The consequential increments in the implementation of the ₦30,000 Minimum Wage Law would depend on the capacity of each state government, the Nigeria Governors Forum said Monday. The NGF made the resolution when it met and reviewed current progress in the implementation of the minimum wage law, the chairman of the forum and Governor of Ekiti State, Kayode Fayemi said. Clarifying the Forum’s position and Federal Economic Council’s decision, Fayemi said while state governors agreed to the ₦30,000, FEC did not determine what happens in the states. He said that each state, which is part of the tripartite negotiations, had its State Executive Council, which is the highest decision making body at the state level.
A report published by PWC has shown that the FG owes the 11 electricity distribution companies more than ₦500 billion in what is described as tariff shortfall from electricity subsidy. In the report titled ‘Solving the liquidity crunch in the Nigeria Power Sector’, the audit firm said the electricity subsidy payment being owed by the FG to the power distribution companies is expected to rise to ₦522 billion in 2019, a 36 percent increase relative to the ₦384 billion that was owed in 2018. The debt has been soaring over the years, climbing to ₦235 billion in 2016, from ₦165 billion in 2015. Essentially, tariff shortfall, which is to be paid by the FG, via the Power Sector Recovery Plan as part of the electricity subsidy, is the difference between the end-user cost-reflective tariff and the end-user allowed tariff; actual tariff, DicCos currently charge their consumers. It is money due to DisCos from customers. The tariff shortfall recorded by the 11 DisCos amounted to ₦384 billion in 2018 only, which PwC said was due to the fact that electricity consumers were not charged the cost-reflective tariffs.
A report from NEITI shows that the solid minerals sector contributed ₦52.75 billion to the revenue of the country in 2017, indicating a 21 percent increase on the ₦43.22 billion contributed by the sector in 2016. From the sector’s total revenue contribution, payments to the Federal Inland Revenue Service accounted for ₦49.162 billion, which was about 93 percent of the total revenue realised during the period. Payments to the Mines Inspectorate Department, and Mining Cadastre Office amounted to ₦1.59 billion and ₦2.08 billion or about three and four percent respectively of the total revenue from the sector. NEITI, however, said that except for revenue from MID, there was a significant increase in revenue from all other streams in 2017, that the revenue accruing to the federation from the sector from 2013 to 2017, though 2016 witnessed a decrease of 31.02 percent compared to 2015. Other revenue flows from the solid minerals sector include sub-national payments. These are direct payments to states and local governments as a result of national laws, contractual obligations or local regulations which are disclosed as unilateral disclosures by the extractive companies. The total payment was ₦2.877 billion, representing about 5.45 percent of total government revenue from the sector. On production, the report showed that 35.33 million metric tonnes of minerals valued at ₦32.78 billion were produced in Nigeria during the same period. A breakdown of the production showed that limestone, granite and laterite accounted for 85.72 percent of the total minerals produced with limestone alone contributing about 55 percent of the production volumes.
The CBN governor, Godwin Emefiele, has said that Nigeria’s land borders would remain closed until neighbouring countries agree to implement mutual anti-smuggling policies. Speaking after meeting with President Buhari at the Presidential Villa, Emefiele said that the border closure has reduced smuggling and improved rice production in the country. According to Emefiele, apart from the reduction in rice smuggling, poultry farmers have particularly benefitted immensely from the border closure as they have been able to sell off accumulated produce, hitherto hindered by illegal importation. He said the situation had been undermining Nigeria’s economy and that the FG was therefore resolute in keeping the borders closed until engagements are concluded with Nigeria’s neighbours to have them stop using their ports as launch pads for smuggling item into the country.