The Nation Newspaper

Author: The Nation

  • Quick facts about Chad’s newly appointed Head of State, Mahamat Kaka

    Quick facts about Chad’s newly appointed Head of State, Mahamat Kaka

    By Fasanmi Abiola

    It’s no longer news a four-star general who is a son of Chad’s slain president Idriss Deby Itno will replace him as the head of state.

    The newly re-elected President Idriss Déby on Tuesday, 20 April, died of wounds he sustained during a clash with rebel forces.

    In a statement by the army’s spokesperson, General Azem Bermandoa Agouna, the slain president’s son, General-Major Mahamat Deby Itno is expected to replace the father as Head of State.

    Here are quick facts to know about him:

    1. General-Major Mahamat Deby Itno is first enrolled at the Joint Grouping of military schools in Chad.

    2. He subsequently received training in France, at the military school of Aix-en-Provence.

    3. Upon his return, he was enrolled in second promotion of semi direct of the school of officer inter armed and later was appointed to the service branch for the Security of State Institutions (SERS), as a deputy commander of the groupement of infanterie.

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    4. His first combat experience took place in April 2006 when rebel attacked the capital city of Chad and later participated in a combat in eastern Chad along with General Abu Bakr al Said, then director of gendarmery, Mahamat was given the rank of major afterward.

    5. He led forces when he took part in the command of Chadian forces during the Battle of Am Dam, where his army defeated the rebels.

    6. In January 2013, General Mahamat was appointed second in command of the Chadian Special Forces in Mali under general Oumar Bikimo.

    7. On 22 February, he led his army against rebels in the Adrar al-Ifoghas mountains in Northern Mali leading to the Battle of al-Ifoghas. They eliminated a rebel base said to be of “significant importance”, inflicting heavy losses upon the rebels but also losing twenty-six men in the process, including Abdel Aziz Hassane Adam, a commander of Special Forces. Mahmud took full command of the FATIM and has since been leading operations against rebels in the North.

    8. After his father’s death at the hands of FACT on 20 April 2021, the military said that the elected government and National Assembly have been dissolved and that the Transitional Military Council led by Mahamat will lead the nation for 18 months.

  • Lagos council polls to hold in July

    Lagos council polls to hold in July

    By Oyebola Owolabi

    Lagos has said it plans to hold local government elections in July.

    A statement by Chairman of the Lagos State Independence Electoral Commission (LASIEC), Justice Ayotunde Phillips (rtd), said election into the offices of chairman, vice chairman and councillors in the 20 councils and 37 LCDAs would hold that day.

    The statement reads: “LASIEC is committed to conducting a credible and inclusive election and the Statutory Notice shall be published soon.”

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    Tenure of the incumbents, who have been in power since 2017, will expire in July and the state Inter-Party Advisory Council (IPAC) had advised Governor Babajide Sanwo-Olu to make plans for a new election.

    IPAC chairman James Adeshina, who spoke against the backdrop of insinuations the State would not conduct council elections in 2021 since it was not provided for in the 2021 budget, said IPAC would not support the appointment of sole administrators or caretaker committees when the tenure of the incumbents expire.

  • Idriss Deby was a gallant leader – Buhari

    Idriss Deby was a gallant leader – Buhari

    By Bolaji Ogundele, Abuja

    President Muhammadu Buhari has expressed sadness over the death of President of Chad Republic, Idriss Deby Itno, describing him as a friend of Nigeria.

    In a statement by his Senior Special Assistant on Media and Publicity Mallam Garba Shehu, Buhari regretted “the sudden and tragic death of President Idriss Deby of Chad on the front line, fighting against rebel soldiers.”

    Reacting to the incident on Tuesday, Buhari said: “I’m deeply shocked and devastated by the sudden death of Idriss Deby on the battle front to defend the sovereignty of his country.

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    “The late Deby had played a very active role in our regional joint collaboration in the military campaign against the Boko Haram terrorists.”

    The President described the late Chadian leader “as a friend of Nigeria who had enthusiastically lent his hand in our efforts to defeat the murderous Boko Haram terrorists that have posed grave security challenges not only for Nigeria, but also our African neighbours, particularly Chad, Cameroon and Niger Republic.

    “The death of Deby will surely create a big vacuum in the efforts to jointly confront the Boko Haram terrorists and the Islamic State West Africa Province.”

    While condoling with the people of Chad and their new leader, President Buhari called for greater collaboration to defeat the terrorists.

  • A’Ibom wins CIRDDOC 2020 best budget transparency award

    A’Ibom wins CIRDDOC 2020 best budget transparency award

    Our Reporter

    In a move that gives credence and endorsement of the commitment of the Udom Emmanuel led administration in ensuring openness, transparency and accountability in budgeting and governance, the Akwa Ibom State Government has been ranked one of the best performing states in the 2020 sub-National Budget Transparency Survey.

    The survey which was conducted by the Civil Resource Development and Documentation Centre (CIRDDOC) to ascertain the level of budget performance by states of the federation revealed that Akwa Ibom and four other states topped the budget performance index for the year, 2020.

    The Nigerian States Budget Transparency Survey Report also revealed that Akwa Ibom and some other Nigerian States have significantly improved budget transparency and participation, and has improved the robustness of the procurement process, a confirmation of the resolve of Governor Udom Emmanuel at ensuring that the budget is structured in a way that guarantees people Centered participation and buy in for effective monitoring, tracking, assessment and evaluation of its implementation.

    The survey report which was made available to the public by the Executive Director, CIRDDOC Nigeria, Ral Nwankwao-Obioha, indicates that “Akwa Ibom, Ekiti, Kaduna, and Ondo states each scored above 60 percent, meaning they provided significant budget information, spaces for public participation throughout the budget process, and information on procurement”.

    “Only Oyo and Zamfara states provided almost no budget information, had non-existent spaces for public consultation, and opaque procurement processes”.

    In her address, the Executive Director of CIRDDOC Nigeria, Ral Nwankwo-Obioha (Mrs.) said the objective of the report is to compare the degree of budget transparency across states, promote international best practices with regards to budgeting and budget process in the States and to inspire and encourage the spirit of competitiveness’ amid states towards promoting budget transparency and government accountability.

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    Hear her, “The support and promotion of accountable government is the responsibility of all. While the state governments are saddled with the responsibility of budget development, the citizens, Legislators, Auditor-Generals, Accountant Generals, Civil Society Organisations and the media have significant roles to play in ensuring that the must-haves are included in the budget as well as determine budget execution”

    She reiterated that playing major role in the accountability ecosystem means that all and sundry have access to the budget information. She also said that all citizens should have access to information on how state governments plan revenue, incur debt and spend public resources essential in the financial programmes of the state.

    Also speaking, the Chairman of the occasion, Dr Otive Igbuzor, in his opening remarks said that the budget is perhaps the most important instrument for the development of any modern state apart from the constitution.

    According to Dr. Igbuzor, “The focus on budget has assumed greater prominence in recent years with increasing democratization civil society participation and the desire to respond to the development challenge of poverty and inequality. It is the most powerful way that a government can meet the needs and priorities of the citizens. The budget process is crucial to good development outcomes.

    Continuing, he said, “Corruption in any country starts from the budgetary process. In very corrupt countries, the budget is done in secret. Releases are done without the knowledge of citizens and procurement Information is not made available to citizens and corruption is guarded and protected. This is why civil society organisations are advocating for an open budget system”.

    He reiterated that budget has been described as the most important document for the development of any country, emphasizing that the budget is regarded as open if citizens have access to the key budget documents; have high level of involvement in the budgetary process and have access to procurement information Democracy will be meaningless if the citizens do not participate in how government raise and spend money.

    “This is why the tool (Open Budget Survey Tracker) developed by the International Budget Partnership (IBP) is a very useful instrument. It surveys the availability of eight key budget documents to members of the public pre-budget statement, executive budget proposal, enacted budget, citizens’ budget, in-year report, mid-year review year-end report and audit report”.

    “The Pre-budget statement is meant to disclose the parameters of the budget proposal including macro-economic assumptions. The enacted budget is the budget that has been passed into law by the legislature. The Citizens’ budget is a simplified version of the budget proposal that the average citizen can understand and relate with the in-year report is a monthly or quarterly report of budget implementation”.

    He reiterated that the efficacy of the budget determines the success of governments in meeting societal needs.

    In his words, “There is a process of making budget which should be open transparent and participatory in order to bring about development. Unfortunately, despite the enormous resources in Nigeria, the country and its people are poor partly because of corruption, secrecy in the budget process and poor public finance management. This is why open budget is a necessity for development in Nigeria”.

    “Anyone interested in the development of Nigeria must join the movement for Open Budget in Nigeria”, he concluded.

    With an average score of 42 out of 100, Nigerian states provided some information on the budget and procurement processes with limited spaces for public participation. Twelve states significantly increased their scores by 20 points or higher while 18 states have improved their scores by at least one point.

    These improvements were mainly due to the timely online publication of budget documents and the enactment of procurement laws meant to better guide the procurement process.

    Only a few states regressed since 2018, with Delta and Lagos state scores decreasing by 21 and 22 points, respectively. These states did not publish budget documents online and closed spaces for public participation.

    With a score of 90, Jigawa performed best on the Index, as they did in 2018.

    The majority of states scored between 20 and 60, meaning they provided minimal to some information on the budget, few spaces for public participation, and limited information on the procurement process.

    Only Oyo and Zamfara states provided almost no budget information, had non-existent spaces for public consultation, and opaque procurement processes.

    CIRDDOC developed the Nigerian States Budget Transparency Survey (SNBTS) to analyze how transparent, open, and participatory budget and procurement processes are in Nigerian states and all 36 states are evaluated to see how much budget information is provided, spaces and mechanisms for public participation throughout the budget process, and how robust and transparent the procurement process is in the states.

    Remarks were made by the representative of FCDO Nigeria, Sam Waldock, Head of the Governance Team; Worldbank, Nigeria Governors’ Forum among others.

  • Governors and Executive Order 10

    Governors and Executive Order 10

    Editorial

    One intriguing fallout from the ongoing nationwide strike of judiciary workers must be seen in the attempt by the Nigerian Governors Forum (NGF) to make President Muhammadu Buhari’s Executive Order 10 as the main issue. Speaking on the issue on behalf of the forum last week, Plateau State governor Simon Lalong, insisted that not only is the Executive Order 10 not required for the implementation of the financial autonomy, he also made it known that the governors were not consulted before the president enacted the order. Saying that the attainment of autonomy is a process that cannot be enforced by the mere enactment of Executive Order, he further insisted that the issue would be resolved through dialogue.

    That position, in the opinion of this newspaper, is both opportunistic and diversionary. In the first place, that matter, already settled, is a constitutional one requiring no further negotiation. The issue is that it’s been nearly three years since President Buhari assented the Constitution Fourth Alteration Bill which grants financial autonomy and independence to states Houses of Assembly and their judiciaries (President’s assent was in June 2018).

    Secondly, the order, cited as “the implementation of financial autonomy for state legislature and judiciary Order, 2020,” was not enacted until May 2020, that is, nearly two years after that milestone amendment became part of the nation’s organic law. The purport of the order was to enforce the amendment by granting the Accountant-General of the Federation powers to deduct from the allocations due to a state from the Federation Account, any sums appropriated for the legislature or judiciary of that state which the state fails to release to its legislature or judiciary as the case may be, and to pay the funds directly to the state’s legislature or judiciary concerned.

    The above is however not to deny some grounds on which aspects of the order might be deemed rather expansive, to put it mildly. Indeed, while it seems doubtful that the president can, via an executive order, direct states on matters contained in the Concurrent Legislative list, even more doubtful is whether an order dictating to the states, going as far as to threaten to manage the funds accruing to them in the consolidated revenue of the federation could be deemed to be lawful.

    But then, those issues are separate from the amendment as already incorporated into the nation’s organic law and which the governors were sworn to uphold. Obviously, had they shown fidelity to an amendment they claim to have supported, or demonstrated good faith by subsequently setting in motion the necessary processes for its implementation in good time, not only would the executive order have been rendered superfluous, the ensuing strike which resulted from it and which has paralysed the work of the judiciary nationwide, would have been ordinarily, unthinkable.

    That the governors chose to dither on something as fundamental as implementing a provision of the constitution that came by way of an amendment is not only regrettable, it amounts to an intolerable dereliction of duty. That it happened can only be explained by greed and lust for power – a case of their unwillingness to let go of their control of another branch of government. So, rather than split needless hairs over the executive order, what should be uppermost in the minds of the governors now is how to implement a law that has been part of our statutes in the last 34 months so that normalcy could return in earnest to that important arm of government.

  • Wanton killing of military personnel must stop

    Wanton killing of military personnel must stop

    By Ifeanyi Aigbedion

    SIR: Last week, Nigerians woke up to hear about the brutal killing of an army Captain and some soldiers who were on a routine patrol operation in Konshisha Local Government Area of Benue State. The 11 fallen heroes were allegedly killed by gunmen who ambushed their military convoy.

    Unconfirmed reports also claimed that the slain troops met their tragic end after intervening in a ‘bloody’ communal clash between Konshisha and Oju local governments.

    Days earlier, they had been declared missing. But in a statement, issued penultimate Thursday, Brig. Gen. Mohammed Yerima, Director, Army Public Relations, said the missing soldiers were later found dead. This was after a search and rescue operation was conducted.

    Though, this is not first time that personnel of the armed forces have fallen victim of unscrupulous elements, it is heart breaking that service to fatherland is being turned into source of sorrow.

    With the killings come new widows and children who have no father to look up to. Dying in the war front is not a new thing, but when it happens when on a mission to restore peace, it becomes unacceptable.

    The series of attacks by gunmen on security personnel cuts across the country.

    Truth be told, families of our military personnel are already in pain, missing their loved ones engaged in several operations across the country. Some families have not seen their loved ones who are engaged in military operations, for months. The last any of the families want to hear is death of their loved ones.

    Deliberately killing people who have mortgaged their life for the country is adding salt to the injury.

    We must ensure the morale of our military personnel is not dampened. We must support them at this very crucial point in the history of our great nation. We must support the new service chiefs led by the Chief of Defence Staff (CDS), Gen. Leo Irabor, as they seek solutions to the security challenges ravaging the land.

    Thankfully, the killings has been condemned by Benue State governor, Samuel Ortom, who vowed to collaborate with security agencies to bring peace to Konshisha. Ortom, while describing the incident as unfortunate, apologised to the families of the fallen heroes. He vowed that the state government would collaborate with security agencies to ensure that all those who perpetrated the act are fished out and brought to book.

    He regretted the manner in which the soldiers died in the hands of the militias, while trying to ensure peace in troubled areas of the state. Ortom appealed to the families of the deceased soldiers to forgive him for uncomplimentary comments he may have made in the course of the situation, saying he said that based on the information available to him at that time.

    Political, community and religious and traditional rulers must educate their people on need to support the Armed Forces of Nigeria to bring peace to their domain.

    But beyond the condolences of Governor Ortom, there is need for a proactive measure to be adopted to arrest the spate of wanton attacks on military personnel.

    It should dawn on the federal government, most especially, to find a way to curb anything that will ‘shatter’ the morale of troops engaged in the various frontlines, and also hinder ongoing military operations. It is fundamental to ensure that effective military strategies evolved to fight terrorists, bandits, militia gangs, and other criminals, are not weakened.

    That is why necessary machinery must be put in place to avoid a repeat of the Konshisha event. And that is why we all (Nigerians) must not only worry that our military personnel are being maimed, on a daily basis. We must also do something to stop it.

    • Ifeanyi Aigbedion, Abuja.
  • Ebubeagu vigilante

    Ebubeagu vigilante

    By Emeka Omeihe

    Criticisms trailing the formation by Southeast governors of the Ebubeagu security outfit are not indications of the undesirability of a common platform to secure the region. Far from it!

    They rather denote the disenchantment of the people with the tardiness of their governors in floating such outfit in the face of security challenges that have set the zone on edge. Before now, the Ime-Obi of the Ohaneze Ndigbo had advised the governors on the imperative of regional protection but nothing came out of it except nebulous sympathy with the touted community policing agenda of the federal government.

    Sadly, as this prevarication persisted, criminal activities of all manners came to an all-time high in the zone which hitherto stood low in the rungs of the ladder of insecurity in the country. Gaps were created and a serious vacuum emerged. The people watched helplessly as kidnapping, armed robbery, attacks and despoliation of communities by herdsmen and sundry criminalities rendered life a miserable lot.

    Apparently capitalizing on this gap and the yearnings for some form of self-defense, the proscribed IPOB had announced through its propaganda machinery, the setting up of a security outfit known as the Eastern Security Network ESN. The aim they claimed is to fight insecurity in the southeast with special attention to the insurgency of herdsmen.

    Opinions are divided as to whether ESN actually exists on ground or part of the trademark propaganda of the IPOB. One man in the vanguard for self-determination, who subscribes to the view that ESN is social media hype, is Ralph Uwazuruike, leader of MASSOB. But governments (federal and state) had through statements attributed some of the criminal activities in the southeast to ESN.

    The implication is that these governments believe ESN operatives exist on ground. IPOB has somewhat been reinforcing the existence of ESN through regular statements claiming they maintain serious presence in the bushes and forests ridding them of the menace of the herdsmen. But they had serially denied the burning down of police stations, killing of security personnel and sundry acts of banditry that of late resurged in the southeast. The situation remained confused with governments and the IPOB trading blames in the face of the inability of the security agencies to be of reasonable help.

    The prevailing circumstance must have pushed the governors to a joint security meeting in which they announced the setting up of the Ebubeagu security platform. Coming a few days after the attacks at the Imo State Police Command headquarters and the correctional facility in Owerri, it was not surprising that the Ebubeagu project showed signs of an enterprise put together in a hurry.

    The haste with which they announced the outfit and many policy issues left unaddressed, combined to fuel the controversy the exercise has been embroiled. Public skepticism on the governors’ seriousness was further fuelled by the casual manner they announced the ban on open grazing which they asked security agencies to implement. It is little surprising that questions have been raised regarding the absence of an enabling law by the state assemblies to give legal backing to both the Ebubeagu outfit and the purported banning of open grazing.

    There are also issues regarding the relevant equipment, manpower and structures to give quick operational effect to the outfit. You do not just announce such a sensitive security platform without the men and material to give effect to its goals. But the governors’ answer to this is that they will draw from the pool of vigilante services already in existence in the states. What seems to have emerged is that the security outfit is still on the drawing board.

    Parallels have been drawn with the clinical efficiency and operational readiness southwest governors launched the operation Amotekun outfit to underscore the point that Ebubeagu was set up with an indecent haste. Some others have raised issues on the nomenclature (Ebubeagu, meaning the aura or reputation of the lion)

    This school contends that the aura or reputation of a lion is not the same as the lion and therefore incapable of doing what a lion is known for. They see a weakening of the whole idea of a strong regional security unit through the nomenclature. But what is that reputation or aura for which a lion is known? It lies in its awesome strength and prowess as the king of the jungle. That reputation frightens other lesser animals. And as it is put in Igbo- (Ebubeagu na-eche agu, meaning the reputation of the lion protects the lion)

    That reputation can as well protect the southeast through the instrumentality of the new security unit. So we should proceed beyond semantics to the substantive issue of the action plans put in place by the governors to halt the degenerate security situation in the zone. That is the real issue than what a name connotes. Yes, the governors could be accused of solving a mathematical puzzle from the answer.

    Yet, that is not to suggest the outfit cannot live up to its mandate. It can if the governors move with speed and put in place all that is required for it to function optimally. It is better late than the late. We find some comfort in Governor Okezie Ikpeazu of Abia State’s assurance that: “Ebubeagu would be a security outfit both in name, purpose and action. It will be properly equipped, rural based and intelligence-driven”.

    The governors should in liaison with their respective state assemblies, quickly enact laws to ban open grazing and give legal teeth to the Ebubeagu project. With the law in place, operatives of the security unit will be better equipped to live up to their mandate especially in the enforcement of the ban on open grazing. That will also be of immense help to the law enforcement agencies that are now being asked to implement the touted ban.

    Without an enabling law, nothing is likely to change in the current attitude of the security agencies on the insurgency of the herdsmen in the zone.  Ebonyi State which has been having a raw deal in the hands of the herdsmen in the last one month is a serious case in point. Unfortunately, the leadership of that state had been in the habit of playing down the potent danger such criminalities portend for the zone until lately. But it appears events have woken them up from the deep slumber into which they had sunk.

    Thus, when Governor David Umahi of Ebonyi State and chairman of Southeast Governors’ Forum raised the alarm of a plot to incite war in the region; the gravity of the situation began to dawn on us all. Hear him, “of late we have bandits that are now doing a lot of evil and saying that they are of Eastern Security Network ESN. They commit a lot of crimes and say they are IPOB members and most of the time, IPOB would say we have no hands in this, we have no hands in that”.

    Coming from a man who hitherto downplayed the precarious security situation of the region, we have every reason to take him seriously. In both his positions as the governor and chairman of Southeast Governors’ Forum, he is in a better stead to access vital security information. So when he said bandits carry out a lot of evil attacks and claim they are members of the ESN, he was drawing serious attention to the other angle of insecurity in the region. And it is damn serious.

    It is not clear who these bandits are or where they are coming from. But it is good Umahi is thinking outside the hallmark stereotypes and hasty assumptions typical of governors from that region. Some of his counterparts often rush to attribute security infractions in the zone to the so-called ESN even when their actual existence is still a matter of speculation. Recent deployment of the military in Orlu, Imo State ostensibly to flush out the IPOB and ESN is a case of reference. The same biased mindset also featured during the attacks on the states’ police command headquarters and the correctional facility.

    The new lead linking fifth columnists to the insecurity in the zone reinforces the imperative for a strong security outfit. It is instructive governors are beginning to see other dimensions to the rising insecurity in the region as Ebubeagu prepares to take-off.

  • The Pantami in all of us

    The Pantami in all of us

    By Aremu Lukman Umor

    SIR: Communication and Digital Economy Minister, Dr Isa Ali Ibrahim Pantami, has been in the news for bad for some days now and all his efforts to extricate himself out of the mess hasn’t yielded any positive result as some aggrieved Nigerians are already calling for his sack as minister. To them, people of Dr Pantami’s ideologies cannot be trusted with the prestigious office that he presides.

    Few days ago, a newspaper had reported about Pantami as being on US terrorist watchlist. Although the newspaper would later retract the story when the minister threatened to take them to court, particularly as the newspaper didn’t have facts to back their claim, the focus was already on his person.

    As it turned out, Isa Pantami had in the past held and shared ideologies considered as being at par with those of some terrorist groups. He had been seen on YouTube videos and heard on audio wherein he endorsed violence, encouraged reprisal attacks and glorified its masterminds. He was said to have extolled the late Osama bin Laden and asked Allah to grant some terrorist groups triumph in their fight against the unbelievers.

    No doubt, such extremist views are the reasons why this country has been finding it difficult to achieve peace for more than a decade now. What would have made Mohammed Yusuf found the Boko Haram sect if not extremism? Today, Boko Haram has killed many Nigerians and made many homeless. When about 700 of them were eventually caught by our gallant soldiers, some politicians actually suggested that the president rehabilitate and grant them amnesty. A top politician even asked the president to give them scholarship to study abroad!

    Now, the latest twist is that Ibrahim Pantami has renounced some of his fierce, and extremist religious ideologies. He reportedly said that he had held those ideologies when he was young and that he had turned a new leaf. The question is, will the people calling for his sack listen to him?

    The bitter truth is that there is a Pantami in all of us Those who are on his neck today have their own share of ignoble past. Some of us will admit it and some will not. But for those who will want to play saint, they only need to vie for a top political post or pray to hold a high position in the country as Dr Pantami has for their ‘sins’ to be laid bare.

    The moral in Dr Isa Pantami’s travail is that we should be mindful of our utterances for they may later come back to haunt us. We should not use our positions to preach hate but peace. We shouldn’t encourage or glorify evil doers no matter what.

    • Aremu Lukman Umor, NIJ, Lagos.

  • Nigeria’s economy remains fragile, says LCCI

    Nigeria’s economy remains fragile, says LCCI

    By Okwy Iroegbu­-Chikezie

    The Lagos Chamber of Commerce & Industry (LCCI) has expressed concerns over the state of the economy, insisting that the nation’s economy remains fragile.

    President, Lagos Chamber of Commerce & Industry (LCCI), Toki Mabogunje in a chat with The Nation observed that exit from recession did not imply an end to Nigeria’s numerous economic woes as the growth of the economy remained a problem.

    According to her, apart from fragility in growth, the economy is faced with several challenges, including rising consumer prices, weak employment level, lingering liquidity concerns in the foreign exchange market, depressed purchasing power, weak investor confidence, persisting external vulnerabilities and security concerns.

    She lamented that the weak performance of the oil sector reflects the peculiar regulatory and policy concerns in the sector.

    “Of the major 19 sectors, seven sectors including ICT, 14.7 per cent, agriculture, 3.42 per cent, and real estate, 2.81 per cent expanded in the fourth quarter while the other 12 sectors, including manufacturing,-1.51 per cent, trade, -3.2 per cent,  and transportation and storage, -5.95 per cent, reported contraction,” Mabogunje said.

    She stressed that the sub-optimal performance highlights the lingering effect of pandemic-related disruptions and numerous investment climate issues bothering many sectors of the economy.

    She added that accelerating the pace of recovery requires both fiscal and monetary policymakers to be well-coordinated in promoting growth-enhancing and confidence-building policies that would encourage private capital inflows into the economy.

    She advised that some measures were imperative in sustaining growth recovery in the short-to- medium term, noting that governments at national and sub-national levels need to intensify commitment towards creating a supportive and conducive investment environment to facilitate private sector involvement in economic recovery process.

    “It is imperative to deepen reforms particularly in the country’s oil and gas industry to bolster investor confidence and stimulate healthy competition, including deliberate efforts by policymakers towards addressing the numerous structural bottlenecks stifling the ease of doing business.

    “The country’s foreign exchange management framework needs to be reviewed to expand the scope of market mechanism in the determination of the exchange rate.  This is even more imperative in the process of attracting new investments and retaining existing ones,” Mabogunje said.

    She lamented the persistent increase in domestic prices, pointing out that the continued uptrend in headline inflation was being fuelled by persistent food price pressure, with food inflation rising to yet another record high.

    According to her, the key inflationary drivers are basically supply-side issues, which are beyond monetary policy control, security concerns in Northern and Middle Belt region, which has continued to disrupt agriculture in those areas, high cost of transporting food commodities from farms to markets as a result of elevated energy prices and the  lingering productivity issues in the agricultural sector, leading to weak output outcomes.

    She decried the lingering foreign exchange liquidity concerns, evidenced by the widening disparity between parallel market rate and Nigerian Autonomous Foreign Exchange Rate (NAFEX), elevated energy prices, the upward adjustment of electricity tariffs and cargo clearing challenges at the ports.

    “Continued uptick in inflation has profound implications for all stakeholders in the economy including households, businesses, and investors as it weakens purchasing power and consequently worsens the poverty conditions. This further escalates operating and production costs and erodes profit margins; and ultimately undermines investors’ confidence.

    “Galloping inflation complicates the pursuance of the price stabilization mandate of the Central Bank of Nigeria (CBN) even at a time the bank is deepening its intervention efforts to boost credit flows to the real economy,” Mabogunje said.

    She berated the divergent positions of both the fiscal and monetary authorities regarding the country’s foreign exchange framework.

    According to her lack the lack of cohesion among policymakers sends a negative signal to the investment community, worsens uncertainty, and further dampens investor confidence.

    She advised on the need   for the fiscal authorities, CBN and Economic Advisory Council to be on the same page as far as the country’s foreign exchange policy framework is concerned.

    She reiterated the need for the nation’s foreign exchange policy to be reviewed to expand the scope of market mechanism in the determination of exchange rate. According to her it is critically important for policymakers to harmonise the multiple exchange rates into a single market-reflective rate.

  • Why food prices are going up

    Why food prices are going up

    With the continuous rise in food prices, Nigerians are in doubt if they will be able to afford a day meal in the coming month(s), as three square meal is no longer part of their daily plan. JULIANA AGBO examines the factors responsible for the current situation

    Despite efforts by government to boost the agricultural sector in several ways and make Nigeria self sufficient, the cost of staple foods and other consumables continue to soar high.

    While the price of staples and other consumables like beans, soybeans, maize, sugar, garri, palm oil, tomatoes, dairy and poultry products among others  have soared, Nigerians are not sure of what will happen in coming months as the prices may still go higher between the month of May and September.

    However, experts are of the view that the current situation is due to the effect of the COVID-19 lockdown, flood, high demand and low production.

    The Food and Agriculture Organisation (FAO) of the United Nations in its Cadre Hamonise (CH) report on food security and nutrition analysis released on November 5, 2020, said about 13. 8 million people will be facing acute food shortage crisis between June and August 2021.

    It also said the number could grow to about 14 million if measures are not taken in time to avert the hunger crisis.

    The report shows that more Nigerians in northern States are pushed to acute food shortage crisis mainly due to floods, climate change effects and the ongoing insurgency.

    Inflation and causes

    Data from  National Bureau of Statistics (NBS) reveal that Nigeria’s food inflation  increased by 1.16 percent on a year-on-year basis from 21.79 percent in February to 22.95  in March.

    The March 2021 consumer price index/inflation report released by the NBS stated that the rise in the food index was caused by increase in prices of Bread and cereals, Potatoes, yam and other tubers, Meat, Vegetable, Fish, Oils and fats and fruits.

    According to the report “The urban inflation rate increased by 18.76 percent (year-on-year) in March 2021 from 17.92 percent recorded in February 2021, while the rural inflation rate increased by 17.60 percent in March 2021 from 16.77 percent in February 2021”.

    “In March 2021, food inflation on a year on year basis was highest in Kogi (29.71%), Sokoto (27.02%) and Ebonyi (26.59%), while Abuja (20.10%), Kebbi (19.98%) and Bauchi (18.61%) recorded the slowest rise in year on year inflation.

    On month on month basis however, March 2021 food inflation was highest in Rivers (3.52%), Niger (2.92%) and Gombe (2.85%), while Zamfara (0.51%) recording the slowest rise in month on month food inflation with Yobe and Kebbi recording price deflation or negative inflation (general decrease in the general price level of food or a negative food inflation rate).”

    Causes and effects of emerging market price

    Surveys by The Nation across major markets in the Federal Capital Territory (FCT) and Nasarawa State reveal that prices of food stuffs and other consumables are twice the prices of 2020 and early 2021.

    Nwankwo Boniface, a food stuff seller who explained that the only staple with a stable price in market is rice, which they are expecting  lower decrease, said garri, beans, semovita, wheat and flour are on a very high increase.

    Boniface said  10kg of Semovita is now N3700 against the price of N3,400 obtained earlier.

    He said: “The 10kg Semovita we used o buy at the rate of 3,400 is now 3,700 which we sell between 3,800 and 3,900. Before we bought a bag of white and yellow garri for N15,000 and N17,000, now, white bag of garri is N25,000 while the yellow one is N27,000, the mudu people normally measure is now N500 for yellow  while white is N450.

    “Currently, we are buying bag of white beans for N40,000 while that of  the brown is N50,000, they are telling us to buy more and keep because it will be more expensive soon. A mudu of white beans is now N650 while brown is N750. We barely sell reasonable quantity on daily basis, if it persists, we may end up buying goods for ourselves without people patronising us, urgent measures should be taken to help Nigerians.

    Boniface, who while explaining that some people have attributed the high cost of food to lack of adequate storage facilities, lingering farmers/herders crisis and low production due to effect of lockdown from the COVID-19 pandemic, urged governments to encourage farmers to go to farm.

    “The level of insecurity is getting to much, manufacturers can’t reduce prices due to the cost of raw materials. Our youths should also be encouraged and enlightened  to be interested in agriculture. We are in this situation because of the high cost of raw materials used by manufacturers. There should be re-orientation of our youths which should bring about attitudinal change”, he added.

    Speaking further, a tomato farmer and seller, Shuaibu Alhaji who spoke on the high cost of tomatoes, said the current high cost is due to the high demand from Easter celebration which led to scarcity.

    He said farmers are not producing enough tomatoes due to the poor production practices including usage of old varieties, low soil fertility, inadequate pest and weed control and the high post-harvest losses due to the poor handling and distribution system.

    “We used to get tomatoes from Kano, Jos, Bauchi and Nasaraw States, but now, we get from only Kano and Bauchi. We were buying a basket of tomatoes between N3,000 to N4,000 but now we buy between N12, 000 and N15,000.

    A grain seller, Idowu Gambo, who said consumers think they are deliberately increasing the cost of food stuff, said no trader would go to market to buy goods in large quantities and wouldn’t want to sell.

    Gambo said an egg, which sells for N70 due to high cost of feeds, may still sell for N100 in coming months if nothing is done.

    “The raw materials used for feeds production such as maize is on a high demand. A lot of consumers are not responding, we hardly sell enough a day due to the high cost and this is not good for the commodities we sell as they may go bad with time,” he added.

    Mohammed Dahiru, a meat seller, said meat prices are on the high side due to lingering farmers/herders crisis, feeds and the cost of transportation.

    Dahiru said the implication of the hike in food prices tell on what they are selling as people hardly patronise them daily.

    “Most of us pay huge amount of money to cold rooms to preserve our meat for us due to low patronage, you can’t be 100 percent sure if the meat will be properly preserved because of epileptic power supply”, he said.

    Speaking on the causes of the high cost of commodities, the National President, Maize Growers Processors and Marketers Association of Nigeria (MAGPAMAN), Dr Edwin Uche said the challenges that has to do with maize and other commodities, came from the advent of COVID-19 pandemic that affected movement of service delivery within the agricultural sector.

    Uche said movements were restricted and farmers could not grow much in 2020 which resulted to the current situation Nigerians are facing.

    “The year 2020 was a challenging year globally and the advent of COVID-19 pandemic affected the movement of service delivery within the agricultural sector, most of the agrochemicals and what we need to drive agriculture in the north comes from the south.

    “Movements were restricted and farmers could not grow much in 2020, the salvage we had was towards the end of the year, the Central Bank of Nigeria (CBN) intervention like the Anchor Borrowers’ Programme were fully activated to see how we could be able to bride the gap experienced between March and September 2020.

    “Before then, we could not harvest what we planted during dry season especially in 2019 and could not do an established dry season for 2020 and early wet season for 2020 also. We managed to do late wet season and dry for  season 2020/2021.”

    Uche further explained that the output from the field was very low and it affected the produce have in the market.

    “This is not just a Nigerian factor, but a global issue, agriculture suffered a major blow globally due to COVID-19,” he said.

    Furthermore, he said the association are doing everything possible to engineer farmers and motivate them to work with the necessary government agencies that has to do with agriculture.

    “The federal government through the CBN have voted in billions of naira to support agricultural interventions, we are doing everything possible to engineer our farmers and motivate them to work with the necessary government agencies that has to do with agriculture to grow enough to support both local and industrial use in 2021 and beyond.

    “We will have massive harvest towards the end of the wet season, we believe in a short while, the cost of production will go down”, he added.

    Fear of malnutrition

    Health experts have warned that if the food price hike continue to persist without any urgent solution, most consumables will be adulterated and there will be an increase in malnutrition among children.

    The experts, who quoted the United Nations International Children’s Emergency Fund (UNICEF) report on  Nigeria being the second highest burden of stunted children in the world with a national prevalence rate of 32 percent of children under five, said a lot need to be done to avert the looming food crisis.

    “An estimated 2 million children in Nigeria suffer from severe acute malnutrition (SAM), but only two out of every 10 children affected is currently reached with treatment. Seven percent of women of childbearing age also suffer from acute malnutrition”, it said.

    This, the experts say, will be on high increase, if not prevented.

    An expert, Dr Samuel Olukokun, who nothing technical can be done in farms at the moment to salvage the situation, urged the government to flood the market with grains from its strategic grains reserve.

    Furthermore, what is required of the government is to provide an enabling environment for the agricultural sector to thrive.

    Olukokun reiterated the need for modern  agriculture, adding that improved seedlings such as flood-resistant seeds should be given to farmers  free of charge.

    He urged government  to make it easier for people to access more nutritious food. Malnutrition can be caused by eating poor quality food, which is low in nutrients.

    “Policies that encourage people to grow and eat more nutritious foods can help.

    “The government should move from reacting to food emergencies to long-term planning. Anticipating and acting to prevent food crises before they occur is vital for reducing malnutrition,” he added.