…Calls for Robust Action Against Corruption, Thievery, Looting

The Liberation Party of Nigeria (LiP) has seriously frowned at suggestions by the Presidential Technical Advisory Committee (PTAC) that the Federal Government should sell off key public assets in order to raise N4.2 trillion to pay the new minimum wage.

Positing that “There exist other frameworks such as commercialization that can make state-owned enterprises to be effective and efficient,” LiP in a statement by its National Chairman, Prof Idowu Awopetu, contends that, “The issue is to have a robust and transparent governance that would fight corruption, thievery and outright looting of the treasury to preserve or utilize such funds for the benefit of all Nigerians.”

The enterprises recommended for sale are largely in the petroleum, mining and solid minerals sectors. They also include agricultural resources such as the various River Basin Development Authorities, media assets – the Nigerian Television Authority (NTA), Radio Nigeria, News Agency of Nigeria (NAN), Nigeria Film Corporation, stadia and concessions of airports etc.   

Observing that “the country has gone through this route of selling government assets some years ago,” the party says, this was designed “to enrich the political class,” noting that, “most of the privatised companies were never turned around.”

“The sale of government assets such as the Nigerian National Petroleum Corporation (NNPC) should not even be contemplated based on the importance of oil in the country’s development calculus,” the party says.

“It is our view that to generate additional revenue, government should block the looting of the economy, reform the tax administrative system so that the rich can pay more tax; monetize oil receipts at N360.00-U$ to the government; reduce or eliminate waivers, incentives and exemptions thereby increasing revenue for government.”

The party also caution against any hike in VAT from 5% to 7.5%, arguing that this will hurt the populace. “While it may bring additional revenue to states, it will ultimately discourage investment particularly at this point when diversification of the economy is crucial, and unemployment is very high,” the party says.

LiP also wants the whittling down of what it calls “the unsustainable emoluments of politicians,” which currently consumes about 20% of the national budget.

While the party says, “it is committed to operating an economy in which the private sector will be allowed to participate in the economy as much as will be necessary,” it says, “at no point shall the role of the private sector be allowed to conflict with the need for social equality, welfare and national sovereignty.”

“It should be noted that though the N30,000.00 Minimum Wage will bring some instant relief to workers, it is however, a far cry as per the N66,000.00 monthly wage necessary in the context of the cost of living index.”

The party is also of the view that “workers would have some relief if government enacts policies that would return to providing quality education, quality health delivery and housing, among others, to workers and Nigerians in general.”

“There is need to invest massively in various social programmes. Government should implement policies that would change the structure of the economy from that of consumption to production.”

“We need to restate that money saved from fighting corruption, taxing conspicuous consumption of the rich, broadening the tax net and, providing   mass private and public sector employment as well as the provision of basic needs to Nigerian workers, would enhance their welfare rather than a one off sale of state-owned assets,” the party says.

After series of negotiations between the Federal and State Governments, the Organised Private Sector and the Labour Unions, it was agreed that the new National Minimum Wage in the country, should be increased from N18,000 to N30,000.00 monthly. The National Assembly later passed the National Minimum Wage (Repeal and Enactment) Bill 2019 which President Muhammadu Buhari signed into law on April 18, 2019.

However, some states had earlier expressed their inability to pay the new National Minimum Wage. It was within this context that President Buhari inaugurated a Presidential Technical Advisory Committee (PTAC) on January 9, 2019.  The Committee was charged with the following terms of reference:

• To develop and advise government on how to successfully actualise the objective of a seamless implementation of the impending wage increases.
• Identify new revenue sources as well as areas of existing expenditure from where some saving could be made, in order to fund the wage increases without adversely impacting the nation’s development goals as set out in the ERGP.
• Propose a work plan and modalities for the implementation of the salary increases; and
• Any other suggestions that will assist in the implementation of this and future increases.

The PTAC had since submitted its report to the President. One of the key recommendations is for government to sell some state owned enterprises. The underlining meaning of this approach to raise revenue is to privatise state owned assets built by public funds.

Government, according to the reports, needs about N4.2 trillion to be able to pay the new National Minimum Wage. But whether the sale of government assets would sustain the payment of the new wages as being proposed is another kettle of fish.

.