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Category: Issues

  • Bridging electricity gap through public, private partnership

    Bridging electricity gap through public, private partnership

    As Nigeria celebrates 65th independence anniversary, access to adequate and regular electricity supply remains a key challenge. With major reforms in regulations, sources, administration and sustainability, the government has taken major measures to address electricity constraints. A budding private, public partnership (PPP) across the electricity chain represents substantial potential to bridge diverse access to electricity. In this report, Deputy Group Business Editor, Taofik Salako, reports on how PPP-based off-grid power projects are transforming communities.

    The facts around Nigeria’s electricity industry are staggering. The federal government subsidised electricity supply to customers by N536.4 billion in first quarter 2025. On the average, monthly electricity subsidy stands at about N200 billion. The gap between annual subsidy estimate and actual budget is more than 80 per cent. For instance, in 2024, annual subsidy was N2.9 trillion while the Appropriation Act was N450 billion, building up residual debts currently estimated at more than N4 trillion. Besides, Nigerians spend some N30 trillion annually on personal, off-grid power generation.

    With nearly half of Nigeria’s population not connected to the national grid, the country is faced with dual challenge of resolving inefficiencies in national grid supply and enabling alternative power systems to provide electricity as the basic catalyst of its economic development programme.

    The Federal Government is aggressively pursuing multi-faceted strategies to bridge the electricity gap, energising both global and domestic partnerships to simultaneously drive enabling reforms that improve the efficiencies and competitiveness of the electricity market while expanding supports for the vulnerable and underserved segment.  

    At the recent Mission 300 summit, President Bola Tinubu underscored the importance of private, public partnerships in achieving mass electrification of Nigeria and other African countries. Tinubu estimated that Nigeria would require an investment of $23.2 billion for last-mile electrification, including contributions from the public and private sectors. These targeted investments are not entirely for national grid electrification projects; a substantial portion involves off-grid solutions such as standalone solar projects that deliver affordable and renewable energy to many isolated rural communities in the north as well as mini-grids to serve some urban centres.

    A United Nation Development Programme (UNDP) report, published in July 2025, highlighted transformative initiatives by the government over the past two years, starting from the landmark June 8, 2023 signing into law of the Electricity Act 2023 by Tinubu to the institutionalisation of the National Integrated Electricity Policy (NIEP) in May 2025. NIEP, which was mandated by the Electricity Act 2023, provides comprehensive blueprint for universal electricity access, a higher renewable energy mix by 2060, and establishes new electricity market designs among others.

    “For the reforms in the sector to succeed, financing is key. Public finance alone will not solve the sector’s challenges, hence leveraging private sector capital is crucial,” the UNDP report stated, noting that NIEP rightly recognised that “significant capital injection from the private sector and development partners is essential for network expansion and achieving universal access”. 

    The Energy Commission of Nigeria stated that transformative investments and initiatives by the Tinubu-led government have increased the country’s electricity supply by 50 per cent, from historic 4,000 megawatts to 6,000 megawatts. But this still falls short of a quarter of what the country needed to achieve full electrification. “For every household to have affordable access to electricity, Nigeria must generate 40,000 MW,” Director-General, Energy Commission of Nigeria, Mustapha Abdullahi, said.

    Partnerships for light

    With the undeniable need for private initiatives, the launch of a scalable off-grid electrification project by Africa Nature Investors (ANI) Foundation and the Australian High Commission in Nigeria has generated much excitement among stakeholders. ANI Foundation is rooted in sustainability and diversity. It provides hands-on protected area management including community engagement, ranger-led law enforcement, and enterprise planning support delivered through long-term management and partnership agreements with government. The not-for-profit organisation, which collaborates with the National Park Service (NPS), currently works in Gashaka Gumti National Park in Taraba and Adamawa States and Okomu National Park in Edo State. ANI Foundation’s objective is to protect Nigeria’s incredible biodiversity while demonstrating that conservation can drive local economic development through the long-term co-management of protected areas.

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    The ANI Foundation-Australian High Commission partnership, built on a PPP with the NPS and host communities, has delivered boundless to people of Mayo Selbe, a community tucked deep behind the rolling hills and mountain peaks of Gashaka Gumti National Park and the Mambilla Plateau. Mayo Selbe was one several Nigerian villages for which electricity was something they could only dream of, but now savouring illumination through alternative, off-grid projects. A total of 63 households in Mayo Selbe, chosen by a GPS-driven scientific method of mapping, have been connected to the off-grid electricity project, with the scientific method ensuring spread and fairness within the community.

    The Mayo Selbe project, undertaken under Direct Aid Programme of the Australian High Commission, also involved an Australian company, Okra Solar and Creeds Energy, a Nigerian clean-tech company focused on sustainable, affordable and reliable solar solutions.

    The choice of Mayo Selbe for the pilot phase of the expansive off-grid project was symbolic. The people of Mayo Selbe represented the vast majority of underserved communities, which hopes of electrification had been delayed or dashed by the retinue of Nigeria’s failed or abandoned projects. For the people of     Mayo Selbe and many other communities living in the southern part of Taraba State, close to the border of Gashaka Gumti National Park, they had hoped and prayed for more than five decades for the realisation of the 3,050 megawatt hydroelectric Mambilla Power Project. The project, conceived as far back as 1972, was meant to have been built on the Mambilla Plateau near the border with Cameroon, just over an hour’s drive from Mayo Selbe. Regarded then as one of the biggest power projects in Africa, the Mambilla Power Project remains till date a dream, characterised by allegations of corruption. So, the joy of the people of Mayo Selbe was palpable when flickers of light beamed through the community for the first time ever.

    What electricity means for the people  

    During the commissioning of the project at the palace of the community chief, His Royal Highness, Yerima Thomas Maiyanga, the people of Mayo Selbe danced, cheered and rejoiced as intermittent speeches by stakeholders. Known as Kum Mayo Selbe, Maiyanga himself was effusive in his praise of ANI Foundation and the NPS.

    He said: “ANI Foundation has carried out many initiatives to empower and equip community members since they started working at the Gashaka Gumti National Park, in partnership with the National Park Service. We have seen the empowerment scheme for women for example, whose impact has been felt in different households and across the community. Today, 63 households have been connected to the electricity project, this is even more than we ever dreamt about”.

    The Lamido of Gashaka, Zubairu Hammangabdo Sambo, who also spoke at the commissioning, commended the partnership between ANI Foundation and the Australian High Commission. He noted that the project marked a new height in community development initiatives in Gashaka and beyond. According to him, the Mayo Selbe electrification project built on other projects by ANI Foundation, including the training of hundreds of women in the area in modern agricultural practices.

    Richard Okorie, a man from the eastern part of the country who has lived in Mayo Selbe for the past 35 years, was overwhelmed with joy in his appreciation of ANI.

    According to him, the scheme would save him a lot of the money he would have spent on petrol to power his business and residence.

    “Knowing that the Gashaka Gumti National Park, being operated by the National Park Service (NPS), is here, this is the type of benefits one can look forward to. The partnership between NPS and ANI has yielded this wonderful project. It is a huge relief to finally have electricity, which as you can see, is why I can now watch TV, put on the fan and power my business,” Okorie said.

    Hafsatu Ladan, a female beneficiary who also spoke on the development, described the electrification project as God-sent to the community.

    She said: “It is a new beginning for the community and the people of Mayo Selbe are more than happy with the development, which will not only empower those who own shops in the community but will also help our children study anytime of the day”.

    With electricity remaining a luxury in many communities in the area, Hassan Musa, another resident, said Mayo Selbe is now one of those to be envied across the Gashaka landscape, all thanks to ANI Foundation and the Australian High Commission.

    Everyone agreed on one thing: the project would transform lives as it was known in the community, especially at night and particularly in the selected households.

    Community relations

    Country Manager, ANI Foundation, Nacha Geoffrey, said the Mayo Selbe project was conceived and delivered in continuation of the not-for-profit organisation’s objective to transform and empower communities living around the national park.

    Geoffrey said the GPS-based method was adopted to ensure that the selection process for the beneficiaries was even, fair and transparent.

    Conservator-General, National Park Service, Dr. Ibrahim Goni, described the project as a new milestone by ANI Foundation in its unrelenting efforts regarding community empowerment.

    Goni, who was represented by Assistant Conservator-General Cornelius Oladipo, called on the community to take ownership and protect the project.

    He said: “I congratulate you on this transformative development and urge you to safeguard this solar infrastructure and continue to work closely with the National Park Service and ANI Foundation”.

    Australian High Commissioner to Nigeria, Her Excellency, Ms Leilani Bin-Juda, said the project was a meaningful milestone in community impact.

    “It is truly inspiring to see the fruits of the collaboration between such an innovative Australian company, Okra Solar, and our esteemed partner through the High Commission’s Direct Aid Programme, Africa Nature Investors (ANI) Foundation, who have been carrying out remarkable projects helping local communities, particularly around the Gashaka Gumti National Park.

    “This initiative, which will bring clean, green, solar energy to 63 households in Mayo Selbe for the first time, represents a meaningful milestone in delivering tangible benefits to the local community around Gashaka Gumti National Park,” Bin-Juda said, in her message to the community at the commissioning ceremony.

    Taraba State Commissioner for Heritage and Ecotourism, Hon. Joseph Nagombe, said the project aligned with the developmental goals of the Agbu Kefas administration.

    He reiterated the support of the Taraba State Government for ANI Foundation and other development partners, especially on projects around the Gashaka Gumti National, which contains highest mountain peak in Nigeria and West Africa.

    “It is indeed heartwarming to see the ANI Foundation partnership with the National Park Service delivering tangible community development linked to tourism initiatives, in Taraba State,” Nagombe, a son of the soil, said.

    Also, Member of the Code of Conduct Bureau and retired judge of the Federal High Court, Justice Ibrahim Buba, captured the essence of the project succinctly. He said the project demonstrated a partnership founded on vision and commitment.

    He said: “The commissioning of this solar electrification project in Mayo Selbe is a testament to what can be achieved when vision meets commitment. This initiative, spearheaded by the Africa Nature Investors (ANI) Foundation in partnership with the Australian High Commission and the Gashaka community, exemplifies a truly transformative collaboration. As many of you know, our community in Gashaka has long been a dedicated partner with the ANI Foundation, working tirelessly to preserve our natural heritage while fostering sustainable development. It is not easy to give people electricity, ANI is doing it, which is essentially about carrying out a revolution without making noise”.

    With the success of the pilot phase, ANI Foundation said it would replicate the off-grid project in many other communities. Deputy Project Manager, ANI Foundation, David Peter, said while the Mayo Selbe was one-of-a-kind, more of such would be replicated in more communities. He said the project framework was built for expansion and greater reach to unserved and underserved communities.

    Experts agreed that solar energy is probably the most practicable solutions to Nigeria’s energy problem. This much was also captured by the NIEP. As the country continues the implementation of the Electricity Act 2023, with acceleration of the deployment of the NIEP, analysts expressed optimism that increased participation by all tiers of government and foreign and domestic private stakeholders, the country should witness significant improvement in the scale, adequacy and reach of its electrification supply. At the intersection of all these efforts lie meaningful PPP models, a commitment recently reinforced by the Tinubu-led government.

  • Nigeria’s non-resident banking and push for global financial inclusion

    Nigeria’s non-resident banking and push for global financial inclusion

    For a long time, Nigerians living abroad have faced significant hurdles in engaging with their home country’s financial system. Opening bank accounts, investing in local markets, and sending money home were often fraught with high fees and bureaucratic complexities, creating a disconnect between their cultural and emotional ties and their financial participation. This is now changing with the introduction of the Non-Resident Bank Verification Number (NRBVN) platform by the Central Bank of Nigeria (CBN), Assistant Editor Nduka Chiejina reports

    Launched in Abuja by the Central Bank of Nigeria (CBN), in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), the Non-Resident Bank Verification Number (NRBVN) represents a significant technological advancement aimed at integrating diaspora Nigerians into the national financial ecosystem.

    CBN Governor Olayemi Cardoso said this initiative marked the beginning of a journey towards full digital financial inclusion for all Nigerians, irrespective of their location. The NRBVN signifies that Nigeria’s financial system is becoming truly borderless, offering its citizens abroad access without the need for physical presence.

    This platform is more than just a policy change; it’s a strategic move to place financial inclusion at the forefront of Nigeria’s economic diplomacy. The NRBVN provides a digital gateway for a previously underserved demographics, enabling them to access banking services as easily as residents within Nigeria.

    A major obstacle for diaspora Nigerians was the lack of a Bank Verification Number (BVN), which excluded them from essential financial activities. The NRBVN resolves this by offering a fully digital, remote verification process, eliminating the need for in-person visits and bureaucratic delays. Analysts have praised this as a crucial step towards embracing digital finance and recognizing the vital role of diaspora remittances in Nigeria’s foreign exchange stability.

    Removing long-standing barriers

    The CBN’s NRBVN platform directly addresses and eliminates key barriers that have historically prevented diaspora Nigerians from actively participating in the country’s financial growth. This initiative is about ensuring rights, dignity, and inclusion, not just convenience.

    CBN officials have stated that the NRBVN will enable Nigerians abroad to open and operate bank accounts, send and receive remittances, invest in various financial instruments, and support development initiatives from their international locations.  Cardoso pointed out the significant reduction in time and financial costs, especially for those in remote areas. Access to Nigeria’s financial services is now a matter of digital efficiency rather than costly travel.

    Dismantling legacy obstacles

    The NRBVN systematically tackles seven deeply entrenched challenges that have long hindered the financial integration of diaspora Nigerians. Previously, opening a Nigerian bank account required physical presence, an impractical demand for those living abroad. The NRBVN introduces a secure remote digital verification process. In addition, banks operated with limited interfaces for diaspora engagement. The NRBVN now acts as a single digital gateway, providing comprehensive access to the Nigerian banking ecosystem, including account management and customer support.

    Diaspora Nigerians faced complex documentation and verification processes that deterred investment. The NRBVN, working with the Non-Resident Nigerian Investment Account (NRNIA), offers a transparent channel for investments in various sectors with full repatriation rights. Another obstacle addressed by the NRBVN is that before now, sending money home incurred high fees and lacked transparency. The NRBVN promotes secure, cost-efficient remittance channels under CBN supervision, aiming to lower costs and increase transparency, with a target of $1 billion in monthly inflows.

    Financial products often didn’t cater to the unique needs of diaspora residents. The CBN is now directing banks to create bespoke products, such as multi-currency savings plans and diaspora mortgages. Frequent policy shifts and poor communication bred mistrust. The NRBVN framework is designed to be predictable and investor-friendly, drawing on successful models from countries like India and Pakistan. Distance hindered direct contributions to Nigeria’s growth. The NRBVN now enables structured participation, allowing diaspora funds to support local industries and infrastructure.

     SW

    Learning from global best practices

    Managing Director, Access Bank Plc, Mr. Roosevelt Ogbonna, noted that the NRBVN platform draws inspiration from countries like India, Pakistan, and Mexico, which have successfully leveraged diaspora remittances for SWecoSWWSWnomic development. These nations he said have established accessible and secure systems that attract significant inflows. While Nigeria’s current annual remittances exceed $20 billion, there is potential to grow, learning from India’s over $83 billion annual inflow.

    The success of these countries lies in their integrated financial systems that include their diaspora. “In Kazakhstan and Tajikistan, remittances can account for nearly 30 percent of GDP, showing the significant impact diaspora contributions can have on household consumption, investment, and national savings, supporting Nigeria’s trillion-dollar economy ambition” he said.

    Nigerian banks and fintech partners, Ogbonna disclosed, are developing tailored solutions for the diaspora, focusing on key global markets and understanding the motivations behind remittances, which primarily include family support, investment, savings, education, and property acquisition.  The NRBVN is designed to support these diverse needs.

    Backed by a holistic framework

    The NRBVN is part of a broader financial framework that includes the Non-Resident Ordinary Account (NRO) and the Non-Resident Nigerian Investment Account (NRNIA). These accounts provide diaspora Nigerians with access to savings, transactions, and investment opportunities across various sectors, including equities and infrastructure. They also facilitate access to mortgages, pensions, and insurance designed for non-resident needs.

    Cardoso described the immense potential of engaging with over 20 million economically successful Nigerians abroad, viewing the NRBVN as a key to unlocking opportunities for both the diaspora and Nigeria’s development. “The assurance of full repatriation rights for investors using these accounts aims to build trust and encourage sustained engagement” Cardoso explained.

    This comprehensive strategy, combining digital identity access with integrated financial products, positions the CBN as a facilitator of inclusive financial development, signalling a new era of engagement with Nigerians abroad.

    Safe, regulated, and compliant

    The NRBVN platform is built with a strong focus on security, adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. Mr. Philip Ikeazor

    Deputy Governor, Financial System Stability Directorate of the CBN called the system a benchmark in identity verification, noting its advanced integration of identification data, exceeding current domestic standards, with robust data protection and privacy measures.

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    From a regulatory standpoint, he said “the NRBVN supports Nigeria’s financial integrity goals, including efforts to exit the FATF grey list”. Its transparency and structure are seen as crucial for enhancing Nigeria’s global financial standing. The Special Adviser to the Governor on Compliance Ms. Shola Philips noted that the NRBVN sets a high standard for integrating technology with institutional credibility.

    Boosting remittance flows and innovation

    Recent policy reforms have already positively impacted remittance inflows, increasing from $3.3 billion in 2023 to $4.73 billion by year-end. With the NRBVN, the CBN targets $1 billion in monthly inflows. CBN Governor, Cardoso, credited reforms like the willing buyer, willing seller regime for this upward trend and expressed confidence that the NRBVN will further boost these figures through increased trust.

    The CBN is also encouraging Nigerian banks and inviting international money transfer operators (IMTOs) and fintech firms to integrate with the NRBVN platform to enhance access and trust.  TapTap Send described the NRBVN as a game-changer, enabling larger transactions beyond typical remittances by fostering trust and reducing foreign exchange (forex) impact concerns. The firm  anticipates a doubling of remittance inflows, redirected towards long-term investments like property and businesses.

    Ogbonna added that the five main drivers of diaspora remittances are family support, education, investments, real estate, and philanthropy. Banks and fintechs he said are developing innovative solutions to cater to these needs, such as platforms for direct payment of family expenses, bank-to-broker systems for capital market investments, affordable housing schemes, and trusted channels for charitable giving.

    Committed to Lower Remittance Costs

    The CBN says it is committed to reducing the high remittance costs in Sub-Saharan Africa, which average over 7.0 per cent.  Cardoso has stressed the urgency of this issue, engaging with international bodies like the World Bank to find solutions. The NRBVN is seen as part of the journey towards more affordable and efficient remittance channels, requiring collaboration among regulators, banks, fintechs, IMTOs, and the diaspora community. Lowering these costs will enhance the appeal of formal channels and amplify the socio-economic impact of diaspora funds.

    A bridge to Nigeria’s global citizens

    At its core, the NRBVN is a bridge connecting Nigerians abroad with their home country, representing a bold step towards an inclusive financial ecosystem.  Cardoso summarized the intent behind the initiative. “By enhancing connectivity, trust, and access, the NRBVN aims to redefine the role of diaspora communities in Nigeria’s economic future” he said.

    The launch of the NRBVN signals a strategic shift in how Nigeria views and engages with its diaspora. Economic analyst and Managing Director, Ambosit Capital Managers, Dr. Wahab Balogun described it as a much-needed modernization of the remittance and diaspora investment ecosystem, with the potential to resolve long-standing hurdles and build confidence among diaspora Nigerians.

    He noted that the success of the NRBVN will depend on the response of financial institutions and reforms in the remittance value chain.

    He said: “If supported by attractive products and policy continuity, it could become an economic passport for global Nigerians, unlocking billions in capital flows”.

    Balogun also mentioned the need for seamless, secure, and beneficial experiences for non-resident Nigerians.

    In conclusion, the NRBVN represents a significant step forward in Nigeria’s efforts to engage its diaspora, aligning with global trends and potentially transforming the landscape of financial inclusion and economic development.

  • ISA 2025: Unlocking vast potential of Nigerian capital market

    ISA 2025: Unlocking vast potential of Nigerian capital market

    The signing into law of the Investment and Securities Act (ISA) 2025 by President Bola Tinubu is probably the most transformative reform in the Nigerian capital market in nearly two decades. With copious provisions on enhancement of investors’ protection, new securities, commodities, digital assets and expansive and nimble regulatory powers, Deputy Group Business Editor, Taofik Salako examines the potential of the new Act in the light of national economic agenda    

    For the first time in nearly two decades, Nigeria penultimate week made a remarkable review of the extant laws for its capital market. The signing into law of the new Investment and Securities Act (ISA) 2025 by President Bola Tinubu represents a momentous moment for the Nigerian capital market. The ISA 2025 repealed the Investments and Securities Act No. 29 of 2007.

    The new Act promises to reshape the Nigerian capital market in several ways. From investor’s protection to variety of issuable and tradable instruments to integration of the commodities sector to new innovations in derivatives, digital and paperless denominations to domestic enforcement and international cooperation, the ISA 2025 brought the Nigerian market to the most dynamic global level and provided enough headroom for regulatory ingenuity to meet future developments.

    The new Act introduced critical reforms to promote market integrity, transparency, and sustainable growth, while enhancing the authority of the Securities and Exchange Commission (SEC) as the apex regulatory authority of the Nigerian capital market. With such enhanced powers and functions, Nigeria is now fully in conformity with the requirements of International Organisation of Securities Commission (IOSCO)’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This EMMoU enables Nigeria to retain its “Signatory A” status, thus enhancing the overall attractiveness of the Nigerian capital market.

    Transformative changes

    There were several notable provisions that made ISA 2025 a landmark legislation. The Act expands the definition and understanding of securities by explicitly recognising virtual and digital assets as well as investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.

    There is also legal framework for commodities exchanges. The Act contains a new part which provides for the regulation of commodities exchanges and warehouse receipts. These provisions are essential to allow for the development of the entire gamut of the commodities ecosystem.

    In the area of issuance of securities by sub-nationals and their agencies, salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by sub-nationals to allow for greater flexibility in this regard.

    In terms of transparency in securities transactions, the new  Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.

    In a major enhancement of investor protection, the Act expressly prohibits Ponzi Schemes and other unlawful investment schemes, while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

    It also strengthens the Investments and Securities Tribunal (IST) by amending some key provisions in the repealed ISA 2007 pertaining to the composition of the tribunal, constitution of the tribunal, qualification and appointment of the chief registrar as well as the jurisdiction of the tribunal to enhance the ability of the tribunal to optimally discharge its mandate.

     ISA 2025 expands the category of issuers to the public, a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of SEC and other controls stipulated in the Act.

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    In the area of classification of exchanges and inclusion of provisions on financial market infrastructures, the Act classifies securities exchanges into composite and non-composite exchanges. A composite exchange is one in which all categories of securities and products can be listed and traded, while a non-composite exchange focuses on a singular type of security or product. There are also new provisions on financial market infrastructures such as central counter parties, clearing houses and trade depositories.

    It also provides comprehensive insolvency provisions for financial market infrastructures by introducing provisions that exempt transactions facilitated through or otherwise involving financial market infrastructures from the application of general insolvency laws.

    In the area of management of systemic risk, the Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.

    Stakeholders and experts said the new Act would usher in a new era of dramatic growth and development for the Nigerian capital market and the economy generally.

    Market expectations

    Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said the ISA 2025 was a game-changer with strong potential for stimulating growth for the Nigerian capital market and the economy.

    According to him, while the new Act fosters innovations, it provides enough deterrence and powers to curtail investor’s abuses and infractions, many of which had festered due to absence of enabling law.

    For instance, under the new Act, promoters and operators of any entity engaged in illegal and unauthorised investment scheme, otherwise known as Ponzi, are liable on conviction to a penalty of not less than N20 million or imprisonment to a term of 10 years or both.

    Agama noted that SEC previously lacked the legal power to prosecute Ponzi scheme operators, which made it difficult to bring offenders to justice.

     “With the new law, they now face a 10-year jail term and beyond,” Agama said, noting that the Act stipulates a minimum fine of N20  million for anyone operating a Ponzi scheme in Nigeria, and such penalties could be as much as the Commission indicated, including “disgorgement,” recovering any profits or gains obtained from defrauding Nigerians.

    Agama said the new ISA 2025 also provided SEC with the power to be able to obtain and request telephone conversations and all other conversations that are required to prosecute Ponzi operators.

    “We recognise that a lot of Nigerians have fallen prey to these sponsor schemes and the reason why that is the case is because there were no sanctions. What this Act has done was to introduce measures for Ponzi scheme operators and intending Ponzi scheme operators not to be able to do this again against the wish and will of Nigerians.

    “Protecting the investors in Nigeria is a cardinal responsibility of the SEC and this law has provided the SEC with stronger powers to be able to do that. This law has also been able to provide the SEC the powers to be able to search phones and get phone records for people who are interested in dealing with Nigerians or interested in duping Nigerians. We are able to get these records and quickly provide enforcement actions for the people that are involved. So, for us, the possibilities are limitless,” Agama said.

    He also cited expansive implications of new provisions on new securities, pointing out that the new law has increased capital raising opportunities through variety of instruments while providing regulatory basis for new vistas in the areas of online foreign exchange (forex) and digital assets.

    Said he: “This is huge because in the Nigerian population, the youths that are involved in forex and digital space are many. So, providing clarity, legal framework and background to this area is very essential for our growth.

    “The commodities ecosystem is well featured in this law. We are now able to provide regulations regarding the full commodities ecosystem, from the spot market to the derivatives market and the secondary market.

    “Also, by this ISA 2025, we have also been able to remove restrictions against the ability of states and local governments to raise capital and bring development to their states and of course municipal areas. So, this for us, is very important”.

    Chairman, Senate Committee on Capital Market, Senator Osita Izunaso, who sponsored the Bill on the Repeal and Reenactment of the Investment and Securities Bill 2025, describe the new Act as a holistic enactment aimed at resetting the entire investment and securities law in Nigeria.

    “With what we have done, today, for the first time in the history of Nigeria, the digital assets as well as cryptocurrency has now been recognised as a form of security in Nigeria. This means that people can now trade with digital assets, people can now do cryptocurrency and it will be properly regulated by SEC,” Izunaso said.

    He said while the Act would end all forms of Ponzi schemes in Nigeria, it will foster the growth of digital assets and cryptocurrency.

    He said the new Act has positioned the capital market to contribute more significantly towards the realisation of the $1 trillion economy.

    “If we want to achieve the $1 trillion economy that Mr. President is envisaging, we must promote both the money market and the capital market. So today, the capital market has been reset for that purpose.

    “I would also like to make it clear that the days of Ponzi insider trading and market manipulations are over in Nigeria. Today, if you are caught in a Ponzi market arrangement, you risk going to jail for 10 years and also pay a fine of between N20 million to N40 million and all the money that you took from people will also be recovered from you,” Izunaso said.

    President, Chartered Institute of Stockbrokers (CIS), Mr. Oluropo Dada said the new Act was a testament to collective dedication to advancing the capital market and securing its future as a catalyst for economic development.

    According to him, the ISA 2025 underscored government’s commitment to fostering transparency, efficiency, and stability in our financial markets.

    He noted that the Act introduced comprehensive reforms aimed at modernising the regulatory framework, enhancing investor protection, and creating a more robust platform for economic growth and development.

    “As capital market professionals, we are confident that this Act will deepen market integrity, boost investor confidence, and expand the range of investment opportunities available to Nigerians and global investors alike,” Dada said.

    Managing Director, APT Securities & Funds Limited, Mallam Kasimu Kurfi, said the new Act would usher in many changes in the market.

    “As you know, for more than 17 years, there had been no review in the capital market law, despite several changes, including the global meltdown of the capital market in 2008-2009. The digital securities and many other developments in the capital market needed to be addressed. The revised Act has added several new developments and we are going to have a complete change. There are going to be many new developments in the capital market,” Kurfi, a member of the board of SEC, said.

    Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Sam Onukwue, said the Act would strengthen regulatory oversight of the capital markets with the overall objective of enhancing investor protection.

    Said he: “We believe it will rekindle the confidence of market stakeholders, which will, in turn, engender significant growth of the market going forward.  For operators, it provides diversification opportunities with the expanded scope beyond traditional equities and fixed income”.

    Managing Director, NASD, Eguarekhide Longe, said the ISA 2025 came at the right time as the market needs to strengthen the regulatory framework given the unfolding digital products and the need to attract youths.

    According to him, the new Act would address several key issues, including investor protection and fraud detection, recognition of virtual assets as securities and systemic risk management.

    Managing Director, Lagos Commodities and Futures Exchange (LCFE), Akin Akeredolu –Ale, said reflected the competencies of the current managers of the economy.

    “We have people that now understand that the capital market is the barometer of the economy and that the enabling environment, particularly the legal framework, is the bedrock for growth of the capital market, and the overall economy,” Akeredolu-Ale said.

    Managing Director, HighCap Securities, Mr David Adonri, said the new Act would give new impetus to the orderly growth and development of the Nigerian capital market.

    “Many unregulated areas have been brought under regulation. The commodities space has been ring fenced while provisions have been made for safer trading in digital assets. Severe penalties have been prescribed for pyramidal schemes under the new ISA 2025. It reflects the realities that the market faces today. It is an enabling framework that will protect the investing public and boost investors’ confidence in the capital market. With the new ISA, the trust and integrity upon which the capital market is founded will be further strengthened,” Adonri said.

    With the government and companies raising more than N10 trillion in nearly 15 months, the new Act undoubtedly promises to unleash vast potential for issuers and investors. Nigeria’s huge infrastructural gap requires a versatile capital market, and the new ISA 2025 appears ready to facilitate that.

    As SEC engages with market operators, investors and all stakeholders to ensure a seamless transition from the repealed ISA 2007 to the new legal regime established under the ISA 2025, the capital market is set for a new era of growth and development.

  • Fostering livestock sector with small-scale farmers

    Fostering livestock sector with small-scale farmers

    A strategic vision for a prosperous pastoral farming sector is vital for Nigeria. This vision is intended to guide the food and agricultural sector towards a path of self-sufficiency, equity, and diversity. The deployment of the African Pastoral Markets Development (APMD) Platform by African Union Inter-African Bureau for Animal Resources (AU-IBAR) in Nigeria and other countries is expected to address increasing population and per-capita food demand, boost incomes for cattle farmers through modern marketing approaches, DANIEL ESSIET reports.

    Over the past five years, Nigeria has experienced a significant increase in its reliance on food imports, raising concerns regarding macroeconomic stability and food security, thereby casting doubt on the future of the agricultural sector.

    According to data from the National Bureau of Statistics (NBS), Nigeria’s food import expenditure reached its highest level in five years during the first quarter of 2024.

    Specifically, the amount spent on food imports surged by 95.28 per cent, totaling N920.54 billion from January to March 2024, compared to N471.39 billion in the same period of 2023. The livestock sector is particularly impacted by this trend. President Bola Tinubu recently highlighted that Nigeria spends around $1.5 billion each year on the importation of milk and dairy products, emphasising the urgent need for reforms in the livestock sector. The president stated this during a two-day Consultative Workshop on Livestock Reforms in Abuja.

    At this time, the sector of pastoral farming that supplies cattle is facing a variety of challenges, ranging from climate change and animal diseases to issues related to market access and environmental concerns. These challenges have had a considerable impact on food production systems throughout the country. Farmers find it challenging to access markets due to poor infrastructure, trade barriers, and inconsistent pricing, which complicates their ability to sell products at fair prices. Moreover, the variability in feed costs and competition from alternative protein sources can adversely affect profitability, making it increasingly difficult for small-scale farmers to sustain their businesses.

    Tackling these challenges necessitates a comprehensive strategy that encompasses the adoption of sustainable agricultural practices, investment in infrastructure, enhancement of disease management, and improved access to markets.

     To support the development and increase the productivity of the pastoral industry in the nation, the African Union Inter-African Bureau for Animal Resources (AU-IBAR), in partnership with the Federal Government, is facilitating the creation of the African Pastoral Markets Development (APMD) Platform. This initiative aims to promote market-driven transformations in pastoralism, which is a crucial source of livelihood for millions throughout the continent.

    The APMD platform is anticipated to foster economic growth, particularly in rural regions, by creating livelihood opportunities for numerous cattle farmers in Nigeria, Benin, Chad, Niger, and Cameroon.

    An APMD Technical Pillar Planning and Stakeholder Engagement Platform workshop which convened in Abuja, brought together experts and key stakeholders from Cameroon, Benin, Niger, and Chad to outline a transformative strategy for Africa’s pastoral communities.

    Earlier, the Minister of State, Federal Ministry of Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, underscored the current initiatives that are poised to make a substantial impact on the livestock sector. The efforts, according to him, are expected to enhance health services, cultivate skilled professionals, and promote the production of quality meat, ultimately benefiting the agricultural community.

    He pointed out that Nigeria possesses considerable potential for livestock development, owing to its abundant livestock population, conducive climate and vegetation, and a long-established culture of animal husbandry among its pastoralists.

    His words: “Nigeria’s livestock resources include about 21.2 million cattle, 76.3 million goats, 48.6 million sheep. These farm animals contribute to and facilitate the supply of animal protein, foreign exchange, raw materials for agro-allied industries which will ultimately assist to achieve Mr. President’s Renewed Hope Agenda.”

    According to him, “Nigeria is a major hub of animal product consumption in West Africa and is the most important market for livestock in the sub- region. It is also one of the largest livestock-raising countries in the region. Meeting the ever-increasing domestic demand and access to these flourishing markets are major economic stakes for Nigeria and for the neighbouring Sahel countries that raise livestock.

    He noted, however, that due to inadequate market information, most small holder farmer who constitute much of the farming populace are unable to take advantage of the prevailing high price for animal agricultural products, thereby allowing the greater part of the profit margin to go to the middlemen.

    He continued: “The pastoralists should form cooperative societies so that they can pool their resources together. This will go a long way in ensuring that they procure inputs such as feed, vaccines drugs etc. together from genuine source hence better quality at a reduced cost. They could also source for loans from credit institutions under that umbrella.”

    He indicated that the government was resolute in its intention to collaborate closely with AU-IBAR and other organisations to effectively implement recommendations intended to address existing and emerging concerns across the industry.

    The Director, AU-IBAR, Dr. Huyam Salih, represented by, the APMD Project Coordinator, Prof. Ahmed Elbeltagy underscored that the platform is intended to enhance the livestock sector and protect rural incomes associated with meat and livestock products.

     She described the APMD Platform as a beacon of hope for millions of pastoralists, stating, “The launch of the APMD Platform takes place at a crucial time, allowing us to confront existing challenges. By fostering collaboration and innovation, we can generate sustainable growth opportunities. This workshop is a vital step toward developing strategies that empower pastoral communities and facilitate transformation.”

    She outlined three primary pillars guiding their initiatives: an enabling policy environment, a functional data ecosystem, and private-sector integration. She expressed gratitude to the Bill and Melinda Gates Foundation for their financial backing and strategic collaboration, noting that their ongoing investment in the pastoral livestock value chain is both visionary and impactful, helping to tackle significant challenges and foster sustainable economic growth for pastoral communities throughout the region.

    She concluded : “As Nigeria serves as one of our leading countries, I am optimistic that the insights and success stories shared during this workshop will motivate other nations to join our efforts.”

    APMD Platform Technical Pillar Planning and Stakeholder Engagement workshop brought together experts and key stakeholders from Burkina Faso, Benin, Cameroon  and Chad  to chart a transformative path for Africa’s pastoral communities.

    According to her, Nigeria and Kenya have been identified as a “Lighthouse Countries ,” where the APMD Platform will initially translate strategies into action.

    Read Also: Livestock farmers turn to black soldier fly for animal feed

    Six additional Strategic Outreach Countries (SOCs) , apart from the lighthouse countries ,she noted, would  benefit from the lessons learned during this phase, in a bid to scale up success across the region.

    “The goal is to foster collaboration among pastoral livestock stakeholders and ensure that pastoralists can access more profitable markets while ensuring food security across Africa,” she added.

    Throughout the workshop, a significant consensus resonates among policymakers, government officials, and the private sector regarding the need for modernisation in the industry, especially concerning the enhancement of cattle farming practices and the improvement of market access.

    Acknowledging the vital role of the livestock sector in the economic stability and livelihood sustainability of the country, a former Director, AU-IBAR, Dr. Nick Nwankpa, posited that the failure to transform and develop the sector would have undesirable effects on the country.

    He asserted that a that pastoral agriculture development strategy must prioritise enhanced governance, increased productivity, profitable commercialisation, and greater competitiveness.

    This, according to him, should include supporting cattle farmers with knowledge generation, skill development and adopting appropriate technology.

    He pointed out that the development of the sector requires the effective management of resources, the promotion of livestock-oriented industries, the enhancement of knowledge, skills, and efficiency, the establishment of quality control protocols, and the strengthening of marketing strategies.

    A Professor of Animal Nutrition and Management and the Dean School of Postgraduate Studies, Nasarawa State University, Keffi, Nasarawa State, Maikano Ari, called for support to advance the animal husbandry sector.

    He indicated that the implementation of the APMD Platform will encompass several key initiatives designed to improve the pastoral sector and provide extensive assistance to local farmers.

    He expressed confidence that the intervention of the APMD platform will play a significant role in addressing challenges faced by the agricultural sector, particularly in pastoral farming, which is vital for the socio-economic development of rural communities.

     Head of Agriculture (North) Strategy, Partnership, and Solid Mineral at Sterling Bank Limited, Dr. Joshua Zira emphasised the urgent need to restructure and revitalize the pastoral farming sector to improve efficiency in addressing emerging challenges.

     He stated, “The agricultural industry is a dynamic field with numerous activities. This sector directly and indirectly employs 70 percent of the population and is a significant contributor to our gross domestic product (GDP), yet it has often been overlooked. Recognising the sector’s potential, we have been investing across its entire spectrum. We firmly believe in the sector’s capabilities.”

     Zira further highlighted that since a substantial proportion of cattle producers come from underprivileged rural communities, it is crucial to direct more efforts towards enabling them to significantly contribute to livestock production.

    He asserted that future growth hinges on enhancements in productivity, emphasising the necessity to revitalise animal markets to prevent the exploitation of farmers.

    He believes that the APMD platform will facilitate the adoption of suitable technologies, boost productivity, and foster investment in livestock development and management.

     He stated, “I am convinced that if we clearly define the objectives and expectations for the platform, we will create improved marketing opportunities for our farmers. In Nigeria, the focus is not solely on production; it is fundamentally about access to markets.”

    Among several issues discussed, stakeholders highlighted the importance of solid and accurate data in the livestock industry, urging policy makers to build robust data and statistical systems that support development.

    Concerns were voiced regarding the existing livestock statistics, which play a crucial role in shaping plans and policies related to the sector.

    According to stakeholders, the inadequacies and inaccuracies in the data have been further validated by significant inconsistencies in the information reported across the industry. There were suggestions for the adoption of technological measures to effectively track the movement of cattle from various parts of Africa into Nigeria.

    For his part, The Programme Officer, National Association of Nigerian Traders NANTS, Solomon Obike,noted that the industry was facing huge  development challenges that demanded innovative solutions, and modern production  systems were key, in this regard.

    The workshop further highlighted the legal complexities associated with the cross-border transit of animals.

    The Cameroon Country Coordinator, United States Department of Agriculture Forest Service-International Programmes, Bertille Mayen, emphasised the necessity of reassessing all regulations governing animal transactions throughout West and Central Africa, given that livestock transportation is subject to national border restrictions.

    She added that for the APMD to function seamlessly across the identified countries, a comprehensive review of laws and policies is essential to streamline the process of transporting regulated animals, such as livestock, birds, pets, and companion animals across borders.

    According to her, livestock producers contend with barriers, and provisions in trade agreements, which can represent opportunities as well as threats to competitiveness and overall business performance.

  • REAN appoints new Executive Secretary

    REAN appoints new Executive Secretary

    Dr. ‘Tosin Akande has been appointed as the Executive Secretary of the Renewable Energy Association of Nigeria (REAN).

    A global development, project management and renewable energy specialist with more than 15 years experience across the United States, United Kingdom and Nigeria, Akande has played active roles in sustainable energy, housing construction, water-utilities, agro-business enterprise, and economic development sectors.

    She started her international career with City of Baltimore Department of Housing and Community Development in Maryland, USA as a Mayoral Fellow and Real Estate Planner managing the disposition of city-owned property. 

    She also worked as a Network Analyst in the water engineering department of Thames Water in London, UK managing utilities pipes, mains, reservoir-assets, and impact on water quality for City of London end-users. 

    After her exposure overseas in infrastructure asset-management, Akande decided to pursue her purpose, fervour, and zeal for national transformation and economic development on the home-front.  In her first professional stint in Nigeria, she was the Monitoring and Evaluation Lead for the World Bank-DFID Growth and Employments in States, Construction and Real Estate Programme—GEMS 2. 

    Thereafter, she worked as a Market Analyst and Intervention Lead for UKAID-DFID Business Innovation Facility, Agro-Business Enterprise Programme—BIF 2. 

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    As a resident and development practitioner concerned about the problems plaguing Nigeria’s power sector – a fundamental determinant of the nation’s economic growth and industrialisation, in 2015, she pivoted into the energy sector by executing advanced research at the doctoral level for six years. 

    Her research investigated prospects of solar clean tech solutions to be quick-wins in circumventing the capital-intensiveness of Nigeria’s grid-network expansion and rectifying energy vacuums with the purpose of intensifying output-productivity, gross revenues, profits, and firm enterprise competitiveness. 

    As Lead Consultant and Founder, insights from her study prompted her to establish RED Energy & Sustainability Unit (RES:UNiT) an arm of RED Universal Consulting, a global development and energy advisory practice, where she has supported as an independent consultant various Nigerian power sector stakeholders. 

    These include Private Solar Enterprises / Energy Entrepreneurs, REA, and Nigeria Energy Transition Office (ETO) at SEforALL.  Most recently, she was the pioneer Team Lead, Renewable Energy Off-Grid Solutions at PowerCap Ltd, an energy utility providing network-upgrades, asset-marking-mapping, metering, enumeration, and revenue cycle management to Ikeja Electric, Eko, and Enugu DISCO’s.  At PowerCap, she built the company’s RE portfolio five-year outlook culminating in $34.9 million Pico and SHS; $8.8 million captive power; and $9.6 million mini-grid, potential market-revenue project pipeline.

    Akande is keen on engaging energy practitioners and industry stakeholders with an unrelenting resolve to produce quantum level, breakthrough outcomes in power supply for Nigeria, continental Africa, and other emerging nations across the globe, leveraging on market-disruptive Solar RE Ideations, Initiatives, and Deployment.

    Akande holds B.A. dual honors degrees in Governance & Public Policy from Syracuse University, New York, USA, and M.Sc. honours degree in Development Studies from the London School of Economics (LSE).  She earned her Doctor of Philosophy Degree from the University of Massachusetts, Lowell, MA in Socio-Economic Development.  She is a member of African Women in Energy Development Initiative (AWEDI) and a Non-Independent Executive Director at Renewable Energy Bank of Africa (REBA).

  • ‘Summit holds on FATF compliance’

    ‘Summit holds on FATF compliance’

    The Nigerian Capital Market Institute (NCMI), the subsidiary of the Securities and Exchange Commission, is holding a compliance summit for chief executive officers and compliance officers on Financial Action Task Force (FATF) and other related issues.

    The two-day summit with the theme: Navigating regulatory challenges: Aligning with changes in FATF in the era of VASPS is scheduled to start today at the Federal Palace Hotel in Lagos.

    Director General, Securities and Exchange Commission (SEC),  Dr. Emomotimi Agama said the summit will provide capital market operators with the tools and knowledge necessary to thrive in a complex regulatory environment, ultimately fostering a culture of compliance and integrity in their operations.

    “The aim is to equip capital market operators with essential insights and strategies to effectively navigate the evolving regulatory landscape.

    “Attendees are to gain knowledge of Understand Regulatory Changes, clarity on the latest updates to FATF (Financial Action Task Force) standards and how these impact virtual asset service providers (VASPs).And learn best practices for aligning their compliance programs with new regulations, ensuring they meet international standards enhancing compliance frameworks in their organisations,” Agama said.

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    The welcome address is expected to be presented by Ms. Frana Chukwuogor, Executive Commissioner, Legal & Enforcement, SEC, opening remarks and overview of the summit by Dr. Agama while Ms. Hafsat Bakari, Director, Nigeria Fraud Intelligence Unit, NFIU will present a goodwill message.

    According to the commission, key objectives include regulatory compliance: understand and implement Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regulations, risk management: identify, assess and mitigate risks associated with virtual assets and operational efficiency which will lead to enhanced internal controls, governance and compliance frameworks.

    The benefits of the summit include regulatory clarity: clarifies regulatory expectations and obligations, risk reduction: minimizes risk of non-compliance, fines and reputational damage and enhanced governance: strengthens internal controls and compliance culture.

    Other benefits are competitive advantage: demonstrates commitment to compliance, enhancing reputation and trust and networking opportunities: facilitates collaboration and knowledge sharing among industry stakeholders.

    Speakers expected at the event are Mr. Obinna Iwuno, Chairman, Stakeholders in BlockChain Association of Nigeria (SiBAN) and Certified Cryptocurrency Compliance Specialist & Investigator, Mr Ade Bajomo, the President, Fintech Association in Nigeria, Mr. Peter Shodipo, the President, Committee of Chief Compliance Officers of Capital Market Operators in Nigeria (CCCOCIN), Mr. Ayodele Othihiwa, President, Association of Reporting Accountants and Auditors in the Capital Market (ARAACAM) and Mr. Zacch Adedeji, PhD, Executive Chairman, Federal Inland Revenue Service (FIRS), Nigeria

    Various panels have been lined up to discuss issues like GIABA’s Efforts in Curbing ML/TF in the ECOWAS Region, Understanding the New FATF Standards for VASPs,  Understanding the Evolving Regulatory Environment for Digital Assets and Tax Implications,  and Nigeria’s Status and FATF ICRG Gray Listing Issues.

  • Reps seek review of BPP’s budget

    Reps seek review of BPP’s budget

    The House of Representatives has urged the Ministry of Budget and Economic Planning to review the budgetary allocation of the Bureau of Public Procurement in line with current realities in subsequent budget estimates to enable successful discharge of the Bureau’s core mandate.

    The House also urged the Bureau of Public Procurement to collaborate with relevant stakeholders, including Ministries, Departments and Agencies, Civil Society Organizations and the National Assembly to enhance the provision of a legal and institutional framework and professional capacity for public procurement in Nigeria for the holistic development of the country.

     It mandated the Committees on Public Procurement and Appropriations, to follow-up and ensure upward review of the Bureau’s budgetary allocation in subsequent budget estimates.

    It also mandated the Committee on Public Procurement to conduct a thorough oversight and recommend appropriate measures that will enhance the effectiveness and efficiency of the Bureau and report within four weeks for further legislative action.

    These resolutions follow the adoption of a motion titled, “Need to Review Budgetary Allocation of the Bureau of Public Procurement” sponsored by Hon. Unyime Idem during plenary on Wednesday.

    The House said it was aware that the budgetary allocation for the Bureau in the Appropriation Act, 2024 is N2.2 billion.

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    It was concerned that the existing funds provided for the Bureau is grossly inadequate to meet the extensive responsibilities of the procurement audits, monitoring and surveillance in the Ministries, Departments and Agencies (MDAs) in the six geopolitical zones of the nation.

    The House noted the need for the attainment of transparency, competitiveness, cost effectiveness, value-for-money and professionalism in the public sector procurement system.

    It also noted that the Public Procurement Act 2007 established the Bureau of Public Procurement as the regulatory authority responsible for the monitoring and oversight of public procurement, harmonising the existing government policies and practices by regulating, setting standards and developing the legal framework and professional capacity for public procurement in Nigeria.

     The House further noted that the Bureau is empowered to, among other things, oversight over 800 Ministries, Departments and Agencies (MDAs), to ensure the implementation of established procurement policies, and due process compliance.

    The House recognized the need to ensure monitoring and surveillance of Federal Government Procurement Procedures and ongoing projects across the six geopolitical zones.

    It was also concerned that given the prevailing trend of procurement corruption in Nigeria, constituting over 70 per cent of corruption in the public sector, there is an increasing need to ensure the implementation of procurement policies, and due process compliance, in line with global best practices.

    The House said it was cognizant that the increasing rate of procurement corruption in the public sector necessitate urgent measures for effective oversight to ensure value-for-money, transparency, competitiveness and professionalism.

  • How businesses are leveraging digital edge to drive growth

    How businesses are leveraging digital edge to drive growth

    With a number of online marketing platforms emerging key players in this digital revolution, business owners in Nigeria, particularly those in the real estate and automotive sectors, are leveraging them as powerful tools to streamline their operations, achieve significant growth, overcome challenges, and stay competitive in the digital world. Assistant Editor CHIKODI OKEREOCHA reports.

    For the Managing Director of Befitting Properties, a premium real estate firm in Lagos, Tope Samuel, it’s been nothing short of transformative. On the strength of the advent of online marketing platforms in Nigeria, real estate transactions, which, traditionally, have been heavily dependent on local networks and word-of-mouth referrals, are now able to tap into a much broader audience, including international buyers and investors.

    Accordingly, Samuel and other operators in that space are now leveraging the rise of platforms such as Jiji, Jumia, Cars45, and Konga to boost their visibility and reach potential clients both locally and internationally. Samuel revealed, for instance, that Befitting Properties has been able to close some of its biggest transactions to-date on e-commerce giant Jiji platform, including a premium property worth close to a billion naira in Banana Island, Lagos.

    “Jiji’s wide reach, user-friendly interface, and the ability to directly connect with serious clients made it our preferred platform, he told The Nation, noting that the success of Befitting Properties showcases the power of online marketplaces in helping sellers in real estate overcome traditional barriers. “Being active on Jiji has enhanced our reputation as a trusted and reliable real estate company,” he emphasised.

    According to him, a strong reputation on Jiji with over 1000 positive feedback from customers through the platform in five years has been key to its success. “Being active on Jiji has enhanced our reputation as a trusted and reliable real estate company. We can say on the average, over 90 per cent of our customers are satisfied and this has solidified our relationships with them, increased word of mouth awareness and referrals for our business,” Samuel affirmed.

    He added that the platform’s credibility, as well as the business’ consistent and professional interactions with clients has significantly boosted the company’s business. He explained that when operators in real estate business advertise their properties online, such businesses can showcase high-value listings to a diverse audience. This, in turn, increases the likelihood of finding the right buyer.

    De-Supreme Property, another real estate business, is also counting itself lucky for embracing online marketplaces for growth. The business, which faced the challenge of limited marketing budgets when it is starting out, gradually scaled its marketing efforts when it began exploring the affordable ad packages that Jiji offers.

    “When I started my business in 2020, I had nothing. Jiji helped me begin with small ads on their platform and over time, I was able to increase my investment as my business expanded,” De-Supreme Property CEO Abati Idowu Waheed told The Nation, noting that this flexible approach allowed the business to grow steadily, even during economic downturns.

    The ability to scale marketing efforts according to business needs is said to be one of the many ways online marketplaces support Small and Medium Enterprises (SMEs). Whether it’s a small business with a limited budget or a more established company looking to expand its reach, these platforms offer a range of options that cater to different needs and growth stages.

    Read Also: Businessmen, Canada-based nurse arrested at Lagos airport for cocaine, loud trafficking

    Automotive sector also

    The automotive sector has also seen substantial growth through online marketplaces. Auto dealers are leaning toward digital channels like Jiji, Car Mart and Cars45, which offer a unique opportunity to reach customers who’re actively searching for vehicles online for buying and selling.

    The shift toward digital channels has proven to be a game-changer, particularly in a market where consumer behaviour is largely influenced by online research and comparisons.

    For instance, the CEO of Autoproject, Raymond Iyoha, a dealer partner with Cars45, a technology-enabled automotive trading platform, shared one of his biggest challenges before partnering with the platform. He said: “Our biggest challenge was getting the right car to buy. Sometimes, we end up buying vehicles with security issues. But since partnering with Cars45, when it comes to verification, I’m rest assured.”

    Iyoha told The Nation that he has since been able to source verified cars and increase their inventory without having to travel both far and near, all facilitated through the online platform.

    Levi Bereiweriso, a business owner, who specialises in selling cars on Jiji, also narrated how he experienced firsthand the benefits of selling online: “Jiji has really helped me to stay connected, to stay competitive in the car-selling business. I’ve sold numerous cars to customers all over Nigeria and made profits.”

    Bereiweriso said that’s because over 95 per cent of people who reach out from the platform are genuine and interested buyers. He also said he has been able to reach a wider audience, engage with genuine buyers, and ultimately increased his sales by listing his vehicles online.

    Indeed, one of the key advantages of selling cars through online marketplaces is the ability to provide detailed information and visuals that help buyers make informed decisions. Unlike traditional methods, where potential buyers might have to visit multiple dealerships to compare vehicles, online marketplaces allow them to do so from the comfort of their homes.

    Also, dealers now source verified vehicles from the comfort of their offices hassle-free. These translate to cutting down on costs, reducing documentation issues and security concerns.

    The experiences of business owners like Samuel, Waheed, Iyoha, and Bereiweriso and highlight the potential of online marketplaces to transform traditional business models, and also help businesses both big and small succeed in this dynamic economic environment.

    Brighter future for selling online

    It took a recent forecast by Statista to bring to the fore the promising future of digital commerce in Nigeria. The global data and business intelligence firm projected that 13 per cent of all sales done in Nigeria by 2026 would be conducted online.

    This shows that the digital space in Nigeria is flourishing, with internet penetration currently at 55 per cent and poised to grow steadily. Also, with the increasing smartphone adoption estimated to reach 140 million by 2025, consumers are more connected than ever before.

    This connectivity has paved the way for digital marketing channels such as Jiji, Jumia, Cars45, and Konga to emerge as key players in this digital revolution, where they are transforming businesses by offering them a powerful tool to reach customers beyond their immediate geographic location.

    Regional Head of PR and Marketing, Jiji Africa, Majolie Obaje, expressed optimism that the role of these online marketplaces in reshaping industries and driving business growth will become more prominent as more businesses recognise the benefits of selling online.

    Obaje told The Nation that for Small and Medium Enterprises (SMEs), the opportunity to reach a global audience, leverage advanced marketing tools, and build credibility in a competitive market is invaluable.

    She, however, said the success of these efforts depends on how well businesses can adapt to the digital environment and make the most of the features these platforms offer. In other words, the key is for SMEs to stay informed, be adaptable, and continuously explore new ways to engage with customers online.

    This is so because as digital commerce continues to evolve, those who are willing to embrace it and leverage its full potential will be poised to succeed in the years to come.

    Obaje said for businesses that have yet to explore this avenue, the time to start is now. As she stated, “The digital future is here, and it offers unlimited opportunities for growth and success, especially now that businesses in Nigeria need to navigate market challenges.”

    One of the most significant challenges for online sellers is building trust with potential customers. Credibility becomes crucial in a digital space where buyers cannot physically inspect products or meet sellers in person.

    However, one online marketplace that addresses this key challenge is Jiji through its meet-inspect-pay model. They also provide features such as customer reviews, verified ID badges for sellers, and secure communication channels like WhatsApp and in-app chats.

  • Ramping up global rating for Nigerian carriers’ aircraft leasing

    Ramping up global rating for Nigerian carriers’ aircraft leasing

    Recent moves  by the Federal Government  to drive the enforcement of the appropriate international protocols, legal instruments and other interventions has triggered a paradigm shift in securing operating equipment for airlines, writes KELVIN OSA – OKUNBOR.

    Nigeria is gradually regaining its pride of place in the global air transport arena as aeronautical regulatory  authorities and other concerned organisations put finishing touches to efforts aimed at implementing the relevant  legal instruments and international protocols  governing the leasing of aircraft.

    The move is part of efforts by the Federal Government to change the negative perception of Nigeria in the international air transport as a country, whose operators are  notorious for either defaulting or non complying with the terms and conditions attached to aircraft leasing by players in the mobile  equipment procurement space.

    Reports indicate that major aircraft leasing companies years ago were considering a blacklisting of Nigerian operators, of the default rate by a few erring operators did not take a good turn.

    This development, had triggered a backlash for the country as major aircraft leasing companies labeled Nigeria a high risk country.

    Caught in the intricate web, Nigerian airlines have been navigating difficult tracks to secure aircraft for their operations, as the options of direct purchase of aircraft has become increasingly expensive.

    But, airlines in other countries continue to leverage the benefits of aircraft leasing as the confidence level assumes a spike following their fidelity to agreements.

    To pull Nigeria and her operators out of this dangerous woods, the Minister of Aviation and Aerospace Development , Mr Festus Keyamo upon assumption of duties embarked on an aggressive sensitization diplomatic tour to Europe and America to fouse the negative perception of Africa’s most populous country and its airlines.

    Keyamo began work by collaborating with the necessary organs of the government to change the wrong perception of the country , so that its struggling carriers could secure equipment to become viable, sustainable and efficient.

    With a series of meetings with major aircraft manufacturers : Airbus, Boeing , Bombardier and Embraer , Keyamo secured some commitment that a new era has beckoned.

    To drive this, the Federal Government recently took some steps to attain global compliance by adopting the

     Cape Town Convention (CTC) Practice Direction on the dry leasing of aircraft.

    Convinced over the new move, the Aviation Working Group (AWG), co-chaired by Boeing and Airbus, promptly elevated Nigeria’s compliance score from 49 to 70.5, marking a historic high for the nation.

    Speaking on the development, Keyamo said : “ This is the largest score Nigeria has attained to date, providing comfort to financiers and the global leasing industry,”

    He also noted that further improvements are expected in the coming weeks as he  directed the Nigerian Civil Aviation Authority (NCAA) to amend its administrative rules, known as IDERA, to fully align with the Convention, thereby enhancing confidence among financiers and lessors worldwide.

    The Aviation Working Group, headquartered in London and New York, lauded the efforts of the Aviation Minister and his team for their dedication over the past few months in making this achievement possible.

    In an email received by the Nigerian aviation authorities, the AWG expressed its readiness to increase Nigeria’s score further once the country adjusts its administrative rules and the courts begin to apply the Practice Direction.

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    The rapid adjustment in Nigeria’s global rating, experts say, is a positive step in the country’s aviation sector, indicating a commitment to international standards and practices that foster trust and investment in the industry.

    The latest step by Nigeria, experts say, makes  it one of the few countries in the world to pioneer the issuance of practice directions by the Federal High Court, which is vested with the constitutional jurisdiction on aviation matters.

    Before now, Nigeria had majorly failed to comply with the Cape Town Convention (CTC) – a convention that regulates the dry-leasing of aircrafts by major manufacturers such as Boeing and Airbus and major lessors across the world, who had perceived Nigeria as a non-compliant country.

    According to  Keyamo, the CTC compliance index shows Nigeria’s substantial non-compliance, which is largely as a result of legal impediments in the country’ judicial process. These impediments have adverse impact on the implementation of and compliance with terms of the convention.

    Keyamo stated that speedy reliefs sought by the creditors are not granted within the 10-day declaration made by Nigeria under the convention.

    The minister, with the support of President Bola Tinubu, Vice President Kashim Shettima, and Lateef Fagbemi, attorney-general of the federation, then reached out to key institutions and offices in the judicial sector, resulting in the signing of the practice directions.

    The new practice directions issued by the Chief Judge of the Federal High Court is expected to eliminate judicial impediments in the implementation and compliance with the Cape Town Convention.

    This move, according to Keyamo, is also expected to boost investor confidence and open the floodgates to Nigeria’s air operators to have easy access to aircraft acquisition at much lower rates.

    Stakeholders say the Cape Town Convention is expected to significantly enhance the growth of the aviation industry by creating more jobs and promoting the rapid economic development of the aviation industry. By doing so, the Nigeria aviation industry, which has a huge global market, can favourably compete.

    Amid these benefits, however, stakeholders have fingered grey areas that may erode the benefits of the convention if they are not addressed.

    Speaking on the development, Chief Executive Officer of West Link Airlines, Captain  Ibrahim Mshelia, said the purpose of the Cape Town Convention protocol is to address issues of opposable rights over aviation movable assets such as engines, aircraft spares and aircraft leases.

    “After we have domesticated and fully signed the agreement and there are disputes over the assets, the owners should be able to take their properties away without issues. It is then expected that people would freely lease airplanes to Nigeria without fear of their equipment being held over litigation.

    “The signed convention is expected to boost confidence of people in other territories to do business with Nigeria in terms of aviation assets,” he explained.

    Mshelia , however,  hinted that the convention would not do anything for airline operations in Nigeria because of the current volatile operating environment, insincerity of operators and the current naira to dollar exchange rates.

    “Leases and issues in Nigeria have nothing to do with the law. They just have to do with our nature as a people and our aviation system. We were under the high-risk nation category because some airlines went to court in the past and seized people’s airplanes.

    “Also, getting dollars to pay for these assets makes things difficult. If we don’t fix our exchange rate problems, we can sign 10 of these conventions but they won’t change anything,” the CEO of West Link Airlines said.

    Jonathan Ibrahim, a retired airline captain, said that the behaviour exhibited by some airlines in the past, where they failed to pay for leased aircraft and took lessors who tried to retrieve their equipment to court, may still pose problems for the current airlines.

    “Insurance premiums are very high in Nigeria because of the environment. After signing the Cape Town convention, the Western world may not immediately get involved.

    “If the major issues are not addressed, the Cape Town Convention would just be like an ordinary signed paper and nothing will happen,” he further said.

    The Cape Town Convention is currently in force with 87 contracting parties, while the Aircraft Protocol for equipment has 84 contracting parties.

    These countries have long enjoyed access to modern aircraft on a dry lease basis.

    The signed convention has also made domestic airlines in these countries more competitive.

    “Difficult operating environment, ease of doing business, corruption, security challenges, naira exchange rate, high interest rate and lesser confidence are major issues,” an aviation stakeholder, who didn’t want his name mentioned, said.

    Affirming that further steps are being taken to improve the confidence of the international air transport community about the development, Keyamo said : “ We  have gone around the world trying to restore confidence again in our aviation ecosystem and our leasing industry. I’m sure you have followed the last two weeks, I have not spoken too much about it, but very soon I will give clarifications on our modest efforts.

    “ We  identified early in this administration the need  to open up the aviation industry in Nigeria. We have seen that our score, our compliance score has gone up tremendously and is still rising because in the next few weeks we are also going to roll out a lot of developments concerning the protocols  that will substantially further  increase our scores and  compliance ratings. So all of that will combine to then empower our local operators to be able to service their  route and also compete favorably with some of these big airlines that we are inviting into the country.

    Also speaking, the  Managing Director Federal Airports Authority of Nigeria, FAAN, Mrs Olubunmi Kuku stressed the importance of better aircraft lease arrangements, which will lead to an increase in fleet size and a reduction in flight delays caused by lack of capacity.

    “We see an increase in the fleet size in our market to reciprocate BASA and have an impact on flight delays which were before now, due to lack of capacity. To achieve that, we need to finance all the necessary infrastructure “.

    Stakeholders say the Cape Town Convention is expected to significantly enhance the growth of the aviation industry by creating more jobs and promoting the rapid economic development of the aviation industry. By doing so, the Nigeria aviation industry, which has a huge global market, can favourably compete.

    Amid these benefits, however, stakeholders have fingered grey areas that may erode the benefits of the convention if they are not addressed.

    Last month , the Federal Government signed the Cape Town Convention Practice Directions, which, among other benefits, enables domestic airline operators to dry lease aircraft.

    The CTC Practice Direction was signed by the Chief Judge of the Federal High Court, Justice John Tsoho, during a stakeholders’ meeting of the Presidential Enabling Business Environment Council chaired by Vice President Kashim Shettima at the Presidential Villa, Abuja.

    The move , the government said : “ Is to reduce the cost of airline operations in the Nigerian aviation sector.

     “The Cape Town Convention becomes actively and fully operational in Nigeria, thereby reducing the cost of insurance for airlines, restoring investors’ confidence in the nation’s aviation sector, and enabling domestic airline operators to dry lease aircraft, among other things.

    ”Some local operators had, in the past, breached the Cape Town Convention, which regulates aircraft leasing across the world, leading to the Aviation Working Group, co-chaired by Airbus and Boeing, saying Nigeria would be blacklisted until it implements a law that would guide against future breaches.

    Speaking after the signing of the CTC Practice Direction, Shettima said President Bola Tinubu’s administration is a pro-business government ready “to take all the necessary measures—as painful as some might be—to protect, promote, protect and preserve the interest of the Nigerian nation “and preserve and promote the nation’s airlines industry.”

    He added, “It is a great day for the Nigerian nation. We had fruitful engagements and we were able to cross-pollinate ideas across all sectors and have come up with robust solutions to the challenges facing the Aviation industry.“I want to seize this opportunity to commend my Lord, Justice John Tsoho, the Chief Judge of the Federal High Court. Judges are, by nature, very conservative people. For him to frontally address the issue and sign the Cape Town Convention Practice Directions, I think, is worthy of commendation.”The VP also commended the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, saying “All the issues agitating the minds of the airline’s operators have been frontally addressed by the Minister and  they are meeting him to further consolidate all our gains.

    ”VP Shettima assured airline operators in the country that President Tinubu will do everything to promote and preserve the Nigerian airline industry.

    He said, “And, of course, my brother, Allen Onyema, the Chairman and Chief Executive Officer of Air Peace, and Dr Abdulmunaf Sarina, the Chairman of Azman Airlines, I want to assure you that the present administration headed by, President Bola Tinubu, is a pro-business government, is a pro-Nigeria government, and will take all necessary measures to protect, promote, protect and preserve the interest of the Nigerian nation.

     “ Be rest assured that President Bola Tinubu is keenly interested in the promotion and preservation of the Nigerian airline industry.“I spoke with him about three days ago, and he was very interested in the outcome of our deliberations and I will report back to him.”

    ”On his part, the Finance Minister, Mr Wale . Edun promised to meet with airline operators and other stakeholders to perfect issues pertaining to agreements reached at the meeting with the Vice President.

    He said, “My Lord, the CJ of the Federal High Court called it action to revolutionize the airline industry. PEBEC is all about improving the business environment and reducing cost and what has been signed here is action that will substantially reduce cost in the airline industry, facilitate growth and development of that industry, and include further action that, I’m sure, would be taken in that direction once I meet with the airline industry and also have Customs present to discuss some charges which they want to be lowered, and which they believe by law should have been implemented at lower levels.”

     Speaking on behalf of Airline Operators in Nigeria, the Chief Executive Officer of Air Peace Limited, Onyema, thanked President Tinubu for enhancing a positive change in the aviation sector.

    He added that since assuming office, the President has introduced policies that will help improve the lives of Nigerians.“Today is a historic day for Nigeria. President Bola Ahmed Tinubu has once again demonstrated that he is not only a listening President but has gone a long way to engender the ease of doing business in the aviation industry more than any other since the creation of this country called Nigeria.

    “We the Airline Operators are so happy and we commend him for what he has done today. Today is a revolution. President Bola Ahmed Tinubu has caused a positive revolution in the aviation industry by ensuring this practice direction concerning the Cape Town Convention and its application in Nigeria,” Onyema stated.

    Also, Special Adviser to the President on Presidential Enabling Business Environment Council and Investment, Dr. Jumoke Oduwole, noted that the signing of the document would help reduce the cost of insurance and doing business in the aviation sector.She said, “Nigerians have been seeing a high cost of flight tickets lately; there are several factors, including foreign exchange and others, but there are some regulatory and bureaucratic challenges. Because the President is committed to addressing challenges one by one, this is one of the fruits of what he has done.“I just want to thank the President for his attention to ease of doing business and making sure that Nigeria is a progressively easier place to start and grow a business.”

    Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who was represented by the ministry’s Director of Human Resources, Dr Anastasia Gbem, said the signing of the document on actualizing the Cape Town Convention was in line with the Ministry’s goal of enhancing the capacity of local airlines’ business.She reasoned that the signing of the document would reassure the international community that it is safe to invest in Nigeria.

    .“Investors can bring their aircraft into Nigeria and if there is any problem, such aircraft would be recovered within the 10-day period that Nigeria and the Cape Town Convention have provided. So it is an unprecedented history made today and it is a venture that will boost the Nigerian airlines and the entire aviation industry.”

    On his part, the Chief Executive Office of the National Insurance Commission of Nigeria, Mr Olusegun Omoseye, said the signing of the document was significant progress for Nigeria’s aviation sector and the economy in general.

  • Concerns as Sahel states dig deeper into military rule

    Concerns as Sahel states dig deeper into military rule

    Despite the laudable achievements it has recorded, the Economic Community of West African States (ECOWAS) continues to navigate the complexities of regional integration. The regional political and economic union of 15 countries of West Africa established on May 28, 1975, has brought peace to some of its members with states occasionally sending joint military forces to intervene in the group’s member states at times of political instability and unrest.

    The bloc has also received recognition for its trailblazing role in regional conflict intervention, the free movement of goods and people and financial self-reliance based on its community levy as well as funding from development partners such as the United Nations (UN), African Unions, United States, European Union (EU) and the Scandinavian countries.

    But, on the flip side, ECOWAS, considered one of the pillar regional blocs of the Continent-wide African Economic Community (AEC), with a goal to achieve “collective self-sufficiency” for its member states, has fallen short in addressing challenges to democracy and governance. This was after three of its member states–Burkina Faso, Mali and Niger announced their immediate withdrawal from the bloc this year. The decision by the trio, termed as the alliance of military coup plotters, on January 28, this year, has raised concerns among stakeholders.

    The current crisis began on July 26, 2023, when the Niger Republic military, in a coup led by General Abdourahamane Tiani, announced that they had overthrown President Mohamed Bazoum. After it failed to elicit a favourable response from the military leaders despite sending delegations, including interventions by elder statesmen and traditional rulers, the ECOWAS announced on August 10, 2023, its intention to deploy a regional force to “restore constitutional order”, while continuing to favour diplomatic negotiations.

    The Niger military leaders, however, proposed a transition period of “three years” maximum before returning power to civilians. The country’s military leaders were supported by the coup plotters in Burkina Faso and Mali. They announced a plan to defend Niger if attacked by ECOWAS. They alleged that ECOWAS leaders were doing the bidding of France and other Western countries.

    Read Also: Nigeria to host first  African Military Games in November 

    Recall that on August 18, 2020, Mali’s President Ibrahim Boubacar Keïta was overthrown by the military, and a transitional government was formed in October. But on May 24, 2021, the military arrested the president and the Prime Minister. Colonel Assimi Goïta was inaugurated in June as transitional president.

    The junta committed to return to civilian rule in the elections earlier scheduled for February 2024. But, the election didn’t hold.

    Likewise in Burkina Faso, on January 24, 2022, President Roch Marc Christian Kaboré was overthrown by the military, and Lieutenant-Colonel Paul-Henri Sandaogo Damiba was inaugurated as President in February.

    On September 30, Damiba was, in turn, dismissed from his position by the military, and Captain Ibrahim Traoré was inaugurated as Transitional President until a presidential election scheduled for July 2024, which did not hold.

    To consolidate their power grabs, the military leaders of the three countries signed a mutual defence pact in September last year. Called the Liptako-Gourma Charter, it established the Alliance of Sahel States. The pact is named after the region where the three country’s borders meet.

    In a statement, Col. Goita, Mali’s junta leader said: “I signed today with the heads of state of Burkina Faso and Niger the Liptako-Gourma Charter, establishing the Alliance of Sahel States to establish architecture of collective defence and assistance mutual for the benefit of our populations.” The new pact called for the three neighbouring countries to come to the defence of each other.

    Despite the agreement, all three are facing threats from jihadists, with their troops being killed by militants. They are also losing large territories to militants. This is after they had ordered the ECOWAS, French and American forces out of their territories. Their deals with Russia’s Wagner have not helped their security architectures.

    One other country under the military, Guinea, has remained less combative with ECOWAS.

    Consolidating new grouping with new biometric passports

    As part of their withdrawal from the bloc in favour of their alliance, the military leaders have announced new passports and removed the ECOWAS logo. Burkina Faso first announced earlier this month that it was rolling out new passports without the ECOWAS logo. A Chinese company is producing the passports for them.

    “In the coming days, a new biometric passport of the AES (Alliance of Sahel States) will be put into circulation with the aim of harmonising travel documents in our common area and facilitating the mobility of our citizens throughout the world,” Goita announced.

    Leaders raise concerns

    President of the ECOWAS Commission, Dr. Omar Touray, at the 92nd Ordinary Session of the ECOWAS Council of Ministers, said there were no signs that Burkina Faso, Mali, and Niger wish to return to the sub-regional bloc. Touray said the three countries have remained incommunicado despite the commission’s appeals.

    He said that Burkina Faso, Mali and Niger represent 60 per cent of the ECOWAS region in terms of landmass and contribute at least 10 per cent to its Gross Domestic Product (GDP). The commission chief added that their withdrawal could undermine collective security efforts and further destabilise the region, which should worry stakeholders, including civil society organisations (CSOs).

    In an interview with The Nation, Prof. Kayode Soremekun, a Nigerian academic, author, and the third Vice Chancellor of Federal University Oye Ekiti, Ekiti State, said the conduct of the coup plotters is “indeed the anarchic character of the international system that states have the right to aggregate as they deem fit”.

    The university don added: “But the suspicion is that such is being done by the Sahelian States in the context of hostility between them and the much larger ECOWAS body.

    “On the face of it, however, there is nothing wrong with this move. After all, there is a body like the Mano River Union (MRU) in the West African sub-region. Members of the MRU are also members of ECOWAS.

    “But in this particular instance of the Sahelian states, there is a parallel exclusionary dynamic, which speaks to a fracture within ECOWAS.

    “My main worry here is: Are the Sahelian states acting alone? Or are they responding to the promptings of an intrusive cum extra-regional power?

    “If the latter situation occurs, then the regime of President Bola Ahmed Tinubu should take note. Specifically, it should ensure that the Sahelian states are not prized away from ECOWAS permanently.”

    Similarly, the Network Coordinator of WADEMOS, Paul Kuffour, said the implications of the exit of the three countries would likely cause further instability and disintegrate the sub-region. Kuffour said that a sharp rise in insecurity and terrorism has been witnessed since the coups in each of the three countries.

    “The exit of G5 Sahel, the withdrawal of Operation Barkhane, Canada forces and U.S. military bases in Niger, and the termination of the UN mission in Mali (MINUSMA), and the EU missions in the Sahel have led to an increase in attacks by violent extremist groups.

    “The withdrawal from ECOWAS will affect security cooperation in terms of sharing intelligence and participation in regional counter-terrorism initiatives, such as the Accra Initiative and Multinational Joint Task Force,” he said.

    Kuffour said the withdrawal would also have socio-economic implications because it could result to the suspension of major programmes such as the Regional Food Security Reserve, and the Regional Support Programme for Pastoralism in the Sahel.

    Commenting on the issues, a former ECOWAS official and now a public affairs analyst, Paul Ejime, in an interview with The Nation, said the three countries’ withdrawal cannot become effective until the end of this year, that is December 12, 2024.

    Ejime explained: “But they say they’re leaving immediately; that is still questionable. But, I think let’s see if it will get to that level.

    “We have a president in Mauritania who gave notice in 1999 and left in 2000. The same Mauritania is making moves to return to the ECOWAS fold. The alliance countries are three landlocked countries and you will notice that they said that ECOWAS was not giving them support to fight terrorism and that ECOWAS is controlled by external forces, particularly France.

    “Also remember that these are three countries belonging to the eight members of UEMOA, which is the West African Economic and Monetary Union. The French acronym is UEMOA. It was set up by France, apparently to compete with ECOWAS. These three countries are still members of that union. They have a central bank governors’ organisation based in Dakar, Senegal. So, the question will be, if they are accusing ECOWAS of being guided by or teleguided by foreign powers, why have they not left UEMOA? Why are they still using the French-controlled currency, the CFA franc? The CFA francs are being used by former French colonies, about 14, and these countries are part of them. That is another question.

    “And the other issue is security. They gave the impression that when they pull out of ECOWAS, it will be easy for them to control terrorism. But you will notice that to the contrary, terrorism has escalated to the point that they are suffering from very deadly attacks from separatist and jihadist organisations. Mali, Burkina Faso and Niger are not spared. To the point that some Russian forces, Wagner, were killed during a July ambush in Mali. So, terrorist attacks continue. So, they have not made good the fact that by leaving ECOWAS, they’ll be able to control their own security. But, that is not to say that ECOWAS did not make a mistake in the way it handled the crisis, particularly after the Niger coup.

    “But ECOWAS has since lifted the sanctions and Nigeria has restored the power supply. So, what is now their grudge? Some are saying that they are pursuing their power grabs, and so they are opportunistic military adventurers. Will they be able to sustain what they’re going into?

    “There are reports of some coup attempts happening in particularly Burkina Faso and Mali. These will continue because France and America have been expelled and will not sit back and face the humiliation of being expelled. Also, will these people be able to command the support of the military and their citizens? Because if the economic situation starts biting, you can see resentment, and you can see protests, which will not be good for them.

    “The problem of having different passports will also be there for their citizens. They have millions of their citizens in other ECOWAS countries and ECOWAS countries have citizens in their own countries. What happens to the free movement? It means that they will not enjoy the free movement of goods and services right to settle in member states, which ECOWAS countries now enjoy. It’s going to create problems. What will be their relationship with ECOWAS and how will their citizens fare. It’s going to be chaotic; it’s a recipe for chaos and it’s a recipe for crisis of movement of people, goods and services and of trade. Trade will suffer and then the citizens of these countries will be denied some of the many benefits of ECOWAS membership. So, this bravado or this populist kind of posturing has its expiry date, because they will soon come to the realisation that they cannot continue as military personnel to govern. The military dictatorship has no space in the modern world.”

    Also, a senior research fellow with Nigerian Institute of International Affairs (NIIA), Dr. Tola Ilesanmi, noted that issuing new biometric passports was aimed at showing that these countries have become resolute on their decision to cut off from ECOWAS.

    “This is symbolic to a large extent for me. It’s to show that there is no going back for us. We know that the ECOWAS has also been resolute in diplomatically calling for them to come back into the community and that there’s going to be several challenges ahead, both for the community and for the Sahel states.

    “So, the question is: Will they be successful? If you ask me, I would say, however, temporarily. In the short term, they probably will be successful because a country can decide to change its passport if it doesn’t have any impact on the international community. For example, if a Niger citizen comes out with a new passport and wants to travel to South Africa, I don’t believe they’ll be stopped by immigration, because the passport represents the country.”

    Concluding, Dr. Ilesanmi noted that the citizens of the Sahel nations will soon begin to ask questions. According to her, the citizens will begin to say “No, we have had enough of these jihadist groups and coup plotters, and we want democracy ourselves”.

    To the experts, this is a matter of time.