising debt levels could become unsustainable if not managed properly.

    The government has argued that borrowing is necessary to finance critical infrastructure projects and stimulate economic growth.

    The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the FG had notified the general public of borrowing more in 2023.

    According to him, “With all the volatility and foreign exchange issues, it makes sense to borrow at the domestic market rather than borrowing from the international market. It is all a reflection of our macro economy environment challenges and weak fiscal policy of the government. All this borrowing also is a reflection of the weak financial position of the government and it will continue like that.”

    He noted that the oversubscription to FGN bond is a lucrative investment, stressing that the low risk involved attracted investors.

    He added, “Anything sovereign has the lowest risk and nothing will go wrong with it except the country is collapsing completely. All over the world, sovereign bonds have the lowest risk and secondly it is an investment outlet for investors to invest their money.”

    On his part, the Chief operating officer of InvestData Consulting Limited, Mr. Ambrose Omordion, said, “We know that previous government borrowing was high. Excessive borrowing by the previous government at the expense of the private sector, which is the engine room of the economy, brings to question the soundness of their economic strategy.

    “The careless use of debt as a financing tool is fraught with calamitous dangers. Even more disheartening is when the debts are principally used to finance consumption or to unwisely finance a few secondary infrastructures (Roads and Rail).

    “These will neither enhance the productive momentum of Nigeria’s light industries nor make the economy self-reliant. The disorderly growth of the economy the last administration pursued can only mislead the country into an abyss if public borrowing is not curtailed to lower cost of funds so that production will be competitive.”

  • Ban single-use plastics, experts urge FG  

    Environment stakeholders have called on the Federal Government to ban the production of single-use plastics in the country.

    According to them, a total ban on the production will help mitigate the effect of climate change.

    Single-use Plastic Products (SUPs) are used once, or for a short period of time, before being thrown away. Analysts have said that they are more likely to end up in the ocean than reusable options.

    In a webinar organized by Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) on Wednesday in Abuja, the Director, Global Climate Programme Global Alliance for Incinerator Alternatives (GAIA), Ms Mariel Vilella, said plastic production and pollution resulted in greenhouse gas emissions at each stage of its lifecycle.

    Vilella said there is a need for effective waste management policies in Africa, which would promote zero and reduced plastic waste, saying that it contributed 20 per cent of anthropogenic methane.

    This, she said, made it an extremely dangerous greenhouse gas and a super pollutant.

    “Seventy per cent of global greenhouse gas emissions come from product life cycles – the stuff we extract, transport, and use and how we waste it,” she said.

    In his opening remark, Dr Chima Williams, Director of the ERA/FoEN said a lot of policies that would outlaw single use plastics were needed in the global south.

    The call for ban, he said, was necessary due to the problems associated with the use of the product such as flooding that always lead to perennial loss of lives and properties in the developing countries.

    Also speaking, the Executive Director, Sustainable Research and Action for Environmental Development (SRADev) Nigeria, Mr Leslie Adogame advocated policies that would fill the gap between waste management vis-a-vis plastic waste management in the country.

    He suggested cross-fertilisation of ideas across Africa on how to leverage on zero waste to address the climate crisis.

  • FG seeks withdrawal of firearms case against Emefiele

    * Introduces new charges against former CBN Gov

    The Federal Government has initiated steps to withdraw the case of “illegal possession of firearms” it had previously filed against Godwin Emefiele, the suspended Governor of the Central Bank of Nigeria (CBN), at the Federal High Court in Lagos.

    The Director of Public Prosecutions (DPP) at the Federal Ministry of Justice, Mohammed Abubakar, made an oral application before Justice Nicholas Oweibo, explaining that the decision was based on the outcome of further investigations.

    However, Joseph Daudu, a Senior Advocate of Nigeria and legal representative for Emefiele, opposed the application.

    He argued that the government should rectify its disregard for the court’s order granting Emefiele bail before proceeding with its application.

    Justice Oweibo has scheduled a hearing for Thursday, August 17, 2023, to make a ruling on the matter.

    After the proceedings, the DPP revealed that a fresh set of charges, totaling 20 counts, has been filed against the suspended CBN governor at the Federal Capital Territory (FCT) High Court.

    Among the charges is an accusation of “conferring unlawful advantages” against Emefiele.

  • NGX urges FG to create enabling policies to attract listings

    The Nigerian Exchange Limited (NGX) has said that it is working with the Central Securities Clearing System (CSCS) Plc and Euroclear to create a dollar settlement platform that will enable tech startups to rise in dollars.


    The Exchange said that this would create opportunities for domestic investors to have access to their shares and at the same time, contribute to the growth of the Nigerian economy through democratization of capital formation.


    Speaking during the Annual A&O Fintech webinar themed; Fueling Fintech: The Power of Capital, the Role of Regulation, the Divisional Head, Capital Markets, NGX, Jude Chiemeka, said although public markets are viable options for raising capital, fintechs have preferably opted for private markets because of the regulatory rule of disclosure and stricter governance requirements that is necessary for listing publicly.

    He explained that to address this issue, NGX received approval from the Securities and Exchange Commission (SEC) to launch a technology board for fintechs and tech companies to raise capital. 

    Chiemeka stressed that the tech board is geared at encouraging tech firms to come to the market and raise capital in local currency, which would prove beneficial amid the high interest rate environment that had made foreign investors hawkish.


    While stating that the issue of settlements may discourage fintechs from accessing capital in US dollars on the public market, Chiemeka revealed that the Exchange was working on a partnership that is directed at fixing that problem.

    He said, “NGX is working with CSCS and Euroclear to create a dollar settlement platform that allows tech companies (start-ups or existing ones) to raise capital in dollars. We have reviewed listing procedures for tech companies who want to list. Requirements around the number of shareholders, years of operation among others have been relaxed to catalyse these listings.”


    Owing to the high-interestb rate environment, Chiemeka said that domestic investors had been allocating their Assets under Management (AuM) to majorly FGN bonds.

    He further revealed that there had been more outflows than inflows from FPIs and that had impacted the performance of equities in recent times, especially as regards volume and value of transactions. He called on the present administration to eke out deliberate and enabling policies to drive listings on the exchange’s platform.

  • Subsidy Removal: FG initiates contempt suit against NLC, TUC amid protests

    Subsidy Removal: FG initiates contempt suit against NLC, TUC amid protests

    The Federal Government has taken legal action against the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) for allegedly defying a court order that prohibits the unions from engaging in industrial action. This “notice of consequences of disobedience to order of court,” also known as “Form 48,” was filed in the National Industrial Court in Abuja on Wednesday.

    The notice warns the NLC and TUC that failure to comply with the court’s directions, as delivered by Honourable Justice Y. Anuwe on June 5, 2023, will result in contempt of court charges and possible imprisonment.

    In response to the perceived “anti-people” policies of the President Bola Tinubu administration, the Organised Labour initiated protests in the Federal Capital Territory (FCT), Abuja, as well as in various states, including Lagos, Benue, Abia, Plateau, Kaduna, Kano, Rivers, Zamfara, Katsina, Cross River, Ebonyi, Enugu, Kwara, Ogun, Imo, Ondo, and Edo.

    Key figures from the NLC and TUC, accompanied by numerous members, led the protest in the Federal Capital Territory, commencing from the Unity Fountain. Additionally, affiliated unions, such as the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), the National Union of Electricity Employees of Nigeria (NUEE), the National Union of Road Transport Workers (NURTW), and the Academic Staff Union of Universities (ASUU), participated in the nationwide demonstration.

  • Don’t disrupt economy, OPSN urges FG, labour unions

    Don’t disrupt economy, OPSN urges FG, labour unions

    The Organised Private Sector of Nigeria (OPSN) has called on the Federal Government and labour unions to work assiduously to avert disruption of socio-economic activities.

    Mr Segun Ajayi-Kadir, Head, Secretariat, OPSN, gave the advice in a statement in Lagos.

    The OPSN comprises five business membership organisations, namely: the Manufacturers Association of Nigeria, and the Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture.

    Others are the Nigeria Employers Consultative Association; the Nigerian Association of Small and Medium Enterprises and the Nigerian Association of Small-Scale Industrialists.

    Ajayi-Kadir noted that the OPSN had followed keenly, the developments following the recent call by the Nigeria Labour Congress and the Trade Union Congress of Nigeria for a nationwide peaceful protest.

    The protest is scheduled for August 2, 2023, as consultations between the Federal Government and labour unions have not yielded positive results.

    He urged the government to employ its best endeavours to reengage the leadership of the unions and find an amicable ground to avert the imminent disruption in business activities.

    “We opine that adequate consideration should be given to the dire state of the economy and the possible unintended social unrest that may result from the protests.

    “We call on our members to be circumspective in their business operations, as we await the outcome of ongoing consultations between government and unions,” he said.

  • NLC kicks off nationwide strike; says no overture from FG

    The Nigeria Labour Congress (NLC) on Wednesday began its nationwide strike, with its President Comrade Joe Ajaero saying that there has been no advances or promises from the Federal Government for them not to proceed with the industrial action.
    NLC President, Comrade Joe Ajaero, who spoke on ChannelsTV which was monitored by NIGERIAN ANCHOR, said the protests have begun in earnest, but however regretted the Federal Government’s nonchalance in not making any overtures to stop it.
    “As you can see, the nationwide protest has started and we are moving on. There has been no overture or promise from the Federal Government concerning this planned protest which means we are going ahead with it” Ajaero said.

    The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) had faced a tough decision on whether to proceed with their planned nationwide protest or cancel it, with the Federal Government making efforts to thwart the protest.

    Chief of Staff to the President, Bola Tinubu’s representative, Femi Gbajabiamila, had on Tuesday urged the labour unions to call off the proposed strike, citing palliative measures announced by the President on Monday night as reasons to shelve the protest.

    He said, “We have laid out the plans, the interventions of Mr. President, as you all heard in his broadcast yesterday, we made it clear that this was just Mr. President’s initial rollout and interventions and that conversations will be ongoing as we go along.

    “And we appealed to Labour, we did appeal to labour to call off the protests for tomorrow. We found listening ears here and they did agree that they all accepted that Mr. President’s broadcast was a welcome development and that they will go back home to talk to the other leaders that are not present today. So we’re hopeful that they will do the right thing and call off the strike tomorrow.”

    Adding to the complexity, a Coalition of Civil Society Organisations/Labour Centre has cautioned the NLC and TUC against proceeding with the strike.

    They expressed concerns about the potential consequences on the nation, fearing that the protest could be hijacked by disgruntled Nigerians benefiting from fuel subsidies, leading to loss of lives and property.

    This cautionary message was conveyed in a communique issued after a meeting at Lagos Airport Hotel, Ikeja, attended by representatives of various civil society groups.

    It was attended by Razak Olokoba of Campaign for Dignity in Governance (CDG), Nelson Ekujumi (Centre for Social and Economic Rights), Titi Akosa (Centre for 21st Century Issues), Linus Okoroji (Humanity Services Project), Raji Rasheed Oyewunmi (Yoruba Citizen Action for Change), Gbenga Soloki (Campaign Against Impunity and Domestic Violence), Razaq Oladosu (Grassroots Democratic Initiatives), Ramat Abdulrazak (Women Grassroot Network), among others.

     It awaits to be seen how the strike action will pan out after its first day (today).