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Editorial

For A Reasonable 2023 Budget 

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Nigeria’s plan to obtain another N11 trillion loan to finance the 2023 national budget leaves a bitter aftertaste. The nation’s dwindling economy obviously demonstrates that going for a fresh loan would further exacerbate the country’s financial adversity, as the monies borrowed before now have not been fully repaid. If the proposal to borrow in the 2023 fiscal year goes through, the present administration will leave behind massive debts for its successor next year.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, recently amazed Nigerians when she disclosed that the Federal Government would be unable to fund capital projects in the 2023 fiscal year unless it borrowed more than N11 trillion. Zainab, who said that the budget deficit for the 2023 fiscal year might run between N11.30 trillion and N12.41 trillion, noted that the government’s decision to continue payment of petrol subsidy would largely affect the projection.
Currently, the country’s total debt is N41.6 trillion. With the new borrowing for 2023, the cumulative debt will be N52 trillion at the time the administration will hand over to the next President on May 29, 2023. The minister, while presenting the 2023–2025 Medium Term Expenditure Framework and Fiscal Strategy Paper before the House of Representatives Committee on Finance, put the aggregate expenditure of the government for 2023 at N19.76 trillion.
Stakeholders fear that the economy is on the verge of bankruptcy because of the deepening debt crisis. Ahmed said crude oil production challenges and fuel subsidy deductions by the Nigerian National Petroleum Corporation (NNPC) Limited constitute a significant threat to the achievement of the nation’s revenue growth targets. They stated the need for bold, decisive and necessary action to address revenue loss and expenditure efficiency at national and subnational levels.
Indeed, the government’s suggested move smacks of gross insensitivity and a confirmation that President Muhammadu Buhari cannot manage Nigeria’s challenges. Nigerians must resist any further attempt by the current administration to enslave the country. Instead of plunging the nation deeper into irredeemable debt, it will be better for the President to honourably resign if the nation’s complex problems have overwhelmed him.
It is time everyone became conscious of the unfortunate economic implications of Buhari’s borrowing spree to avoid mortgaging the future of the unborn generations. We have pretended enough and for too long. At this rate of borrowing, Nigeria will soon be worse than a failed nation. We should no longer be making excuses about the despondency of our situation brought upon us by the current government. The situation is disconcerting and scary.
The new proposal to borrow would worsen the existing bad debt situation. Already, debt service has exceeded the government’s revenue going by the financial report of the Federal Government as of April this year. We are now at a debt threshold that is unsustainable. The economy is on the verge of collapse, while the increasing debt crisis could crystallise the insolvency risk. Therefore, elevated debt burden should be resisted strongly.
Regrettably, it implies that the entire capital budget, recurrent expenditure and part of the debt service, would have to be funded from borrowing. What is required is the political will to cut expenditure and undertake reforms that could scale down the size of government, reduce governance costs and ease the fiscal burden. Fuel subsidy has to be addressed as steps should be quickly taken to gradually exit the subsidy regime if the economy must not disintegrate.
The truth is that the Federal Government cannot cut costs; it keeps spending on unnecessary and unproductive items as if it was not aware that Nigeria has been grappling with a severe revenue crisis. The major source of its foreign exchange is oil export. To make issues worse, the country has been unable to meet its Organisation of Petroleum Exporting Countries (OPEC) allocated daily crude oil production quota for more than two years.
The sector is faced with unprecedented crude oil theft, while the governing authorities fail to make existing refineries work for domestic refining of crude. Our country already has a double-digit inflation figure as refined petrol sells for between N174 and N220 per litre above the official rate of 165/litre. Nigeria’s foreign exchange reserve is drying out because of poor forex earnings from oil that is spent on scandalous fuel subsidies through the back door.
It is spurious to think that Nigeria has a revenue concern. What it suffers from is the inability to reap its earnings because the government has not demonstrated enough capacity to either curb corruption or theft in the oil sector. Hence, the fiscal deficit would continue to soar as long as the authorities fail to creatively strengthen revenue generation by reducing corrupt practices, impeding oil theft and dealing with insecurity that has adversely manacled economic enterprises across the board.
Some financial and economic experts have warned the Federal Government to reduce its current level of borrowing, as a considerable chunk of government revenue is now being spent on debt servicing. This position is not distant from the truth. It is our view that rather than continue to rely on borrowing to finance its activities, Buhari should adopt other sources of funding for the infrastructure needs of the country. The government should broaden the sources of revenue for budget financing.
Significant areas the government could explore to free more funds for infrastructure development include reorganisation of the National Housing Fund, reorganising railway development to expunge it as a federal monopoly to bring in private sector investments, and opening the window of investments into the power sector, especially in transmission and distribution, among others.
So, we ask: where is the vaunted expanded production and revenue with which to pay the loans? The country is not yet paying back these loans; neither does it have sufficient funds to pay the interests on the loans. This government will easily go on record as having mortgaged the present and the future of Nigeria with its profligate expenditure and mercenary management of the economy.
We hope it will be restrained from doing more harm before leaving office. The National Assembly must not endorse another borrowing but rather institute an impartial panel that will probe and investigate all the monies generated from NNPC Limited, taxes and excise duties, contracts awarded, monies produced from gold and other solid minerals, Abacha’s loots and others recovered by the regime.

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Editorial

Israel-Gaza War: Sustaining The Ceasefire 

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The recent agreement between Israel and Hamas to cease hostilities marks a significant and much-anticipated step toward peace in a conflict that has devastated countless lives and infrastructure in Gaza. The ongoing violence, which has persisted for over 460 days, has yielded catastrophic human casualties and an acute humanitarian crisis. The need for a sustainable peace deal has never been more urgent, and this temporary ceasefire presents an opportunity for all stakeholders to work diligently towards a lasting resolution.
Following the Hamas attack on Israel on October 7, 2023, the conflict saw a dramatic escalation. This attack was described as one of the deadliest in Israel’s history, resulting in the deaths of 1,210 individuals, primarily civilians. In addition to the loss of life, the assault led to the abduction of 251 individuals, with 94 still held hostage in Gaza, as Israeli military sources reported that 34 of them are believed to be deceased. In response, Israel’s military operations have wreaked havoc on Gaza, claiming the lives of approximately 46,788 people, most of whom are reported to be civilians.
Qatar, Egypt, and the United States have facilitated a ceasefire agreement that comprises multiple critical components. Most importantly, it calls for a halt to the violence, providing a much-needed respite for the people of Gaza. The deal also outlines the release of hostages held by Hamas and prisoners detained by Israel. Furthermore, it aims to facilitate the return of displaced Palestinians to their homes, contingent on their viability following the extensive destruction.
While this ceasefire is a welcome development, it is essential for all involved parties to remain committed to a permanent peace agreement. The underlying issues that led to the conflict must be addressed to prevent future escalations and to foster an environment of mutual respect and understanding. As the world watches, the hope is that this temporary cessation of hostilities can pave the way for a more peaceful and stable future for both Israelis and Palestinians.
The peace deal will happen in stages, starting with a six-week period for limited prisoner exchanges, partial Israeli troop withdrawal, and humanitarian aid access. Hamas has released four Israeli soldiers for over 1000 Palestinians, with more releases to come. Israel will reduce troops in Gaza and open the Rafah crossing a week later, with less troop presence in the Philadelphi Corridor and complete withdrawal by the 50th day. The next two phases will depend on how both sides act during the first phase.
Therefore, it is unacceptable for any party to attack the other during a ceasefire. Reports indicate that after a ceasefire was announced, Israel bombed Gaza, killing at least 75 people and injuring many others. This violence during a ceasefire is unacceptable. While Hamas did initiate the conflict by invading Israel, Israel’s response has been far too severe, causing massive destruction in Gaza. The situation has resulted in unprecedented loss of life and devastation in the region.
Gaza has been completely destroyed, and further risks to the truce may create the belief that Israel aims to eliminate Palestinians like Hitler did with the Jews. Israel’s aggressive actions have lost them international support. Young people in the United States and Europe are now openly supporting Palestinians. With a truce in place, hostilities should cease and all parties must honour their agreements.
Hamas, seeing itself as a resistance force, needs to change its tactics for lasting peace. Their attacks on Israel have caused great suffering for innocent people in Gaza and destroyed much of the area’s infrastructure, leading to many lost lives. Both Israel and Hamas must commit to peace and avoid restarting the conflict. Attacking Israeli civilians or soldiers will only provoke strong retaliation from the Jewish State, harming those Hamas aims to protect.
Hamas, like the defunct Palestinian Liberation Organisation (PLO), should accept peace and recognise Israel’s right to coexist, focusing on development and prosperity for Gaza. Israel unilaterally withdrew from Gaza and North Samaria on August 15, 2005, dismantling settlements and troops after an agreement with Egypt. Hamas should stop teaching hate and instead use the opportunities from this withdrawal to help the people rather than build terror infrastructure. If West Bank control is an issue, Jordan might be discussed as a potential administrator.
Should Israel decide to withdraw completely from the West Bank, it is imperative that the Palestinians residing in that region recognise their responsibility to foster a peaceful environment, similarly to how Jordan maintains a harmonious relationship with Israel. To achieve this, the Palestinian people must actively commit to rejecting violence in all its forms and manifestations.
They must understand that genuine peace is not merely the absence of conflict but requires a steadfast dedication to non-violence, coexistence, and constructive dialogue. The era of bloodshed in the area must come to an end, giving way to a future where peace can truly flourish in the West Bank, benefiting all inhabitants and paving the way for a more stable and prosperous region.
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Editorial

No To Hike In Telecom Tariffs

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Nigerians are outraged by the Federal Government’s approval of a 50 per cent increase in telecommunications tariffs, with organised labour threatening to mobilise workers to boycott telecom services. The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) have described the upcoming tariff as outrageous, lamenting that it will worsen the already harsh living conditions of workers and the masses.
Similarly, the Coalition of Northern Groups (CNG) rejected the hike, stating that it was ill-timed and did not take into consideration the struggles of Nigerians. The Human Rights Writers Association of Nigeria (HURIWA) also criticised the review, calling it an illegal, unconstitutional, and oppressive policy that undermines the fundamental rights and freedoms of Nigerians. It is a difficult moment for the industry.
Recall that the Nigerian Communications Commission (NCC) approved a 50 per cent increase in tariffs for telecom operators last Monday, instead of the 100 per cent raise that operators had requested. This decision quickly angered the consumers’ association, which criticised the government’s approval as not only punitive but also insensitive.
We wholeheartedly agree with the stance of labour and other groups on this very sensitive matter. We unequivocally condemn the 50 per cent increase in telecom tariffs. Though telecom operators cite higher operational costs and inflation as reasons for the hike, the timing and impact raise serious concerns in the current economic situation. It is a blatant attack on the well-being of the Nigerian worker and a betrayal of the people to corporate interests.
Telecommunication services are essential for daily communication, work, and access to information. However, the average Nigerian worker already spends approximately 10 per cent of their wages on telecom charges. For a worker earning the current minimum wage of N70,000, this means an increase from N7,000 to a staggering N10,500 per month or 15 per cent of their salary, a cost that is unsustainable.
This hike exemplifies the government’s apparent ease in prioritising corporate profits over citizens’ welfare. It is shocking that the government approved a 50 per cent tariff increase for telecom companies within a month, yet took nearly a year to approve the recent minimum wage for workers, despite the rising cost of living and inflation eroding purchasing power.
The questions are: When will the government stand up for the citizens it swore to protect? When will the National Assembly rise to its responsibility and hold the Executive accountable for policies that blatantly undermine the welfare of the majority? When will the common man finally heave a sigh of relief in Nigeria? We urge the government, the NCC, and the National Assembly to review the implementation of this ill-advised increase.
It is difficult to understand the state of mind of the managers of the nation’s economy. Sadly, these managers have alienated themselves from the reality of today. How can a government approve a 50 per cent hike in the tariff of telecom services when even the N70,000 minimum wage has been eroded by inflation, electricity tariff hikes, exorbitant fuel costs, transportation, and other social services?
Even if there is a need for an increase, why does it have to be 50 per cent? If, after dialogue, it is agreed that a raise is necessary, we should all consider a more reasonable increase rather than the 50 per cent hike. Fifty per cent is excessive and will only worsen the already harsh living conditions of workers, placing a heavier burden and more suffering on them and the general population.
The recognition of telecommunication services as essential components of modern society cannot be overstated. In an era characterised by rapid digital transformation, these services are fundamental not only for personal communication but also for facilitating broader socio-economic engagement. The proposed tariffs increase in the telecom sector raises critical concerns regarding equitable access to vital services that support communication, education, healthcare, and commerce.
In a democracy, the people should be the central focus of all government actions and policies. Every decision should aim to improve their quality of life. This plan must be carefully scrutinised with the welfare of citizens in mind. An increase in telecom tariffs will negatively impact many Nigerians, as the internet has become an essential tool for business, communication, and daily activities.
The Tide calls for the immediate suspension of the 50 per cent hike in tariffs. Instead, we recommend a more reasonable adjustment of a maximum of 10 per cent, which balances industry sustainability with the current economic realities in the country. We also demand that the NCC engages in genuine, inclusive consultations with consumer advocacy groups, civil society organisations, and other grassroots stakeholders before implementing any tariff adjustments.

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Editorial

Hurray, Siminalayi Fubara Is 50!

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Born on January 28, 1975, in Opobo Town, Mr. and Mrs. Joseph and Love Fubara welcomed their second of five children and first son. His father, a former soldier who completed an overseas training tour of duty, instilled in him a strong sense of discipline and dedication. His mother, a civil servant, taught him the importance of hard work and perseverance.
He received his primary education at Opobo Primary School and continued his studies at Comprehensive Secondary School in Opobo. His passion for numbers led him to pursue a degree in Accountancy at the then Rivers State University of Science and Technology, now known as Rivers State University.
Upon completion of his Bachelor’s degree, he pursued further education and obtained a Master of Business Administration (MBA) and a Master of Science (MSc) from the prestigious University of Port Harcourt in 2013 and 2016, respectively. Fubara’s dedication to his studies and his commitment to personal growth have shaped him into the accomplished individual he is today.
Sim, fondly called by his colleagues, started his career in 2003 as a principal accountant at the Rivers State Senior Secondary Schools Board. His dedication led to his promotion to Director of Finance and Accounts at the Government House in 2015. In March 2020, he was appointed Permanent Secretary and then became the Accountant-General of Rivers State on December 23, 2020.
His achievements are numerous, as he is a Knight of the St. Christopher (KSC) Order of the Church of Nigeria Anglican Communion. Additionally, he holds the prestigious traditional chieftaincy title of Amaopusenibo of Opobo Kingdom. The Governor’s commitment to family is evident through his marriage to Valerie Ibiere Fubara, with whom he shares three beautiful children.
Among Siminalayi’s other significant qualifications and accomplishments are his fellowship with the Nigerian Institute of Management and his fellowship with the Association of National Accountants of Nigeria (ANAN). He holds membership in the Chartered Institute of Forensic and Investigative Auditors. His impressive background has gained him the trust and support of the Peoples Democratic Party (PDP), leading to his victory in the party’s governorship primaries for the 2023 general elections.
Fubara embodies a leadership style defined by simplicity and compassion. He exhibits patience, confidence, and empathy in his interactions with those he serves. His humility and faith in God make him trustworthy. Representing the younger generation, Sim leads with the slogan “Consolidating and Continuing the New Rivers Vision,” focusing on developing infrastructure, healthcare, education, security, agriculture, and investment opportunities for Rivers State.
The bravery exhibited by His Excellency in resisting godfatherism has attracted respect from a wide array of Nigerians, Africans, and supporters of democracy around the world. He emphasises serving the interests of the people of Rivers over any godfather. His actions unify diverse groups in the state, promoting a sense of belonging among various ethnicities.
Our affable Governor exemplifies robust moral leadership rooted in his Christian beliefs. As a devoted Knight, he shows compassion and selflessness in his governance. He fosters an environment where all religions can peacefully coexist. Fubara sponsored Muslim pilgrims for the 2024 Hajj and personally wished them well, encouraging them to pray for the state and Nigeria. His religious tolerance has earned him respect among Nigerians who value coexistence.
Moreover, the Governor’s appealing physique and charming smile have garnered admiration from many Nigerians, who view physical beauty as a reflection of inner qualities. His tall stature has solidified his status as a revered figure, commanding respect across the nation. Fubara has shown dedication to women’s issues by initiating several programmes in collaboration with the Women Affairs Ministry and the Office of the First Lady, highlighting his strong commitment to women’s empowerment and gender equality.
Sir Fubara has focused on actively involving young people in his governance by launching entrepreneurship and training schemes, notably the Rivers State Youth Empowerment Scheme. His efforts to support youth have earned him the backing of many young Nigerians. Additionally, he provides scholarships and makes donations to orphanages, demonstrating his commitment to investing in education for the benefit of children in the state.
Known for his strong commitment to national unity, this Governor reaches out to Nigerians from various backgrounds. As a state Governor, he demonstrates great nationalism by supporting citizens from other states, especially in Rivers. He respects the rule of law and democratic values, which has enabled past local government chairmen to complete their terms without issues. His effective management of Rivers State’s resources promotes transparency and accountability.
Despite facing numerous distractions, the Rivers Chief Executive has made remarkable strides in steering the state’s affairs, reflecting his unwavering focus and commitment to delivering results. He has encountered challenges but remains dedicated to his vision for a better state. His peaceful and caring leadership style has made him popular, inspiring new leaders to emulate similar qualities. By being strong yet compassionate, he has redefined the concept of leadership. Fubara’s selfless nature prioritises the state’s needs above his own. This has earned him widespread support.
As he commemorates his Golden Jubilee birthday today, even the most ardent critics, adversaries, and accusers cannot overlook that he embodies a worthy precursor in every sense.
Happy Birthday, His Excellency!

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