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Why we won’t remove fuel subsidy now – FG – Tracking Times
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Why we won’t remove fuel subsidy now – FG

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The Minister of Finance, Hajia Zainab Ahmed, has said that even though the government agrees with the recommendation of the International Monetary Fund (IMF) to remove fuel subsidy, doing so has been difficult.

When asked to respond to the IMF’s counsel on fuel subsidy while briefing newsmen after the weekly Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari yesterday, the minister said government has yet to find a workable formula that would not impact negatively on the poor masses should subsidy be removed.

This is just as President Muhammadu Buhari has ordered his ministers to turn in their handover notes (reports) not later than Wednesday, 24th of this month, ahead of his inauguration for second term on May 29th, On subsidy, the minister said:

“Let me say that last week when met with IMF/World Bank, there was just one interactive session we had with Nigerian journalists. So, we didn’t have any session discussing subsidy. It was in an interview that somebody raised a question based on the Article 4 Report of the IMF.

“What they were asking is what we are doing to remove fuel subsidy and whether we agreed with IMF’s conclusion on subsidy removal.

“So, let me say that everywhere in the world where IMF does its review, it will always give advice because that’s the purpose of the review. And their advice is when you give subsidy whether it is fuel or power, their advice is always ‘look at how you can exit doing that. So that you are not doing that for petrol.’ And that’s the same advice they gave Nigeria.

“So, when I was asked, I said we agree with that advice. We need to find how we can exit fuel subsidy. But how do we do that? We do that only when we have enough buffers to cushion the effect or removal for our people. “It is up to the Executive in support with the legislature to agree what those buffers are.

“In some countries, they provide buses to transport people, in some countries they remove subsidies in a manner that the people that are directly requiring the subsidies don’t face difficulties.

“We have not found a way to do it. It should be the people that are really vulnerable that need the help that get the subsidy.

“So, the Executive with the support of the legislature have to find a formula that will work for Nigeria. And until we do that, we should not be contemplating removing the subsidy because, indeed when we do that, it is the people that will suffer. So, we are not yet there.

“We discussed this periodically at the Economic Management Team. But we still haven’t found a formula that works for Nigeria. And you know that Nigeria is unique. What works for Ghana might not work here. So, it’s still work in progress and there is no intention to remove fuel subsidy at this time.”

Also yesterday, Hajia Zainab disclosed that the Federal Executive Council (FEC) approved a fresh $247 million foreign loans to fund several infrastructural projects in the country.

According to her, the loans included $150 million from African Development Bank (AFDB) for rural electrification projects; $50million from Africa Grow Together Fund for more electrification projects; and $20million from French Development Agency for onward lending to Lagos State for strategic urban roads rehabilitation.
Ahmed explained that the rural electrification projects have four components and that eight Nigerian universities would benefit from the scheme.

“The impact of the project when fully implemented, about 500,000 people will be able to have access to electricity for about 105,000 households. The maximum power that will be generated will be 76.5 megawatts installed generating capacity part of which is 68,000 megawatts of solar.”

“The $20 million loan from France will be obtained for onward lending to Lagos State Government to rehabilitate and open up strategic urban roads, including Marina and Mile 2 interchanges in the heart of the commercial city, that will be of direct benefit to about 1.8 million road users.”

The minister said that the project would be handled by the Lagos State Government, which the Federal Government has determined to be capable of repaying the debt as and when due.

Another loan of $27.3 million was approved as Nigeria’s counterpart contribution towards the second approval the North Core Dorsal Regional Electricity Transmission project

The project aims to connect Nigeria, Niger, Benin Republic, Togo, Burkina Faso with a high voltage 330 kilowatts transmission line, to facilitate energy trade amongst participants.

The project is in the total sum of $640 million out of which Nigeria has the smallest component of $27.3 million concessionary loan. Asked why the foreign loans keep piling up, she gave the assurance that Nigeria’s borrowing is still less than 5% of the GDP, so it remains sustainable, and there is no need for panic.

Buhari’s order on handover notes was made public in a statement made available to newsmen yesterday by his spokesman, Mallam Garba Shehu.

The statement reads: “As the first term of the President Muhammadu Buhari administration winds down, the President has asked for a comprehensive “status reports on policies, programs and projects from cabinet members on their respective ministries, departments and agencies.”

“These reports have Wednesday, April 24, 2019 as the deadline for submission to the Presidential Audit Committee in the office of the Vice President.

“A circular to this effect issued by Boss Mustapha, the Secretary to the Government of the Federation, SGF, also requested members of the Federal Executive Council to ensure that all outstanding memoranda they intend to present to the Federal Executive Council are submitted to the Cabinet Affairs Office, Office of the Secretary to the Government of the Federation, not later than Tuesday, 30th April, 2019.”

The circular also informed members that the “9th and 10th meetings of the Council have been rescheduled to Thursday, 25th April and Thursday, 2nd May, 2019 respectively” in view of the Easter break and May Day celebrations.”

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As Nigerians Battle Pains Of Soaring Petrol Price

This is more than just about fuel; it’s about the larger picture of governance failure. The fact that a country as oil-rich as Nigeria can’t provide affordable fuel for its people is a tragedy.

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BY IFEANYI MOGBOLU

The Daily Times-The latest fuel price hike in Nigeria is beyond frustrating. Every time we think it can’t get worse, it does, and yet again, ordinary Nigerians bear the brunt of it.

It’s like a never-ending cycle, where the government’s promises of reforms or stabilisation always end up as empty rhetoric. The cost of living is already sky-high, and now, with fuel prices rising again, transport fares, food prices, and basic commodities are bound to follow suit.

It’s enraging because it doesn’t feel like anyone is truly considering the everyday citizen who is struggling just to survive.

This is more than just about fuel; it’s about the larger picture of governance failure. The fact that a country as oil-rich as Nigeria can’t provide affordable fuel for its people is a tragedy. The subsidies are gone, and now we’re left in a situation where the prices of everything keep climbing, while salaries remain stagnant or non-existent for many.

The disparity between the elites and the masses is growing, and it feels like nobody in power truly cares about the suffering of the people.

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The anger isn’t just about fuel; it’s about the entire state of living. Nigerians are exhausted. There’s no sense of security; power supply is erratic, basic infrastructure is crumbling, and inflation is at an all-time high. How do we live like this? Every day is a battle to make ends meet, and the government seems utterly disconnected from the struggles on the ground.

It’s infuriating that while politicians and elites live in luxury, the rest of us are left scrambling for the bare minimum. The state of living is unbearable, and the lack of empathy or real action from those in power only adds salt to the wound.

There’s a deep sense of anger and betrayal that comes with seeing your country’s wealth mismanaged, while the people continue to suffer. It’s hard not to feel like we are constantly being taken for granted, pushed further into hardship without any hope of relief. Something has to give, because this state of affairs is unsustainable.

QUOTE:

The anger isn’t just about fuel; it’s about the entire state of living. Nigerians are exhausted. There’s no sense of security; power supply is erratic, basic infrastructure is crumbling, and inflation is at an all-time high. How do we live like this? Every day is a battle to make ends meet, and the government seems utterly disconnected from the struggles on the ground. It’s infuriating that while politicians and elites live in luxury, the rest of us are left scrambling for the bare minimum.

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Nigeria To Receive $5.600,000 From Bill Gates, For Health And Agricultural Reforms, GMOs

Alongside the activities surrounding the 79th United Nations General Assembly in New York, Vice President Kashim Shettima held a meeting with the Bill and Melinda Gates Foundation leading to the announcement of the donation by the Foundation’s head of Global Development.

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Bill Gates, GMOs, KASHIM Shettima

Bill and Melinda Gates Foundation is giving Nigeria through Vice President Kashim Shettima, a $5.600,000 funds to speedy up health and agricultural reforms in favour of the GMOs in Nigeria, and flood relief.

Through the Foundation’s head of Global Development Programme, Dr Christopher Elias, Bill Gates pledged $5 million grant approved for Lagos Business School and partners to develop the agricultural economics they called “industrial cassava” and $600,000 for flood relief in Borno State and other health sector initiatives.

Alongside the activities surrounding the 79th United Nations General Assembly in New York, Vice President Kashim Shettima held a meeting with the Bill and Melinda Gates Foundation leading to the announcement of the donation by the Foundation’s head of Global Development.

Recall that on 4 September, Bill Gates had described the Nigeria’s economy as “stagnated” and proposed agricultural reforms for faster and increased growths in crops, fruits, vegetables amongst others to enhance nutritional values of the Nigerian citizens through the agricultural sector.

In that meeting Chaired by Vice President Kashim Shettima, Bill gates urged Nigeria to adopt “innovative crop varieties with shorter growing periods, higher yields, and better pest resistance” pointing to the GMOs to address the food crisis.

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Moreover, at the 79th UN General Assembly in New York, VP Shettima reaffirmed to the Bill and Melinda Gates Foundation, the commitment of the administration of President Bola Ahmed Tinubu prioritizing health, nutrition, and agricultural development in Nigeria’s national agenda.

In a statement by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, Shettima said: “we are deeply committed to addressing the pressing developmental challenges facing our nation, particularly the significant malnutrition crisis”.

He emphasised the Federal Government’s dedication and urgently working to secure locations for maize production under the Telemaze programme.

VP Shettima, promising swift action to the Gate’s Foundation on import permits for certified seeds, the VP said, “We recognize the critical importance of food security and industrial agricultural development. The Cassava Accelerator programme, in particular, holds immense potential for our economy.

“We are pursuing a whole-of-government approach to digitisation and data exchange systems, which we believe will revolutionise our public services,” he added while reiterating the government’s focus and commitment to digital transformation.

“With the expertise” of Nigeria’s ministers, “and the continued support of partners like the Gates Foundation,” the nation remains confident in its “ability to drive meaningful change and improve the lives of all Nigerians.”

In his response, President of the Global Development Programme at the Gates Foundation, Dr. Christopher Elias, said the Foundation is burdened with worries of the severe flooding in Borno, and is “committed to supporting Nigeria in times of crisis.”

Speaking of Polio, the Foundation said, “We’re impressed by the national task force’s efforts to eliminate variant polioviruses by year-end,” Dr. Elias noted.

Also, President of Global Growth & Opportunity Division at the Bill & Melinda Gates Foundation, Rodger Voorhies, detailed plans for scaling up drought-tolerant maize production and advancing the Nigeria Cassava Investment Accelerator programme emphasizing that a $5 million grant has been approved for Lagos Business School and partners to develop the agricultural economics of industrial cassava.

In his words, “Industrial cassava presents a multi-billion-dollar opportunity for Nigeria,” Voorhees stressed.

He requested import permits for 5,000 metric tons of certified GMO maize seed to build a foundation seed system in Nigeria.

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Managing, Leading, Building Institutions And Sustainability

The two primary tasks of a top-level leader are to exploit and explore the organisation with people for now and in the future.

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Babs Olugbemi

By Babs Olugbemi

One of my concerns for leaders is their capacity to be ambidextrous. Regardless of years of experience, knowledge, and leadership capacity, the lack of a clear distinction between managing and leading on the one hand, leading and building institutions on the second layer, and ultimately focussing on sustainability is a significant threat to successful leadership change.

I have followed events and people at C-suites, coached some, and developed frameworks for leadership development. Based on the personalities and styles of the new leaders, I have confirmed my fears about leadership sustainability in most African organisations.

“Successful leaders can aptly differentiate themselves and their roles without necessarily seeing activities as performance, focussing on what is required of them with appropriate tenacity and influence.”

The challenge for leaders is how to lead for the present and future without losing sight of the stakeholders’ immediate performance expectations. Successful leaders can aptly differentiate themselves and their roles without necessarily seeing activities as performance, focussing on what is required of them with appropriate tenacity and influence.

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In my walk as a leadership coach, I have keenly observed leaders who are managing rather than leading. Managing involves ensuring that processes achieve their intended outcomes. Leaders are above managing and should focus on creating an enabling environment for innovation, inventions, and team collaboration. The primary role in leading is not to monitor process outcomes, though critical to the company’s overall objectives, but to align corporate values with the people’s aspirations to create an engaged and ownership-thinking mindset ready to take on challenges and explore opportunities. An alignment of corporate and personal goals will not only deliver the present performance expectations. Still, it will also incubate innovations to adapt to future market demands and the sustainability of the business.

Unfortunately, the capacity for ambidexterity is rare and often marked by leaders’ exposure, approach and styles, perception, and perspective of their roles in the organisation. A leader with a wrong foundation in these areas is set for failure and awaits unfavourable decisions from the board of directors. A top-level leader might manage their teams instead of leading them. Not all leaders can combine leading for the present with building institutions. However, anyone able to submit themselves to an institution-building mechanism can champion sustainability. Aside from being a leadership coach, I help leaders achieve sustainability.

Mathematically, creating an ambidextrous organisation is beyond leading. It is to lead and build an institution that focuses on sustainability in all aspects of the organisation—employee fulfilment, customer retention, strategy effectiveness, performance evaluation, stakeholder management, process improvement, and goal congruence.

In a nutshell, the role of successful leaders in ambidextrous organisations is striking a balance between exploiting current assets and capabilities to ensure short-term success and allocating enough energy and resources to exploration to ensure future viability. The two primary tasks of a top-level leader are to exploit and explore the organisation with people for now and in the future. The two seemingly contradictory aspects—exploitation and exploration—encompass different strategies and processes and have different targets and outcomes (March 1991; O’Reilly & Tushman, 2004; O’Reilly & Tushman, 2013).

O’Reilly and Tushman described the two concepts as follows:

  • Exploiting: Exploiting involves building on an organisation’s achievements and maximising returns on previous investments. It focuses on responding to current business demands to remain efficient and competitive within an established market niche, as well as on maintaining an existing customer base and stakeholder relationships. Examples of exploiting are activities focused on continuous improvement, benchmarking, and redesigning business processes.
  • Exploring: Exploring focuses on expanding an organisation’s knowledge and capabilities, pioneering new products and services, and discovering and venturing into untapped markets.

The common area of practical bottlenecks in exploiting and exploring in organisations is a need for foundational trust and cohesion among the resources, especially the human capital, which are often treated as costs rather than assets to the organisations. Among all the factors of production, only humans can be ambidextrous with the capacity to think about changes in economic parameters and adjust their behaviours to match the time, content, and contextual requirements.

While organisations might have the resources to deploy in fighting competition, technology to obtain first-mover advantages, and production capacity to maximise output from input, none is compared with the potential of an engaged workforce.

Therefore, for leaders to be successful, they must refrain from operating in the realm of managing. They should operate in the capacity of institution builders, with the mindset of creating sustainable leadership and growth with people first and other factors of production second.

Consequently, only the leaders who prioritise their people over profits, pride, and organisational arrogance will be successful in the long term.

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