Editorial

FG’s N500bn Lifeline For Manufacturers

Published

15 years ago

October 18, 2010

Recently, the Federal Government approved N500billion lifeline for the manufacturing sector to enable key players reactivate moribund and ailing industries. The step is in response to the cries by investors in employment spinning sector of the Nigerian economy for financial aid.

Vice President Mohammed Namadi Sambo, who announced the gesture penultimate Saturday in Kaduna while inaugurating the North West Zonal Campaign Office for the Jonathan-Sambo 2011 Presidential Election, said the bail-out was part of the administration’s efforts to fast track the country’s economic development intended for creating employment opportunities for the youths and women. The vice president disclosed that out of the N500billion, N100billion has been reserved for the textile industry. He stressed that, government has already disbursed N40billion of that amount to some investors in the textile sub-sector.

Vice President Sambo also said that some locomotives had been procured to boost rail transport services, adding that in order to hasten the actualisation of the dream, work has commenced on the rehabilitation and reconstruction of the Kaduna-Abuja and Lagos-Ibadan fast train tracks while the dredging of River Niger, aimed at extending shipping services to the northern part of Nigeria will soon be completed. He acknowledged the vital role efficient electricity supply plays in promoting and sustaining industrialization, and stated that government was working hard to ensure steady power supply in the country.

While The Tide commends government’s bold step in granting the N500billion bailout to the manufacturing sector, we are inclined to caution that the underlying objective of the gesture may be misconstrued. Our position hinges on the fact that such a strategic government decision should have been unveiled at a forum for manufacturers and investors within the business community. The choice of a political gathering to inform the right beneficiaries of the aid is to us, politicising a worthy venture. We, therefore, hope that it is not an empty carrot dangled on manufacturers, and that government would live up to its promises in this regard.

We say so because time has come for government to frontally address the mountain of problems impeding the industrialization process of this nation, and thus, reduce the incidence of violence, insecurity and criminality in the land. This is because the failure of the manufacturing sector to break even and drive the economy is the principal reason for the weakening of the entire economic fabric of the country. This has not happened in a void.

The main reason for the weak contribution of the manufacturing sector to the Gross Domestic Product (GDP) is the comatose state of the power sector leading to lack of electricity supply to both domestic and industrial consumers. Another factor is the failure of the entire land transport system, particularly rail and road services. These have forced virtually all industries to close shop due to high cost of production, low capacity utilization, weak returns on investments, among others. The result is the high rate of unemployment, increased incidence of poverty, poor health condition and rising death rate, frightening crimes and social vices, insecurity and violence, and heightened illiteracy.

We regret to note that although the country is rated the third fastest growing economy in the world, most manufacturing concerns hitherto doing business in Nigeria have relocated to neighbouring African countries due to high operating costs. In fact, some of these neighbouring countries have recently celebrated a decade of constant electricity supply to their citizens, even when such nations get most of their power supplies from Nigeria. A situation where Nigerians spend trillions of Naira annually to provide private power generating services for themselves does not give signs of a nation desperate to move forward and place itself as one of the 20 best economies by 2020.

The Tide, therefore, challenges the Federal Government to show serious commitment to reverse this ugly trend by first guaranteeing uninterrupted power supply to Nigerians, and make rail and road transport system serve Nigerians, painlessly, again. It must also guarantee the security and safety of all citizens and investments.

The Tide reckons that the government has commenced the reconstruction of the Lagos-Ibadan and Kaduna-Abuja rail tracks to facilitate accessible and affordable transport services in the affected areas, just as it would soon deliver easy access to marine vessels conveying goods to the North through the River Niger. It, however, tasks the Federal Government to take immediate steps to put the Port Harcourt-Aba-Enugu-Lokoja rail track into effective use to allow manufacturers in this part of the country to evacuate goods from their warehouses without stress. In addition, the Jonathan government must deliver, as quickly as possible; a completely dualised East-West Road, rehabilitate both the Port Harcourt-Enugu Road and the Lagos-Shagamu-Ore-Benin Road while work on the dredging of the Warri, Koko, Port Harcourt and Calabar ports must be completed.

Equally vital is the need for the government to ensure that genuine manufacturers have easy access to the bailout fund, and put in place a monitoring framework to ensure strict utilization of the money for the revamping of existing but ailing factories. In fact, we insist that government must create the enabling environment for beneficiaries to broaden the employment template, make returns on investments, while further contributing to the vibrancy and regeneration of the nation’s economy.

This is the only way to justify the huge bailout fund doled out from Nigerian taxpayers’ sweat. This is our stand!

Editorial

Charge Before New Rivers Council Helmsmen

Published

4 days ago

September 29, 2025

The Tide

On the 30th of August, Rivers people trooped out to participate in local government elections conducted across the state. These elections, which produced new chairmen and councillors for the 23 local government areas (LGAs), were organised by the Rivers State Independent Electoral Commission (RSIEC). The exercise has ushered in a new crop of grassroots leaders whose shoulders now bear the responsibility of steering the affairs of their respective councils. With the polls concluded and winners duly announced, the time has come for the newly elected officials to roll up their sleeves and begin the hard work of governance.

According to the results declared by RSIEC, the All Progressives Congress (APC) secured a dominant lead, winning chairmanship seats in 20 of the 23 local government councils, while the Peoples Democratic Party (PDP) clinched the remaining three. This outcome not only reflects the current political dynamics in the state but also places a significant weight of expectation on the shoulders of the APC-led councils to justify the confidence reposed in them by the electorate. It is imperative that political rhetoric now gives way to tangible development, especially at the grassroots level where government is felt most directly.

Following the elections, the successful chairmen were officially sworn into office by the former Sole Administrator of Rivers State, Vice Admiral (rtd) Ibok-Ete Ekwe Ibas. The solemn ceremony marked a transition from campaign promises to the reality of public service. With their inauguration complete, the time for celebration has ended; the time for delivery has commenced. The electorate now awaits meaningful action that reflects the hopes and aspirations of the voting public.

As helmsmen of their various LGAs, these leaders must quickly settle down to work. Their constituents expect them to provide direction, formulate policies, and execute programmes that will uplift communities long neglected. The local government tier is closest to the people and, as such, must rise above politicking to meet the everyday needs of the citizenry. It is not enough to occupy office; they must make their impact visibly and positively felt across their domains.

The Supreme Court ruling mandating direct allocation of funds to local governments—although not yet fully implemented—is a welcome development that underscores the autonomy of the third tier of government. Once this is operationalised, the excuses often cited for underperformance will no longer hold water. With funds directly accessed from the Federation Account, council administrations will be better empowered to meet the developmental needs of their localities, if only they manage resources judiciously and prioritise the right projects.

The onus is now on the chairmen to contribute meaningfully to the broader development of Rivers State. The state government cannot and should not be expected to do everything. Local government councils have defined responsibilities—ranging from rural infrastructure, primary healthcare, and basic education to waste management and local security—that must be adequately addressed. It is high time they stopped passing the buck and started acting as the elected leaders they are.

We extend our congratulations to all who emerged victorious in the elections. However, with this victory comes great responsibility. It is no longer about party affiliations or electoral campaigns; it is about governance. The chairmen must launch people-centred projects that will genuinely improve the lives of the rural populace—projects in water supply, road maintenance, school renovation, and youth empowerment, among others. Let their tenure be remembered for its impact, not its slogans.

Central to their mandate should be the welfare of workers. Council employees form the engine room of local governance, and their morale significantly affects service delivery. The new chairmen must ensure regular payment of salaries, staff training, and a conducive working environment. Neglecting this vital aspect will only hinder whatever grand plans they may have for their LGAs.

It is also essential to institute a robust peer review mechanism. The new LG officials should not operate in isolation; rather, they should learn from one another, share ideas, and compete constructively in a bid to outperform each other in service delivery. Healthy competition among council areas will drive innovation and foster accelerated development. Such a system will also help the public identify high-performing councils for emulation.

Given the typically short tenure of council administrations, it is crucial that they focus on projects that are realistic and impactful. Time and resources should not be wasted on white elephant ventures that are neither sustainable nor beneficial to the people. Instead, chairmen should pursue programmes that match their timelines and address immediate community needs.

Peace and security must remain a cardinal objective for all council steersmen. Regardless of who facilitated their election or what political loyalties they hold, they must ensure peace reigns in their areas. Development cannot thrive in an atmosphere of tension and distrust. These leaders must work closely with traditional rulers, youth groups, and civil society organisations to maintain law and order.

A critical understanding must also prevail—that chairmen are leaders of the people, not just leaders of political parties. They must conduct themselves as impartial administrators serving all constituents, irrespective of political affiliations. Additionally, they must work harmoniously with the state governor, who remains the leader of the state. Petty rivalries and political infighting serve no purpose in the development agenda.

Now that the elections are over and governance has begun, it is essential for these chairmen and councillors to adopt an inclusive approach. They must carry everyone along—party members and opposition alike—in their development plans. Creating division or playing favourites will only fracture communities and stall progress. Leadership at the grassroots demands fairness, equity, and a listening ear.

Rivers people have played their part by coming out to vote. The baton has now been passed to the new council helmsmen. They must seize the opportunity to leave lasting legacies in their communities. History will not judge them by the number of rallies they held or the speeches they gave, but by the quality of life they brought to their people. Let them not squander this moment.

Editorial

No To Political Office Holders’ Salary Hike

Published

1 week ago

September 22, 2025

The Tide

Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.

What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.

It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.

According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.

The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?

In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.

We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.

The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.

Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.

Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.

Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.

This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.