The Nation Newspaper

Category: Discourse

  • Fed Govt giving major roads prime attention, says PTD chair

    Comrade Salimon Akanni Oladiti, national chairman of Petrol Tanker Drivers (PTD) branch of the National Union of Petroleum and Natural Gas Workers (NUPENG), in this piece, pays tribute to the Federal Government’s drive to develop major roads aimed at correcting past deficiencies in our pursuit towards a better society.

    The socio-economic development and subsequent economic growth of any nation is strongly linked to its better state of infrastructure. Sadly, there had been massive and annoying deficiency of key infrastructure in Nigeria for decades now. Of great importance to an average Petroleum Tanker Driver is road infrastructure, the brunt of the deficiencies in this infrastructure is mostly felt by the members of Petrol Tanker Drivers (PTD) who traverse the length and breadth of the country to ensure supply of petroleum products for private, domestic, commercial and industrial use.

    PTD had complained bitterly, through various media to every national government in power, on the need to address the challenges faced by its hardworking members faced with hazards occasioned by deplorable roads.

    It is regrettable to say that some of our members suffered permanent disability, while some suffered not only loss of products they haulage but became victims of untimely death. The officials of Federal Road Safety Corps (FRSC) could attest to this, even with verifiable and accurate statistics.

    However, it would also be uncharitable for us if we notice significant improvement in infrastructure development from Rail to Ports, Power and Roads and refuse to announce it or show some measure of appreciation. With no shred of doubt, this administration under the leadership of President Muhammadu Buhari has profoundly shown strong commitment and determination to complete both ongoing and abandoned projects of previous administrations.

    Honestly, when President Buhari appointed Mr. Babatunde Raji Fashola (SAN) minister of Works, Power and Housing, I knew he would swing surprises; we can all see things are improving in all the sectors he is currently superintending.

    Today, there is no state in Nigeria where the Federal Government is not executing one road project with the aim of bringing respite and succour to the people. It is not a mistake or an act of sycophancy to overtly say the country’s Economic Recovery and Growth Plan (ERGP) is for real in the interest of Nigerians and for the records our members are living proof.

    Specifically, the Ministry of Works, Power and Housing has begun the inspection to help ascertain the integrity of 11.8-kilometre Third Mainland Bridge, as preparations are ongoing for its full maintenance and repairs. This deserves commendation, as this is the longest of three bridges connecting Lagos Island to the mainland, a city adjudged as the commercial nerve centre of Nigeria.

    Commendably, this effort is a sheer demonstration of the ministry’s commitment, determination vision, foresight and political will to impact on the lives of the citizenry.

    Other highly trafficked roads, which are presently opened to construction or rehabilitation by this government are; Second Niger Bridge at Onitsha; construction of the dual carriageway of Abuja-Abaji-Lokoja (Sections I-IV) in FCT/Kogi State; construction of the Kano-Maiduguri dual carriage Road (Sections I-V) in Kano/Bauchi/Yobe/Borno states; and the rehabilitation of Enugu-Port Harcourt Dual Carriageway (Sections I-IV) in Enugu/Abia/Rivers states.

    Similarly, the ministry is as well not leaving any stone unturned in ensuring rehabilitation/reconstruction of Lagos-Sagamu-Ibadan Expressway in Lagos/Oyo states; construction of Loko-Oweto Bridge in Nasarawa/Benue states; reconstruction of outstanding sections of Benin-Ofosu-Ore-Sagamu Road in Edo/Ondo/Ogun states; rehabilitation of Odukpani-Itu-Ikot Ekpene Road section I: Odukpani-Itu Bridgehead; and rehabilitation of Ilorin-J’ebba-Mokwa Road.

    The Petrol Tanker Drivers branch of NUPENG is giving these projects mention not for any political reasons but to encourage the ministry to do more. PTD also urge all approving authorities and those saddled with release of capital not to starve concerned ministries with necessary approvals and in situations where extra funds are needed, the National Assembly should not hesitate to approve supplementary budget when call upon to do so for public interest and good.

    PTD is specifically delighted to emphasise that the government has prioritised infrastructure development as key in its development agenda for the country. It is also pleasing to see that government has pledged to construct new and comprehensive network of rural access roads and trunk roads to serve the remote and urban areas, safely and efficiently. This will ultimately mark yet another milestone in the development of the country. I commend this development, seeing that this government is walking the talk and achieving its campaign promises.

    The level and quality of transportation systems in any area are of crucial significance in influencing political, economic and social progress, and these must be considered at every stage of local, national and regional development planning. Without good roads, it is difficult to have socially inclusive development interventions. These include improved accessibility to social infrastructure (schools, churches and health centres), increased access to education and health facilities and improved social interaction and mobility. These are important for social and economic development, improved access to markets through the reduction of transport costs and improvement of the marketability of perishable goods through timely and cheaper transportation.

    On the supply side, direct benefits of improved road networks include reduced vehicle operating costs, savings in travel time, reduced accident costs resulting from the upgrade of the proposed roads, possible savings in road maintenance costs (because roads are bound to withstand harsh weather if they are well-maintained). The APC led government must be commended for this success story. And for us who are key stakeholders in the country’s petroleum downstream value chain, we cannot but express our unalloyed joy for this laudable development at a time like this.

    On our part as PTD, we would never renege in entrenching safety on the roads by eschewing unhealthy traffic behaviour, this we would persistently sustain through periodic training for our members and at no time would we compromise minimum safety standard or any other act that contravenes the high way code. PTD, although has no affiliation with any political party in Nigeria, deemed it appropriate to wish the APC-led Federal Government best of luck and success while it drives the country with purpose and vision that would be beneficial to all.

     

    • Comrade Oladiti wrote from Abuja

     

     

  • IYC praises Seifa for releasing DSS detainees

    The Ijaw Youth Council (IYC) Worldwide yesterday applauded the Director-General, Department of State Sevices (DSS), Matthew Seifa, for releasing detainees held in the agency without trial.

    IYC called on the Presidency to confirm the appointment of Seifa and make him the substantive head of DSS.

    The Nation reported exclusively that the DSS was in the process of releasing suspects it detained without trial in Abuja.

    Seven of the suspects, who were arrested in 2016 in Bayelsa State, were brought to Yenagoa at the weekend.

    They were brought from the DSS Headquarters in Abuja to the Office of the DSS in Yenagoa and released to their family and friends, who milled around the agency’s office.

    Some of the suspects were shedding tears of joy in the warm embrace of their friends when they marched out of the DSS facility.

    The suspects looked unkempt with overgrown bears, rough skin and dirty clothes.

    One of them, Clinton Ohaigbofa, confirmed that suspects held without trial were being released across the country.

    Clinton, who hails from Ebedebiri in Ogbia Local Government, attributed the development to the disposition of the DSS boss.

    He said they were held in underground cells in Abuja for over two years, adding that they suffered greatly.

    The  IYC, in a statement signed by its Secretary-General, Alfred Kemepado, hailed, describing him as a true democrat.

    Kemepado said the release gave hope and value to democracy.

    He urged Seifa  to look into the case of high profile detainees like El-zazaky, leader of Shiites and dispense fairness to all.

    “IYC has spoken to colleagues from other ethnic nationalities and most have expressed their confidence that Mr. Seiyefa will tackle the humongous security challenges facing Nigeria today; from Boko Haram to the herdsmen palava and to recent activities that threaten our democracy”.

    Kemepado thanked  President Muhammadu Buhari and Vice-President Osibanjo for considering a competent son of the South to head the DSS.

    “This is positively contrary to our earlier beliefs that the President disrespected us. We want to appeal to President Buhari to confirm Seifa’s appointment as we are willing to work with him and others to sustain the peace in Nigeria and in the Niger Delta, especially.

    “We call on all groups to continue to support Seiyefa with information and prayers for the good of all. The  IYC appeals to Seiyefa not to yield to the antics of politicians but to uphold the values of his service and uphold our growing democracy”, he said.

  • Ugborodo : Community inaugurates reconciliation committee

    The Ugborodo Community Management Committee (UCMC) has inaugurated an ad hoc peace and reconciliation committee to pilot the process of reabsorbing estranged members of the community.

    The 11-man committee, chaired by Mr Mike Okoturo, has the responsibility of finding ways to bring sacked members of the community back, investigate the causes of the recent crisis, where many died.

    Acting Chairman of UCMC Mr Austin Ajurenmisan, reading from a text he and the  Secretary, Dr. Ayo Ayomike, signed, urged the committee to discharge its duties “fairly, but without fear or favour”, noting that it will sit Thursdays and Fridays, starting from September 6 to 28.

    According to UCMC, its terms of reference include “determine the number of persons exiled from the community as a result of the recent crisis and their degree of their involvement.

    “Put a mechanism in place by which the exiled persons are reabsorbed and reintegrated into the community. Prescribe appropriate sanctions and deterrent measures as a way of avoiding any future occurrence.

    “Look into existing or potential feuds, disagreements or disaffections in the community, with a view to nipping them in the bud and eventually reuniting the entire community”, the UCMC said.

    Responding, its Chairman, Okoturo, said he had seen many crisis in Ugborodo community, of which none yielded anything positive.

    He said “our community has become synonymous with persistent fights and crisis and this has become very shameful. We will do our best to deliver on this mandate and ensure lasting peace comes to Ugborodo”.

    Others include Prince Perry Atete, the alternate-chairman; Mr Michael Lodge, who is the Secretary. There are eight other members of the committee.

     

  • Technical & Vocational Education as Imperative for Youth Empowerment

    Text of a Lecture delivered by Edo State Governor, Mr Godwin Obaseki, at the 2018 National Alumni Lecture of the University of Ibadan Alumni Association, in Trenchard Hall, Ibadan, on Friday, August 3, 2018.

    It is indeed a great pleasure to return to this great institution, an intellectual haven that molded me in the very best traditions of research, leadership, administration, the arts, understanding of the values of life and the centrality of human progress as the measure of labour.

    I would like to thank the National President of our Alumni Association, Dr. Kemi Emina for the invitation to deliver this lecture today. I acknowledge the outstanding leadership that our Alumni Association has provided to Nigeria and the contributions that it continues to make to the growth and development of the University of Ibadan – Nigeria’s premier university.

    Before I make my comments on the importance of technical and vocational education, please permit me to make some preliminary comments:

    Firstly, the notion of youth empowerment implies a deliberate commitment of   government to involve the youth in the socio-economic and political development of the Nation.  Unfortunately, despite the continuous “youth agenda” propaganda, not much has been achieved since independence even under civilian rule.

    Most of the hundreds of skills acquisition programmes in the country are disconnected from the evolution of the labour market demand as well as the societal evolution of the country. Few states have realized this and are taking steps to develop robust technical and vocational programs.

    The fundamental reasons for this rather low level of youth involvement include policy inconsistency and the lack of a disciplined planning process.  Today, we have an army of unemployed, underemployed and unemployable youths that threaten both national stability and security. We are now faced with the reality of what to do with them and for them.

    Secondly, a response to the youth challenge requires credible leadership. Leadership must, through policy, programmes and politics, critically insert itself into the realities of our young people with an understanding of their needs, peculiarities, expectations and aspirations.

    Such leadership, in collaboration with the private sector should be tasked with the development and implementation of a sustainable roadmap which transcends personalities and regimes.  This establishes a firm basis for sustainability, innovation, mass participation, and development of relevant programs.

    Thirdly, and perhaps most importantly, we have neglected technical and vocational education for far too long.  The discrimination that polytechnic graduates still suffer after graduation is a clear illustration of this situation.  Many technical schools have been converted to regular schools to produce all sorts of “certificates”. Others are simply glorified institutions with nothing technical about them; certainly not in the curriculum, not in technology nor in the faculties, facility and general infrastructure.  In this way, we have gradually lost the vision and mission of producing a cadre of skilled young Nigerians to perform technical responsibilities in government, industry and general services.

    It is no wonder therefore, that many foreign investors bring their own staff using legal and underhand tactics to comply with or evade the quota system for expatriate labour.  In other cases, Nigeria-based businesses are forced to spend huge sums of money recruiting and re-training graduates.

    We may all be familiar with the fact that if you require the services of good tailors today you go the Republic of Benin or Ghana.  When you want to build a gazebo in your compound, roof a house or lay tiles, the recommendations we receive are for skilled artisans from neighbouring countries.

    In similar vein, many of us have patronized hotels, restaurants, shops, carpenters, welders, and mechanics in contemporary Nigeria.  In many cases, the service you receive must have brought you close to tears and at great cost.  This is because, many of these artisans received peripheral apprenticeship with a so-called master and “graduate” with no proper certifications or experience.  This is a further illustration of the predicament we have found ourselves in Nigeria today.

    The manifestation of the institutional failure to provide jobs for our teeming youths has become a critical push factor in the current phenomenon of human trafficking and irregular migration.

    As you might be aware, Edo State was almost becoming synonymous with human trafficking.  Today, the story is different.  We have admitted that it is our challenge.  From our investigations we now have a better understanding of the root causes, the push and pull factors, etcetera.  Our analysis and research from the data that we have gathered have assisted us tremendously in understanding the size, scope, demographics, travel routes and the communities most prone to trafficking. In other words, we now have a better understanding of how complex the problem is.

    Distinguished Ladies and Gentlemen, amongst other findings, it became obvious that the absence of a robust, well-modeled and adequately monitored technical and vocational system to offer opportunities for youths to get decent work and jobs is a key factor responsible for the massive movement of young people abroad in search of greener pastures.

    In recent times, over 50,000 young men and women have left Edo State for Europe making the perilous journey through war-torn Libya, the Mediterranean Sea and on to Europe.  We estimate that over 15% of them may have died in the course of the journey. Of the over 3,500 that have returned so far, many remain traumatized with tales of woe and frustration.

    While it is true that there are other pressure points that tend to push our young people to other lands, the fact remains that as a nation, we have failed to provide hope for a better future for our young people who constitute the majority of our population.

     

    Edo State: Technical and Vocational

    Education as Priority

     

    Around the world, countries have been able to enjoy comparative advantage in productivity and economic growth as a result of the strength of their Education systems.

    The Nigeria solution to technical and vocational education has been articulated in various documents such as the National Policy on Education, the National Economic Empowerment and Development Strategy (NEEDS) and Vision 20:2020.

    The strategy expands the role of education as an investment tool for economic, social and political development to include education as:

    1)  An aggregate tool of empowerment of the poor, and the socially marginalized groups;

    2)  An effective means of developing the full capacities and potential of human resource, and

    3)  The development of a competent work force through the acquisition of practical life skills relevant to the world of work as a veritable means of developing sound intelligent learning societies, fit and relevant to the 21st century.

    To achieve this, the transformative nature of Technical and Vocational Education and Training (TVET) became apparent. Consequently, the mission and vision of TVET was defined to cover:

    1. Technical Colleges
    2. Vocational Enterprise Institutions (VEIS)

    iii. National Vocational Qualification Framework (NVQF)

    If properly implemented, TVET was expected to offer compatibility between labor demand and labor supply because Technical Education that emphasizes acquisition of skills as well as vocational knowledge would offer our youths empowerment for self-reliance, self-determination, economic and financial independence and economic development of the society.

    Unfortunately the aspiration of TVET has been thwarted over the years by:

    • Lack of funding
    • Poor basic education
    • Lack of facilities/instructional materials equipment, tools for teaching
    • Nonchalant attitude
    • Vandalism of equipment, tools by both the beneficiaries and community inhabitants.

     

    Edo State Strategy:

     

    The State Government has designed a development strategy based on widespread consultation with stakeholders. The 6 thematic pillars in that strategy are

    • Institutional Reform – emphasizing transparency, accountability and building human capacity, systems and processes
    • Economic Revolution- utilizing our rich endowments and comparative advantages to drive economic growth in areas like agriculture, services and manufacturing
    • Infrastructure Development – to enhance mobility of goods and people and improve economic and social efficiencies
    • Socio-welfare Enhancement – to make quantum leaps in education, health and other services to ensure inclusive growth and support the weak.
    • Environmental Sustainability – to protect our environment particularly our forest endowment
    • Culture and Tourism – use our rich culture and history to Place Edo as Nigeria’s foremost tourism destination

    To fulfill these pillars, we have, as a government, undertaken several ground-breaking action and initiatives over the last 20 months since I took over the governance of Edo State. Amongst the multitude of actions, policies and programs, those that have multiplier effects in stimulating the economy and attracting private investments include, the design and the development of a 996 hectares Industrial Park and development of the Benin River port. We have also successfully launched a new industrial program including revision of incentives to investors, introduced technology in revenue collection, established a Public Private Partnership “PPP” office and an Edo Investment Promotion Bureau, initiating an Ease of Doing Business campaign.

    During my electioneering campaign, I promised the people of Edo State that I would invest heavily in Education and to create a minimum of 200,000 jobs by 2020.

    In order to fulfil my election campaign, we need to reverse the trend of unemployment of our youths and must equip them with skills to fulfill investors’ demand. Our plan is to utilize the potential of TVET for youth empowerment, therefore the Edo State government has ensured that we accord high priority to technical education in our reform agenda. This was expressed clearly to stakeholders when in my first day in office as the Governor of Edo State, I paid a visit to the Government Science and Technical College in Benin City.

    To overcome the challenges with TVET I have highlighted above, we have undertaken a well-articulated approach to the challenge.

    In February 2017, we held a major workshop with stakeholders from within and beyond the state. We discussed the critical issues on how to reposition technical and vocational education in the state.

    Next, we conducted a state-wide assessment of vocational schools.  We found out that many of such centers claiming to be offering catering, hairdressing and related courses were just camps for human trafficking.  We are closing down such institutions and have already begun repurposing them (converting their programs using self-sustaining models in partnership with the private sector).

    Critically, we have proceeded to close and redesign the Government Science and Technical College in Benin, and we are currently rebuilding it to reflect contemporary requirements for a full-fledged technical college.  The World Bank being impressed by these strides has contributed 1.2 Million Dollars (400 Million Naira) to this project and is set to invest an additional 2.7 Million Dollars (1 Billion Naira) in the coming year.

    We are also carrying out surgical restructurings of the tertiary institutions that provide such educational opportunities.  We shut down the state-owned College of Agriculture, Iguoriakhi, paid-off the staff and sent the students on Internships with large corporations such as Presco, Okomu, and Leventis.  The Government pays them N20,000 monthly while on the Internship.  In the meantime, we are restructuring the curriculum, rebuilding the institution and upgrading the facilities, and will be recruiting truly qualified faculty for the new three campuses of the College of Agriculture in Iguoriakhi (Edo South), Uromi (Edo Central) and Agenebode (Edo North).  Incidentally, we are involving the private sector in the design and management of the programmes of the Colleges.

    Similarly, the Edo State Polytechnic in Usen (formerly Institute of Management and Technology) is being repositioned to teach relevant courses that will enhance the employability status of each graduate.  We have put in place a new management and we are in the process of redesigning the entire institution to serve the needs of the state and the private sector. These are just some of the steps that we have adopted to privilege technical and vocational education training in Edo State.

    We realise that if the foundation on which the educational system is weak, we cannot produce students who are technically strong. Therefore we are transforming Basic education in Edo State through EDO – BEST (Edo Basic Education Sector Transformation). In Edo BEST we are overhauling our entire basic education by retraining our teachers, improving the governance of our schools and utilising technology to improve both pedagogy and learning.

    In order to further create stronger linkages between industry and job seekers. One of the first initiatives of my government was to create “EdoJobs”, an initiative that has now evolved into a Skills Development Centre.  The objective was first, to obtain data on the numbers, qualifications, location, and interests of Edo youths.  Second, was to provide training and employability support, and the third was to match the trained youths with private sector employers through the new synergy we have established. So far, over 45,000 jobs have been created through self-employment or placements with the private sector.

    We are also liaising with the private sector in Edo to build a direct linkage between the schools and their skills requirement.  We are inviting the private sector to be part of the development of a new program for instruction and training; support technological innovation; and create opportunities for internship and eventually recruitment.

    Edo State is emphasising practical, skills-based certifications.  We are not only going to ensure that the schools have accreditation, but we are also planning to ensure that the students write the international examinations to acquire global certifications. This way, those that wish to travel abroad can do so legally and be sure that they can find gainful employment abroad.  In this way, we check human trafficking and irregular migration.

    These are just some of the steps that we have adopted to privilege technical and vocational education training in Edo State.  I have said it severally that if I have N100 to spend on Education, I will allocate N40 to technical and vocational education, N20 to basic education, and N40 to tertiary education.  The point is not that we do not appreciate the importance of other levels, rather, it is to underscore the critical position of TVET to my government. Over the years, TVET simply slipped off the education map and coupled with poor public perception in the country, it became neglected.  In Edo State, we are changing the narrative and in couple of years, the results will become obvious.

    Edo State has signed an MOU with the Nigerian Institute of Welding to support our technical colleges and help re-train most of the artisans with no certifications. This will be extended to other sectors where we plan to provide opportunity for skills update for artisans and give them the needed certifications to enhance their businesses.

     

    Conclusion

     

    For us in Edo State, we are determined to bridge the skills-gap in our market.  We recognize that to solve the unemployment challenge, we need to encourage people to look more at technical and vocational training to empower themselves.  We also recognize that we need to do a lot of work to change public perception about TVET.  One way of doing this is to give it full public support, redesign the institutions and programs and put them under qualified management.  In addition, we have deliberately set out to work in partnership with the private sector so that our demand-driven strategy will promote higher options of employment for our products.  Through our economic programs, we hope to expand our economic activities to also absorb those that opt for self-employment. We are working to ensure that such graduates are provided with starter-packs and soft loans to enable them to establish their businesses.

    Lean resources cannot be the excuse for not prioritizing and investing in technical and vocational education training.  Leaders must take it upon themselves to change the wrong public perception. There are no more government jobs available to absorb the thousands of graduations that our higher institutions produce every year.  If we truly want to work for peace, stability, growth and development in the interest of our people and nation, this is the time to wake up and reposition TVET in Nigeria.  For us in Edo State, we have recognized the challenges and we are confronting them frontally.  If we succeed in Edo State, it may inspire similar transformations elsewhere.  We are open to new ideas and I urge you all to think of innovative ways to assist us to meet our goals to serve our country.

    I thank you for listening.

  • Ganduje in Dubai: Seeks investment on agriculture, power, mining to boost economy

    Kano state is seeking foreign investment in critical sectors such as power, agriculture, infrastructure mining, to boost its economy and enhance its competitiveness, the state governor, Abdullahi Umar Ganduje has announced.

    “My government is reaching out to foreign investors on a regular basis and providing them with necessary incentives such as land for the setting up of industrial ventures, adequate tax relief, adequate infrastructure and assurance of stable and secure environment”, he stressed.

    Ganduje also said his government would provide support for local employment of staff, facilitate transfer of dividend or profit, even has he pointed out that his administration was zero tolerant to corruption.

    The governor stated this in a speech during the Kano presentation at the 8th Annual Investment Meeting (AIM) taking place at Dubai World Trade Center, UAE, according to a statement by Ameen Yassar, Director-General, Media and Communications, Kano Government House.

    The Annual Investment Meeting is the world’s leading platform for Foreign Direct Investment (FDI), aimed at facilitating strategic networking and promoting investments and this year, it is focusing on the theme ‘Linking Developed and Emerging Markets through FDI: Partnerships for Inclusive Growth and Sustainable Development’.

    Ganduje stated that “Kano state that was ranked 23rd (2017) in the Ease of Doing Business by the World Bank has stepped up efforts to ensure that it remains investor friendly. This has made us the most successful PPP state in Nigeria”.

    “A Chinese multinational company, Shandong Ruyi Technology, has already embraced the benefits of our liberal investment policy and is investing over $600 million in the textile and garments industry (in Kano)”, he noted.

    He, therefore, urged international investors to take advantage of Kano’s vast agricultural potentials, alternative energy resources, huge solid mineral deposits, commercial prospects and productive population, among others for mutual profit.

    On the sidelines of the Annual Investment Meeting, AIM, Ganduje met with the Under Secretary, UAE Ministry of Economy, Abdullah al- Saleh, where they discussed possible collaboration in the agricultural value chain and renewable energy, for mutual development.

    The governor, alongside his Niger state counterpart, Abubakar Bello also held discussion with a leading member of the ruling family in Dubai and owner of AMERI Group, Shiekh Ahmad bin Dalmook Al-Maktoum on prospective investment.

    He told the governors that the AMERI Group has signed an MOU with the government of Lagos state in some sectors, and constructed a power project in Ghana, which could be replicated in their states.

    The 3-day Summit, which is a conference of policy makers, heads of multinational corporations, academicians, financial experts and investors, is expected to witness the signing of Memoranda of Understanding that will help countries enhance FDI flow.

  • Operating in a vuca environment

    Text of the speech delivered by the Executive Vice President of Unilever Ghana and Nigeria, Mr Yaw Nsarkoh at the occassion of 2018 Ogun State Summit on business environment, held in Ogun State.

    On many occasions, one is faced with the challenges and opportunities of operating in a volatile, uncertain, complex and ambiguous (VUCA) environment.

    The  first thing when you are managing a business in a VUCA environment is that you have to face the reality that VUCA is not just a conceptual expression, it is real, by which, the volatility of which you speak manifests itself every day, every week, every month.  Volatility by definition means you cannot be certain what will happen today, tomorrow, or the day after.

    The first thing I do in managing in such an environment is that I aim to build an organisation equipped to interpret the risks surrounding it. Always scanning the horizon, facing reality, asking yourself: ‘what are our current risks?’ Ask yourself – ‘were these risks to surface, is our business ready to deal with them?’ I find that, a lot of time, people talk about working in a volatile environment, but with the first sign of volatility, the business cracks. We talk about it, but do not plan for it.  If you do not prepare for tomorrow, tomorrow overwhelms you.

     

    Face the reality of the environment

    The first thing is to face the reality of the environment and deal with it. When you face the reality, you will build more resilient models. Models that can cope with shocks and enable us to thrive in highly volatile circumstances. Take the volatility of our telco networks as an example: some people do not understand the tendency of others to carry more than one phone. I believe this is their individual response to the fragility of the networks and their frustration at the companies. They know there will be places where one network doesn’t work, so they carry another back-up network to make a phone-call if one fails them.

    If you apply the same thinking to business, you should always in a volatile environment, think about back-up plans and what changes you can make in the short term. For example, having multiple vendors for a particular service, which means that when shocks surface, you are better prepared. You can move from supplier A to supplier B or both can give you half your requirement. Therefore, the economic cycle and the evaluation criteria of what is right in business in volatile environments must now be viewed through a long-term lens. Planning cycles are shorter and you plan during these shorter cycles, because every month, every quarter, things change. Review, change, review. But evaluation of economic benefits must be done with a longer-term horizon in mind.

    In tangible terms, that means you may carry high inventory levels and in the short term, that comes with huge constraints on working capital, interest payments and so on. If you look at it in the medium to long-term, you realise that by having more reserved for times of adversity, volatility will reduce. For example – if ports go down or a road route is clogged, your delivery trucks won’t get through, but you however will be better prepared with inventory and your revenues will therefore grow faster. You may even gain market share and brand loyalty because of your ability to serve consumers and shoppers at a time your competitors could not. On a medium-term cycle, therefore, it becomes a benefit not a hindrance.

     

    Immerse in your Environment

    In any environment, be it volatile or not, there is a cultural conversation within which brands must express themselves. In times of adversity, people develop a certain sense of humour about things such as poor infrastructure and implication on services, so brands seeking to serve people purposefully must immerse themselves in that environment and speak their language. It is not for nothing that people wake up in markets like Nigeria and Ghana and talk about ‘E go better’ or if you go to the Caribbean, they say ‘better a go come’ (these expressions mean; things will get better). A sense of hopelessness is counteracted with a sense of humour.

    Brands should not ignore the tendency for people to try and soothe themselves. They must embrace and understand it in the context of the unpredictable times in which we live, the news culture of their people and the role their brand can play in the day-to-day conversation in communities. Whether things are good or bad, brands have a responsibility – because they are part of the fabric of life.

     

    Flexibility

    When it comes to your business model – and I have touched on this already – but in summary: it must have flexibility and resilience combined with the ability to adapt rapidly to new and changing circumstances which is critical for survival during volatile periods. It is true always, but particularly in the VUCA world, because of the tendency of people to say that the environment is so difficult, that excellence at world-class levels is impossible. Business leaders must be curious and go out of their way to seek best practice wherever they can find it. Through this quest they will be able to demolish the pervading tendencies of people to think we cannot aspire to world-class in this environment.

    I can tell people about what happens in Singapore, Germany or Scandinavia, and they hear me, but many are cynical about their ability to bring it to market in a country like Nigeria. If however, I find examples of the same high quality as those markets, here in Nigeria – someone deploying it in a manner from which we can observe and learn – it tends to have a much more motivating influence on people and their ability to let barriers drop and aspire to it themselves.

    So, it is critical, particularly in volatile markets, to be on the continual look-out for people doing things better than you, and benchmarking as a culture in every part of your business: always looking for areas to improve and putting in place appropriate plans, delivered with speed and agility.

     

    Team Selection

    The talent base of the organisation is vital to survive and thrive as a business under usual circumstances. It is even more acutely important during volatile times. I always suggest that you have to find people, who, when they wake up in the morning, are not overwhelmed by volatility but instead appreciate that it’s the reality we face and see it as an opportunity to grow. Existing recruitment criteria can sometimes favour extremely cerebral people who, at the first sign of trouble, find a reason why they will not be able to deliver. It is, therefore, no surprise when global organisations using such criteria then struggle to sustain results in extremely volatile environments.

     

    Reduce Hierarchy

    I believe that particularly in our current environment, we must empower the frontline. For example, our sales person in Maiduguri should be able to wake up, understand the local dynamics of the company inside and out, and have the knowledge, confidence and support to succeed there.  My task as a leader of this organisation must be to build a system: a management information system. I want to build a culture of empowerment that strips away layers of hierarchy, so that when that guy speaks to the organisation, his voice is taken seriously, he knows he has my backing, the backing of the leadership team and will, therefore, feedback what he observes. I call it ‘the inverted pyramid’, particularly in volatile times, you do not have the time and luxury to ask for information to reach you through layer after layer.

    You have to put in place mechanisms and you have to disrupt the system, otherwise the layers of the ordinary pyramid will resist you.  When you cross layers and go right to the front line, there will be many who feel that they’ve been left out of the process, but you must persevere as a leader and create that culture so the organisation is speaking to itself about what it learns in real time and acting on it, so every employee realises how you can march faster toward your goal and is willing to express it.

     

    Segment Markets

    There is nothing like a one-Nigerian market or one market anywhere, and so you will come up with your own segment descriptors, but you must be close enough to the markets to understand different characteristics, so you can meaningfully segment. Then, with the correct segmentation, cater for those markets and serve them in a meaningful way for which they will reward you.

     

    Organisation

    In all organisations, particularly during a volatile era, where there are many external distractions, leaders must focus the organisation on key objectives. In particular, try establishing a growth mindset, because it’s a growth mindset that enables people to overcome obstacles, see opportunities and keep the organisation resolutely focused on its objectives and goals. Clarity on what we are all trying to achieve, especially in turbulent circumstances, is critical.

     

    Ecosystem Consideration

    What I mean by this is that no business is standalone. You have suppliers, customers, employees, shareholders. So, the leadership must be constantly considering how to create value for all. We call it a ‘multi-stakeholder approach’. If you create value for all stakeholders in your ecosystem, you are much more likely to win.

    The multi-stakeholder approach, particularly in volatile markets, is crucial. Map them out: who are they? Are you giving back to the community in meaningful ways that advance the business? Is your supplier and customer base strong? Do your financial partners understand exactly what success looks like, and are you are working with them to achieve this?

    If you get all that, correct, the fallout is positive: your business and ecosystem is strengthened. Your ability to win in the market place improves. Your ecosystem becomes so strong that your business has end-to-end resilience and is able to withstand sudden shocks.

     

    Cultivate a Culture of Humility

    My final point and I believe this is true of all business, but particularly in a volatile environment, is that a culture of humility and curiosity must be established. Why humility? Because you must be willing to learn from anywhere and anyone. Organisation must put learning at its heart: willing to learn from competitors, (bigger or smaller), other players (not necessarily in its industry space), anybody doing anything better. We must be willing to learn continuously, together.

    If you can do that, then you are much more likely to succeed sustainably.  So, to summarise:

    1. Read reality, face it, plan for it, map risk and build a resilience model.
    2. Benchmark religiously.
    3. Select a team that can cope in the environment we describe as volatile.
    4. Reduce hierarchy, so the frontline is able to speak – and the entire organisation takes it seriously.
    5. Take the ecosystem into consideration all the time and do things to succeed long-term.
    6. And the last point, be humble. Learn! Learn! Learn!

    Nsarkoh is executive vice-president of Unilever Ghana and Nigeria

  • A case for women

    A case for women

    Today in Nigeria, UNICEF reports that there are about 15 million Nigerian children of school age already out of school – the highest rate in the world. Of all those, 5.5 million are girls; again the highest number of girls of school age out of school anywhere in the world.

    I start with these damning figures because the main barriers to fair treatment of and equal opportunities for women are rooted in debilitating cultural habits that favour boys over girls in the wrong belief that women do not need education to fulfill what many consider their gender roles. Sadly, it’s not only the political class in Nigeria that has failed women and girls, it is all of us. “When we build up women we build our nation and our communities.”

    Not only do I write this in my book, for me it is a steadfast belief and absolute truth. Rather than dwell on the unfair hand that women have been dealt though, on this day, I want to focus on how we can do better and even lead the rest of the world in terms of being respecters of womankind. Some may say that gender parity is a problem of the privileged in the Nigeria that we live in today.

    I refer those people to the wisdom of Nelson Mandela: It is important that government structures understand that true freedom and prosperity cannot be achieved unless…we see in visible and practical terms that the condition of women in our country has radically changed for the better, and that they have been empowered in all spheres of life as equal. There are five major areas in which women in Nigeria have lived with inequality: access to education for young girls; access to finance; women’s marital protection rights; violence against women, and the poor ratios of women representation in political and corporate leadership in Nigeria.

    On access to education for girls, I propose that the federal and state governments in Nigeria make primary and secondary education mandatory. Because poverty and cultural habits reinforce the disadvantages to girls in this regard, I believe we must now be more creative with the kinds of incentives that should be trotted out to facilitate compliance. An example will be a kind of household subsidy to families below the poverty line who comply with laws and policies to ensure the education of girls.

    Beyond incentives, it is vital to engage traditional rulers and other custodians of culture in our country in a structured and consistent dialogue on why it is in the broader interest of the society for girls to go to school.

    On access to finance, I have five recommendations: The Central Bank of Nigeria should create an enabling policy environment for the establishment of women’s banks by the private sector, that can provide funding for women to start their own businesses or grow pre-existing businesses, with minimal collateral.

    Financial institutions and the governments should partner to provide venture capital and private equity funding to female-owned businesses.  Banking institutions should increase their products tailored to women’s preferences and constraints.

    The CBN should revamp its micro-finance policy, which has so far not achieved the vision that inspired the institution of microfinance banking in Nigeria, to serve mostly women and be owned mostly by women. This is why microfinance has been successful in Asia but has not succeeded in Nigeria: the concept was predominantly female-oriented, while in Nigeria microfinance has been erroneously operated as mini-commercial banks.

    Financial inclusion policy, training and advocacy in Nigeria should be more specifically focused on women in order to bridge the gender gap and also improve access to finance more broadly. Failure to take this approach is why Nigeria has remained far from meeting its goal of reducing financial exclusion by 80 per cent by 2020, to which the CBN committed Nigeria in the global Alliance for financial inclusion.

    On women’s marital protection rights, I really believe that we as a people first need a complete reorientation about the purpose of marriage to both men and women. We are way past the years of ownership of others’ bodies and dreams. A woman’s ambition cannot continue to be made contingent on the things that small-minded men “allow”.

    While we undergo this reorientation, we must simultaneously begin to implement policies that protect the rights of women during a divorce settlement or death of spouse based on cultural/family dynamics and traditions should be more vigorously developed and implemented, especially at the state and community levels.

    On violence against women, I believe we have been more reactive than proactive so far. Response to violent treatment of any woman must not be limited to commentary on social media. The perpetrators of the violence must be held accountable every time.

    Also, more state government must strive to emulate the Lagos State’s Domestic Violence Response Team which has greatly encouraged victims of all forms of abuse to promptly report their experiences without any fear of being stigmatised or even reprimanded.

    On the poor ratios of women representation in political and corporate leadership in Nigeria, I strongly believe the solution lies in the political domain.

    I recommend the following: Female and male voters  should inflict “political punishment” on all members of the National Assembly that voted against the Gender Equality Bill by campaigning and voting for their defeat in the 2019 legislative elections.

    The election of a presidential candidate, whether man or woman, with a clear program and track record of support and advocacy for female gender equality in Nigeria and beyond

    The adoption by the next President of Nigeria of an aspirational policy target of 50:50 gender parity in appointments to the cabinet and other political appointments, and in no event to achieve a gender gap closure rate of less than 40 per cent of political appointees being qualified and competent women with proven track records.

    The revival and sustained implementation of the national Gender Policy adopted by the federal Ministry of women and Social Affairs in 2008 in consultation with state governments and international development agencies.

    The prioritisation of constitutional and human rights of women to freedom from discrimination over conservative interpretations of religion in national and state legislation, bearing in mind that Nigeria is a secular and not a theocracy.

    Implementation of these policies requires better education of both genders at all levels on the rights of women, and the socioeconomic dividends gender equality yields. In our homes and in our schools, we must do what it takes to move women—and therefore our country—forward.

    I’d like to leave you with this: A World Bank research paper estimates that the opportunity cost of not investing in educating girls is a loss of Gross Domestic Product up from anywhere from 1.2 to 1.5 per cent. Nigeria’s GDP grew at under two per cent last year.

    Prof. Moghalu is President, Institute for Governance and Economic Transformation and Nigerian presidential candidate.

     

  • Boosting customer satisfaction with electronic payments in African Banks

    Boosting customer satisfaction with electronic payments in African Banks

    By Chidera Ebele

    Affiliation: Chukwuemeka Odumegwu Ojukwu University

    The African banking sector has been r​evolutionized by adopting electronic payment systems (EPS), significantly enhancing customer satisfaction. In Nigeria, 80.8% of respondents in a study reported that EPS reduces the need for physical bank visits, saving time and increasing efficiency. 

    Similarly, mobile money services like M-Pesa in Kenya have significantly reduced transaction times, with 82% of users expressing satisfaction. In South Africa, 78% of bank customers have experienced improved service delivery due to online and mobile banking services.

    EPS has enhanced customer satisfaction and facilitated market expansion across the continent. In Nigeria, 85% of respondents indicated that EPS helps banks grow their market size by offering 24/7 service availability. Ghana has seen a 70% increase in the number of bank accounts due to mobile banking, and in Egypt, 75% of respondents noted that EPS has increased banking inclusion, especially in rural areas. 

    The competitive advantage provided by EPS is evident in Uganda, where banks using advanced systems reported a 60% increase in customer retention, and in Morocco, where 79% of customers prefer banks with robust electronic payment systems. This potential for market expansion is a promising sign for the future of the African banking sector.

    Despite these benefits, challenges like power outages, cybersecurity threats, and inadequate telecommunication infrastructure persist. Addressing these issues requires a multi-faceted approach. 

    Banks should invest in reliable power and telecom networks to ensure uninterrupted services. Implementing advanced cybersecurity measures, such as machine learning models for detecting and preventing cybercrime, can protect banks and customers. 

    Additionally, conducting educational campaigns to raise awareness about electronic banking can drive adoption, especially in rural areas. By overcoming these challenges through strategic investments and innovations, African banks can further enhance customer satisfaction, expand their market reach, and compete effectively globally.

  • ‘Employment Trust Fund not for jamboree’

    ‘Employment Trust Fund not for jamboree’

    The Executive Secretary, Lagos State Employment Trust Fund, Mr. Akintunde Oyebode, in this chat with MUYIWA LUCAS, says the government’s purpose for the scheme is gradually coming to fruition.

    The Lagos State Employment Trust Fund (LSETF)appears good. But people say it is difficult to access. Why is this so? Is there no way to access the fund?

    First, if I will be honest, the state has limited resources. This means that the most resilient applicants will scale through because we cannot support everyone. What we are committed to is that the process is transparent and unbiased.

    The point is, whatever pain Mr. A is going through to apply, Mr. B is also going through same. There is no preferential treatment for anybody. But from next year the process will be better structured because there will now be windows. What we have done this year is because there is a need to immediately roll out the scheme and reach out to as many people as possible. The loan is on a rolling basis, so every month we are approving applications. Going forward, we will be having windows- the application will close on a certain day and if you don’t apply then, it means you can’t apply for that quarter. But in terms of the requirements, it won’t change. We feel that we are lending without collateral and people must also meet at a certain level. This is not a grant.

     Is there any mechanism to monitor beneficiaries of your loans?

     Yes. We do some monitoring and we work with partner banks. It is a combination of both microfinance and commercial banks; so they do a lot of collections on our behalf and the monitoring. We also have partners, who from time to time go out on our behalf to monitor the business performance. So, we monitor in two ways- we do our own independently and then we have our bank partners, who help us collect and monitor.

    If someone takes N5million and pays back successfully, is it possible for him to get N10million?

    No. We have a regulatory limit. The best the person can do is come back for the same N5million, but where we really want to take business to is that we give a N100, 000, you pay back, we give you half a million, you pay back, we raise it to a million and, ultimately, to N5milion. Now for business that needs more, we now structure an introduction when we say for example, we send them to institutions like the Bank of Industry. We have limited resources and to reach many people that is why we peg it at N5m.

    There is the belief that the scheme is for All Progressive Congress (APC) members only. How true is this?

     To be honest people saying that are only mischievous. That kind of comments does not bother me again. Anyone, who has been through our process, will recognise that this is not based on party, religious, or ethnic affiliations. So, it is a straight forward process and there is a marking scheme- you either pass or you don’t. After that there are some requirements you have to meet. When people say that I always tell them that but you have not even tested the process. You are doing yourself some bad if you sit at home and assume that it is for political affiliations. I have been to 20 local governments and I have said it on radio, press interviews and the likes, and we say to you come and test the process if is different from what we said then go and embarrass us. We have a whistle blower hotline that is managed by KPMG.

    If you look at the ratio of beneficiaries there are Igbo, Yoruba and some Hausa and Southsouth and if you look at our team, we don’t care where you are from as long as you are competent and live in Lagos. There is no Yoruba, Igbo, Hausa or party agenda, but of course, there will always be doubting Thomases.

    How long have you run the scheme? I mean a kind of appraisal? Please tell the whole world how far you have gone?

    As we speak, we wrote our first loan in January-February; from October we will be commissioning an independent inter assessments exercise for an independent body to come and say this is where people you helped are; before you come and this is where they are now; this is the impact we have seen on the programme; these are things we think you can do differently.

    So, we expect that by next quarter of next year we should have that report ready. It will also be useful because assessing the impact is what helps us to identify what we need to change. So, we are starting the exercise this year and we hope by first quarter of next year it will be ready for independent opinion, review and critics.

    How good is the repayment?

    Impressive. If we get similar or better repayment compare to banks, it will be a success because that will mean that we are lending to the right people. In terms of our loses today or what I will call our credit loses, it is still under 10 percent- it is about 5.5 per cent, which is pretty low. But we are not resting on that, we have to continue ensuring that we find the right people and we also drive out how we can collect from those people. One of the issues we face is that of willingness than ability and so, knowing that when they borrow they will be willing to repay and able to repay, that’s what it takes.

    So, it is finding those kind of people and ensuring that when they are unwilling, you have the collection mechanism tighten around them to show them that you can collect adequately. But for some people, who are defaulting on their loan now, some will be taken a set up on them, some will be charged to court to show an example that when you borrow from us, it is not a jamboree money because if you take a loan from us and you don’t repay, others will feel like why should they pay. So, we want to show people that there is a consequence for not repaying our loans, despite the low defaults rate.

    Of all Lagos State programmes, I think this particular one needs to be shown to the world because it has a kind of direct impact on the people. What do you think?

    That is it, and I think that is what we say with governance. One of the challenges is how does government impact the people. So, in some instances, when you can take much longer you will be able to see that in some cases like ours, if done correctly, you can see the impact in one to three years period. So, the government ‘s aim and the governor’s view is, the only way the government is not going to employ all those people coming out from university and secondary schools, who wont even be employed by even the large corporate, but primarily the small and medium size enterprises. Apart from the impact on the borrower, there is also the added impact of being able to create more jobs and employ more people.

    So far, how many have benefited from your scheme and what is the interest rate being charged?

    The interest rate is five per cent per year. In terms of numbers of people, we have approved loans to approximately 6,500 people, but the actual disbursed loan will be around 4,200 people . So, today 4,200 people have actually received their loans and put them into their businesses

    Do you have an insurance scheme for the loan?

     There is nowhere you can get a 100 per cent repayment on loan in Nigeria or anywhere in the world.  Nobody also assure credit risk, the insurance you get is on personal life, fire, burglary and theft or the person dies or permanent disability and he is unable to run the business.

    We insure against that; we insure against theft, burglary or property and the equipment. We do that type of insurance. We have some insurance that if something happens to you or the business premises, we will be able to recover money and we also give you the option to increase it if you want. So, if you want to increase the sum insured, that is up to you. But what we insure is up to the loan we give to you, anything in excess of that is now between you and the insurer, but the real point is and I think I have made that  clear, what determines success or failure is the selection process. So, if you introduce nepotism and sentiment in selecting people you have a higher rate of losing money because that information have a way of going out. People will know that if you bribe someone with N50,000 you will get the loan so if you pay someone that amount to get a loan, why will you pay back?

    By the time you complete the first year, how many people do you hope to have empowered?

    That is tricky to say. At this stage, we have done 6,000 loans maybe it will have gotten to 10,000-12,000 and this is not all we are doing. It is not just lending, the loan programme is just one of several programmes. We are doing some work with the UNDP at the moment where we are providing technical and vocational training to approximately to 16,000 people over the next two years and we are not providing the training for the sake of just training, but to at least, make sure 75 per cent of those people are placed in jobs.

    So, when you are through with the programme we place you on jobs. We are already talking to private sector employers to ask what are their needs, what skills do you need and what kind of professional level do you need? This is because when we train those people to that standard, they will automatically employ them. That is a completely different programme, that is not a loan programme, but an employee programme where another 16,000 people should be put to work over next two years.

    So, it is not a one-sided programme. And if you look at all the work going on around Yaba today, the eco-system is developing on its own without the government support, this is where the Kongas, the Jumia, Iroroko, and others have come out from- excellent business not only employing hundreds of people, but creating a platform for thousands of people to do their business.

    Just a passing short, you give loan without collateral? How do you secure them?

    You know the interesting thing is your first level of security is the quality of the person you are. If you give me a house today to collaterise your loan, how long do you think it will take me to recover the loan? If that loan goes bad how long do you think it will take to recover it? So, with our current state, we are in court for minimum of four years. Collaterals do not give you confidence. Collateral is only important at the point when the person has failed to pay. If you able to pick the right borrower, you don’t even need collaterals but one of the things we have done is that we will use social collateral. So, we ask these people to provide us with guarantors, who we can hold in the event if they don’t pay. We also have a right of setoff such that if they don’t pay we can use their BVN to check when they have money and set it up against their balances. Of course, that is the last resort position because to set it up we need a garnishee order, but we have that ability.

  • A buoyant Nigerian economic outlook

    A buoyant Nigerian economic outlook

    The downturn of oil prices has created immediate but temporary fiscal and monetary challenges in Nigeria. Dollar oil revenue to the government has shrunk considerably, reflecting over 70 per cent decline in oil prices from the heights they attained in June 2014. Therefore, expansion of the federal fiscal deficit has become necessary in order for the government to continue to meet its obligations and deliver service to the populace. In the states, where the fiscal space is more constricted, paying public sector wages has become more challenging.

    On the monetary side, there has been downward pressure on the foreign reserves. This has limited the wherewithal of the Central Bank of Nigeria (CBN) to continue to defend the naira value across the foreign exchange markets. The official market is sheltered from exchange rate volatility. But we have seen the naira reach all-time lows against the dollar in the parallel market, causing public anxiety and threatening the way working class Nigerians love to live.

    While this is on, it is so easy to become downbeat in one’s outlook for the Nigerian market. Extreme opinions have called into question any sense of progress the country has made with economic management, especially since the return of democratic governance in 1999. They see the threats of higher public debt, inflation, unemployment and slower economic growth. But these issues are most likely to be short-term.

    The current sharp decline in oil prices constitutes a speed bump. Yes, it slowed the pace of economic growth to 3.3 per cent last year, from 7 per cent average GDP growth rate of the last ten years. But, some positive developments are already identifiable with this foreign exchange crunch. To summarise the totality of the auspicious developments, Nigeria has entered a phase of economic transition. This transition has been imperative for long. To some extent, signs that it is already afoot are undeniable. But the economic conditions of today ensures that this transition must gather pace. This transition would invariably lead the country to a period of sustained, endogenous high economic growth.

    There are three factors that underpin my buoyant outlook on Nigeria. One involves cumulative improvement in governance. The second is Nigeria’s commitment to macroeconomic stability. And the third is the irrepressible determination of Nigerians to do well for themselves. This third factor ensures the resilience of the citizens and that of the country. It is the critical element that has continued to drive the progress the country has been making.

     

    Cumulative governance improvement

    The Administration of President Muhammadu Buhari will deliver further improvement in public governance and fiscal management in Nigeria. The President will continue to build on the progress that has been made since the country returned to democracy in 1999. It is not the better judgment to focus on the challenges of governance and overlook the evidence of the progress that has been made.

    Nigeria is committed to democratic governance. In 2007, we appeared surprised when the country made the first-ever democratic transition of government. The late Umaru Musa Yar’Adua succeeded President Olusegun Obasanjo as elected president. Then in 2009, without much pomp and pageantry, we marked the first straight ten years of democratic governance in Nigeria. The 2015 presidential election just proved to be another landmark for the country: for the first time in our history, an opposition party candidate won against the incumbent, and the transition of power was smooth.

    Ahead of the election, Moody’s affirmed a stable outlook for Nigeria. In an interview with one of the country’s top economic journals, Financial Nigeria, later in 2015, the head of sovereign analysis for the rating agency, Aurelien Mali, said the track-record of conclusive elections in Nigeria was factored in the positive outlook.

    Institutions of democratic governance are enjoying longevity. It is a rarity for the legislature, whose existence was usually terminated by the incessant military interregna of the 1980s and the 1990s. Even the tenure certainty for the President nowadays is remarkable in view of our history. While each administration since 1999 has grappled with putting in place more transparent and accountable frameworks for public and market governance, the fact that the institutional drivers of the process are intact is a mark of progress on its own.

    To crown it all, Nigerians are clamouring for further progress. We want the pace of progress to increase. We want responsible and responsive governance. We are even more assured than we were 17 years ago that it is the role of the electorate that is pivotal in constituting government. This awareness is healthy for the Nigerian populace and those who constitute government or aspire to political leadership.

     

    Stable macroeconomic environment

    There is a positive relationship between an environment of political stability underpinned by constitutionality and positive market performance. The Nigerian democracy has even prioritised the development of the Nigerian market. One of the ways successive governments have demonstrated this is by pursuing macroeconomic stability. Unprecedented levels of domestic and foreign investments have followed, beginning with the mobile telephone industry in 2001.

    The CBN has pursued single digit inflation and maintained it in the better part of the last five years. Price stability has been predicated on market reforms and financial market stability. When the 2008 – 2009 Global Financial Crisis arrived on our shores, the reinvigoration of the banking system through the recapitalisation and consolidation of the banks three years earlier, helped us to weather the storm. A strong response to the crisis through CBN liquidity intervention, introduction of macroprudential regulation and purchases of impaired assets helped to strengthen the banks. As the country faces the headwind of low oil prices now, Nigerian banks are expected to remain resilient, even if they have to make operational adjustments.

    Even as the exchange rate policy of the CBN continues to generate a healthy debate, the anti-devaluation argument is consistent with maintaining financial and price stability. President Muhammadu Buhari has shown good leadership with his position which indicates that macroeconomic stability is not a political party agenda in Nigeria; it is a country agenda that has been upheld by successive administrations since 1999.

    The institutional architecture for supporting market stability has continued to strengthen, and that is without overlooking the higher standards that are yet to be attained. Public debt management in Nigeria has been modernised. A legal framework through the Fiscal Responsibility Act is in place. It places a 3% limit on fiscal deficit as a ratio of the GDP. Since the last two fiscal years of the last administration, a policy to channel public borrowing to infrastructure projects came into place. This policy is affirmed in the fiscal borrowing plan of the present administration, as seen in the 2016 budget.

    While the borrowing plan in the budget has inflamed passions, it appears that the provision of a N360 billion Sinking Fund to liquidate matured debt has eluded the debate. Nevertheless, Nigeria has a solid reputation of servicing its debt obligation to both domestic and international financiers. The deals by which Nigeria exited the Paris Club and London Club debts in 2005 and 2006, respectively, will remain a point of reference in the country’s debt repayment behaviour. Since those important deals, the  fiscal authorities have never taken eyes off the sustainability gauge of Nigeria’s public debt.

     

    Primed for success

    Nigerians are generally determined to be successful. If it takes education, we would go for it. If it takes industry, we would become entrepreneurs and start businesses even under the most challenging environment. We are irrepressible in adverse conditions. As the current foreign exchange crisis begins to affect business as usual, we will reinvent ourselves.

    Nobody, including the average Nigerian, wants a hard life in place of easy life. Countries that have developed have had to do so in response to challenges that posed a threat to their easy life. It might be geopolitical threat, demographic challenges or economic stress. In Nigeria today, the formidable threat is the intertwined high dependency on oil for foreign exchange, import dependency and inadequate domestic production.

    What we have to do is diversify the economy, promote non-oil exports and boost domestic production. In the meantime, we need to use policy instruments to curb unnecessary imports. The policy leaning is there, and Nigerians will respond; not only for survival but to achieve and maintain the good life. This is what defines us as a people of achievement. This is why the outlook of the country is especially buoyant, medium- to long-term.