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Workers Salary: Group Lauds FG Over Bailout
The Chairman, Nigeria
Professional Shareholders Association, Mr Godwin Anono, has commended the Federal Government’s bailout of cash strapped states that could not pay their workers’ salaries.
Anono told reporters in Lagos that such a policy would ameliorate the economic sufferings of Nigerians with the woeful price of crude oil in the international market to the country.
He applauded the bailout stating that the affected states would not function properly without such assistance.
The chairman, however, urged the Federal Government to ensure to do thorough oversight in the use of the resources by the beneficiary states.
“The setting up of a panel to probe how the fund will be spent is necessary.
“It is also important that the government punish any government official that misappropriates them.
“Adequate penalty and sanction must be meted out to any political office holder who steals the bailout fund to serve as a deterrent to others in the future,” Anono said.
President Muhammadu Buhari had approved a comprehensive relief package worth N713.7bn to bailout some cash-strapped states that owed months of salary arrears to workers.
The Federal Government’s bailout was aimed at resolving the lingering crisis of unpaid workers’ salaries, especially in those states owing more than five months.
A former Director of the Central Bank of Nigeria (CBN), Mr Titus Okurounmu, said that many Nigerian states would continue to remain insolvent if they did not develop their internally generated revenue (IGR).
He said the financial crisis of many states of the Nigerian federation was due to their lack of creativity and innovation to grow their revenue base.
“Increasing IGR is one of the solutions that will enable the 36 states to create wealth.
“Almost all our states and local governments tend not to be exploiting the potential each of them have in the area of revenue generation.
“The state and local governments need to move away from the tendency of total dependence on allocation from the Federal Government.
“We are at a point that partnership with the private sector must be encouraged as a necessity to develop the IGR potential of the country,” Okurounmu said.
To a polytechnic don, Mr Mosheed Akinloye, the financial assistance rendered to some states by the Federal Government to cater for unpaid workers’ wages was good for the economy.
Akinloye, a Part-Time lecturer of the Department of Accounting, Lagos State Polytechnic, said that the bailout proved that the Federal Government was indeed a “big brother“.
“The policy clearly indicates that our federal authority is one of the avenues of last resort for states of the federation in financial crisis.
“But the bailout should not be construed as an opportunity for governors to be reckless with funds hoping that they will get assistance from the Federal Government all the time,” he said.
Rivers Lawmakers voting to request the State Governor to dissolve the former State Local Government Service Commission.
The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.
Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.
A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry, noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.
Corlins Walter
