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Viz007: Independent National Electoral Commission (INEC) has declared that results uploaded from polling units during elections cannot be manipulated.https://leadership.ng/2023-uploaded-results-cant-be-manipulated-inec/
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Here we go again. How come every Union in Nigeria is planning to go on STRIKE nowadays. Are there political undertones behind these strikes? |
Pat Utomi wants to be the kingmaker of LP by all means. |
The love of money is the root of all evils. Sometimes, the devil you know is better than the angel you don't know. Labour Party has not been entrusted with power to rule Nigeria and they are already fighting dirty over donations. |
In summary, Nigeria is broke and it will take centuries to pay back these debts. |
With Nigeria’s inflation rate at 19.6 per cent, the highest in 17 years, analysts are warning that the worse may not be over, particularly if the have Central Bank of Nigeria (CBN) does not curtail its lending to the federal government through ways and means to curb the rising cost of living. This is as available data indicates that the CBN has extended a total sum of N19.9 trillion (N20 trillion) in loans to the federal government under its Ways and Means provision as included in the CBN Act. Economists are however divided over the limits of the central bank in advancing loans to the government and embarking on intervention programmes in different sectors of the economy. There are also serious concerns in financial circles that any major shock to the economy, like election spending, agitations by various unions and the removal of the subsidy on Petroleum Motor Spirit, could trigger uncontrollable levels of inflation, eroding the purchasing of millions of Nigerians or even the collapse of the Naira. Some economists have questioned why the bank continues to lend to the federal government in contravention of Section 38 subsection 2 of the CBN Act which limits advances to the government to 5% of the previous year’s revenue. Other economists believe the blame for the uncontrollable inflation lies strictly in the hands of the federal government, which has failed to provide security in critical regions affecting not only production the agricultural, manufacturing and oil sectors. Available data indicates that President Muhammadu Buhari’s administration has relied heavily on Ways and Means as a source of financing its budget deficits. LEADERSHIP Sunday’s findings reveal that the federal government’s borrowing through ways and means has increased by a whopping 2969.75 per cent in the last seven years of this administration. Total government borrowing from the CBN which stood at N648.26 billion as at June 2015 when the government got into power has jumped to N19.91 trillion as at June 2022. This trend, analysts have said, does not bode well for Nigeria, with its low productivity base and heavy dependence on imported finished products. Inflation: CBN Returns Interest On Intervention Programmes To 9% According to analysts, simply increasing money in circulation without a commensurate increase in economic output results in doubling money supply without increasing output, leading to a doubling in prices and a doubling in inflation rate. The Ways and Means provision allows the government to borrow from the Apex Bank if it needs short-term or emergency finance to fund delayed government expected cash receipts of fiscal deficits. However, since the government started experiencing a significant shortfall in revenue, it has relied heavily on the central bank to finance its expenditure programs via Ways and Means. A breakdown of the data shows that from N648.26 billion as at June 2015 the federal government’s borrowing escalated rapidly to N2.23 trillion in December 2016 and then to N3.31 trillion in 2017 and N5.41 trillion in 2018. By the end of 2019, it had grown to N8.72 trillion and an additional borrowing of N4.8 trillion brought the figure to N13.11 trillion at the end of 2020. In the last two years however, the figure has risen further by almost N7 trillion to N19.91 trillion as at June 2022. Nigerian governors, in a meeting with President Muhammadu Buhari in July, raised concern over this, saying trillions of naira chasing a few billion dollars would put pressure on the foreign reserves and the exchange rate. Executive chairman of the Society of Analytical Economics, Nigeria, Prof. Godwin Owoh who has been warning about the various CBN intervention programmes for 10 years now says the Bank has effectively moved from a monetary institution and being a regulator to a fiscal operator. Prof Owoh said Section 38, subsection 2 of the CBN Act restricts the advance the Bank can grant the government to 5% of the previous year’s revenue and must be outstanding beyond six months. The CBN, he said must not grant anymore advance if it goes beyond six months. He also said the advance can only be made for financing a budget deficit, insisting the intervention programmes are alien to any law and the CBN Act. Owoh said spending out of appropriation is opaque and leads to loss of control and is the grand reason the country is facing an inflationary trend. Also commenting on this, renowned economist and former director general of the West African Institute of Financial and Economic Management, Prof. Akpan Ekpo, said the CBN has to unify multiple exchange rates that have impacted the cost of doing business in the import-dependent country. “The CBN has to restrict the ways and means advances,” Ekpo said. Besides government’s heavy dependence on ways and means, experts also say that the high inflation is being propelled by an all-time high in the price of diesel, widespread insecurity and a foreign exchange crisis in the country. Analysts who spoke to LEADERSHIP Sunday on the issue said the fiscal authority should be blamed for the rising inflation rate. Asked why, they quickly point to failure of the federal government to decisively deal with insecurity that has overwhelmed the entire nation, a factor that has almost brought the entire nation on its knees. Nigeria’s insecurity has seriously affected productive activities in the country. Only very little farming activities is currently taking place in Nigeria. Terrorism, kidnapping and banditry have triggered general cost of living in Nigeria. Some experts who also spoke with our correspondent say the nation’s scandalous subsidy regime, high import dependence and 2023 election spendings are also responsible for the rise in headline inflation. Many economic experts said the CBN is not to blame for the rising inflation rate. The experts say the monetary authorities have done more than is expected of them. Economic diversification, local manufacturing, favourable policies, infrastructure and security are major instruments to reducing inflation and addressing exchange rate issues in the nation. As it stands, beyond the economic shocks that was orchestrated by the Russian/Ukraine crisis, Nigeria’s biggest challenge is the high level of insecurity across the country. The rising inflationary figure is due to the harsh combination of persisting supply chain disruptions and pent-up demand. The CBN has over the years engaged in sustained intervention programmes that expected to make inflation abate as food supply improves and the fiscal authority sustain its efforts to tame the legacy structural challenges which put upward pressure on domestic price levels. Economic experts have urged the fiscal authorities to expand and sustain its support for all the recently deployed stimuli to the real sector of the economy. An economic analyst, Stephen Kanabe who belongs to the league of those who said the causes of the inflation pressures do not have direct bearing on the CBN, point to the fact that the considerable rise in core inflation resulted largely from the rising cost of production due to high energy prices associated with the persistent disruptions to power supply, hike in electricity tariff, continued scarcity of Premium Motor Spirit (PMS), and rising price of Automotive Gas Oil (AGO). “CBN does not have regulatory or operational role to influence activities in those areas. Then, how do you blame it for what happens in those areas, which are not responsible for the hike in inflation. CBN’s role is to act based on market realities. And the reality now is that inflation is high, the CBN has to tighten to control money in circulation,” he stated. “The CBN is not to blame,” says an investment consultant Shuaib Kabiru who agreed with the earlier warning by the International Monetary Fund (IMF) which said the 3.4 per cent real Gross Domestic Growth outlook for Nigeria is now being challenged by factors capable of undermining the growth projection. He noted that the CBN has released intervention programmes targeted at stimulating productivity in agriculture, manufacturing/industries, energy/infrastructure, healthcare, exports and micro, small & medium enterprises (MSMEs). The CBN, through its several intervention funds, had pumped N4.47 trillion into the Nigerian economy. Between May and June 2022, under the Anchor Borrowers’ Programme (ABP), the Bank released the sum of N3.62 billion, as disbursements to 12 projects for the cultivation of rice, wheat, and maize, bringing the cumulative disbursement under the programme to N1.01 trillion, to over 4.21 million smallholder farmers cultivating 21 commodities across the country. The Bank also disbursed N3.72 billion to finance three large-scale agricultural projects under the Commercial Agriculture Credit Scheme (CACS). These disbursements brought the cumulative disbursements under this scheme to N744.32 billion for 678 projects in agro-production and agro-processing. As part of its effort to support the manufacturing sector, the CBN disbursed the sum of N113.08 billion to 19 new projects under the Real Sector Facility. The funds were utilized for both greenfield and brownfield projects under the COVID-19 Intervention for the Manufacturing Sector (CIMS) and the Real Sector Support Facility from Differentiated Cash Reserve Requirement (RSSF-DCRR). Cumulative disbursements under the Real Sector Facility currently stands at N2.183 trillion for the financing of 414 real sector projects across the country. Under the 100 for 100 Policy on Production and Productivity, the Bank has released N9.98 billion for five projects, bringing the cumulative disbursements under the intervention to N68.13 billion for 48 projects, comprising 26 in manufacturing, 17 in agriculture, three in healthcare and two in the services sector. In the healthcare sector, the Bank disbursed N4.44 billion to three healthcare projects under the Healthcare Sector Intervention Facility (HSIF), bringing the cumulative disbursements to N133.42 billion for 129 projects, comprising 76 hospitals, 32 pharmaceuticals and 21 other healthcare services. To further expand the nation’s non-oil export basket under the Export Facilitation Initiative (EFI), the Bank released the sum of N36.00 billion for five projects in domestic production and value addition of cocoa and sesame seeds towards improving non-oil foreign currency revenue. To improve electricity supply in order to lower the overall cost of production in the real sector, the Bank also intervened in the power sector to facilitate the deployment of enabling infrastructure. Summarily, the sum of N2.53 billion was disbursed to Distribution Companies (DisCos) for their Operational Expenditure (OpEx) and Capital Expenditure (CapEx), under the Nigeria Electricity Market Stabilization Facility – Phase 2 (NEMSF-2). Cumulative disbursement under the NEMSF-2 currently stands at N254.46 billion. Under the National Mass Metering Programme (NMMP), the Bank disbursed N47.82 billion for the procurement and installation of 865,956 meters across the country. In effect, currency in circulation which is the physical cash in the hands of the general public and in the vaults of the Deposit Money Banks, as at end of June this year stood at N3.26 trillion as against N1.56 trillion which it was as at June 2015. The June 2022 figure however shows a N72.5 billion decline compared to N3.33 trillion that was recorded as at the end of May 2022. At the end of last year, currency in circulation stood at N3.32 trillion. The question economists have been asking is whether the CBN is pouring money into unproductive sectors leading to inflationary trends. Lecturer in Economics Department at the University of Lagos Babatunde Adeoye said Nigeria needs to take steps to make the country productive in manufacturing and make the environment conducive for foreign direct invest. His argues that Nigeria must be safe to get the desired investors to come and invest in Nigeria. “You do not expect an investor to take his portfolio of resources to a country that is not safe. These are some of the key fundamentals we need to fix,” Adeoye said at the first biennial international 2-day conference in Lagos. Latest data by the NBS showed that Inflation for July 2022 rose to 19.65 per cent, the highest level of fast rising prices of goods and services the country has witnessed since September 2005 when it was 24.31 per cent. Inflation has stubbornly remained above the Central Bank of Nigeria single digit band since 2016. As against the normal drivers of inflation such as too much money in circulation, planting season or increases in petrol prices, some analysts say the current drivers of inflation have been widespread insecurity in the country which is fuelling food shortages across board as well as the increased taxations. Asides these, they also pointed out the high cost of diesel which is a basic component of production for most consumer goods manufacturers as well as corporate organisations. The price of diesel which fuels the economy in the absence of stable electricity supply has risen from N250 per litre in the beginning of this year to N800 per litre. The scarcity of foreign exchange which has seen the value of the naira plummet, thus impacting prices of imported goods in the country was also fingered as a major driver of inflation in the country. The value of the naira has since depreciated to over N700 to the dollar at the parallel market as scarcity continues at the official window. These, alongside the impact of the Russian war against Ukraine and the lingering impact of the COVID-19 pandemic on the global economy which has spurred inflation across nations. The International Monetary Fund had said global inflation is expected to peak in the second quarter of 2022 but expected to begin to moderate before the end of the year. Commenting on the latest inflation figures, Chief Executive of Centre for the Promotion of Private Enterprise (CPPE) and former Director General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf said the heightened inflationary pressure in the Nigerian economy remains very troubling. “The major inflation drivers have not abated, if anything, they have become even more intense. These factors include transportation costs, logistics challenges, exchange rate depreciation, forex liquidity issues, hike in energy prices, climate change, insecurity in many farming communities and structural bottlenecks to production. These are basically supply side issues. Any mitigation measures would have to be situated in the context of these factors. “The accelerated fiscal deficit financing by the CBN is a significant inflation driver. The financing of fiscal deficit has been elevated to disturbing levels with huge implications for money supply and consequent effect on inflation. CBN financing of deficit is high powered money and very inflationary. It is inflation tax.” As at July this year, the CBN through its several intervention funds had pumped N4.47 trillion into the Nigerian economy. This is aside its finances to the federal government through ways and means. To curb the rising inflation, the CBN had taken an hawkish stance at the last two monetary policy meetings held this year but analysts say this is not enough to curb the spiralling rise in prices of goods and services in the country. Head, Financial Institutions Ratings at Agusto& Co, Ayokunle Olubunmi, explained that monetary policies alone can not address the current inflation which is mainly driven by supply side. Olubunmi, who pointed out that inflationary pressures from electioneering activities is yet to be reflected noted that “the external impact with the challenges in the economy is significantly affecting businesses and unfortunately, it is going to be very difficult to tame this kind of inflation because it is not demand pull. “It is from the supply side assuming it is demand pull then you can use various monetary policies to be able to control it. However for this it has to be the fiscal authorities that has to do something and to now make things worse most of the factors causing the inflation are external induced. Look at the exchange rate. Analysts at Agusto&Co had noted that for Nigeria, deep-seated structural deficiencies, which have heightened the country’s susceptibility to external shocks, have become even more apparent. Despite a strong recovery in the non-oil sectors, GDP growth slowed in H1’22 to 3.28 per cent from 4.01 per cent in H2’21, but the overarching development was the ripple effect of the Russia-Ukraine conflict, which manifested primarily in the form of a surge in headline inflation. The global wheat price surge is being exacerbated by the exchange rate pass-through effect, which is driving food inflation. Meanwhile, the surge in diesel prices, has given Nigerians a glimpse of the realities of a deregulated petrol market and is contributing significantly to higher production and logistics costs which are driving inflation. Yusuf had pointed out that “Mounting inflationary pressures weakens purchasing power of citizens as real incomes are eroded, it aggravates pressure on production costs, negatively impacts profitability. This erodes shareholders value and undermines investors’ confidence. https://leadership.ng/high-inflation-cbn-lending-to-federal-govt-rises-by-2969-in-7-years/ |
Why are countries trapping moneys of other countries? |
•Nigerians will soon be flying out from neighbouring countries —Foreign Airlines Association FOREIGN airlines operating into Nigeria have concluded plans to blacklist the country should the Federal Government fail to remit their over $600 million trapped in the Central Bank of Nigeria. This indication followed announcement earlier made by Emirates airlines to stop its operations into Nigeria effective September 1st, 2022 to protest its accrued revenue amounting to $85 million stuck in Nigeria. Information gathered by Saturday Tribune has shown that the pull out of Emirates may be the beginning of the total collapse of the country’s international air transport as majority of the airlines have given the government up till December to release their trapped funds or have them withdraw their services from Nigeria. Confirming the development to the Saturday Tribune, the president of the National Association of Nigeria Travel Agencies (NANTA), Mrs Suzan Akporiaye said that some of the affected foreign carriers had already informed her of plan to shutdown their operations in Nigeria as a way of avoiding a further increase in the amount of their trapped funds. According to Akporiaye: “I don’t know whether the government wants the situation to be so bad that the airlines have to stop flying to Nigeria, this is just the beginning, Emirates just started it but there are plans from other airlines from information reaching me, other foreign airlines are planning the same thing. Like I said you wouldn’t blame them, some of the airlines are saying that if by December there is no improvement that they will stop flying into Nigeria, but does our government want to wait for that to happen before they start running around. “Emirates attributed reasons for its suspension of flights to the lack of improvement in the situation. Nobody is talking to the foreign airlines, even the minister of aviation is not talking to them to even let the airlines know if the government is doing something to mitigate what is going on. It’s a sad situation that we shouldn’t have allowed to get to this stage.” Speaking on the announcement by Emirates to suspend flights into Nigeria, the NANTA president expressed reservations about the lack of patience displayed by the UAE airlines before deciding to pull its operations out of the country. She, however, push the blame on the federal government. Her words: “Emirates is right, they are a business entity. if they are not getting their funds they have every right to take whatever decision they want to take. I would have wished that they were a little bit more patient just like some other airlines that have told me that that they will hold on and be patient till the end of the year and that if nothing happens that they will stop flying, that is the aspect I felt Emirates should have followed because of the relationship and because of the fact that they know it is not a deliberate act by Nigeria not to pay their money, then again, it’s not their fault in any way, as a matter of fact it’s actually the fault of the Nigerian government. “Remember the Bilateral Air Service Agreements (BASA) signed between the foreign countries of the airlines and Nigeria says the airlines must be able to repatriate their funds unhindered and Nigeria as a country has not been complying with that and because Nigeria is not complying with that part of the BASA agreement, the airlines have every right to take any step they want to take even to the extent of stopping their flights into and out of Nigeria, yes they do. “We have failed in our own part of the agreement, we need to accept that it is the fault of the Nigerian government as it is but then they have to quickly come out to mitigate the crisis that is looming and staring us in the face. In fact, we are already in the crisis, we are touching it already as it is and how can they address this, is that let the government put the airlines’ funds on their priority list. So as it is now, we all know there is a global crisis no doubt and Nigeria like every other country is not exempted. Ours is just a peculiar case because of our population and Nigerians really travel and so ours will always be worse than any other country, look at the statistics, it’s not only Nigeria that has airlines’ trapped funds, it’s just that Nigeria has the highest so it’s a global crisis everywhere. What the government should do is to put the airlines funds on the priority list, call them for a meeting and let them know this is what you are about to do, telling them you will be able to get them certain percentage of their trapped funds and if the airlines hear this from government they will soft-pedal.” Akporiaye while talking on why the airlines need to be placed on the priority list premised her position on the fact benefits inherent in having foreigners coming to invest and do business in Nigeria as such foreigners come to spend foreign currency and not Naira. What Transpired During Obasanjo, Tinubu’s Meeting — Gbajabiamila 5 Software Applications You Should Master To Be Effective In The Corporate World How To Minimise Disagreements When Planning A Wedding “Let me mention here, one of the reasons why we need to place the airlines on the priority list is because we need the foreigners to begin to come to Nigeria, we have forex crisis no doubt and when foreigners come in either as visitors, businessmen or as investors, whichever way they are not going to be spending Naira but dollars. So aviation is an avenue for Nigeria to be receiving foreign currencies no matter how small but at least it’s coming in. So if they don’t place them on the priority list all the foreign carriers will stop flying into Nigeria, meaning no foreigner will come into Nigeria to spend foreign currency in our country, no investor will be able to come and invest in foreign currency and when foreign investors come in they spend foreign currencies and not Naira. So we need these investors to continue to come in even it may be the Nigerians in diaspora coming to establish one investment or the other, we need them to continue to come in. The only window we need to have to continue to get foreign currencies into our economy is to keep aviation open and let the airlines continue to fly in. Once that is not there then you have automatically shut down the window.” Supporting the foreign carriers, another travel expert who spoke under the condition of anonymity declared: “I have predicted this trend and it will continue. The Federal Government of Nigeria should ensure that it honours international commitments and repatriate blocked airline sales proceeds from Nigeria. Airlines are not charities and have high operational costs. According to reports Emirates Airlines have taken a wise and risk-averse decision and other airlines will implement different measures to mitigate their risks and financial exposure in this market.” This is just as the cleaning house for the international airlines around the globe, International Air Transport Association (IATA) blamed the federal government for failing to heed its warnings on the subsequent negative effects the continued withholding of the airlines’ funds will have on Nigerians. According to the IATA’s Regional Vice-President for Africa and the Middle East Kamil Alawahdi: “This is airline money and its repatriation is protected by international agreements in which Nigeria participates. IATA’s many warnings that failure to restore timely repatriation will hurt Nigeria with reduced air connectivity are proving true with the withdrawal of Emirates from the market. Airlines cannot be expected to fly if they cannot realize the revenue from ticket sales. Loss of air connectivity harms the local economy, hurts investor confidence, impacts jobs and people’s livelihoods. It’s time for the Government of Nigeria to prioritize the release of airline funds before more damage is done.” Among the over 27 foreign carriers operating into Nigeria include British Airways, Virgin Atlantic, Lufthansa, KLM/ Air France, Delta Airlines, Turkish Airlines, Emirates, Qatar Airways, South African Airways, Ethiopian Airline, Egypt Air and many others. The total pullout of the foreign airlines may mean cutting the country from the major parts of the world where Nigerians enjoy traveling to for either business, pleasures and even medical tourism. Consequences Chairman of Association of Foreign Airlines Representatives in Nigeria (AFARN). Mr Kingsley Nwokeoma, told Saturday Tribune on Friday that the consequence of the blacklist will be Nigerians having to go to neighbouring countries to fly out to other parts of the world. “This has been a recurring decimal in the industry. The implications are: that more airlines will decrease frequencies as some have done already, and others might also stop their operations in Nigeria. “The consequences will be (Nigerian) air travellers will have to go to neighbouring countries to travel to various climes,” he said. Economy class ticket on Lagos/London route N2.3m There is fire on the mountain for Nigerian air travelers on both local and international routes as both local and foreign carriers have further increased their fares. Saturday Tribune on Friday found that for British Airways, an economy class ticket between Lagos and London route that used to attract between N350,000 and N500,000 has now skyrocketed to N2.3 million while an upper class cabin ticket is now sold for N5.3 million. Virgin Atlantic is also around that range. The high fares are however not limited to the foreign routes as even a one hour flight from Lagos to Abuja, for example has also increased to N200,000 or more as against the former N25,000 to N50,000. The high fares particularly on the international routes has led to a sharp decline in the numbers of Nigerians traveling out as attested to by the near half empty departure hall of the international wing of the Murtala Muhammed Airport contrary to the usual heavy presence of passengers that used to abound there. Many of the aviation stakeholders spoken to by the Saturday Tribune have attributed the unaffordable fares to many reasons ranging from the high price of aviation fuel, devaluation of the Naira, to the lack of foreign exchange. In his reaction, Director at the Zenith Travels and a member of Aviation Round Table (ART), Mr Olumide Ohunayo traced the exorbitant fares on the international routes in particular to some measures so far taken by the foreign carriers to cushion the effects of their over $600 million funds trapped in the Central Bank of Nigeria which they could not repatriate to their home countries. Olumide declared: “The concurrent increase in the price of aviation fuel, Jet A1, the fallen value of the Naira and the withholding of the foreign airlines money by the CBN have all come together to make the fares out of Nigeria higher than normal. “The airlines have brought in some checks that if you are flying from outside into Nigeria, you can no longer buy their cheap tickets from Nigeria, you can only buy their tickets from outside and when you are buying from outside, it’s those crazy fares you will see and if you are in Nigeria, it’s those crazy fares you will see. That’s what they have done to safeguard themselves to cushion the effects of these triple issues that have bedeviled the foreign airlines in particular now. “What it says is that if you have to fly now you must have adequate cash liquid to fly and if you have anybody outside Nigeria coming in, you cannot buy internally you have to buy dollars to send outside to buy those tickets and that is the situation we have found ourselves. What will happen is that like today, we have seen that Emirates has stopped flying, we are to see some airlines reducing their frequencies and capacities and might cut down on some routes to Nigeria and might have total stoppage as Emirates has just done today even the oil marketers supplying them aviation fuel are not accepting Naira from them. That’s where we are now.” In his own comment, the managing director of Centurion Aviation Security and a onetime military commandant of the Murtala Muhammed Airport, Group Captain John Ojikutu, retired, who described what has been happening as nothing unexpected in view of the rise in the price of aviation fuel and the sharp difference between the values of the Naira to the Dollar. He blamed the domestic airline operators for failing to comply with an earlier directives as far back as two decades ago that the local airlines fares on the domestic routes should be factored along the Dollar/Naira rates. “What is happening in the commercial aviation sector is not unexpected if the operators have been watching the trends of the fuel prices and the dollar/naira rates since the year 2000. None of them took note of the former Federal Civil Aviation Authority’s (FCAA), now Nigerian Civil Aviation Authority (NCAA) directive in 1989/90 that air fares should be factored along the dollar/naira rates. About that time when fuel was being refined locally and dollar/ naira rate was $/40, average air fare was between N3,800 to N4,000. “Since the advent of the civil administration in 1999/2000, we have been importing fuel and the prices have steadily been increasing from N80 to N120, N180, N200 per liter and now close to N900 and at the same trend, the dollar/ naira rate has increased from N180/$ to now N700/$. All these did not happen this year but over 20 years. Most of the airlines operators today are just about 10 years in operation except Aero. What were their business plans before they came in?” Suggesting the way out, Ojikutu called on those in government to stop the corruption and stealing surrounding crude oil exportation and importation of fuel and the prompt commissioning of the Dangote Refineries that was to come into operation in 2019 and postponed now to 2023. “Sell out the four NNPC Refineries to willing but credible foreign or local companies to stop the wastages of funds for the repairs that has been going on in the last 20 years. Repair the pipelines that are supplying fuel from the Atlas Cove and the NNPC deports to the airports and stop the bridging of the supply with truck tankers; direct the operators to open forex domiciliary account with the CBN where all their forex earnings MUST be deposited and the naira equivalent given to them which can be returned whenever the needs arise. No operator should benefit from the forex domiciliary account except it has deposit in it and the dollar/naira rates are increasing and not curtailed.” Many other key players who spoke to Saturday Tribune have agreed that on the whole, local air fares cannot go down as long as the importation of fuel continues while on the foreign routes, Nigerians will continue to lament unless the foreign airlines’ trapped funds are released to enable them relax the stringent measures. https://tribuneonlineng.com/foreign-airlines-to-blacklist-nigeria-by-december-over-trapped-funds-nanta/ |
Jennifer663:But we can borrow to buy luxury SUVs for Niger Republic. |
Malory:Of course now. |
I smell political innuendo and undertones behind the revocation of these licenses. If they start to sing APC PRAISES, their debts will be forgiven. |
Buhari is trying to say Nigeria is very broke and is unable to increase salaries of workers. However, Buhari is willing to borrow billions of dollars to fund railway project linking Niger Republic to Nigeria and buying luxury SUVs for that same country. Isn't this unwise. |
President Muhammadu Buhari has stated that the reason the FG cannot review salaries for civil servants is due to revenue constraints caused by crude oil theft which is affecting Nigeria’s revenue potential.https://nairametrics.com/2022/08/20/why-fg-cannot-review-salaries-for-civil-servants-buhari/
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Most of these media houses are not making enough money that can even sustain payment of their staff and other operational costs. This means they maybe unable to pay their debt to NBC, and this will result in hundreds of job losses. |
Bursts of reactions yesterday trailed the decision by the National Broadcasting Commission (NBC) to revoke the licenses of 52 broadcast stations across the country over indebtedness to the regulatory commission. Director-general of the NBC, Malam Balarabe Shehu Ilelah, who made the announcement while briefing journalists in Abuja yesterday, said the stations owe the commission N2.6 billion from 2015 to 2021. Ilelah directed commission’s state offices to liaise with security agencies to commence the enforcement of the operation within the next 24 hours. He noted there were no political motives in revoking the license of the debtor-broadcast stations. But professional media bodies sought understanding from the NBC, asking it to rescind its decision on the 52 stations listed for shutdown and license revocation. The stakeholders noted that it would lead to proliferation of fake news and the loss of thousands of jobs in a country where jobs are scarce. They said it is a known fact that media income has seriously nosedived as a result of the global impact of COVID-19 on the general economy which had negative consequences on the income of television and radio stations. Those who expressed their views on the issue include the Broadcasting Organizations of Nigeria (BON), the Nigerian Guild of Editors (NGE), Socio-Economic Rights and Accountability Project (SERAP), Nigeria Union of Journalists (NUJ) and Media Rights Agenda (MRA). The executive secretary, BON, Dr Yemisi Bamgbose, reminded the NBC of its intervention on the matter in the recent past which facilitated debt reconciliation and payment of backlog of some stations, and agreed staggered payments for others. On the premise of hostile economic situation, he said that media income nosedived as a result of the global impact of COVID-19, adding that the broadcast media remains one of the very few sectors that did not shut down their operations to keep information flow during the pandemic, with the attendant health risks and economic situation. “The efforts of the media in overcoming the pandemic cannot be overemphasised,” he said, adding that most stations have not recovered till date from economic woes occasioned by Covid-19 as stations were running at loss occasioned by shutdown of other sectors, including advertising”, he noted. Within the last one year, he said broadcast media houses had been groaning under the heavy burden created by the high cost of running the stations, specifically the cost of diesel which has gone up beyond reach. “While many sectors have closed operations as a result of the current economic problems, radio and television stations remained on air at a loss recognising the essence of prompt information in a precarious situation like ours,” he said. On escalation of social media impact, Bamgbose argued that state stations provide verified information to the rural areas and closing the 54 stations will negate the efforts of the government in fighting insurgency, which may lead to regrettable consequences. “This will give room to the thriving of the social media with its attendance consequence,” he said. Bamgbose also said the closure of the 54 stations will throw thousands of workers into the already over saturated labour market, thereby taking food out of the tables of millions of people. “Stations shutdown will lead to the non-transmission of the already booked commercial/adverts thereby compounding their economic problems as advertisers will not pay for commercials not transmitted. “We are appealing to NBC to allow further intervention of BON on this matter. NBC should allow the implementation of the debt recovery template already submitted by BON. NBC should kindly withdraw the shutdown and revocation order. We assure you of our support at all times,” he added. Also, the Nigerian Guild of Editors (NGE) expressed concern over the shutting down of the broadcast stations by NBC. In a statement signed by its president, Mustapha Isah and the general secretary, Iyobosa Uwugiaren, the professional body of all the editors in Nigeria warned that the action, if not reversed, will lead to the loss of thousands of jobs in a country where jobs are scarce. The statement noted: “The NGE is worried because media houses, which played and continue to play a key role in the nurturing and development of democracy can’t just be off air no matter the reasons. “While the Guild is not against broadcast stations fulfilling their financial obligations to the NBC, we note that the current harsh operating environment that has crippled every sector in our nation was not taken into account by NBC before its action. “Currently, it is difficult for private stations to import broadcast equipment due to the high exchange rate. We are all aware of the high operational cost, including the cost of diesel to power their generating sets,” the NGE stated. The Guild added that several broadcast stations are just managing to survive in the midst of the high competition in the industry following the licencing of hundreds of more stations by NBC. The NGE called for a review of the NBC Act to increase the lifespan of a broadcast licence from five to at least 10 years. The body of editors also advocated a reduction of the licence fees considering the fact that several broadcast stations now operate in the country, saying, for instance, the Lagos zone alone now has close to 50 radio stations. The NGE tasked the NBC to enter into dialogue with the affected stations to restructure the debts owed and work out convenient payment period to ensure their survival. The statement continued: “A caring government should be concerned about the possibility of job losses than revenue generation. After all, one of the functions of NBC is working for the survival and the development of the broadcast industry.” “A critical stakeholder in the nation’s democratic space cannot be shut out at this critical moment of our democracy, especially when the country is preparing for the 2023 general election.” The NGE urged the Broadcasting Organisations of Nigeria and the Independent Broadcasting Organisation to enter into a dialogue with the NBC to find a lasting solution to the recurring issue of licence renewal fees, which often leads to threats of shutdown. On its part, SERAP vowed to sue the Buhari administration for the revocation of the licences. SERAP said, “We’re suing the Buhari administration over its arbitrary decision to revoke the licences of 52 broadcast stations, and to deprive the public access to information about critical developments in Nigeria they have a right to know.” The group stated that the decision by the government to revoke the licences of over 50 television and radio stations is a deliberate ploy to stifle media freedom, free expression, and access to information in Nigeria. Also, MRA described the development as ill-advised, insensitive, and antithetical to the interests of the Nigerian public. In a statement by its head of Legal Department, Ms Obioma Okonkwo, MRA said by the revocation of the broadcast licenses of so many stations for alleged non-payment of their licence fees, NBC was prioritizing its desire to make money off the broadcasters over the interest of citizens of the country. Okonkwo claimed that the ultimate effect of NBC’s action is to deprive millions of Nigerians access to information as well as their rights and ability to freely express themselves through these stations. She stated: “We are shocked by this naked display by the NBC of a lack of appreciation of its principal role which is to contribute to the emergence of a knowledge society. Rather, it has chosen to create an environment in which millions of Nigerians will wallow in ignorance, deprived of access to crucial information that they need to make critical decisions in their lives or to enhance their livelihoods. “The action of the NBC has only worsened the prevailing lopsidedness in the broadcasting landscape in Nigeria which was already dominated by government-owned broadcasting stations but is now under the monopolistic control of Federal Government-owned stations, which will be almost unchallenged, with the result that citizens will now be fed unmitigated propaganda by these remaining stations”. Okonkwo also accused NBC of being insensitive to the harsh economic environment under which the broadcast stations have operated over the last two and a half years, pointing out that the national economy has been ravaged by the COVID-19 pandemic itself and the measures taken by the government in response to the pandemic. She called on NBC to reverse its decision in the public interest to avoid creating a society of predominantly ignorant citizens, even as she advised that the need to ensure that Nigerians are adequately informed through the media should supersede any other consideration by NBC. She also advised the commission to liaise with the broadcasting stations to identify the challenges facing the industry and come up with realistic solutions to the identified challenges. Also, the NUJ described the decision of the NBC to revoke the licenses of the broadcast stations nationwide over-indebtedness as a hasty decision, noting that it was ill advised. National president of the NUJ, Chris Isiguzo, argued that NBC’s action was ill-timed and reckless. “Although the director general of NBC, Malam Balarabe Shehu Ilelah claimed that this had no political motives, yet we insist that the action was ill timed and reckless,” he said. He noted that the wholesale revocation of licences at this critical time of insecurity in the country appears to be a decision taken without careful prior deliberation, consultation or counsel. He stated: “While we regret the inability of these broadcast stations to fulfill their obligations to NBC, in-view of dwindling resources, we caution against such large scale clampdown of broadcast stations in disregard to security issues and the attendant consequence. We cannot afford the unpleasant outcome of such media blackout at this time. “We call on NBC to exercise more restraint on this issue in consideration of national security and allow for more dialogue and consultation to find a better way of dealing with the situation,” he added. The NBC boss urged the stations to pay their fees before 24 hours to avert total disconnection. Earlier in May 2022, he had said NBC published in the national dailies the list of licensees that are indebted to the commission, and granted them two weeks to renew their licenses and pay their debts or consider their licenses revoked, frequencies withdrawn and the withdrawn frequencies reassigned to others who are ready to abide by the necessary requirements. Ilelah said three months after the publication, some licensees were yet to pay their outstanding debts, in contravention of the National Broadcasting Commission Act CAP N11, Laws of the Federation of Nigeria, 2004, particularly Section 10(a) of the third schedule of the Act. In view of this development, he said the continued operation of the debtor stations is illegal and constitutes a threat to national security. “Therefore, after due consideration, the NBC hereby announces the revocation of the licenses of the under-listed stations and gives them 24 hours to shut down their operations. Our offices nationwide are hereby directed to collaborate with security agencies to ensure immediate compliance,” the NBC DG stated. The stations whose licenses were revoked include Africa Independent Television (AIT) and its sister radio station, Raypower FM and Silverbird Television. Other affected stations are Rhythm FM (Silverbird Communications Ltd), Greetings FM (Greetings Media Ltd), Tao FM (Ovidi Communications Ltd), Zuma FM (Zuma FM Ltd), Crowther FM (Crowther Communications Ltd), WE FM (Kings Broadcasting Ltd), Linksman International ltd, Bomay Broadcasting Services Ltd, MITV (Murhi International Group Ltd), Classic FM (Pinkt Nigeria Ltd), Classic FM (Pinkt Nigeria Ltd), Classic TV (Pinkt Nigeria Ltd), Beat FM (Megalectrics LTD), Cooper Communications Ltd, Splash FM (West Midlands Ltd), Rock City FM (Boot Communications Ltd), Family FM (Kalaks Investments Nig. Ltd), Space FM (Creazioni Nig. Ltd), Radio Jeremi (Radio Jeremi ltd), Wave FM (South Atlantic Media Ltd), Kogi State Broadcasting Corporation, Kwara State Broadcasting Corporation, Niger State Broadcasting Corporation, Breeze FM (Bays Water ltd), Vibes FM (Vibes Communication ltd) and Family Love FM (Multimesh Broadcasting Co. ltd). The rest are Gombe State Broadcasting Corporation, Lagos State Broadcasting Corporation, Osun State Broadcasting Corporation, Ogun State Broadcasting Corporation, Ondo State Broadcasting Corporation, Rivers State Broadcasting Corporation, Bayelsa State Broadcasting Corporation, Cross River State Broadcasting Corporation, Imo State Broadcasting Corporation, Anambra State Broadcasting Corporation, Borno State Broadcasting Corporation, Yobe State Broadcasting Corporation, Sokoto State Broadcasting Corporation, Zamfara State Broadcasting Corporation, Kebbi State Broadcasting Corporation, Jigawa State Broadcasting Corporation, Kaduna State Broadcasting Corporation, and Katsina State Broadcasting Corporation. Speaking further, the NBC DG said all broadcast stations who have not renewed their licenses for the current duration are advised to do so within the next 30 days to avoid sanctions. “The Commission also calls on all IPTV (Internet Protocol Television) and all other broadcast stations that are streaming online to register with the Commission to avoid disconnection. “Broadcasters should note that having a DTT or FM license does not warrant a broadcaster to stream online; they are two different licenses,” he noted. He added that they’ve been in talks with the media houses for more than a year, but they refused to revert. https://leadership.ng/angst-over-revocation-of-ait-silverbird-52-others-licenses/ |
When Federal Government came up with the "No work, no pay policy", I knew it was a joke. That 6 months salary owed by the government during the strike will be another issue and must be paid before further negotiations are made. |
The federal government has blamed its inability to negotiate with university lecturers on insistence by the Academic Staff Union of Universities (ASUU) that they must be paid salaries for the six months they had been on strike.https://leadership.ng/asuus-insistence-on-6-month-salary-stalling-negotiations-federal-govt/
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The rift within the PDP is beyond Atiku the Unifier to amend and unify all waring factions at this point. |
There is suspense in the Peoples Democratic Party (PDP) as loyalists of the party’s flagbearer, Atiku Abubakar and Rivers State governor Nyesom Wike meet today to reconcile the two parties.https://leadership.ng/suspense-in-pdp-as-atiku-wike-camps-meet-today/
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University Salary Structure (USS) which ASUU demands can be accomplished easily by Federal Government if all misappropriation of revenues and theft and leakages within the system are stopped. |
The Academic Staff Union Of Universities (ASUU) has explained why it rejected the federal government’s offer of academic salary structure.https://leadership.ng/why-we-rejected-federal-govts-salary-structure-ASUU/
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Almost N1 trillion. How many centuries will it take to pay this debt? |
Power generation and distribution companies owe Nigerian banks N836.09bn amid the lingering problems plaguing the sector since it was privatised over eight years ago.https://punchng.com/gencos-discos-owe-banks-n836bn-amid-crisis/
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Hope the server won't dissappear like it did after 2019 general elections? |
Hope they won't deny saying such after the elections? |
The Chairman of the Independent National Electoral Commission (INEC), Prof. Mahmood Yakubu, on Wednesday promised that the results of the 2023 general elections would be transmitted electronically.https://dailytrust.com/2023-e-transmission-of-election-results-has-come-to-stay-inec
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Governors of the 36 states of the federation yesterday lost their cool and descended verbally on the attorney-general of the federation (AGF) and minister of Justice, Abubakar Malami (SAN), over his utterances in respect of their stance on deduction of $418 million from the Paris Club refund. Specifically, the governors described as self-serving and fraudulent Malami’s claim that they have no basis to reject the proposed deduction of $418 million from the Paris Club refund as. Chairman of the Nigerian Governors’ Forum (NGF) and Ekiti State governor, Kayode Fayemi, who stated the governors’ position after a meeting of the forum at the presidential villa, said Malami is acting in personal, selfish interest that would ultimately become clear when the matter is fully addressed before the court. In a communique issued after the NGF meeting, the governors vowed that they would pursue the matter to the highest court of the land. Reading from the communique, Fayemi said, “Governors extensively reviewed the purported attempts by the Attorney General of the Federation and the Minister of Finance, to circumvent the law and a recent judgment of the Supreme Court to secure the approval of the federal legislative council to effect illegal payment of a sum of $418 million to contractors who allegedly executed consultancy in respect to the Paris Club refund, to state and local governments. “The forum set up a committee comprising the chairman, the governor of Ekiti state, the vice chairman, the governor of Ondo State, the governor of Plateau State, the governor of Nasarawa state, and the governor of Ebonyi State to interface with the committee set up by Mr. President to review the matter. “But the position of the Governors’ Forum is clear and unequivocal. Although this matter is subjudice and we are very reluctant to get in the way of a matter that is still being pursued in court. Governors And Lingering Controversy Over Paris Fund “We’re constrained by the manner in which the honorable attorney has been going around various media houses and purporting to create the impression that this is a liability to which governors had committed themselves agreed to, even though he is very much aware that that’s not the case. “And we reject all of the claims that he has made on this issue. And we also insist that the state will not give up on insisting that these purported claims are fraudulent and will not stand as far as governors are concerned and we would take every constitutional and legal means to ensure that these purported consultancies are fully litigated upon by the highest court in the land. “If the courts now fine governors, and the Nigerian governors forum and state liable, then we will cross that bridge when we get there. As far as we’re concerned, this is a matter that governors feel very strongly about and we do not believe that the Attorney General of the Federation is acting in the public interest, we believe he is acting in personal, selfish interest that will ultimately become clear when this matter is fully addressed, in the law court.” On the ongoing strike by university unions, the governors appeal to both parties to sheath their sword and reach an amicable resolution. “On the prolonged strike by Nigerian universities. The forum encourages the federal government and the academic staff union of universities to find meaningful resolutions to the lingering impasse and as proposed to engage with both parties just as we have done in the past in a bid to end the strike,” he said. On the state of the economy, the governor said: “Finally, the forum extensively discussed the state of the Nigerian economy and security. Following a presentation by Mr. Bismarck Rewane, a member of the President’s Economic Advisory Council. Governors Can’t Stop $418m Paris Club Payment To Consultants – Malami “The forum resolved to immediately engage with the federal government and other critical stakeholders labour, the presidential candidates of political parties and corporate actors on finding resolutions and suggestions to implement a set of immediate actions to ameliorate the worsening economic conditions in the country.” The AGF had during a weekly ministerial briefing organised by the presidential communication team at the presidential villa maintained that despite stiff opposition from the governors, the federal government will continue to effect payment of $418 million to four contractors who executed contracts in respect of the Paris Club Refunds. He was reacting allegations by the governors’ of fresh attempt by him and the minister of Finance to circumvent the law and the recent judgment of the Supreme Court by surreptitiously securing the approval of the Federal Executive Council (FEC) to effect payment of the sum of $418Million to contractors. The governors recalled that they had earlier resisted an earlier approval of President Muhammadu Buhari under the instrumentality of the AGF and Finance minister to pay the said sum to the contractors through the issuance of promissory notes by approaching the court for redress through their state attorneys-general. According to the chairman of the NGF and Ekiti State governor, Kayode Fayemi, the matter is currently pending before the Court of Appeal in Abuja for hearing. But Malami said the governors individually and collectively provided the desired indemnity to his office conceding and agreeing that the payment should be made. He explained that the government subjected the claims by the governors and the payment to the same scrutiny as the P&ID case. FG Disbursed N471.9bn To States For SFTAS – FG Meanwhile, the federal government has revealed that it has disbursed a total of N471.9 billion as grant to states under the $1.5 billion World Bank-Assisted States Fiscal Transparency Accountability and Sustainability (SFTAS) Programme. It said it made the disbursement following the results achieved as shown by various annual assessments carried out by the independent verification agents. The minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, disclosed this yesterday at the official launch of the Primary Health Care Leadership Challenge organised by the Nigeria Governors’ Forum (NGF) at the presidential villa, Abuja. Ahmed said the very high level of political visibility and implementation structures created across the 36 states contributed largely to the successful implementation of the programme over the period 2018 to 2022. “It is gratifying to note that beyond benefitting from the grants, all the 36 states in the federation have fully domesticated the fiscal reforms in their public financial management system through the adoption of appropriate processes and practices as well as legal and regulatory frameworks which are already yielding positive outcomes,” the minister explained. She commended President Muhammadu Buhari for introducing laudable and enduring reforms in the Public Finance Management among which is the World Bank-Assisted States Fiscal Transparency Accountability and Sustainability (SFTAS) programme for results. The minister also applauded the state governments for demonstrating high level of ownership, active peer learning and peer competition which culminated in very strong performance by most of them in all the key results areas of the SFTAS programme. She said the states increased fiscal transparency and accountability; strengthened domestic revenue mobilization; increased efficiency in public expenditure and strengthened debt transparency and sustainability. Meanwhile, the Nigeria Governors Forum (NGF) has pledged progressive increase in primary health care funding by ensuring efficient budgeting that is aligned to annual operational plans. Ekiti State governor and chairman of the NGF, Kayode Fayemi, assured that the state governments will increase their annual budget to strengthen healthcare services in the country especially the Primary Health Care (PHC). Fayemi, on behalf of the 36 governors, promised to promptly release the approved budget to the state primary health care boards, and primary health care facilities. NGF also promised to recruit requisite health workforce to ensure that all primary health care facilities have the minimum staffing requirements appropriate for their level in line with the state’s minimum service package. Fayemi said, “On behalf of all of us, the 36 state governors, and members of the Nigerian Governor forum, this is our statement of commitment to strengthening the primary health care system in Nigeria. “Following the induction to the Seattle Declaration by 36 governors of Nigeria in November 2019. The Nigerian governors’ Forum representing the 36 states of the Federation, hereby affirm our commitment to strengthen the primary health care system in the country. “We therefore adopt and confirm our commitment in line with the Seattle Declaration as outlined below; improving the governance of the primary healthcare system as a sub national level by fully implementing the primary health care under one roof policy, and providing active leadership for primary health care through regular engagement with relevant Primary Health Care stakeholders, and quarterly Primary Health Care performance review at the State Executive Council meetings “Promote progressive increase in primary health care funding by ensuring efficient budgeting that is aligned to annual operational plans, promptly releasing approved budget to the state primary health care board, and primary health care facilities and ensuring that there is a mechanism in place for basic health care provision, fund implementation and oversight at the state and facility levels. “Recruit requisite health workforce to ensure that all primary health care facilities have the minimum staffing requirements appropriate for their level in line with the state’s minimum service package. “Institute a culture of use of evidence for decision making, by ensuring that the data quality across all primary health care facilities is progressively improved. “Develop a state led and state on local government area levels, Primary Health Care leadership challenge for local government area chairman, for sustainability and strengthening the commitment of the local government area chairmen to primary health.” On his part, the country director, Bill and Melinda Gates Foundation, Jeremie Zoungrana, congratulated the governors for accepting to support and be part of the PHC Leadership Challenge Initiative, said the PHC Challenge Fund represents a unique opportunity to motivate and publicly recognize ownership and leadership at the subnational level. He assured that the PHC health indicators would be tracked to support the NGF build governor-level accountability, improve performance management and enhance investments in critical areas of PHC. Zoungrana said, “The Challenge Fund will also leverage other BMGF investments that focus on improving state level data ownership, analysis, quality, and use. “Under the Challenge, all 36 states are eligible for monetary grants awarded to one best performing and one most improved state within each of the country’s six geopolitical zones demonstrating the most progress against all indicators as per the agreed performance results framework as well as one state nationally displaying the most improved performance (total of 13 awards). “The Bill and Melinda Gates Foundation is fully aligned with the Government of Nigeria’s determination to reform and revitalize PHC through the current effort by the Ministry of Health and the National Primary health Care Development Agenda. Also speaking, both the president of the Christian Association of Nigeria (CAN), Rev Daniel Okoh and the Sultan of Sokoto, Muhammadu Sa’ad Abubakar III, restated the need to increase the budgetary allocation to PHC. https://leadership.ng/418m-paris-club-refund-governors-fire-back-at-malami-accuse-him-of-pursuing-self-interests/ |
Na so |
We need Peter Obi to change this narrative come 2023
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Only old clueless APC leaders can make such comments. These are the AGBADO and CASSAVA leaders that plan to employ 50 million youths and feed them with agbado and cassava for 8 years. |
We can't afford not to borrow because our country does not produce what we need to run our economy. Nigeria is not a manufacturing hub. We only consume what other countries produce. This is why we need a President with brains that can transform our nation to a more productive one so that the need to borrow with reduce. |