The Nation Newspaper

Category: Letters

NNPCL: Curse or blessing?
Sir: Nigeria’s dream of economic prosperity through the Nigeria National Petroleum Company Limited (NNPCL) remains unrealisable after all these years. With its unsurmountable proclivity towards corruption, it is at the heart of Nigeria’s corruption, evoking her doom.

Over the years, there have been diverse shenanigans, with staggering figures diverted from the sales of oil by reactionary elements. In 2013, the then CBN governor, Sanusi Lamido Sanusi, revealed that the NNPC did not remit $48.9 billion accrued from the sales of oil to the central bank. Year 2011 was when we witnessed the N1.7 trillion subsidy overpayment scandal. There was another shocking revelation in 2012. An audit done by KPMG exposed monumental corruption, financial malfeasance and other financial distortions in the NNPC.

Elder statesman Chief Edwin Clark once alleged that a syndicate of military officers, working in cahoots with disgruntled officials of the NNPC were behind the theft of crude oil running into trillions of naira over the years.

Meanwhile, blessed are the Saudi Arabia’s Aramco and Brazil’s Petrobas. They are the equivalent to our NNPC. They are examples of the NNPC with similar mandates. However, the NNPC has not been able to compete with them in terms of profits, nor has it been capable of attracting sizeable investment for sustainable national development.

Read Also: Fuel scarcity: Motorists accuse NNPCL Ikoyi of extortion

To make NNPCL make profits like its successful colleagues, on September 20, 2021, it transitioned to a limited company with a similar goal of increasing profits. However, a review of the financial statements of the NNPCL shows that this move is yet to yield fruits.

Saudi Arabia through Aramco invested heavily in Chinese refineries in 2023. It completed its purchase of a 10 percent stake in China’s Rongsheng petrochemical company for about $3.6 billion. The deal will see Aramco supply about 480,000 barrels per day of additional crude oil to Rongsheng-affiliated refineries. Nigeria’s NNPCL could only meet up with the Dangote refinery share of 7.2 percent instead of the agreed 20 percent.

While the NNPCL is afflicted by the virus of competitive corruption, Brazil’s Petrobas strategic plan for the 2024-2028 foresees investments of around $102 billion. With this increase in investment, the company estimates the generation of 280,000 direct and indirect jobs per year. In Nigeria, if the NNPC had invested massively on agriculture to diversify the economy, the current food crisis would have been a forgone conclusion. It should have also made significant investment on mineral resources exploration.

When are we going to develop a visionary NNPCL committed to public service, financial transparency and national development?
- Abdu Abdullahi, aaringim68@gmail.com
August 22, 2024
Local government system and crisis of federalism
SIR: The landmark judgment of the Supreme Court on local government autonomy creates a side-line solution to a constitutional crisis on the structure of Nigeria’s federalism. Whereas the judgment reflects the aspiration of many Nigerians on local government autonomy, it is important to situate it within the context and intendment of Section 7(1) which provides that “…accordingly, the government, of every state shall subject to section 8 of this constitution, ensure their (local government) existence under a law which provides for the establishment, structure, composition, finance and functions of such councils.”; and Section 162(6) that “each states shall maintain special account to be called “State Join Local Government Account” into which shall be paid ALL ALLOCATIONS to the local government councils of the state from the Federation Account and from the Government of the state.”.

Without questioning the wisdom of the learned Justices, the following questions are pertinent: is the local government a component of Nigeria’s federalism? Is the judgment in consonance with the intendment of the provisions of Section 7(1) and 162(6) as earlier referenced? Is the Supreme Court likely to reverse itself in the nearest possible future as has been suggested by some critics of the judgment, particularly in a case that a different Attorney General of the Federation decides to approach the apex for such review?

These questions are fundamental, given that in the determination of who has the power to make laws in regard to local government councils in Nigeria, the Supreme Court had in A.G Abia State v A.G Federation, held that state governments have jurisdiction over local government areas due to Section 7(1), Section 197 and item 22 of the Second Schedule part 1 of the Constitution. According to the court, the exception to this is in relation to laws made by a state House of Assembly on local government elections, which must not be inconsistent with any law made by the National Assembly on the same subject matter as envisaged by item 11 and 12 of the Concurrent Legislative List.

Whereas the answer to the first questions demands deepened democratic dialogue, the last question is likely to be in the affirmative, given the complex conflicts of Nigeria’s politics. In the case of the latter, and for the sustainable future of our democracy, it is safer for the Presidency to leverage on the judgment to seek the amendment of Section 7, Section 162 and items 11 and 12 of the concurrent legislative lists to seek periodic and regular elections, local government autonomy, and ensure rational legislation at the subnational level for the effective administration of the local government councils.

The appreciable judicial activism of the Supreme Court on local government autonomy is now a subsisting law, but for the judgment to stand the test of time, it needs a legislative lifeline in amending the identified relevant provisions of the Constitution. Consequently, the president must send an executive bill for the amendment of the aforementioned Sections of the Constitution. The Bola Tinubu presidency is already defined by some bold structural steps on restructuring Nigeria, local government reform will definitely be a core of this history if conclusively pursued.

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On the structure of our federalism, I am compelled to argue that we need a system that reflects our current socio-economic realities and development demands. More than 65% of Nigerians live in rural areas where local government councils are meant to have development impact. It is only rational for the scale of good reasoning to weigh towards the logic that the local government system as recognized by Section 162(3) in the outlined tiers of government for the ‘amount standing to the credit of the Federation Account to be distributed – federal, state and local governments’, deserves a constitutional life as a complementary tier of government, complementary to the state government, but not a competing component against the states.

The proposed bill on “National Independent Local Government Electoral Commission” is likely to further create institutional crisis. Elections hold in each polling units in Nigeria every four years, it will only take INEC extra ballot papers and not logistics, to include local government election for chairmen and ward councillors, during general elections. To truly localize democracy and governance, the people must be involved as envisaged by the Constitution under Section 14 (2)(C) that “the participation by the people in their government shall be ensured in accordance with the provisions of this Constitution”.

It is time for the people to exercise their right as “employer” of public officials, to constant demand for account of service and when necessary, exercise the unfettered right to terminate the employment of their representatives, through recall processes.
- Ekpa, Stanley Ekpa ekpastanleyekpa@gmail.com
August 22, 2024
Nigeria’s foreign debt and China’s globalization strategy
SIR: It seemed almost like a scene from a Netflix comedy when the federal government, through its Special Adviser on Information and Strategy, Bayo Onanuga, accused the Chinese company Zhongshan Fucheng Industrial Investment Co. Limited of deception after a French court authorized the seizure of three Nigerian presidential jets. Two of these jets were undergoing routine maintenance, and the third had been purchased but not yet delivered. The government disputes the legitimacy of Zhongshan’s claim against Ogun State, arguing that the 2007 contract with the state government concerning a free-trade zone management does not involve the federal government; that the dispute had already been resolved in Nigerian courts; that the company failed to properly notify the federal and state governments; and that Zhongshan withheld crucial information and misled the French court into wrongly seizing the jets, which are protected by diplomatic immunity as sovereign assets.

The government’s comparison of this situation to the PI&D case and its argument that Zhongshan’s claim is part of a broader strategy by foreign entities to defraud Nigeria is sceptical particularly given the ongoing trade war between China and the West.

By capitalizing on globalization and leveraging technological transfers from 20-30 years ago, China has emerged as a major competitor to the U.S. and now dominates much of the world’s production. However, China’s financing of African projects, which often includes conditions for asset forfeiture, is increasingly viewed as undermining Africa’s economic growth and development, even though these projects contribute to the continent’s structural transformation. The strategy of asset seizure might re-echo China’s tactics in recovering debts from African nations, where several strategic assets, such as the Mombasa Port in Kenya and the Hambantota Port in Sri Lanka, have been lost due to debt repayment conditions.

Read Also: 2024 China-Africa forum holds brightest opportunity for African nations, says udeogaranya

The seizure of Nigeria’s presidential jets in France could be seen as part of a broader strategy where foreign entities, akin to China, use questionable legal tactics to seize strategic assets in exchange for debt repayment. Nigeria is likely to continue facing such challenges, with foreign entities attempting to claim its assets both overseas and onshore. This concern is highlighted by the recent dismissal of Nigeria’s sovereign immunity claim by a U.S. court in favour of a $70 million award to a Chinese firm, the ongoing PI&D case in the UK, the current $5.16 billion debt owed to China as of the second half of last year, and the caution issued to sub-national entities, such as state governments, by the Minister of Foreign Affairs against engaging in foreign negotiations without proper oversight. The clear lesson is that if Nigeria continues to spend irresponsibly while in debt, it will remain vulnerable to losing strategic assets to foreign creditors.

Governance and infrastructure issues, rather than a lack of human capital, are the underlying reasons why Nigerian presidential jets are maintained or purchased abroad. At a time when international security risks and espionage are of growing concern, particularly between China and the West, Nigeria’s decision to have its presidential jets maintained or purchased abroad, while describing them as sovereign assets, appears questionable. This contrasts with the practices of leaders from major countries, who use vehicles made in their own nations, such as the U.S. President’s Cadillac One or the UK Prime Minister’s Jaguar XJ Sentinel.

Nigeria needs to understand that the countries that produce are the ones that lend, emphasizing the need to invest in infrastructure to become a producing nation.
- ESV. Adeyemi Adebiyi, adebiyiadeyemi@outlook.com
August 22, 2024
Much ado about new presidential jet
- By Kenechukwu Aguolu
Sir: The Federal Government has unveiled the new Presidential Jet -Airbus A330 which it acquired against widespread criticism. Many Nigerians had argued that the acquisition would be insensitive given the country’s economic challenges; some actually suggested that existing aircraft be overhauled while others maintained that the purchase was a necessity rather than a luxury. And that the government should make public the cost of the jet.

On the other hand, the current presidential fleet is said to consist of old aircraft that have become unreliable and consume high maintenance costs. Recall that the president was forced to use chartered flights to Saudi Arabia and from South Africa; the vice president also had to cancel an official visit to the United States due to faulty presidential aircraft. It is more cost-effective, safer, and convenient to have a functional presidential fleet than frequently chartering flights. New planes consume less fuel, require less maintenance, and are more reliable than older ones.

The president and the vice president require a functional and reliable presidential fleet to perform their duties optimally. They are often required to travel to attend summits and meetings, engage in foreign missions, respond to emergencies, etc.

Lest we forget, presidential jets are also a symbol of national pride and the status of office. Also recently, a good number of high-profile persons including the former President of Iran have died in air mishaps; a call for more caution. New planes have better visibility, navigation systems and are more resilient.

Read Also: IGP’s dedication to justice, security commendable – Tinubu

It is worthy to note that three aging presidential aircraft were put up for sale in June and that the presidential jet being an asset is expected to be used beyond this administration. It is an investment that will facilitate effective governance.

While wastage in governance should be minimized, cost containment should not be over-emphasized. A leader can save a lot of money during his tenure whilst leaving important things undone; sometimes as a result of lack of initiative. More important is tackling corruption and ensuring that government expenditures pass the cost-benefit assessment before they are incurred.

Above all, the government should fast-track the implementation of policies that will reduce economic hardship in the country. The call that the cost of the new presidential jet be made public is in order.

•Kenechukwu Aguolu FCA,

kenerek1@gmail.com
August 21, 2024
The home and the missing education
- By Ganiu Bamgbose
Sir: The boundary between parental care and social vices has become inconsequential in the scheme of things in Nigeria. How do we explain parents forging documents to change their children’s age to gain admission to higher institutions of learning because they cannot wait to have them clock the required age?

We euphemise this act as having our children’s interest at heart and downplay the life-long effect of making them normalise forgery and accept lying as a norm. While this will go on subtly in homes, it becomes the liability of the society when such children grow to become administrators and public officers with no regard for standard practices. If helping children secure a good future now means to pay specially for malpractice for their O’ Level and A Level examinations, can we still confidently say we are raising future leaders?

I remember a student came to me weeping about a course they had failed and she repeatedly said she would not mind the lowest mark because she had never failed in her life. How do we justify raising a generation of future leaders who do not understand failure as a stepping stone to success? Will they not grow into adults who take elections as a do-or-die affair and consider public offices their entitlement?

Education is the acquisition of skills, knowledge, values and attitude which make one a functional member of the society. It is pathetic that the aspects of value and attitude are now trivialised in our understanding of education. The affective domain of learning which should inculcate the spirit of hard work, dedication, honesty, transparency, accountability, empathy, selflessness and so on into young minds is handled with levity.

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The focus of many parents is the formal education of their children with outright disregard for the informal education which a renowned educationist, Professor Babatunde Fafunwa, described as “eko omoluabi”, loosely translated by Dasylva (2016:65) as the attitude of an “ideal persona”.

In Ogundeji’s (2009:73) opinion, ọmọlúàbí implies “a person born and raised by someone with good character and, by implication, a person with good character himself or herself”. These elements of informal education are the soft skills which grease hard skills such as competence and ability.

A competent leader who lacks compassion will starve the followers. An administrator who has ability but lacks humility will ruin a system. Educationists represent the domains of humans as the head, the hand and the heart. A nation that does not properly mould the hearts will not get the best of the heads.

The school and society can only consolidate and improve on the foundation that the home has set for a child. This is of course why the English proverb says “charity begins at home”, and why the Bible says “train up a child in the way he should go, and when he is old he will not depart from it” (Proverb 22:6). “If the foundations are destroyed, what can the righteous do (Psalm 11:3)?”

Inasmuch as parents want to make life easier for their children, they must also ask themselves if they would have got it right if this was the path they were made to take.

Our society is a reflection of our family system. If it gets better at home, it will be better out there. Let the education be right from home.

•Ganiu Bamgbose, PhD,

Lagos State University, Ojo.
August 21, 2024
Ogun: The house Daniel and Amosun built
- By Folorunso Fatai Adisa
Sir: Ogun State has been in the news frequently lately, for both positive and negative reasons, with the negative overshadowing the positive. Chief among these is the China business saga involving Zhongshan Fucheng Industrial Investment Co. Ltd., which has become a significant source of embarrassment for both the people of Ogun State and Nigeria as a whole.

Whether former governor, Otunba Gbenga Daniel had good intentions when he entered into the contractual agreement with Zhongfu International Investment is something only he knows. However, the improper government handover, combined with his statements in recent press releases, seems to suggest otherwise.

The British political publicist Ernest Benn once said, “Politics is the art of looking for trouble, finding it whether it exists or not, diagnosing it incorrectly, and applying the wrong remedy.”

This observation seems to perfectly encapsulate the actions and decisions of Senator Ibikunle Amosun regarding the Ogun Guangdong Free Trade Zone (OGFTZ). The handling of the OGFTZ by his administration reveals several political and administrative shortcomings that have serious implications for governance.

In his press release, Amosun admits that his administration appointed Zhongfu International Investment FXE as the interim zone manager based on what was later discovered to be false information. This hasty decision, made shortly after he assumed office, suggests a lack of thorough vetting and due diligence. Of course, the failure to properly investigate the claims made by Zhongfu has, now, led to a prolonged legal and diplomatic dispute that could have been avoided.

The disruption of business activities in the OGFTZ, as mentioned in the news release, coupled with the international spread of the news about the seizure of Nigeria’s presidential jets due to a failed business deal, significantly damages the state’s reputation as a business-friendly environment and could deter future investments. Otunba Daniel’s response to the situation, in which he claimed he would rather help Nigeria find a diplomatic solution through the president, only adds to the perception of poor leadership. His statement lacks evidence of critical thinking and a commitment to serving the people of Ogun State which further shows the self-interest that often plagues Nigerian politics— everyone wants to be a hero without, actually, exemplifying the traits of characters of one.

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For Prince Dapo Abiodun, this is a defining moment. I do not, in any way, envy him. He has inherited a state that has literally turned into the Augean stables by previous administrations. When someone finds themselves in such a messy situation, even if they try to clean it, the stench inevitably rubs off on them.

The Ogun State he seems to have inherited resembles a stable that was expertly locked. As the screws and bolts begin to wear out, the decay starts to show in the form of uncompleted projects, deplorable roads, and bad debts—issues that were concealed until they began to unravel. The challenge before him is enormous, and how he handles it will determine whether he emerges as a hero or is relegated to obscurity.

Abiodun must tackle the current challenges with the same ferocity and resolve. Given the lessons that can be learnt from the mistakes of his predecessors and ensuring that all decisions are based on well-vetted information, he has the opportunity to set a new standard for governance in Ogun State.

It is crucial that this case is resolved amicably to avoid unnecessary strain in our bilateral relationship with such a significant and productive country.

Taken together, the current administration can engage independent auditors or consultants to assess major projects and disputes to prevent a recurrence of such issues. Consequently, national interests can be protected, the people can be served effectively, Ogun State’s reputation can remain intact, and future investments can be secured.

•Folorunso Fatai Adisa,

Glasgow, United Kingdom.
August 21, 2024
Palliatives or handouts: A culture that must stop

By Obamodi Oluwadamilola Faith

Sir: As Nigeria confronts yet another economic downturn, the government’s response has consisted largely in the distribution of palliatives to citizens. The move dilutes the original intent of palliatives as emergency relief, particularly during crises like the COVID-19 lockdown. These measures are intended to provide quick, temporary relief to ease immediate suffering.

But are these palliatives truly the solution to Nigeria’s deeper issues, or are they merely distractions from the root causes of our societal challenges?

I argue that palliatives are a short-sighted approach that overlooks the need for lasting solutions. The federal government has repeatedly turned to palliatives as a method of poverty alleviation, whether through cash transfers, food distribution, or temporary subsidies. However, these measures have consistently fallen short of addressing the underlying issues. Instead of creating meaningful change, they serve as short-term fixes that allow the government to temporarily appease the populace. What Nigeria truly needs is not a series of empty promises or band-aid solutions, but a comprehensive strategy aimed at sustainable development—one that addresses poverty, unemployment, and infrastructural deficits in a meaningful way.

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The reliance on palliatives perpetuates a cycle of dependency, where citizens come to expect temporary aid without any real improvement in their circumstances. This approach fails to empower the people or foster self-sufficiency. Instead, it preserves the very conditions it seeks to alleviate, trapping the country in a perpetual state of crisis management.

To break free from this cycle, the government must invest in long-term solutions, such as enhancing education and healthcare systems, building essential infrastructure, and creating a conducive environment for job creation. By focusing on these areas, the government can lay the foundation for sustainable economic development. Furthermore, the government must prioritize good governance and accountability.

Corruption has long derailed development efforts in Nigeria, and it is crucial that leaders be held accountable for their actions. The public must also play an active role in the governance process, ensuring that policies are aligned with the needs and aspirations of the people. Palliatives offer only temporary relief and fail to address the deeper issues facing Nigeria. Moving beyond short-term fixes and focusing on strategies that empower citizens and drive sustainable development is essential for achieving lasting progress.

•Obamodi Oluwadamilola Faith,

Veritas University Abuja.

August 20, 2024
On the escalating cost of living
- By John Amabolou Elekun
Sir: In recent years, the cost of living in Nigeria has spiralled out of control, pushing millions of citizens into a state of economic despair. This crisis has not only exposed the deep-seated structural problems within the nation’s economy but also the failures of leadership at all levels—federal, state, and local.

As the prices of basic goods and services skyrocket, the average Nigerian is left grappling with the harsh realities of survival in a country where government officials seem more focused on personal gain than public welfare.

Nigeria, Africa’s most populous nation, has seen a dramatic increase in the cost of living. Inflation, currently at double-digit rates, has driven up the prices of essential items such as food, fuel, and housing. Staple foods like rice, beans, and yams have become luxuries for many families. Transportation costs have also surged, driven by frequent hikes in fuel prices, which ripple through every aspect of daily life.

For many Nigerians, the struggle to make ends meet is becoming increasingly untenable. The minimum wage, set at #70,000 per month (approximately $42), has not been adjusted to reflect the rising inflation, leaving millions of workers underpaid and overburdened. In urban areas like Lagos and Abuja, the cost of rent alone can consume nearly all of a low-income worker’s salary, leaving little to nothing for other necessities.

The blame for this dire situation lies squarely on the shoulders of Nigeria’s leaders. At the federal level, poor economic policies, corruption, and a lack of foresight have exacerbated the crisis. The removal of fuel subsidies, for instance, was implemented without adequate measures to cushion the impact on the poor and middle class. Meanwhile, state and local governments have largely failed to implement policies that could alleviate the suffering of their constituents.

Instead of addressing these issues head-on, many government officials seem more interested in enriching themselves at the expense of the people. The budget allocations meant for public services often end up in private pockets, while transparency and accountability remain elusive. Public funds are mismanaged, and corruption is rampant, leading to a grossly inadequate provision of essential services such as healthcare, education, and infrastructure.

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It is high time that Nigerian leaders are held accountable for their actions. The government’s primary responsibility is to serve the people, ensuring their welfare and providing an environment where every citizen can thrive. Unfortunately, the current reality suggests a leadership that is disconnected from the plight of the average Nigerian.

Civil society organizations, the media, and the public must continue to demand transparency and accountability from those in power. There is a need for a comprehensive audit of public spending, particularly in areas that directly affect the cost of living. Furthermore, the government must prioritize policies that will reduce inflation, create jobs, and improve access to affordable goods and services.

The escalating cost of living in Nigeria is a ticking time bomb that requires urgent attention. The government, at all levels, must rise to the occasion and implement policies that will address the root causes of this crisis. This includes tackling corruption, improving economic management, and ensuring that public resources are used for the benefit of all Nigerians.

If the current trend continues, the social and economic fabric of the nation will be further strained, leading to increased poverty, social unrest, and a decline in the overall quality of life. The time for change is now, and it must start with the leaders who have sworn to serve the people. Nigerians deserve better, and it is the government’s duty to deliver.

•John Amabolou Elekun,

Iju-Ajuwon, Lagos.
August 20, 2024
Food prices continue to drive Nigeria’s headline inflation
- By Kenechukwu Aguolu
Sir: It is no longer news that Nigeria’s headline inflation on year- on- year basis declined for the first time since December 2022. According to the National Bureau of Statistics, it dropped to 33.40% in July from 34.19% in June. It is no fluke as the month-on-month headline inflation declined consistently since March, with June as an exception. It is important to note that inflation only started to decelerate after the Central Bank, at its first Monetary Policy Meeting of 2024, held on February 26/7 , the benchmark interest rate, by 400 basis points from 18.75% to 22.75%. It made subsequent increases, as need arose. The benchmark interest rate is currently 26.75%.

Interestingly, from January to July , food and non-alcoholic beverages inflation contributed to no less than 51.8% of the headline inflation on a year-on-year basis. In July , it contributed to 17.3% of the 33.4% headline inflation rate. The headline inflation rate was lowest in January when food inflation was also at its lowest. Therefore, reducing food inflation is key to the government’s long-term goal of driving inflation to single digit. It is not strait jacket as various factors, some of which are interwoven, have contributed to food inflation in Nigeria.

The rising cost of farming and transporting food commodities to the point of sale has affected the final price of food items. For example, the cost of animal feed, veterinary services, energy, fertilizer, seedlings, machinery and spares, and fuel has risen since the removal of the fuel subsidy and the floating of the naira by the government. Insecurity, which has caused many farmers to abandon their farmland, has led to a decrease in farm produce, causing shortages, especially during the dry season. This has encouraged hoarding and profiteering, with food prices skyrocketing. Food availability was also impacted by the increased demand for our farm produce from neighbouring countries as the devaluation of the naira, made them cheaper.

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It is likely that, in the immediate future, headline inflation will experience more decline but not necessarily on a straight-line basis, because the implementation of the new national policy is expected to increase household spending and raise the cost of producing/offering goods and services as employee wages increase. The Central Bank of Nigeria may be tempted to raise interest rates to slow demand and encourage savings. Also, with the harvest season commencing and the implementation of waivers on tariffs and duties on some essential imported food items, food prices are expected to drop. The recent mobilization of 10,000 agro-rangers by the Civil Defence Corps to secure farmlands across the country, if effective, is expected to encourage people to return to their farms and, in the long run, increase food production in the country. However, the recent fluctuation in the value of the Naira is likely to impact headline inflation in subsequent months.

While we celebrate the decline in headline inflation on a year-on-year basis and acknowledge government efforts in this regard, it is important to avoid a further decline in the value of the naira because of its multiplier effect. Improving the country’s revenue base and balance of trade by optimizing oil production and diversifying the economy will help achieve this. The government should also provide Compressed Natural Gas (CNG) trailers, lorries, and trucks to ease the cost of transportation farm produce. The government should continue to closely monitor events as they unfold and take proactive measures when needed. It should also adopt a robust monitoring and evaluation mechanism for its policies and programs to ensure objectives are met.

•Kenechukwu Aguolu FCA,

Kenerek1@gmail.com
August 20, 2024
Government policies and widespread hardship
SIR: Nigeria, once hailed as the “Giant of Africa” due to its abundant natural resources and strategic economic position, now finds itself entrenched in an economic crisis that continues to worsen by the day. The reality of living and doing business in Nigeria today is defined by widespread inflation, rising unemployment, and a decaying infrastructure that fails to support its youthful population. The nation’s dependency on oil, combined with policy missteps and deep-rooted corruption, has crippled sectors that were once considered the backbone of the economy.

For many young entrepreneurs, the dream of running a successful business in Nigeria has turned into a nightmare of daily struggles. From fluctuating exchange rates and scarce access to foreign exchange to the burden of navigating inefficient government systems, the frustration is palpable. With over 33% of the youth unemployed and businesses closing down due to economic constraints, many young Nigerians are left questioning the viability of their entrepreneurial dreams.

In recent years, the government’s policies, though laden with promises of economic diversification and innovation, have failed to deliver tangible improvements. Instead, these failed promises have widened the gap between government rhetoric and the harsh realities of doing business in a failing economy. As a result, young entrepreneurs, once the hope for revitalizing the economy, are left navigating an economic landscape riddled with obstacles that undermine their potential to succeed.

Nigeria’s economic diversification efforts have been plagued by a series of missteps and inadequate implementations. Government rhetoric has long promised a shift away from oil dependency, with initiatives aimed at bolstering sectors such as agriculture, manufacturing, and technology. However, these promises have often failed to translate into actionable strategies or substantial results.

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Agriculture, for instance, was expected to become a major driver of economic growth. Despite the introduction of various support programs, the sector remains underdeveloped due to poor policy execution and insufficient infrastructure. Efforts to modernize farming and improve food security have been marred by insecurity, corruption, mismanagement, and inadequate support systems. As a result, Nigeria’s agricultural sector continues to struggle with inefficiencies and low productivity.

Similarly, the manufacturing sector, which was supposed to benefit from industrial policies and incentives, has seen little progress. High operating costs, erratic power supply, and lack of infrastructure, have stifled growth leaving many factories unable to compete with cheaper imports. The government’s failure to create a conducive environment for local production has left the sector stagnating while Nigeria remains heavily reliant on imported goods.

The technology sector, though burgeoning with potential, also suffers from inadequate support and infrastructure. While tech hubs and start-ups emerge, they are frequently constrained by poor and costly internet infrastructure, unreliable electricity, and insufficient government backing. The disconnect between the government’s promises and the realities faced by tech entrepreneurs further exacerbates the sector’s challenges.

To overcome these obstacles, Nigeria must undertake a comprehensive reform agenda that addresses policy failures, supports entrepreneurship, and fosters a more stable and inclusive economic environment. This includes addressing bureaucratic inefficiencies, reducing tax burdens, investing in infrastructure, and ensuring that policies are implemented effectively and transparently.

To revitalize the economy and support entrepreneurial growth, Nigeria must commit to meaningful reforms and address the underlying issues that have stifled progress. Only through genuine commitment to policy reform and infrastructure development can the country hope to achieve sustainable economic growth and provide a supportive environment for its young entrepreneurs.
- Msonter Ijoho, <msonterijoho@gmail.com>
August 19, 2024