Economy

By Zayyad I. Muhammad

Nigeria boasts one of the largest cattle populations in Africa, ranking among the top on the continent. Over 20 million cattle are primarily concentrated in the northern regions, including states such as Adamawa, Borno, Kaduna, and Kano. 

The new Minister of Livestock Development, Idi Mukhtar Maiha, faces a complex and tasking job in three key ways.

First, the newly established Ministry of Livestock Development has high expectations from Nigerians. The ministry oversees and develops livestock policies, manages animal health and disease, improves breeds and genetic resources, enhances farming and production systems, supports rural livelihoods, and modernises livestock marketing and trade.

From an informal perspective, expectations will focus on how the minister will transform the lives of nomadic cattle herders from uneducated and nomadic to more settled, everyday lives while also addressing the farmer-herder conflict and the notorious practices of cattle rustling, banditry, and kidnapping for ransom, which are prevalent among some cattle herders.

Mukhtar’s second challenge lies in his background; he has spent most of his career as a technocrat at NNPC. Whether he knows it or not, he will inevitably experience the bittersweet realities of politics. Once appointed as a minister, one automatically assumes a political role. Mukhtar must navigate this transition, deciding whether to embrace full-time politics or attempt to balance his technocratic expertise with his political responsibilities. 

Furthermore, few people in Adamawa know him despite his former role as Managing Director of the Kaduna Refinery, a Petrochemical Company (KPRC). As a result, many may perceive him as elitist and aloof, particularly in an inherently people-centred position.

Mukhtar’s third challenge stems from the performances of his two predecessors from Adamawa, Mohammed Musa Bello and Prof Mamman Tahir, which many Adamawa people view as less than stellar. Their tenures have left a mixed legacy, leading to scepticism about Mukhtar’s ability to bring about something new and different. 

To distinguish himself, Mukhtar must work diligently to establish his identity and a positive track record. This task is particularly crucial, as he shares several traits with both former ministers, which could lead to assumptions about his capabilities and approach. By demonstrating effective leadership and addressing the needs of the people, Mukhtar can overcome this challenge and build a reputation that sets him apart.

With an impressive CV as a technocrat and practical knowledge of livestock management, Mukhtar’s Zaidi Farm stands out as a well-integrated enterprise that applies world-class best practices in animal husbandry. Given this background, we expect him to introduce innovative approaches to livestock management by benchmarking against countries renowned for their success in this field, such as New Zealand, Australia, the Netherlands, Denmark, Brazil, Ireland, and the United States. These nations have excelled in implementing efficient and sustainable livestock practices, utilising advanced genetic research and technology to enhance productivity. However, Mukhtar’s journey will be sweet and bitter, mainlydepending on his approach to leadership, public relationships and policy implementation. By embracing collaboration and leveraging global best practices, he has the potential to make significant strides in transforming the livestock sector.

Zayyad I. Muhammad writes from Abuja, zaymohd@yahoo.com

By Uzair Adam

The Nigeria Labour Congress (NLC) has expressed strong support for the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) in its decision to initiate a nationwide strike.

The strike threat follows allegations that military personnel were deployed to remove workers from the Oritsetimeyin oil rig, a move that has drawn widespread criticism.

In a statement issued on Friday, NLC President Joe Ajaero condemned the alleged military intervention, affirming the congress’s solidarity with NUPENG.

Ajaero warned of escalated actions from NLC if breaches of agreements and the use of security forces in industrial disputes persist.

This stance arises from a protracted dispute between NUPENG and the oil rig’s management, where agreements on employment terms reportedly remain unfulfilled.

Earlier in the week, NUPENG alerted the Federal Government, cautioning against military involvement and urging respect for previously established agreements.

On Thursday, however, a special naval unit allegedly arrived at the Oritsetimeyin rig to forcibly evict workers, prompting NUPENG’s strike warning.

Ajaero decried this development as an affront to worker rights, urging military and government officials to address the issue immediately.

“This unacceptable use of state security forces to intimidate workers undermines democratic values and workplace freedoms,” Ajaero’s statement read.

“The militarization of workplaces only harms our economy and violates the principles of industrial relations.”

NUPENG maintains that the eviction followed workers’ calls for adherence to agreements, including severance benefits discussed during prior meetings mediated by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) and the Department of State Services (DSS).

The NLC’s statement specifically called out companies Dutchford E&P and Selective Marine Services for failing to honor these commitments.

The NLC is urging the Nigerian military, the National Security Adviser, and other key government figures to intervene and prevent further confrontations, emphasizing that industrial issues should not involve the military.

By Uzair Adam

Three prominent oil marketing firms in Nigeria have filed a motion at the Federal High Court in Abuja to prevent Dangote Petroleum Refinery and Petrochemicals FZE from establishing a monopoly within the country’s energy sector.

The companies—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—argued that giving Dangote control over the oil industry could be detrimental to Nigeria’s economy.

Efforts to reach the Group Head of Communications at Dangote Group, Mr. Anthony Chiejina, for comment were unsuccessful, as calls and messages went unanswered.

The oil marketers filed their response after Dangote’s firm challenged the validity of licenses that the marketers had obtained to import refined petroleum products.

Dangote Refinery had initially brought a suit, marked FHC/ABJ/CS/1324/2024, against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Corporation Limited (NNPC), and several oil marketing companies, arguing that it was unnecessary to issue import licenses for refined products, given Dangote’s local production capacity.

The plaintiff claims that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by allowing other companies to import refined products like Automotive Gas Oil (AGO) and Jet-A1 fuel.

Dangote’s suit seeks N100 billion in damages from NMDPRA, asserting that the authority’s actions undermine local production capacity.

Additionally, Dangote requested an injunction to prevent further issuance or renewal of import licenses to these companies.

In their defense, the oil marketers countered that Dangote’s refinery does not produce enough petroleum products to meet Nigeria’s daily demand.

They argued that a monopoly would stifle competition, leading to rising product prices and an increased burden on consumers.

The companies also noted the risks involved if Dangote’s production chain encounters disruptions, potentially plunging Nigeria into an energy crisis.

The defendants highlighted that their import licenses were lawfully issued in compliance with the PIA, the Federal Competition and Consumer Protection Act, and other relevant legislation.

Justice Inyang Ekwo, overseeing the case, has adjourned proceedings to January 20, 2025, for potential out-of-court resolution.

By Uzair Adam

President Bola Ahmed Tinubu has responded sharply to former Vice President Alhaji Atiku Abubakar’s recent criticism of his economic reform agenda.

The Daily Reality reports that the response was conveyed in a statement issued Tuesday by Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy.

Onanuga noted that Atiku’s proposals, which he described as lacking in detail, were already rejected by Nigerians in the 2023 election.

“If he had won the election, we believe he would have plunged Nigeria into a worse situation or run a regime of cronyism,” Onanuga stated.

The statement began, “We have just read a statement credited to former Vice President Alhaji Atiku Abubakar, in which he tried to discredit President Bola Tinubu’s economic reform programmes while pushing his untested agenda as a better alternative.”

It added that Atiku’s defeat in the election was partly due to his commitment to privatizing the NNPC and other national assets, a move perceived as favoring close allies.

“Nigerians have not forgotten this, nor would they be comforted by Atiku’s track record when he managed the economy during President Olusegun Obasanjo’s first term from 1999 to 2003.

“As Vice President, Atiku supervised a questionable privatization program. He and his boss displayed a lack of confidence in our educational system, establishing their own universities while public institutions struggled.”

Onanuga criticized Atiku’s statement as “cheap talk,” suggesting it is easy to criticize without acknowledging the positive outcomes already emerging from Tinubu’s reforms, even amidst temporary challenges.

“Despite his futile attempt to sway Nigerians, it is clear that the former Vice President could not refute the soundness of the reforms pursued by the Tinubu administration.”

He added that Atiku’s call for a gradualist approach reveals a misunderstanding of the severe challenges faced by the Tinubu administration.

“President Tinubu met a country facing several grave challenges. Fuel subsidies were siphoning away enormous resources we could ill afford, and there was criminal manipulation in the forex market. No responsible leader would allow these economic disorders to persist.”

While advocating for gradual reforms may sound appealing, Onanuga asserted that Tinubu has taken decisive actions that should have been implemented years ago, during the administration when Atiku served as Vice President.

In response to Atiku’s call for empathy in governance, Onanuga highlighted that this aligns with Tinubu’s commitment to protecting the most vulnerable.

“President Tinubu has consistently emphasized the need for compassion in his reforms, prioritizing social safety nets and targeted support for those affected by economic transitions,” he added.

By Uzair Adam

The First Lady, Senator Oluremi Tinubu, alongside National Security Adviser Nuhu Ribadu, is set to lead a national prayer initiative aimed at addressing Nigeria’s socio-economic and security challenges.

The prayer session, held in collaboration with Christian and Muslim leaders, seeks divine intervention for the nation under the theme “Seeking the Intervention of God in Nigeria’s Affairs.”

Chief Segun Balogun Afolorunikan, Director General of the National Prayer Forum (NPF), announced the event in Abuja, emphasizing the importance of national unity in overcoming the country’s crises.

He noted that the interfaith gathering is a call for resilience among citizens and a source of inspiration for leaders to find sustainable solutions for Nigeria’s stability.

The week-long prayer sessions will bring Muslims to the National Mosque, where 313 participants will collectively recite the Qur’an 2,191 times, praying for peace.

Concurrently, Christian prayer warriors from various denominations will convene at the National Ecumenical Centre to focus on Nigeria’s ongoing adversities.

NPF leaders have engaged with religious and traditional figures, including the Christian Association of Nigeria and the Sultan of Sokoto, to encourage broad participation.

Organizers express hope that the interfaith prayers will bring a renewed sense of purpose and unity as Nigeria approaches 2025.

“Unity is essential to find lasting solutions,” Afolorunikan said, expressing belief that, with divine guidance, Nigeria’s leaders and citizens can gain the strength to confront shared challenges.

By Sumayyah Auwal Ishaq

Some restaurant and relaxation centre owners in Kaduna complained on Sunday of low patronage, blaming the country’s economic situation for their misfortune. Other food and drink sellers told The Daily Reality in Kaduna that they have been experiencing low patronage since January 2024.

“Business has been very dull since the beginning of the year. We are operating virtually at a loss. Our customers now prefer to stay home because of the economic situation,’’ said Alhaji Umar Sani, an eatery owner at Alkali Road, Kaduna.

Another operator, Mrs Aisha Ibrahim, also blamed the dullness in business activities on the economic situation in the country. “It appears that this government is doing everything possible to make sure that our businesses collapse”. She urged Nigerians to continue to pray for the quick recovery of the economy.

Mrs Hadiza Abubakar, another food seller at the Kasuwan Bacci Market, said she was optimistic that things would be better, but she’s running into so much debt.

“We have some customers who don’t have money to pay for their food and have been coming for years. It is not good to deny food to these customers, so we must them on credit. And the problem is that it takes longer now due to the economic condition.”

A customer who simply identified himself as Alhaji Ibrahim Mai Sauki urged Nigerians to pray for the government so that the nation would overcome its challenges.

When The Daily Reality correspondent visited some popular restaurants in the Kaduna metropolis, such as Barnawa, Unguwar Rimi, and Doka, at 2 p.m., peak business activity time in the afternoon, only a few vehicles were parked, while a good number of chairs were empty. Only a handful of people were seen eating and drinking.

By Uzair Adam

Following the recent enactment of a N70,000 minimum wage for public workers, over 20 states have announced their readiness to implement the new standard.

However, the private sector’s response remains less visible.

Notably, the textile industry has set a new precedent, as the National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) and the Nigeria Textile, Garment, and Tailoring Employers Association (NTGTEA) agreed on a 25% pay increase for the sector’s lowest-paid workers.

Vanguard reports that this adjustment, effective August 1, raises their monthly wage to N75,000.

Meeting under the National Joint Industrial Negotiating Council (NJINC) in Lagos on October 21, 2024, representatives of NUTGTWN and NTGTEA reviewed their sectoral collective bargaining agreement (CBA).

The current agreement includes wage-related allowances such as medical, transport, and food subsidies, aiming to offer better support amid Nigeria’s challenging economic climate.

The NJINC also announced efforts to incorporate clauses from ILO Conventions 190 and 155, reinforcing workplace safety and addressing harassment.

“This year’s negotiation outcome underscores the union’s dedication to a living wage,” stated Peters Godonu and Ali Baba, leaders of NUTGTWN.

Despite the textile sector’s significant challenges, such as rising production costs, smuggling, and insufficient infrastructure, the union expressed appreciation for the cooperation shown by the NTGTEA.

The union also called for government support, urging policies that protect the textile industry and enable it to remain competitive.

With the NJINC’s history of peaceful negotiations and its commitment to social dialogue, leaders stress that a supportive regulatory environment is crucial for the sector’s sustainability and growth.

By Uzair Adam

While Nigerians grapple with economic hardship, Borno State House of Assembly Speaker, Rt. Hon. Abdulkarim Lawan, is urging the Federal Government to replace Vice President Kashim Shettima’s official aircraft, citing safety concerns.

Lawan’s call follows recent technical issues with the Vice President’s plane, including a damaged windscreen during a stopover in New York en route to the Commonwealth Summit.

Despite widespread financial strain affecting millions of Nigerians, Lawan highlighted the risks of Shettima’s continued reliance on the malfunction-prone aircraft, insisting that securing a replacement should be a priority.

His appeal, however, arrives at a time when citizens are facing inflation, fuel costs, and job cuts, sparking questions on the government’s spending priorities amidst nationwide hardship.

By Uzair Adam

The Federal Ministry of Labour and Employment has summoned leaders of the National Assembly chapter of the Parliamentary Staff Association of Nigeria (PASAN) along with aggrieved members following allegations of a N3 billion fund misappropriation.

In a letter signed by Amos Falonipe, Director/Registrar, Department of Trade Union Services and Industrial Relations, the ministry invited PASAN’s leadership and concerned members to address the grievances in a meeting scheduled for tomorrow.

The allegations surfaced earlier this month when PASAN member Yusuf Abiola accused the union’s leadership of misappropriating union funds and demanded audited financial statements from 2019 to date.

Abiola threatened to petition relevant authorities for accountability.

However, PASAN’s National Assembly chapter chairman, Sunday Sabiyyi, and Secretary, David Ann Ebizimoh, dismissed the allegations as defamatory, urging the public to disregard what they described as baseless accusations meant to divert the union from its objectives.

The labour ministry’s letter of invitation, dated October 25, 2024, was directed to the General Secretary of PASAN, signaling its commitment to address the dispute.

By Uzair Adam

Families worldwide are grappling with the effects of high prices, according to the Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva.

Speaking at the IMF/World Bank Annual Meetings in Washington, D.C., Georgieva highlighted the ongoing challenges facing the global economy, which she described as being on a trajectory of slow growth and rising debt.

“The global economy has held up well, and inflation is gradually decreasing thanks to central banks’ coordinated efforts and easing supply chains,” Georgieva said during the Global Policy Agenda 2024 briefing.

“However, people’s optimism about their economic prospects remains low. Families are still hurting from high prices, and global growth remains sluggish.

“We project a 3.2 percent growth rate this year, slowing to an annual 3.1 percent over the next five years,” she added.

According to Georgieva, while trade has traditionally driven economic growth, it is no longer the powerful engine it once was.

The IMF report warned that the world economy risks being trapped in a cycle of lower growth, high debt, reduced government revenues, and constrained resources to support families and climate change initiatives.

The Global Policy Agenda 2024 report further indicated that the global economy is resilient, with a potential for a soft landing as inflation moderates.

However, significant uncertainty looms, with risks skewed to the downside. Public debt levels are at historic highs, projected to approach 100 percent of GDP by 2030, and geoeconomic fragmentation threatens to reverse decades of progress from cross-border economic integration.

The report also points to transformative shifts—such as the green transition, demographic changes, and digitalization, including AI—that present both challenges and opportunities for global economies.

As a response, Georgieva emphasized the importance of a policy shift aimed at escaping the cycle of low growth and high debt.

She called for monetary policies that ensure inflation stabilizes at target levels and fiscal policies that pivot toward consolidation to build resilience and maintain debt sustainability.