The International Monetary Fund (IMF) says its advice on foreign exchange (FX) rate and subsidy removal was necessary for Nigeria’s macroeconomic stability.

The Washington-based institution reiterated its stance on its policy recommendations to Nigeria in an email to Premium Times on Wednesday.

Abebe Selassie, director of the African department at the IMF, had applauded the economic reforms implemented by President Bola Tinubu’s administration during a press briefing at the just concluded IMF/World Bank meetings in Washington DC., United States.

Selassie said the IMF has consistently advocated for Nigeria’s investment in infrastructure, health, and education; describing the removal of the subsidy as a step which represents a more effective use of public resources.

He said the move would unlock the economy’s vast potential to become more dynamic, attract investments, and drive growth.

Selassie had also said the Nigerian government should direct the savings from petrol subsidy removal to support vulnerable households amid the country’s economic hardship.

However, on October 25, local media reported that the IMF had denied being involved in the removal of the petrol subsidy.

The Nigeria Labour Congress (NLC), on October 28, criticised the international “lender for its denial” of responsibility regarding the Nigerian government’s recent removal of the subsidy.

Speaking on the matter on Wednesday, the IMF said it assessed Nigeria’s petrol subsidy and foreign exchange rate policies prior to the recent reforms but did not consider it “cost-effective”.

“Regarding the petrol subsidy, based on our research and international experience, we do not see this as the most cost-effective way of providing relief to Nigerian citizens,” the lender said.

“This is mainly because the petrol subsidy benefits not just low-income households that need government support, but also high-income and wealthy Nigerians who do not need this financial support from the government.

“Moreover, there is evidence that a share of the subsidised petrol was smuggled to neighbouring countries, where petrol prices were much higher. This means that the petrol subsidy benefitted not only Nigerians but also the citizens of neighbouring countries.

“Thus, removing the petrol subsidy should free resources that the government can allocate to other priority spending items, including social protection, health and education spending, and infrastructure investments.”

The IMF said the fixed exchange rate policy in operations before the recent reforms, was equally not sustainable.

“We have also assessed the viability of the fixed exchange rate regime that Nigeria pursued until mid-2023,” IMF added.

“At the time, not all dollar demand from Nigerians was being met at the official exchange rate. Instead, many Nigerians had to turn to the parallel market and pay a premium of around 60 percent to acquire dollars.

“This means that until mid-2023 some Nigerians were able to purchase dollars at the official rate of around N460 to the US dollar. But many others, at the same time, could only purchase dollars at the parallel market rate of around N750 to the US dollar.

“While some people were able to transact at a subsidized rate, many others had to pay a much higher price. This also put pressures on the CBN’s reserves and was not sustainable.

“By allowing the naira to be determined by market conditions, everyone now has access to US dollars at the same price.”

• ‘We Stand By Our Advice’

On whether the criticisms could lead to the lender’s withdrawal from the country, IMF said its advice was to all its member countries, as summarised in its annual report on each country.

“We stand by our advice, though it’s important to underscore that individual pieces of that advice cannot be viewed in isolation,” the multilateral added.

“Our advice is a comprehensive policy package where all elements are linked to each other. That package seeks to ensure macroeconomic stability and raise living standards in a sustainable fashion.

“Importantly, our advice on petrol subsidies and the exchange rate, is set in a larger, comprehensive policy mix that also includes scaling up social transfers to provide relief to Nigerians who are already suffering from a cost-of-living crisis or who are impacted by policy reforms.”

The IMF also said governments “listen to advice from many corners and then decide on the best course forward”.

Veteran Nollywood actor, Abdulsalam Sanyaolu, popularly known as Charles Olumo and “Agbako”, is dead.

His colleague, Jide Kosoko, announced “Agbako’s” demise in a post on his Instagram page on Thursday.

However, Kosoko failed to reveal the circumstances surrounding “Agbako’s” death.

The movie star wrote, “Good night ooo, Baba Charles. a.k.a “Agbako”, 102 years, “ba wasa ba”. R I P”

“Agbako” was born on February 19, 1923, in Abeokuta, Ogun State.

The thespian initially worked as a mechanic and amateur boxer before embarking on his acting career in 1953 at the Apostolic Church in Mushin, Lagos State.

Over the decades, “Agbako” has become a household name, especially in the Yoruba film industry, known for his roles in numerous films like ‘Taxi Driver’, ‘Jagun’, ‘Amin Orun’, ‘Aiye’, ‘Jayesinmi’, ‘Soworo Ide’, and ‘Igbo Dudu’.

His career, spanning over four decades, showcases his versatility and enduring passion for acting.

The Joint Action Committee of the Non-Academic Staff Union of Educational and Associated Institutions and the Senior Staff Association of Nigerian Universities has declared that the ongoing strike is “a long-term battle” involving high-ranking university officials such as vice-chancellors, bursars, and registrars.

The JAC of SSANU and NASU began an indefinite strike on Monday due to the withholding of their salaries for four months.

Since then, activities in universities nationwide have come to a halt.

In an interview (with The Punch) on Wednesday, SSANU National President Mr. Mohammed Ibrahim confirmed that top university officials, including vice-chancellors, bursars, and registrars, have not received salaries for four months.

He emphasized that universities would remain “completely shut down” until the withheld salaries were paid.

Ibrahim further noted that compliance with the strike is widespread across all universities.

He revealed that the government has made “no invitation or any form of interference” regarding the strike.

“It is a long-term battle because this strike also involves vice-chancellors, bursars, registrars, and other senior administrators who were not paid,” he stated.

“The impact is significant, and no one from the government has reached out to us. We have withdrawn our services, and our members are resolute they will not return to work until all salaries are paid.”

According to him, compliance is “encouraging,” achieving “98 per cent adherence.”

“We have achieved 98 per cent compliance with the strike; it is a total strike if you look around. The remaining two per cent are those who held their congress today, and they will join fully tomorrow,” he explained.

Both Ibrahim and the Vice President of SSANU, Abdussobur Salaam, noted there had been no official government response on the strike.

The previous Minister of Education, Prof. Tahir Mamman, was recently relieved of his position, with Dr. Tunji Alausa set to assume the role. This transition follows President Bola Tinubu’s directive that former ministers must hand over their offices by October 30.

Prof. Mamman was among five ministers dismissed by the President after a Federal Executive Council meeting on Monday.

A primary issue awaiting the new minister, Dr. Alausa, upon taking office is the SSANU and NASU strike.

Salaam mentioned there has been “no official communication from the government regarding the ongoing strike by the union.”

“There’s no update on the ongoing strike, it continues. Some informal contacts were made between the minister of state for education and our union executives, but there’s been no real progress, just an informal appeal,” he said.

“This issue has persisted for a long time, with repeated promises that have not been fulfilled.”

“All our ultimatums have expired, and we still haven’t received any alerts. The recent invitation was just an informal call on the phone. We urge the authorities to take decisive action; we have come too far and can no longer accept empty promises. If we don’t get the alerts we won’t back down,” Salaam asserted.

A statement on Sunday, signed by SSANU National President Ibrahim and NASU General Secretary Peters Adeyemi, noted that the ultimatum given to the Federal Government regarding the withheld salaries had expired by midnight on Sunday.

The unions demand the payment of their four-month withheld salaries, improved remuneration, earned allowances, and implementation of the 2009 agreements with the government.

Additionally, on Wednesday, the National Association of Academic Technologists (NAAT) announced a nationwide protest over its withheld five-month salaries and unfulfilled agreements with the Federal Government.

NAAT plans to picket the Ministry of Finance on November 14 due to the lack of action on the President’s directive to pay withheld salaries.

The protest is scheduled to begin at midnight on November 6, 2024, with all union branches in universities, polytechnics, and colleges of education mobilizing to advance their demands.

NAAT President Ibeji Nwokoma, who declared the protest after a National Executive Council meeting in Abuja, issued a two-week ultimatum beginning on October 30, 2024, as a final opportunity for the Federal Government to address their grievances.

At a media briefing in Abuja, Nwokoma outlined longstanding demands, including payment of five and a half months of withheld salaries and full implementation of a 2009 agreement with NAAT.

He said the agreement includes key items like allowances for academic technologists, provisions for student training programs, and improved staff-to-student ratios.

NAAT urged the government to release funds for upgrading university laboratories and to address broader issues like underfunding and the increase in public universities.

The union had previously given a three-week ultimatum on September 30, 2024, which expired on October 21.

According to Nwokoma, the ultimatum concluded without acknowledgment from government agencies, including the Federal Ministries of Education and Labour and Employment.

NAAT expressed frustration at the government’s “insensitivity,” citing the President’s recent approval of withheld salaries that, according to NAAT, had yet to be implemented by the Ministry of Finance.

The NAAT president announced that within the two-week period, local branches would convene congresses to conduct a referendum on potentially escalating the protest into a full strike.

He warned that if the government failed to act by November 13, 2024, NAAT would begin an indefinite strike, potentially impacting academic schedules and crucial research activities across the higher education sector.

A prepared statement read, “It is quite unfortunate and regrettable too, that despite the President Bola Ahmed Tinubu’s waiver and approval to pay five-and-half month salaries owed NAAT members, the refusal by the Minister of Finance and Coordinating Minister of the Economy to effect this approval raises more questions than answers on the true commitment and sincerity on the part of the Federal Government in resolving the issues.”

“Several efforts were made in the past including a series of letters, protests, visits, notices of ultimatums and several Memorandum of Understanding (MoUs) freely entered between NAAT and Federal Government (i.e MOU of 2017, 2020, 2021 and 2022) as the result of efforts by Federal Ministry of Labour and Employment as conciliator of the Federal Government but all to no avail.”

“Consequent upon the above, the union, having reviewed the situation critically, decided to give the Federal Government an additional two (2) weeks ultimatum, with effect from 30th of October 2024.”

“Meanwhile, the National Executive Council has directed all her branches in universities, polytechnics and colleges of education to hold a nationwide protest to drive home our demands.”

“Within the two-week ultimatum, branches have been directed to hold congresses and conduct a referendum to decide if the union will proceed on strike once the 14-day ultimatum expires on the 13th of November 2024.”

“If at the end of the 14-day ultimatum no positive response from the government, the union will embark on a national protest which will culminate into a total and indefinite strike without recourse to government.”

“It is hoped that the government will avail itself of this window to resolve the issues on the ground, with the view to averting any industrial action.”

“This decision is in line with our concern for the tertiary education system so as not to disrupt the academic calendar which will eventually affect research and practical teaching; laboratory, workshop, farm and studio practices and the attendant monumental loss of resources.”