The United States (US) federal open market committee (FOMC) has reduced its interest rate by 0.5 percent — its first cut in four years.

FOMC, a committee under the US Federal Reserve (Fed), deliberates on monetary policies to influence the availability and cost of money and credit to help promote national economic goals.

The committee reduced the federal funds rate, which serves as the benchmark for borrowing rates in the banking industry, to a range between 4.75 and 5 percent.

During a press conference on Wednesday, Jerome Powell, chairman of the Federal Reserve and FOMC, said the decision reflects the Fed’s confidence that, with policy adjustments, labour market strength can be sustained alongside moderate growth and inflation moving toward 2 percent.

“Our economy is strong overall and has made significant progress toward our goals over the past two years. The labour market has cooled from its formerly overheated state,” Powell said.

“Inflation has eased substantially from a peak of 7 percent to an estimated 2.2 percent as of August. We’re committed to maintaining our economy’s strength by supporting maximum employment and returning inflation to our 2 percent goal.

“Today, the Federal Open Market Committee decided to reduce the degree of policy restraint by lowering our policy interest rate by a half percentage point.

The federal government is expected to receive a new loan from the World Bank, totalling $1.5 billion.

According to the Washington-based financial institution’s project list, the loan is set to be approved on September 26.

The $1.5 billion will be distributed through three major development projects aimed at improving Nigeria’s economic stability and resource mobilisation capacity.

The projects, targeting crucial sectors such as healthcare, agriculture, and infrastructure, are pivotal for the country’s sustainable development and economic stability.

A breakdown of the projects showed the World Bank will approve $500 million for the first project tagged ‘Nigeria: Primary Healthcare Provision Strengthening Programme’.

The World Bank did not disclose the cost of the first project.

Another $500 million will be approved for the ‘Nigeria Human Capital Opportunities for Prosperity and Equity (HOPE) – Governance’ project, which has a project cost of $700 million.

The third project, ‘Sustainable Power and Irrigation for Nigeria,’ will also receive $500 million, but has a project cost of $10.75 billion.

TheCable also observed that two loan requests, one on the ‘Rural Access and Agricultural Marketing Project – Scale Up,’ will receive $500 million by December 16, and the other on ‘Solutions for the Internally Displaced and Host Communities Project,’ slated for an approval date of April 8, 2025, will receive N300 million.

Nigeria’s external debt to the international lender keeps growing.

In May, the Bureau of Public Enterprises (BPE) said the federal government has secured a $500 million loan from the World Bank to boost electricity distribution in the country.

Prior to this, the federal government had received $750 million from the World Bank for humanitarian and social reforms and $1.5 billion for its economic stabilisation plan.

Also, on June 3, Wale Edun, minister of finance and coordinating minister of the economy, said the World Bank board of directors would consider a loan of $2.25 billion for Nigeria.

The Federal Government has called on agencies recruiting for the private sector to adhere to the N70,000 minimum wage, warning that any deviation would not be tolerated.

According to the FG, the new minimum wage is necessary to address the current economic reality, emphasising that no Nigerian worker, whether in government or private employment, should be paid less than the minimum wage.

The Permanent Secretary, Federal Ministry of Labour and Employment, Alhaji Ismaila Abubakar, stated this on Wednesday while speaking at the 13th Annual General Meeting of the Employers Association for Private Employment Agencies of Nigeria, held in Ikeja, Lagos.

Abubakar, who was represented by the Director of Employment and Wages of the ministry, John Nyamali, said, “The minimum wage is now a law, and as a result, it is a punishable crime for any employer to pay less than N70,000 to any of its workers.

“The private employment agencies should make it compulsory in any contract they take from their principal that their workers should not earn less than the minimum wage. The least paid worker in Nigeria should earn N70,000, and I think that should be after all deductions.

“The minimum wage is a law, and you can be jailed if you fail to implement it. The Federal Government is committed to ensuring that the least paid worker goes home with N70,000.”

In his remarks, the President of the Employers Association for Private Employment Agencies of Nigeria, Dr Olufemi Ogunlowo, asked the government and Nigeria Labour Congress to clarify whether the N70,000 minimum wage is net or gross, stating that all ambiguities in the Act should be highlighted and explained.

According to Ogunlowo, the EAPEAN is already committed to the minimum wage, providing decent jobs for Nigerians, and guarding against the exploitation of human resources.

“As an employers union in the private sector, we are committed to implementing the minimum wage. We are a law-abiding and guided association. Our principals and clients have also keyed into the minimum wage.

“However, the government must clarify whether the N70,000 minimum wage is net or gross. The government and NLC should address all ambiguities in the minimum wage,” he stated.

Speaking at the programme, the Chairperson of the NLC, Lagos State Council, Funmilayo Sessi, said the prevailing hardship had made a mess of whatever income any worker was earning in Nigeria, calling on private employers to ensure the payment of the N70,000 minimum wage.

She said, “The N70,000 isn’t enough in the current economic realities. By the time the consequential adjustment is concluded, all private employment agencies should immediately start paying their workers the N70,000 minimum wage.

“The NLC in Lagos State will see to the strict enforcement of the minimum wage. EAPEAN should avoid confrontation with the NLC on the minimum wage.”