Business

Tinubu’s reforms painful due to delayed implementation, says Edun

Published

3 weeks ago

November 23, 2024

Seyi Babalola

…Says no more access to easy money by rent seekers

…Hails Walson-Jack impactful reforms in 100 days as head of service

Minister of Finance and Coordinating Minister of a the Economy, Wale Edun, has said after 18 months of significant reforms under President Bola Tinubu, Nigeria is witnessing a transformative shift in its economic landscape.

According to him, while these changes were long overdue and resulted in temporary pain, discomfort, and increased living costs for many citizens, the benefits are now becoming apparent.

He said this at the validation for the Federal Civil Service Policies and Guidelines, by Head of the Civil Service of the Federation, Didi Walson-Jack, commending her for her significant achievements in her first 100 days in office.

Edun, highlighted the immediate positive impact of these reforms saying: “The reforms were so long overdue that it caused an element of pain,” he acknowledged, but emphasized that “the successes and the gains are coming through.”

One notable example of this transformation, he said is the implementation of market-based pricing for Premium Motor Spirit (PMS) and foreign exchange. Edun explained that prior to these reforms, subsidies were costing the country approximately 5% of its GDP. “If we consider an average GDP of $400 billion, that translates to about $20 billion that could have been allocated to critical sectors such as infrastructure, health, social services, and education,” he stated.

With the removal of these subsidies, he said funds are now flowing back into government coffers, allowing for greater investment in essential public services.

Edun pointed out that this shift not only strengthens federal finances but also benefits state and local governments. “The flow is now coming back into government coffers to be deployed in those areas,” he noted.

He further elaborated on the shift in Nigeria’s economic landscape, stating that the new incentive framework has moved away from rent-seeking behaviour associated with subsidies. “The real change is that nobody can wake up with the target of getting access to cheap funding or thriving in an opaque market,” Edun noted. Instead, he said the reforms had encouraged Nigerians to explore legitimate business opportunities under the African Continental Free Trade Agreement (AfCFTA), which opens doors for exports in various sectors.

“The country has changed,” Edun reiterated. “Now there are real opportunities where you can use your background, skills, knowledge, contacts, and energy to succeed in free enterprise while helping to create jobs and reduce poverty.”

He commended Walson-Jack, who presented her transformative agenda, which includes four key documents focused on enhancing civil service operations through reward and recognition, incentives, consequence management, and a monitoring framework.

Edun expressed his admiration for Walson-Jack’s proactive approach, stating, “I want to congratulate the head of the civil service for not just achieving 100 days but using that platform as an opportunity to gather you all and put across to you her agenda.”

He emphasized that these documents are essential tools designed to empower civil servants and improve their effectiveness in delivering government services.

Edun underscored the critical role that civil servants play in executing President Tinubu’s economic reforms, which are aimed at stabilizing the economy, reducing inflation, and creating jobs.

He remarked, “You are the arrowheads. It is your knowledge of competence… your determination on the job that makes a difference.” He urged civil servants to embrace their responsibilities with renewed vigor and commitment, as their efforts are vital to the success of the administration’s macroeconomic objectives.

Earlier, the Head of the Civil Service of the Federation, emphasised the importance of redefining public service delivery in Nigeria. “Today, we embark on a collective journey to create a Civil Service that is professional, efficient, and globally competitive,” she stated.

Walson-Jack introduced four transformative documents aimed at guiding the Federal Civil Service: the Rewards and Recognition Policy, Incentives and Consequence Management Policy, Mentoring Framework, and Protocol on the Use of Federal Government Secretariats. She described these policies as essential tools for embedding excellence and accountability within the service.

Celebrating her first 100 days in office, Walson-Jack highlighted the theme “Marching to Greatness,” reflecting her commitment to fostering a culture of performance and integrity.

She urged stakeholders to actively engage in discussions during the validation process, stressing that their insights are crucial for refining these policies.

As part of the event, newly promoted directors were recognised for their achievements, reinforcing the values of diligence and professionalism in public service.

Daily Sun

Business

inDrive Emerges Most Outstanding Brand in Urban Service

Published

6 hours ago

December 12, 2024

Seyi Babalola

inDrive, a global mobility and urban services platform, has emerged the most outstanding brand in urban service in Nigeria at the maiden edition of Iconic Brands and Legends of Media and Marketing Communications Award held in Lagos on Tuesday, December 10, 2024.

inDrive was recognized and celebrated for its transparency, fairness, and affordability in intercity travel and logistics among ride-hailing platforms in Nigeria.

Speaking on the award, Timothy Oladimeji, Country Representative, Nigeria, inDrive, described it as a testament to the ride-hailing platform’s unique contribution and commitment to providing fair and accessible transportation options to its customers.

Oladimeji stated that the award highlights the company’s focus on safety, fairness, affordability, and satisfaction, thereby cementing its reputation as the go-to ride-hailing service in Nigeria.

He noted that the achievement underscores the company’s dedication to delivering the best ride-hailing and logistic experience for customers while continually pushing the envelope for innovation. He explained that the mobility platform remains a game-changer in the ride-hailing business in Nigeria as it empowers both drivers and passengers through its negotiation model.

“This recognition is a huge motivation that would help us expand our footprint and continue to provide exceptional services to all our customers. I can categorically say that the recognition validates the acceptability and rapid adoption of our platform by both drivers and passengers in Nigeria,” he said.

Speaking on the recognition and criteria, the lead convener of the award, Samuel Ajayi, said the award was truly deserving, given that the platform has provided unique, fair, and affordable services to all its users.

Ajayi emphasised the significance of acknowledging the brand’s achievements in Nigeria over the last few years adding that the company has shown exceptional performance by all parameters and standards.

“inDrive has really thrown its weight since joining other ride-hailing platforms in Nigeria. I am happy to say that inDrive has disrupted the Nigerian market with its unique offerings, which has endeared many users to the platform. From our findings, I can say that the brand remains the preferred platform given that it is the only one that provides safe, fair, efficient, and affordable transportation,” he said.

Since launching in Nigeria, inDrive has cemented its status as a market leader through its commitment to enhancing urban mobility and consistently delivering superior customer service.

Business

FG to benefit from World Bank’s $500m loan

Published

21 hours ago

December 11, 2024

Seyi Babalola

Federal Government is to benefit from a $500 million loan facility from the World Bank for the Human Capital Opportunities for Prosperity and Equity (HOPE) project in the country.

Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, made this known during a courtesy visit on him by the International Monetary Fund (IMF) Mission Chief for Nigeria, Mr. Axel Schimmelpfennig

The loan facility, according to the minister, will increase the availability and effectiveness for financing for basic education and primary health care in the various states of the federation.

The fund, he said, will enhance transparency and accountability for basic education and primary health care in addition to improving recruitments, deployments and better performance management of teachers.

While appreciating the support of the World Bank, Bagudu elucidated that the Nigerian Constitution is the legal framework that provides the rules and procedures that guides the budget process in addition to empowering the federal and state governments to make expenditures in the preceding year for the purpose of meeting expenditure necessary to carry on the services of the government.

“This expenditure can continue for a period not exceeding six months or until the coming into operation of the law as can be seen on Chapter 5, Part 2 Section 122 of the Nigerian Constitution” he said

Bagudu explained further that the reforms embarked on by the Bola Ahmed Tinubu’s administration were aimed at developing and implementing economic and tax reforms that will guarantee more functional Public Financial Management (PFM) systems in the country.

“The economic reforms are necessary decisions to put the Nigerian economy on the right track”he explained

He assured the IMF Team that though Nigeria is experiencing a number of challenges such as hardship of citizens as a result of removal of fuel subsidy, floating of foreign exchange, electricity reforms that distributed citizens into bands, Nigeria is on course to economic recovery.

In a statement, the minister appreciated the willingness of the IMF to support Nigeria but however called for more support in the area of resource mobilisation from multinational partners in order for government to provide developments in all sectors of the economy.

Earlier, the International Monetary Fund (IMF) Mission Chief for Nigeria, Mr. Axel Schimmelpfennig said he was in the country to have interactions with the minister on the workings of the Nigerian budgeting process with particular emphasis on the simultaneous implementation of the 2023/2024 budgets and supplementary budgets in the same year in preparation for the publication of the 2025 annual report of the World Bank.

Schimmelpfennig welcomed the tax reforms of the federal government as increased revenue generation will ensure more developments for Nigerian citizens and thus promised the country of more IMF support for Nigeria’s developmental needs.

Permanent Secretary, Ministry of Budget and Economic Planning, Dr. Vitalis Emeka Obi, briefed the team on the ministry’s role in co-ordinating Nigeria’s development planning and budgeting processes. The Permanent Secretary emphasised that 2025 promises to be a year of more rapid investments.

DailySun

Business

FG invests $450m on CNG value chain

Published

3 days ago

December 9, 2024

Seyi Babalola

The Nigerian government said that it has invested over $450 million in the development of the country’s compressed natural gas value chain.

According to NAN, the Project Director of the Presidential Compressed Natural Gas Initiative, PCNGi, Michael Oluwagbemi, disclosed this on Monday at the 9th Edition of the Nigeria Energy Forum, NEF 2024, in Lagos.

Oluwagbemi, who was represented by Tosin Coker, the Head of Commercial at PCNGi, emphasised that the investment spans critical areas of the CNG infrastructure, including the establishment of mother stations, daughter stations, refuelling stations, and conversion centres across the country.

“The Presidential Compressed Natural Gas Initiative (PCNGi) on Monday said that it had invested more than 450 million U.S. dollars in the Compressed Natural Gas (CNG) value chain.