Togo goes Parliamentary, Tax Rain in Nigeria & Climate Policy Needed for East Africa
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The Togolese parliament recently approved a new constitution that appears to tighten and extend President Faure Gnassingbe’s hold on power for at least another decade, drawing serious flak from opposition groups who labelled it a “constitutional coup”. Despite criticism that the constitutional changes lacked public input escalating arrests, and bans against protests, there has been no public reaction from ECOWAS.
In April, ruling party politicians unanimously voted to change the way the leader of the country assumes office.
Rather than the current presidential system where the leader is voted into office by direct elections, a parliamentary system has been adopted in the new constitution that has now been signed into law by the President.
Despite its open condemnation of military interventions that have curtailed democracy in several of its member countries, ECOWAS has largely kept mute in the face of a potential extension of President Gnassingbe’s leadership beyond the 19 years since he took over as President – a potential recipe for yet another coup within the West Africa subregion. The silence from ECOWAS strengthens the view that the regional bloc is uninterested in condemning attempts by Presidents to circumvent rules that elongate their time in office. If the situation in Togo were to degenerate into a crisis or result in a military coup, ECOWAS is unlikely to have the moral suasion to intervene in any material manner.
On the other hand, ECOWAS may have grown wary of intervening in the political situation in Togo, especially as this is not the first time that President Gnassingbe has tweaked the constitutionto preserve his own power. ECOWAS faced a similar situation in 2019, when it facilitated dialogue between the government and opposition groups, with limited results.
To shore up the treasury and reduce the nation’s large fiscal deficit, key agencies of Nigeria’s federal government have directed banks and other financial institutions to begin collection of several taxes and levies – a move that has drawn the ire of many Nigerians who are still reeling from (partial) removal of fuel subsidy, devaluation of the Naira, high inflation, and an increase in electricity tariffs.
A timeline of recent tax developments are as follows:
On a related note, the President’s Committee on Fiscal Policy and Tax Reforms, has released a draft National Tax Policy for public review. When finalized, it is intended to set broad parameters for taxation in Nigeria and ensure that fiscal goals “are aligned, properly coordinated and effectively harmonized across the tiers of government.” From a target perspective, the proposed Tax Policy aims to, amongst other objectives:
The recent weeks have presented difficult challenges for Kenya and Tanzania, as both East African countries battle humanitarian crises caused by floods and aftermath of a cyclone in the region. The slow response by both countries, despite early warnings, has underscored the urgent need for policy reforms aimed at strengthening disaster preparedness and response mechanisms.
Reports from both nations have revealed the devastating impact of the floods on lives and communities, reaching alarming levels and exposing shortcomings in crisis management. The death toll in Kenya has surpassed 200, while over 212,000 people have been displaced. Schools have also been closed and business activities have slowed down due to consistent heavy rainfall. Forecasts predict that heavy rainfall will likely intensify this month, further raising fears and highlighting the need for an urgent response.
As people in the affected areas take stock and recover from the havoc, it appears that Kenya’s implementation of its Affordable Housing Policy helped to reduce greater loss of lives. Over 163,000persons had previously been evacuated from high-risk areas along riverbanks in informal settlementsin Nairobi, thereby minimizing the number of potentially vulnerable persons. Going forward, the Kenyan government should prioritize implementation of its climate change mitigation strategies, such as the Kenya National Landscape and Ecosystem Restoration Plan, which aims to plant 15 billion trees and increase Kenya’s forest cover to over 30 percent by 2032.
The severe impact of the cyclone heightens the need for the affected countries to either develop or implement (as the case may be) policies / strategic plans for tackling environmental threats. It may, perhaps, also be useful for the East African countries to consolidate their plans and develop a coherent regional strategy to combat climate-related challenges.
The Nigerian government recently announced an initial increase in monthly wages for public sector workers. The increase would be around 25% to 35% for the different salary structures in the Nigerian civil service. Raising workers’ pay is part of President Bola Tinubu’s strategy to ease hardship after removing fuel subsidies and exchange rate devaluation, which exacerbated the cost of living across the country. Despite this increase, the Nigeria Labour Congress President, Joe Ajaero, has rejected the pay increase, proposing a monthly living wage of 615,000 Naira.
A committee set up by the President, which includes representatives from both public and private sector (including the labour leaders), are still in negotiations for a new minimum wage that will take effect from 1st May 2024.
Nigeria’s minimum wage over the years
Source: Akintayo et al., 2020 & Policy Vault
The Nigerian government recently announced an initial increase in monthly wages for public sector workers. The increase would be around 25% to 35% for the different salary structures in the Nigerian civil service. Raising workers’ pay is part of President Bola Tinubu’s strategy to ease hardship after removing fuel subsidies and exchange rate devaluation, which exacerbated the cost of living across the country. Despite this increase, the Nigeria Labour Congress President, Joe Ajaero, has rejected the pay increase, proposing a monthly living wage of 615,000 Naira.
A committee set up by the President, which includes representatives from both public and private sector (including the labour leaders), are still in negotiations for a new minimum wage that will take effect from 1st May 2024.
What we are also following
We’re also tracking some events in the news, and how they may affect the decisions of policymakers.
Rwanda | Rwanda plans to increase spending by 11% in 2024 / 25
Rwanda plans to increase its overall spending by 11% to 5.69 trillion Rwandan francs ($4.43 billion) in the next financial year starting in July, with 1.32 trillion francs coming from external loans and 3.86 trillion francs from domestic revenues. An additional 725.3 billion francs will be sourced from external grants.
Rwanda’s Finance Minister Uzziel Ndagijimana presented the draft budget to parliament, with final budget presentation scheduled for June. Despite challenges like climate change effects and global inflation, Rwanda maintains strong economic growth momentum, with forecasts of 6.6% growth this year and further growth in the coming years. The economy, largely dependent on agriculture, tourism, and manufacturing, expanded by 8.2% last year, surpassing its initial target.
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