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Category: Friday

  • Implications of cbn’s bank recapitalisation policy(2)

    Implications of cbn’s bank recapitalisation policy(2)

    About 1month ago (12th April 2024), I wrote part 1 of the above topic, adding my voice to the decision of the Central Bank of Nigeria (CBN) to recapitalize Nigerian Banks in order to strengthen the Banks, consolidate the sector and rein fence it from present and potential risks and threats

     In today’s episode, I will continue my contributions on the implications of the Banks’ recapitalization policy and potential impacts on Nigeria’s economy, in the short, mid to long terms.

    Support for the achievement of the $1trillion economy

    As a “giant of Africa” and one of the biggest economies on the continent, Nigeria’s balance sheet is not up to $1Trillion. This should not be accepted and therefore I totally agree that we should be audacious in setting our target national economic value, going forward. Therefore, I like the audaciousness and gusto of President Bola Tinubu in this regard, because visions must be audacious for you to make progress. But audacious visions should be driven by the right strategy and the correct sequence of actions to achieve success. So the recapitalization should be part of the strategy, but the Bank recapitalization will be one amongst other pillars of the pillars for success, and without other critical pillars. If we want to deliver a $1 Trillion economy by 2025 we MUST re-activate our production sector, i.e. we need to get power fully onstream – generation, transmission, and distribution, and we need to re-ignite the argic value chain (which is a quick win). Tackling insecurity is also one of the critical pillars that MUST be addressed as a matter of national priority. A banking sector recapitalisation is neither here nor there if we continue to have serious insecurity issues. Therefore, there should be an over-arching strategy and the right sequence of events. Because from a project management perspective, when the mile stoning of the action points is sequenced properly, i.e. when you deal with insecurity, then you will be sure-footed, going forward. If you don’t deal with insecurity, then the drawback is that you may install a power plant asset somewhere in this country and you are at 70% completion, then insecurity will collapse/ destroy it which will lead to what we call “major slippages” in project management, i.e may be one step forward, 5 steps backward. Based on the foregoing, the strategy must be robust and the action planning should be proper with the right sequence of events. Importantly in recruitment and appointments of people that will man key positions, there are “round pegs in round holes”. I advise that Mr. President should consistently appoint people with domestic situational awareness with regards to the political, and socio-political issues of Nigeria. They should also have demonstrable sectoral understanding to domesticate strategies and policies for success – so that we are on point, on time, and impactful.  

    Read Also: Northern Elders reject CBN’s cybersecurity levy, says, it’s illegal, insensitive

     Enablement of an effective credit system

    President Tinubu has stated during his campaigns for Presidency that he will establish a credit-driven economic system for Nigeria. He delivered this promise with the passing into law and the establishment of the Credit Policy and system in Nigeria. So that affordability for essential assets and commodities like education, housing, transportation, etc. can be enabled for citizens. The objective is to in the long term stop the culture of “upfront cash” payment of all essentials of life which is one of the key enablers of corruption in Nigeria.

     I am of the opinion that the Banking reform and recapitalization policy by the CBN will support the achievement of President Tinubu’s vision and mission-critical objective of establishing a credit-driven economy.

     You cannot have an effective credit-driven economy when Nigerian Banks are running double-digit interest credit schemes. Therefore, I expect that in the next set of reforms that will follow the re-capitalization policy, the government (legislative and executive) will take into consideration prudential guidelines and regulations to ensure that interest rates are capped within what I call a reasonable win-win threshold. A situation whereby Nigerian Banks operate like shylocks will never augur well for the economy, because the banks will continue declaring profits in a declining economy whereby the number of multi-dimensionally poor Nigerians will be increasing – that is a misnomer. The growth of our banking industry should be directly proportional to the collective prosperity of Nigerians. Otherwise, the noble intention of the administration of President Bola Tinubu’s intention to run a credit-driven economy will not work with the way the Banks are currently operating – highly transactional and non-strategic

    Enable nigerian banks to undertake big-ticket capital projects

    The bank recapitalization will also boost the liquidity and capacity of Nigerian Banks to be more involved and productive in undertaking what I call the “big ticket” capital projects, especially in supporting the private sector and the Public-Private Sector (PPP) projects for example the AKK Gas pipeline projects, etc., over and beyond their current capacity which is obviously dwindling.

     This is not losing sight of the very important critical informal sector which actually drives 80% of Nigeria’s economy. Therefore, the boost in capacity should also reflect and be evident in the Banks’ support for Nano, Micro, Small, and Medium Scale Enterprises (MSMEs). Even though I have stated this is Part 1 of this Column, the importance of supporting the MSMEs and the informal sector of the economy by Nigerian banks cannot be over-emphasized.

     The Nigerian banks are highly operational and transactional, they are numbers-driven in an arithmetic progression for the short term and no long term, i.e. they are not strategic for the mid to long term and because of that there is no value creation, and value innovation in the Banking sector from a socio-economic perspective. That is also why when the “big ticket-US Dollar” capital projects come up, we see the Banks struggling to come up with the interventions even as a syndicate. That is why I am happy that the current CBN leadership decided to consolidate the industry and prepare it for better performance to fully participate and better drive the Nigerian economy. I am very well aware that due to the nature and scope of some of the big-ticket capital projects, they are better supported by International Finance Institutions/ Multilateral organizations, but I would like to see the upscaling of the capacity of our local banks, especially given the fact that even though we have been sliding backward in the last years, we still remain one of the biggest and potentially viable economies in Africa. Therefore, our local Banks that are bragging to have footprints and established presence in the subcontinents or regions across the world should be able to add considerable value to the recovery and growth of Nigeria’s economy – not marginally, but in a geometric progression, such that one of two banks could deliver is not whole at least partly such big-ticket US Dollar projects in areas like Power sectoral reform, Agriculture, Solid Minerals (exploration and processing), etc. We do not want Nigerian Banks to take the back seat when such critical projects are coming onboard and middle-tier portfolio investors will come in and take a large chunk of the pie of the opportunities in our Country will little plow back to our people and their communities., only for them to the announcing high numbers of profitability with little support for the economy at the expense of the citizens of this Country. That trend needs to change.

    Better operational efficiencies and better value for stakeholders

    One of the expectations is that the Banks will be healthier and stronger. The Banks are expected to also deliver better operational efficiencies, values, and dividends for stakeholders.  I would like to hear from the Banks, possibly through the CBN, how they will support the recovery of Nigeria’s economy, not just in words but also in actions.  With break-neck interest rates, the Banks are smiling to the Banks while almost 65% of Nigerians are cringing under socio-economic vagaries and the Banks should not be allowed to play the Ostrich in this situation. Banks are expanding, diversifying, and growing into other Countries Year-on-Year, regardless of how the economy is faring.  This situation is not in tandem with realities.

    How will banks support the Federal Government, going forward, especially with regard to the informal sector sustainability is very important. How are the Banks really giving Bank to Nigeria – which made them, the economy of Nigeria that built them to the extent that they have Branches in the UK, USA, etc? Citizens cannot walk into Banks and get reasonable credit lines for their MSMEs. I hope that the CBN will catalyze support for the informal sector beyond the current marginal and arm’s length support the banks are providing.

     In conclusion, I hope that the Bank’s recapitalisation policy will achieve the desired socio-political objectives for Nigerians.

  • Judicial reform is a critical success factor (2)

    Judicial reform is a critical success factor (2)

    “With bad laws and good civil servants, it’s still possible to govern. But with bad civil servants even the best laws can’t help.” …Otto von Bismarck – First Chancellor of the German Empire in 1871

    Last week I wrote part 1 of the above topic, adding my voice to the rising calls for reforms in the Nigerian judiciary. Some days ago, the conference on Judicial reforms which began last week was concluded where important resolutions and recommendations were made. I hope that the resolutions reached and recommendations made at the conference will be executed, otherwise the August gathering will end up as just a talk shop, and a sad waste of time.

     In today’s episode, I will continue my contributions on the way forward to reform our judiciary.

     Misconduct and corruption in the judiciary and legal profession

    The rising cases of Judges facing prosecution in recent years which further brought the Judiciary to the limelight for the wrong reasons require introspection of the judiciary and all critical stakeholders. This is in addition to allegations and counter-allegations of procurement of judgments by litigants, especially in political and election cases. These sad developments will further erode the confidence of stakeholders and citizens in the judiciary. A waning respect and confidence in the judiciary spells doom for any nation.

    Based on the aforementioned, there is no provision to excuse/ settle or condone criminality under other laws and regulations of the Federal Republic of Nigeria. Therefore, I ask that as part of the Judicial Reforms, judges that engage in such sharp practices to the chagrin of the Judiciary and the legal profession should be punished and stopped from doing so forthwith.

    Another key factor that has engendered corruption is the waning meritocracy in the judiciary just as is our civil/public service. This pervasive culture has propelled undeserving people to become judges and even grow in their careers to the detriment of such a noble profession whereby some people who should not be judges become justices. The embarrassing culture of issuance of all manner of expertes and judgments that even defy precedence reflects the concern of stakeholders that indeed the Bench should be rid of corruption if our polity could ever be salvaged.

    It would not be fair and sincere to talk about corruption in the judiciary without addressing the same issue that I dare say is also bedeviling the legal practice whereby some few lawyers are bringing the respectable profession to disrepute. As the saying goes, “One bad apple spoils the whole lot”. Therefore, while I commend the Nigerian Bar Association (NBA) for taking some steps to discipline lawyers who engage in professional misconduct and other forms of corruption, I urge the NBA to be more practical and pragmatic in cleansing the legal profession and protecting its reputation and respectability. It is very important that the credibility of the law profession is not tarnished in order for the practice to be respected and appreciated.

    It follows, therefore, that malaise in the legal practice is affecting the Judiciary. If nothing serious is done, we will soon not have the proper people become judges in Nigeria.

    Growing apathy for a career in the judiciary.

    In my humble opinion, the remuneration and career track in the judiciary is poor and not befitting of officers in the temple of justice, who are expected to live above board, be incorruptible, and adjudicate without fear or favor. Worst is the way retired justices are treated with disdain and disrespect just like how we treat most of our senior citizens who have served the Country with distinction and honor. I still remember an example in the case of the late Justice  .. who was treated in the most unfair and unjust manner, and it is unfortunate. Such actions discourage good judicial practitioners (judges and judicial officers who are in Nigeria’s judiciary is becoming so unattractive that it is gradually and inadvertently becoming a dumping ground for people who have no other career options to become judges or judicial officers and that is dangerous. When depressed, frustrated, and/ or unsuitable people increasingly become judges in Nigeria, then the Country is doomed.

     A career in the judiciary should be when officials in the temple of justice are no longer role models in Nigeria. Gone are the days when Judges, Court registrars, etc. were revered and held in high regard in our society. Even the lawyers mostly are not keen on becoming judges due to poor remuneration, infrastructure, lack of working tools, etc. This ugly trend should change if we are sincere about reforming the judiciary. The working conditions, remuneration, and compensation package for Judges and judicial officers should be attractive enough to attract the best of our citizens in terms of knowledge of the law, intelligence, and integrity.

    The njc and the paradox of self-evaluation

    I align with the call for the removal of the CJN as the chairman of the National Judicial Council (NJC) by stakeholders including the Nigerian Bar Association (NBA).

    I also agree that the composition of the NJC, which is the body responsible for disciplining erring judicial officers in the country, is currently defective from a regulatory perspective. The judiciary should know better than anyone, that it should not “self-regulate” itself. Therefore, I commend the recommendation of the NBA that, “members of the NJC should be appointed as follows: six judicial officers appointed by CJN; six lawyers nominated by the National Executive Council of the NBA including the NBA President and six non-lawyers appointed by the President, Federal Republic of Nigeria, subject to the approval of the Senate. And also, that, “The Chairmanship of these bodies should be rotated between the heads of the three constituent groups.”.

    I believe the recommendation on the structure of the NJC will ensure more effective regulation, and consequence management which will ensure discipline, Moving forward.

     Dearth of knowledge and lack of operational inefficiency

    The judiciary is operationally stuck in the past – still using 20th-century manual and archaic operations systems.

    Read Also: Olubadan: Olakulehin’s enthronement takes another twist as Ladoja, kingmakers differ on terms of settlement

     Knowledge gaps in judges’ capacity to update skill sets and competencies – The need for more training and capacity building especially in the use of modern tools and techniques like the use of information technology to fully automate court processes, proceedings, and management including the record of proceedings by judges. A situation where judges are largely manually recording case proceedings using “long hands” is neither efficient nor sustainable in the 21st century. Using archaic methods seriously undermines the effective administration of justice and is a major failure factor for the judiciary. This issue should be treated as a matter of priority.

     Increase of unskilled human resources as support staff in the judiciary

    Manpower in the judiciary is not measuring up to the rising population. It is important to note that just like in the case of insecurity whereby the armed forces are seriously under-manned to keep up with the rising population in Nigeria and the corresponding rise in criminality and insecurity and the resources needed to adequately combat crimes, and terrorism; the judiciary is also seriously under-manned to keep up with the rising population and the corresponding rise in the demand for adjudication to address constitutional, civil, and criminal cases. The current number of Courts across Nigeria, the number of judges at high lowers, and worst still the number of judges at the Appellate Courts and the Supreme Courts leaves much to be desired. Indeed, the workload on the judges is too much, unhealthy, unproductive, and completely unacceptable. This accounts for the snail-speed of our court processes, procedures, systems, and performance which in the end in most cases end up as justices denied; in line with the legal mantra – “justice delayed is justice denied”.

     Undue interference by the executive and financial autonomy for judiciary

    One of the critical failure factors of an effective judiciary in Nigeria is undue interference by the executive in the workings of the Judiciary especially given the methodology of the appointment of Judges in Nigeria whereby is based on opaque criteria and mostly hinged on privileges rather than merit, competence and integrity then we are doomed

     Another critical failure factor for the judiciary is the situation whereby the judiciary has to continuously go cap-in-hand to the Executive arm of Government at federal and Subnational levels for financing. I join in the advocacy that in order for the judiciary to be fully reformed and satisfactorily effective, the judiciary must be financially independent.

     In closing, I am of the strong opinion, that It is only a reformed, modern, well-resourced (man and material), well-equipped, empowered, and autonomous Judiciary that will significantly add value to transparency and accountability; foster and entrench fairness, equity and justice (or a sense of it) in Nigeria.

  • Breaking the Muslim unity

    Breaking the Muslim unity

    Preamble

    If anything is called Satan, and that diabolical entity truly lives in the midst of humans, Nigeria must be his abode. As a mysterious entity, Satan may not be physically perceived but his shadow is evidently vivid in the evil machination generally called politics. And the elements in the society often called politicians are his undeniable agents.

    Politics is like infectious leprosy. Any contact it makes with human fingers will surely render those fingers ineffective with contagious implication. The evil of politics in any given society is like the slough of a snake which has no life of its own but scares the people around with its empty appearance.

    Since her independence in 1960, Nigeria has hardly experienced any calamity that did not emanate from politics. Thus, like the Island of Ithaca of yore in Greek mythology, Nigeria harbours a sphinx today that poses unanswerable question to her citizens. And any individual or group that fails to answer the question correctly may be instantly devoured by the mythological sphinx.

    Paradoxical Odyssey

    Today, Nigeria has become a paradoxical odyssey on which the only ferrying vessel is politics. And the driving engine of that vessel is money which seems to be the main determinant of individuals’ Hell or Heaven on earth. We are now in an era when the source of money no longer matters as much as money itself. What really matters today is not how decent you are as a person but how rich no matter the source.

    In a nutshell, a rich rogue is by far more relevant and more important in Nigerian society today than a poor gentleman. As a matter of fact, there is no gentlemanliness without money in Nigeria today. The size of your purse determines the status by which you are recognised in the society. And that is the new definition of pedigree.

    It is not surprising therefore that men and women of letters as well as high caliber professionals are now struggling to become servants to mere nonentities who by hook or crook have stuck the opportunity to occupy public positions in a clueless government and thereby control a treasury. The world has changed so much that the same money which used to serve man in the past is now the master that man serves with relish. In the face of money, conscience has become a lost paradise that no one seeks again. And with its disappearance, human dignity has also become an old wife’s tale. Whither Nigeria’s tomorrow in this?

    In the wilderness of avarice and aggrandisement imposed by money, Nigerians of today have lost the culture of dignity highly cherished by Nigerians of yesterday and there is no sense of nostalgia for it. In solo and chorus, the song of this era is ‘STOMACH INFRASTRUCTURE’.

    When a hopeful country finds itself in this kind of situation she quickly resorts to the last bastion for solution. The last bastion in the case of Nigeria is religion which is supposed to be the first estate of the realm. But can there be religion without clerics? Where are the clerics in Nigeria? That is the indication that Nigeria, as of now, is a hopeless country.

    Sailors without compass

    The so-called clerics in both Islam and Christianity in Nigeria today are like sailors on a strenuous voyage who have lost the compass that guides  them through the waves of water while their congregational passengers continue to pray fervently for safety on a turbulent ocean.

    To them (the clerics) religion is no longer the path to salvation but a means to material wealth even as they have relegated morality to the background.

    Here is a country where clerics do not only preach material prosperity but also live in stupendous affluence in the midst of their wretched congregations. Here is a country in which clerics are either known for trafficking in drugs or gun running or patronage contract for supply of ammunition to the government as in the notorious episode of a recent South Africa mission that ended up in a fiasco or even for taking bribe from the government as in the case of alleged N7 billion that caused wild brouhaha in Nigeria recently. Here is a country where neither conscience nor morality has a role to play in religion any more as the so-called clerics have banished both and thus become not just accomplices of political rogues but also their dogs.

    Meetings without agenda

    As a result of self-denigration by these clerics, the government has turned them into a willing tool in the game of political machinations to the benefit of the political gladiators. And in their desperate search for votes in recent times, the politicians have consistently chased the clerics around with money knowing very well that nothing remains of religion these days in Nigeria beyond money for which the so-called clerics will fall for anybody with money.

    Not long ago, a stone was deliberately thrown into the serene brook of Nigeria’s Southwest Muslims by politicians with the intention of causing implacable ripples in that brook. A clandestine meeting of the League of Imams and Alfas was initiated by the presidency and scheduled to take place in Akure, Ondo State. The agenda of the meeting was not disclosed but its timeliness and manner of mobilisation clearly suggested its undisclosed purpose.

    A similar clandestine meeting had earlier been arranged for Lagos penultimate week by the same Presidency which was botched by the region’s Muslim leadership for fear of being politically blackmailed.

    Yet another clandestine meeting was initiated also by the Presidency this time with the Muslim Students Society of Nigeria (MSSN) which was scheduled for the Presidential Villa in Abuja. This is yet to take place as the arrow head and chief mobiliser for the meeting is finding a brick wall on the assignment. The Nigerian media has widely reported these clandestine moves by the government with the headline that read thus: ‘Meeting: Yoruba Muslims Snub Presidency Again’.

    Read Also: Dangote gives rice to Muslims in Ondo

    Media report

    Here is how the media reported the incident: “Yoruba Muslim clerical leaders under the aegis of the League of Imams and Alfas have snubbed the Presidency over an invitation to them for a meeting that was apparently meant to lure them into endorsing the joint ticket of a particular party (Jonathan/Sambo ticket) in the coming presidential election.

    The meeting in which Vice-President Muhammad Namadi Sambo was to represent his boss was earlier scheduled for another day in Akure, Ondo State but had to be shifted to Wednesday in the same state for lack of adequate mobilisation.

    Learning from the experience of their Christian counterparts who were recently enmeshed in a controversial N7 billion scandal that has caused a crack among Nigerian Christians, the leadership of the League of Imams and Alfas in the six Southwest states plus Edo and Delta decided not to be involved in an embarrassing meeting that could cause a crack in the rank of the Muslim Ummah.

    A similar meeting earlier arranged with Yoruba Muslim leaders and fixed for Lagos by the Presidency recently was equally aborted for the same reason cited by the League of Imams and Alfas just a day before it was to come up.

    Our reporter’s investigation revealed that the leaders of the League contacted one another and resolved not to be part of any meeting with any political group or individuals at this time to maintain their neutrality as worthy clerics.

    The Akure meeting said to be coordinated by the Chief Imam of Owo, Sheikh Ahmad Aladesawe, who incidentally, is the current Secretary-General of the league. He (Aladesawe) was said to be passionately involved in mobilising his colleagues in the league for the meeting which ended up in a fiasco.

    Besides Imam Aladesawe, some other Imams who flouted the decision of the League and attended the meeting for a seeming personal gain were the Chief Imam of Osogbo, Alhaji Rabiu Animasaun and the Chief Imam of Ekiti, Alhaji Bello Keulere. The few others who claimed to have attended the meeting as Imams were quite peripheral and not prominent at all in the league.

    From Ibadan, Lagos, Markaz, Agege, Abeokuta, Ijebu Ode, Osogbo, Ilaro, Ado Ekiti, and Auchi as well as other major cities of the region, the common question on the lips of the Imams was “why now?

    Following the failure of the Lagos meeting, the Presidency, in a bid to break the ranks of the Yoruba Muslim Ummah, embarked on an alternative meeting with the League of Imams and Alfas and another with the Muslim Students Society of Nigeria (MSSN).

    The President of MSSN, Alhaji Sirajudeen Abdul Azeez, who was said to volunteer to mobilise the leaders of the group for the meeting with the Presidency, despite a resolution at a recent leadership meeting in Akure, Ondo State, not to attend any such controversial meeting could be said to be acting on his own.

    Reflecting on the repercussion of such controversial action, the leadership of MSSN resolved to disown any such meeting at this politically volatile period and warned that nobody should use the name of the group for any selfish political gain.

    No particular date was fixed for the Presidency’s purported meeting with the leadership of MSSN but inside information suggested that is supposed meeting would come up at the Presidential Villa in Abuja before the Presidential election in March 2015″.MUSWEN’s Communiqué

    Meanwhile, the Muslim Ummah of Southwest Nigeria (MUSWEN) has called on the Muslims in the region to once again pray congregationally for peace in Nigeria as the 2015 general elections approached.

    The apex body of all Muslim organisations in the region made the call in a communiqué issued at the end of a three- day retreat that was held between 13th and 15th of March, 2015 at the Wale Babalakin Estate in Gbongan, Osun State. The communiqué was signed by its executive secretary, Prof. Dawud Noibi.

    MUSWEN specifically slated Sunday, March 22, 2015 for the prescribed prayers that were expected to hold at the Eid praying grounds or local Mosques in every town within the region.

    Quoting the Prophetic Hadith that classifies prayers as the weapon of the Muslims, the Organisation implored the Muslims not to relent in offering prayers especially at this precarious time of the nation’s history.

    MUSWEN however decried the lukewarm attitude of the Southwest Muslims to the institution of Zakah, saying the consequences of such attitude are very detrimental to the propagation and progress of Islam in the region.

    Leaders of prominent Muslim Organisations from Ekiti, Lagos, Ogun, Ondo, Oyo and Osun states, who participated in the retreat said the necessity for prayers by Muslims was most apt then given the prevailing cloudy political atmosphere in the horizon.

    The Apex Islamic body in the Southwest also stressed the need for unity of Muslims in line with the mission and vision of the Organisation stressing that without unity there could be no progress.

    In another vein, the Organisation frowned at the lopsidedness in the federal appointments to political offices from the Zone, saying such appointments clearly put the Southwest Muslims at a great disadvantage and paved the way for unnecessary suspicion.

    It therefore called for equity, fairness and justice by the Federal government in its treatment for the people of the zone irrespective of their religious inclinations.

    Prominent among the Muslim personalities who attended the retreat were Alhaji Najeem Awodele,former Minister, Professor Is-haq  Oloyede, the Secretary-General of the Nigerian Supreme Council for Islamic Affairs, Justice Abdul Fatah Adeyinka (deceased), a retired Chief Judge of Lagos State, Alhaja Latifah Okunnu, a former Deputy Governor of Lagos State, Alhaja Sekinat Adekola, the Iya Adini of Yorubaland and Dr. Jubril Oyekan.

    Delegates at the retreat also paid a courtesy call on Justice Bola Babalakin (now deceased), the former acting President of MUSWEN in his Gbongan country home.

    Members also prayed for the repose of some of its late founders such as Prof. Aliu Babatunde Fafunwa, (Pioneer President), Alhaji Abdul-Azeez Arisekola- Alao, Dr AbduLateef Adegbite and Sheikh Sadrudeen Biobaku. May their souls be blessed.

    The theme of the retreat was ‘MUSWEN: SUSTAINING THE MOMENTUM’.

  • Judicial reform is a crititcal success factor

    Judicial reform is a crititcal success factor

    Background

    The 2-day National Summit on Justice 2024, organized by the Federal Ministry of Justice in collaboration with the European Union, the International Institute for Democracy and Electoral Assistance, the United Nations Children’s Fund, and the United Nations Office on Drugs and Crime; commenced two days ago (24/04/2024), is a welcome development. I commend the Minister of Justice and Attorney of the Federation, Mr. Lateef Fagbemi SAN for organising this important Summit. I also note that some days ago the President of the Nigerian Bar Association, NBA, Mr. Yakubu Maikyau SAN, stated that there will be focused discussions on judicial reforms during the upcoming 2024 NBA Conference. I hope that there will be sincere, honest, and forward-thinking deliberations during all the events, and more importantly, I hope that a strategy will be crafted for the betterment of the Judiciary in particular, particularly the legal profession and the generality of Nigeria in general. I believe that it is only when we fix our judiciary, that we can be able to truly fix our polity.

     I am happy that there is a growing consensus amongst critical stakeholders with regard to the issues in the judiciary and the need for critical reforms. Indeed the positions taken by  President Bola Tinubu (represented by Vice President Kashim Shettima), Senate President Godswill Akpabio, the Chief Justice of the Federation, Justice Olukayode Ariwoola, and the Minister of Justice and Attorney of the Federation re-echo the consensus about the malaise in the Judiciary. The consensus of the need for a reform of our judiciary is interestingly reflective of a position taken about 77 years ago by the late Chief Obafemi Awolowo, the former Premier of the Western region of Nigeria. In 1947, the late Chief Awolowo wrote that “Corruption is the greatest defect of the Native Court system.” He complained that not only did judges take bribes, people used their connections to enrich themselves and avoid punishment for their crimes. Does that sound familiar?

     Accordingly, I am making this contribution as a patriotic Nigerian, a friend of the legal profession from which the judiciary sprouts and grows. I am also speaking on this topic as a critical stakeholder – being a litigant in ongoing or decided matters, as a Plaintiff or Defendant; where I have experienced first-hand, the impact of good and bad judicial practice, especially as a victim of miscarriage of justice.

    Indeed, due to a lack of consistent, honest, and sustained evaluation, citizens’ engagements, and reforms; the judiciary has inadvertently and in some cases I dare say, deliberately become part of the problem rather than a solution provider for a better Nigeria in terms of the improvement of our democracy, fight against corruption, other forms of criminality,  and the entrenchment of fairness, equity, and justice in our societies. The judiciary has sadly become an enabler/ promoter/ partaker of corruption,  erosion of our value system, and degradation of our society, and part of the reason why the executive and legislative arms of government in Nigeria have been underperforming with no consequences.

     Therefore, based on the aforementioned facts, I dare say that the inability of the executive and legislative arms to deliver the dividends of democracy in Nigeria is partly due to some of the shortcomings of the judiciary. 

     The judiciary should be able to play its role without fear or favor and not allow itself to be used to undermine the process of reforming our Country while ensuring that justice is served to all. While undertaking reforms, it is also important not to forget that the judiciary is also part of the Civil Service.

     Challenges and ways forward

    The best way to chart the way forward for the judiciary, is to dimension some of the key challenges bedeviling the Judiciary, because only then could we be able to develop a strategy and blueprint for Judicial reform in Nigeria. I humbly illustrate below and in subsequent episodes, what I consider as key challenges and “ways forward”, that must be addressed in order to reform the judiciary as a matter of national priority.

    •  Plethora of Exparte Orders and conflicting judgments are becoming anathemas to our polity

    One of the classing examples of how the judiciary enables wanton corruption in Nigeria is the ugly trend how persons and organizations lean/ hide under section 46 of the 1999 Constitution as amended, to secure injunctions/ judgments to stop investigations, especially on matters of corruption, other forms of criminality, and even terrorism; to the extent that judges grant orders to stop statutory bodies from performing their constitutional responsibilities, which leave much to be desired. This is a serious issue that is becoming an anathema to the progress of Nigeria. In most of the cases where such injunctions or judgments are given, it is very clear that the prayers of the applicants are out of place at no moment. Additionally, some of the injunctions are granted in clear violation of the constitutional provisions given those Arms or agencies of Government, for example; the National Assembly in line with Sections 88 and 89 of the 1999 Constitution, or the provisions of the Acts of the EFCC, ICPC, Nigeria Police, DSS, etc. In any case, it is elementary to note that anyone trying to stop an investigation into criminal allegations is actually indicating that he/ she is trying to avoid investigation and possible prosecution, and therefore, such applications should not be granted by the honorable justices. This is because innocent parties will set the records straight and clear their names when they face an investigation. Unfortunately, we are all witnesses to this ugly trend which if not stopped, will certainly legitimize corrupt practices, and all forms of criminality including terrorism and acts that could threaten our territorial integrity. These are serious issues with potentially serious consequences on our polity, and should not be entertained by any well-meaning judges or citizens of Nigeria.

     In addition, the ongoing practice by judges of cognate jurisdictions granting conflicting/ countermanding injunctions/judgments, especially in political and criminal matters.; in my opinion amounts to misconduct by justices and judicial officers. This is especially so when senior members of the bench (serving and retired Judges) have also re-echoed these concerns, so far, to no avail. I urge that these practices that bring disrepute to the judiciary should be estopped forthwith so as to reclaim the reputation and sanctity of the temples of justice (i.e. the Courts) in Nigeria and consequently give more respect and gravitas to the judicial pronouncements of our judges.

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    Moreover, to put things in context, there are no lacunas in our laws regarding the principles of separation of powers, purviews, and causes of action, for statutory bodies e.g. arms of government like the National Assembly, law enforcement, regulatory and prosecutorial institutions. There are clear provisions of the Constitution of the Federal Republic of Nigeria, whereby the party or persons that are/are not satisfied with the decision/ action of the statutory bodies undertaking the investigation, could go to Court and seek protection and/ or redress. However, going to Court should be done only if the investigation is undertaken wrongly or concluded wrongly. But to pre-empt a criminal investigation with a court order to stop the investigation ab initio presupposes guilt and/or attempt to obstruct justice which in itself is an offense under our laws. Therefore, for honorable justices to stop or frustrate an investigation that may unravel corruption, criminality, terrorism or threat to national security is tantamount to promoting corrupt practices and other forms of criminality. Such injunctions/Orders have been frustrating the duties of the National Assembly, the Nigeria Police Force, EFCC, ICPC, DSS, the Military, regulatory bodies, etc.

    Accordingly, on the basis of legal reasoning, the judiciary should allow and support statutory institutions to perform their duties, rather than prevent valid investigation or obstruct the principles of separation of powers that they- the judiciary should protect! Legislative, regulatory investigative, and prosecutorial institutions should be allowed to undertake their mandates as enshrined in the Constitution. If some judges continue the habit of forestalling investigations under the guise of fundamental human rights, as long as the investigation (civil or criminal) does not violate any constitutional provision; then that Judge, in my opinion, is supporting the obstruction of justice. 

    Based on the aforementioned, there is no provision to excuse/ settle or condone criminality under other laws and regulations of this Country. Consequently, I ask that as part of the Judicial Reforms, judges that engage in such sharp practices to the chagrin of the Judiciary and the legal profession should be stopped from doing so forthwith.

    I will continue elucidating more of my insights and perspectives on this very important topic of judicial reforms in subsequent episodes.

  • The single window platform

    The single window platform

    “A hero is judged by his or her performance and by the positive impacts achieved” … Professor Ali Mazrui.

    The inauguration of a steering committee for the Single Window (SW) Project by President Bola Tinubu is an excellent step in the right direction.

    Through this move, Mr. President Tinubu has triggered a process that will significantly enable process and business improvements for better economic performance, moving forward. The Single-Window platform is a one-stop-shop operational model that is critical to removing the multiple pain points that elongate processes with adverse impacts of businesses, international trade, and the overall economy of Nigeria. This SW platform has been recognized by organizations like the United Nations Economic Commission for Europe (UNECE) and its Centre for Trade Facilitation and Electronic Business UN/CEFACT, the World Customs Organization (WCO), World Trade Organization (WTO), etc., and has been adopted by many Countries around the world including USA, UK, UAE, Singapore, China etc.

     One of the critical success factors for economic sustainability and growth is for the government to create platforms and systems that can promote diversification of the economy, trigger additional or improved economic activities, and at the same time facilitate the enablement of these businesses in ways and manners that they will be successful and impact on the economy, short to long term. The Single Window platform will surely enable the aforementioned objectives.

     It is worthy of note that previous administrations have attempted to implement the Single-window platform under many policies, including the Executive Order on the Ease of Doing Business during the administration of President Muhammadu Buhari. Lack of political will to fully implement the presidential Executive Order of Ease of doing business at the Cargo terminals or our Ports was the critical failure factor. I am confident that President Tinubu has the political will to ensure the success of the implementation of the Single window policy during this administration.

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     Accordingly, I agree with Mr. President that we cannot sit and allow over $ 4 billion of Nigeria’s national income to continue to leak away annually due to red-tapism, inefficiencies, and corruption. This initiative by Mr. President is timely, and I am very excited about this development as I look forward to full implementation with full interagency collaboration and synergies with other stakeholders to ensure success

     Essentially, the false starts and failure to implement the single window platform over the years were due to corruption. The refusal of the agencies that have no business in the Ports (Sea, land, and Air) to leave the Ports, and the collusion between some unscrupulous government officials and bad business operators are some of the issues that frustrated the success of this laudable project for many years. Indeed, this step taken by President Tinubu, to my mind, will lead to the successful implantation of a platform that has been successfully implemented in many Countries around the world including some Countries in Africa like Ethiopia, South Africa, etc., and yet Nigeria is still lagging behind.

     One of the negative impacts of not having the single window platform includes taxation issues, inefficient operations at our ports (Sea, Land, and Air), increased cost of doing business, leakages, and a disjointed and inefficient logistics supply chain management.

     Some of the key achievements will include:

    •The timeline of processing cargo will be shortened drastically thereby significantly improving supply chain management and delivery;

    •Cost of doing business will be reduced thereby improving the ease of doing business; The platform will also reduce the cost of operations for the government which will impact on the reduction of cost of governance. This is Because layers of bureaucracy and their tangible and intangible costs will be eliminated.

    •Efficiencies and effectiveness of service deliveries will be achieved with a positive ripple effect on the economy.

    •Leakages will be blocked. Consequently, revenues for federal government will increase

    •Operational efficiencies, revenue and profitability for business will improve and will impact the overall national economy.

    •The single window will essentially be a win-win for all, i.e. importers, exporters, consignees, government, etc.

    •Nigeria’s rating in international business will improve due to compliance with best practices.

    •Nigeria will be better prepared and more competitive on the Africa Continental Free Trade Area (AfCFTA), ECOWAS, and other continental and international platforms

     Some critical success factors I submit some food for thought for consideration while undertaking this important national assignment.

     Political Will

    Politics will be a critical success factor because the entrenched vested interests that have frustrated the previous attempts and efforts will yet again attempt to ensure that the single window does not succeed so that their activities of economic sabotage will continue.

     Due to entrenched vested interests that will be more interested in maintaining the status quo, sabotage Is a high-risk element that Mr. President should not condone. Therefore, I urge Mr. President to deal decisively with anybody/ people who attempt to frustrate/sabotage this project should be dealt with decisively so as to send a clear message that this time around the Single Window platform must work.

     Governance and Operational Model for The Single Window Platform

    Effective coordination is another critical success factor. I hope that Mr. President will give a clear directive as to who will drive the single window platform. For instance, I am of the opinion that the platform should be driven as a special project by a special project management office, with a direct line of report to Mr. President or the Chief of Staff to the President. My proposal is due to the dependencies and interdependencies across the current complex nature of operations whereby government agencies with varying mandates, priorities, targets, and objectives; for example, the Nigeria Customs Service, FIRS, FAAN, NPA, NAFDAC, NDLEA, etc., mostly operate in silos. The Interim Special Project Office will ensure the objective setup of the platform, efficient and effective delivery of the shared services that will certainly evolve, and effective management of critical stakeholder engagements, communication management, and the overall performance management of the project. The Special Project Office should have a tenure to be determined by Mr. President after which a governance framework would have been set up to drive the single-window platform from then on.

     This governance framework will better manage interagency rivalry and competition, improve synergies, and eliminate sabotage. The Project Team should be led by a subject matter expert with a track record of capacity, integrity, and track record of performance, and multi-sectoral experience especially but not limited to Strategy, operations management, logistics and supply chain, Information Technology, and Project Management. The person’s key mandate will be to act as a neutral party and coordinate the successful implementation of the single-window project.

     It should also be instructive that the people who will drive the processes within the single window platform should have not just the capacity but also the integrity to do the job. There should also be a layer of effective and efficient monitoring and evaluation of the success of this project year-on-year for the next few days of this administration. From a governance perspective, Compliance with extant laws and regulations is also a key pillar for success.

     Round pegs in round holes

    Another key challenge that will hamper the success of this initiative is the lack of existing capacity within the current public sector entities to effectively drive this very robust and technology-driven platform. I advise that those capacity issues should be addressed dispassionately, and objectively to ensure that we have round pegs in round holes.

     Quality assurance and business continuity

    Because it will be technology-driven, I hope the Disaster recovery and System continuity plan will be robust, practical, and effectively tested with fail-over to manual if and when necessary to avert a national disaster where we have failures due to power outages, systems failure, or force majeure. WE CANNOT AFFORD TO HAVE A FAILURE WITHOUT A FAIL-OVER. There must be a backup to ensure continuity in the event of a crisis or disaster.

     The single window will also ensure and consolidate data integrity with regard to the volumes of our import and export cargoes, the receipts thereon in terms of revenues and other variables. This platform will also ensure the integrity of the process such that no agency or stakeholder inadvertently or deliberately circumvents the system.

     Critical Stakeholders Engagement

    We need the buy-in of critical stakeholders to ensure the success of this with a positive impact on the economy. I believe that more needs to be done to that effect in terms of execution. We believe that it is not the sole responsibility of government but rather a collaboration between the private and public sectors in trying to see how we can improve our trade processes for better economic growth and development

  • Not by Desperation

    Not by Desperation

    Desperation

     “Are they (the unbelievers) claiming the possession of the right to distribute the bounties of your Lord? It is ‘We’ (Allah) that distribute among people their sources of livelihood in this world and ‘We’ exalt some in rank above others so that some may employ the services of others. Your Lord’s mercy is better by far than all their hoarded treasures”. Q. 43: 32

    Preamble

    History is resplendent with lessons for people whose steps in life are in tandem or not with Allah’s guidance. There is no life’s odyssey without a divine warning. Heeding or shunning such a warning is however a matter of choice. And the consequences or otherwise of such a choice will eventually become the heritage of the concerned person.

    We live in a world, today, that is quite different from that of the centuries past when the Quran was revealed to Prophet Muhammad (SAW). But surprisingly, nothing in the contemporary world has run counter to the predictions of that sacred Book or those of the last Messenger of Allah, Prophet Muhammad (SAW).

    For instance, business transactions in the time of the Prophet might not involve high technology or the sophistication of transport as of today but the norms which guided business in those days are still as vital today as they were then. Not even the introduction of mundane ideologies like capitalism, socialism, and communism has altered those norms. So far, the source of the wealth of the world has not changed from what it was in the past millennia. That source is the earth from which every atom of wealth emanates. Even the materials used to manufacture satellites or space shuttle aircraft are from the earth.

    Thus, from agriculture to nuclear device, no new norm has been introduced to warrant any new world order that can affect the faith of the Muslims. As a matter of fact, the world has witnessed the collapse of communism and that of socialism within a period of 74 years despite their overbearing influence when they held sway. It is just a matter of time for the current pervading capitalism to go the way of socialism and communism.

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    Economic ideology

    An unlettered personality like Prophet Muhammad (SAW) did not need to formulate any mundane economic ideology to run a great Islamic government. He was not just a political leader but also an economic expert, a great law giver and an army general of impeccable status.

    Without necessarily going into details on how he managed the economy of the Islamic state which he established and ruled from the scratch, it is obvious that even his ascension to the seven planets which paved way for modern man’s exploration of the space is of immense economic value to the contemporary world which no sensible critic can logically dispute. Although the Quran which was revealed to an unlettered Muhammad (SAW) is seen by some ignorant people as a mere religious Book, the economic value of that Book has remained unquantifiable and will remain so forever. The fast spreading Islamic banking in the West today is a clear evidence of that fact.

    Being the most read book in the world, the Quran has been translated into hundreds of languages making it possible for millions of people, Muslims and non-Muslims alike, to be employed at the various segments of the world’s economy. For instance, the writing of the Qur’an, its recitation, its proof-reading, its printing, its marketing, its teaching, its translation, its interpretation and even its criticism by unbelievers are all sources of economic survival for millions of people in the world irrespective of their religions. The global engagement in research on that glorious Book by various scholars and intellectuals either for acknowledgement of facts or for criticism are an attestation to the above assertion. There was no book like the Qur’an before its revelation and there will never be a book like it till the world will come to an end. The mounting hostility to it in certain quarters is largely due to ignorance about it. But that cannot continue forever.

    Islam as employer of labour

    If only one quarter of a billion people is gainfully employed in the workings of the Qur’an alone, today’s world economy would have been remarkably upheld by the religion of Islam. Yet, apart from the Qur’an, millions of people are engaged in various businesses relating to Hadith (Prophetic Tradition), Fiqh (Islamic Jurisprudence), Tarikh (Islamic History), Tawhid (Faith in the oneness of Allah) and Thaqafah (Islamic Culture) among others. All such specialized books which emanated from the Qur’an itself were advanced to compliment the sacred Book of Allah.

    Even, for hundreds of years that the Orientalists were busy criticising Islam through their satanic publications, it was undeniable that those destroyers were benefiting from the economic legacy of that divine religion through the sale of their evil publications.

    Today, even as the same Orientalists are busy reversing themselves on what they had maliciously published about Islam in the past they are still benefiting economically from that great religion.

    However, despite the vast economic advantages provided by Islam, some unscrupulous Muslims including Nigerians still engage in illegal businesses that contravene the tenets of that divine religion. Some of such Muslims are among the thousands of Nigerians who are now languishing in various prisons around the world. Some others are even sentenced to death, by various means, as punishment for their crimes. Incidentally, some of such people often commit their atrocities under the cover of Islam. This happened even during the time of Hajj rites.

    This reminds yours sincerely of a fortuitous encounter with one of them as far back as 1981 which keeps my heart quivered even today. I had once relayed that ugly encounter in this column through an article entitled ‘Business made in Prison’. But I decided to repeat it here today because it was an experience from which young Nigerian Muslim men and women of today can draw a lesson from.

    Illicit act

    A Nigerian youth of about 30 years of age called Akram (not real name) did not have anything like poultry in his dream when he was going into Saudi Arabian prison as a convict in 1981. His only prayer was for Allah to influence the minds of the Saudi Authorities to have mercy for him and grant him amnesty after two or three years in prison. His service term was 15 years. He had earned the sentence through drug trafficking engendered by blind ambition to be quickly rich by all means.

    Akram is a quiet, easy-going young man from one of the Southwest Nigerian cities. He graduated from the Islamic University of Madinah in Saudi Arabia. I first met him in 1978 when I went for a first degree in that country. His University was in Madinah while mine was in Jeddah. He left Saudi Arabia after graduating in 1980 and settled down in Nigeria following a one year compulsory national service to the nation. In his plan, Akram did not want to work for anybody. His ambition was to be a big merchant of automobile and electronics. However, since there was no ready-made capital with which to start off such a business, he decided to take a short cut, typical of Nigerian style and he found Saudi Arabia, the country that funded his University education, as most suitable for such a dirty business. Thus, he embarked on his first illicit ‘business trip’ to the country of his Alma Mata in 1981.

    It was on my way back to school from a summer holiday of the same year that I met him at the Murtala Muhammed International Airport (MMIA), Lagos. After embracing and exchanging pleasantries, we decided to sit together in the aircraft (of the then Nigerian Airways) in order to have a chat on the good old days and our expected future. Thus, from Lagos to Jeddah (a journey of five and a half hours), we really chatted to our fill. Then it was as if we had not spent one hour when we arrived at King Abdul Aziz Airport in Jeddah after five and a half hours.

    Youthful dream

    As bachelors, we discussed various issues ranging from marriage, bearing of children to monogamy and polygamy as well as family structure. We gossiped on the political trend in our country as championed by the then ruling party, the National Party of Nigeria (NPN). We compared Nigeria’s pace of development with that of Saudi Arabia and concluded that our government had neither focus nor plan a situation which made Nigerian youths abroad feel like orphans.

    We also talked about world peace, the then cold war between the Western Capitalist World championed by the United States and the Eastern Socialist Block championed by the now defunct Union of Soviet Socialist Republic (USSR) and the future of Islam in Africa and the Middle East. We analysed the Middle East crises and the role of the two opposing world powers in those crises. We also veered into Nigeria’s micro economy by discussing the role of small and middle scale businesses in our country compared to those of other countries with similar status like Malaysia, Indonesia, Brazil, Singapore, India, Pakistan and Egypt.

    Without gazing through any crystal ball, we concluded that with no middle class in place, our country might have no hope except through an accidental miracle. We also reviewed the use to which Nigerian oil was put vis-a-vis that of Saudi Arabia, Libya or Algeria. On this, we concluded that oil in Nigeria was a blessing from Allah which the country’s ruling class turned into a curse. But we were not experienced enough to suggest tangible solution.

    Thus, in that long conversation which touched virtually all issues affecting the corporate life of Nigeria and her citizens, we agreed on some and disagreed on some. However, we were satisfied to have delivered our minds of their pregnancies if only to broaden our horizon.

    Point of departure

    On arrival at the King Abdul Aziz International Airport in Jeddah, my friend quickly dashed into the toilet and requested me to help push his baggage to the security desk for checking. He promised to join me shortly. It was almost my turn for security check before an instinct gingered me into consciousness. For more than 30 minutes after he entrusted his baggage to me and went into the toilet, my friend did not resurface. Something just told me to abandon his baggage as I was approaching the checking desk and I did. My own baggage was checked and I went out of the arrival hall to wait for him at the taxi garage. After about one hour of waiting and Akram did not surface, I decided to proceed to my hostel where he was to pass the night in my room as we had earlier agreed.

    Breaking News

    While still expecting him in my hostel, the electronic waves throbbed with breaking news. The Saudi Television reported the arrest of a Nigerian who smuggled drugs into the holy land. His name was ‘Akram’. That was at 9pm Saudi local time. We had arrived in Jeddah at about 9.00am that day. About one hour after the breaking news, my friend was brought to the glare of the nation through the tube and paraded on the Saudi national television as the suspected culprit in the illicit drug trafficking. That was one of the most frightening moments of my life. Akram wanted to be rich and I was to pay the cost of his richness.

    Rumination

    What would have happened if I had not heeded the warning of my instinct? Who could have imagined that a seeming gentleman like ‘Akram’ would ever think of trafficking in drug for whatever reason? If I had been caught with Akram’s baggage, what explanation could have exonerated me? Those were some of the questions that immediately ran through me like milk through water and changed my mind about sentimental friendship with people, no matter how innocent they might look. There and then, I decided never to assist anybody again in carrying his or her baggage while on a journey.

    After about three months of trial, Akram was sentenced to fifteen years in jail. He was lucky that drug trafficking at that time in Saudi Arabia had not attracted death as punishment. If it were now, the punishment would have been death sentence by beheading. I was also lucky that at that time the Saudi immigration authorities had not adopted the use of secret camera to monitor passengers.

    Prison for reformation

    For 15 years thereafter (from 1981 to 1996), Akram remained behind bars languishing in Saudi Arabian prison as an inmate among criminals as he anxiously expected to be let off the hook one day. But one good thing about Saudi Arabia as a country or any other Islamic country for that matter is the concept of reformation which imprisonment entails. Inmates are not just imprisoned as punishment for crimes they are also prepared for a better post-prison life and re-orientated for better world outlook.

    Besides, prisoners are paid a specific amount of money daily for their labour in prison. And that gives them hope of reintegration into the society after leaving the prison. Such money is kept in a special bank account opened for them. The total amount is paid to each inmate after his or her prison term.

    Thus, when Akram left the prison in 1996, the post-prison money paid to him by Saudi government became his main lot in life. He was deported to Nigeria but not without that prison labour reward that became his capital for a poultry business. Thus, within a couple of years thereafter, he had become a big poultry farmer but whether or not he learnt any lesson from that incident is another matter.

    Qur’anic admonition

    Most of the young men and women of today do not seem to believe in crawling before walking. To them, what matters most in their lives is how to quickly get money to spend and not how such money is made. That is the main cause of the high rate of crimes witnessed around the world today and the entailed short life span for those youths. In Qur’an, Chapter 43, Verse 32 quoted above, Allah had warned Muslims against desperate accumulation of wealth over 1,400 years ago even when desperate quest for wealth was unfashionable. However, the refusal by today’s youths to heed that warning and the aggressive greed of the privileged elders in power constitute the main cause of restiveness and insurrection around the world today.

    In Islam, desperation for accumulation of wealth is prohibited because it encourages a focus on the end result rather than the means and its entailed immorality. In the past decades, Nigeria had sunk so deep into the valley of corruption that no one cared to ask about the source of any wealth even as corruption became the taproot of Nigeria’s tree of existence. Now, with parents, teachers and even legislators getting so desperate to become rich even right before their pupils and children what future is expected for those wards?

    Parochial wealth estimation

    Desperation is not what fetched Nigeria the enormous oil wealth of today. If desperation ever had any role to play in accumulating wealth, perhaps Nigeria would have long become a country in penury. This is because people who were more desperate in this same country and had lived and died some centuries back would have discovered this oil wealth and they would have exhausted it long before our own generation. But in consonance with the above quoted Qur’anic verse, Allah deliberately preserved it (oil) for our own generation for a reason best known to Him. Yes, oil may be the source of wealth at this time it is surely not the last source of wealth in this country.

    There are other sources of wealth preserved for the future generations which no desperate ‘hawks’ in this generation can discover. Those who see oil as the climax of wealth and want to own its control or die for it should engage in a rethink. You can only have the privilege of presiding over the wealth of a nation for a while and not for all times. The experience of some past regimes in Nigeria should serve as a sufficient lesson. And those in government today should also note this very well. The privilege of the past did not extend to the present and that of the present will not extend to the future. Every era is a transit. And every transit has a term.

  • Where are the Muslims?

    Where are the Muslims?

    Preamble

    It may not be strange to say that the similitude of Islam and Muslims is like that of a snail and its shell. They share a common destiny and remain as inseparable as the sun and its beaming light. None can afford to part with the other without dire consequences. Today, as the world’s fastest growing religion, Islam has a population of about 2.7 billion adherents. This means that one in every four human beings on earth is a Muslim. But in concrete terms, where are those Muslims?

    What is Islam doing today?

    Islam totally personifies the divine legal theory that sustains the magnificent grandeur of the universe. That theory is fully embodied in the Qur’an. Muslims, on the other hand, stand as the agents who are supposedly showcasing the norms of Islam. Without Islam, there would have been no Muslims. And without Muslims, Islam would have remained a permanent abstraction randomly tapping the imagination of mankind. This brings a vital question to one’s mind: where is their meeting point?

    Long before the Almighty Allah informed the Angels of His intention to create man, Islam had been in existence. And contrary to the misconception of many uninformed elements, Islam (meaning peace) had been in place before the creation of man. It was the harmony that held all the pre-Adam elements together in a perfect co-existence. Without that harmony, the primogenitor of mankind would not have found a peaceful abode in the Garden of Eden. Thus, the unification of peace and man came to promise the continuity of the universe.

    Ironically, however, the world of Islam, especially in contemporary times, has turned a new phase at the instance of its adherents called ‘Muslims’. And with that new phase, the falconer seems to have been estranged by the falcons. Muslims, like the shell of a snail are found everywhere but without Islam. And the latter, as long prophesied by the Messenger of Allah (SAW), is rapidly becoming an orphan.

    Now, Islam is like a snail without its shell. If that great religion is vividly and effectively present in any part of the world today, it is in the West. And that confirms the fact that effective quality rather than idle quantity is what Islam needs to thrive as a divine religion.

    Islam in the West

    Muslims in the West are not merely facing a day to day war, they are permanently living on the battle ground. All the raging wars against Islam today, as in the past few centuries, are from the West. And the arsenal used by the West to execute those wars is funded directly or indirectly by Muslim countries.

    There are about 23 Muslim Arab countries mostly in the Middle East and North Africa. These countries together control one fifth of the entire wealth in the world because of the enormous natural resources with which they are endowed. But in their quest for security other than that of Allah, they entrust virtually all their endowed assets to those who are waging war against Allah. More than 90% of the Muslim Arab wealth is invested in the West or kept in Western bank accounts in the name of foreign reserves. A major chunk of those assets is not only used to fight Muslims in Afghanistan, Iraq and Palestine, it is also dished out as loan to poor African countries at throat-cutting interest rate in the name of London and Paris Clubs.

    And when those Western oppressors want to manipulate African mentality to their own advantage, they bring to Africa some pittance as grants, foundations and scholarship out of the profit they made from Muslim Arab money kept in their custody. This is to create the impression that they are friends of Africans. Yet, when the beneficiaries of such largess try to show gratitude, they (the oppressors) come out in their true colours by dictating certain terms and conditions which may fetter those beneficiaries to the stake of indebtedness. It should be noticed that Western largess flows to Africa only when military attacks on Muslims in some other parts of the world are raging or about to rage. The largess is a sort of Greek gift with which to gag the innocent Africans and thereby prevent them from joining their brothers and sisters in condemning such attacks. Thus, the Westerners strangely serve as proxy for Muslim Arab philanthropy.

    Disunity of Muslims

    Today Muslim Arabs are so disunited, disorganised and Islamically disorientated that they cannot even cooperate among themselves to confront a common problem. Rather than jointly solving a common problem, some of them prefer to team up with antagonists to fight their fellow Muslim brothers.

    That is what happened during the Iranian revolution in 1979 when that country was seeking to liberate self from the Western imperialism imposed on her by Shah Pahlavi on behalf of the United States. Rather than cooperating with Iran to rid the region of imperialism, what the neighbouring Iraq did with the support of other Arab countries was to take advantage of the then prevailing situation to attack Iran on behalf of America using the weapons freely supplied her by the latter. The devastating war which ensued from that attack lasted for eight sorrowful years before the aggressor called for peace having realised the impossibility of winning the precipitated war.

    Not long after that, the same Iraq was instigated by America to invade Kuwait as a compensation for her military losses in the war with Iran an incident that caused the 1991 Gulf war which was waged by some American led Western allied forces against Iraq. And, ironically, in that war, Egypt, a fellow Muslim Arab country was found on the side of the European allies that bombarded Iraq and killed Muslim women and children in their thousands. Egypt’s gain in the war was a debt relief from America to the tune of $20 billion.

    Why Muslims Countries are Disunited

    For a long time, there was no love lost between Egypt and Libya while Hosni Mubarak and Muammar Gaddafi held sway as Heads of both countries. The neighbourhood of Algeria and Morocco has for decades been hotter than a battle ground between two sworn enemies. There is also a permanent cold war which began in the 1930s between Saudi Arabia and Yemen which is still ongoing till date. Syria and Iraq continue a diplomatic cat and mouse game as they do not realistically see eye to eye though they are both Arab countries. Iran, the only non-Arab (Persian) country in the Gulf sub-region, is constantly suspicious of her neighbouring Arab countries because the latter have tacitly ostracised her on the basis of racial discrimination and denominational ideology. Yet, they all subscribe to Islam and claim to be Muslim countries.

    Turkey for Instance

    In her own bid to imbibe the so-called Western civilisation, Turkey, an Islamic but non-Arab country, has voluntarily enslaved herself to secularism, a notion imposed on her in the 1920s by Mustapha Kamal Ataturk and which became entrenched in the country’s constitution. It must be recalled that Turkey, with her 89% Muslim population was the last seat of Islamic Caliphate which ended in 1924 at the instance of Ataturk. In all these, where are the Muslims?

    Here in Nigeria, the situation is by far worse. Mosques, which Prophet Muhammad (SAW) established as the permanent axis around which all Muslim activities must rotate, have been totally reduced to the level of meeting for Salat alone. Only very few Mosques have the necessary facilities useful for the Ummah. Even bank accounts are not considered necessary as the Imams and members of the Mission Boards of most Mosques act as unofficial treasurers in which capacity they pocket the money collected daily or weekly. Against the Prophet’s prescription, most of our Mosques are without libraries or study rooms where the young ones can take advantage of computer and internet to be thoroughly educated. It does not bother those Imams that only few Muslim youths come to worship in the Mosques. What bothers them is the absence of rich Muslims who can donate remarkable sums of money to the Mosques for them to pocket. Against Islamic prescription, those Imams are the collectors, the distributors and the recipients of Zakah to the detriment of the Ummah.

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    Where are the Muslims?

    In Nigeria

    In Nigeria today, only a few Muslim schools are good enough to compete with schools established by non-Muslims. Even those few especially in the Southwest, are mostly without Mosques since the motive of establishing them transcends religion. For instance, the very first secondary school in West Africa (Ahmadiyyah College, Agege, Lagos), established in 1948 by Ahmadiyyah Movement in Islam (now Anwarul-Islam Movement of Nigeria) had no Mosque for many decades after its establishment. Yours sincerely was a teacher of Arabic and Islamic Studies in that school for five and a half years between 1971 and 1976. And all efforts to encourage its founders to provide a Mosque for the students yielded no result. It is doubtful that the school had any Mosque until it celebrated its 60th year anniversary recently. The same is the case with Ansar-ud-Deen College, Isolo, Lagos, which was established in 1954 purportedly for the purpose of giving Muslim pupils Western education with Islamic orientation which those pupils could not get in Christian schools.

    Whereas, the first building to be erected on the site of any Christian school is a chapel where pupils can worship in Christian way, this is not the case with Muslim schools. As a result, most of those pupils have often had cause to regret attending Muslim schools even years after their graduation. If the situation was that bad in the past and there is no plan for the future where are the Muslims?

    The Three Oldest Universities

    Three Universities are known to be the oldest in the world today. The three are situated in the Arab world confirming that the idea of University education got to the West from the Muslims. They are Al-Azhar University in Cairo, Egypt, Qarawiyyin University in Fez, Morocco and Zaytuniyyah University in Tunis, Tunisia. All of them, established well over one thousand years ago, started in the Mosques. Yet, they were all preceded by the University of Cordoba, also established by the Arab Muslims, which was the very first University established in the world. The objective of starting each of them from the Mosque was to enable students know that whatever knowledge they acquired ought to be used in the service of Allah.

    The Christian West which borrowed from the Muslims the noble idea of using a religious sanctuary as the foundation of a school or a University saw the sense in it and made it the cornerstone of their educational orientation. Thus in Nigeria and elsewhere, no Christian Missionary schools are established without the Church serving as their first buildings.

    What is the objective of the Muslim schools established in Nigeria without Mosques? In Islam, Mosque is not for Salat alone neither is it to be headed by half-educated elements in the name of Imams. It is rather an all-encompassing centre for all aspects of Muslim lives. For Muslims, Mosque is a school, a library, a hospital, a trade centre, a bank, a Parliament and a court of law. To limit the Mosque to prayer alone therefore, as done in Nigeria is a terrible disservice to Islam and the learning children.

    Muslims who worship regularly in the Mosque must have something to gain economically, socially, politically and perhaps medically besides the rewards accruing to them from observance of Salat. Coming for congregational prayers five times every day without any temporal gain does not help the course of Islam. Islam is about temporal and spiritual lives and not about the latter alone. The Mosque ought to have endowments for widows. It ought to have scholarship programmes for orphans and indigent pupils. It also ought to have empowerment programmes for the jobless. And those employed as Imams and other officials in the Mosque ought to be well treated in terms of remunerations and social welfare if only to avoid corruption and redundancy. But how can all these be provided when the Mosques themselves are erected without any plan for the future?

    Praying for Christians

    On my way back from Hajj in 2007, I was asked to pray for a Christian who spent a lot of money to renovate the Mosque at the Hajj camp of the Murtala Muhammed Airport, Ikeja, who felt irritated by the nonchalant attitude of Muslim moneybags to the ramshackle state of that Mosque. And shortly thereafter, I also observed Jum’at prayers at the University College Hospital (UCH), Ibadan Mosque where the Imam told the congregation that the renovation of that Mosque had just been completed by a concerned Christian. Yes, it is true that some Muslims also build or renovate Churches but the fact remains that there is no much negligence on the part of Christians towards their Churches as there is on the part of Muslims towards their Mosques. Where then are the Muslims?

    Islam and Christianity in Nigeria

    Islam preceded Christianity in reaching the shores of Nigeria by about 500 years. The one came in the 11th century. The other came in the 16th century. Yet the gap, in terms of education and development between both today, is as wide as that between the rise and the set of the sun. If this is blamed on colonial rule, on what should failure of Islamic education be blamed? The Qur’an which embodies the language of Islamic worship is known to have been translated into about three Nigerian languages (Hausa, Yoruba and Igbo). And this is the best that has been done so far, in about 1000 years, to make that sacred book understandable to millions of Nigerian Muslims. Arabic is not a Nigerian language. Most Muslims do memorise some contents of the Qur’an and recite them when observing Salat without comprehending what they are reciting. If majority of the adherents of a religion are tied to illiteracy and ignorance, how can such a religion be understood? The Bible which came to Nigeria 500 years after the arrival of the Qur’an has been translated into at least about thirty-three Nigerian languages and further efforts are being made to do more. Where are the Muslims?

    Reminiscence

    In the 1960s and 1970s, most of the praise-singing records especially in the Southwest were waxed for Muslim money bags who hardly saw any need to train their children. And that was the time when non-Muslims would rather starve than see their children out of school. Today, the result speaks clearly for itself. Currently, it is said that over 12 million Nigerian children of school age are out of school. There are no readily available figures to delineate their percentages on the basis of religion. But one can be sure that over 80% of them will be Muslims. If this is the case in the  age of internet, why won’t Muslims form majority of the touts in motor parks as well as hooligans working for politicians? And there is a glaring evidence for this especially in Ibadan, the political Centre of Yoruba nation where hooliganism is taken for a calling. Where are the Muslims?

    Islam and Economy

    After many years of struggling to get their economic and political rights failed, the people of the Southsouth of Nigeria discovered the enormous power of the media to win wars where weapons are helpless. They quickly invested heavily in it. And today, they are not only getting their rights on demand, they are also compelling the entire world to listen to them as they now control the Nigerian media which they use to command the attention of all and sundry. Where are the Muslim media after the demise of Bashorun MKO Abiola and the dysfunction of his Concord newspaper? Rather than investing in the future, an average Nigerian Muslim moneybag prefers to eat his cake now with the hope of having it again later. Rather than fighting a just course, an average Nigerian Muslim elite pitches his tent with the wrong camp just to gain a momentary benefit. Or how does one place a situation like that of Abiola who, as a matter of right, contested Presidential election and won only for fellow Muslims to gang up and annul the election unjustifiably and thereafter clamped the winner into prison as a transit towards his final demise? That ugly episode is the seed of cord of the bitter political fruit that Nigerians are now being forced to eat and swallow.

    If there is any hope for the future of Islam in Nigeria, the focus must be towards the West. And that is in confirmation of Prophet Muhammad’s prophecy of over 1,400 years ago when he said that one of the signs of recognising the nearness of the ‘Last Day’ was for the sun to start rising from the West. The sun which the Prophet meant was not the physical one. That sun is ISLAM. And we have started to see its rays coming from the West where the divine religion is growing geometrically and recognised as the fastest growing religion in the world today. It could not have been otherwise. Islam is a religion of knowledge. It takes only the knowledgeable to recognise it as such. The West today is the home of knowledge and not a mere region of literacy. That is why it takes a religion of knowledge to be fast spreading among knowledgeable people.

    However, for those of us who are so much concerned about the situation of Islam vis a vis the Muslims especially in Nigeria today, there is consolation. That consolation is from Allah who says in Qur’an 15 Verse 9 thus: “It was ‘We’ who revealed the Qur’an and it is ‘We’ who will certainly guarantee its preservation”. We pray Allah to wake up the Muslims from their slumber so that in the future, our grand children will have no cause to repeat the question: “Where are the Muslims?

  • Implications of CBN’s bank recapitalisation policy

    Implications of CBN’s bank recapitalisation policy

    As part of the strategy to achieve President Tinubu’s vision of making Nigeria a $1Trillion by 2025, the Central Bank of Nigeria under the leadership of Mr. Olayemi Cardoso, has rolled out a policy to recapitalize the Nigerian Banks in the next 2 years, by introducing new minimum capital requirements for banks of all categories. This policy will further strengthen Nigeria’s financial system by pegging the minimum capital base for commercial banks with international authorization at N500 Billion. In addition, the new minimum capital base for commercial banks with national authorization is N200 Billion, while the new requirement for those with regional authorization is N50 Billion.

     Accordingly, after the recapitalization, the top 5 Nigerian banks could have a combined paid-up capital/ share capital of N2.5 trillion at N500b each. It is worthy of note that based on the latest financial results of the top 5 Nigerian Banks, the current combined capital of the 5 top banks is about N1.3 trillion, i.e. slightly above 50% of the targeted capacity. The recapitalization will essentially improve the resilience of the Nigerian Financial sector which is key to economic development.

     The recapitalisation policy by Mr. Cardoso led CBN as he tries to tidy up our monetary policy in the bid to turn around Nigeria’s economy, is commendable. This is in addition to the stabilization of the Naira achieved so far from N1,950.00 to about N1,100.00 in the past 2 months.

     Therefore, the timing for re-capitalization is right, given that the last recapitalization was done about 19 years ago in 2005, during the tenure of Professor Charles Soludo as the CBN Governor. The Banks have so far weathered the storm, but in recent years, we have witnessed some stress and fault lines emerging in the Banking sector, based on which some interventions are undertaken by the government to save some corporate governance issues for example at First Bank, about 2 years ago when an interventionist Board of Directors were appointed for the First bank group by the CBN, and also about 1 month ago, the CBN had to intervene to stabilize some Banks by dissolving the board of directors and appointed new executive directors to “oversee the affairs of the deposit money Banks” at Keystone Bank, Polaris Bank,  and Union Bank, which is an indication of some fault lines in the Banking sector.

     Recapitalisation will certainly reinforce the Banking sector and prepare it as a strategic pillar for effective socio-economic recovery and, as a critical support achievement of the $ 1 trillion by 2025. Interestingly, despite the brutal socio-economic headwinds that we face in Nigeria, the Banks are smiling as they declare huge profits year-on-year, therefore the CBN is correct to say that the Banks should recapitalize at this point in time. Let us consolidate the Banks and further institutionalize corporate governance and resilience for the Banks.

     Options available for banks

    Given that none of the top five Banks in Nigeria that even have an international presence, currently has more than N200bn capital base, which is far less than the N500b minimum required per bank, there is a shortfall of about N1.4billion to meet the N2.5tn. The CBN has rightly advised the banks to raise funds through the 3-key means, i.e.; through private placements; mergers, and acquisitions whereby the Banks can explore partnerships through mergers and acquisitions to consolidate and become stronger Banks as we have seen in the past which was how the likes of the current Access Bank, UBA, Fidelity, etc. emerged. Another option available for the Banks is to re-consider their status as Commercial and re-strategize and consider other segments of the sector. So from a strategic perspective, why not strategise and invest in the regional and/ or sectoral market for better strategic positioning to play and play big, i.e. to become regional Banks or Merchant Banks, or other segments of the Banking ecosystem to play in? In the end, the new policy will tidy up the Banking sector, consolidate the Banks, and make them more competitive, productive, and value-adding to Nigeria’s economy.

      FDI opportunities for the banks

    The recapitalization policy is an opportunity for Foreign Direct Investments (FDIs) to come into our economy. Given that the top 6 banks are churning out huge profits year on year with increased capital and asset bases, suffice it to say that the Banks have healthy balance sheets and good financial and economic outlooks and therefore they will be very attractive to foreign investors. FDIs have a good investment appetite when they see a business with healthy balance sheets, and the prospects are showing a mid-long-term Return on Investment (ROI) outlook. Even though I dare say here that some of us want to know the magic the banks are doing in boasting of healthy balance sheets and profits while the Nano, Micro, Small, and medium scale enterprises (SMEs) and the informal sector are struggling under the vagaries of socio-economic hardships. But that will be a conversation we should have another day because thriving SMEs and the entire informal sectors are critical success factors to economic recovery and the attainment of the N1 trillion economy by 2025, otherwise, the vision will be a mirage.

     Banks should focus on value innovation for sustainability

    I reckon that this round of recapitalization will force the banks to imbibe value innovation and move beyond operational transactional banking to banking that is value-creating and value-adding to the critical and informal sectors of the economy, consequently supporting economic diversification and growth of Nigeria.

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     For instance, the banking sector has been contributing marginally to the Agri sector which is a critical sector to diversifying Nigeria’s economy and a low-hanging fruit for economic recovery while conversely, investing in the Agri will reposition the Banking industry’s strategic growth potential and realization of mid to long term growth and sustainability. All the Banks do not have to be Commercial. There is vision, sense, strategy, and value in focusing on sectoral, regional, and/or market-specific models of banking in an economy like. Nigeria with such huge diverse and viable resources like Solid Minerals, the informal sector, etc. This is why I believe that the Banking industry could grow with the economy organically in Geometric progression because sustainability is key.

     Apart from a few, most of the Agric desks in the Banks have been underperforming because of a lack of broad Agric business strategy and investment-friendly policies. The Banks need to be creative from business continuity and growth perspective because Banks are not insulated from the global and national socio-economic challenges we are facing in Nigeria. So, if they craft their strategy for the Agric sector from a value innovation to support perspective; they will support our teeming youths who have very innovative mindsets, capacities, and potentials. They could support them with the right investment offerings in the entire Agric value-chain; production, quality control,  storage, value-addition, packaging, logistics and supply-chain, inland trading and export, i.e. mid and downstream subsets of the sector; the Agric sector has the potential capacity to provide more opportunities for the youth than even the digital technologies sector in terms of deep and wide multidimensional socioeconomic impacts in Nigeria down to our hinterlands; based on which he Banks can make more income and profits.

    Robust stakeholder engagement to get buy-in

    I wish to draw the attention of the CBN to the criticality of robust stakeholder engagements so as to get the buy-in of critical stakeholders and achieve success. There is a need to manage sentiments and optics from the get-go. For example, in my opinion, the recent movement of some departments of the CBN drew unnecessary criticisms that could have been better managed. The CBN has a lot of work to do in engaging industry stakeholders, citizens, Country Residents/ expats, etc. who are all actually the Bank depositors so that they rest assured that the policies are in their best interests. The stakeholder engagements will also de-emphasize sentiments of regionalism, ethnicity, etc., and direct attention to the laudable, noble, and necessary intention of the Bank recapitalization or any policy of such crucial nature. By doing so, the CBN’s job will be much easier.

     Other expectations of the impacts of the banks recapitalisation

    Some of the expected impacts of the recapitalization, in my opinion, should include better efficiency, customer service, and better competition regionally, and internationally. I also expect that there will be available funds to support the domestic economy by way of loans with lean and reasonable interest rates over more practical timelines to support sectors and markets.

     While I commend the CBN Governor on the positive trajectory they have achieved so far, I encourage Mr. Cardo and his team that sustainability is key. I will put a pause here on this very important topic of our banking reforms in Nigeria, as I intend to make more contributions on the topic in due course. Thank you for reading.

  • BRICS as a platform for economic sustainability

    BRICS as a platform for economic sustainability

    “With each new day in Africa, a gazelle wakes up knowing he must outrun the fastest lion or perish. At the same time, a lion stirs and stretches, knowing he must outrun the fastest gazelle or starve. It is no different for the human race. Whether you consider yourself a gazelle or a lion, you simply have to run faster than others to survive.” ― Mohammed bin Rashid Al Maktoum, Monarch of Dubai and Prime Minister of United Arab Emirate (UAE)…

    BRICS is an intergovernmental organisation comprising Brazil, Russia, India, China, and South Africa. The aforementioned Countries are the fastest-growing world economies, It is worthy of note that China is the second largest economy in the world. The objective of this organization is for strategic partnership and cooperation on investment opportunities, coordinating multilateral policies guided by the principles of non-interference, equality, and mutual benefit. BRICS was founded in 2009 and has since expanded in membership, regional, international, and intercontinental spread, and influence. Egypt, Ethiopia, Iran, Saudi Arabia (though arguably so), and the United Arab Emirates officially joined BRICs on the 1st of January, 2024. BRICS currently has 10-member nations, and according to Bloomberg, about 34 new Countries have expressed interest in joining BRICS. One of the key objectives of the BRICS group is to dominate the world economy by 2050.

     Therefore, it is cheery news to me and a lot of other Nigerians when Nigeria’s Honorable Minister of Foreign Affairs, Ambassador Yusuf Tuggar stated that Nigeria is currently considering the possibility of joining BRICS and that Nigeria has not given up the ambition of becoming a permanent member of the Security Council of the United Nations. The Minister made the assertions during his official visit to Russia around the 6th of March, 2024.

     The BRICS strategy is certainly working as the BRICS countries include major world powers, such as China and Russia, and countries that are major powers on their continent, such as South Africa and Brazil. The group currently has a combined population of 3.5 billion i.e. 45% of the world’s population. It has a combined economy of over $ 28 trillion which is about 28% of the global economy. BRICS countries will also be producing about 44% of the world’s crude oil.

     The Russia-Ukraine war has further divided the world economically with consolation of the BRICS nations as a counter-measure to the globally dollarized economy which is slowly but steadily posing a threat to the US Dollar and certainly the US economy in the mid to long term – it is just a matter of time.

     To de-risk and diversify nigeria’s economy

    Our current economic situation requires that we diversify our options and de-risk our economy from the “choking effect” of the US Dollar. While it is true that the US Dollar will remain a globally dominant currency of trade, the current global socio-economic and political realities clearly call for forward-thinking countries to diversify their options of investment and trade; the growing membership of BRICS is the platform of that diversification.  The earlier Nigeria key into it the better for our battered economy. Let the process begin so that Nigeria will not be left behind as a sovereign nation.

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    In my opinion, BIRCS should be one of the pillars of our international relations and economic diversification strategy. It will not just give Nigeria the freedom of choice and options but it will also give Nigeria leverage in our international relations and economic expansion and diversification initiatives.

     I commend the administration of President Tinubu for clearing the accumulated backlog of $7Billion FOREX of over $ billion that accumulated during the Buhari administration which was part of our economic woes by escalating inflation, even resulting in some diplomatic rows with the likes of the United Arab Emirates, etc. It took the current administration through the Central Bank of Nigeria, nine (9) months to ingeniously clear the backlog.

     Consequently, I am of the strong opinion that going forward, BRICS is an opportunity for Nigeria to be emancipated from the shackles of US Dollars, and will certainly free and hedge Nigeria’s economy from the straight jacket situation with the US Dollars in terms of trade, investment, and international relations.

     As the giant of Africa, Nigeria’s membership in the BRICS is long overdue. Let us not delay too much as we did with the AfCFTA membership, especially given the fact that we have to lay the foundation, the pillars and building blocks, and frameworks, the time is now before we start running against time. Given our currently dire economic situation, we should explore all available viable options to receive our economy and position it in a growth and development trajectory.

     Points for Nigeria to note

    •Top global oil producers like Saudi Arabia, Russia, Iran, and United Arab Emirates are already members of BRICS with Saudi Arabia as the 2nd largest world oil producer behind the United States of America, Russia ranked 3rd, China is 6th, Brazil is 7th, the UAE is ranked 8th and Iran is 9th, i.e. 6 of the 10 top global oil producers are in BRICS. This implies that BRICS member countries currently control almost 50% of the world’s oil production. With Oil and Gas still remaining the critical economic driver, and it will remain so for a long time, it is essential that Nigeria seize the moment to be part of this increasingly important group.

    •New data from the National Bureau of Statistics (NBS) showed that FDI in the country fell by 33 percent in 2022. This is more worrisome due to the fact that the trajectory has been dwindling since 2015, as foreign direct investment (FDI) to Nigeria has plunged to $468.91 million, the lowest in at least nine years, according to official data. This has been having dire consequences on socio-economic growth. BRICS is a veritable platform for attracting significant FDIs.

    •The way forward for Nigeria, is to as a matter of priority improve and upscale our competitiveness in terms of our critical infrastructure i.e., intermodal transportation network; power; logistics and supply chain platforms i.e. the airports and the entire aviation value chain; seaports and the entire maritime value chain, land borders; products value addition and processing.  We also need to improve the state of our not-so-competitive manufacturing and industrial sectors that are struggling under multiple global socio-economic variables, it is a major red flag. Joining BRICS will surely support Nigeria in this regard

    Foreign policy and geopolitics

    Global and sub-regional peace and economics will continue to be impacted by geo-politics. Geo-politics is significantly influenced by the foreign policy direction of the United States of America and its allies and the reactionary foreign policies or initiatives by China, Russia, and other Countries.

    Certainly, the Russia- Ukraine Imbroglio has ravaged the global economy almost resulting in a global recession with devastating impacts on food security, supply chain disruptions, oil supply and pricing, energy supply to Europe, and the resultant effect of the cost of living crisis, etc.

    In the case of Russia, President Vladimir Putin is not likely to shift ground but rather refine his mid to long-term strategy because so far, his strategy has been working more for him than the US and EU strategy for Ukraine. If the Russia-Ukraine imbroglio continues unabated without a change in the political strategy disposition, it will continue to impact negatively on global and national economies.

    Based on the aforementioned, Nigeria’s over-arching national strategy has to change especially with regard to the economy, foreign policy, Trade, and Investment with foreign policy as a nexus for international Trade

     Global economic gloom

    • According to the World Bank; the current global economic trajectory is not looking good based on geopolitics, and climate change which has impacted food security, infrastructure, human capital, etc.

    • The second half of 2024 will be the slowest half-decade of GDP growth in 30 years!

    • Escalating geopolitical tensions could create fresh risks for the world economy. “Meanwhile, the medium-term outlook has darkened for many developing economies amid slowing growth in most major economies, sluggish global trade, and the tightest financial conditions in decades.”

    • Cost of borrowing for developing economies—especially those with poor credit ratings—are likely to remain high with global interest rates stuck at four-decade highs in inflation-adjusted terms.

    • Global growth is projected to slow for the third year in a row—from 2.6% last year to 2.4% in 2024, almost three-quarters of a percentage point below the average of the 2010s. Developing economies are projected to grow just 3.9%, more than one percentage point below the average of the previous decade.

     Conclusion

    What should remain etched in our minds as Nigerians, especially the current administration under the leadership of President Tinubu is the fact that based on the aforementioned realities and projections; it will be a good de-risking economic strategy for Nigeria to be part of BRICS as a “shock absorber” for sustainable economic growth in an increasingly polarised world.

  • The next 10 days

    The next 10 days

    At the beginning of this sacred month, 11 days ago, an analysis was done in this column classifying the 30 days of Ramadan into three segments. The first segment was said to contain the first ten days during which the blessings of Allah come to the faithful Muslims freely and in abundance. Except for meeting that segment with faith and good intention, there is no working for the blessings therein. That segment ended yesterday paving way for the second segment that begins today.

    As from today, fasting Muslims, all over the world, will start working for the master key to their final destination (Al-Jannah) through forgiveness. That is the essence of this second segment of the month of Ramadan. During this period, Muslims are expected to intensify worship (Ibadah) by spending their days and nights seeking Allah’s forgiveness and by chanting Istighfar. But such forgiveness is neither automatic nor free.

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    Usually, however, there are conditions attached to it. One of such conditions is that one must admit his misdeeds and repent on them. The second is that he should voluntarily and genuinely seek forgiveness. And the third condition is to resolve never to return to such misdeeds again. To seek Allah’s forgiveness during that time, a Muslim should follow the guidance of Prophet Muhammad (SAW) on prayers as the Prophet was reported to have said that “if you want to speak with Allah, make your request on prostration. And if you want Allah to speak with you recite the Qur’an”. No one who abides by the above conditions and follows the Prophet’s counsel on prayers will ever be disappointed. Allah is both promising and fulfilling. He never reneges on His promise. In Qur’an 2:186 He promises thus: “…when my servants ask you (Prophet Muhammad) about me, tell them that I am very close to them. I answer the prayers of whoever seeks my favour if he prays to me (without any intermediary). So, let them expect my favourable response and trust in me so that they may be rightly guided”

    The second ten days period of Ramadan is not just to consolidate on the blessings of the first ten days. It is also to prepare the fasting Muslims for the last ten days when they are expected to be fully liberated from the evil machinations of Satanic forces. For genuinely dedicated Muslims, in this sacred month, the prayer for that liberation is a sine qua non.

    RAMADAN KARIM!