Editorial

FG’s N500bn Lifeline For Manufacturers

Published

15 years ago

October 27, 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 this in Kaduna while inaugurating the North West Zonal Campaign Office for the Jonathan-Sambo 2011 Presidential Election, said the bailout 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.

Sambo also said that some locomotives had been procured to boost rail transport services, adding that in order to hasten the actualization 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, politicizing 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.

The Tide also urges 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 manufacturers 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

No To Political Office Holders’ Salary Hike

Published

1 day ago

September 22, 2025

Uchechukwu Okwum

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.

Editorial

No To Political Office Holders’ Salary Hike

Published

1 day ago

September 22, 2025

The Tide

Editorial

Rivers’ Retirees: Matters Arising

Published

2 weeks ago

September 8, 2025

The Tide

The Rivers State Government deserves commendation for the manner in which it conducted the last biometric exercise for pensioners in the state. For the first time in many years, the verification process was not only efficient but also humane, a development that has brought relief to a category of citizens that often bears the brunt of neglect.

Unlike previous verification exercises that left pensioners exhausted and unattended, the latest exercise set a refreshing precedent. Retirees were given proper and sumptuous meals, and in addition, the government paid the sum of N10,000 into their accounts to cushion their transportation costs. Such gestures go a long way in demonstrating that those who had laboured for the state are not forgotten in their twilight years.

The measure was particularly necessary given that some pensioners had to travel long distances to reach their verification centres. For elderly men and women, such journeys come with physical and financial strain. By recognising these realities and easing the burden, the government has shown that pensioners deserve dignity, not disdain.

Beyond this laudable act of consideration, the authorities must reflect on the very structure of pension verification. The era of compelling retirees to be physically present for routine verification should be reconsidered. With digital tools and innovation, the government can adopt systems that capture and confirm data without the stress of physical assembly. This is crucial for pensioners residing in other states or even abroad.

While we acknowledge the importance of verification in cleaning up pension records, we cannot ignore the darker side of the matter. It is regrettable that some allowances continue to be paid to deceased pensioners, with relatives fraudulently collecting the funds. The latest biometrics, thankfully, exposed some of these sharp practices. The exercise, therefore, is not only about order but also about justice.

We urge families of deceased pensioners to be patriotic enough to inform the government of the deaths of their loved ones. It is deeply shameful that in some instances, individuals attempted to impersonate late pensioners during the biometrics. Such behaviour undermines the spirit of honesty and deprives genuine retirees of their due entitlements.

The exercise also revealed another important area of concern: the health of pensioners. It is reassuring to learn that the state government has reportedly promised to take over the medical treatment of some retirees who arrived for the biometrics in critical condition. This is a step in the right direction. Elderly citizens, after years of service, should have access to special health care facilities in the state. Setting aside hospitals or designated centres for the aged is not just desirable but necessary.

While pension payments in Rivers State have remained consistent, attention must now be directed towards gratuities. Senior citizens deserve to receive their retirement benefits without the bureaucratic hitches that have often marred the process. After years of loyal service, nothing is more demoralising than to see retirees languish for want of their gratuities. Every worker, as Scripture reminds us, is worthy of his wage.

Retirement, in any civilised society, should not be reduced to a sentence of suffering. In dealing with pensioners, government must consistently wear a human face. The humane manner displayed during this verification exercise should not be a one-off. It must become the norm in all dealings with retirees. Measures must continually be put in place to ensure that they do not feel abandoned by the state they served.

One welcome innovation has already been introduced. The Sole Administrator of Rivers State, Vice Admiral (Rtd) Ibok-Ete Ekwe Ibas, has altered the method of gratuity payment. Pensioners now receive their monies directly into their bank accounts, eliminating the cheque-based system that for years served as fertile ground for corruption. This reform is both pragmatic and forward-looking. Similarly, the implementation of the N32,000 pension harmonisation is also commendable.

Direct payments gratuities ensure transparency and drastically reduce the possibility of diversion of funds. More importantly, they restore confidence in the system and assure pensioners that their entitlements will reach them without interference. In this way, the government has not only safeguarded the process but also upheld the principle of accountability.

Seamless gratuity payment has a ripple effect on the workforce as a whole. When workers are confident that retirement will not plunge them into hardship, the temptation to falsify age in order to remain in service is eliminated. Such reforms, therefore, enhance efficiency, honesty, and productivity in the public service.

In sum, the Rivers State Government has struck a refreshing chord in its handling of pension verification. It has shown empathy, innovation, and accountability. However, the momentum must be sustained, and the focus must shift towards modernising verification methods and prioritising retirees’ welfare in health, gratuity, and dignity.

When retirees are treated with compassion and fairness, the message to those still in service is clear: faithful service to the state will not go unrewarded. The humane verification exercise, though a single event, offers a hopeful glimpse of what governance can look like when people, especially the elderly, are placed at the heart of policy.