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Peter Obi, Okowa, Others Ask Christians To pray for Nigeria’s Peace, Unity

by Folarin Kehinde
written by Folarin Kehinde

Presidential flag bearers of major political parties yesterday took turns to enjoin Christian faithful to intensify prayers against the myriad of problems facing the country.

Peter Obi of the Labour Party, PDP’s Ifeanyi Okowa and Adewole Adebayo of the SDP spoke at the 12th General Assembly of the Christian Association of Nigeria on Thursday in Abuja.

Mr Adebayo asserted that the present challenges bedevilling the country were “ordained for our time”.

“The problems that the church is facing today is the problem ordained for our time. They are not problems that should distract us because God remains constant,” Mr Adebayo said.

He urged Christians to pray for the unity and peace of the church and the nation.

“This is because the Church of Christ is not one side of Nigeria. It is not an opposition. It is a blessing to all Nigerians.

“The Church of Christ is the reason why Nigeria will be saved. The blessings go to all Nigerians, both Christians and non-Christians,” Mr Adebayo said.

He also advised clerics to pray for God’s will and not concentrate on predictions regarding the 2023 elections.

Meanwhile, the presidential candidate of the Labour Party, Peter Obi, who congratulated CAN for the peaceful transition in its leadership, urged the association to be united, saying, “the family of Christ is one, please let us be united “.

“Nigerians, please remember your country in prayers. Remember those of us going for public offices in prayers for us to use public offices and public money for public goods,” he said.

Similarly, Ifeanyi Okowa, the vice-presidential candidate of the People’s Democratic Party (PDP), said there was no doubt Nigeria was going through a lot in terms of security and economy.

He reiterated the need for Christians and their leaders to stand in for the country through prayers.

Source: PeoplesGaazette

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The African Development Bank
BusinessHeadlines

African Development Bank Calls Nigeria ‘Most Difficult Client’

by Folarin Kehinde
written by Folarin Kehinde

The African Development Bank (AFDB) has declared that the Federal Government of Nigeria is the bank’s most difficult client. This statement was made by the Senior Special Adviser to the President of bank, Prof. Banji Oyelaran-Oyeyinka.

Prof. Banji made this statement while delivering a keynote address at 2022, 3rd Biennial African Scientific Integration Network Conference hosted by the Centre for Energy Research and Development, Obafemi Awolowo University, Ile-Ife, Osun state. There, he delivered a paper virtually on the topic, ‘Science, Technology and Innovation for Sustainable Development.’

While responding to questions on what the bank was doing to assist the growth of industries in Nigeria, he made specific reference to a loan facility that the Board of the bank approved for Nigeria and how the Federal Government delayed its approval.

He said, “I can tell you we have many projects in Nigeria and I am leading one of them. For the Special Arrangement Industrial Processing Loan, we raised $540m for each zone in Nigeria.

“We raised it, and the board of the AfDB approved it on December 13 but the Ministry of Finance did not sign until June 1. We were begging them to sign. By the way, this loan has less than a one per cent interest rate for 25 years and an eight-year moratorium.  It is like someone is giving you money for free.

“Other countries have just one zone and they have been calling to thank us, thank the president, thank everyone for what you have done for us, but in Nigeria, you will be asked why you are pushing too much. We were supposed to launch the project by March 1. The Nigerian government is the most difficult client.”

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Opinion

Why Peter Obi-Datti Baba Ahmed Should Get Your Vote in 2023

by Leading Reporters
written by Leading Reporters

I am not the typical politician or party man, but I love Nigeria very much to be deeply interested in her welfare, progress and future. It is from that perspective, unbiased and objective, that I put these thoughts forward.

I have been around enough to know that Nigeria has suffered from leadership deficit, and that many simple things have been left undone purely because of self-centered interests. I am also able to see that past leaders have failed woefully to unite Nigerians and erase such divisive tags as religion and ethnicity.

After over sixty years of independence, we are unable to birth a true Nigerian citizenship; rather, we have remained as Yorubas, Igbos, Hausa, Ijaws, Ibibios, Fulanis, Nupes, Idomas, etc. There is nothing wrong, as such, in coming from an ethnic stock, but there is everything wrong when ethnicity is promoted over and above nationhood, common brotherhood and sisterhood of humanity. The blame is squarely on the door steps of past political leadership.

Next year’s presidential elections, therefore, present us a fresh opportunity to do a total rethink, call it re-jig and introspection. In that regard, so far, we have identified three major frontline political parties. The one is the ruling All Progressive Congress, the APC, having Senator Bola Tinubu and Kashim Shettima as flag bearers. The other is the Peoples Democratic Party, PDP, having Alhaji Atiku Abubakar and Governor Ifeanyi Okowa, as flag bearers.

Then the third is the Labour Party, having Peter Obi and Datti Baba-Ahmed as flag bearers. Apart from the names of the individuals in the first and second political parties, both APC and PDP are like Siamese twins. They are populated by the very same class of Nigerian politicians who have ruled Nigeria from 1999 till date; and who have crisscrossed effortlessly between the two parties. The results of their years of governance, like score cards, are on the table for every Nigerian to behold. It shows abysmal performance in all key sectors of human and public affairs.

Our security situation is in tatters, with various security agencies at the lowest ebb of their sense of devotion and patriotism. Fear of death, kidnap and payment of ransoms have become daily experiences for Nigerians when travelling, and even while in their homes. The economy has nose-dived to the point where government is said to now borrow to address recurrent expenditures, thereby totally abandoning capital projects. The result has been mind-shattering inflationary rates that have left every citizen living below acceptable levels of existence; while pushing many others into stealing and corrupt practices. Electricity supply challenges have been intractable. The educational sector has shamefully been in total comatose. Healthcare delivery is unaffordable, and nearly absent; yet the political elite prefer going on medical tourism abroad. In short, the citizens have been left wondering why nothing seems to work, and are daily seeking after greener pastures in other climes. Worst of all, the entire Nigerian brand, represented by our Flag, has suffered grave damages!

Then, here comes Peter Obi and Datti Baba-Ahmed; the duo with clear articulation of solutions to these myriads of challenges. They came from what you may call the political underdog class, but equipped with high moral and ethical dispositions never before seen in Nigeria’s political space. They seem like a dream reality for the Nigerian class of youthful voters. They also present the fresh hope for the many otherwise disenchanted adult voter population, all of whom have ‘seen it all’ with the crop of charlatans who have occupied the political space in the past twenty plus years in Nigeria.

In short, the Peter Obi- Datti Baba-Ahmed team has the following going for it:

  1. Clarity of understanding about the myriads of challenges facing Nigeria and Nigerians.
  2. Clarity of applicable solutions for each challenge.
  3. Background in private sector attainments that show grit, capability to generate wealth, integrity and passion to excel.
  4. Zero tolerance for the usual corrupt ways of acquisition of political power in Nigeria.
  5. Manifest show of love for the masses of Nigeria and determination to turn around the fortunes of the country through clearly articulated ideas and programmes.
  6. Uncommon show of simplicity and humility, conveying a sense of ‘not business as usual.’
  7. Transparent records about self, past achievements, attainments and associations.
  8. Impeccable academic and professional exposures that guarantee capacity to address the challenges of Nigeria.
  9. Uncommon ability and flair to clearly articulate believable road maps for deliverables.
  10. Detribalized approach to issues of national concerns, devoid of primordial sentiments such as religion and ethnicity.
  11. Finally, these two gentlemen have age and health in their favour, and have been able to effortlessly elicit revitalization of genuine hope and sense of patriotism, once more, among Nigerians, especially youths, who for many decades have remained aloof from politics and governance.

Even INEC has become a beneficiary, as new enthusiasm is being generated and galvanized by Peter Obi-Datti Baba-Ahmed towards electioneering processes in Nigeria.

It is for these reasons, and many more which space would not immediately permit me to state, that I highly recommend the flag bearers of the Labour Party, Peter Obi-Datti Baba-Ahmed to you. Be objective and remember that your vote for them amounts to birthing a new Nigeria.

A GENUINELY CONCERNED NIGERIAN.

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Headlines

Oil Rich, Electricity Poor. What will it Take To Solve Nigeria’s Energy Crisis?

by Folarin Kehinde
written by Folarin Kehinde

Nigeria is Africa’s biggest oil producer but the west African nation struggles to meet its energy needs, a struggle that has persisted for many decades.

On Monday, authorities in the country said they disbursed over 3.2 billion US dollars to support power supply to Nigerians in the last five years. Godwin Emefiele who is head of the country’s apex bank, Central Bank of Nigeria (CBN) said the monies were disbursed to electricity Generating and Distribution companies to acquire equipment, buy meters and improve electricity supply in the country.

Yet Nigerians have continued to battle poor power supply with the situation worsening last week when the country’s power grid collapsed twice, causing a huge black out across most parts of the country.

Beat Fm, a 24-hour radio station in Lagos temporarily went off air, announcing moments before that it could not sustain operations into the night. Several other businesses were impacted. But this is not the first time that the power grid collapses in the nation of over 200 million people.

According to TheCable, there were power grid collapses in February, May, July, and August of 2021 and there have been about “206 collapses between 2010 and 2019.”

So why was the power grid of last week different?

Power Grid “Full System” Collapse

Nigeria’s power generation is mostly thermal and hydro and has an installed capacity of nearly 13,000 megawatts. For many years, authorities only manage to dispatch about 4,500 megawatts of its installed capacity.

By contrast, South Africa’s total domestic electricity generation capacity is over 58,000 megawatts from all sources including coal which is by far its major energy source.

According to 2020 figures, South Africa has a population of nearly 60 million and Nigeria is Africa’s most populous nation; it (Nigeria) also ranks as the biggest economy on the continent. When this reality is factored in, the disparity between both nations soon become evident and certainly not only on paper.

It is a disparity that can be seen in the stark reality of millions of homes in Nigeria that have to experience if at all, any power supply, at best, a very epileptic daily supply.

But not many would have imagined the situation to get terribly bad recently.

Generators could not save the situation

Despite being Africa’s largest producer of crude oil, Nigeria imports almost all of its fuel and that is because none of its four refineries is operational- presenting a big paradox.

To avoid a spike in prices at the pump, the Nigerian government massively subsidizes Premium Motor Spirit (PMS) commonly known as Petrol. The price is fixed at 165 naira, which is about 40 cents. The price of diesel is however higher than petrol- usually just a little less than I dollar per litre.In dealing with the poor electricity supply, Nigerians for several years have relied heavily on small and huge generator sets operating on these products- petrol or diesel.

These imported generating sets have served as an alternative source of power for Nigerians and in some occasions the only source. So, when power supply from government and private providers significantly drops, the demand for petrol and diesel shoots up.

In February, a severe fuel shortage pushed prices up to 1.50 dollars per litre on the parallel market. The Nigerian National Petroleum Company (NNPC) announced that 100 million litres of adulterated petrol had been imported by error prompting a withdrawal from the market.

A delay in cargo ships carrying refined oil due to the war in Ukraine was also blamed for the shortage. Long queues flowing onto the roads soon lined filling stations across the country for days and weeks, climaxing into a huge and almost nationwide black out last week.

A troubled ‘Privatised’ sector

It is now nearly a decade since Nigeria ‘privatised’ its power sector. The process led to the creation of 11 distribution companies (Discos), while seven generating companies were sold to different private companies. But nothing significant has changed in the experience of consumers and year in, year out, both the government and the Discos blame each other for the failures and woes.

In an interview with africanews journalist Jerry Fisayo-Bambi, the CEO, of the Centre for the Promotion of Private Enterprise Nigeria, Muda Yusuf noted there are many structural and systemic problems facing the players in the power business sector.

First, he counters the CBN’s claim of funding saying the stated amount of spending in five years is grossly inadequate.

“The funding you require for the power sector and to effectively turn around the power sector is far more than that. In fact you should be talking about 15 -20 billion US dollars. At the distribution end alone, there are major funding gaps. And some of the investors in the sector have claimed that they are not being allowed to charge a cost effective tariff” Yusuf, the former Director General of the Lagos Chamber of Commerce and Industries (LCCI) explained.

Yusuf points out further that the power reforms that saw the sector privatised in 2011 was done partially and the quality of the process has raised concern. Generation and distribution were privatised with the exclusion of the transmission component, he says, explaining that the operators continue to struggle with funding and technical capacity.

“There is a major issue with regards to generating liquidity within the system, a major issue with indebtedness to the generating companies because they can not pay adequately for gas and gas suppliers sometimes disconnect them. Then the transmission problem is managed by the government and you can imagine what that means.. so it is a multifaceted and complicated issue compounded by massive electricity theft with some government agencies and consumers not paying adequately for electricity”.

Indeed, it is a complicated issue. A former minister of power Prof. Barth Nnaji alludes to some of the insight shared by Yusuf.

“There is also human factor problem on distribution such as connection inefficiencies, leakages, people stealing power, and all kinds of things done by people that make it difficult for efficient distribution, and also, the distribution companies themselves who are not investing in infrastructure which brings about inability to supply power.” Barth Nnaji was quoted as saying recently in a local newspaper interview.

What then is the way out?

Members of the lower house of Nigeria’s parliament on Tuesday 22 March mandated the Minister of Power, Abubakar Aliyu to take concrete actions aimed at solving the current nationwide blackout rather than always presenting theories.

The Committee on power, led by Hon. Magaji Da’u Aliyu at a meeting with the minister, expressed disappointment over the attitude of the ministry towards power issues particularly during national emergencies.

“There is nothing on ground to show that there will be light or generation of up to 5000 megawatts, but we keep hearing about 30,000 megawatts of installed capacity across the power stations” Da’u Aliyu said.

The Member of Parliament in his rebuke of the current minister of power, hints of the government target of 30,000 megawatts of electricity by 2030, something Generation Companies in the country (GenCos) have assured authorities to be very much attainable.

But Nigeria’s former power minister Barth Nnaji thinks this is in fact a far cry from what is needed. “If we are going to be a mid-level economy, then we should clearly be talking about having the sort of power supply that Brazil has, which is over 100, 000 megawatts. If we are going to have 100, 000 megawatts of power supply, then we need to have transmission lines to match that capacity, but we don’t have it” he says.

As of today, only about 47 percent of Nigerians have access to electricity when it is available, the World Bank estimates. And if the country must achieve the target of 30, 000 megawatts by 2030, a pragmatic approach, which must be implemented commercially and politically will need to be ensured at the very least.

Fuel scarcity disappears, generators can now be filled

The government says it has released one billion litres of fuel from the national reserve to normalize distribution of petroleum products across the country after the shortage that saw fuel queues return to the roads in the past month.

The queues have though started to disappear. But the inflationary pressures from the recent fuel shortage and lack of electricity supply have already compounded business dealings and left their ugly mark on this giant African nation.

According to the International Monetary Fund 2019 country report on Nigeria, electricity problem causes the Nigerian economy to lose an estimated $29-billion annually.

“This fuel is finished, it is frustrating and there is not much profit to be made when you spend so much monies on petrol. How do you make extra monies? It is not possible particularly when you have to give the best to your customers”.

Those were the words of Olorundare Juwon, a Fashion Designer and owner of a garment factory in Lagos, as he stared miserably at his empty power generating set.

President Muhammadu Buhari in a rare move last week apologized to Nigerians for fuel and electricity issues. This week, he has promised citizens that the issues will soon be over.

But until then, people in business like Olorundare Juwon in Lagos and indeed millions more across Nigeria will continue to bear the brunt.

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OpinionHeadlines

The Green Passport Needs Urgent Revamping

by Folarin Kehinde
written by Folarin Kehinde

By: Ololade Otayemi
CEO at The Orbra Company | Startup Mentor at Faster Capital, Dubai, UAE | Partnerships and International Business Lead at NBWSM, GA, USA | Ex Chief of Staff at Ventures Platform NG

The green passport needs an urgent perception revamp. My work requires me to travel around the world often. When I present my green passport across the world, i often get a different treatment.

The warmth and smiles enjoyed by people before me sometimes changes very quickly. The guys with the blue, red etc passport are treated like kings and those with the green passport… well… In October 2021, i had to be in 6 cities across 4 continents in the space of 2 months, i saw this happen almost back-to-back at most airports.

 In one of the countries in Europe, i was asked some really annoying questions and delayed unnecessarily because apparently i had a special visa that they think did not tally with the color of my passport (if you know what i mean). I wondered if I’d get the same treatment if i carried a different colour of passport. Most likely not. Recently, I needed to travel again and this time, the discrimination was by my fellow Nigerians at our own airport, the people with other passports were treated much better.

Yesterday, i got news that one of the countries I frequent and I’m starting a business in has suspended the easiest and fastest visa process they have just for Nigerians.

Basically, because our people have misrepresented us and it now affects us all.

Another time, i was stuck in another airport in Europe because I missed a connecting flight, which by the way, was the fault of the airline. I was told to find a chair in the airport to spend the night. Meanwhile, i heard a story of my wife’s cousin who holds a blue passport and his country almost grounded an airport because he missed his flight and his family couldn’t reach him. I had to insist on the airline getting me a hotel and treating me better and THEY DID!

This reminds me of one of @feladurotoye saying “a third-class citizen of a first- world country will be treated better than a first-class citizen of a third-world country”

We need to get Nigeria right as a matter of urgency! JAPA is not the solution. Please go get your PVC!

In all of this, I am Nigerian and I am proud to be one!

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Sports

Williams Ekong’s own goal hands Mexico 2-1 win over Super Eagles

by Leading Reporters
written by Leading Reporters

Super Eagles’ captain William Troost-Ekong on Saturday cleared into his team’s net to gift Mexico a 2-1 victory over Nigeria in an international friendly at Dallas in the United States.

The match was the Super Eagles’ first of two international friendlies lined up by the Nigeria Football Federation (NFF). It was also head coach Jose Peseiro’s first game in charge of the team, and part of their preparations for the 2023 Africa Cup of Nations (AFCON) qualifiers.

While Nigeria failed to qualify for this year’s FIFA World Cup, El Tri are using the game to prepare for the event in Qatar.

The match was the first of three friendlies for the Mexicans before their CONCACAF Nations League opener against Suriname in June.

Santiago Gimenez opened the scoring for a makeshift Mexico squad in the 13th minute.

It was with a great finish as they got their international window off to a positive start In front of a healthy crowd in Arlington.

The Mexicans bossed the first half with Gerardo Martino using the second half primarily as an opportunity to integrate Diego Lainez and Edson Alvarez from the bench.

Goalkeeper Francis Uzoho made some superb saves to contain their opponents in the first half and keep the Super Eagles in the game.

Peseiro’s boys however grew more into the game in the second half and got a well-deserved equaliser through Cyriel Dessers in the 54th minute from a powerful header. It was Dessers first international goal for the national team.

However, defender Troost-Ekong inadvertently conceded an own goal in an attempt to clear the ball from a delicate cross into the penalty box in the 56th minute.

The match was thereafter cagey and saw the introduction of a few players from the Nigeria Professional Football League League (NPFL) towards the end, with about 20 minutes left.

Enyimba’s Victor Mbaoma, and Ishaq Rafiu and Chiamaka Madu (both from Rivers United) replaced Terem Moffi (Lorient FC, France), Moses Simon (FC Nantes, France) and Dessers (Feyenoord, Netherlands) respectively.

They helped the team to hold on for a commendable finish.

Troost-Ekong’s own-goal eventually proved the difference between the two sides, in spite of coming barely two minutes after Dessers equaliser for Nigeria.

Super Eagles will face Ecuador on Thursday before attention shifts to the 2023 AFCON qualifiers against Sierra Leone and Mauritius in June. NAN




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Headlines

Nigeria, others witness lunar eclipse today

by Folarin Kehinde
written by Folarin Kehinde

Centre Director, Dr. Bonaventure Okere, stated that the lunar eclipse would be visible from across the nooks and crannies of Nigeria, as well as in several other countries of Africa, North and South America, Europe and parts of Asia.

He added that the lunar eclipse has remained one of the most interesting astronomical events/phenomena for sky-watchers globally over the years.

The natural phenomenon, according to him, occurs “when the Earth blocks the Sun’s light, which otherwise would have struck and reflect off the moon’s surface. In other words, the moon passes into the umbra/deep shadow of the Earth.

“When this happens, the short-wavelength light from our planet is scattered/absorbed while the light of longer wavelength (red colour) is refracted around the edges of the atmosphere while falling upon the moon’s surface, thereby turning the moon reddish in colour (the Blood Moon).”

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Headlines

Google snubs Nigeria, establishes first Africa Development Centre in Kenya

by Folarin Kehinde
written by Folarin Kehinde

American multinational technology company, Google, in what appears like a snubbing of Africa’s largest economy, Nigeria, has announced the establishment of its first Africa product development centre in Nairobi, Kenya.

The centre which is expected to help create transformative products and services for people in Africa and around the world is coming barely 4 weeks after Microsoft opened new African Development Centre at Ikoyi, Lagos.

This was made known by Google’s Vice President of the product, Ms Susan Frey, at a Virtual Media Round Table, where she said that Google would also be hiring for the development centre.

According to NAN, Frey said there would be hiring visionary engineers, product managers, UX designers and researchers to lay the foundation for significant growth in the coming years.

Frey also said that the centre was looking for talented, creative people who would help solve difficult and important technical challenges, such as improving the smartphone experience for people in Africa.

She said that talented people would also be building a more reliable internet infrastructure.

Frey recalled that in October 2021, at a `Google for Africa’ event, the Chief Executive Officer, Sundar Pichai, announced plans to invest $1billion over the next 5 years to support Africa’s digital transformation.

She pointed out that the investment is expected to focus on enabling fast, affordable internet access for more Africans, building helpful products, supporting entrepreneurs and small businesses and helping non-profits to improve lives across Africa.

The Managing Director for Google in Africa, Nitin Gajria, revealed that there were 300 million internet users in Africa who were young, mobile-first and had similar patterns to mobile youth globally.

Gajria said that by 2030, Africa would have 800 million internet users and a third of the world’s under-35 population, adding that the potential for Africa to become a leading digital economy was right on the horizon and Google was committed to accelerating Africa’s digital transformation through human capital.

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Headlines

Does anyone deserve immunity in Nigeria?

by Leading Reporters
written by Leading Reporters

By Tonnie Iredia

In 2007, the Nigerian Judiciary turned down a request by the Federal Government to declare the office of Vice President Atiku Abubakar vacant on account of his defection from the then ruling People’s Democratic Party (PDP) to the Action Congress (AC).

The decision was premised on Section 308 of the Nigerian Constitution which protects a sitting President and his Vice as well as State Governors and their deputies from being prosecuted in court while in office. Atiku’s case therefore helped to underscore the inviolability of the immunity clause.

However, conscious of some likely negative effects, such as abuses by political office-holders, Umaru Yar’adua who became President a few months later, sought to expunge it from the Constitution. Yar’adua pointedly argued during the launch of his anti-corruption campaign that nobody in Nigeria deserved “the right to be protected by law when looting public funds.”

The suggestion was well received in many quarters, especially by those who wondered which party manifesto a Defector-Vice President would execute while in a ‘limbo-office.’ Interestingly, the Action Congress reputed to consist of progressives opposed the proposal on political grounds thereby making it more difficult for possible negative fall-outs from Section 308 to be resolved.

According to the then Publicity Secretary of the party, Alhaji Lai Mohammed, it was not the immunity clause that was protecting looters but the lack of political will by government to tackle corruption. The immunity clause survived, not because many were persuaded by the reasoning in Atiku’s case, but more because the attempt to sack Atiku was seen as political and not on account of corruption. In addition, Nigerians had assumed that any ill-gotten wealth garnered by corrupt leaders would be legally retrieved later while those found guilty of corrupt practices would be severely penalized.

This assumption has since been disproved especially after a former party chieftain declared that those who defect to the ruling party would have their sins forgiven. Perhaps, no one imagined that the immunity clause which was genuinely inserted in the Constitution to dissuade anyone from distracting the executive arm would be exploited by the same beneficiaries to commit mischief.

The logical reasoning was that as a developing society challenged by infrastructural deficiencies, leaders in the executive arm would have so much to do about development to have spare time to be engrossed in politics. In truth however, many Nigerian politicians are prepared to hide under constitutional protection and technicalities to engage in unwholesome political and electoral mal-practices. It is now obvious in retrospect that office holders who enjoy immunity are able to use the privilege negatively for personal gains which was not the purpose of the provision.

This over-pampering of executives who are not required to reciprocate the goodwill accorded them ought to be reviewed. For example, whereas the constitution stops anyone from instituting legal cases against leaders in the executive arm, the same constitution failed to also bar such leaders, while in office, from initiating same against members of the public. So, they can sue but cannot be sued! They are also free to engage in political immorality which they quickly defend using the instrumentality of the immunity clause.

Even the legal injunction that executives should not be engaged in other assignments except governance has not materialized. The first problem came from a new arrangement in which candidates elected at elections suddenly became designated by their parties as national leaders in the case of President or state leader in the case of governors. The main result of this designation and consequent preoccupation with party matters is that the executives have been diverted from spending ample time on governance issues as if they were elected by the entire electorate to run one political party or the other.

President Muhammadu Buhari as the national leader of the ruling APC has had to take charge of the party at different times. At a point he, had to arrange for a caretaker management when the party’s chairman was removed while he stepped in again recently to stop the party’s national convention from derailing. Governors Mai Mala Buni of Yobe, Abubakar Bello of Niger and Gboyega Oyetola of Osun had to virtually run the national working committee of their party for almost two years thereby relegating the tedious but substantive task of state executives.

While many state governors are now more seen in Abuja than their state capitals dealing with one party issue or another, many have in the last one year traversed the length and breadth of the country on party assignments well ahead of the official time for electioneering. As a result, the original time for governance has been heavily appropriated while expanding the time for electioneering. Yet, the constitution, in anticipation of the numerous projects of development that have to be executed for the benefit of the masses barred everyone from distracting executives.

In the midst of these self/party imposed distractions, some governors are counselled that to be reelected or elevated to higher positions, they have to defect to another party. They hurriedly implement such arrangements ignoring the fact that their current positions were attained through the sponsorship of another political party. If legally challenged, they are able to plead Section 308 of the Constitution. What bothers many about this trend is that it is only the arguments of senior lawyers copiously quoting the Supreme Court that the people hear.

No one considers that some die-hard actors would soon design extra-judicial arrangements to protect their votes from being transferred to another party. In other words, the injustice of defection which converts winners to losers by transferring the votes obtained at elections may soon generate political violence leading to another inexplicable insecurity. To confirm that there is no remorse about the approach, even legislators that the Constitution says should lose their seats upon defection are left untouched. What then is the purpose of voting, if the wishes of the people can be recklessly reversed?

The expectation that somewhere along the line, judicial activism would decisively put a halt to the vicious attack on the spirit of the Constitution is daily fading. At the same time, the justification for defection is becoming more bizarre by the day. The other day, one governor who was defending his defection from one party to another said on national television that he moved to avoid a fellow governor whom he described as a bully. He neither explained the venue of the alleged bullying nor how a governor in another state can stop him from working in his own state.

What he inadvertently confirmed was that he loathes how the so-called unnamed bully operates during party meetings. But why should a governor, an otherwise statesman, be occupied with party matters? When the court declined to remove him from office, he publicly celebrated “victory” whereas what happened was that the court couldn’t find an approved punishment for his unwholesome conduct.

Except the country finds a way of reversing the trend, defectors would increase shortly thereby retarding national growth and development. So far, the way the cases in court challenging the politicization of governance are being handled suggests that the reprehensible conduct will not be addressed soon as all eyes are turned towards only the letters of the law. With the fast approaching primary election for which everyone is already in the mood for campaigns not much can be done in the area of pushing for an amendment to Section 308 of the Constitution.

The direction to look towards in the circumstance is for our Supreme Court to help shape our public policy by using its powers of interpretation to positively expand the provisions of the section in such a way that the genuine intention of the drafters of our Constitution is attained. For example, considering that the judiciary has said that votes scored at an election belong to political parties, the executives wishing to defect should be allowed to do so but without taking away votes which still belong to their erstwhile parties.
April 10, 2022

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HeadlinesBusiness

Nigeria may be Broke but don’t need Money to Turn the Tide

by Leading Reporters
written by Leading Reporters

Nigeria has continued to borrow money to fund its budgets, the 2022 budget, and the country does not plan to stop borrowing soon, as details on its Medium Term Expenditure Framework show that between 2022 and 2024, the country will borrow N14.8 trillion.

Debt servicing, a consequence of the heavy borrowing, continues to gulp huge amounts and between 2022 and 2024, debt servicing will take a total of N14.6 Trillion.

To put it concisely Nigeria is broke, maybe not in the same way Musa or Nkechi are broke two days after receiving a salary, but broke all the same. 

President Muhammadu Buhari told the global community that the country needs $1.5 Trillion to bridge its infrastructure gap.

However, has more money always translated into more development for Nigeria?

Figures available on the Organization for Economic Cooperation and Development portal show the total public revenue of the country. 

Key Economic Indicators

(The public revenue of the country for 2020 and 2021 was not added due to the COVID-19 pandemic which altered financial demands and spending of the country and all countries across the globe.)

Between 2018 and 2019, public revenue increased with the revenue hitting N13 Trillion. Unfortunately, increased revenues have not always guaranteed better economic outcomes. Economic indicators showed that GDP growth remained at 2% in both years.

The inflation figures of the country have remained in double digits impacted by both demand-pull and cost-push forces. Dependency on imports has also put pressure on the country contributing to inflation especially when the increase in the price of imported goods may also drive up prices of goods and services in the country. The naira has continued to reduce in value as exchange rates makes the country’s dependence on imported goods near suicidal. Yet in 2019, importation figures increased up to N5.3 trillion, an increase of 49.34% over the 2018 figure. 

The various policies of the government have failed to reduce the food importation bill. Importation of agricultural products rose by 6.6% between Q4 2018 and Q4 2019. Wheat importation bill stood at $1.48billion as of 2019, according to the Observatory of Economic Complexity.  Although the country’s rice production increased, the country has yet to achieve self-sufficiency.

Nigeria has also battled with poverty, with the World Bank noting that over 40% of Nigerians representing 83 million persons live below the poverty line while another 25% (53 million people) were vulnerable.

Food insecurity is heightened as the country has struggled in recent times to meet its local demand for food. Scarcity occasioned by insufficiency and strengthened by insecurity has led to a surge in food prices. Although the country has recorded some increase in the Agricultural sector’s contribution to GDP over the years, in real-time, the results have not translated to a positive effect on final economic indicators nor the country’s food security positioning.

In 2016, the country introduced N-power to tackle unemployment but the unemployment figure has not dropped since then, growing from 14%, 19% to 23% respectively in 2016, 2017 and 2018. The N-power intervention and other related policies of the government did not reduce the unemployment percentage.

Recurrent, Capital Expenditure Ratio, Corruption May be Denying Nigeria Adequate Results of Increased Revenue

Nigeria has over the years experienced high recurrent expenditure over capital expenditure across key sectors. The ability to invest in key infrastructures that may have impacted on key indicators by increasing job creation, improving local manufacturing and production etc. have reduced the value of development and increase in public revenue could offer.

Corruption is a significant factor in the loss of development benefits from increased revenue. The corruption perception index of the country stood at 145 of 180 countries in 2020 with the country scoring 25 points out of a possible 100, according to Transparency international. 

Although Nigeria dropped one place in 2020 having ranked 146 in 2019, its record has historically been poor, ranking 1444 in 2018 and 148 in 2017. This is despite the introduction of the Treasury Single Account by the government in 20016 aimed to harmonize financial operations and ensure a transparent public sector. If the Auditor General’s report is anything to go buy, the government and its agencies continue to miss the mark on transparency and accountability

Budget Deficit, Debt Servicing May Deny Nigerians Full benefit of Increased Public Revenue

A report earlier noted the high cost of debt servicing in the country for instance between January to May 2020 Nigeria spent N72 on debt servicing for every N100 earned. The 2022 budget has a 22% debt servicing figure of N3.8 trillion. This means that a substantial part  of Nigeria’s public revenue will be spent on debt servicing, monies that might have aided in boosting key economic indicators.

With Nigeria planning to borrow another N14.8 Trillion between 2022 and 2024, that will shoot up the cost of the country’s debt servicing and is expected to gulp N14.6 Trillion in the same period (2022-2024).

Review of Nigeria’s Current Key Fiscal Policies

Nigeria’s policies on improving the economic outcomes of the country have suffered various handicaps. For instance, the diversification of the economy to Agriculture has been greatly affected by insecurity, climate change, among other issues.

Policies for reducing the unemployment burden have not yielded much results as the figures have continued to grow. 500,000 Nigerians were reported to have benefitted from the N-power program as of 2020, but there has been no impact on the rate of unemployment in the country which ended the year at 32.5% . The president launched another initiative, Nigeria Jubilee Fellows program aimed at employing twenty thousand Nigerians who just graduated from the National Youth Service Corps. Again this is unlikely to affect the employment projected to rise even higher in 2022. 

The country operates the Retail Dutch Auction system for its foreign exchange. What this implies is that the Central Bank sells Forex through Banks to the end-users. The apex bank announced in July 2021, that it was suspending the Bureau-De-Change operators and suspended the issuance of new licenses. This move was perceived by actors as part of a strategy to improve the naira’s positioning but the value of Naira has remained unstable at N414 to $1 as at the time of this report. Not only are import prices  higher which drives up inflation, Nigeria’s debt servicing costs will also increase as the naira weakens. 

Exports, government spending and local manufacturing and production are a major part of increasing Gross Domestic Product but increase in price of raw materials compounded by insecurity and insufficient government investment in capital projects are likely to keep the country’s GDP growth rate nominal. 

Nigeria may need money but clearly mere increase in revenue does not necessarily translate to development and without improving its key economic performance indicators, Nigeria may continue to be in a vicious cycle of lack, dependence and borrowing.

Better policies, a genuine fight against corruption and open and accountable governance are critical to lifting Nigeria out of poverty.

While more money may mean more resources to do more things, the country may need to improve on corresponding effective policies that are commensurate with the growth in public revenue.

The question may be that the value of those monies at that time also determines what they can do, but the value relies on working policies too. (dataphyte)

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