The Nation Newspaper

Category: Issues

  • CBN’s LDR policy buoys lending to real sector

    CBN’s LDR policy buoys lending to real sector

    The Central Bank of Nigeria’s Loan to-Deposit-Ratio (LDR) initiative has through its 18 months of existence, largely accomplished its objective of driving the needed credit to the real and other critical sectors of the economy, reports Group Business Editor, SIMEON EBULU.

     

    Although the Loan-to-Deposit Ratio (LDR) is a common lexicon in banking, its discourse came to the fore about a year and a half ago when the leadership of the Central Bank of Nigeria (CBN) made it an issue to impress it on banks to redirect credit to the real sector.

    Manufacturers, agribusinesses, Small and Medium Enterprises (MSMEs) and businesses generally have been complaining that Nigerian banks, despite their being awash with huge depositors funds and huge lodgements by telcos and others from retail stores and supermarkets, including deposits from the hospitality, leisure and entertainment sectors, have been frugal and inconsiderate in advancing credit to businesses for growth.

    Its been argued, as Godwin Emefiele, CBN Governor admitted, and many others before him, that banks have virtually abandoned their core business of lending to finance production and manufacturing, to becoming mere traders and buying governments’ commercial instruments to the detriment of playing their larger role of business financiers, essentially to avoid being caught up in any perceived or potential future risks.  Left alone, the Deposit Money Banks (DMBs) would rather use the huge cheap funds at their disposal (for which they pay pittance, or next to nothing as interest to depositors) to just be trading back and forth on government securities with guaranteed near eternal returns, or profits.

    Emefiele aptly captured the essence of the introduction and enforcement of the LDR in the nation’s banking space, when he accused the banks of shying away from extending credit to the real sector in preference for investment in safe governments’ commercial papers. He blamed the inability of banks to lend to the private sector on the latter’s choice of investing in risk-free securities rather than lending to the real sector of the economy.

    His opinion is equally shared by the Organised Private Sector (OPS). Small businesses, traders, property developers, and others have been crying and pleading with the banks to open their vaults to advance them succour in cash to both run and grow their enterprises. If and when they are heard and attended to, the securities, collaterals and terms of engagement demanded by the banks, more often than not, act as a scare rather than an inducement to take any facility, or loan.

    The Director- General, Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, is on record as saying  that the greatest challenge business operators in the country have been facing over the years was access to credit, which he said had resulted to huge financing gaps.

    But it has always been argued and rightly so, that banks are the agents of growth to the real sector. If this is true in other climes, why should it be so different in Nigeria?

    Admittedly, the  business environment in the country has its peculiarities. Nonetheless, the same environment has been extremely kind to the industry, to the extent that the banking industry is among the sectors that churn out an enviable level of profit year in, year out.

     

    LDR delicate balance

    LDR is an indicator of a bank’s ability to cover loan losses and withdrawals by its customers. Investors monitor the LDR of banks to make sure there’s adequate liquidity to cover loans in the event of an economic downturn which could result in loan defaults.

    Also,  LDR helps to show how well a bank is attracting and retaining customers. If a bank’s deposits are increasing, it’s an indication that new money and new clients are coming on-board either way, the bank will likely have more money to lend, which should increase earnings.

    Although it’s counterintuitive, loans are an asset for a bank since banks earn interest income from lending. Deposits, on the other hand, are liabilities because banks must pay an interest rate on those deposits, albeit at a low rate.

    LDR can help investors determine if a bank is being managed properly. If the bank isn’t increasing its deposits or its deposits are shrinking, the bank will have less money to lend. In some cases, banks will borrow money to satisfy its loan demand in an attempt to boost interest income.

    However, if a bank is using debt to finance its lending operations instead of deposits, the bank will have debt servicing costs since it will need to pay interest on the debt. As a result, a bank that borrows money to lend to its customers will typically have lower profit margins and more debt. A bank would rather use deposits to lend since the interest rates paid to depositors are far lower than the rates it would be charged for borrowing money.

    LDR helps investors spot the banks that have enough deposits on hand to lend and won’t need to resort to increasing their debt.  LDR is a proper delicate balance for banks. If banks lend too much of their deposits, they might over-reach themselves, particularly during an economic downturn. However, if banks lend too little of their deposits, they might have opportunity cost since their deposits would be sitting on their balance sheets earning no revenue. Banks with low LDRs might have lower interest income resulting in lower earnings.

    On the balance, the state of an economy plays a key role on how banks tinkle with the LDR. In a relatively buoyant economy where rate of employment is high and income and savings are assured, a high LDR would be advised, but not so if the reverse is the case because the sources of income and savings would have been substantially eroded, or grossly minimised.

     

    CBN’s 65% LDR

    There were misconceptions initially when the CBN first rolled out the 60 per cent benchmark LDR for the banking sector in June last year, which it later raised to  65 per cent three months later. The thinking was that compelling the banks to lend that much level of depositors funds to the real sector and others could result in increased Non-Performing Loans (NPLs), given the existing and obvious challenges facing the real sector, compounded by inadequate and failing infrastructure, foreign exchange challenges and growing insecurity everywhere across the nation. Coupled with that, was the apathy and the mindset of many borrowers, who say the prevailing high interest rates do not offer, or present any incentives to loan takers even if the funds were to be readily made available.

    Added to that was the argument that the prevailing environmental setting was frustrating production and manufacturing and that only commercially oriented businesses, such as importation and trading,  seemed to be the toast and the way to go, and that banks were themselves directly playing in those fields, or have recruited collaborators and surrogates thereby subjecting others to stiff competition.

     

    Initial resistance

    The attitude, or rather disposition of the banks, at least a sizeable number of them to the policy, clearly proved their unpreparedness to comply with the policy. It took the regulator’s doggedness and unwavering position to rein the sector  to comply. At the first count, about 12 leaders, of the nation’s 25 banks were in non-compliance mode. For this affront, the CBN wheeled the big stick forcing them into compliance by imposing strict penalties.  The following banks, at the onset  couldn’t maintain the LDR and their accounts were deducted resulting in the corresponding raise of their CRRs as follows; Citibank (N100,743,055, 321); First Bank of Nigeria (N74,668,880,480); FBNQuest Merchant Bank (N2, 697,456,144); First City Monument Bank (FCMB) (N14, 371,064, 742); Guaranty Trust Bank (GTBank) (N25, 147, 933, 628); Jaiz Bank (N7, 525, 165,552); Keystone Bank (N4, 162, 938, 879); Rand Merchant Bank (N2, 823,177,399); Standard Chartered Bank (N30,027,137,984); SunTrust Bank (N1,703,205,427); United Bank for Africa (UBA) (N99,676,181,916) and Zenith Bank (N135,629,337,625).

    This singular penalty by the CBN, cleaned out N499.9 billion off the banks deposit with the regulator thereby making those funds idle with the implication that no profit could be derived, nor investments made with the cash. Although the banks’ compliance with the LDR margin have since caused the CBN to restore the funds to the banks, the CBN has warned that the exercise will be a continuous one.

    The LDR measure, a Bloomberg report indicated, was among a raft of regulations aimed at forcing banks to boost credit, mainly to farmers, small-and-medium-size businesses and consumers.

    The LDR is used to assess a bank’s liquidity by comparing a bank’s total loans to its total deposits for the same period. The LDR is expressed as a percentage. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen fund requirements. Conversely, if the ratio is too low, the bank may not be earning as much as it could be earning. According to a report, Nigerian banks are some of the most reluctant lenders in major emerging markets, with an average loan-to-deposit ratio below 60 per cent. That compares with 78 per cent across Africa, according to data compiled by Bloomberg, with 90 per cent in South Africa and about 76 per cent in Kenya. Compare this with developed markets such as the UK, which according to Statista.com, states that Shawbrook Bank’s loan to deposits ratio on the British market between 2012 and 2016 increased from 74 per cent in 2012 to 102.7 per cent as of 2016.

    Typically, the ideal loan-to-deposit ratio is 80 per cent to 90 per cent. A loan-to-deposit ratio of 100 per cent means a bank loaned one naira, or dollar (as the case may be) to customers for every naira, or dollar in deposits it received. It also means a bank will not have significant reserves available for expected or unexpected contingencies.

     

     Gains of LDR

    Banks’ credit to the private sector from June last year when the CBN rolled out the new loan-to-deposit ratio expanded by over N1 trillion owing mainly to the differentiated cash reserve requirement (DCRR) and the minimum LDR ratio specified by the apex bank during the year. A member of the Monetary Policy Committee (MPC) and  CBN  Deputy Governor, Corporate Services, Edward Adamu and Sausi Rafindadi, another MPC member, made this known  in their personal statements at the last MPC

    Adamu said between January and October last year, gross credit expanded by over N1.0 trillion, with much of the increase actually occurring between June and October last year.

    The sectors with the largest increases in credit during the period include agriculture, manufacturing, consumer credit and general commerce.

    While reviewing the economy in the last 11 months, Adamu identified two defining factors for the positive turnaround, saying credit to the real sector and the naira exchange rate, were pivotal in the turn around.

    He said: “On credit, the CBN has been able to turn around the situation through the LDR and the Global Standing Instruction (GSI) which aims to reduce credit risk. Given that interest rates have started to moderate and banking industry NPLs trending towards the regulatory 5.0 per cent level, money market activities could only be expected to buoy in months ahead.”

    Rafindadi on his part, noted that current data revealed that the growth in credit to the private sector increased from 12.49 per cent in September to 13.08 per cent in October last yaer.

    “An additional credit flows of N2.17 trillion was added between November 2019 and end of December 2019 to meet the 65 per cent target for LDR. In addition, data showed that the decline in NPL continued from the 9.4 per cent achieved in July and August 2019 to 6.56 per cent in October 2019 compared with 14.05 per cent in October 2018. The significant decline is largely attributed to recoveries, write-offs and disposals. This welcome development would further encourage bank lending,” Rafindadi said.

     

  • Leveraging vibrant rural start-ups for development

    Leveraging vibrant rural start-ups for development

    Nigeria’s urban population is growing. It is also putting significant pressure on the physical and social infrastructure. To address this challenge and halt rural-urban migration, stakeholders are pushing for the creation of a supportive rural entrepreneurial environment that will force the emergence of a strong start-up ecosystem in rural areas. DANIEL ESSIET reports.

    For economic development experts, the time has come to recognise the enormous potential in Nigeria’s rural communities. With the number of extremely poor people said to be on a steady rise, but concentrated largely in rural areas, the thinking of most experts is that leveraging entrepreneurial opportunities in the communities will help turn the tide for rural and urban dwellers.

    According to them, what is needed to make this happen is for government at all levels to create a supportive entrepreneurial environment in rural areas to encourage the emergence of a vibrant start-up ecosystem to drive development. They noted, for instance, that a thriving start-up ecosystem in rural areas would halt rural-urban migration.

    Indeed, the mass movement of people from rural areas to city centres, almost on a daily basis, is believed to be one of the factors responsible for putting significant pressure on the physical and social infrastructure particularly in urban areas. By extension, it is also said to be partly responsible for the rising crime rate in the country as the search for greener pastures drives youths to crime.

    This must be why the Projects Lead, Impact Investors Foundation (IIF), Ms. Maria Glover, said a major overhaul of investment in rural Nigeria was long overdue. She noted, for instance, that private sector capital could play a vital role in rebuilding rural economies, and start-ups and small businesses were better placed to take advantage of such private sector capital to drive development.

    IIF engages and collaborates with key stakeholders active in the impact investing space, to unlock capital for social investments in Nigeria. Its goal is to promote the growth and excellence of impact investing.

    The foundation is committed to eliminating barriers to social impact investing by building an effective and supportive ecosystem that supports the growth of investment pipelines and for building sustainable impact.

    Glover pointed out that rural people live in extreme poverty, with many of them fleeing to cities where they swell the rank of the unemployed or the informal workforce.

    She, therefore, said the time had come to acknowledge the fact that rural communities have much potential, and that investments in physical and social infrastructure such as roads, energy, education and health facilities could empower them.

    In addition to capital and infrastructure, Glover said residents needed access to skills training, mentorship and resources required to create a locally-led and sustainable entrepreneurial environment, adding that effort to boost entrepreneurship was about improving the quality of life and access to quality places for an entire community.

    Reiterating that IIF’s goal is to see impact and capital work hand-in-hand to foster successful businesses which create positive change across the rural areas, Glover said she believes that strong start-up ecosystem can emerge in the rural areas where the environment is enabling to allow founders, for instance, to turn ideas into businesses.

    She stated that her Foundation was supporting rural development  by  promoting  initiatives and measures  that  will encourage companies and  investors,  invest  in start-ups  that  work in both urban and rural areas.

    Ms. Glover told The Nation in an interview that she has been working with development partners to help organisations better their impact strategies, while helping start-ups search for the right impact investors.

    According to her, bolstering local financial infrastructure for start-ups in the rural areas would help improve the entrepreneurship ecosystem and support the advancement of industry, innovation, and infrastructure.

    She has also been supporting the establishment and capacity building of youth platforms in the rural areas to promote social enterprises and employment generation, while also making a good case for investors looking to pair long-term returns and social impact.

    According to her, the networks of social entrepreneurs are growing, supported by the increasing number of young entrepreneurs looking for professions that go beyond simple moneymaking.

    Whether in investing in Financial Technology (fintech), innovative entrepreneurs, Glover said   the goal of IIF was to educate companies, entrepreneurs and organisations to use their funds to create a better, more sustainable Nigeria.

    The ultimate aim, according to her, is to help organisations that are considering supporting mission-driven founders to transform challenges into business opportunities, adding that the foundation has been able to bring private capital to a market where financial returns are linked to positive social and environmental impacts.

    For the President, Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche, rural areas have inherent advantages in creating jobs and driving economic development because they offer lower costs or access to relevant raw materials. He said rural based businesses play an important role in the economy and that AMEN has worked with communities to inspire the growth of micro and small enterprises as a primary driver of income and growth.

    Iche said the Association runs programmes that are meant to strengthen livelihoods and economic opportunities through small businesses, noting that rural start-ups help promote development and enable talent, technology and capital to flow to rural areas.

    Start-up South Covener, Uche Anchie, said when the rural areas are supported to drive massive entrepreneurship, more start-ups will be created that will provide employment.

    Acknowledging that rural entrepreneurs have been creating projects with the aim of compensating for insufficient government investments, Anchie said rural Nigeria can also be a place for entrepreneurial pioneers to test out ideas if the government provides the enabling environment.

    While start-ups have become synonymous with urban areas that offer improved access to talent, resources and infrastructure, Anchie said rural areas can be rebuilt to support start-ups by increasing investments in the rural areas. He also said rural areas need the funding to catalyze the creation and growth of digital, innovative start-ups and SMEs, and boost economic and employment opportunities for youths.

    Anchie words: “SMEs have a major role to play. We need to find a way to encourage ambitious founders who though living in the rural communities, look beyond their immediate environment as market. There are lots of advantages being in the rural communities.

    “We need people that will be ambitious enough to take those advantages and translate them into gains in the urban and sub-urban areas while providing massive employment for rural dwellers. Innovation is missing in our rural communities. Rural capacity development is something the innovation community should begin to look into if we are to realise our potential as a nation.”

    His Start-up South  empowerment organisation supports a new generation of entrepreneurs. It’s been campaigning for innovative entrepreneurs that can develop a stronger entrepreneurship ecosystem in which ideas and businesses can thrive and grow.

    Anchie said the organisation partners investors who are ready to finance equity and quasi-equity investments in innovative start-ups and SMEs, as well as support for concept development, investment readiness and technology adoption.

    Within the Southern region, the organisation  helps entrepreneurship ecosystem players, such as incubators and accelerators, to enhance and expand the outreach of their programmes.

    Anchie expressed joy that Nigeria was making strides towards a new digital economy, where the youth find the space for their energy and creativity to drive growth and create jobs.

    For the founder/Chief Executive, Start Innovation Hub, Hanson Johnson, rural entrepreneurship cannot be over-emphasised. He, therefore, wants the government to foster a pool of young, local entrepreneurs to drive diversification and create positive multiplier effects on the wider economy.

    Johnson founded Start Innovation Hub, based in Uyo, the Capital of Akwa Ibom State, to offer tech entrepreneurs skills training to help them expand their businesses. The Hub has been providing access to networks of contacts and resources to help tech entrepreneurs realise their dream as they strive to build a financially secure future for their families.

    Johnson, however, said despite the wave of digitalisation changing the job market and creating new opportunities in urban areas, there should be efforts to ensure that those in the rural areas are not left behind.

    This, according to him, is because new jobs commanding higher wages and faster wage growth require more digital skills, and not everyone or every place can retool fast enough.  For him, the digital economy holds unprecedented potential to improve the lives of those in the rural communities. With continued public and private collaboration to support small businesses, he said rural areas can be driven towards a future where all growth is inclusive.

  • National carrier’s non-stop flight into controversy

    National carrier’s non-stop flight into controversy

    Despite the groundswell of opposition against floating a new national airline, Nigeria Air, the Federal Government, last week, said there was no going back on its plans to float a national carrier. Minister of Aviation, Captain Hadi Sirika, even set a 2021 delivery timeline for the project. This has prompted renewed calls by aviation experts and stakeholders for government to rethink the project considering the prevailing lean financial resources, difficulty in securing investors, and downtime in global aviation, among others. Aviation Correspondent KELVIN OSA-OKUNBOR reports.

    His resolve to see the emergence of a more vibrant and competitive aviation sector, capable of holding its own in the global aviation industry, has never been in doubt. However, if one of his approaches to achieving this is by floating a new national carrier, then it is doubtful if the Minister of Aviation, Captain Hadi Sirika, will ever enjoy the support of stakeholders and experts in the industry.

    This is because each time the matter comes up, following the liquidation of Nigeria Airways, 16 years ago, it’s always a subject of intense controversy, perhaps, outright condemnation by those who feel that floating a new national carrier will not be in the interest of the industry and the country generally. And Sirika, who, in recent times, has been at the forefront of the push to float a new national carrier, has been in the eye of the storm.

    The Minister literarily put himself up again for scathing criticisms by concerned aviation experts and stakeholders when, last week, he said there was no going back on the Federal Government’s plans to float a national carrier. That was when he appeared before the National Assembly to defend his ministry’s budget. He said government planned to spend over N78.9 billion on the proposed national airline and other critical aviation projects in the 2021 budget.

    But, as usual, the plan has not gone down well with those who are opposed to the idea of floating a new national carrier. In fact, it has forced renewed calls on the government to apply caution and, possibly, rethink its plans to float a national carrier.

    From industry groups such as Aviation Safety Roundtable Initiative (ASRTI), Airline Operators of Nigeria (AON) and labour unions and other interest groups, the clamour is that government pulls the breaks on the issue.

    Their argument is that global models for setting up and running airlines have moved from public ownership to privately-run enterprises so, Nigeria should not be an exemption. As far as they are concerned, government’s decision to float a national carrier is coming at a time many countries are jettisoning public ownership of airlines.

    According to them, strong carriers across the globe, including Delta Airlines, United Airlines, British Airways, Virgin Atlantic, Lufthansa, Air France /KLM, are private sector owned and run entities compared to gulf carriers — Emirates, Qatar Airways and Etihad Airways— which are owned by the government.

    To further drive home their point, they said in Africa, a few of the government-owned and run carriers – South African Airways, Kenyan Airways, Egypt Air, Ethiopian Airlines, Royal Air Maroc and RwandAir- were struggling.

    Perhaps, more worrisome to them is the N78.9 billion government said it planned to splash on the proposed national carrier project, among other critical projects in the 2021 budget.

    Government, in its 2021 Appropriation Bill to the National Assembly,  also plans  to spend N14 billion on the construction of the second runway for the Nnamdi Azikiwe International Airport (NAIA), Abuja  and 10 new airports across the country to boost civil aviation.

    It also plans to build seven new airports in Anambra, Benue, Ekiti, Nasarawa, Ebonyi and  Gombe states, in addition to taking over airports in Kebbi, Osubi, in Delta State and Dutse Airport in Jigawa State.

    The huge capital outlay involved in these projects, analysts say, does not make economic sense at a time the government is experiencing lean resources coupled with downtime in global aviation.

    In the 2020 budget, the Ministry of Aviation proposed to spend over N4.6 billion as working capital on the national carrier project, which has been in limbo since October 2018.

    The development, which has triggered confusion in the sector, was again ignited by an  appropriation bill sent to the National Assembly by President Muhammadu Buhari recently, where the ministry proposed to pay N250 million  as “consultancy fee” for the establishment of the national carrier.

    Investigations by The Nation reveal that  government had proposed to spend N6.7 billion on the aborted national carrier project in the last two years, with N5.6 billion  set aside as  “ongoing” sum for the project and another N554 million as “consultancy”.

    Although the Federal Government unveiled the controversial national carrier at the Farborough Air Show in the United King­dom on July 18, 2018, the project was suspended by  following a series of unanswered questions bordering on equity structure, alleged lack of transparency, aircraft acquisition deal, and  incomplete incorporation of the airline company, among others.

    Before the temporary suspension of the project in October 2018, the government had scheduled the airline to begin operations on December 24, 2018, with a target of 81 routes covering local, regional and international operations.

    The government also planned to lease 15 aircraft, though the airplane types were not disclosed as its promoters consolidated plans to acquire additional aircraft under its fleet ownership to 30 airplanes within three to four years.

    Sirika, who pilots the project, said government was expected to spend $55 million on it in 2018, $100 million in 2019, while $145 million was expected to be expended on the project in 2020. According to him, government had planned to spend over $300 million on the airline project in three years.

    While industry experts and players raised concerns about the equity structure of the project, Sirika said government would not own more than five per cent of the airline, which he put at $55 million. He said government would not interfere with the recruitment and appointment of technical persons and management of the new airline as agreed with the Infrastructure Concession Regulatory Commission (ICRC) guidelines.

    According to the ministry, “This funding can be in the form of equity or debt. In order to ensure take-off of the airline in 2018, the government will provide $55 million upfront grant or via­bility gap funding to finance start-up capital and pay commitment fees for aircraft to be leased for initial operations and deposit for new aircraft, whose delivery will begin in 2021.

    “The company’s shares will be sold through an Initial Public Offering (IPO) after which the government will own five percent equity. Government’s equity share held in trust for Nigerians will be devolved to Nigerians via an IPO.

    “The government will retain only five percent equity, the list of shareholders then will be available to the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange.”

    But, Sirika’s explanations may have failed to sway those vehemently opposed to the proposed new national carrier, with many of them calling on government to jettison the idea, and, as a matter of urgency, embrace fashionable models obtainable in other countries.

    Some experts, who spoke with The Nation, said government, as aviation sector regulator, had no business in setting up an airline. Rather, it should encourage private sector investors by creating a more conducive environment for them to do their business.

    For instance, the immediate past Chairman of Airline Operators of Nigeria (AON), Captain Nogie Meggison, said the government had no business setting up a national carrier. What government should do, he said, is to empower existing private sector airlines as flag carriers who will represent Nigeria in the international arena.

    According to the former leader of the umbrella body of indigenous carriers, the government should empower existing domestic carriers by reducing multiple aeronautical and airport charges to enable them actualise the bilateral air services agreement it signed with many countries.

    Listing Air Peace, Overland Airways, AZMAN  Air, Aero Airlines, Arik Air, Dana Air, Medview Airlines as carriers designated on international routes, Meggison said such carriers should be encouraged to reciprocate Nigeria’s bilateral air services agreements on such international routes rather than push for a national airline.

    Meggison said government needed to step up its support for carriers including Air Peace, which operates on the Lagos/Sharjah/Dubai route and its plans to open up the Lagos- Johannesburg route, as well as the Lagos-London, China, and U.S routes, to strengthen their operational capacity rather than struggling to set up a national carrier.

    Without mincing words, Meggison said: “At this time when the country is experiencing limited national resources, floating a national carrier is not ideal. National carrier is an obsolete idea. Business and pride don’t go together.

    “All over Europe, South America, and the United States today, 90 per cent of their carriers, including Lufthansa, British Airways, are flag carriers which are completely private entities.

    “Nigeria does not need a national carrier. Like what operates in advanced countries of the world, what Nigeria needs are strong private airlines that are allowed to operate in a friendly operational environment with a level playing field and policies that ensure their survival.”

    Similarly, the Executive Director, Aviation Development Initiative, Babs Yusuf, urged the government to rethink the idea of floating a national carrier. According to him, it’s no longer fashionable.

    “What is the sense in implementing a national carrier at a time of lean resources and downtime in global aviation? What is the lure for Nigeria, given our antecedents with such business ventures? Yusuf asked, pointing out that “national carriers are no longer fashionable. Besides, credible investors are scarce.”

    Continuing, Yusuf asked: “Is this (national carrier) not another white elephant project? What is wrong in government retaining its regulatory role, improving the toxic business environment and supporting private business to grow and fill the vacuum?”

    On his part, the former Director of Human Resources at the defunct Virgin Nigeria, Victor Banjo, said the project fell short of requisite structure for success.

    Similarly, the President, Sabre Travel Solutions, Gbenga Olowo, said government should empower existing flag carriers rather than dissipating energy and resources in setting up a national carrier.

    Olowo said existing flag carriers should be supported through policies that enable them to forge alliances as global players. “This is easily achievable through economic policy of cooperation, collaborations, mergers and acquisitions,” he said.

    On his part, the Chief Executive Officer, African Aviation Services Limited, Nick Fadugba, said although the idea of a national carrier was welcome, but for it to succeed it needs a sound business plan, strategic industry partners, and adequate funding.

    Other success factors, according to him, include experienced management team, well-trained staff, a fleet of modern aircraft, comprehensive route network, on-time performance, good customer service and non involvement by government.

    The Chairman, House of Representatives Committee on Aviation, Nnolim Nnaji, said Nigeria needed strong flag carriers to enable it play on the continental sphere.

    Nnaji expressed worries that the country had remained passive in the continental aviation market in recent years despite its huge daily passenger traffic.

    However, he said floating a fully government-owned airline may not be an alternative According to him, the committee will work closely with the Federal Government to ensure that competent local airlines are supported to assume the status of flag carriers and operate internationally.

    But, the Chief Executive Officer of Kitari Consult Limited, an aviation consulting firm, Mr Ali Magashi, holds a contrary view.  He said he was in support of the establishment of a national carrier. According to him, a national carrier could be used to promote the country’s brand to the world.

    He said a national airline was like an embassy with wings, transporting its country’s talents, skills, commerce, culture, cuisine, human resource and goodwill around the world. “Conventional wisdom suggests that developing countries with small economies and high growth potential invest in national airlines.

    “Dubai and Singapore have successfully made their airlines their main brands, driving their national identity and growth strategy, and so have Ethiopian Airlines and EgyptAir done here in Africa,” Magashi said.

    The aviation expert added that among other benefits, a national carrier run efficiently would reduce the country’s transport infrastructure deficit, help in the development of the economy and provide multiple jobs, as well as help in developing aviation leasing companies, maintenance hangars, flight simulators and related training facilities.

    He also said it would stimulate the development of more travel agencies and the hospitality industry, and bring about economic empowerment to many people through forward linkages in aircraft leasing and finance, and backward linkages of hospitality and air travel support.

    “The aviation industry supports about 62.7 million jobs around the world. As such, a national carrier airline will help in boosting economic activities and stimulation,” Magashi said.

  • Data storage: Halting the $10b capital flight

    Data storage: Halting the $10b capital flight

    Nigeria lacks data security. Local service providers are unable to effectively store or protect data because current legacy storage infrastructure do not have the capabilities to offer the latest data protection mechanism. This forces many businesses and organisations to store their sensitive data in public cloud outside Nigeria, with banks said to be spending a conservative $10 billion on offshore data storage yearly. But, a private sector-led push to halt the huge capital fight and boost local content is on course. Assistant Editor CHIKODI OKEREOCHA reports.

     

    It promises to be a game-changing partnership. Already, operators and stakeholders in various sectors of the economy are optimistic that the partnership between Zadara, a United States (US)-based Original Equipment Manufacturer (OEM) and Unitellas International Limited will halt the $10 billion capital expenditure (CapEx) by banks in Nigeria to store sensitive data in public cloud outside Nigeria.

    The Technical Consultant to Unitellas International Limited, the distributor of Zadara data solution in Nigeria, Mr Vijay Gurav, recently raised the alarm that banks in Nigeria were spending a conservative $10 billion yearly to store their sensitive data in public cloud outside Nigeria, through the services of Amazon Web Services (AWS), Azure and Google Cloud.

    Apart from raising hopes of pushing back the huge capital flight, the partnership is also expected to help boost the law on local content. This is so because with businesses and organisations being compelled to move their data to the public cloud off shore, many of them default on the guidelines on Local Content Law, which essentially requires that organisations operating within Nigeria should have their data stored in-country.

    The Managing Director/Chief Executive Officer, Unitellas International Limited, Mr Smith Osemeke, put this in perspective when he said local service providers cannot compete with international cloud service providers such as AWS, Azure and Google Cloud in terms of infrastructure, pricing, service delivery and management.

    “This has caused a lot of companies in Nigeria to patronize international public cloud service providers by storing data from Nigeria in other countries thereby making it practically impossible to comply with the Local Content Law,” he stated.

    Osemeke, who spoke at a recent press conference in Lagos, to unveil the game-changing data storage solutions promised by the partnership, also said as a result of shore data storage, Financial Service Institutions (FSIs) and other key organisations invest millions of dollars annually in acquiring and managing IT infrastructure instead of focusing on their core businesses.

    This, he said, was because they must have an IT department to build and manage their data storage infrastructure – a service that is supposed to be handled by local service providers. “If this sad narrative is not corrected, sensitive data from Nigeria will continue to be stored outside Nigeria thus, inevitably, leading to data insecurity,” Osemeke pointed out.

    The Nation learnt that data insecurity, which so worries the Unitellas boss and, indeed, other stakeholders came about because Nigeria is one of the countries that lack data security. Service providers are unable to effectively store and protect data locally because they are over-burdened and challenged by outdated IT systems.

    According to IT experts, the existing storage infrastructure in Nigeria do not have the capabilities to offer the latest data protection mechanism. It is against this backdrop that Unitellas is partnering Zadara to empower service providers in Nigeria to meet international Managed Service Providers (MSP) standards with regards to data storage infrastructure, service, pricing and security.

    The Unitellas-Zadara deal will provide local service providers with infrastructure-as-a-service and enterprise-storage-as-a-service model, which eliminate huge (CapEx) with minimum Operational Expenditure (OpEx).

    By subscribing to Zadara data storage services with compute capability, Osemeke said local service providers and MSPs can now offer data storage and compute services with the latest data protection mechanism thereby competing effectively with renowned public cloud providers in infrastructure, security, pricing, management and service.

    Perhaps, more importantly, storing data in public cloud outside Nigeria, according to Osemeke, creates the problem of data protection since data stored there is exposed to cyber and ransomware attacks. He said incidents of cyber and ransomware attacks in Nigeria are high because the existing public cloud service providers do not provide absolute data protection.

    Noting that sensitive citizens’ data such as Biometric Verification Number (BVN), National Identity Numbers and other private and confidential details needed to be protected from such attacks and exposures, the Unitellas boss said with Zadara’s immutability storage, local service providers and organisations can fight ransomware and other malwares.

    Ransomware is a form of malware that encrypts a victim’s files. The attacker then demands a ransom from the victim to restore access to the data upon payment. For instance, the University of Utah recently revealed that it paid a ransomware gang $457,059 in order to avoid having hackers leak student information online.

    The incident was the latest in a long string of ransomware attacks where criminal groups steal sensitive files from hacked companies before encrypting their files; and in case victims refuse to pay, they threaten to release the stolen documents as a second extortion scheme.

    However, with immutable back-up or storage, which Unitellas and Zadara are dangling, it implies that data stored is fixed, unchangeable and cannot be deleted for a period of time or in some cases, sometimes, forever. “Having immutable storage is important for industries so that data is stored and safe from unforeseen accidents or circumstances,” Osemeke said

    What this means by extension, is that organisations and agencies in Nigeria that have collected citizens’ personal data through processes such as the SIM card registration, national identity card registration, new vehicle license regime, BVN, voter’s card, Tax Identification Number (TIN) etc. may have to enable immutability storage to stay safe.

    Others that may need to opt for the service include the Nigerian Communications Commission (NCC), National Identity Management Commission (NIMC), Central Bank of Nigeria (CBN), Federal Road Safety Corps (FRSC), and Independent National Electoral Commission (INEC), among others.

    Although Osemeke said the company was already in discussion with some of the agencies and organisations with a view to embracing the service, one factor that may make its entry into the Nigerian market a walk in the park is that on-boarding to its services is cost effective.

    For instance, subscription to Zadara data storage services is about four times lower than the public cloud pricing. On subscription to a minimum of 50 Terabyte (TB) scalable to the required needs of the organisation, Unitellas will deliver the storage device (hardware) to the agency or organisation’s data centre.

    Gurav explained that the project implementation involving the delivery and installation of the hardware will take approximately four weeks and key IT personnel of the organisation will also be trained on how to use the provided services.

    He also expressed the company’s readiness to migrate all existing data of organisations that are willing to subscribe to Zadara platform without a fee. The hardware will be installed in the agency or organisation’s data centre to enable them protect their data. However, the installation is at no infrastructural cost.

    Payment for services is based on actual usage. In other words, it is ‘pay per use’ or ‘pay as you go’, with 24 hours technical support as well as end-of-life hardware replacement at no cost. The company is also offering scalability, which allows subscribers to shrink or grow to their data storage needs.

    Zadara’s flexible, cost-effective payment model remains, perhaps, one of its unique selling points as it makes its inroad into the Nigerian market. The International Data Corporation (IDC) acknowledged this much when it rated Zadara’s enterprise data storage model of “Pay Only for What You Use,” as unique among competitors in the markets.

    IDC is a global provider of market intelligence for IT, telecommunications and consumer technology markets. Most IT professionals, business executives, and the investing community use IDC analysis to make fact-based technology decisions in order to achieve their business objectives.

    IDC, in its May 2020 markets analysis of modern enterprise data storage services and solutions, said that it found Zadara’s model unique among other companies offering data storage solutions.

    In the report entitled: “Five factors driving enterprise data storage as a service adoption in 2020′, an analyst at IDC, Andrew Smith, said Zadara’s model is unique, in terms of the company’s comprehensive support, worldwide coverage, and serving the services providers.

    “Zadara’s model is unique in its focus on providing the most complete, fully managed storage services possible. Zadara goes to market with a model that is focused on providing full-service storage solutions all the way to the application layer.

    “To do so, it delivers the following key capabilities, which IDC believes differentiate Zadara from its competitors,” Smith said, in the report, which was accessed by The Nation. He listed the services to include comprehensive support, worldwide coverage, and serving the service providers.

    Encouraging analysis no doubt, but it remains to be seen how Zadara will leverage these unique attributes to play big in Nigeria’s highly competitive IT market. This is more so considering the fact that Unitellas, its partner, is a relatively new player in the market, having been incorporated as a private limited liability company in 2013.

    However, going by Osemeke’s assurances, the company appears poised to take the IT market by storm, drawing strength from its partnership with the US-based OEM, which is located is located in the public cloud same as AWS, Azure and Google Cloud.

    Zadara also has 30 data centre locations of its own, supporting over 500 service providers around the world. Two of its data centres are in Nigeria, where it is now empowering local service providers to offer data immutability.

     

  • #EndSars: ‘We must stand together for a better Nigeria’ – Chigan Madu

    #EndSars: ‘We must stand together for a better Nigeria’ – Chigan Madu

    Our Reporter

    Multi-talented video director and cinematographer, Charles Maduemezia, popularly known as Chigan Madu has joined his voice to that of many other Nigerians calling for a better country, safe for the youths.

    Chigan Madu who continues to make waves with his creativity and entertainment prowess says he is all about unity to create a new Nigeria.

    “We are all fighting well for a better NIGERIA. I have this in mind; time is the healer of all wounds. We must stand together to reform our country. I believe in unity. United we stand, united we win. SARS should be banned and all forms of police brutality too. Our voice would be heard,” he said.

    That notwithstanding, Chigan Madu continues to find ways to thrive in Nigerian business environment, although it has been tough and replete with challenges, .

    “My love for music and the entertainment industry in general motivated me to forge a career path in that field despite the challenges. So far, I am inspired by the works of Nollywood’s cerebral directors Tunde Kelani, Tchidi Chikere and Kunle Afolayan. Hence, my being where I am today is not accidental; it is deliberate. I have been in the entertainment business since 2012,” he avowed.

    Chigan always maintained that he is delighted seeing his dream of owning a showbiz enterprise fulfilled. He stated that he is now focused on building his brand and taking it to great heights.

    The alumnus of the University of Ibadan gave a piece of advice for budding entrepreneurs. He said, “Young people who are still struggling to find their feet need to know that winners don’t quit; no matter how difficult their situation, they should be focused and determined to break their jinx and overcome the obstacles in their way.”

     

  • CBN, multiagency push on advancing Financial Inclusion for Women

    CBN, multiagency push on advancing Financial Inclusion for Women

    Women all over the world have suffered  certain deprivations solely on gender consideration, ranging from lack of access to education, loans for business and even voting rights. But all of that is changing now with the drive by various interest groups, including the Central Bank of Nigeria, United Nations and women bodies to turn the tide, with respect to financial intermediation for women, reports Group Business Editor, SIMEON EBULU.

     

    Central banks and development Finance institutions everywhere, are gradually coming to terms with women’s inherent potential as bridge builders and astute business practitioners. This has resulted in the formulation and packaging of specialised business support schemes  to help sustain and grow businesses promoted by the womenfolk.

    Until lately, women, especially in Africa and the third world generally, were never reckoned with, nor acknowledged as  players in the formal economic and business space. They were not acclaimed as significant contributors to growing their countries’ GDP. This narrative is reflected also in the limited exposure of women to formal education which in itself has been a drawback and a hindrance in assignment of roles to women, especially in corporate bodies. In no other setting has women issues taken the center stage, more than in financial inclusion and gender equality.

    The groundswell of opinion and advocacy on the need for women to be given their pride of place is resonating everywhere. The awareness and the continuing agitations by both men and the women folks to expand the playing field and grant access to all on the basis of equality and competency, can no longer be ignored. Everywhere, people are taking steps to tear down the artificial barriers created by the society to limit women’s aspirations by deliberately capping their growth projectile in business and by extension, financial intermediation. Some of these limitations and practices are themselves ingrained in cultural practices, certain religious beliefs and affiliations. But to a considerable degree, all of that is changing now.

    The fight for, and the agitation to give women their place and space is gaining considerable  momentum. The women are in the forefront pushing the frontiers, with cognitive support from corporations and specialised international bodies. The banking sector propelled by the Central Bank of Nigeria (CBN), is driving the project, with the active engagement of the United Nations, as well as the World Bank. The underlying message is that women posses equal  abilities and potentials as men ( some might even argue that women are more endowed), and as such should be encouraged to assert and unleash their potentials, to whatever positions and levels of engagements they wish and desire for themselves, and this without any inhibitions from any quarters.

    The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, had announced in the National Financial Inclusion Strategy report for 2018, that as part of the National Financial Inclusion Strategy (NFIS), more attention will be given to women, Micro Small and Medium Enterprises and to the northern part of the country in order to achieve 20 per cent financial exclusion target by 2020.

    He said: “In order to meet the NFIS target of 20 per cent financial exclusion for adults by 2020, the strategy has been refocused to explore five priority themes of youth, women, rural areas, Micro Small and Medium Enterprises (MSMEs) and the Northern region,” saying “these priority areas are expected to close identified gaps and tremendously advance financial inclusion. Emphasis will also be placed on the use of technological tools in improving access to finance among the underserved,” Emefiele said.

    According to UN Women, over the past decade, 131 countries have passed laws to support gender equality. This achievement, regretably may have suffered a setback with the COVID-19 pandemic outbreak, particularly with regards to financial inclusion and economic empowerment of women.

    In recognition of the existing  gap between men and women and the  limitations placed on women on several fronts  with respect to financial inclusion, coupled with the downside devastating impact of the coronavirus pandemic, the CBN developed and   launched the Framework for Advancing Women’s Financial Inclusion in partnership with the Financial Inclusion Special Interventions Working Group (FISIWG), Enhancing Financial Innovation and Access (EFInA) and Women’s World Banking (WWB).

    At the e-Launch of the Framework, CBN’s Deputy Governor, Financial Systems’ Stability, Mrs. Aisha N. Ahmad,  gave insight on the state of  financial inclusion of women in Nigeria. She said there was nearly 10 per cent gap in the financial exclusion margin between men and  women. She said the female financial exclusion rate was 40.9 per cent in 2018 compared with 32.5 per cent for men, pointing out that the gap  “may have widened as a result of the coronavirus pandemic given women’s primary responsibility for care giving, likelihood to be frontline health workers and their predominance in the informal sector which has been severely affected by the coronavirus induced-lock down.

    Mrs. said the negative effects of the pandemic on women’s financial inclusion have manifested in the existing structural challenges which have kept women out of the financial system. She listed cultural norms, lower education and financial literacy levels, poverty, high cost of financial services, concentration of women in rural areas, subsistence farming and limited knowledge of financial institutions in serving the women’s market, as some of the  limitations women have to contend with.

    These challenges, Mrs Ahmad added, “ call for bold and concerted efforts on the part of regulators, policymakers and other stakeholders in the financial sector to implement strategies that will help change social attitudes, reduce structural barriers and economically empower women to advance their financial and economic inclusion over the long term.’’ She said the CBN support the development of the framework  to complement some of its existing initiatives designed to expand access to finance for women.

    Some of the schemes, she said include the Micro, Small and Medium-size Enterprise Development Fund (MSMEDF).  60 per cent of which is dedicated to women and women controlled businesses, adding that over 62 per cent of the fund  has been granted to about 134,000 women. The  National Collateral Registry is equally involved in determining the types of securities  acceptable to support the loans.

     

    Factors responsible for gender financial disparity

    As already established, there’s about 8.5 per cent gap that needs to be bridged to bring women at par with their male counterpart on the financial inclusion paradigm. Unfortunately, this gap is said to be widening. The Minister for Women Affairs, Mrs. Pauline Tallen, who featured in representative capacity during the launch of the financial inclusion programme for the women, outlined some of the challenges responsible for widening gender-financial exclusion gap. These include vulnerable state of women-owned businesses, the digital divide, limited awareness of government intervention programmes and pressures of domestic responsibilities.

    Mrs. Ahmad also  urged all stakeholders to carefully review and implement the eight strategic imperatives presented within the framework; stating that focused implementation and collaboration amongst financial institutions, policy makers, regulators, development institutions and the public was required not only to close the gender financial exclusion, but to ensure a safe, accessible and affordable financial system for all excluded Nigerians.

     

    Banks’ driven schemes

    The gender gap in Nigeria represents a major issue to be resolved if the country is to achieve the targets it set in its National Financial Inclusion Strategy (NFIS).

    Empowering women through improved access to finance and social support are crucial in achieving the desired growth for the economy. This is the belief of First Bank of Nigeria Limited. The bank believes that investing in women’s economic empowerment sets a direct path towards gender equality, poverty eradication and inclusive economic growth. It acknowledged that the enormous contribution made by women, whether in business, or as farmers, entrepreneurs or employees, or by doing unpaid care work at home, is huge and should be preserved.

    First Bank is therefore supporting women’s economic empowerment through FirstGem, which gives them economic voice and brings many unbanked women to the financial system. The bank has advanced more thanN58 billion loans to over 81,000 women-led businesses and interests. Besides, 44,356 women (corporate and individual, including members of staff of the bank) currently own and operate the FirstGem account with a seating balance of N2.4 billion.

    Also, the Agent Banking platform – which the bank leads in the industry – has promoted not just financial inclusion of women, but also their independence, as there are many women among its Agent Banking which showed that there are 38,185 male banking agents, and 11,762 female banking agents.

    FirstBank Managing Director/CEO, Dr. Adesola Kazeem Adeduntan, said women-led businesses constitute a large part of the banks’ balance sheet and stream of income, adding that the bank will continue to give priority to issues that affect women.

    He said the bank is also in tune with the Nigerian Sustainable Banking Principles (NSBP), which requires that companies promote gender equality in workplace, adding that women remain some of the best workforces and always make great impact in establishments.

    He said FirstBank believes that women need to be economically empowered, pointing out that unless social concerns such as gender disparity and women economic empowerment are addressed, economic and environmental goals and overall sustainable development will be difficult to achieve.

    Adeduntan said the introduction of FirstGem, a female-focused product by the bank has contributed to the development of the Nigerian economy. Speaking at the FirstGem third anniversary conference held in Lagos, the bank chief said he was delighted that FirstGem is promoting savings culture, financial literacy, loan management, wealth creation and healthy lifestyle for women. Adeduntan said the product has a wide array of advisory, health and current awareness services for the discerning woman.

    At the heart of empowering a nation and developing communities, is women empowerment, letting them express their opinions as individuals. Studies and research carried out by organizations such as the World Bank, International Monetary Fund and Africa Development Bank, continue to assert this by adopting gender-based strategies in a bid to eradicate poverty and improve the economy of a nation.

    Empowering women by granting them access to vast opportunities and information will not only lead to personal development for women but also the development of the communities and societies they operate in.

    Access Bank remains at the forefront of women empowerment by leveraging on the ‘W’ initiative as a channel. The Bank pioneered women banking in Nigeria with the establishment of the Gender Empowerment Movement (GEM) in 2006 which later evolved into the ‘W’ Initiative, officially created in 2014. Such dedication to women empowerment has led to over 35 per cent of its customer that are women.

    The ‘W’ Initiative, the bank said, is a robust plan to provide women with banking solutions tailored to meet their diverse career and lifestyle requirements. It is a virtual community that aims to inspire and connect women to opportunities nationally and internationally, as well as give them a rewarding banking experience. In simpler terms, the ‘W’ Initiative is the home for everything Access Bank offers women and is open to all women irrespective of who they bank with.

  • Gowon at 86: Ogunsan salutes former Head of State

    Gowon at 86: Ogunsan salutes former Head of State

    Our Reporter

    The Chairman of Executive Group and Board Member, Lagos State Security Trust Fund (LSSTF), Ayo Ogunsan, has heaped encomium on former Head of State, General Yakubu Gowon (Rtd), on the occasion of his birthday.

    Ogunsan described Gowon, who clocks 86 today, as a godfearing man who has recorded monumental achievements in both private and public life.

    In a congratulatory message issued today and made available to newsmen, Ogunsan said personalities like Gowon are hard to come by.

    “If I have to describe the state of my heart on this ceremonious occasion of the 86th birthday of one of the greatest men alive on earth in the person of Gen. Yakubu Gowon, I would simply say I am lost for words.

    “It is safer to admit that no quantum of words or rhetorics can convey the personality of a man who is a father, spiritual leader and mentor to me. When your path crosses that of a man in the similitude of the General, especially when you are lucky to have him as a father, then, that alone is worth any length of testimony.

    “To a large extent, I can confidently say that the former Head of State is a lover of God and godly affairs too. Suffice to say that the spiritual side of him as well as our spiritual connection is something I cherish more than rubies. He is an encourager, intercessor and God’s advocate on earth. One can only say this about a few people on earth though.

    “Sir, as the convener of the Nigeria Prays Organisation, an interdenominational prayer network founded since 1996, your contribution to nation building has been monumental. You have continued to emphasise holy and righteous living as a panacea for the greatness of any nation like Nigeria. The organisation you willingly volunteered to found with no reward for you in return has been a blessing to many. This, most of us close to you, know too well and not cannot but be eternally grateful to God for that.

    “Simplicity and humility have been godly virtues that your life is built round. This we know too well. As Nigeria’s youngest Head of State at the age of 31, sir, your good works when you held sway between 1966 to 1975 can never be forgotten in a hurry. One of such is the creation of 12 new states to replace the four regions in the country.

    “Your disposition on national unity has been unequivocal and unambiguous, as you have continued to foster ethic cohesion and regional integration. It still amazes me when fathomed that since 1975, you have steered clear from partisan politics. One naturally would have thought that you would have been a politician today. At 86, you are still that very eloquent and cerebral person who has had to bag a PhD in Political Science from the University of Warwick, UK.

    “On interdenominational basis, worthy of mention is your passion for peace and tranquillity amidst the spate of insecurity and restiveness. You maintain that the church must provide a moral compass for the nation to make the people imbibe the fear of God and to follow righteousness.

    “Meet a man who has continued to use the weapon of prayer to address the challenges bedeviling the country. You reserve the view that the effectual fervent prayer of a righteous man avails much, as espoused in the Bible. For you, prayer is that formidable weapon with which fiery darts can be overcome. I salute you for teaching us the ways of godliness and holy living.

    “On behalf of my family and I, may I wish you a superlative birthday filled with endless blessings with divine grace to finish strong. Happy birthday, daddy!,” the statement read.

  • Young Professionals backs Nigerian youth protest against Police brutality

    Young Professionals backs Nigerian youth protest against Police brutality

    Our Reporter

    The Young Professionals (YP) arm of the Nigerians in the Diaspora Organization, representing the Americas continent (NIDOA) has unequivocally expressed their support for the sustained protest by youth and young professionals against police brutality in Nigeria.

    In a statement signed by the group’s Chairman, Dr. Barth Shepkong through the group Instagram handle, @nidoayoungprofessionals,  affirmed their strong support for the youth in the country, while they urged the government to strengthen the legal arm of the government so it can swiftly represent and respond to issues concerning youth, young professionals and everyday Nigerians regardless of their status or networks. “Our ultimate request is a safe and viable Nigeria as is guaranteed by our constitution.”

    The YP’s position as said by them is in the best interest of every Nigerian citizen regardless of location.

    “As Nigerians, we cannot stand by, while our brothers, sisters, and parents back home are demanding and protesting for basic human rights and dignity under the law, which includes a reformed policing system in the country.

    “We stand with every Nigerian and youth in particular to voice their grievances, to continue to make our voices heard, and maintain a good representation at the relevant table of decision making moving forward.

    “Likewise, we support the need to strengthen our legal arm, so it’s able to represent and respond swiftly to issues concerning youth and adults, regardless of status or network.

    “With the withdrawal of the SARS team, our position is that both the federal and state government must sign a document that will see to a public hearing of any agency’s misuse of office, against the citizens and hold accountable to the fullest extent of the court any convicted law enforcement agent or agency that is repressive or abuses their authority.

    “Lastly, for the youth and young professionals putting themselves forward on the streets, to advocate and ensure those representing them are held accountable to fulfill the duties that they were elected for, and in honour of victims and souls lost to this situation, we are strongly with you all and stand ready to assist as needed!

    “We applaud the effort of good serving public service officers, we also assure them of our support and strongly advise those that have upheld the oppressive and corrupt system to have a rethink.

    “NIDOA Young Professionals is not just about our economic impact and image protection of Nigeria in our continental region but also at home with our colleagues and fellow citizens,” it read.

  • #EndSARS protesters: Our new national heros

    #EndSARS protesters: Our new national heros

    By Doyin Okupe

    This generations of Nigerian youths have by the Grace of God achieved what has been impossible for the last several decades. The success of the youths is perhaps the most potent testimony of the abysmal leadership failure of the political and elite class in Nigeria.

    It is unique that the protesters do not have identifiable leadership and this is perhaps why they have been successful so far since the security forces are unable to truncate the nationwide protests by arresting and demobilising its leadership.

    But at the present level, the protesters must unify across board and constitute state leaderships. This should be done ONLY when the government has given public and irrevocable undertaken that they will not arrest such persons under any circumstances or pretext.

    These state leaderships will now come together and engage governments first at the state levels and thereafter through the respective state governors to the Presidency .

    It is heart warming to observe the assuidity and tenacity of purpose laced with integrity and courage our youths have shown in achieving their set goals and objectives.

    This gives hope for the survival of our Nation now and in future. This is the type of leadership that if sustained some of us will be willing to support and even follow.

    I will personally enjoin the government to listen to the voices and demands of its youth.
    We all also must collectively support this unprecedented youthful initiative while at the same time encourage the present government to do all in its powers to seize this opportunity to reset the administrative,social,ethical and developmental agenda of this Nation.

    The present situation is bigger than any one person, government or political party. Let us unite for once and save our nation. God bless our youths and God bless our country NIGERIA.

  • Reading the Bible inspire my music –MusicbySire

    Reading the Bible inspire my music –MusicbySire

    Our Reporter 

    American based Nigerian gospel artiste, Olorunsogo Michael Oni a.k.a MusicbySire is one talented singer who has been touching lives with his talent.

    The versatile vocalist who is inspired by Mercy Chinwo, Nathaniel Bassey and others started music through his Uncle.

    He said that his Uncle mentored and gave him the needed tutelage to soar in his chosen craft.

    In his words: “I got into music through my Uncle Detola Adeniyi who is an amazing gospel artiste. While we were growing up, he was always singing and playing songs. This made me develop passion for singing and writing at a very young age”.

    While many artistes get inspiration from their environment, thought pattern or even in their dreams, MusicbySire noted that he is gets inspired to compose songs when he reads the word of God.

    “I am inspired most times by words from the Bible and when I sleep sometimes, I sing in my dream and wake up singing the songs, I sang in my dream”.

    On moving to America, the boisterous singer stated that he relocated because he realized Nigeria is a dream killer. MusicbySire added that youths don’t live their dreams in Nigeria because of bad leadership.

    “I relocated to America just because Nigeria as a country is a dream killer. A lot of talented youths are in Nigeria but the bad government, entangled with tribalism, nepotism, favoritism, sidelines people with the brains to make things work. They put people who are not competent in positions. Sadly, it has gotten to the grassroots and has led many future leaders into the dark. After four years of studying Political Science at National Open University, I left the country”.

    Speaking further, the vocalist noted that he doesn’t focus on female attention.
    “I am a married man, so I really don’t pay attention to all that. I place myself in a position of respect so I’ have never had any weird experience”.