1st May 2024
Good morning! Nigeria's fuel crisis hikes prices for consumers, Zimbabwe's new gold-backed currency enters circulation, Nigeria government workers get a salary hike and Britain send first voluntary asylum seeker to Rwanda. Here is your daily Roosters Crow:
Nigeria's Fuel Fiasco
Persistent gasoline shortages plagued major Nigerian cities on Tuesday, driving prices sharply upward amid the country's cost-of-living woes. In Lagos and Abuja, prices surpassed 850 naira, while in places like Kano, they soared above 1000 naira. Although NNPC Ltd, the state-owned oil firm, imports at an average of 617 naira, it remains the sole importer due to foreign currency shortages and price caps. Commuters faced long queues, exacerbating frustrations amidst the highest inflation rate in 28 years. NNPC cited logistical challenges, yet its debt hinders crude production for refineries. President Bola Tinubu’s government last year removed subsidies and allowed private firms to import.
Nigeria Boosts Government Workers' Pay
On Tuesday, Nigeria announced salary hikes of between 25% to 35% for government workers, effective from January, amid the nation's severe cost-of-living crisis. The National Salaries, Incomes, and Wages Commission revealed the lowest-paid government employee would earn 450,000 naira annually or 37,500 monthly. The raise applies universally across federal government sectors, encompassing health, education, and security. Separate negotiations are ongoing for a new national minimum wage, last updated in 2019. Nigeria grapples with 33.20% inflation, driven by the removal of petrol subsidies and currency depreciation, prompting tariff hikes to alleviate fiscal pressures.
Britain Sends Asylum Seeker to Rwanda
Britain executed its first asylum seeker relocation to Rwanda under a voluntary initiative, as reported by The Sun Newspaper on Tuesday. The unnamed migrant departed on Monday. Distinct from a forthcoming forced deportation program, the scheme aims to dissuade asylum seekers from crossing the English Channel. Under this plan, the government offers up to £3,000 for relocation to Rwanda, aiding in clearing refugee backlogs. The agreement aligns with existing policies, facilitating safe resettlement and economic development partnerships. Despite legal and political hurdles, the government is set to commence deportation flights within 10 to 12 weeks.
ZiG Introduced
Zimbabwe introduced its new gold-backed currency, ZiG, aiming to stabilize inflation after abandoning the Zimdollar. Trading at 13.4 to the dollar, ZiG faced initial skepticism but drew queues at banks and supermarkets. Despite arrests of illegal forex dealers, authorities set daily withdrawal limits and pledged tight monetary policy. Meanwhile, the Zimbabwe National Statistics Agency discussed blended inflation data, highlighting ZiG's potential impact on the economy amidst past currency woes. Central bank actions included resetting interest rates from 130% to 20%.
