Aeesha's Blog

Category: Economy

  • CPPE Advises FG: Cut Living Costs, Not Just Raise Wages

    The Centre for the Promotion of Private Enterprise (CPPE) has advised the Federal Government to prioritise policies aimed at reducing the cost of living, rather than relying solely on wage increases to improve workers’ welfare.

    The Chief Executive Officer of CPPE, Muda Yusuf, made the call in a policy statement released in Abuja, noting that while wage adjustments are often necessary, they do not provide lasting relief in an inflationary environment.

    Yusuf explained that rising inflation continues to erode the purchasing power of workers, thereby diminishing the real value of salary increases within a short period.

    “Wage increases, though important, are not sufficient on their own to address the welfare challenges facing Nigerian workers,” he said.

    According to him, the focus of government policy should shift toward reducing the major cost drivers affecting households, including food prices, transportation, housing, and energy.

    He stressed that addressing these structural challenges would have a more sustainable impact on citizens’ welfare than periodic wage reviews.

    The CPPE boss called for increased investment in mass transit systems to reduce commuting costs and ease pressure on urban workers. He also advocated policies to boost agricultural productivity to curb rising food prices.

    Yusuf further recommended measures to address rising rental costs, including incentives for affordable housing development, as well as support for employer-driven welfare initiatives such as subsidised staff meals.

    He added that improving public service delivery in critical sectors such as healthcare, education, power, and transportation would significantly reduce the financial burden on households.

    On social protection, CPPE urged the government to expand health insurance coverage, ensure effective pension administration, and consider unemployment insurance schemes to support vulnerable workers.

    The organisation also raised concerns over job insecurity, highlighting the growing trend of casual and contract employment, and called for stronger labour protections.

    CPPE noted that Nigeria’s current economic realities—characterised by high inflation and rising living costs—require a comprehensive policy response that goes beyond wage increases.

    It maintained that protecting the real incomes of workers through cost-of-living reduction strategies and structural reforms would deliver more meaningful and lasting economic relief.

    Background:

    The call comes amid ongoing national discourse on wage adjustments as workers grapple with rising inflation and declining purchasing power across the country.

  • Telecom Subscribers Seek Compensation Over Network Disruptions

    Telecommunications subscribers across Nigeria have called for adequate compensation from service providers following persistent network disruptions affecting voice calls, data services and digital transactions nationwide.

    The subscribers made the call in separate interviews with the Sources on Monday in Abuja, expressing frustration over frequent service outages, poor connectivity and inconsistent internet speeds.

    Some of the respondents said the disruptions had negatively impacted their businesses, communication and access to essential online services, including banking and remote work.

    “I rely heavily on mobile data for my online business, but the network has been unreliable for weeks. It is only fair that providers compensate us for the losses incurred,” a subscriber, Mrs. Halima Sani, said.

    Another respondent, Mr. Chinedu Okafor, said telecom operators should be held accountable for service failures, noting that subscribers continue to pay for services that are not optimally delivered.

    Industry stakeholders, however, attributed the disruptions to multiple challenges, including infrastructure vandalism, power supply constraints and high operational costs.

    A telecom analyst, Mr. Tunde Adebayo, explained that while compensation demands were justified, systemic issues affecting the sector must also be addressed.

    “Operators are grappling with rising costs of diesel, foreign exchange volatility and security challenges affecting infrastructure. These factors inevitably impact service delivery,” he said.

    The Nigerian Communications Commission (NCC), the sector’s regulator, has reiterated its commitment to protecting consumer rights and ensuring quality of service.

    In a recent statement, the NCC said it had mechanisms in place for monitoring service quality and addressing consumer complaints, adding that operators found wanting could face sanctions in line with regulatory provisions.

    The commission also urged subscribers to report service issues through official complaint channels to enable prompt resolution and regulatory action where necessary.

    Meanwhile, telecom operators have appealed for patience, assuring customers that efforts were underway to improve network performance through infrastructure upgrades and increased investment.

    Analysts note that compensation frameworks in the telecommunications sector remain limited, with calls growing for clearer policies that would mandate service credits or refunds during prolonged outages.

    They emphasised that improving service quality and ensuring accountability would boost consumer confidence and support Nigeria’s growing digital economy.

  • Rising Jet Fuel Costs Push Nigerian Airlines to the Brink of Operational Review

    Nigerian airlines are increasingly being compelled to reassess their operational models as the sharp rise in aviation fuel prices threatens the sustainability of domestic air travel.

    Industry operators say the surge in the cost of Jet-A1 fuel—reportedly exceeding 100 per cent in recent weeks—has disrupted financial projections, forcing airlines to consider difficult adjustments to remain viable.

    The Airline Operators of Nigeria (AON) said the spike in fuel prices has significantly inflated operational costs, with aviation fuel accounting for the largest share of airline expenditure.

    Spokesman of the association, Prof. Obiora Okonkwo, noted that while airlines were under intense pressure, many had chosen to maintain current ticket prices to avoid placing additional burden on passengers already grappling with economic hardship.

    He, however, warned that such a strategy could only be sustained for a limited period.

    Mounting Pressure on Operations

    Investigations reveal that airlines are exploring cost-cutting measures, including optimising flight schedules, consolidating routes, and improving operational efficiency to reduce fuel consumption.

    Aviation experts say these adjustments may temporarily cushion the impact but are unlikely to fully offset the rising cost of fuel.

    “Airlines are entering a critical phase where operational efficiency alone may not be sufficient to absorb the shocks,” an industry analyst told Source.

    Passengers Yet to Feel Full Impact

    Despite the surge in costs, many airlines have not immediately increased fares, a move analysts describe as a deliberate attempt to retain customer loyalty and sustain travel demand.

    However, stakeholders caution that continued losses could force operators to introduce fuel surcharges or review ticket pricing structures in the near future.

    They note that any significant fare increase could lead to reduced passenger traffic, further compounding the challenges faced by airlines.

    Global and Domestic Factors at Play

    Experts attribute the fuel price surge to a combination of global crude oil market volatility and domestic supply constraints.

    Geopolitical tensions affecting oil-producing regions have driven up international energy prices, while local distribution challenges have exacerbated the situation in Nigeria.

    The development has mirrored global trends, where airlines in several regions are adjusting fares and scaling down operations in response to rising fuel costs.

    Sector Faces Uncertain Outlook

    Stakeholders warn that if the current trend persists, the aviation sector could experience reduced connectivity, with potential cuts in flight frequency and suspension of less profitable routes.

    They also highlight the risk of job losses and reduced economic activity linked to the aviation value chain.

    Call for Strategic Intervention

    Industry players have called on the Federal Government to prioritise policies that will stabilise aviation fuel supply and encourage local refining to reduce dependence on imports.

    They emphasised that timely intervention would not only support airlines but also preserve the broader economic benefits of a functional air transport system.

    Outlook

    As airlines continue to absorb rising costs, the sector stands at a crossroads, balancing commercial survival with service delivery.

    Observers say the coming weeks will be critical in determining whether operators can sustain current pricing or be forced into decisions that could reshape Nigeria’s domestic aviation landscape.

  • Nigeria Positions Itself as Catalyst for Africa’s Mining-Led Growth

    Nigeria has unveiled an ambitious vision to position its solid minerals sector as a driving force for regional economic transformation, signalling a strategic shift toward mining as a key pillar of Africa’s future growth.

    The renewed focus, stakeholders say, reflects a broader continental push to harness vast mineral resources for industrialisation, job creation and intra-African trade.

    Industry experts note that Nigeria’s approach is anchored on reforms aimed at attracting foreign investment, strengthening regulatory frameworks and promoting value addition across the mining value chain.

    Speaking at a recent stakeholders’ forum in Abuja, officials of the Federal Ministry of Solid Minerals Development said the country was committed to building a globally competitive mining sector capable of supporting regional supply chains.

    According to the ministry, Nigeria is prioritising the exploration and development of critical minerals such as lithium, gold, and iron ore—resources considered essential for emerging technologies and infrastructure development.

    Analysts believe the move aligns with Africa’s broader ambition under the African Union frameworks to promote resource-based industrialisation and reduce dependence on raw material exports.

    They added that Nigeria’s large domestic market, combined with its strategic location in West Africa, places it in a strong position to serve as a hub for mineral processing and distribution across the region.

    However, experts caution that achieving this vision will require addressing longstanding challenges, including illegal mining, inadequate infrastructure, and limited access to financing.

    “There is strong potential, but execution is key. Nigeria must invest in geoscience data, security of mining sites, and transport networks to unlock full value,” a mining consultant told Source.

    The government has also emphasised partnerships with private investors and international organisations to bridge funding gaps and deploy modern mining technologies.

    In addition, efforts are underway to formalise artisanal mining activities, which account for a significant share of the sector but often operate outside regulatory oversight.

    Development economists argue that integrating these small-scale miners into the formal economy could boost revenue generation and improve environmental standards.

    Meanwhile, regional observers say Nigeria’s mining drive could enhance economic cooperation within Economic Community of West African States by fostering cross-border trade in mineral resources and related services.

    They note that improved policies and infrastructure could enable neighbouring countries to benefit from shared value chains, thereby strengthening economic resilience across the sub-region.

    The initiative also aligns with the goals of the African Continental Free Trade Area (AfCFTA), which seeks to deepen trade integration and industrial capacity across the continent.

    As Nigeria advances its mining roadmap, stakeholders stress the importance of transparency, community engagement, and sustainable practices to ensure long-term benefits.

    They maintain that with the right policies and investments, the country could emerge as a key player in shaping Africa’s mining future and driving inclusive regional growth.

  • AGF: Resolution of OPL 245 Dispute Repositions Nigeria’s Economy

    The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, says the resolution of the long-standing dispute surrounding Oil Prospecting Licence (OPL) 245 will significantly reposition Nigeria’s economy and strengthen investor confidence in the country’s oil and gas sector.

    Fagbemi also commended President Bola Ahmed Tinubu for demonstrating decisive leadership in ensuring the amicable settlement of the dispute, which had lingered for years and attracted international attention.

    The AGF stated this in Abuja while addressing journalists on the outcome of negotiations that led to the settlement involving key stakeholders in the controversial oil block.

    He explained that the resolution marked a turning point in Nigeria’s efforts to address legacy disputes in the petroleum industry and restore credibility in the management of the nation’s natural resources.

    According to him, the successful settlement underscores the administration’s commitment to strengthening the rule of law, promoting transparency, and creating a stable investment climate in the oil and gas sector.

    “The resolution of the OPL 245 dispute represents a major milestone for Nigeria. It signals the government’s readiness to resolve long-standing disputes through lawful and constructive engagement,” Fagbemi said.

    He noted that the dispute over the oil block, which had spanned several administrations and triggered multiple legal battles across jurisdictions, had previously posed reputational and financial risks to Nigeria.

    The minister said the settlement would enable the country to refocus on economic growth, attract fresh investment into the petroleum sector, and improve revenue generation.

    Fagbemi also stressed that the Federal Government remained committed to protecting Nigeria’s national interest while ensuring fairness and adherence to due process in the management of strategic assets.

    He further noted that resolving such disputes was critical to unlocking the full potential of Nigeria’s oil and gas resources and advancing the broader economic reform agenda of the Tinubu administration.

    The attorney-general urged stakeholders in the energy sector to support government efforts aimed at improving governance, accountability and investment inflow in the industry.

    The OPL 245 oil block, one of Nigeria’s most valuable offshore assets, has been the subject of prolonged legal and diplomatic disputes involving international oil companies and Nigerian authorities.

    Analysts say the resolution of the dispute could open new opportunities for exploration and production activities, thereby boosting Nigeria’s crude oil output and government revenue.

    Observers also note that the development aligns with ongoing reforms in the petroleum sector aimed at improving regulatory certainty and attracting foreign direct investment.

    The Federal Government expressed optimism that the settlement would contribute to long-term stability in the sector and reinforce Nigeria’s position as a key player in the global energy market.

  • Breaking the Cycle of Harassment: New Tax Rules Aim to Restore Freedom of Movement

    The Federal Government has announced sweeping reforms banning cash-based tax collection and roadside enforcement checkpoints, describing the move as a necessary step to protect citizens’ rights, reduce abuse of authority and strengthen public security across the country.

    The directive, issued under the newly approved Presumptive Tax Regulations and Guidelines on the Implementation of Tax Laws, outlaws the mounting of roadblocks, motor park checkpoints and street-level enforcement operations by revenue officials.

    Security analysts say the policy responds to long-standing concerns that informal tax checkpoints had evolved into flashpoints for intimidation, extortion and, in some cases, violent confrontations between revenue agents and members of the public.

    Roadblocks Viewed as Security Risks

    Speaking during the unveiling of the regulations in Abuja, officials of the Federal Government of Nigeria said roadside tax collection had increasingly posed risks to public order and national security.

    According to government sources, unregulated checkpoints — often operated without clear identification or oversight — had created confusion for motorists and security agencies, making it difficult to distinguish legitimate enforcement from criminal activity.

    Experts note that such roadblocks disrupted free movement, exposed commuters to harassment and sometimes led to clashes that endangered lives, particularly along highways and in commercial centres.

    Protecting Freedom of Movement

    The Executive Secretary of the Joint Revenue Board, Mr. Olusegun Adesokan, said the ban was also grounded in constitutional considerations.

    He explained that stopping citizens on roads, highways and market routes to demand tax payments violated fundamental rights, including freedom of movement and protection from unlawful coercion.

    “The era of forcing compliance through intimidation and obstruction is over,” Adesokan said, stressing that tax enforcement must respect due process and civil liberties.

    Curbing Abuse and Extortion

    Civil-rights advocates have for years accused some revenue officials of exploiting roadside tax collection to extort traders, transport workers and commercial drivers under the guise of enforcement.

    Under the new regulations, all forms of cash tax payments are prohibited, eliminating opportunities for on-the-spot demands, unofficial receipts and diversion of public funds.

    Revenue collection is now restricted to approved digital platforms, allowing transactions to be traced and audited.

    Officials said this measure would reduce corruption, protect citizens from financial exploitation and make enforcement actions more transparent.

    Security Coordination and Oversight

    The government disclosed that security agencies had been briefed on the new rules to prevent collaboration with illegal tax checkpoints.

    Authorities warned that any revenue official found mounting roadblocks or collecting cash would face sanctions, including prosecution, in line with existing laws.

    An ombudsman mechanism has also been introduced to enable citizens report harassment, intimidation or unlawful enforcement practices linked to tax collection.

    Impact on Public Order

    Security experts say removing informal checkpoints could ease traffic congestion, reduce confrontations on highways and allow law enforcement agencies focus on genuine security threats.

    They argue that eliminating unofficial roadblocks will also reduce the chances of criminals impersonating revenue officials — a tactic increasingly used to commit robbery and extortion.

    Human-Centred Enforcement Model

    The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the reforms signal a shift toward a rights-respecting, rule-based tax system.

    He noted that revenue mobilisation should not come at the cost of public safety or dignity, adding that compliance must be driven by trust rather than fear.

    A Break From Past Practices

    For many Nigerians, the decision represents a long-awaited response to years of unchecked roadside enforcement that blurred the line between taxation and harassment.

    Observers say successful implementation will depend on strict monitoring, public awareness and the willingness of state and local governments to abandon coercive revenue practices.

    The Federal Government said the reforms are part of a broader effort to align fiscal administration with democratic principles, rule of law and internal security objectives.

  • Reforms, Investment Climate Take Centre Stage as Nigeria, EBRD Deepen Engagement

    Efforts to strengthen Nigeria’s investment climate and entrench economic reforms dominated discussions as the Federal Government of Nigeria held strategic engagement talks with the European Bank for Reconstruction and Development (EBRD) on long-term economic cooperation.

    The meeting, which took place in Abuja, centred on how policy consistency, regulatory clarity and private-sector-led growth could be leveraged to unlock sustainable financing and attract international investors.

    Government officials highlighted recent steps taken to stabilise the macroeconomic environment, including reforms in public finance management, foreign exchange administration and efforts to improve ease of doing business. They noted that these measures were critical to restoring investor confidence and supporting broad-based economic expansion.

    The Nigerian side stressed that collaboration with the EBRD would go beyond funding, focusing on technical expertise, policy advisory services and institutional strengthening to support long-term development goals.

    In response, the EBRD reaffirmed its interest in deepening engagement with Nigeria, particularly in sectors capable of delivering high economic impact such as infrastructure development, renewable energy, agribusiness and financial intermediation. The bank underscored the importance of strong governance frameworks and bankable projects in achieving sustainable outcomes.

    Discussions also examined strategies for mobilising private capital for climate-resilient infrastructure and green investments, aligning economic growth with environmental sustainability.

    Both parties agreed on the need for continuous dialogue and structured follow-up mechanisms to translate reform commitments into actionable investment opportunities.

    The engagement marks another step in Nigeria’s push to reposition its economy through strategic partnerships that prioritise resilience, competitiveness and inclusive growth.

  • FG Launches ₦25m Women Economic Empowerment Programme

    The Federal Government has unveiled a ₦25 million Women Economic Empowerment Programme aimed at supporting women entrepreneurs and aspiring business owners across the country.

    The programme, which is being implemented by the Ministry of Women Affairs, is designed to enhance women’s access to economic opportunities, strengthen small and medium-scale enterprises (SMEs), and promote inclusive growth.

    A statement issued on Monday in Abuja said the initiative targets women-owned businesses and start-ups, with a focus on improving financial inclusion, business sustainability and job creation.

    According to the ministry, beneficiaries will be selected through a transparent digital process using the Happy Woman App Platform, which serves as the official registration and engagement portal for the programme.

    “The Women Economic Empowerment Programme is part of the Federal Government’s broader strategy to empower women economically, reduce poverty and stimulate grassroots development,” the statement said.

    It added that the initiative would provide eligible women entrepreneurs with financial support, capacity-building opportunities and access to business development resources to help scale their ventures.

    Interested applicants are required to register through the Happy Woman App Platform by visiting https://happywoman.ng/get-started, where they will complete the necessary application process.

    The ministry urged women entrepreneurs and those with viable business ideas to take advantage of the opportunity, noting that empowering women economically remains a critical pillar of national development.

    The Federal Government reaffirmed its commitment to advancing gender equality and ensuring that women play a central role in Nigeria’s economic transformation.

  • FG TVET Programme Brings Relief to Trainers, Spurs Economic Activity with ₦45,000 Monthly Stipend

    The Federal Government’s Technical and Vocational Education and Training (TVET) Initiative Programme is offering renewed hope to technical trainers nationwide, combining skills upgrading with a ₦45,000 monthly stipend to cushion economic hardship and strengthen Nigeria’s skilled workforce.

    The programme is targeted at trainers who form the backbone of vocational education across technical colleges, skills acquisition centres and informal apprenticeship systems, many of whom have struggled with limited resources and declining incomes.

    Education sector analysts say the initiative could have far-reaching economic benefits, as better-trained instructors are expected to transfer improved skills to thousands of trainees, leading to job creation, increased productivity and stronger local economies.

    Officials of the Federal Ministry of Education, which is coordinating the programme in collaboration with relevant agencies, explained that the TVET initiative is designed to align training delivery with current industry needs, while also supporting trainers financially during the training period.

    According to the ministry, beneficiaries will undergo structured modules covering modern teaching methods, competency-based learning, workplace safety and emerging technologies in key sectors such as manufacturing, construction, ICT, agriculture, automobile technology and renewable energy.

    The ₦45,000 monthly stipend is intended to enable participants to focus fully on the training, reduce financial strain and encourage sustained participation, particularly among trainers operating at the grassroots.

    Eligibility Criteria

    Applicants must:

    • Be Nigerian citizens

    • Possess demonstrable technical or vocational skills

    • Be actively engaged as trainers, instructors or master craftsmen in:

    ° Technical colleges

    ° Vocational or skills acquisition centres

    ° Informal apprenticeship schemes

    • Have basic literacy skills

    • Be willing to undergo and complete the full training programme

    Preference may be given to applicants from underserved communities and high-unemployment areas.

    How to Apply

    Interested and qualified applicants are required to apply online through the official Federal Government TVET portal:

    Apply here: https://tvet.education.gov.ng/apply

    Applicants are to:

    • Complete the online registration form

    • Provide personal and professional details

    • Upload relevant documents as proof of skills or training engagement

    • Await screening, verification and selection notifications

    Successful applicants will be enrolled into the training programme, during which the ₦45,000 monthly stipend will be paid in line with government guidelines.

    The Federal Government reaffirmed its commitment to transparency in the selection process and urged eligible trainers to seize the opportunity to improve their livelihoods while contributing to national economic development through skills training.

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