Category: Opinion

  • Tackling Africa’s climate crisis

    Tackling Africa’s climate crisis

    By Olayinka Oyegbile

    Africa has long been the junkyard of the West. Whatever is not needed or that the West finds no longer useful or needed by it, by its turning harmful nature, is shipped or sent to Africa. That is the unfortunate fate of a continent that is rich and poor at the same time. A continent that is held down by its leaders and its rich resources.

    The film, Climate Change: Africa’s Cooked and Sinking Communities, which premiered at the recently concluded Climate Change summit in Dubai, United Arab Emirates (COP28), tries to tackle and show the challenges facing the continent; expose it to the world and other delegates at the summit.

    Most Nigerians still remember what happened in the eighties at Koko in the Niger Delta area when toxic cargo was deposited at the coast of the village. The country was scandalised because the toxic material did not originate from the country. Since the Koko toxic scandal, Africa continues to be the dumping ground for wastes that it didn’t produce. The continent’s vast landscapes and natural beauty which should be its assets are being turned into a curse from the drilling of oil to illegal mining activities that have exposed citizens to the vagaries of modernity which has not served any positive purpose for them.

    In tracing how the continent has fared with the issue of climate change, the producers of the film visited what they called three “frontline communities” on the continent that serves as the typical communities that have been affected by the activities of mining, oil exploration and other nefarious activities mostly championed by Western companies. The three affected communities visited are Aiyetoro community in Ondo State in the western part of Nigeria to represent the West Africa sub-region, Kambele town in Cameroun for Central Africa and Taita Taveta County, Kenya (East Africa).

    From Aiyetoro to Kambele and Taita Taveta County, the stories are the same; stories of woes, tears and devastation of how climate change has torn apart the communities that were once together living happily and surviving and building their lives around agriculture or fishing. 

    For instance, in Aiyetoro, the film shows how the impact of climate change has altered the economic, social and relational lives of the citizens and brought woes, miseries and sickness hitherto unknown to their lives and existence.  The resultant effect of the extraction of fossil fuel has left the society and its environment damaged beyond repair and the once arable and fertile lands have been abandoned while activities that have tampered with the ocean have continued to creep into the land areas thus eating their lands and shrinking the space available to them to pursue any legitimate business.

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    The story is not different in Kambele, Cameroun. The search for gold has deprived the people of their arable lands and rendered them vulnerable to diseases and ailments that were hitherto unknown but are results of the crude and new technology that is being deployed to prospect for the precious mineral. One is confronted by vast arable lands that have been rendered desolate and despoiled by activities of companies in search of gold not minding the resultant effects on the citizens. The resources that were deposited to make the people live a happy life have been turned into a nightmare and a curse a la Black Gold. 

    Taita Taveta Country in Kenya is not different. It is the same story of gnashing of teeth and groans over the destruction of lush vegetation by activities of prospectors who have wiped out rich agricultural history of communities producing sisal, dairy, beef and rich and nourishing fruits. A county that has become a skeleton of its old self with its fortunes turned into misfortunes. A county that was once rich and self-sufficient now has to go cap in hand in search of pittance from the same people who despoil its riches and rendered it beggarly.

    The residents are helpless and in search of environmentalists who would help them make their plaintive cries heard and hearkened to by the world to save them from imminent calamity and the wrath of nature.

    It is these acts of climate injustice that Corporate Accountability and Public Participation Africa (CAPPA), the producers of the film, intend to expose to the world and call for redress for the victims. Taking testimonies from residents of the three communities, the docu-film has been able to show in graphic detail how the continent is coping with the climate injustice which must be redressed by the perpetrators of the ecocide.

    In pursuing this course of action, the producers spoke with one of Africa’s leading environmentalists, Nnimmo Bassey, who minced no words in calling for urgent action to address the issues raised in the film. As according to him, “When we want to see an example of climate injustice in the world, Africa is a perfect example because Africa has contributed a minute amount of greenhouse gases into the atmosphere and yet she is taking all the beating and all the impacts.”

    How to redress this imbalance and injustice is what the film has set out to do.  It is heart-lifting that the issues have been raised through this film to poke the conscience of the world and call attention to the injustice; it is now left for the leaders of the continent, some of whom were at COP28 to walk the talk. But are they ready? CAPPA has pricked them and pointed their eyes in the direction to go. It is left for them to hearken.

    The agenda has been set for them to consider. The film is produced by CAPPA and directed by its Executive Director Akinbode Oluwafemi with support from the Climate Emergency Collaboration Group.

    • Dr Oyegbile is a Lagos based journalist, writer and communication consultant.

  • Data protection legislation and future of digital economy

    Data protection legislation and future of digital economy

    By Muhammad Mikail

    On June 12, President Bola Ahmed Tinubu signed the Nigeria Data Protection Bill into law, setting the historic course for a new data-protected Nigeria. As a matter of fact, the bill was among the very first bills assented to by President Bola Ahmed Tinubu on assumption of office. This is no doubt a demonstration of Nigeria’s commitment to safeguarding digital privacy and building trust with global partners and stakeholders; a bold statement and alignment with the cliché’ ‘hit the ground running.’

    The newly assented Data Protection Act 2023 provides a legal framework for the protection of personal information, safeguarding people’s basic rights and freedoms, while supporting the establishment of ‘The Nigeria Data Protection Commission (NDPC)’ for the regulation of processing of personal information and data. Hence, the law doesn’t only address privacy concerns but also sets the stage for responsible data usage; fostering, secure, trustworthy and a progressive digital economic environment.

    This also signifies the federal government’s full-proof commitment to the “Digital Transformation Strategy for Africa (2020-2030)” as commissioned by the African Union (AU). The overarching objective of the “Digital Transformation Strategy for Africa (2020-2030)” is for every country within the African continent “to harness digital technologies and innovation to transform African societies and economies to promote Africa’s integration, generate inclusive economic growth, stimulate job creation, break the digital divide, and eradicate poverty for the continent’s socio-economic development and ensure Africa’s ownership of modern tools of digital management.” The Nigeria Data Protection Commission will be a major player in achieving this lofty goal.

    At one point, there was a lot of scepticism by development partners, international financial institutions and critical stakeholders in the digital economy and even potential investors about Nigeria’s lack of data protection legislation.      

    Addressing these concerns, the federal government under the former President Muhammadu Buhari, established the Nigeria Data Protection Bureau (NDPB) in 2022 as the regulatory institution responsible for ensuring that people’s personal information is kept private and safe when used for ‘digital things’ with Dr Vincent Olatunji as the national commissioner. However, the bureau lacked a law establishing it and giving it the robust legal framework required for a full-fledged agency of government to adequately address issues bordering on security and privacy of data in Nigeria.

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    In January, the Federal Executive Council (FEC) approved the Nigeria Data Protection Bill presented by former Minister of Communication and Digital Economy, Isa Ali Ibrahim Pantami for transmission to the National Assembly for consideration.

    The then Nigeria Data Protection Bureau, NDPB now NDPC led by the national commissioner, Vincent Olatunji, in collaboration with the Nigeria Digital Identification for Development Project, (NDID4D), worked with critical stakeholders, Ministries Departments and Agencies (MDAs), captains of industries and policy makers in perfecting the bill.

    A Focus Group Discussion, national policy dialogue and validation workshop was held to present the draft bill to stakeholders, the 9th National Assembly, and the Federal Ministry of Justice for their buy-in, comments, criticism, and suggestions to improve the bill.  Prior to that, Nigeria had no policy instrument that focused on supporting data privacy and data protection.

    Described as one of the most forward-thinking legislations across the African data-ecosphere, the Nigeria Data Protection Act recognizes innovations, block-chains, Artificial Intelligence and robotics. The Act also fosters an environment where companies prioritize robust cybersecurity measures and protecting sensitive personal information from unauthorized access.

    Furthermore, the law empowers users by ensuring that their data is handled responsibly and ethically; since as a fact, the law emphasizes informed consent, which enables users to make conscious decisions regarding the use of their data. With this regulation, organizations are bound by law to promptly adapt their practices to comply with the new data protection standards. This brings balance between leveraging data for business growth and respecting individuals’ privacy rights.

    In terms of job creation, the national commissioner launched the Nigeria Data Protection Strategic Roadmap and Action Plan, NDP-SRAP 2023-2027 on December 13 in Abuja. The action plan is expected to create about 500,000 jobs and generate more than N125 billion in revenues.

    Vincent said in an interview that the NDP-SRAP 2023-2027 is in conformity with President Bola Ahmed Tinubu’s Renewed Hope Agenda. He said “part of the ‘Renewed Hope Agenda’ of the President Bola Ahmed Tinubu’s administration is to create about two million jobs in the digital economy sector. The data protection sector alone could create more than 500,000 jobs.”

    According to the national commissioner, “The NDP-SRAP comprises interlinked initiatives and activities like job, wealth creation, human capital development, revenue generation, foundational initiatives for the digital economy and enhancing Nigeria’s global reputation. These activities are expected to create about 500,000 jobs, generate revenue of more than N125 billion and expand the sector within the lifespan of this roadmap”.

    In the same vein, the former Minister of Communication and Digital Economy, Pantami, was quoted in an interview to have said that “in two years of the implementation of the Nigeria Data Protection Regulation, NDPR, a novel sub-sector of the economy was created, 7,680 Nigerians were employed. Nigeria was appointed as the vice chair of the Data Protection Laws Harmonization Working Group at the African Union (AU) and was the only country in Africa to publish a data protection report in two years.

    According to the DG/CEO of the National Identity Management Commission, Abisoye Coker-Odusote, “integrated identity is the backbone of e-governance initiatives as it provides an enabling environment for key government programmes of social safety net, financial inclusion, as well as for companies that want to provide innovative products and services to people.  She said, “An integrated identity system will strengthen the government’s fiscal management, promote good governance and transparency through inclusivity and social equality, as it ensures that marginalized and vulnerable populations are not excluded from government services.”

    The Nigeria Data Protection Act is an enabler of inclusive identity issuance and management and a precursor for the growth, integration, and stability of Nigeria’s digital identity system. It is part of efforts to issue legal digital identities to 99.9% of people in Africa as part of a civil registration process by 2030.

    In this vein, the Act serves as the launch pad for the government’s efforts in building inclusive digital skills and human capacity across the digital sciences, judiciary, and education, both technical and vocational, to lead and power digital transformation including coding, programming, analysis, security, block chain, machine learning, artificial intelligence, robotics, engineering, innovation, entrepreneurship, and technology policy and regulation. This is evident in the recent launch of the 3 Million Technical Talent (3MTT) programme by the Minister for Communication, Innovation and Digital Economy, Bosun Tijjani. The programme is aimed at building Nigeria’s technical talent backbone, powering her digital economy and position Nigeria as a net talent exporter with the first phase of the programme, executed in collaboration with NITDA is set to involve multiple stakeholders including fellows, training providers, partners, and placement organizations.

     Consequently, the nation hopes to witness robust digital economic growth especially with the growth of digital platforms. These platforms are essential elements of digital infrastructure and can serve people, businesses, and government agencies in all aspects of life, including healthcare, education, commerce, transportation, and public benefits. Digital platforms serve or enable other products or services. For the people who use these platforms to receive their monthly pensions, securely login to a government e-services portal, pay their utility bills, submit a complaint, access public information, or find a person to rent their car, these platforms can provide a seamless service delivery experience that increases user convenience, savings, and agency. For governments, digital platforms can increase the efficiency and effectiveness of core functions and services; reduce unnecessary duplication of systems; combat fraud.

    Finally, as data subjects and responsible citizens, we must stay informed about data protection laws; demand transparency from organizations that collect our data and support NPDCs initiatives to sustain and promote international cooperation on data protection, its continuous improvement, and efforts to secure our digital economic future.

    • Mikail writes from Abuja and can be reached via muhammadnmikail.mm@gmail.com

  • Africa will be poorer with the ‘drop-fossil-fuel’ pact

    Africa will be poorer with the ‘drop-fossil-fuel’ pact

    By Ikenna Emewu

    Reasonable occupants of our planet can’t argue the need to start now and do as much as can be done to check the slide of our home planet into climatic crises. The earth and the ecosystem never change save the changes we, the human factors cause.

    The effort of the UN and other agencies to make the world act fast is quite encouraging and welcome as renewable energy alternatives are favoured to protect the earth with their almost zero pollutants and emissions. The efforts have engendered more research and the production of electric cars, buses, trains, industrial machines, and more.

    But these bodies seem to be in a hurry to manacle the entire world into this straightjacket of dropping what we have, the fossil fuel, just overnight.

    In the past 150 years, fossil fuel has been the dominant energy force. Even today with the rising crusades against it, it still constitutes 80 percent of global energy consumption, directly and indirectly. No country is left out of its usage, and it raises the question of whether there is any possible research into eliminating or drastically reducing the harms of fossil fuels while it remains in use.

    On ranken-energy.com, 144 to 6,000, bi-products of crude oil are listed. These are raw material bases for hundreds of sectors of the economy and are classified into four broad products – solvents, diesel fuel, motor oil, and bearing grease. Each has 35 products all deployed in further production of thousands of industrial goods. When fossil fuel goes, they all go with it.

    In the efforts so far, including of course the immediate past summit, COP28 in Dubai, the fall guy to re-green our earth has been fossil fuel which most countries and systems need to fuel their survival until the day they will phase it out. If they hurry into re-greening without fossil fuel, they will wither too fast from the vagaries of other deficiencies than the ecology, while the partially green earth still limps on.

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    On December 13, the issue blew open that the world agreed to drop fossil fuel in the next 27 years. The statement read that “Countries finally agreed, for the first time, to transition away from fossil fuels in Dubai on Wednesday to avert the worst effects of climate change after clashing over whether to include the wording “phase-out of fossil fuels” in previous drafts. The global stocktake text has been adopted, with no objections.” 

    The deal as finally sealed will leave the poorer countries, including Nigeria which runs a mono oil-based economy to choke to death as most of them never in the past made any safeguard efforts on survival in case oil fails.

    Disruptions will surely happen to the poor countries as they don’t produce machines of any type – industrial, automobile, etc. that rely on fossil fuel. Those that produce them have started winding down and phasing out most things that use fossil fuel.

    The statement that: “While the US, the EU, and small island nations were among those demanding a commitment to phase out coal, oil, and gas, this was rejected by oil-rich nations including Saudi Arabia and Russia,” is no assurance. It is just a matter of time before nobody remembers this to implement. Don’t forget the oil boom era when OPEC countries held the large economies by the jugular in the very early 1970s and how the US bullied them to submission with all manner of unilateral, unbridled merciless, and coercive diplomacy. That history may soon repeat in the next 10 years or earlier.

    I truly sympathise with African countries that produce almost nothing and bring only 4% of traded goods to the global market. The continent is going to face severe hardship in multiple dimensions.

    Even the cheaper solar electricity option is not exploited by Nigeria and other African countries as they should. I am not aware of solar power farms built by governments to augment the lack of hydroelectricity which relies on fossil fuel to power the turbines. What we have are just droplets by a few individuals in their homes and on a few streets to light them at night.

    A sharp and abrupt alteration will tilt the global economic scale and create another problem that would be larger than what we intend to solve which would be better realised when we gradually take on the journey.

    The smaller economies that rely on fossil fuel should tread with utmost caution in order not to step into a waiting landmine. Indeed, the haste with which this agenda is pursued makes me suspect that there is more to it than we know.

    In the late 1970s, the tide of the global economy turned towards a pro-market system that later got forcefully rammed down the throats of all countries, even those that were the least ready.

    Champions of the new system canvassed that it was a one-size-fits-all thing. Even though they had embarked on the journey for close to 40 years after they created the Bretton Woods institutions that rebuilt Europe from the ruins of World War II through public welfarism, it didn’t matter to them whether others were ready or walked at an equal pace.

    With nothing as the foundation, all countries were cajoled to jump on the train of the pro-market system and told lies of the benefits to jettison every plan and policy of the government to continue with welfarism and cover the inherent gaps elicited by misrule-induced poverty. Most of those poor victims since the late 1970s still live at the mercy of the overbearing strategists who care not about their survival but rather force on them grants, loans, and expertise from the UN and its organs.

    Perpetually, these countries have been emasculated debtors with no respite as the overlords brag about their kindness, not wanting to mention that they give loans with the right hand and subtly take back the money with the left.

    Even as a pro-environment person, I worry if the net zero campaign targeting just the next seven years in the short term and 20 more years in the long term is another of such gambit.

    The net-zero decrees: “To keep global warming to no more than 1.5°C – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.”

    Renewable energy usage at the global scale jumped to 29% in 2020 from 27% in 2019, while biofuel use at the industrial level increased by just 3%. That sounds positive, but the gap is still wide and will need a long-term overhaul, policy direction, and concerted implementation for the concerned countries to wriggle out of the climate trap. As African countries mobilise thousands of delegates to COP conferences, they contribute nothing other than signing implementation death warrants for their country’s economies. 

    Renewable energy use increase as demand for all other fuels declined. The primary driver was an almost 7% growth in electricity generation from renewable sources. Long-term contracts, access to the grid, and continuous installation of new plants underpin this growth.

    Renewable electricity generation in 2021 was projected to expand by more than 8% to reach 8,300 TWh, the fastest year-on-year growth since the 1970s with solar PV and wind contributing two-thirds of growth. China achieved almost half of the global increase in renewable electricity in 2021, followed by the United States, the European Union, and India. 

    The heaviest users of renewable energy are mainly in Europe and include:

    Iceland – 86.87%

    Norway – 71.56%  

    Sweden – 50.92%  

    Brazil – 46.22%

    New Zealand – 40.22%

    Denmark – 39.25%

    Austria – 37.48%

    Switzerland – 36.72%

    Finland – 34.61%

    Colombia – 33.02%

    On the installed capacity to generate, the superpower economies swing the balance with China leading the whole world with a capacity of around 1,161 gigawatts. The rest of the top three are the USA with 352 gigawatts, and Brazil that is Number 4 world’s highest user.

    It is in situations like this I see China as a shining example of how to approach these dicey diplomatic issues. Already, China leads the rest in installed capacity and generation, even though that is still like a drop in the ocean to their energy consumption. Rather than China dropping coal energy as the world cajoles for the gain of the champions of this idea, China holds to coal but steadily works on advancing clean coal technology (CCT) to reduce the hazards from emissions and pollutants to almost the barest minimum. That is why China has hundreds of coal power plants running, including that of Nindong power base in the Ningxia-Hui Autonomous Region north of the country.

    But to those countries, especially in Africa, that wait for others to think on their behalf, there is danger ahead. They will obey and drop fossil fuel without any ready alternatives to please their masters like they did in the market economy gamble.

    One of the ready options is such countries renegotiating and securing a longer time to implement the net zero agenda. But even if they do, would the manufacturer or capital-exporting economies turn back the hands of time for Africa and other poor and dependent worlds?

    • Emewu is journalist and publisher.

  • Artificial Intelligence: What teachers and students need to know

    Artificial Intelligence: What teachers and students need to know

    By Ganiu Bamgbose

    Artificial intelligence does not come with the options of “to be” or “not to be” in academia. If nothing, the intelligence that is included in the term makes it “a child of necessity” to intellectuals. To say artificial intelligence is not welcome for scholarly activities is like a farmer saying a tractor is not welcome on his farmland. Matter-of-factly, to question or dispute the relevance and deployment of artificial intelligence in research works by either established or budding scholars will, in my opinion, be barbaric.

    Britannica defines artificial intelligence as a term “frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn from past experience”. It is the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. Artificial intelligence combines the intellectual knowledge of different fields such as computer science, physiology, and philosophy.  There are several approaches to this interdisciplinary science of artificial intelligence. To solve real-life problems, scientists and researchers apply distinct methods to this advanced technology and improve computer machine functionality.

    In their book titled “Artificial Intelligence: A Modern Approach”, Norvig and Russell mention four different artificial intelligence approaches: Thinking humanly – mimicking thought based on the human mind; Thinking rationally – mimicking thought based on logical reasoning; Acting humanly – acting in a manner that mimics human behaviour; Acting rationally – acting in a manner that is meant to achieve a particular goal.

    What comes next to mind with the recent debates on the use of artificial intelligence in academic tasks is the question: is artificial intelligence any recent? With the advent of google in 1998, we can say confidently that artificial intelligence has been with us formidably since over two decades. It is indisputable that artificial intelligence has been instrumental in the ease of research for academics and students alike. Only a scholar who still subscribes to traditional pedagogy would question the relevance of artificial intelligence. Traditional pedagogy primarily relies on lecturer-centred instruction, where an expert imparts knowledge to passive learners. This method is based on the authoritative knowledge of the teacher and textbooks with disregard for interactivity, collaborative effort and technological affordance. A scholar in the 21st century should not hold tightly onto traditional pedagogy.

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    So, if artificial intelligence has come to stay and is evidently of advantage to academia, the next concern is whether it comes with challenges or not. Most definitely, it does. Several, in fact.

    Phenomena are hardly static. They grow or decline. The rapid growth of artificial intelligence has become a big threat to human intelligence. Human intelligence has been explained as a collection of common mental traits such as creativity, perception, and memory. Artificial intelligence is not capable of human ingenuity. Human ingenuity is the way in which human minds have influenced how we think, work, play, construct and conduct friendships and other relationships, interact with each other, find solutions to problems, cause problems, transform things and rationalize thought. While artificial intelligence serves as a veritable tool in the hands of a researcher, a budding scholar or a student, it cannot take the place of human intelligence which involves practical assessment of real-life situation and discernment. 

    To properly narrow this to the academic environment, the advent of certain kinds of artificial intelligence such as ChatGPT (Chat Generative Pre-trained Transformer) is resulting in diminishing return for human intelligence. There is the preponderance of knowledge seekers yet a dwindling number of knowledgeable people. 

    Wikipedia explains ChatGPT as a chatbot developed by OpenAI and launched on November 30, 2022. Based on a large language model, it enables users to refine and steer a conversation towards a desired length, format, style, level of detail, and language. If you seek a five page document on any topic or subject on ChatGPT, you certainly will get it almost immediately.

    This tool has become the succour of lazy students in recent times.  They deploy it as a complete replacement for their own intellectual input rather than being a useful guide or insight into their research interest. You have to be sensitive as a lecturer or supervisor to detect this complete plagiarism and not to even applaud your fraudulent students.

    One of the simple ways to detect this intellectual fraud is that the ChatGPT does not reference existing works on the subject matter, and if it does, it does not reference locally relevant studies and authorities, and cannot appropriately contextualise a study. You therefore must read carefully for traces of appropriate contextualisation to detect the complete use of ChatGPT or otherwise. But again, is the use of ChatGPT and other forms of artificial intelligence wrong? Of course no! Times have offered them to us and we have to utilise them, but not as a replacement for human intelligence and input.

    For researchers, budding scholars and even students, seeking general or background knowledge on any topic through these platforms is not against academic ethics, but this must not replace human ingenuity, proper domestication of knowledge, and application of insights to one’s peculiar situation. 

    In conclusion, artificial intelligence has come to stay and nobody’s validation is needed on this reality. However, artificial intelligence cannot, at least for now, serve as a replacement for human intelligence and ingenuity. Therefore, it is a gift for us to use, but not to abuse. 

    • Bamgbose, PhD, writes from the Department of English, Lagos State University.

  • ‘Agberos’, transport unions and public order

    ‘Agberos’, transport unions and public order

    By Adesegun Ogundeji

    Popularly referred to as Agbero, operators of the National Union of Road Transport Workers (NURTW) and Road Transport Employers of Nigeria (RTEAN), are major actors in the transportation sector of Lagos State, and indeed other states across the country.

    To some, agberos are into legitimate undertakings, while others simply see them as interlopers who compound the state’s transportation challenges.  

    However, irrespective of contrary opinions, in the real sense of it, the agbero, by its original concept, is doing a legitimate business. Shocked? No doubt, I am sure a lot will be surprised to hear this, but don’t crucify me yet.

    Just wait a minute!  Is a travel agent doing a legitimate business? Well, the answer is yes. By implication, if a travel agent is doing a legitimate business, then an agbero is equally into a legitimate business. The point is that our understanding of Agbero does not tally with its original conception.

    What an agbero (commuter’s link man) does is not different, by inference, from what a travel agent does. Agberos have been operating in the transport sector since the days of the yore, acting as middlemen between the transporters and commuters.  It is quite plausible that the ‘Gen Z’ might find it tough to understand this narrative because time has changed.

    In those days, willing travellers booked seats ahead with the agbero who in turn informed the transporter to reserve a specific number of seats for people who had booked ahead with him. The implication is that if you are not on that itinerary, you go nowhere.

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    Are you getting the gist?

    Therefore, for his time and efforts in gathering passengers for the vehicle, the transporter gives him an agreed percentage of the fare. In-fact, in the olden days, travellers who live far from the Agbero’s (travel agent) abode sleeps over in his house so as not to miss the bus.

    I experienced this in my series of travels to Ikuehi, Ihima in the now Adavi Local Government Area of Kogi State. Adi Jimoh was the transport agent of Suru Ohu ni (Surulere) Transport Company in Ikorodu. His base was Ojogbe, while Idi Mangoro in Agege was the major loading point for vehicles going to Ebiraland, generally referred to as Okene.

    As school resumption approached, the agent informed our parents when a vehicle will be available. The same happened upon vacation.

    What I have laboured to establish from the foregoing is to give legitimacy to the business of agbero both historically and legitimately.

    But then, in relation to the concept established thus far, does agbero still exist in Lagos?

    I dare to say no. Those roughnecks, guttural voices and fierce looking men we now call agberos are mere opportunistic elements extorting money from hardworking drivers.

    Today, no one acts again as a travel agent for anyone, at least those travelling by road. Not even on the inter-state routes. In the modern era, there are designated parks (public and private) where vehicles are ready for boarding. The traveller is, therefore, at liberty to plan his trip without the help of an agent.

    Therefore, agbero, in its present form, is nothing but a fraud. But what of the NURTW and RTEAN?  Are they still relevant? In my view, they are. They are not different from the Nigeria Union of Journalists (NUJ), Nigeria Medical Association (NMA), Nigeria Bar Association (NBA) and even the Nigeria Labour Congress. They were established and registered to protect the interest of their members.

    The major difference, however, lies in the fact that while the road transport associations deploy crude methods to collect their dues on the roads, others do the same through more dignifying tactics. Their members pay through monthly deductions. They maintain a verifiable membership list and relate with their members decently.

    This is one area that the transport unions need to work on as the only nexus between them and their members (drivers) is the daily ‘extortion’.

    Thus, the modus operandi of transport unions and the boys unleashed on the transport workers as revenue collectors on the roads is antithetical to the posture of being an association for the welfare of the road workers. Incessant violent clashes between the “welfarists” (unions) and the supposed beneficiaries (drivers) speak volume about their relationship.

    Commercial bus operators who claim to belong to the transport unions are those who join in revenue collection when they have no vehicle to drive. They are so lawless and in most cases violent. The larger majority of transport workers are not members of the unions and they don’t subscribe to them, except by coercion.

    Few weeks ago, some threatening public notices appeared in some bus stops, including Oworonshonki, Oshodi, Ikeja and Agege, warning operatives of the Lagos State Traffic Management Authority (LASTMA) to stay clear of the bus stops. When that failed, some supposed drivers supported by urchins staged protests in the affected areas, alleging LASTMA’s high handedness.

    A deeper look into the incident shows that it was a ploy to divert attention as evidence clearly shows that most of the main actors were no drivers. They were union members who see the enforcement of rules against commercial vehicles stopping in some places where they extort money from drivers as robbing them of ‘revenue’.

    This is not to say that there are no proven cases of some law enforcement operatives going overboard and beyond their rules of engagement, but a fair assessment of road use in the state reveals that traffic laws are obeyed in reverse order.

    The law enforcement agents are attacked verbally and physically. In some cases, the attacks have led to the death of innocent people, especially those delivering crucial public services to the people.

    Lagos drivers, especially commercial bus operators, want to have things done their way, irrespective of the pains they cause to other road users. They hate enforcement of rules and regulations. Their sympathizers and co-law breakers are quick at accusing the government of trying to generate revenue from traffic offenders.

    Truth is that fines are not taxes and levies. Payment of fines is optional, depending on if you are willing to obey the rules. The truth is that enforcement costs the government more than the possible revenue that might accrue from the so-called fines.

    The agberos no longer have any business on the roads. They have outlived their usefulness. On the other hand, the NURTW and RTEAN, being legal entities, should opt for more civilized ways of conducting their activities without constituting public nuisance. This is the 21st century, Lagos deserves the best.  

    • Ogundeji is Director, Public Affairs, Lagos State Ministry of Information & Strategy, Alausa, Ikeja. 

  • COP 28 and the allure of Dubai to Nigerians

    COP 28 and the allure of Dubai to Nigerians

    By Magnus Onyibe

    Just as flowers are drawn to butterflies, Nigerians are similarly captivated by Dubai, United Arab Emirates (UAE). To the ordinary Nigerian, Dubai embodies a fusion of London, Paris, and the bustling metropolises of New York and Los Angeles.

    The convergence of Nigerians in Dubai for the ongoing COP28 extends beyond a typical climate change conference. At this event, the most significant threat to humanity in the current century is under discussion, and over 100,000 delegates from 92 countries worldwide, including scientists, political figures, and business leaders, are participating in this discourse.

    The primary objective of the 1,411 Nigerian delegates attending COP28 in Dubai was not solely focused on discussing strategies to address environmental concerns and safeguard the planet. Many critics were astonished that, amid the profound economic challenges faced by the populace resulting from the economic reforms—specifically, the elimination of subsidies on petrol pump prices and the devaluation of the naira by the current administration—there appeared to be a lavish gathering in Dubai. Nigerian public office holders were perceived to be indulging in extravagant activities at the expense of limited public funds, causing widespread disapproval.

    But it appears that the prevailing perception is not entirely accurate. So it is crucial to convey the truth to the public in order to dispel any misconceptions regarding the substantial participation of Nigerians in COP 28. This could have helped avoid the erroneous belief that the extensive attendance was merely for frivolous purposes and an unwarranted expenditure of public funds

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    Clearly, public outrage was largely fuelled by opposition parties, with Peter Obi, the 2023 presidential candidate of the Labour Party, also known as OBIDIENTS, spearheading the effort. He asserted that the government had funded the attendance of the 1,411 Nigerian citizens registered by Dubai authorities.

    Following the controversy sparked by the erroneous assertion, pertinent authorities have since clarified that government funds supported only 422 delegates, with 63 hailing from the presidency. Despite this clarification, a substantial number of Nigerians still find the figure excessive, vehemently denouncing it as an imprudent utilization of public resources.

    Meanwhile, this is not the first time that President Tinubu’s administration has found itself under scrutiny due to issues related to Dubai. Following his attendance at the G-20 summit in India, President Tinubu made a stopover in Dubai as part of an investment drive.

    After productive discussions with Dubai leaders, President Tinubu’s spokesman, Ajuri Ngelari, officially announced the uplifting news that the visa ban for Nigerians traveling to Dubai had been lifted. This announcement was met with widespread enthusiasm and optimism.

    Upon the revelation that the young man’s assertion was unsubstantiated, it became evident that he had pre-emptively jumped to conclusions. Diplomatic matters of such magnitude typically require time to fruition, and the subsequent backlash was substantial.

    It seems the aftermath of this incident had not subsided when a new development emerged concerning the purportedly inflated count of Nigerian attendees at COP28.

    Let’s be unequivocal in stating that there is merit, rather than fault, in opposition parties scrutinizing the ruling party. This is an inherent aspect of democracy and is fundamentally advantageous for Nigerians.

     Holding their political leaders accountable for financial prudence is essential.

    As the Indian anti-colonial nationalist and political ethicist Mahatma Ghandhi posited, “Honest differences are often a healthy sign of progress.”

    The public is rightfully demanding greater fiscal responsibility and transparency from those who occupy influential positions in the corridors of power, symbolized by name plates adorning offices in Aso Rock Villa, the presidential seat of power, the National Assembly (NASS), governors’ mansions across the 36 state capitals, and state houses of assembly.

    Upon careful reflection, it is indisputable that Nigerians possess an abundance of energy, enthusiasm, and proficiency in pursuing both business and pleasure. This inclination is notably exemplified by the significant number of individuals flocking to Dubai.

    The Offshore Technology Conference (OTC), an annual event situated in Houston, Texas, USA—the epicentre of America’s oil and gas industry—has consistently attracted a significant number of Nigerian entrepreneurs.

     This gathering serves as a hub for seeking lucrative business partnerships and franchises from prominent oil and gas corporations, which actively establish a significant presence at the conference.

    I can personally attest to the fact that numerous successful business ventures in Nigeria owe their inception and growth to opportunities secured during the OTC. So, the conference has played a pivotal role in breathing life into these enterprises, contributing significantly to their current thriving status.

    Based on the aforementioned, there is a strong likelihood that Nigerian participants at COP 28 in Dubai, currently facing criticism from the online community, might soon transition into green energy entrepreneurs. This transformation, anticipated to stem from ongoing efforts to cultivate business relationships in the renewable energy sector, has already started manifesting.

    Already, Oando Clean Energy (OCEL), a subsidiary of Oando Energy Resources, has announced the matching of the federal government’s promise at COP28 to acquire 100 electric buses for mass transit as part of her efforts to reduce carbon emissions, aggravating the climate change crisis.

     So OANDO will be delivering 50 electric buses to Lagos State, and the rest will be deployed to states across the country, including the Federal Capital Territory (FCT.

    Also, as part of the COP28 agenda, a Loss and Damage Fund was launched, and over a trillion dollars has so far been raised in pledges.

    It is fortuitous that Nigerian Tariye Gbadegesin, a Harvard University-trained expert, has been appointed the Chief Executive Officer and CEO of the Climate Investment Fund, which is a platform for securing financial support to combat the climate crisis.

    Does that not represent a positive outcome for our country in the manner that Wally Adeyemo is the deputy security of the US Treasury?

    Meanwhile, Nigerians, driven by their entrepreneurial spirit, stand poised to contribute substantively to our economy based on the alliances and partnerships that they may develop from being involved in COP28. Their participation in conferences abroad often translates into increased productivity and the creation of much-needed employment opportunities for our youth.

    Given the current unemployment rate in our country, which has reached an unprecedented 54%, the infusion of entrepreneurial energy is vital. That is more so because it is this pressing concern about unemployment that is likely contributing to the potency of the social media advocacy campaigns, because, as conventional wisdom goes, the idle hand is the devil’s workshop.

    As we are all well aware, private sector initiatives operate independently of the multilateral agreements established by the government of Nigeria with various countries and supranational agencies during COP28.

    While addressing a global audience, President Bola Tinubu, alongside other world leaders at the conference, explicitly pledged to cease gas flaring in the oil-rich Niger Delta. It is widely known that gas flaring is a significant contributor to climate change, and its adverse effects are being experienced globally, with the burden disproportionately affecting less affluent regions.

    Happily, a prominent gas development company, CarbonAi, has signed an MoU with Oando during COP28 for a partnership towards the commercialization of the gas currently being flared from the company’s oil and gas operations.

    There is likely to be more aligning themselves with more Nigerian firms dedicated to oil and gas exploration and contemplating a visit to Nigeria to explore opportunities for participating in the untapped potential of the abundant gas and related resources.

    COP28 stands out as a pivotal event, especially considering Dubai’s historical significance as a haven for Nigerians prior to the imposition of the visa ban on the country. It is noteworthy that an impressive delegation of 1,411 attendees participated in COP28, demonstrating a collective effort to forge partnerships and engage in discussions with other nations.

    Clearly, the primary focus was on addressing the pressing issue of climate change, a global challenge that disproportionately affects the African continent.

     Basically, Nigeria did not attend COP28 in vain, as it did not return empty-handed. Contrary to the narrative pushed by opposition parties that has remained bellicose, particularly in light of the recently concluded elections, Nigeria’s active engagement in COP28 has proven to be a fruitful endeavour.

    • Onyibe, an entrepreneur, public policy analyst, author, democracy advocate, development strategist, sent this piece from Lagos.

  • GlaxoSmithKline’s exit and the Nigerian blame game

    GlaxoSmithKline’s exit and the Nigerian blame game

    By Ashimi Jamiu Adewale

    I have followed the ongoing debate on the exit of GlaxoSmithKline company from Nigeria and the attempts to blame an administration that is less than eight months for the exit of the company.

    Background

    In order to have a proper understanding of my perspective on this issue, I need to provide a background so that the issues at stake will be well understood.

    The white race is a very adventurous and enterprising race. The economic relationship between them and us in Africa was established firmly at a stage they needed raw materials for their industries.

    They established a system of governance and provided infrastructures to extract and transport the raw materials to their industries.

    In exchange, they sold finished products to us. They established companies like Glaxosmithkline to distribute their products in the country.

    We sell cocoa to industries in the western countries and they use it to produce several finished products, Bournvita, Ovaltine, Milo, several chocolates etc. Thus, an unequal economic relationship was established.

    This relationship was sustained for many years, but rapid urbanisation led to more and more demands for finished products from these countries.  The situation encouraged big multinational companies to establish companies in the country to market their products in Nigeria. In some cases, it was convenient for them to establish industries to assemble their products here for distribution.

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    The impact of this unequal economic relationship started being felt in the early 1980s. We initially resorted to taking loans at very exploitative conditions so that we can continue to buy finished products for our use. However, repayments became a problem because the raw materials we sold could not pay for imported items and service loans. So we could not import enough to meet our needs, hence we resorted to rationing. This gave rise to the era of queuing for essential commodities and the attendant hardships.

    To eliminate queuing for essential commodities, the foreign exchange market mechanism was introduced by the experts from the World Bank.

    The way it works is that if we have Nigerians demanding foreign products to the tune of N2 million and we have $1 million in the market; the exchange rate would be N2 to $1. However, because our demand continued to increase, it became N200 million to $1 million. The exchange rate became N200 to $1. Today, it is over N1000 to $1.

    The implication of this steady decline in the purchasing power of the naira is the reduction in standard of living in Nigeria, inability of the import oriented multinational companies to expand and create jobs, massive unemployment and brain drain of our skilled manpower. The rapid decline in purchasing power led to a situation where so many people could not purchase expensive items but look for cheap products.

    Where industries transform raw materials into finished products, there are, usually, massive investments in research. The research activities lead to the creation of new products, and the establishment of more industries. Even when some companies are closing down, new ones are being created to provide better services. These types of opportunities are lacking in countries where multinational companies only engage in the distribution of finished products or assemblies and distribution of products.

     Exit of GlaxoSmithKline and other companies

    The major reason for the exit of GlaxoSmithKline Company and others is not because of the policies of a government that is less than eight months old. Rather, the companies leaving are reacting to unfavourable situations in the very competitive international market. In a situation where several companies from other countries now sell similar products at relatively cheaper prices in the same Nigerian market, the consumers are rational, and they will prefer to pay less to get the same service.

    The mistake, therefore, was made by these companies. They should have invested massively in research activities in our universities to develop more new and better products, continuously establish new companies and employ more Nigerians (because the cost of labour in Nigeria is several times less than what they pay their countrymen). This strategy would have made it possible for them to produce at globally competitive prices. It would have been difficult for competitors from other countries to drive them out of Nigeria. They would have created jobs for our youths, reduce unemployment and poverty.

    However, we Nigerians are also to be blamed because we did not provide the critical infrastructures such as electricity and effective transportation network and enabling environment to attract genuine investors who could invest in research; use our raw materials to produce finished goods for our internal consumption and possible export of excess products.

    If they had done that, they would not be folding up due to competition from other foreign companies.

    Way forward

    Given this background, the government should focus more on provision of infrastructures and creating an investment-friendly environment for companies that are interested in investing in research and processing our raw materials into finished products for internal consumption and export. These are the lessons we should all learn from their exit.

    • Adewale is a retired Permanent Secretary, Lagos State.

  • Urgent need to resolve Ondo political impasse

    Urgent need to resolve Ondo political impasse

    By Edwin Clark

    Dear Mr. President,

    My letter may come to you as a surprise because I am not from the South-West geo-political zone, Ondo State in particular. But as a senior citizen of our dear country, I sincerely believe that we have a duty to give you support and advice in all ramifications, particularly in solving the insecurity issues facing the country, and anything that can escalate it, in all parts, especially in the North-West. Every effort, should, therefore, be made, in this regard, to avert any crisis in any part of the country.

    The on-going impasse in Ondo State can be likened to what happened when our dear late President, Umaru Musa Yar’Adua, was very ill, and did not transmit a letter to the National Assembly in accordance with Section 145 of the 1999 Constitution, to enable the then Vice President, Dr. Goodluck Ebele Jonathan to act as president. I wish to recall that during the time, the nation was almost grinding to a halt because there was no one administratively in charge of the affairs of the country. Various groups such as the Save Nigeria Group, led by Pastor Tunde Bakare and Nobel Laureate Prof. Wole Soyinka, socio-cultural organisations, ethnic organisations including some northern group, the South-Western group led by Bishop Emmanuel Gbonigi, the Ohanaeze Ndi-Igbo, etc, rose up to protest in Lagos and Abuja. It was as though the nation was rudderless. It was at this stage that former Head of State, General Yakubu Gowon, rose up to the occasion when he summoned a meeting of some persons comprising late President Shehu Shagari, late Interim Head of State, Ernest Shonekan, late Dr. Alex Ekwueme, one time Vice President of the country, three former Chief Justices of Nigeria namely Alfa Belgore, Mohammed Uwais and Idris Legbo Kutigi. Others included Lt. Gen. T. Y. Danjuma, rtd, late Mallam Adamu Ciroma, late Alhaji Ahmed Joda, late Chief Solomon Lar and myself. Prof. Jerry Gana and Senator Jonathan Zwingina served as Secretaries The meeting was held at the ECOWAS Secretariat in Abuja. This group became known as the Eminent persons Group. At the meeting, Justice Alfa Belgore came up with the idea of Doctrine of Necessity in order to solve the constitutional logjam the nation was facing. He explained to the group what the doctrine means, and we whole heartedly accepted it as the only panacea to the problem. General Yakubu Gowon then delegated a committee of 5 persons led by late President Shehu Shagari because he had an international assignment to attend to outside the country. The delegation submitted the letter containing the suggestion to the NASS and the then Vice President.

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    The Senate under the leadership of David Mark, as Senate President acted on the suggestion of the eminent persons group and declared Dr. Goodluck Jonathan, Acting President under the Doctrine of Necessity on 9th February, 2010. The House of Representatives followed suit by also adopting the Doctrine of Necessity. On 10th February, 2010, Dr. Goodluck Ebele Jonathan was declared Acting President. At this time, our dear President Umaru Musa Yar’Adua was still at Saudi Arabia receiving medical treatment. On 24th February, 2010, President Yar’Adua was brought back to the country under the cover of darkness, still very ill, and taken to the Villa, unknown to the Acting President. However, while President Yar’Adua was at the Villa “recuperating”, Dr. Jonathan continued to act as the President of the country. Unfortunately, President Yar’Adua could not make it. He died on 5th May, 2010. On 6th May, 2010, Dr. Jonathan was sworn in as President and Commander- In-Chief of the Armed Forces, Federal Republic of Nigeria, in accordance with constitutional provisions.

    Today, we are again faced with a Constitutional debacle. First of all, I wish to thank Mr. President for your intervention into the Ondo State crisis, both as President of the country and as leader of your political party, the APC, in the manner you handled the matter. Your Excellency attempted to be fair and just to all parties concerned, viz, the Legislature, the executive and the entire Ondo people, when at the end of the marathon meeting you held with them, and where every body bared their mind, you directed that:

    All parties should work together;

    That the ailing Governor of the State, Oluwarotimi Akeredolu should remain in office, while the Deputy Governor, Lucky Aiyedatiwa, retaining his position, should preside over the executive;

    That status quo should remain and no member of the Executive should be sacked

    That the Deputy Governor should withdraw his case against the Speaker and the members of the State House of Assembly;

    That the Legislative arm should also abandon their decision to impeach the Deputy Governor, and should also withdraw all actions they previously took to counter the Deputy Governor’s action in the State capital Akure.

    However, what is confusing to some of us, is how the Speaker of the House of Assembly told his members that the Deputy Governor is to sign an unwritten resignation letter, without stating what should give rise or what gave rise to that action. And whether the Speaker has the powers to direct such resignation.

    Mr. President I think there is need to act fast because we have seen that despite your good intentions, the crisis is brewing much tension rather than abating. There is a growing agitation for and against each of the parties. I listened to the argument of Barrister Kayode Ajulo, SAN, saying that whatever action that took place at the Villa, was unconstitutional and that there was enough provision in the Constitution to resolve the crisis. He went further to talk about the inability of Governor Rotimi Akeredolu, whom he described as his friend, to perform his duties as Governor of the State whilst recuperating in his personal house in Ibadan, Oyo State. He went further to state that the signature on the memo allegedly sent to Governor Akeredolu was forged, as he said he is very conversant with the Governor’s signature. He in fact suggested that the signature should be subjected to a forensic examination.

    I also read at Page 6 of Saturday 6th December, 2023, Vanguard Newspaper, a report written by the Ondo State Commissioner for Energy and Mineral Resources to the Deputy Governor of the State titled: “Forgery of Mr. Governor’s Signature on official document”, to the Deputy Governor, stating that the Governor Akeredolu’s signature on the document is forged. He said:  “I write to bring to your attention a critical matter that requires immediate action. It has been confirmed that the signature of Mr. Governor on a certain document has been forged.

    “The irregularities in the signature were first observed when a file from my ministry was returned through the office of the Secretary to the State Government (SSG). This is the only file that has been returned so far out of the five files that were sent for Mr. Governor’s approval about two months ago.”

    But the Ondo State Commissioner of Information and Orientation, Mrs. Bamidele Ademola-Olateju, featuring on the Arise television, debunked Barr. Kayode Ajulo, SAN’s claims. She said the Governor’s signature was not forged. She said “Nobody forges the signature of Mr. Governor. As of today, we have to work for the progress of the state. Those mischief makers should desist from doing so.

    “The State Attorney General, Mr. Charles Titiloye, speaking in the Punch Newspaper of 5th December, 2023, also stated that the Governor’s signature was not forged, describing the “claims as baseless”.

    Like I stated earlier, this matter is building up tension. It is, therefore, my opinion that Mr. President as leader of his ruling APC political party, may want to amend his earlier terms of settlement. And since there is no constitutional provision for such quagmire, because under Section 5 (2) of the Constitution, the State Governments are autonomous and are not subsidiaries of the central government. They are fully in-charge of their State. It is only National Assembly that is empowered to do so under Chapter 1, Part 2, Section 4 Legislative Power which states that:

    •The National Assembly shall have power to make laws for the peace, order and good government of the Federation or any part thereof with respect to any matter included in the Exclusive Legislative List set out in Part 1 of the Second Schedule to this Constitution.

    •The power of the National Assembly to make laws for the peace, order and good government of the Federation with respect to any matter included in the Exclusive List shall, save as otherwise provided in this Constitution, be to the exclusion of the Houses of Assembly.

    Let me add that beyond any constitutional provision and your leadership of your political party, the APC, it is Your Excellency’s moral obligation as father of the country to use your good office to intervene and resolve all manner of political crisis around the country.

    The action of the Ondo State House of Assembly by going to court to prevent the National Assembly from interfering in the matters of the State House of Assembly is also escalating the issues.

    Every facet of Ondo State is currently sharply divided; the executive and legislative arms all have people either supporting the Governor or the Deputy Governor

    Finally, Mr. President, I wish to state that we have enough insecurity in the country, which has largely stretched our security forces. This is why you must urgently and firmly act in the current situation in Ondo State, under a doctrine of necessity. And if I may add, also in Rivers State, for which I will be addressing a separate letter to you in the next few days.

    I will continue to pray for your well being and success.

  • Leveraging infrastructure funds for development

    Leveraging infrastructure funds for development

    By Akorede Folarin

    Infrastructure development plays a pivotal role in promoting economic growth, reducing poverty, and achieving sustainable development goals globally. In Africa, where over 50% of the population lacks access to electricity, the road access rate stands at a meagre 34%, and hundreds of millions lack access to essential services such as drinking water and basic sanitation and hygiene services, infrastructure gaps have severe repercussions on living conditions.

    According to the World Bank, Africa’s decrepit infrastructure curtails its economic growth by up to two per cent annually and cuts productivity by as much as 40 per cent. This underscores the critical need for substantial investments and strategic development in the continent’s infrastructure.

    However, infrastructure projects are typically large-scale and capital-intensive, and traditional public sector funding and commercial bank loans are often insufficient to address the extensive infrastructure requirements of emerging economies such as in Africa.

    Addressing Africa’s Infrastructure Deficit

    To bridge this gap, infrastructure funds have emerged as a powerful tool, and can potentially prove instrumental in transforming Africa’s infrastructure. Leveraging on the over $100 trillion assets under management globally, infrastructure funds mobilize private capital to execute medium- to large-scale infrastructure projects that might otherwise be difficult to finance through traditional means. As specialized investment vehicles, infrastructure funds pool capital from diverse investors, including institutional investors, private equity firms, and development finance institutions (DFIs) to finance infrastructure projects across sectors, thereby enabling efficient deployment of capital and risk-sharing.

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    Professional Management and Structured Investment

    Managed by professional investment managers with expertise in infrastructure investing, these funds identify and assess investment opportunities (including greenfield and brownfield projects), negotiate deals, and manage the assets once they are acquired or developed. Typically structured as closed-end investment vehicles, investors commit capital to the fund for a fixed period of time, ensuring stability and long-term focus.

    Infrastructure funds allocate investments across a range of sectors, including transportation, energy, and telecommunications, and may extend to water and sanitation facilities, and social infrastructure such as schools and hospitals. These funds exhibit flexibility in their investment destinations, spanning both developed and developing countries; however, there has been an uptick in funds focused majorly on emerging economies (like Africa) where there is a large infrastructure deficit and significant potential for economic growth.

    Benefits for Investors

    Infrastructure funds offer investors the opportunity to diversify their portfolios and access a new asset class. With long-term contracts or regulatory structures/incentives that provide long-term stable income, these investments are attractive to institutional investors like pension funds and insurance companies, who have long-term liabilities that require correspondingly long-term assets. Furthermore, by occasionally partnering with public sector financiers and multilateral development banks, these funds can help de-risk infrastructure projects thereby mobilising/attracting significant additional private capital for development projects.

    Aligning Commercial and Societal Goals

    Infrastructure funds can also provide a pathway for investors to achieve both commercial and social or environmental objectives. Many infrastructure projects have significant social or environmental benefits, such as improving access to clean water, reducing greenhouse gas emissions, or creating employment opportunities. Funds focusing on these types of projects can, therefore, enable investors to simultaneously achieve financial returns and positive social or environmental impact.

    Challenges and Risk Mitigation

    Despite their benefits, infrastructure funds face challenges in Africa, including project complexity and political and regulatory risks, particularly in emerging economies like Nigeria. Projects can be subject to delays and disruptions due to changes in government policies or political instability, creating uncertainty for investors and making it more difficult to achieve the desired returns. To this end, proper risk management and oversight are crucial, involving strategies such as diversification across asset types, hedging, sovereign guarantees, and other financial instruments such as put/call option agreements (PCOA), first-loss provisions, etc.

    Infrastructure funds can also benefit from partnerships with other investors and stakeholders, including public sector entities and development finance institutions, leveraging their unique industry expertise, resources, governmental concessions, etc. By working together, these stakeholders can help mobilize the resources (fiscal, human, etc.) needed to reduce the infrastructure gap in emerging economies and promote sustainable economic growth.

    Conclusion

    Infrastructure funds offer a promising avenue for development finance. By structuring attractive investment opportunities and mobilizing much-needed private capital, these funds can help to address the infrastructure deficit in emerging economies (and Africa in particular) while also allowing investors to achieve both financial returns and positive social impact. However, careful management and oversight are essential to navigate the complexities of infrastructure investments and ensure that the desired outcomes are achieved.

    • Folarin is an associate at the law firm, Banwo & Ighodalo, where he specializes on private equity and M&A and project finance.

  • Dealing with NDDC’s funding challenges

    Dealing with NDDC’s funding challenges

    By Ifeatu Agbu

    After 23 years, the Niger Delta Development Commission, NDDC, established to facilitate the rapid, even and sustainable development of the Niger Delta region that produces over 90 per cent of Nigeria’s oil wealth, is still contending with funding challenges.

    It is unfortunate that despite spirited efforts by successive governing boards and managements to transform the oil-rich region, the interventionist agency has been constrained by several factors, including inadequate funding.

    In 1957, the Sir Henry Willink’s Minority Commission was established to look into the concerns and agitations of Niger Delta minorities and to find means of allaying their fears. The commission’s report in1958 characterised the Niger Delta as infrastructurally and generally poor, backward and neglected. It, therefore, advised the government to establish a federal board to address the problems of the area.

    The Niger Delta Development Board, NDDB, which emerged from the recommendations of the Willink’s Commission, was a special purpose vehicle. It was meant to pay keen interest to the needs of communities in the Niger Delta, given the challenging terrain which requires huge funds and efforts to develop. Subsequent development agencies, like the Oil Mineral Producing Areas Development Commission, OMPADEC, were expected to follow the same path.

    Without doubt, the Niger Delta region is confronted with ecological and environmental challenges that should perforce attract huge funds from the federal government and the oil companies operating in the region.

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    Sadly, this has not been so, thus limiting the capacity of the NDDC to fulfil its mandate of driving the development process and transforming the Niger Delta region into one that is “economically prosperous, socially stable, ecologically regenerative and politically peaceful.”

    It is rather unfortunate that despite the spirited drive by successive boards and managements of the NDDC to live up to the expectations of the people, their efforts have not been matched with commensurate funding.

    As the new NDDC board settles down to work, the issue of inadequate funding is rearing its ugly head again. Indeed, it is an inconvenient truth that will remain in the front burner until it is fully addressed.

    That explains why the NDDC managing director, Samuel Ogbuku, highlighted the issue during interactive sessions which the commission’s board and management held with the relevant committees of the National Assembly in Abuja.

    Ogbuku told the House of Representatives Committee on NDDC, chaired by Hon. Ibori-Suenu Erhiatake, that the commission is owed over N2 trillion, arising from withheld funds and underpayments by both the government and the oil companies. He blamed this on non-compliance with the Act establishing the commission. 

    The NDDC boss said: “I want to raise an important issue. When we talk about funding, the NDDC Act says the monthly allocation from the federal government is 15 per cent of the allocation of nine states of the Niger Delta. But I can tell you that since the inception of the NDDC, we have not received that”.

    Ogbuku lamented that the shortfall in funding had placed a huge debt burden of the commission, forcing it to adopt alternative means of financing its key projects and programmes. Even as he rues the negative side, there is a bright side to it. As is often said, necessity is the mother of invention. In this case, because the NDDC was boxed into a corner, it was forced to think out of the box.

    According to Ogbuku, the commission settled for the Public Private Partnership, PPP, arrangement to fund big-ticket projects. From all indications, the PPP approach is the right way to go, considering that so much is expected of the NDDC.

    The strategy, which prioritises building strong and effective partnerships with relevant stakeholders, is beginning to yield fruits. Recently, the NDDC and the Nigeria Liquefied Natural Gas Limited, NLNG, signed a Memorandum of Understanding, MoU, to leverage shared aspirations and collaborate on diverse fronts in the delivery of sustainable development projects in the Niger Delta region.

    The PPP model also gives the NDDC the opportunity to leverage on the resources, expertise, and goodwill of various partners, such as federal and state governments, local communities, non-governmental organisations, international agencies, and private sector companies. Obviously, by working together with various partners, the NDDC is better placed to mobilise more funds, reduce costs and improve efficiency. 

    It is curious that the federal government which is supposed to lead the way in ensuring adequate funding for its foremost interventionist agency is failing to meet its statutory obligations to the commission. Available records show that right from inception, the NDDC was getting only 10 per cent, instead of 15 per cent from the federal government.

    This is contrary to the provisions of the law, as the NDDC Act states clearly how the commission shall be funded. Section 14[2] provides that “there shall be paid and credited to the fund established pursuant to subsection [1] of this section; [a] from the federal government the equivalent of 15 per cent of the total monthly allocation due to the member states of the commission from the federation account, this being the contribution of the federal government to the commission; [b] three per cent of the total annual budget of any oil-producing company operating onshore and offshore in the Niger Delta area, including gas processing companies; [c] 50 per cent of monies due to member states of the commission from the ecological fund…” and other sources such as grants and loans.

    Apart from the federal government which does not comply with the provisions of the NDDC Act, some of the oil companies have also not been paying the three per cent of their annual budget as required by law. Available facts indicate that they deduct first charges before calculating the three per cent from the balance. In doing this, they are more or less, hurting themselves because what they spend for the development of the Niger Delta is for their own good at the end of the day.

    Given the enormous impact of their activities on the environment, the oil companies are expected to be at the forefront in the critical task of urgently developing the oil basin that has suffered so much neglect in the past. It is, in fact, in their interest to develop the communities where they operate in order to guarantee peace, which is very necessary for them to continue with their work.

    Thankfully, both the Senate and the House of Representatives have promised to assist the NDDC to recover its outstanding funds. In their different interactions with the NDDC leadership, the lawmakers frowned at the disregard of extant laws relating to funding the Commission.

    The chairman of the Senate Committee on NDDC, Senator Asuquo Ekpenyong, expressed displeasure over the disregard of the law by the International Oil Companies, IOCs and promised to call them to order. He decried a situation where the NDDC is put in a bind over revenue issues because the IOCs and the Federal Government were not fulfilling their statutory obligations.

    He said, “When you have a situation where you have a debt profile of over a trillion naira, you are no longer talking about sustainable development. With such a high debt profile, contractors who have the capacity to deliver on projects will run away from executing your contracts. We have to reverse the trend.”

    The Senate committee chairman stated that proper funding would help NDDC to adequately address the sustainable development of the Niger Delta region, noting that the challenge of developing the region was enormous and that all relevant contributors to the NDDC must play their roles diligently.

    Senator Ekpenyong said that in discharging its oversight functions, his committee will ensure that every contributor to NDDC pays what they owe the commission, “because we cannot afford to toy with the development of that very important region. We owe it to the country to make sure that we improve the living conditions of the people of the region.”

    It is comforting to note that both chambers of the National Assembly are concerned about the disturbing funding challenges facing the NDDC and that they are doing something to redress the situation. Apparently, the lawmakers understand that we have a responsibility to adequately fuel the vehicle chosen to drive the development process in the Niger Delta region.