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FG, States can not pay salaries beyond June 2023 without removing fuel subsidy, printing money—Obaseki

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3 years ago

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The Edo State Governor, Mr. Godwin Obaseki has warned that the Federal and State governments may not be able to pay workers’ salaries beyond June 2023 without resorting to massively printing money or removing fuel subsidy. Obaseki said this while delivering his address during the 2023 May Day celebration with the theme, “Workers’ rights and socio-economic justice,” held at the Samuel Ogbemudia Stadium, in Benin City. Dignitaries at the event include the Edo State Deputy Governor, Rt. Hon. Comrade Philip Shaibu; Secretary to Edo State Government, Osarodion Ogie Esq.; Edo State Head of Service, Anthony Okungbowa Esq.; Chief of Staff to the Governor, Hon. Osaigbovo Iyoha; Speaker, Edo State House of Assembly, Rt. Hon. Marcus Onobun, and the Chief Judge of Edo State, Hon. Justice Itsebaga Acha, amongst others.

The governor, who reassured that his government will sustain reforms and projects to improve the welfare of workers and ensure better livelihoods for Edo people, urged the workers in the country to shift from the tradition of reacting when policies that affect them have already been made but take charge and ensure full transparency and accountability of government’s policies and programmes. Obaseki said, “it would be a miracle for the federal government and state governments to pay salaries beyond June this year without resorting to massively printing money or removing fuel subsidy. Either of these decisions will bring more hardship and pain to Nigerians, particularly workers. “We must all make sure that the burden and pain of these measures, which must be taken, are not carried by workers alone. Workers must now rise and ensure that they champion any discussion on subsidy removal. You must shift from the tradition of reacting when these policies have been made but insist that you take charge and ensure full transparency and disclosure. If we are all undertaking a reform, then the benefits and pains that will come out of the reforms must be mutually shared by all Nigerians, not just the downtrodden.”

Reaffirming his government’s commitment to the welfare of workers in the state, Obaseki noted, “I am proud to say that Edo workers are currently the best-paid workers in Nigeria. When we announced the increment of the minimum wage to N40,000 at this venue last year, I expected that the Federal Government and other state governments would follow suit immediately but I am surprised that it has taken them one year already. “My promise to Edo workers here today is that the day the federal government is able to pay its new minimum wage and hand over a cheque to any federal worker, that day, we will match the federal government and do the same for state workers. As your governor, I will ensure that workers are fairly treated so that your take-home pay can really take you home. Our government has kept faith with prompt and regular payment of staff salaries and retirees’ benefits in the State in the last six years. As a tradition, salaries are paid latest on the 26th day of every month and for any holiday celebrations, our workers are paid before the celebration so that they have money to celebrate.”

He added, “we currently do not owe arrears of promotion in Edo State because I have approved the promotion of all staff for 2022 which I believe will boost the morale of staff and the performance of our workers.” Hailing the workers’ contributions to the growth and development of the state, the governor stated, “Our vision is to make Edo State the best place to work and live in Nigeria. I appreciate the sacrifices of our workers and their unwavering dedication and zeal as these have led to the growth and development of our dear State in the last six years despite the difficulty suffered following the poor management of the nation by the Federal Government. Our workers are the unsung heroes of society and the engine that powers our economy and we will continue to prioritise your welfare. This is why we will continue to embark on a series of reforms to boost your morale and productivity, ensuring the right incentives and enabling the environment to deliver quality service to Edo people. This is in addition to the reforms we have embarked on in education, healthcare, technology, economy, agriculture, and many other sectors.”

He further said “we are investing in Infrastructure to provide our workers with a modern, more equipped, and dignified work environment to enable them to become more productive and deliver quality service to our people. We are installing fiber optic cables across all local governments so that government offices will now have internet connection. The John Odigie Oyegun Service Academy is the best in Africa and is being effectively used daily to train our workers to make them the best in Africa. We have removed all processes of interference with our recruitment exercise to ensure that the recruitment process is free, fair, and merit-based. We have also kicked off the policy to ensure that any student of Edo extraction who makes a first class in any University in Nigeria is given an opportunity for automatic employment into the state’s civil and public service as we want the best.” 

The governor charged, “I appeal to workers to ensure they register in the health insurance scheme and utilise it effectively.” On his part, the Minister of Labour and Productivity, Dr. Chris Ngige, represented by State Coordinator, Ministry of Labour and Employment, Dr. Mrs. Florence Owie said, “Only a few employees are aware that workers have rights in their workplaces. The Federal Ministry of Labour will continue to implement labour laws to ensure peace between employee and their employers.” Chairman of the Edo State’s chapter of the Nigeria Labour Congress, Chief Odion Olaiye hailed the governor for prioritising the welfare of the workers, commending his developmental strides across all sectors of the state’s economy. Also, the Acting Chairman of Trade Union Congress (TUC), Edo State Chapter, Comrade Charles Momoh thanked the governor for the Edo Health Insurance Scheme, noting that Edo workers are enjoying affordable and quality healthcare services under this administration.

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Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

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1 day ago

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December 5, 2025

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The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

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Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

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2 days ago

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December 4, 2025

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Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

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Economy

CBN hikes interest on treasury Bills above inflation rate

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2 days ago

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December 4, 2025

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The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

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