Category: Commentaries

  • Food scarcity and soilless farming: The Ogun example

    Food scarcity and soilless farming: The Ogun example

    • By Elijah Udofia

    Sir: So much has been said and written about youths in Nigeria. While some described them as layabouts, some see them as highly intelligent who can complete favourable with youths from other parts of the world.

    While people are shouting about hunger and scarcity of food in the country, a young man in Ogun State, Sam Ogbole, has shown that given a chance and the right support, Nigerians youths can feed the nation.

    In the remote part of Awowo village in Ewekoro Local Government Area of Ogun State, Ogbole has succeeded in transforming that sleepy village to a farm settlement that has attracted youths from over 28 states of the federation including youths from the republics of Cameroon and Togo to live and study modern methods of farming.

    The settlement which can be called a town on its own, boasts of a health centre, recreational and worship centres, residential quarters and a host of other facilities plus its own source of water supply. The unique thing about the farm is that different fruits and vegetables are cultivated there.

    In the farm one can get fresh cucumber, green, red and yellow pepper, tomatoes, lettuce and garbage as well as fruits like pawpaw, pineapples, among others. The crops are planted to meet international specification for export as well as local consumption.

    The Ogbole-pioneered soilless farm, which started with work-and-learn program in September 2000, currently has over 10,000 beneficiaries.

    Governor Dapo Abiodun despite his tight schedules found time to visit the farm to see things for himself. The governor who was spell-bound with what he saw at the farm took time to personally harvest some of the crops himself and thereafter announced that similar farms would be replicated in all the 20 local government areas of the state.

    With  the current scarcity of food in the country, the governor is of the view that the situation would be salvaged if soilless farming is encouraged.

    In a country where issue of land has always generated concern, the adoption of soilless farming will eliminate this as little land is needed to engage in cultivation. It also reduces the exertion that the African traditional farming entails. This is because technology is used therefore the issue of depleting energy is almost non-existing.

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    In China, it is said that most of the electronic gadgets we use in Nigeria are manufactured by the young people of that country. If they can do it, I strongly believe that Nigerian youths can also do it.

    When we look at the Information and Communication Technology (ICT) today, our youths are doing wonderfully well. Even the creativity of the so-called “yahoo boys” can be redirected to positive use after all it is only a tech-savvy individual that can manipulate the internet to swindle. Therefore the negativity can be turn to positivity.

    Furthermore, soilless farming can be the saving grace for Nigeria to address food sufficiency as it does not need experts in agriculture to learn the techniques required to go into it.

    Here is calling on well-meaning Nigerians to partner with the Soilless Farm Laboratory at Awowo village in Ewekoro Local Government Area of Ogun State to support the over 1000 youths who are currently undergoing a three months training programme at the farm settlement. These youths are from 28 states out of 36 states of the federation. If these youths are engaged in the 28 states to cultivate crops using the soilless farming techniques, the multiple effects will be overwhelming and the issue of food shortage in the country will be a thing of the past.

    •Elijah Udofia,

    Laderin, Abeokuta, Ogun State.

  • Rice issues

    Rice issues

    About a month after the Federal Government announced that it will send 740 trucks of rice to the 36 states and the Federal Capital Territory (FCT), in response to food inflation in the country, there are indications that things are not going according to plan. Each state and the FCT was supposed to get 20 trucks, each carrying 1,200 25kg bags of rice, which were to be distributed to the most vulnerable people. 

    However, according to a report published at the weekend, some states said they had not received the trucks of rice, including Taraba, Delta, Niger, Plateau, Zamfara and Abia. States that said they had received the consignment of rice include Kwara, Katsina, Kaduna, Kano, Oyo, Akwa–Ibom, Rivers and Bayelsa.

    It is unclear why not all the states have received the trucks of rice, about a month after the announcement. The Minister of Agriculture and Food Security, Abubakar Kyari, obviously has a lot of explaining to do. 

    Another move by the Federal Government to cushion the hardship arising from food inflation went awry as the authorities announced the suspension of the plan to sell subsidised 50kg bags of rice to civil servants for N40,000. The Federal Ministry of Special Duties and Intergovernmental Affairs had earlier supplied information on the procedure for the purchase of the rice, saying it would be sold to “interested public servants in Abuja.”

    It is unclear why the sale of the rice was suspended. The development was reported to have affected many civil servants who had registered to buy the rice. There is a need for clarification. 

    Interestingly, a well-known economist and Executive Director of Financial Derivatives, Bismarck Rewane, alleged that some civil servants bought 50kg bags of rice at N40,000 and resold it at N85,000.  He said: “Our team went into the market… The price of rice coincidentally went up by 3.62 percent to N85,000. This is happening at the time the federal government is selling rice to public servants at N40,000 per 50-kilogram bag.”

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    Notably, Nigerians continue to complain about the cost of rice, which is a staple. The National Bureau of Statistics (NBS) in April said the average price of 1kg rice (local, sold loose) was N1, 399.34 from N546.76 recorded in April 2023.

    Figures released last month by NBS in its Selected Food Price Watch for June 2024 showed that the public outcry over crushing food inflation in the country is not baseless.

    For instance, NBS said the prices of tomatoes, beans, and yam rose by about 300 percent in June 2024 from their previous prices in the corresponding period of 2023. These are staple items, and the astronomical increase in their prices suggests that many Nigerians are struggling to survive the food crisis.

  • Atiku: masses’ defender

    Atiku: masses’ defender

    The Presidency, via Bayo Onanuga, presidential special adviser on Information and Strategy, had every reason to call out former Vice President Atiku Abubakar, for playing to the gallery at a period of great national angst.

    Teflon Atiku!  He proved that yet again by conflating — to gain cheap political points — peaceful protesters with violent looters. 

    With that emotive premise, he blamed the security agencies, praised by many for their even-handed handling of that explosive, yet delicate challenge, for “use of lethal force against peaceful civilian protesters.”  Hollow claim!  That was a dangerous mob.

    Were he commander-in-chief, what would he have the security people do, faced with ignorant, violent rioters, wielding cudgels and sundry weapons, waving the Russian flag?

    Atiku, the great defender of the masses, feels good about himself.  Yeah, that was brilliant, if cynical, politicking; and he must pat himself on the back, like the tortoise that fell from the high Iroko tree, and praised itself, even if no one else did.

    But look closely at the former Vice President.  All you see is a cheap politician.  The choice of a statesman, befitting his former high office that gifted him the second highest national honour of GCFR?  That is gone — or was it ever there?  Was it just a mirage with glow and sheen, but was only a mere facade?

    At election time, Atiku failed the “nationalist” test he had always postured.  When he broke PDP’s unwritten rule to cede the Presidency to the South, he declared himself the official “northern” candidate; and told every northerner to vote for him.  Blood, after all, is thicker than water! 

    But he forgot that power greed of his made him and Peter Obi cancel out each other, with both comically claiming they “won” after the harm had been done!

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    At the protests, in which Atiku rallied for his riotous urchins — his blessed “peaceful protesters”, the irony was completely lost on him that he bore part-responsibility for how the North has turned out, underscored by those horror riots.

    He was Vice President for eight years.  During that time, Nigeria had the second oil boom: humongous earnings from exported crude.  But when he and his principal, former President, Olusegun Obasanjo, were not shelling out US$ 12 billion to buy out a US$ 18 billion debts, they were fighting themselves to the virtual death; and building for selves private universities, when the federal public ones in their care rotted away.

    Did Atiku for a second pause to think, about a possible changed scenario, had their government sank that US$ 12 billion into infrastructure, physical and social, to drive the economy?  If they had done that, would his native North have remained this bastion of poverty, hopelessness and squalor that just exploded?

    Let someone tell this to the ex-Vice President.  It’s legitimate to play politics.  But playing a cynical one, at critical national junctures, is politics pushed too far.  That sucks, yet it aptly captured his conduct during these last riots.  Shame!

  • NDLEA and the protest against scarcity of cannabis

    NDLEA and the protest against scarcity of cannabis

    • By Kalthum Alhassan

    Sir: A few days ago, in the thick of the protests that swept across most states in Nigeria, it was shocking to see a protester bearing a placard with the message, “Cana Price Too High.”

     The protest was dubbed #EndBadGovernance and was organised to vent public displeasure against the increased rate of inflation, poverty, hunger and the perennial insecurity plaguing the country.  How did “Cana” come into the picture?

    “Cana” is a street name for cannabis or marijuana, a widely used illicit drug.  A bit of background will help to place the placard’s message in proper perspective.

    The abuse of cannabis is one of the factors driving Nigeria’s high drug use prevalence, which was estimated to be 14.4 per cent in 2018 according to an NBC/UNODC survey.

     One of the embarrassing findings of the National Drug Use and Health Survey of 2018 was the fact that 10.6 million Nigerians abused cannabis, thereby making us the country with one of the highest abusers of the psychoactive plant. Worse still, cannabis cultivation has gained ground across many states in the country, including Ondo, Ekiti, Osun, Delta, Ogun and Edo.

     Over two generations, smoking cannabis became so entrenched in our society that young people considered it fashionable to smoke weed openly and in videos.

    That placard was a stark reminder of the need for society to ensure that cannabis use and its cultivation are eradicated in Nigeria.

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    The other latent message from that placard is that cannabis users are beginning to feel the heat of the efforts to curb the availability of “weed” by the National Drug Law Enforcement Agency, NDLEA. No doubt, operatives of the anti-narcotic agency have stepped up their raids on cannabis farms across the states in the past three years.

    The relentless efforts of NDLEA have led to seizures and destruction of large quantities of cannabis consignments across the country. The implication is an effective disruption in the supply chain, which makes it difficult for cannabis to get to the users. That has inevitably led to scarcity and a spike in the price of the substance in the illicit drug market.

    However, we must not be deceived that the anti-narcotic agency can salvage the situation alone. I recommend we all join hands together to fight this scourge, from the government down to the family. We can only win the war against illicit drugs by working together and in close collaboration with NDLEA.

    •Kalthum Alhassan,

    Kano.

  • Attention: Education minister and JAMB registrar

    Attention: Education minister and JAMB registrar

    • By Professor Joy Oluchi Uguru

    Sir: I have watched and waited with dismay to see how and when the sudden decision to earmark the age limit of entrants into the university and other tertiary institutions will take place. To my greatest shock, the JAMB registrar said that it is to begin this year.

    Following that, the universities have started releasing the dates for their post UTME exam, with the accompanying conditions for eligibility which includes attainment of age 16 by October 2024. Very obnoxious and incredible! Are rules for a game changed in the middle of the game?

    The question that JAMB has to answer is if the candidates did not fill their dates of birth in the JAMB form. They did that.

    It is then, gross injustice to deny a successful candidate the opportunity to be admitted just because of his/her age when some older candidates failed in the same examination, showing that academic excellence at that stage, is not a function of age. It is generally known that admissions (merit and supplementary) are given from September to January of the following year. It is therefore not realistic to stipulate that only candidates who will be 16 by October be given admission. What will become of those who will clock 16 between November and January?

    This SUDDEN policy is not in tandem with the university admission system and will put a good number of candidates at a disadvantage. One wonders what sparked off this sudden decision. Is there a threat somewhere?

    Probably, we are copying from some countries as usual. While copying good things is okay, it is also important to do so carefully, considering our peculiarities; after all, such countries have had people like Yasha Asley (in United Kingdom) who started the university at the age of 12; also, the renowned Harvard university does not have any age limit for admission.

    If we want to introduce age limit, it will be good to give a minimum of 10 or 12 years before implementation. This is to enable students who are already in the system at a younger age to be out of the system.

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    While that is ongoing, we should give an age limit for admission into the primary school (as obtains in the United Kingdom for instance) to ensure that the right age is attained at the last year in the secondary school for onward progress to tertiary institution.

    This is more logical than what is being done presently. If what has been initiated is upheld, it means that the affected candidates, who passed the UTME, will have to lose their chances and start the struggle afresh; more so, a yawning and unnecessary gap will be created in their academic progress.

     It means that in the secondary and primary schools, the affected pupils will be forced to roam aimlessly after graduation. This is not morally and socially good for our present society. At a time when we are trying to guard our youths from social ills, rendering them idle will expose them to social deviants. This will not augur well for our society.

    It is totally incongruous to have an age limit for admission only into the university while there is none for the lower levels of education.  The resultant effect on the stakeholders typifies the proverb where one is led out with light into the dark and suddenly, the light is put off. Where does the affected person grope to? I therefore call on the powers concerned to reconsider their decision on the immediate implementation of the age limit policy as it will disjoint the progress of the young lives we are building.

     •Professor Joy Oluchi Uguru,

    University of Nigeria, Nsukka.

  • Poverty alleviation: President should get it right this time

    Poverty alleviation: President should get it right this time

    • By Zayyad I. Muhammad

    Sir: On Tuesday, August 6, President Bola Tinubu approved the appointment of seven individuals to head strategic agencies and programs under the Federal Ministry of Humanitarian Affairs, Disaster Management, and Social Development. The agencies and programmes include: the National Social Investment Programme Agency (NSIPA), the National Social Safety-Net Coordinating Office, the Grant for Vulnerable Groups, the Home-Grown School Feeding programme, the National Cash Transfer Office, and the National Commission for People with Disabilities.

    The president stated that this is part of his administration’s efforts to provide much-needed relief to Nigerians and to ensure the effectiveness of humanitarian and social development programs.

    The most pressing task for President Tinubu now is to appoint a new minister for the Federal Ministry of Humanitarian Affairs, Disaster Management, and Social Development—someone who can provide the necessary leadership, work seamlessly with the managers of these agencies and programmes, and connect with the people in need of relief, especially during this period of widespread hardship and food scarcity in Nigeria.

    Furthermore, any minister taking over the humanitarian ministry should be aware that some of the ministry’s programmes and schemes have not met people’s expectations, and many of their managers have failed Nigerians. Many Nigerians see the ministry as just a cash cow for politicians, which should not be the case.

    The new minister and their managers should note that direct methods of reaching the poor have often failed to serve the common man. Instead, they should consider indirect methods by leveraging a well-known and respected hybrid public-private partnership. This approach would involve engaging responsible private firms such as investment managers, fintech companies, banks, and other local entities, while making effective use of technology.

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    For instance, the country could be segmented into its 360 federal constituencies, with one or two firms assigned to each segment. These firms should be mandated to create a robust and reliable database using people’s NIN, BVN, fingerprints, and phone numbers, including addresses, with a focus on the specific needs and characteristics of each constituency and their local government areas.

    With this approach, the government could establish a central unit, potentially managed by a consortium of private firms on behalf of the government. This method would minimize embezzlement risks, allowing the government to focus on monitoring and ensuring good service delivery. The programmes and schemes could even be designed so that private firms handle the distribution of funds and essential items, while the government verifies and reimburses them.

    This is not a call to completely discard the existing programmes and schemes, but rather to comprehensively remodel and refine them to reflect the reality on the ground, while eliminating inefficiencies, corruption, and unnecessary political interference. Moreover, this is an opportunity for President Tinubu to directly ‘speak’ to young Nigerians who actively participated in the End Bad Governance protest by appointing two ministers to oversee the ministry, one of whom should be a youth.

    •Zayyad I. Muhammad,

    Abuja.

  • Tinubu: Hope renewed?

    Tinubu: Hope renewed?

    Last Sunday, President Bola Tinubu addressed the nation amid #EndBadGovernanceinNigeria protests, expressing sorrow over lost lives and urging peace. He defended his economic reforms, highlighted progress and unveiled initiatives for youth empowerment, housing and food security. Nevertheless, his address sparked a range of responses, and indeed, it received mixed reactions, with critics saying he didn’t address root causes and others commending his efforts to tackle challenges.

    The government’s subsidy removal and allied policies have had a mixed impact. They’ve increased government revenue, attracted private investment, and reduced fiscal burden. However, these policies have also led to higher fuel prices, increased cost of living, and hardship for ordinary Nigerians, especially the vulnerable. The effects of these policies have been felt across the country, with many struggling to make ends meet. As the economy remains precarious, Nigerians await a comprehensive plan to address the negative consequences and ensure a more equitable distribution of resources.

    Tinubu, as the nation’s rallying point, has a significant responsibility. Given his track record and what he represents, his address was expected to be a de Gaulle-type expose – decisive and unifying. Charles de Gaulle as president of the 5th Republic of France (1959-1969) always positioned himself as “The Rally of the Republic”. Known for his leadership style, every public speech in a time of crisis was craftily delivered as a way of dousing tensions and rallying the Republic around the patriotic banner. Similarly, just as de Gaulle’s leadership style united France, Tinubu’s can unite Nigeria.

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    In intellectual honesty, Tinubu’s speech actually soothed nerves. A lot of people who supported the protest have either called for a pause or a total end to it. For this, the president deserves our highest praise! Unfortunately, the issues remain; and the major issue is how to rally the Republic in a season of discontent. The rallying source of the crisis is an excruciating cost of living crisis in a country without social benefits to act as a modulating buffer. The current state of the economy is the critical issue. To address it, the government must adopt measures to alleviate the negative consequences while continuing to pursue its laudable economic progress.

    As Tinubu’s administration navigates the choppy waters of governance, there is a need for a new critical thinking and the avoidance of the use of clichés, shibboleths and buzzwords. For instance, look at the EU’s Common Agricultural Policy (CAP), which provides a $1billion-a-day food subsidy. If you condemn subsidies, how can you justify the policy? For a fact, no politician in countries like France, Italy or Germany can win an election by promising the abolition of CAP. It just won’t happen! And these are developed countries! Of course, this highlights the importance of carefully considering subsidy policies.

    Summed up briefly, the main thrust should be how to redirect money, or capital, from areas of waste and duplication into the real and social sectors. In doing this, there must be no sacred cows! Take it or leave it, Nigerians are not a problematic people; and they appreciate the efforts of the government. For example, food price inflation in Kenya at the beginning of the upheaval in that country was around 6.9%, according to figures from the World Bank. Today, food price inflation in Nigeria hovers above 40% in the methodology used by the National Bureau of Statistics (NBS). If one may therefore ask, which other country in the world can absolve double digit food price inflation? As things currently stand in Nigeria, the poor are being told to ‘pull themselves up by their bootstraps’, which is funny, because most of them can’t afford boots.

    Philosophers say that recognizing progress is the first step towards achieving more. Yes, the government deserves commendation for its efforts. But Nigerians are urging the Tinubu-led administration to do even more. The next step for him is to unite the Republic, building on his good start last Sunday. The president must address the nation’s festering wounds before they become a poison arrow in the quiver of his adversaries. Since every journey starts with the spark of an idea, Tinubu must position himself as the titular head of the country, putting the nation’s interests above party affiliations, as exemplified by Keir Starmer, in his Acceptance Speech.

    For those who care to know, this is not the time for divisive rhetoric and saber-rattling that distract from real issues. It shouldn’t be an opportunity for spewing toxic narratives that will only end in endangering the nation’s fragile social fabric, thereby paving the way for further polarization and conflict. In other words, the solution to our present predicament lies not in blaming others but in collective introspection. Most importantly, this is not the time to fan the flames of ethnic and religious tensions. Nor is it the time to peddle conspiracy theories. In this critical moment, what matters most are unity, constructive dialogue and decisive action to solve Nigeria’s problems. This moment offers a chance to unite against shared enemies of corruption, inequality and injustice.

    Without doubt, Tinubu’s Address to the nation showed decisive leadership and technical depth; and Nigerians should expect this resolve to continue. It’s time to unleash Nigeria’s full potential, and work together to create a society where the rain of prosperity falls on all, not just a few. Nigerians demand action, not just words. They want tangible solutions, concrete policies and measurable progress on the burning issues affecting their lives, not hollow vows. So, let the ‘Jagaban of Borgu’ lead in building a nation where prosperity is a right, not a privilege.

    In the current global reality, Ethiopia’s triumph over food price inflation holds valuable lessons for Nigeria. By combining targeted subsidies, social protection programs and market reforms, Ethiopia successfully stabilized food prices and curbed inflation. The Ethiopian Commodity Exchange (ECX), founded by Eleni Gabre-Madhin, played a pivotal role in enhancing market efficiency, transparency and the removal of the confusions and inconsistencies associated with access to finance. Nigeria can draw inspirations from this model, leveraging innovative market solutions and targeted interventions to tackle its own food security challenges and shield vulnerable populations from the harsh effects of inflation.

    Lastly, #EndBadGovernanceinNigeria has again highlighted the urgent need for sweeping police reforms in Nigeria. For instance, precious lives were reportedly lost to the protests in Nigeria. In contrast, the UK has, in what has become the worst crisis in more than a decade, seen violent protests in over twenty cities without a single reported death as at the time of putting this piece together. This stark difference highlights our failure to prioritize accountability and become competitive against the rest of the world. Loose threads of violence should not be allowed to unravel our social fabric while those who pull the strings of chaos must be woven into the tapestry of accountability. In Nigeria’s best interest, sincere efforts must be made to address this shameful trend before it becomes a permanent scar on the nation’s conscience.

    May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!

  • Delta’s misleading narrative on debt reduction

    Delta’s misleading narrative on debt reduction

    • By Innocent Ojefia

    Sir: Media aides often paint a rosy picture of the Delta State government’s financial management, hailing the payment of over N130 billion out of N465 billion debts as significant achievement. However, this portrayal is misleading, especially given the stagnation in infrastructure development across the state.

    Public debt, when managed properly, can be a powerful tool for development. Governments around the world leverage debt to finance essential expenditures, protect and invest in their populations, and lay the foundation for a prosperous future. Ideally, funds obtained through public borrowing should be directed towards projects that enhance the state’s infrastructure, stimulate economic growth, and improve the quality of life for its citizens.

    Unfortunately, the situation in Delta State starkly contrasts with this ideal.

    In Delta State, borrowed funds have largely been diverted towards election campaigns, especially the vice-presidential bid and election litigation costs rather than development projects. This misuse of debt undermines the potential benefits that could have been realized through strategic investments in infrastructure and public services. As a result, the state remains mired in underdevelopment, with little to show for the significant financial liabilities it has incurred.

    The claim that reducing the state’s debt profile by paying over N130 billion out of N465 billion is an achievement is therefore hollow. This payment is not a voluntary act of fiscal prudence but rather a mandatory compliance with standing orders entered into by the former governor. These orders require deductions at source from the state’s federal allocation, leaving the current governor, Sheriff Oborevwori, with limited financial flexibility to initiate new projects. Consequently, beyond the widely publicized Julius Berger flyovers in Effurun, there is little progress in terms of new infrastructure projects.

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    The core issue lies in the mismanagement of public funds and the prioritization of political goals over genuine developmental needs. The reduction in debt, while superficially positive, does not address the underlying problem of inadequate investment in infrastructure and public services. Until there is a concerted effort to reallocate resources towards meaningful development, Delta State will continue to struggle with stagnation.

    To achieve sustainable development, it is imperative for the state government to adopt a more strategic approach to public debt. This involves ensuring that borrowed funds are channelled into projects that yield long-term benefits for the state’s economy and its people. Only then can debt reduction be considered a true achievement, one that is accompanied by tangible improvements in infrastructure and overall development.

    For Delta State to move forward, it must shift its focus towards leveraging public debt for genuine development, thereby creating a better future for its citizens.

    Innocent Ojefia,

    <ezilibe@gmail.com>

  • Way out of Africa’s mounting debt crisis

    Way out of Africa’s mounting debt crisis

    • By Muhammad Mustapha Gambo

    Sir: Africa’s debt stocks have grown significantly in the past decade. Understandably, African governments took advantage of historically low interest rates in the 2010s and borrowed heavily from international capital markets and China.

    However, debt has recently become a lot more expensive. Since 2020, the impacts of COVID-19 and the on-going Ukraine war, coupled with worsening climate conditions have resulted in African governments having credit-rating downgrades, which consequently led to rapidly increasing their borrowing costs and made tapping international debt markets prohibitively expensive.

    According to data by United Nations Conference on Trade and Development (UNCTAD), public debt in Africa reached USD 1.8 trillion in 2022.  In 2024, African countries will pay US$163 billion in external debt service, according to the African Development Bank.

    One in five people globally live in countries that are in debt distress or at risk of it. Two-thirds of low-income countries – most of them in Africa – fall into this category, while eight of the nine countries currently in debt distress are on the continent, according to the United Nations Economic Commission for Africa (UN ECA) 2023.

    Some of the factors that have contributed to the mounting debt crises in Africa are population explosion and rapid urbanization, massive infrastructure needs, declining availability of official development assistance and concessional financing.

    Recently, there have been collective clamour by African ministers of Finance, Planning and Economic Development for decisive action to reform the global finance architecture in light of the mounting debts and to spur the investments needed for achieving sustainable development and climate goals around the world.

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    Pundits hold that the global financial system is structurally unfair to developing countries in general and more so to African countries in particular and that some crucial reforms are urgently needed to address the problem of Africa’s mounting debt stock.

    According to the Italian Institute for International Political Studies (ISPI, 2020), offering African countries debt instruments with more favourable terms or cash, in exchange for existing debt, will not only provide immediate liquidity but also address debt sustainability concerns in the long term.

    In the absence of better mechanisms for debt-distressed countries in Africa, more governments will struggle to service their obligations and limit their ability to invest in providing the necessary development needs of their countries. This is even more pertinent considering the need for enhanced effort in attending to the challenges of climate change in the region, through effective climate adaptation and mitigation measures.

    In the light of these challenges, there is the need for practical engagements anchored by African-led Development Finance Institutions (DFI’s) such as the African Development Bank, to reform the global financial architecture and ensuring a transition from multilateralism to a pluri-lateral system of the global financial system – one that is more nimble, more inclusive, more flexible and realistic in responding to the changing nature of challenges that African countries face today.

    Aligned with these, there is also the critical role of sector specific DFI’s such as Shelter Afrique Development Bank and other relevant institutions that form part of the founding partners of the Alliance for African Multilateral Finance Institutions (AAMFI) – established under the auspices of the African Union, to support the implementation of Agenda-2063.   Its formation underscores Africa’s commitment to self-reliance and sustainable economic development.

     It’s believed that AAMFI , which is an alliance of African-owned and controlled African Multilateral Financial Institutions (AMFIs) whose membership also include African Trade and Investment Development Insurance (ATIDI), African Export – Import Bank, Trade and Development Bank Group, Africa Finance Corporation, African Reinsurance Corporation (Africa-Re), ZEP-RE (PTA Reinsurance Company), East African Development Bank (EADB), and the African Solidarity Fund (ASF) will address Africa’s development finance needs, advocate for Africa on global finance issues, develop innovative finance tools and support sustainable finance strategies. 

    As an adage goes, if you want to go fast, go alone. If you want to go far, go together.

    •Muhammad Mustapha Gambo, 

    Shelter Afrique, Nairobi Kenya.

  • Thumbs up for President Tinubu’s economic policies

    Thumbs up for President Tinubu’s economic policies

    • By Kenechukwu Aguolu

    Sir: Nigeria, known for its abundant resources and economic potential, has for some decades been faced with numerous economic challenges that have defied all previously proposed solutions. However, to the delight of some of us, on this administration’s assumption of power on May 29, 2023, it decided to do things differently by making bold economic policy decisions to revive Nigeria’s ailing economy. The president is therefore a visionary, courageous, and resilient leader. However, Mr President is humbly invited to note that even though the economic indices show that the policy decisions have started yielding results, they have yet to impact the common man; neither have the various intervention programs. There seems to be a disconnect between policy announcements and implementation. I respectfully wish to make the following observations:

    Optimizing the country’s oil production and diversifying the economy are critical areas and I believe the administration is giving the required attention. Sectors such as mining, agriculture, and tourism which present significant economic opportunities remain largely untapped. The administration has done well to ramp up oil production to 1.61 million barrels per day; with an increase expected in the coming months.

    Mr. President, Nigeria has a significant infrastructure deficit that hampers meaningful economic development. For example, the lack of adequate power increases the cost of business, causing companies to lose their competitive edge. I was indeed glad when the president brought to our awareness during his recent address that the administration had embarked on major infrastructure projects across the country and was working to complete inherited projects critical to our economic prosperity, including roads, bridges, railways, power, and oil and gas developments.

    Mr. President, entrepreneurship is a key enabler for advancing any country’s economy. Therefore, the Digital and Creative Enterprises (IDiCE), nano-grants, micro and small business single-digit interest loans, and single-digit loans to boost manufacturing output and stimulate growth which the current administration introduced are very beneficial in this regard. The recapitalizing of deposit money banks will enhance their ability to support economic development.

    Appropriate remuneration of workers promotes productivity, innovation, and reduces brain drain. Nigeria has experienced a mass exodus of skilled professionals in recent years. The Tinubu administration’s approval and signing into law of the new national minimum wage of N70,000 is commendable. It should be implemented and enforced promptly.

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    Mr. President, over the years, many African countries have emphasized natural resources over human capital development. However, investing in education is critical for sustainable economic growth and global competitiveness. Your administration has done well by introducing the Skill-Up Artisans Programme (SUPA), the Nigerian Youth Academy (NIYA), and the National Youth Talent Export Programme (NATEP) programs; however, more investment is needed in the nation’s educational system, and a rejig of the curriculum is also necessary.

    Despite the savings from removing fuel subsidies and adopting a floating exchange rate for the naira, Nigeria still faces significant financial challenges primarily due to the substantial debt servicing. The reduction in the country’s debt servicing from 97% to 68% in the last 13 months is remarkable. Nevertheless, in order to improve the government’s ability to finance crucial development projects that could stimulate economic growth and improve societal well-being, it may be wise for the government to pursue aggressive strategies for debt relief or restructuring.

    Mr. President, be assured that many Nigerians believe in your renewed hope agenda and are encouraged by the achievements your government has made within a short time in office. However, it would be gratifying to see timely implementation of policy programs; a monitoring and evaluation mechanism can facilitate this. The government should also be more proactive in its various interventions. For example, the government should have been more proactive in dealing with food inflation by suspending tariffs and other import duties for various food items earlier than it did.

    Kenechukwu Aguolu,

    Kenerek1@gmail.com