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As 2018 Winds UP: Nigerians Mourn Economy Under Buhari …Say 2019 Still Uncertain
Despite the rise in the Manufacturing Purchasing Managers’ Index (PMI) at 61.1 index points for December 2018, as against 57.9 index points recorded in November, analysts say at the weekend that the outgoing year will not be forgotten in a hurry due to other negative indicators like high unemployment, dearth of credit by banks to critical sectors of the economy and high inflation in the midst of low purchasing power.
Bismarck Rewane, Chief Executive, Financial Derivatives Company’s December Lagos Business School’s publication sees 2019 as a year of “Trepidation and Growing Uncertainties,” adding that “The Nigerian economy may succumb to pressures of an oil price (down by 40%) to $53pb range and a cut in production to 1.67mbpd. The lower oil revenue and a growing deficit will erode the fiscal consolidation policies of the government.
With banking industry fragility and a naira under speculative pressure, 2019 will be a year of technological and investment opportunities but serious political and policy challenges.
The amicable settlement between Nigeria and MTN after an avoidable saga is a good way to end an eruptive year. A listing of MTN is the much needed booster shot the Nigerian stock market badly needs.”
According to the foremost economist, Nigeria’s 2019 election is being greeted with the classical reaction of an economic indifference curve, which is a combination of choices between commodity A and B which gives a consumer the same level of satisfaction or dissatisfaction.
‘Talking to a cross section of young people between the ages of 20 and 30, most respondents were unenthusiastic, indifferent and apathetic. Some considered it an Hobson’s choice. Based on this, we are anticipating voter apathy and a low turnout in the February election,’ he said.
Lagos Chamber of Commerce and Industry, Muda Yusuf, Director-General would like “foreign exchange management framework that reflects the market fundamentals, the acceleration of the economic diversification agenda, normalization of Lagos ports environment, the oil and gas sector reform, especially the petroleum industry bill; better debt management strategy to ease the burden of debt service, reduction in the cost of governance at all levels; improvements in the domestic revenue (particularly independent revenue) to reduce volatilities in government revenues,” in the new year.
President of the Nigerian Employers’ Consultative Association (NECA), Dr Mohammed Yinusa says the implementation of Nigeria’s 2018 budget, benchmarked at $60 per barrel could also suffer should the slump persist in the oil price at the international market persists.
Consequently, Yinusa says, “Nigeria’s economy which is currently stabilising on boost in crude oil price, could be adversely affected as crisis in foreign exchange, primarily sourced from the oil sector was projected to worsen.”
Yusuf believes that the non-passage of the Electoral Act and Petroleum Industry Bill (PIB), are considered as sore points for the economy and polity, adding, the “downstream sector as currently constituted is unstructured and largely uncompetitive.”
In the last quarter of this year, the globa oil industry witnessed steady decline in prices of crude oil prompting several oil producing countries especially OPEC to consider production cuts.
In fact, OPEC, Russia and other producers have agreed to remove 1.2 million barrels per day from the market beginning in January. Consequently, some observers also said price volatility in 2019 may be inevitable considering the conflicting priorities of the three top world producers, namely the US, Saudi Arabia and Russia.
The move follows a more than 30 percent drop in oil prices that saw international benchmark, the Brent crude, fall from more than $86 a barrel to a 13-month low of $57.50 last month.
Apart from the downward movement in the international prices of crude oil in the outgoing year,2018 witnessed a mixed feeling among the stakeholders in the country’s oil and gas industry.
Muda Yusuf said data from the Organisation of Petroleum Exporting Countries (OPEC) shows that oil prices are trending down at $54 p/bl on 22nd December 2018 from its peak of $88p/bl in the month of September and October 2018.
He said this is already below 2019-2021 Medium-Term Expenditure Framework (MTEF) and 2019 budget benchmark of $60p/bl. The declining global oil price will likely distort FG’s economic projections for 2019 as well as impact adversely on its MTEF if the trend is not reversed.
Consequently, Yususf said in 2018, the oil and gas industry was characterized by weak incentive regime to facilitate the penetration of the use of cooking gas in the country as well as high cost of the LG equipment as result of high import tariff. He also said the industry was characterized by the discriminatory VAT imposed on the locally sourced LPG, while imported LPG does not attract VAT.
“Petroleum subsidy debts and non-payment of interest rate and exchange rate differentials to oil marketers is affecting the ability of the oil marketers to meet up with their financial obligations with the banks. This is also having a multiplier effect on the revenue of the banks/lenders. It also has implications for the stability of the banking system and the growth of non-performing loans in the financial system,” he added.
A banker and chieftain of the Peoples Democratic Party (PDP), Dr John Ayuba says the failure of government to provide the much needed enabling environment led to the drought of Foreign Direct Investments (FDIs).
At the home front, Ayuba said the economy did not fare betther as local investors were hounded with harsh and vindictive policies.
According to him, the economy needs a leaders with business acumen and who understands and with a face of business.
Chief executive of Abuja based Muregi Associates, Dr. Husseini Mohammed in his response to inquiry titles his submission “Economic Annus Horriblis.”
As the above indicates, Commenting or writing in assessing the Economic situation of the country in 2018 is not farfetched considering a number of factors, namely, Inflation, Unemployment, Manufacturing, Private Sector Performance and indeed the overall activities of the socioeconomic indicators all proved by and large negative.
Manufacturing sector, which is the engine of economic growth in terms of Capacity utilization, was too low and generally considered unacceptable or unrealistic for any meaningful economic growth. In a way it wouldn’t be out of place to conclude that, the year 2018 is what in Latin we call “Annus Horriblis”.
On the expectations for next year, he said, “we need to be cautious because the current budget of N8.83 Trillion Naira with a production of 2.3 barrel and a benchmark of $60per barrels is already questionable by the current sport market of $53 per barrels and OPEC’S cut in our production to a mere 1.93 barrels.
For the Economy to turn around, we must look inwards in the development of Agriculture and other allied resources with a major emphasis on the small-scale industries as enablers.
Leadership is everything, election is just about a month away, therefore, whoever emerges as the president be it the current leadership or the PDP leadership will have Herculean task in managing the state of affairs of the country.”
Engineer Martin Onovo told our correspondent that the “year, just like the previous years under the current administration, didn’t witness salutary growth because the handlers of the country have no idea of how to pilot it let alone functionalize the nation’s section.
He said the development explains the lingering crisis of confidence between the Minister of State for Petroleum Resources, Ibe Kachikwu and the group managing director of the Nigerian National Petroleum Resources (NNPC),Maikanti Baru, fuel subsidy payment, corruption and all other inherent infractions which ordinarily should have fizzled out given the right leadership.”
On power situation some analysts say despite the recent claim by the country’s Power Minister, Babatunde Fashola, that the current administration has taken power situation to the next level, the Senior Staff Association of Electricity and Allied Companies(SSEAC) and critical stakeholders felt the minister played to the gallery .
National president of the Union, Comrade Chris Okonkwo told newsmen that Nigeria didn’t achieve any substantial growth in the power sector in 2018,adding that the power distribution companies had a field day by imposing estimated billings on customers, denying them prepaid meters and shunning investment in infrastructure that could boost power supply in the country.
A leader of a pressure group organization in Lagos, Comrade Chinedu Bosah corroborated Okonkwo’s position, saying the claim of improved power supply by the current government in 2018 is a mere political gimmick
Consequently, President of the Nigerian Employers’ Consultative Association (NECA), Dr. Yinusa, has recommended that government should see to a logical conclusion its power sector reforms to deliver stable power supply to the populace, while priority should be given to the rehabilitation of deplorable road networks while constructing additional ones across the nation.
He said: “There is the need for close monitoring and regulation of the activities of road concessionaires to ensure optimum benefits from such concessions. The transportation and haulage system is virtually road dependent. This is not good for the economy.
“Development of alternative transport system, particularly the water transport, railway, both intra and interstate, should be accorded high priority.
“We recognise the efforts of government in respect of its rail modernisation programme and recommend that the programme should be accelerated in view of its centrality to the growth of internal trade and industrial competitiveness.”
With the upcoming general elections, he advised Government not to focus solely on politics at the expense of the economy and good governance, but continue to work assiduously to sustain the steady stabilisation of our economy through informed policies to position it for continued growth.
However, on the anti-graft war, the government, according to some analysts was able to change the status quo to an extent, as they all agree that it became obvious that there was a new sherrif in town.
Indeed, one of the landmark strategies initiated by the government was the Whistle-blower policy, which, according to the government, has yielded several recoveries, including, N13.8 billion from tax evaders and N7.8 billion, $378 million, £27,800 in recoveries from public officials targeted by whistleblowers.
It also said the National Economic Council (NEC), under the Chairmanship of Vice President Yemi Osinbajo, approved the audit of key federal revenue generating agencies, which has so far yielded a total sum of N526 billion and $21 billion. The money was underpaid to the Federation Account between 2010 and 2015.
However, while the ruling APC goes to the 2019 polls with some of these achievements, many believe the government may have fallen short of great expectations Nigerians including improving their living standards. But, rather, what they have experienced in the last twelve months was more of despondency and hopelessness
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We Support Rivers Workers To Feel Valued, Productive, Says Fubara …Inaugurates Bayelsa Labour House
Rivers State Governor, Sir Siminalayi Fubara, has explained that in the heat of political crisis staged against his administration in 2023, he committed to improving the welfare of Rivers workers in order to have a well-motivated workforce to achieve the goals of the Rivers First mantra.
The Governor stated that the resultant industrial harmony has now become unprecedented as workers feel more valued, supported, and resolved to be more productive on an increased efficiency and profitability scale.
Governor Fubara gave the explanation while inaugurating the one-storey twin-building Labour House constructed by the administration of Governor Douye Diri, in Yanagoa City, the Bayelsa State capital, yesterday.
The Governor recalled that while en-route Abuja for a reconciliatory political meeting to find solutions to the 2023 political crisis, his mind kept drifting to what could be done to give hope and cushion the hardship faced by Rivers workers.
Governor Fubara said he made the decision, therefore, to pay Christmas bonus of N100,000 to every worker, across grade levels in December, 2023, and extended the gesture to retirees in 2024.
The Governor stated: “On the 18th of December, the year of Our Lord 2023, I was on my way to Abuja for a reconciliatory meeting, and I was thinking: what will I do for my people – my primary constituency, who are the civil servants?
“We all know that the salary is not enough during the Christmas period. I knew we had a lot of challenges at that time, and it would be difficult for me to do the 13th month.
“But, however, even if I had to do the 13th month, it would also be a cheating to the lower level workers because some of them would have less than N100,000. So, I decided that I was going to do a bonus of N100,000 to all workers. That was my meeting with the Accountant-General while I was on my way to Abuja.”
Governor Fubara said: “After the meeting, I was weakened in my spirit. But on my way back, I said no matter the sadness, I still need to make my people happy.
“And even in the face of that most difficult time of our administration, we made all the civil servants very happy by giving everybody N100, 000 for Christmas that year.”
Governor Fubara pointed to the letter of appreciation written to him by the leaderships of Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC) due principally to the fact that the gesture was extended to all pensioners in 2024, while also seeking to give him an award of recognition.
The Governor stated that what had been done has contributed to the industrial harmony enjoyed in Rivers State, as according to him, every labour issue has also ended on the dialogue table.
Governor Fubara said: “It is not because we are meeting all their needs, but because we are putting human face to governance. We are not running it like Nebuchadnezzar’s time.
“We are not running it like the Babylonians. We are running it with the Jesus style where love takes the lead over everything. Where love is what should be in front and behind.”
Governor Fubara noted that what the Bayelsa State Government has done shows there is good relationship existing between labour and the administration of Senator Diri.
The Rivers State Governor advised the organised labour in Bayelsa State to consider the gesture, not as a right but a privilege so that they can embrace it wholeheartedly, defend, cherish, and protect it, and ensure that nobody comes between them and the government to cause friction.
Governor Fubara also expressed sadness over the demise of Chief Edwin Clark, a leader, he noted, will be remembered for his positive impact on many aspects of national and régional issues.
He said, “We are here, we just observed a minute silence for the death of our hero, Pa Edwin Clark. What is he remembered for? For his courage, truthfulness, doggedness, and the survival of this region.”
Governor Fubara told Senator Diri: “I want you to continue to stand for same thing, and I can see that you are standing for what is right. That is what history will remember you for.
“History will not remember anyone for any destructive thing, don’t deceive yourself. Money and material things cannot be taken for a good name. So, please continue to do what is right. History and the good people of Bayelsa will forever remember you.”
Governor Fubara assured that his administration will promote a robust relationship between Rivers and Bayelsa, unlike what it was 15 years ago, which is why all legal battles hitherto instituted in court have been withdrawn and would be settled out of court.
He added, “That is the first thing to show our commitment that we are in a mutual relationship and ready to make progress. You said it here, Rivers cannot develop without Bayelsa. Bayelsa also cannot make progress without Rivers. That is the truth.”
In his speech, Bayelsa State Governor, Senator Douye Diri, said the project was started by the administration of his predecessor, Senator Seriake Dickson, but quickly added that he has completed it to provide the organised labour in the State a place to conduct their activities, while using it as a platform to voice their concerns, access support services, and engage in constructive dialogue with his administration.
Senator Diri, who commended Governor Fubara for his exemplary labour-friendly policies that have promoted workers’ welfare and industrial harmony, said his administration has so far paid N20billion to servicing pensions and gratuities, hoping to upset all outstanding indebtedness by the end of his second tenure.
In his remarks, Bayelsa State Commissioner for Labour, Employment and Productivity, Mr Odoko Saturday Omiloli, said the magnificent Labour House is a testament of the commitment of the Prosperity Administration of Sen. Diri to promote the welfare and well-being of workers in the state.
In their joint address, both Trade Union Congress (TUC) and Nigeria Labour Congress leaders thanked Governor Diri for building a befitting edifice for them, and pledged to sustain support to his administration.
President Bola Tinubu has expressed sadness over the passing of former Federal Commissioner for Information and respected leader of the Pan-Niger Delta Forum, Chief Edwin Clark.
Tinubu’s condolence message was contained in a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, yesterday.
Tinubu said, “He led an illustrious life marked by dedicated service, at different times, to the nation and his community as a councillor, state and federal cabinet member.
“He was also a passionate advocate for resource control, economic and environmental justice in the Niger Delta.”
The statement reads: “On behalf of the federal government, the President extends his condolences to the Edwin Clark family, the Ijaw nation, the people of the Niger Delta, and the government of Delta State. President Tinubu mourns Chief Clark and describes his passing as a deeply sobering loss.
“Reflecting on the life of the late statesman, the President says Chief Clark was a towering figure whose influence was felt across Nigeria’s political firmament for nearly six decades. The President states that Chief Clark was a courageous leader who stood for what he believed in and was never afraid to stand alone in the face of injustice.
“Chief Clark spoke for the Niger Delta. He spoke for the nation. His views and interventions on national issues were distinct and patriotic. Pa Clark, a lawyer and educationist, believed in a united Nigeria, and until his last breath, he never stopped reaching out to people from different parts of the country to work together to preserve national unity based on justice and equity.
“As an astute politician, his political opponents never doubted the weight of his words, his confidence, and his conviction when he spoke. Indeed, a patriot has transitioned to the great beyond. History will remember him as a man who fought gallantly for the rights of the people of the Niger Delta, unity in diversity, and true federalism. I know many generations will remain proud of how his efforts contributed to national prosperity and stability.”
Tinubu prayed for divine comfort for Chief Clark’s family, friends, and all those affected by this significant loss.
Clark died on Monday at the age of 97.
His demise was announced by a representative of the family, Prof. C. C. Clark, in a statement Tuesday.
The statement read, “The Clark-Fuludu Bekederemo family of Kiagbodo Town, Delta State, wishes to announce the passing of Chief (Dr.) Sen. Edwin Kiagbodo Clark OFR, CON on Monday, 17th February 2025.
“The family appreciates your prayers at this time. Other details will be announced later by the family.”
Clark’s death is coming on the heels of the passing of Afenifere leader, Pa Ayo Adebanjo, who died at the age of 96 just a few days ago.
Both Clark and Adebanjo are known for contributing to the political development of the country.
Meanwhile, former President Muhammadu Buhari has also mourned Clark, describing him as an iconic statesman.
Buhari, in a condolence statement yesterday, said he death of Clark had caused deep sorrow in his heart and that of many in the country.
The statement read in part: “Late Chief Edwin Clark was a leader dedicated to reforms whose commitment to the development of his community and the nation would always be remembered. His death caused deep sorrow in his heart, and that of many, and his departure was a loss for the nation.
He is an iconic statesman”.
The former president maintained that the late Ijaw leader had left an indelible imprint on the nation and that in his passing, Nigeria had lost an iconic statesman and a distinguished leader.
He added that his commitment to the country’s unity would be respected by generations to come.
Buhari further urged the Clark family and fellow citizens in the Delta region of the country to uphold his numerous achievements.
Also, former Senate President, Bukola Saraki, has described the late PANDEF leader as a man of great conviction.
In a brief message posted via his verified X handle, yesterday, Saraki praised the elder statesman’s unwavering conviction, stating that Clark stood firm in his beliefs until the very end.
“Chief Edwin Kiagbodo Clark was a man of great conviction who stood firm for what he believed in—right to the very end,” Saraki wrote.
He added that Clark’s passionate advocacy for justice and equity would be deeply missed by Nigeria, the Ijaw nation, and the Niger Delta, for whom he was a tireless advocate.
“His death marks the end of an era—an era of principled leadership. He was one of the movers and shakers of the Second Republic Senate, in which my father served as the Leader of the Senate.
“On behalf of my family, I extend our heartfelt condolences to the Clark family, the entire Ijaw community, the people of the Niger Delta, and all Nigerians who mourn the loss of this extraordinary leader,” the former Senate President stated.
A towering figure in Nigerian politics and a relentless advocate for the rights of the Niger Delta, Clark was a lawyer, administrator, nationalist, and freedom fighter.
He served as Commissioner for Education in the Mid-Western Region from 1968 to 1971, and later as Commissioner for Finance and Establishment in the defunct Bendel State between 1972 and 1975.
At the federal level, he was appointed Commissioner for Information in 1975 and subsequently became a Senator from 1979 to 1983.
Beyond his political career, Clark was a leading voice for regional and national unity. He was also known for mediating peace among warring communities and politicians in the Niger Delta region.
Rivers State Governor, Sir Siminalayi Fubara, has explained that his administration is courageously executing strategic projects that are opening up Kalabari land for unprecedented development and economic growth.
Governor Fubara made the explanation when he received on solidarity visit, a delegation of monarchs, political leaders, elders, women and youths of Kalabari Ethnic Nationality, led by the Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, at Banquet Hall of Government House in Port Harcourt, last Tuesday.
The Governor stated that while previous administrations avoided executing the original plan for the Trans-Kalabari Road project due to cost implications, he has ventured into it, and driving the process steadily in order to link Kalabari land to the State capital.
Governor said: “Somebody said, if I don’t do it for my people, who will do it for them. We ventured into the Trans-Kalabari Road, we didn’t close our eyes. Our eyes were open because we knew what we were entering into.
“It is not a joke; it is a big project. We believe that at the end of that project, the level of development that it will attract to that line of entry into Kalabari will be very unprecedented.
“Issues of insecurity from our waterways will be reduced because, at that point we are doing road, people won’t be using the river anymore. The cost of living will also be cheaper.”
Governor Fubara further asserted: “So, you understand that your interest, your safety, your development is key to us. It is not about the number of years that we are going to be here; what is important to this government is the impact we make while we are here.”
Responding to their unanimous endorsement to see him run for a second term in office, Governor Fubara said power belongs to God, and He gives it to whoever finds favour in His sight.
Governor Fubara, however, stated that if God so approved of it, even those who are regrouping against him will not see the path God will lead him because they cannot scuttle such plan.
He added, “Power belongs to God. So, you see, I like believing that we don’t have any problem. When we get to the bridge, we will cross it. If we can break the bridge, Moses will come and create a road for us. So, you don’t need to worry.
“We will cross the bridge. We will cross it in a way that our enemies will be struggling; they won’t see where we are passing. So, don’t worry.”
Governor Fubara acknowledged the immense support to him by Rivers Ijaw, and urged particularly the Kalabari people to stand with honour in their unalloyed support for his administration, which will neither abandon them nor fail to deliver quality projects to the people.
Governor Fubara also responded to their requests and informed them that his administration has completed the Emohua/Tema Junction Road project, and ready to inaugurate the Degema Zonal Hospital in May.
He said the Health Commissioner has been directed to assess the state of the Abonnema General Hospital for immediate rehabilitation, while promising to address the issues of shore protection in the area.
Governor Fubara assured that with the Abonnema sandfilling works completed, the phase two will commence that will include Buguma, explaining that the Commissioner for Works has been tasked to do the assessment immediately.
On the request for the establishment of tertiary institution in the area, Governor Fubara said his administration is already inaudated with memos asking that the off-campus of Rivers State University established previously be revised because it has become difficult to sustain them, but quickly added that the government will consider the establishment of a viable institution that will provide technical and entrepreneurial skills to the people in a sustained manner.
Reading the address of Kalabari Ethnic Nationality, Chief Pawariso Samuel Horsfall, announced that the entire Kalabari people have unanimously endorsed Governor Fubara for a second term, and vowed to mobilise Rivers people to ensure electoral victory for him in the 2027 gubernatorial election.
In his speech, the leader of the delegation and Amanyanabo of Abonnema, King Disreal Gbobo Bobmanuel, expressed the profound thanks of the Kalabari people to Governor Fubara for his genuine love for them, as evidenced in the types and quality of development projects delivered or being executed in the area.