Business
FG Begins 40% Workers’ Pay Rise Against Subsidy Removal
The Federal Government is set to begin payment of the planned increase in civil servants’ pay by the end of this month, The Tide source reports.
According to the source, President MuhammaAdu Buhari is expected to give his final assent for disbursement any moment.
If the proposal sails through, it means the increase will be coming about two months to the June date proposed for the removal of petrol subsidy.
The source further noted that the fresh pay increase, tagged “consequential allowance”, would lead to a 40 per cent rise in the current pay of Federal Government workers.
The Director of Press and Public Relations, Ministry of Labour and Employment, Olajide Oshundun, who revealed this to the source, said the Federal Government might begin payment of the 40 per cent pay rise by the end of April this year, adding that the three months arrears of January, February and March would be paid at a later date.
Oshundun said, “Consequential allowance salaries will be increased by 40 per cent for civil servants from level 1 to level 17.
“What we receive now is called ‘consolidated public service salary structure’, it is the combination of basic and all allowances. So, the increase will be 40 per cent of what a public servant is earning now.
“They will start paying from the end of this month (April) and the arrears of January, February and March will be paid later.
“The salary increase is effective from January 2023. That is the proposal submitted by the committee set up to look into salary adjustment for civil servants, but am not sure if the President has signed it yet”.
Last month, the Minister of Labour and Employment, Chris Ngige disclosed that the Federal Government had approved a pay raise for civil servants in the country.
He added that the pay rise had been included in the 2023 budget, noting that it would take effect from January 1, 2023.
Ngige described the pay raise as a peculiar allowance for civil servants in view of the current economic reality and it is meant to help government workers to cushion the effects of rising inflation, rising cost of living, hikes in transportation fare, housing and electricity tariffs.
The source reports that Nigeria’s headline inflation increased to 22.04 per cent year-on-year in March, the highest rate since September 2005.
According to the National Bureau of Statistics data, the latest rise in inflation rate is the third consecutive increase this year, increasing by 0.13 per cent points when compared to the February 2023 headline inflation rate.
The NBS added that the cost of food and beverages contributed significantly to overall inflation.
“The contributions of items on the divisional level to the increase in the headline index are food and non-alcoholic beverages (11.42 per cent); housing, water, electricity, gas, and other fuel (3.69 per cent); clothing and footwear (1.69 per cent); transport (1.43 per cent); furnishings, household equipment and maintenance (1.11 per cent); education (0.87 per cent); health (0.66 per cent); miscellaneous goods and services (0.37 per cent); restaurant and hotels (0.27 per cent); alcoholic beverage, tobacco and kola (0.24 per cent); recreation and culture (0.15 per cent) and communication (0.15 per cent),” the NBS report added.
Kolomoni Microfinance Bank has awarded grants to five female entrepreneurs to boost their businesses as part of its commitment to promoting women in business.
The initiative, organized to mark International Women’s Day, was themed “Accelerate Her Growth.”
According to the bank, the decision to support women was inspired by World Bank data, which shows that 41 percent of Nigeria’s micro-businesses are owned by women.
Delivering the keynote address, business strategist, Ebun Akinwale, emphasized that entrepreneurship requires resilience, creativity, and passion.
She illustrated this by recounting her own business challenges and highlighting the critical role passion plays in overcoming obstacles.
The event underscored Kolomoni’s mission to empower women and support small businesses in Nigeria.
Other speakers at the occasion were Odunayo Oyebolu, a seasoned entrepreneur; Victori Ajiboye, a marketing strategist with global experience; and Simi Ojumu, a finance expert.
The beneficiaries said the financial support was a validation of their hard work and a boost of confidence towards scaling through in their businesses.
The winners were selected after sharing their entrepreneurial journeys and presenting business proposals for financial assistance from the bank.
The 8th edition of the Nigeria Small and Medium Enterprises (SMEs) Summit and Awards (Nigeria SMEAwards) is set to take place in Lagos for the first time in its history, marking a significant milestone for this prestigious event.
Endorsed by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), the annual awards celebrate the entrepreneurial spirit driving Nigeria’s economy.
The visionary convener of NigeriaSMEAwards 2025, Adedayo Olalekan, said, “Governors from Zamfara, Sokoto, Ebonyi, Borno, Enugu, Ekiti, Benue, and Kaduna States have all implemented transformative initiatives that have greatly benefitted local enterprises.
“Their contributions will serve as a beacon of inspiration for the nation.”
Speaking at a recent press conference in Lagos, Olalekan emphasised that the event would introduce a fresh and unique approach, moving away from tradition.
“Despite economic challenges, Nigerians continue to show an unwavering commitment to progress”, he said.
He noted that the awards will not only honor outstanding individuals, but also recognise the critical role state governments play in nurturing vibrant SMEs.
“State governments have been instrumental in fostering a supportive environment for SMEs, which in turn benefits both the awardees and the larger economy.
“With major banks like Providus, Access, and First Banks competing for top honors, the 8th NigeriaSMEAwards promises to be a night of celebration, recognising exceptional contributions to Nigeria’s SME landscape”, Olalekan added.
Amid global challenges such as inflation, geopolitical instability, and the ongoing conflict in Ukraine, Nigerians continue to show remarkable resilience.
Their efforts, according to reports, have contributed to job creation, economic growth, and overall prosperity, with SMEs at the forefront of this success.
This year’s awards will recognise governors who have made significant strides in advancing the SME sector within their states.
Small and Medium Enterprises (SMEs) consultants in Rivers State have called on entrepreneurs to be focused and avoid distractions.
The experts, who were speaking on the recent developments about the change of leadership in the state, said entrepreneurs need to put more efforts in their businesses in order to break even in the present situation in Rivers State.
Speaking in a chat with The Tide, an international SMEs consultant, Amb. Larry Goodwill Ajiola, said the political moves is capable of distracting SMEs who are not grounded in their businesses, adding that “the serious minded business men and women would utilise the opportunity to increase their revenues”.
Amb Ajiola, who is the President and Chief Executive Officer (CEO) of Rumuomasi Co-operative and Credit Society Limited, Port Harcourt, said, “Rugged entrepreneurs look out for business opportunities in situations around them, whether good or bad”.
He reiterated that the loan facility given to 3,000 SMEs in the state revived and expanded businesses, adding that the empowered businesses should continue to push, no matter the situation.
“credit is a powerful tool for achieving financial security.
“We can only keep imagin the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the Local Government Areas in terms of Gross Domestic Prooduct (GDP), increased tax returns, employment creation, income distribution, and production of goods and services”, he said.
Another SMEs Expert, a business consultant and SMEs trainer, Mr. Chisom Sam-Orji, in his advice, noted that every SME in the state should realize that change is the only constant thing.
He said SMEs should also know that “tough times never last, but tough people do”, adding the need for every entrepreneur to stay focused on creating value and remain resilient.
“This is not the time to be distracted by every noise around your space, but to maximize every time you have to focus on the essentials and keep creating value.
“For some people, it may just be the time to diversify, create new products and services to serve a new or existing market. But this must be based on the facts available to you via research and market surveys”, he said.
The SMEs expert also said the present time in the life of an entrepreneur is a time to cut off unnecessary excesses that surround one’s business.
“Those extra costs that may hamper your growth in this season and beyond, and focus on just essentials.
“SMEs should find certain leverages that are available to aid their business growth. This could be in form of grants, knowledge, and other leverage tools.
“Collaboration is one big way to grow in this season. Finding ways to collaborate with like minds instead of competing could enable a product or service gain advantage in the market and beyond.
“They should also find ways to sustain and grow their customer relationship as this is key to sustaining business flow. They must seek new and efficient ways to serve their customers and gain their loyalty”, he stated.
He further called on every entrepreneur to keep building capacity and never take their eyes off their visions, adding the need to muster every courage it takes to keep building and moving forward.
Lilian Peters