CSOs call for debt rescheduling with China, others

Over 50 civil society Organisations have called on President Bola Ahmed Tinubu to reschedule Nigeria’s debt with China. In a communiqué signed by Action Aid Nigeria, BudgIT Foundation, Centre for Social Justice (CSJ), Civil Society Legislative Advocacy Centre (CISLAC), Heinrich Boell Stiftung Nigeria, OXFAM Nigeria, Natural Resource Governance Institute (NRGI), and 48 others, the CSOs noted that the present situation where the country was spending 80 per cent of its resources to service debt was unsustainable. Analysts have said that the country spends over 90 per cent of its revenue on debt servicing. The federal government has put Nigeria’s debt profile at N77 trillion including the Ways and Means from the Central Bank of Nigeria (CBN). The group noted that the huge debt burden has put the country in a position where it would be difficult to fulfill its commitments to achieve the Sustainable Development Goals (SDG) and contribute to the attainment of the climate goals of the Paris Agreement. According to them, instead of making accelerated progress, the country, like many others on the continent, is regressing. They therefore urged the National Assembly to review the existing debt management strategy with a view to strengthen it. “Adhering to relevant legal and institutional fiscal frameworks is important in the context of high and rising debt levels. Although the country has a comprehensive legal framework that specifies processes and obligations of government entities to manage debt, these are not always complied with. For example, annual borrowing plans are not made available to the public and borrowing occurs without being attached to any particular projects, contributing to a lack of transparency and accountability.  “National Assembly should review the existing legal and institutional frameworks relevant to debt management with the view of closing existing loopholes and strengthening transparency and enforcement. For example, the Fiscal Responsibility Commission and Debt Management Office should be empowered to sanction breaches of existing laws and regulations. “Lawmakers should carry out loan approvals with proper scrutiny and approvals be subject to public hearings and input. Public disclosure of, for example, the terms and conditions of loans, and borrowing plans are critical steps to increase transparency and accountability in Nigeria.   “The Nigerian government and its decision-makers should reduce its reliance on borrowings from the international capital market and commercial loans. There is a need to more strictly adhere to the provision of the law on maintaining concessional loans,” the group said. While noting that Nigeria’s high debt levels is a function of poor revenue mobilisation through taxes and other means, they urged the federal government to introduce measures that would address the country’s revenue challenge. “An enhanced Debt Sustainability Analysis that integrate climate and other sustainability risks, and climate resilience benefits, as well as estimates of a country’s financing needs for climate change adaptation, mitigation, and achieving the broader goals set out in the 2030 Agenda for the SDGs; “Access to debt restructuring for all debt-distressed, climate-vulnerable low and middle-income countries, and a speeding up of debt relief talks; “A debt restructuring framework that incorporates adequate incentives to ensure private creditors participate and bear a fair share of the burden; “A departure from regressive conditions attached to debt restructuring frameworks (i.e. cutbacks on social spending), giving room to countries to develop their own plans to advance development and climate resilience (guided by SDG commitments and NDCs); “The inclusion of disaster clauses in lending deals with public and private creditors to allow countries to divert debt payments to disaster relief; “The possible establishment of a new Global Debt Authority, designed to operate in an inclusive manner, independent of creditors or debtors, and the development of an international legal framework for sovereign insolvency,” the communiqué read.

Subsidy: NLC in dilemma over planned strike amid CSOs’ pullout

The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) are facing a tough decision on whether to proceed with their planned nationwide protest or cancel it. The Federal Government is making efforts to thwart the protest, with the Chief of Staff to the President, Bola Tinubu’s representative, Femi Gbajabiamila, urging the labour unions to call off the proposed strike. He cited palliative measures announced by the President the previous night as reasons to shelve the protest. He said, “We have laid out the plans, the interventions of Mr. President, as you all heard in his broadcast yesterday, we made it clear that this was just Mr. President’s initial rollout and interventions and that conversations will be ongoing as we go along. “And we appealed to Labour, we did appeal to labour to call off the protests for tomorrow. We found listening ears here and they did agree that they all accepted that Mr. President’s broadcast was a welcome development and that they will go back home to talk to the other leaders that are not present today. So we’re hopeful that they will do the right thing and call off the strike tomorrow.” Adding to the complexity, a Coalition of Civil Society Organisations/Labour Centre has cautioned the NLC and TUC against proceeding with the strike. They expressed concerns about the potential consequences on the nation, fearing that the protest could be hijacked by disgruntled Nigerians benefiting from fuel subsidies, leading to loss of lives and property. This cautionary message was conveyed in a communique issued after a meeting at Lagos Airport Hotel, Ikeja, attended by representatives of various civil society groups. It was attended by Razak Olokoba of Campaign for Dignity in Governance (CDG), Nelson Ekujumi (Centre for Social and Economic Rights), Titi Akosa (Centre for 21st Century Issues), Linus Okoroji (Humanity Services Project), Raji Rasheed Oyewunmi (Yoruba Citizen Action for Change), Gbenga Soloki (Campaign Against Impunity and Domestic Violence), Razaq Oladosu (Grassroots Democratic Initiatives), Ramat Abdulrazak (Women Grassroot Network), among others. Furthermore, 16 Northern-based civil society groups under the Coalition of Arewa Civil Society Organisations have also pulled out from supporting the strike, afraid that it could harm the already fragile economy and inflict further hardship on ordinary citizens. The Federal government, on its part, has pleaded with Organised Labour to suspend the strike, assuring them that they are taking measures to address the hardship caused by the removal of petrol subsidies. However, the NLC remains adamant and insists on proceeding with the national protest, asserting that the palliatives presented by the President are inadequate to alleviate the suffering in the country. In a press briefing at the end of the Presidential Steering Committee on Palliatives, the Chief of Staff to the President, Rt. Hon. Femi Gbajabiamila, expressed hope that the labour unions would reconsider their decision and call off the planned strike after discussions with absent leaders. Meanwhile, the NLC, led by its Deputy President, Comrade Titus Amba, maintained that the President’s palliative measures were insufficient to address the issues at hand.

NLC’s planned shutdown of the country illegal, FG insists

The Federal Government has told the Nigeria Labour Congress, NLC, that its plan to shut down the country on Wednesday, August 2, under the guise of industrial action is illegal.  The NLC had threatened to embark on nationwide protest from August 2 following the failure to reach an agreement with the government on the recent increase in the pump price of petrol.  The Federal Government had instituted a case at the National Industrial Court, Abuja, seeking to stop the NLC from embarking on the strike action.  The court had also made an order stopping the NLC from going ahead with the strike pending the hearing and determination of the suit.  But despite the court order, labour unions have insisted on the mass protest.  The Solicitor-General of the Federation and Permanent Secretary in the Ministry of Justice, Mrs Beatrice Jedy-Agba, in a letter to the NLC, through their lawyer, Mr Femi Falana, SAN, said parties before the court are supposed to maintain the status quo, to respect the pendency of the matter.  In the letter with reference number MJ/CIV/ABJ/316/23 and dated July 31, 2023, the solicitor-general said, “Parties are expected to maintain the status quo even in the absence of a restraining order. However, there was no threat of contempt of court in the clarification provided by this Ministry. Undoubtedly, drawing the attention of NLC and the public to the pendency of the order cannot be equated with threats.  “The issue of peaceful protests and police permit are also not in contention, however, you may wish to be guided by the contents of the Communique issued by the National Executive Council of NLC at the end of its meeting of 27th July 2023. The decision or projected cause of action by NLC is directed principally in furtherance of issues connected with a hike in fuel price and consequential matters of palliatives and workers’ welfare. We assert that it is grossly inappropriate to lead the public protest in respect of issues relating to or connected with the fuel price increases, which are currently before the court!  “From the Communique, it is apparent that the current move by NLC goes beyond peaceful protest by issuing a seven-day ultimatum for government to meet the demands and also embark on a nationwide action to compel the government to reverse alleged anti-worker policies.  “Furthermore, uncontroverted media reports have established that NLC is not planning a peaceful protest but intends to ground the government by endangering public peace, instilling fear in the masses, and precipitating a further crisis. To buttress the above, the Assistant General Secretary of NLC, stated thus: ‘Nigerians should be prepared. That’s what we are saying. Being prepared means you have to stock food in your house and be economical with your movement at this particular point in time so as to avoid being stranded…’ “ “In the same vein, the Nigeria Union of Petroleum & Natural Gas Workers and National Union of Electricity Employees confirmed that they were working towards grounding the supply of fuel and the national electricity grid. The Ag. General Secretary of NUEE stated thus: ‘The NUEE is an affiliate of the NLC and I’ve told you that we will join the strike action. The issue is that if there’s a deadlock between labour and the government; that means that the mass protest is still going on, and definitely electricity workers, as an affiliate of the NLC, will partake in the mass protest. So, all workers in the power sector will join the mass protest on Wednesday, August 2, 2023. It is binding on every staff member to join the strike action. So, if it results in a blackout, the only option is for the government to listen to us if it wants power to return.”  “We reiterate that the interim order clearly restrained NLC from embarking on industrial action of any nature. It is common knowledge that a strike is only a form of industrial action. NLC has expressed the intention to embark on a nationwide action to force the government (employer) to agree to its demands. Furthermore, the participation of workers in the protest will result in restriction, or imitation on, or a delay in the performance of work. The foregoing, inclusive of the purported peaceful protest (in view of its intended aims or purposes), undoubtedly amounts to industrial action.  “It is incumbent on your law firm to sensitize the labour unions that peaceful protests are no justification for disrupting or shutting down essential services, which is tantamount to a strike action.”