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Nigeria’s Economy On Brink Of Collapse, NECA Alerts

Published

3 years ago

August 8, 2022

The Nigeria Employers’ Consultative Association, NECA, Sunday in Lagos, raised the alarm that the nation’s economy is on the brink of collapse, warning that spiralling inflation, rising energy cost (scarcity of FOREX, the dwindling value of the Naira among others, are bleeding the economy.
Speaking in Lagos, the Director-General, DG, of NECA, Mr Wale Oyerinde lamented that the economy is under the weight of an almost comatose aviation sector, stuttering education system, rising debt, depleting Foreign Reserve and rising fuel subsidy expenses among others.
The newly appointed D-G of NECA advised the federal government to employ a holistic and multi-pronged approach toward resolving the challenges faced by the nation.
According to him, “The nation is currently faced with multiple challenges. With a dire combination of spiralling inflation, rising energy costs (aviation fuel, diesel, etc.), scarcity of FOREX, dwindling value of the Naira and an almost comatose Aviation sector. Also, with a stuttering education system, rising debt, depleting Foreign Reserve and rising fuel subsidy expenses among others, that threatens to lay bare the country’s economy, there is no better time for Government to reappraise current economic policies and deepen its engagement with the Organized Private Sector. While Government’s effort to salvage the economy is commendable, there is, however, a need for a more holistic approach to resuscitate the stuttering economy.
“Being dependent on Crude oil for about 90 per cent of its Foreign Exchange earnings and 80 per cent of its budgetary revenues, Nigeria has always lived dangerously on the precipice, with a major chunk of its revenue dependent on the complexities of global Crude demand and supply. A dangerous blend of self-destructive tendencies, insecurity and fiscal and monetary policy inconsistencies have also conspired to make the situation worse. While revenue continues to shrink, the nation continues to dig its feet deeper into debt.
“At different times over the past few years, various international bodies including the World Bank, International Monetary Fund and the World Trade Organization have warned about the excessive nature of the country’s borrowing. While some Stakeholders have canvassed that the revenue to GDP ratio of the country is healthy, a recent announcement by the Minister of Finance, Budget and National Planning that the revenue to debt service ratio is in the negative calls for urgent concern.
“In April, the World Bank warned that the rising cost of fuel subsidy could significantly impact public finance and pose debt sustainability concerns. Alas, this projection is almost happening. The Fiscal Performance Report released recently by the Federal Government confirmed the accuracy of these projections. The combination of a struggling aviation sector and roads taken over by bandits have also conspired to fuel the situation, leading to rising inflation at 18.6% (according to the NBS). These have continued to worsen the promotion of Commerce and the increase the rate of de-industrialization of some regions of the country.”
The DG of the umbrella body for employers in the country, while recommending how to deal with the multi-face challenges, called for “a deliberate and economic priority influenced approach and wide consultation with Stakeholders should commence, with the view of harvesting alternative policy options to re-energize all sectors of the economy. While the challenges of revenue shortage are acknowledged, burdening businesses with new taxes or levies will be counter-productive and self-destructive action. Over-burdening already burdened businesses will only lead to business closure and an escalation of job losses with consequential effects on our social and economic stability. Government should, in the short-term widen the tax net, reduce wastages in governance, and focus on economic projects that will stimulate the Nigerian economy and guarantee an enabling environment for businesses to operate. An enabling environment for local businesses will create the platform for new foreign direct investment, which could increase FOREX inflow into the country.
“In the medium term, the Federal Government should, as a matter of urgency, fix the four national refineries and encourage the development of Modular ones as a precursor to total removal of fuel subsidy. With over N5trillion budgeted for subsidy payment in 2022, an amount larger than the budget for education and agriculture, this is unrealistic and unsustainable. Economic interventions aimed at improving living standards (to stimulate consumption) and Enterprise sustainability (to promote job creation) should be implemented. While FOREX scarcity persists, allocation of the available FOREX to manufacturing and other productive sectors of the economy should be given priority.”

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Bring Your Wealth Of Experience To Governance, Ibas Tasks New SSG

Published

3 weeks ago

March 28, 2025

The Tide

The Sole Administrator of Rivers State, Vice Admiral Ibok Ete Ekwe Ibas (rtd), has charged the new Secretary to the State Government (SSG), Prof Ibibia Lucky Worika to bring his wealth of experience to bear in governance of the State.

Vice Admiral Ibas (rtd) gave the charge shortly after swearing in the new SSG at the executive chambers of Government House on Wednesday night.

The Administrator who congratulated Prof Worika on his appointment said the choice was not merely an administrative decision but a statement of intent.

Vice Admiral Ibas (rtd) explained that the new SSG has an unparallel expertise in law, policy and international governance, which align perfectly with the mission to restore law, order, integrity and public trust in Rivers State.

He said: “To our new SSG, the task ahead is onerous, but your track record leaves no doubt in our minds that you will prove your mettle. Rivers State needs your intellect, grit and unweaving dedication. Together, we will write a new chapter of progress for this great state.

“Prof Worika’s role will be critical in driving this vision, ensuring that every policy, every decision and every action is in consonance with this administration’s mandate to restore law and order, stabilize the polity and to create the necessary conditions for the restoration of democratic institutions and representations.”

Vice Admiral Ibas (rtd) pointed to his maiden address to Rivers people wherein he emphasised that his administration will be committed to delivering an effective governance that is anchored on transparency, accountability and service.

He therefore, enjoined the new SSG to brace up to the demands of his office, and offer his best service as required while also working cooperatively with civil servants.

Vice Admiral Ibas (rtd) said: “You have no time to settle down. You must roll up your sleeves and get to work with the team.

“Our civil servants with whom we will work closely to run this administration are critical stakeholders and we must work with them to ensure that the state continues to function effectively during this administration.

“To the Permanent Secretaries and civil servants as a whole, once more I will ask your kind cooperation and support as we work to achieve our objectives at this time,” he added.

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I Am One Of You, Sole Administrator Tells Rivers People …Warns Against Violence, Crude Oil Sabotage

Published

4 weeks ago

March 21, 2025

The Tide

The Sole Administrator of Rivers State, Retired Vice Admiral Ibok-Ete Ibas (rtd), has assured residents that he is not in the State as a partisan actor or political competitor but as a stabilising force to restore governance and order.
In a state broadcast yesterday, Ibas, who assumed duty at Government House, Port Harcourt, emphasised his commitment to protecting civil liberties and ensuring the safety of all citizens.
However, he issued a stern warning against crude oil sabotage and violence, urging residents to resist any temptation to return to past hostilities.
“For decades, I have dedicated my life to the service of our great nation—first as the 20th indigenous Chief of Naval Staff and later as Nigeria’s High Commissioner to Ghana. I answered this call out of the need for peace in Nigeria, and most importantly, in Rivers State,” Ibas stated.
Describing the prolonged political impasse as a major setback to governance and democracy, he acknowledged the hardships faced by families and businesses due to the prevailing uncertainty.
“As a son of the Niger Delta, I am one of you. I feel the weight of this crisis on families, businesses, and the future of our people,” he said.
Ibas commended President Bola Tinubu’s decisive action in declaring a state of emergency in Rivers State, stressing that it was a necessary move to restore stability and revive economic activities.
“My mandate is clear: restore law and order, ensure stability, and create an enabling environment for economic growth. But this mission requires collective support from all stakeholders, regardless of political affiliation or ethnicity,” he stated.
He discouraged attacks on oil infrastructure, reminding residents of the devastating environmental and economic consequences of such actions.
“The Niger Delta has moved beyond the destruction of oil facilities. We must resist the temptation to return to those ugly days,” he cautioned.
While pledging to uphold civil liberties and the rule of law, the Sole Administrator warned that lawlessness and violence would not be tolerated.
“We will not act arbitrarily, but we will not hesitate to deal decisively with anyone who threatens the peace and stability of Rivers State,” he declared.
Ibas revealed that he had concluded a State Security Council meeting where strategic measures were outlined to de-escalate tensions and prevent further conflict.
Expressing gratitude to President Tinubu for entrusting him with the responsibility, he also acknowledged the National Assembly for approving the emergency declaration.
“I will work closely with the national leadership under the guidance of the President. I am optimistic that Rivers State will emerge stronger and greater,” he concluded.

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Abuja Truck Explosion Death Toll Rises To 10 …As Another Truck Crashes On Same Spot

Published

4 weeks ago

March 21, 2025

The Tide

The Federal Capital Territory Emergency Management Department has confirmed that 10 persons have died in the truck explosion that occurred near Karu bridge, along the Abuja-Keffi Expressway, on Wednesday.

The FEMD’s Head of Public Affairs, Nkechi Isa, confirmed the numbers in a statement, yesterday.

The Acting Director General of the Emergency Department, Abdulrahman Mohammed, had earlier confirmed that eight persons had died as of yesterday morning, with five confirmed dead on the scene, and four others burnt beyond recognition.

““Five people were taken dead from the scene yesterday (Wednesday). Out of the people that were injured, one died, making six. Then this morning (yesterday), when I asked my people to go round, they discovered that two had already died again, making eight. Four of them from yesterday were burnt beyond recognition.”, he explained.

However, in her statement, Isa said the Head, Forecasting Response and Mitigation of FEMD, Mr Mark Nyam, said eight bodies were deposited at the Karu Hospital Morgue, one body at the Asokoro Distinct Hospital Morgue while another body was deposited at the National Hospital.

He added that some victims had been referred to the Gwagwalada Teaching Hospital, Federal Medical Centre, Keffi, and Cedercrest Hospital Abuja for proper care.

Part of the statement reads, “The FCT Emergency Management Department FEMD can confirm that 10 persons lost their lives to the truck explosion that occurred at Karu bridge along Abuja / Keffi expressway.

“The Head Forecasting Response and Mitigation of FEMD, Mr Mark Nyam said eight bodies were deposited at the Karu Hospital Morgue, one body at the Asokoro Distinct Hospital Morgue while another body was deposited at the National Hospital.”

He informed that over 30 persons suffered various degrees of burns.

“Some of the victims have been referred to Gwagwalada Teaching Hospital, Federal Medical Centre,Keffi and Cedercrest Hospital Abuja for proper care,” he said.

Isa also stated that no fewer than 10 vehicles were burnt during the incident, adding that the FEMD boss after a visit to the incident scene, appealed to motorists to observe traffic rules and regulations.

He also cautioned against reckless driving, dangerous overtaking and poor maintenance of vehicles, while urging FCT residents to always use the 112 emergency toll free number in the event of an emergency.

Meanwhile, barely 24 hours after the incident, another fertiliser-laden truck has collapsed on the same spot.

The Tide learnt that the incidence occurred at about 3:54pm yesterday.

The Head of Public Affairs of the FCT Emergency Management Department, Nkechi Isa, confirmed the accident in a statement, stating that the truck collided with a Hijet and a dump truck, adding that no life was lost.

She cautioned road users to drive with caution as the Federal Road Safety Corps was making efforts to tow away the affected vehicles, to avoid traffic built up.

“Another accident has occurred under Karu bridge along the Abuja-Keffi Expressway. Thankfully, no life was lost to the incident. Our Search and Rescue say the accident occurred when a truck laden with fertilizer ran into a Hijet and a dump truck also known as tipper.

“Motorists are advised to drive with caution as the Federal Road Safety Corps is taking steps to tow away the affected vehicles in order to avoid traffic built up,” the statement read.

Meanwhile, several videos showed some persons trying to clear the fertiliser bags from the fallen truck to ease traffic.