Connect with us

Economy

IMF Describes Return of Fuel Subsidies As Disturbing

Published

on

In a virtual meeting with the representatives of the Federal Government, the mission of the International Monetary Fund stated that the resurfacing of fuel subsidies was concerning.

The IMF mission led by Jesmin Rahman, according to a press release, expressed its concerns about rising fuel subsidies to the Nigerian authorities during a virtual meeting.

The Fund also stressed the importance of introducing market-based fuel pricing mechanisms and the need to deploy well targeted social support to cushion any impact on the poor.

The mission commended the Central Bank of Nigeria for merging taking the official exchange rate to the NAFEX window.

However, they recommended the unification of all exchange rate windows and establishing a market-clearing exchange rate.

On monetary policy, they advised the country to strengthen the monetary targeting regime and integrating the interbank and debt markets.

Rahman was quoted as saying, “The Nigerian economy has started to gradually recover from the negative effects of the COVID-19 pandemic.

“Gross Domestic Product growth turned positive in the fourth quarter of 2020, and growth reached 0.5 per cent year-on-year in Q1 2021, supported by agriculture and service sectors.

“Nevertheless, the employment level continues to fall dramatically and together with other socioeconomic indicators, is far below pre-pandemic levels. Inflation slowed down in May but remains elevated at 17.9 per cent, owing to high food prices.

“As oil prices and remittance flows recover, the balance of payments has slightly strengthened, although imports are rebounding faster than exports and foreign investment subdued resulting in forex shortage.”

The mission urged the government to keep reliance on CBN overdrafts for deficit financing within legal limits.

It also asked the Federal Government to strengthen budget planning and public finance management practices to allow for flexible financing from domestic markets for better integration of cash and debt management.

The IMF applauded the Federal Government’s efforts towards containing the transmission of COVID-19 in the country and the COVAX vaccination programme.

It backed efforts to acquire additional doses from countries with surplus stocks.

“The extension of the moratorium on principal payments of qualifying credit facilities on a case-by-case basis through March 2022 should be limited to viable debtors with strong pre-crisis fundamentals.

“CBN stress tests show that the banking system would remain adequately capitalised except in case of a severe deterioration of credit quality.

“Nevertheless, it is not clear what share of forborne loans may turn non-performing as the impact of the pandemic subsides.”

It added that since NPLs often rose at the tail of economic crisis, CBN’s strong oversight remained critical to safeguarding financial sector stability.

The Punch

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Dangote Refinery Sacks All Nigerian Workers, Cites ‘Total Reorganization’ As Reason

Published

on

By

The management of Dangote Refinery has terminated the employment of all its Nigerian workers.

The statement to this effect was shared on X, Wednesday, by a political commentator, Imran Wakili.

“Dangote Refinery has officially laid off all of its Nigerian workers under the guise of “reorganization”, less than 24 hours after 90% of them joined PENGASSAN,” he wrote.

Wakili said the development comes less than 24 hours after 90 percent of them joined the Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN.

According to a memo dated September 25, 2025, and signed by the Chief General Manager of Human Asset Management, Femi Adekunle, Wakili posted on X, the company said the decision was taken as part of a “total re-organisation” of the plant following reported cases of sabotage in different units of the refinery.

The notice directed affected staff to surrender all company property in their possession to their line managers and obtain exit clearance.

The finance department was also instructed to compute benefits and entitlements for payment in line with terms of employment.

The refinery’s management thanked the dismissed workers for their services while in its employment.

Dangote refinery and PENGASSN have been embroiled in a trade dispute over unionization issue.

DailyPost

Continue Reading

Economy

Tinubu’s Borrowing Strategic, Not Reckless – Presidency

Published

on

By

The Presidency has defended Nigeria’s rising debt levels, emphasising that borrowing is a necessary and strategic tool for economic development rather than a sign of financial imprudence.

Special Adviser to President Tinubu on Media and Public Communication, Sunday Dare, responded on his official X account @SundayDareSD to criticisms from former senator Dino Melaye, who labelled the government’s borrowing as excessive and reckless.

Dare dismissed Melaye’s claims as uninformed “noise”, clarifying that the increase in Nigeria’s reported public debt of N149.39 trillion as of March 31, 2025, is mainly due to the depreciation of the naira, not new borrowing.

“When the currency depreciates, the naira value of existing external debt rises even without fresh loans,” he explained.

He highlighted that Nigeria’s debt-to-GDP ratio currently ranges between 40 and 45 per cent, which is moderate compared to South Africa’s 70 per cent and Ghana’s over 90 per cent.

Dare argued that the greater issue lies in improving government revenue generation rather than blaming borrowing levels.

“Debt is a legitimate instrument for financing growth and reforms. The key consideration is sustainability, not empty rhetoric. Unfortunately, Dino prefers theatrics over facts,” the presidential aide said.

Dare also noted progress in government revenue collection, which enhances Nigeria’s ability to meet its debt obligations.

According to him, the Tinubu administration is committed to the Renewed Hope Agenda reforms aimed at broadening the revenue base, sustaining investments, and maintaining debt sustainability.

“Until Dino understands the fundamentals of economics, his commentary will remain entertainment, not enlightenment,” he concluded.

Continue Reading

Economy

NUPENG Strikes Deal with Dangote Refinery, Suspends Industrial Action

Published

on

By

The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has suspended its strike following an agreement with the management of Dangote Refinery to recognise workers’ rights to unionise.

The deal was reached at a closed-door meeting convened by the Department of State Services (DSS) and attended by the Minister of Finance, Wale Edun and representatives of the Nigeria Labour Congress.

Acting NLC General Secretary, Benson Upah, confirmed the outcome, while the Ministry of Labour said it would issue a formal statement soon.

The resolution followed a conciliation meeting convened by the Federal Ministry of Labour and Employment on Monday, September 8, 2025, after NUPENG threatened to embark on strike over the company’s initial refusal to recognise workers’ union rights.

According to the Memorandum of Understanding (MOU) signed at the meeting, both parties agreed that unionisation is a right under extant labour laws, and employees of Dangote Refinery and Petrochemicals who wish to unionise would be allowed to do so.

The MoU further stated that the process of unionisation would begin immediately and be completed within two weeks (September 9 to September 22, 2025).

It also resolved that no employee of the refinery or petrochemical company would be victimised as a result of the strike notice.

In line with the agreement, NUPENG suspended its strike with immediate effect, while parties are expected to report back to the Minister of Labour a week after the conclusion of the exercise.

The memorandum was signed on behalf of the management by Managing Director Dangote Group, Sayyu Dantata, O.K. Ukoha for Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ojimba Jibrin, Dangote Group. It was also signed by representatives of labour unions: Benson Upah for Nigeria Labour Congress (NLC), N.A. Toro for Trade Union Congress (TUC), NUPENG President Akporeha Williams, and General Secretary of NUPENG, Afolabi Olawale.

The Federal Ministry of Labour and Employment was represented by: Amos O. Falonipe, Director, Trade Union Services & Industrial Relations, signing on behalf of the minister.

Continue Reading

Trending