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Nigerian Governors Forum
Following President Bola Tinubu’s signing of the N70,000 Minimum Wage Law, some state governors have set up implementation committees on the new pay.
However, others have resolved to wait for the Nigeria Governors Forum (NGF’s) position, just as some said they could pay without retrenching workers.
For instance, in Kwara State, Governor AbdulRahman AbdulRazaq has approved the constitution of a tripartite committee to work out the consequential adjustment component for other categories of workers.
“This comes as a new national minimum wage has been pegged at N70,000, triggering a need for consequential adjustments for senior cadres of workers in the state,” the governor’s chief press secretary, Rafiu Ajakaye, said.
The committee comprises representatives from the state government, the labour centres, and the organised private sector.
It Is chaired by the Head of Service and co-chaired by the commissioner for finance, while the director (Establishment and Pension) is the secretary.
Other members of the committee are the commissioners for budget and planning, works and transport, local government and chieftaincy affairs, and Communications; the senior adviser and counsellor to the governor; the permanent secretaries (Finance, Service Welfare, Justice); and the senior special assistant to the governor on labour matters.
Apart from the federal controller on labour and employment, the sector is represented on the committee by the chairman of the Nigeria Labour Congress, the chairman of the Trade Union Congress (TUC), the chairman of the Joint Negotiation Council (JNC), the chairman of COHESU, and the secretary of the JNC.
The Kwara Chamber of Commerce (KWACCIMA), the Manufacturers Association of Nigeria (MAN), and the Nigerian Association of Small and Medium Enterprises represent the private sector.
On the cost implications of implementing the new minimum wage, a top government official said, “We need to wait for the report of the tripartite committee set up by the governor to know the details of what it will cost the government to implement the new minimum wage for its workers.”
In Plateau State, the commissioner for information and communication, Hon. Musa Ashoms, told our correspondent that those who know the state’s financial status are seriously examining the situation to ascertain whether the State government will be able to pay the new minimum wage.
He said, “If we can pay or there is contrary reason, the state government will engage the general public or civil servants to inform them about it.
When asked about the state’s salary expenditure when the minimum wage was pegged to N30,000, Ashoms said the state spent N2.9 billion monthly as of then.
He also explained that increasing the minimum wage to N70,000 would cost N5.9 billion monthly.
The commissioner further hinted that the state’s monthly allocation from the federation account is N7 billion.
Ashoms said ultimately, what remains is just N2 billion, which will not be able to service other projects or payments of counterpart funding, among other things.
He also disclosed that the state government is not considering retrenchment, adding, ‘’As it stands today, it is currently conducting recruitment exercises in government-owned tertiary institutions and MDAs.
The Imo State government says it is willing to pay the N70,000, according to the commissioner for information, Hon. Declan Emelumba, while interacting with LEADERSHIP Weekend.
He said they had established a mechanism to shore up funds for implementing the new minimum wage.
According to him, the total emolument of workers’ salaries fluctuates regularly due to promotions and retirement.
Emelumba highlightedthat as a responsible and responsive government, they don’t intend to retrench workers but rather motivate them for optimal productivity.
The Zamfara State government says the adoption of a new minimum wage can only be decided after a meeting of the state governors.
The director-general (DG) of media and communications in Government House, Gusau Malam Nuhu Salihu Anka, told LEADERSHIP Weekend in a telephone interview that Zamfara recently adopted and signed into law the N30,000 minimum wage and started payment in June.
“The decision of whether to adopt the N70,000 minimum wage for the respective states in the country can be revealed only after the governors’ meeting, which is expected to be held soon,” he said.
On the issue of the cumulative amount spent on salaries, he said there is no specific amount, but sometimes most of the monthly allocations received from the federal allocation go on salary payments.
Governor Nasir Idris has said that Kebbi State is still waiting for a response from the Nigeria Governors’ Forum on implementing the new wage.
He assured workers In the state that he is ready to implement whatever the federal government decides.
LEADERSHIP WEEKEND gathered that before this development, the government spent over N 1 billion on payment of salaries monthly.
However, if the new wage of N70,000 is implemented, the state may have to request additional federal subvention to meet the desired demand, he said.
Ekiti State government has expressed readiness to pay the new wage.
The information commissioner, Hon. Taiwo Olatunbosun, who stated this while speaking with LEADERSHIP in Ado Ekiti, said Governor Biodun Oyebanji, would not disappoint Ekiti workers on the issue of the new wage.
“He had not disappointed them, particularly in ensuring the welfare, wellness, and well-being of the entire state population and the workforce. I believe that discussions, consultations, and many other interfaces are ongoing among the stakeholders at the national and sub-national levels,” he said.
On whether the state needs more federal allocation to pay the new wage, he said, “Every government all over the world can only achieve much with the availability of resources, and I believe resources to meet the needs of the people can never be enough.”
He said that is why the government of Ekiti is working assiduously to develop the state so that it can generate resources without burdening the people.
“Whether we like it or not, we would wish we had more resources, and we are working around that , and that is why the state is collaborating with develop partners for the development of our agricultural interventions,variables that will attract the youths to participate more, support the businesses of micro, small and medium enterprise businesses so that the economy of the state, particularly in the area of agriculture products to make food available to the people and to attract investors to the state.
“All these are geared towards ensuring that the economy is improved and to generate additional resources apart from what we get from the federation account.
“I believe the governors at the Federal Economic Council (FEC) and at the Nigeria Governors’ Forum (NGF) are discussing various issues, and I am very sure that having more resources will be one of those things they will be discussing. But Ekiti is working towards having more resources, and it won’t be a bad situation to have more of them.”
He said the state government would not retrench workers because of the new minimum wage.
Taraba State Governor Agbu Kefas said he is ready to pay any salary the federal government settles on for civil servants.
“I am ready to pay whatever minimum wage bill the federal government signs into law for civil servants. Kefas stated. (LEADERSHIP)
Things Tinubu should do to end protests – Northern elders, economists, lawyers
Economic and financial experts have listed what the Bola Tinubu administration should do immediately to bring to an end the on-going nationwide protests.
In separate chats with Saturday Sun, the experts recommended that the government subsidise cost of food items, reduce the cost of governance, and ensure greater transparency in the distribution of palliatives, among other measures, to alleviate citizens’ concerns and prevent further damage.
The 10-day planned protest which began on Thursday, primarily against rising cost of living and hunger, has escalated to violence, destruction of property and loss of lives in many parts of the nation.
An economist and development expert, Aliyu ilias, said: “I think first and foremost, President Bola Tinubu should address the country. He should come up with a template of what he wants to achieve in the next one year, especially the provision of CNG. Most people are shouting hunger. It is because of the cost of transportation. If he cannot bring back fuel subsidies, he must make sure that a workable template for CNG buses is in place and all the state governors must come out and explain what they will use the money from federal government allocations to do.
“Tinubu should also rejig his cabinet by reappointing a minister of Humanitarian Affairs and also removing ministers that are not functioning well. There must be a correct template to serve Nigeria. If not, this will turn into a revolution and there is nothing he would be able to do about it.”
Prof. Femi Saibu, a lecturer in the Department of Economics at the University of Lagos, said that it is not enough for the government to simply provide palliatives; it must also ensure that these resources reach those who genuinely need them.
Saibu pointed out the existing gap between government expenditures and their actual impact on the populace, noting that it is important to flush out political intermediaries who continue to hijack public interventions for their own gain.
According to him, “It is like the more the government spends, the more the people complain of poverty or hardship. So it means the middlemen between the masses and the government are actually not allowing those things to trickle down. The Federal Government pays state governments billions of naira to alleviate the sufferings of people. Most of these people hold on to these monies while people are feeling pains and the government is having empty purses.”
He further advocated for more investment in basic infrastructure that will help improve the lives of citizens.
“Rather than giving cash to people, the government should provide basic things that people need. For instance, the government should spend heavily on health facilities, spend heavily on education, and invest directly in agriculture.
“Today the government said it has paid a lot of money to people as palliatives, but we have not seen anybody claiming they got the money. They said they gave each state several millions of bags of rice. Have you seen the bag of rice in anybody’s house?”
The economist advised the federal government to devise a new means of doing things. He said the federal government should use leaders of local communities to reach the people instead of state governors. On his part, Economic Consultant at Dynamo Consulting, Brume Nikoro asked elected leaders to cut down government wastage.He recommended empowering small scale Industries and start-ups with interest free loans and encouraging the Agricultural and Technology industries with programmes and initiatives.
In his view, lawyer and rights activist, Kabiru Akingboolu said the police authorities should ensure their personnel handle protests with civility.
He emphasized that the current widespread hardship across the country calls for a government response that goes beyond mere rhetoric.
According to Akingboolu, the government must address the nation with concrete actions to alleviate economic difficulties and prevent further unrest. He said government should also invest significantly in agriculture to boost food production. He also cautioned that prolonged protests could escalate, referencing the #EndSARS movement as a lesson in managing civil unrest.
In support, lawyer and rights activist Maduka Onwukeme added, “The government should address the protesters’ key concerns, particularly the issues of widespread hunger and inflation. Meeting these demands could lead many genuine protesters to leave the streets. Hunger fuels unrest, and negotiating with a hungry population is impractical. Effective measures to tackle these issues are crucial.”
Northern elders in a press statement signed by Prof Usman Yusuf, Hajia Najatu Muhammad, Mallam Salihu Lukman; and Dr. Umar Ardo, said the government should be pragmatic in its approach to the resolution of the crisis to amicably resolveand mitigate the risks associated with mass protests.
The elders asked the government to identify and directly engage with the youth leaders and protesters to understand and address their grievances.
They told the government to sincerely address the demands of the protesters by implementing meaningful reforms, demonstrating goodwill and a commitment to change by investing in youth development programmes, education, innovation, entrepreneurship initiatives, as well as implement policies that would enhance general economic development of the country.
They further urged the government to improve governance by enhancing transparency, accountability, and inclusivity in governance against personalised leadership, tackling corruption and ensuring equal opportunities for all citizens.
Political and economic analyst, Mustapha Hussain Olarewaju noted that while the government claims to have removed fuel subsidies, the estimated landing cost of petrol exceeds N1, 000, indicating that subsidies persist under different names.
“The floating exchange rate is driving costs higher, leading to widespread inflation,” Olarewaju stated.
He called for stabilization of fuel prices to alleviate the financial burden on citizens, as the current situation reflects a cost-push inflation scenario rather than a demand-driven one.
Olarewaju, criticised the Central Bank of Nigeria’s (CBN) recent monetary policies, particularly the increase of the monetary policy rate (MPR) to 26.25%. He argued that this approach targets demand reduction rather than addressing the root causes of inflation.
Olarewaju emphasised that to combat cost-push inflation effectively, the government should increase expenditure to stimulate productive activities instead of tightening monetary policy. (Saturday Sun)