Lai Mohammed-Nigeria is Broke
Thu May 19, 2016 09:06:am National
2.5K By sosa hills
The Federal Government has admitted that Nigeria is broke and cannot continue to sustain the outrageous subsidy on petrol.
The sad news was broken on Wednesday by the Minister of Information, Alhaji Lai Mohammed, after the Federal Executive Council (FEC) meeting in Abuja.
And despite a tepid first day of a nationwide strike called by the Nigeria Labour Congress (NLC) over the recent petrol price hike, the Federal
Government has declared its readiness to continue negotiations with the labour leaders without invoking more possible legal options.
On the state of the economy, Mohammed said: "The current problem is not really about subsidy removal. It is about that Nigeria is broke; pure and simple!
He joined his counterpart in the Labour and Employment Ministry, Dr. Chris Ngige, to brief newsmen at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa.
The minister denied allegations that the government was encouraging factionalism in the labour movement by negotiating separately with a breakaway section of the NLC in the efforts to avert the strike.
Mohammed reiterated that the hike in fuel price which triggered the strike was caused by no other than the fact that the country's revenue has dropped.
"A few months ago, we were earning as much as $100 for every barrel of crude. In the months of February and March, we were short. So, we no longer have the resources, the foreign exchange to bring in refined fuel products and our economy is shrinking.
"We appreciate the fact that the decision is going to affect everybody. We appreciate what we are going through, but Nigerians should also know that the government has the responsibility at times to take very difficult decisions. So, it is not always about popularity, "he explained.
The minister pointed out that those now permitted to import petrol would not necessarily resort to the parallel foreign exchange market but through interbank sources and rates, even as he stressed that the bulk of the country's forex comes from exports and oil sales.
Ngige, who briefed the NEC on the outcome of negotiations with labour, noted that the law prevents labour unions from proceeding on strike without giving government a 15-day notice, failure of which attracts some sanctions.
Despite this, the Federal Government's doors remain open to the aggrieved labour unions and leaders, Ngige said, adding that "we have a right to discuss with anybody."
The Minister of Justice, Abubakar Malami, announced that the FEC approved his memo on ensuring uniformity in the payment and settlement processes in the financial system in order to block leakages in Ministries, Departments and Agencies (MDAs). He is to now prepare a draft bill for forwarding to the National Assembly to make it a law.
Meanwhile, the Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), has explained that only the National Assembly has the power to reintroduce toll gates as additional sources for funding road maintenance.
Fashola made the explanation while fielding questions at the News Agency of Nigeria (NAN) Forum on Wednesday in Abuja.
He said that the government had no power to reintroduce toll gates unless the National Assembly gave legislative approval.
"If we have those legislative approvals in parliament, it means that Nigerians have voted for tolls."
Fashola said he would sustain the reform work that the previous administration had commenced on how to fund roads.
He, however, noted that for tolls to achieve its purpose, the existence of secure payment platforms and effective monitoring capacity would be able to prevent leakages.
The minister hinted that more than 17,500 road construction workers are too be reengaged as contractors return to project sites across the country.
He said that the contractors had declared their readiness to reengage workers, who were laid off due to the huge debt owed by the Federal Government in the past three years.
The sad news was broken on Wednesday by the Minister of Information, Alhaji Lai Mohammed, after the Federal Executive Council (FEC) meeting in Abuja.
And despite a tepid first day of a nationwide strike called by the Nigeria Labour Congress (NLC) over the recent petrol price hike, the Federal
Government has declared its readiness to continue negotiations with the labour leaders without invoking more possible legal options.
On the state of the economy, Mohammed said: "The current problem is not really about subsidy removal. It is about that Nigeria is broke; pure and simple!
He joined his counterpart in the Labour and Employment Ministry, Dr. Chris Ngige, to brief newsmen at the end of the FEC meeting chaired by President Muhammadu Buhari at the Presidential Villa.
The minister denied allegations that the government was encouraging factionalism in the labour movement by negotiating separately with a breakaway section of the NLC in the efforts to avert the strike.
Mohammed reiterated that the hike in fuel price which triggered the strike was caused by no other than the fact that the country's revenue has dropped.
"A few months ago, we were earning as much as $100 for every barrel of crude. In the months of February and March, we were short. So, we no longer have the resources, the foreign exchange to bring in refined fuel products and our economy is shrinking.
"We appreciate the fact that the decision is going to affect everybody. We appreciate what we are going through, but Nigerians should also know that the government has the responsibility at times to take very difficult decisions. So, it is not always about popularity, "he explained.
The minister pointed out that those now permitted to import petrol would not necessarily resort to the parallel foreign exchange market but through interbank sources and rates, even as he stressed that the bulk of the country's forex comes from exports and oil sales.
Ngige, who briefed the NEC on the outcome of negotiations with labour, noted that the law prevents labour unions from proceeding on strike without giving government a 15-day notice, failure of which attracts some sanctions.
Despite this, the Federal Government's doors remain open to the aggrieved labour unions and leaders, Ngige said, adding that "we have a right to discuss with anybody."
The Minister of Justice, Abubakar Malami, announced that the FEC approved his memo on ensuring uniformity in the payment and settlement processes in the financial system in order to block leakages in Ministries, Departments and Agencies (MDAs). He is to now prepare a draft bill for forwarding to the National Assembly to make it a law.
Meanwhile, the Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), has explained that only the National Assembly has the power to reintroduce toll gates as additional sources for funding road maintenance.
Fashola made the explanation while fielding questions at the News Agency of Nigeria (NAN) Forum on Wednesday in Abuja.
He said that the government had no power to reintroduce toll gates unless the National Assembly gave legislative approval.
"If we have those legislative approvals in parliament, it means that Nigerians have voted for tolls."
Fashola said he would sustain the reform work that the previous administration had commenced on how to fund roads.
He, however, noted that for tolls to achieve its purpose, the existence of secure payment platforms and effective monitoring capacity would be able to prevent leakages.
The minister hinted that more than 17,500 road construction workers are too be reengaged as contractors return to project sites across the country.
He said that the contractors had declared their readiness to reengage workers, who were laid off due to the huge debt owed by the Federal Government in the past three years.
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