The Nation Newspaper

Category: Commentaries

  • Enabling nano and micro businesses in Africa

    Enabling nano and micro businesses in Africa

    • By Timi Olubiyi

    The informal economy makes up a significant proportion of the African economy which is characterized largely by nano and micro businesses. Where,  businesses and working conditions are characterized by small or undefined workplaces, unsafe and unhealthy working environments, unregulated, low levels of skills and productivity, low or irregular incomes, long working hours, and lack of access to information, markets, finance, training, and technology. The activities that occur outside the legal framework are considered informal. That said, millions of Africans eke out a living from the informal set-up daily and also vulnerable children. The COVID-19 pandemic consequences have also intensified the difficulties encountered by African workers and this has further increased vulnerable participation in the informal sector.

    From context observation, the informal sector in Africa is larger than the formal sector in terms of employment opportunities and output year on year. In some cases, the informal economy is referred to as a shadow economy if associated with illegality and illicit activities such as internet scams, black markets, crime, production, smuggling of illegal drugs, and money laundering, as the case may be.

    In many of African countries, from Uganda to Burundi, Liberia, Nigeria, Niger, Mozambique and many others, 80 to 90 percent of people work in the informal economy comprising mainly nano and the micro businesses. Agreeably, across the continent, it is easy to notice this informality with street traders, artisans, vendors, nano and micro-businesses, commercial buses, tricycles, and motorbikes (Okada riders) domestic workers, market traders among others all operating informally, broadly speaking you can easily see informality all around the continent. The informal economy has witnessed a massive expansion in the last two decades in Nigeria and the root causes of these include elements relating to the economic context in the continent of Africa, decreasing levels of market regulation, weak policy frameworks, and socio-demographic drivers such as population growth, urbanization, rise in unemployment, widening inequality between the rich and poor, low-level education, including poverty. The key driver of the informal economy, however, is that such businesses in the sector do not need registration with any relevant government agencies and it gives subsistence

    When workers cannot find opportunities in traditional wage employment, the need for subsistence demands they find work somewhere else. Most times the alternative is usually in the informal sector of the economy where there is no minimum wage and workers are unlikely to pay taxes, have no holiday rights or labor rights, and often work in dangerous conditions. Most time it is usually a struggle for them to access microcredit, they lack income security and stable employer-employee relationships. In the midst of all these, it only offers the most vulnerable and often uneducated Nigerians a foothold for survival. This expanded and large informal economy is perceived by the majority of the elite to be at the bottom rung of the economic system when in truth, they are the major drivers of the economic system because they are too large, important, and relevant to be ignored. For instance, it is unclear if the country has reliable data on the National Union of Road Transport Workers (NURTW) activities in the country or the volume of transactions in the Ladipo auto spare part market in Oshodi, Lagos State, and the popular Greater Kampala in Uganda with three visible clusters Katwe, Kasubi, and Masakamention to mention a few. These are visible informal business locations set up within the country with multi-million daily business turnover, yet the operators are unrecognized or uncaptured by policy markers or relevant authorities. This part of the economy is particularly large in Nigeria, with the International Monetary Fund (IMF) estimating it to constitute about 60% of the entire Nigerian economy, yet not subject to full government regulations. Meanwhile, working in the sector is attractive due to the ease attached to operations as a result of the absence of a bureaucratic regulatory framework, and little or no formal educational requirements.

    There are multiple perspectives on the informal economy, some associate it with lost revenue, unfair competition, low productivity, human rights abuses, and environmental degradation; while others associate it with entrepreneurship, flexibility, and resilience. Overall, the informal economy is enduring; but suitable regulations and policies are required to improve the sector and introduce formalization. The decision for these businesses to formalize depends on the benefits that are derived from formalization over the risks of remaining in the informal economy. If the former outweighs the latter, only then does formalization seem like a viable option to the operators.

    Read Also: Building a community of shared future for mankind in China-Africa cooperation

    Clearly, there is a need for the government to embark on a series of measures, interventions, and support to encourage the formalization of these businesses to sustain economic growth and development. As mentioned earlier, this informal sector is too large and important to be ignored, concerted effort to identify and protect them is crucial for sustainability and economic development.

    In recent times inflationary pressures and the Novel Coronavirus (COVID-19) pandemic negatively impacted these informal businesses greatly. Because they rely on daily income and most of them can rarely “work from home”, so the harsh reality is that most of these businesses need government support and adequate regulations. Therefore the current state of nano and micro businesses provides a good avenue for the governments of many of these African countries to have mass registration and identification and equally reach out to them through social interventions and palliative.

    Besides, the International Monetary Fund (IMF) is urging national statistical agencies to gather information on the informal economy to help in policy formulation and for gathering reliable data for economic planning. In this context, careful attenton must be paid to the informal economy, and policy solutions need to be in place to encourage and induce their formalization. These suggestions, if efficiently considered might, in turn, reduce the size of the informal economy in the country.

    • Timi Olubiyi, Ph.D, is an Entrepreneurship & Business Management expert. He can be reached via drtimiolubiyi@gmail.com.  
  • Building resilience in tough times

    Building resilience in tough times

    SIR: It is no longer news that Nigerians are facing tough economic times. Recent government decisions like removing fuel subsidies, devaluing the Naira, and now eliminating electricity power subsidies have caused a lot of stress for businesses and citizens. These changes, meant to help the economy in the long run, are right now difficult for everyone. Let’s break down what’s happening and explore ways for Nigerians to cope.

    Fuel subsidy removal: The government removed fuel subsidies in its desire to free up money to attend to other important areas in the economy. A fallout of the policy is that businesses that rely on affordable fuel, especially small and medium-sized ones, got squeezed. Costs went up, profits went down, and some people even lost their jobs. Household expenses went up in smoke. This made the whole economy unstable.

    Naira devaluation: As with devaluation anywhere in the world, the goal was to make Nigerian exports cheaper and possibly attract more foreign investment. It however backfired spectacularly. What happened was that the value of the naira went down and everything became more expensive. People couldn’t buy as many goods with their money, and businesses that import things had to pay more for them. Inflation went off seemingly on steroids.

     Power subsidy removal: Now, the government has announced that electricity bills are going up. Families and businesses alike are likely to be hurt. Experts argue that this makes it harder for people to afford basic needs and for businesses to be productive. It would equally contribute to widening the gap between the rich and the poor.

    The good part is that the same government that triggered the problems can take steps to fix them. The place to start is the place it had wanted to start for half a century. This is the diversification of the economy. It is time to spread the wealth: the economy cannot continue to rely so heavily on oil. The government must as a matter of urgency begin investing in things like agriculture, manufacturing and technology. Through these, it can create a more stable and long-lasting economic foundation.

    The second thing has equally been spoken about almost forever. The government must now move beyond talk. It needs to demonstrate that it is careful with the country’s wealth. This means allocating resources effectively, truly cutting waste, and being transparent about spending. The government must not only appear to be cutting the cost of governance, it must be seen to be doing it sensibly.

    It is equally critical for the government to boost investment in infrastructure, especially power generation and distribution. It needs to look at all existing projects and actively encourage their completion. The deal with German electricity giant, Siemens, which is expected to lead to the production of 25000 megawatts of electricity by 2025 must be pursued relentlessly. It promises to be a huge game changer for the nation. It will improve electricity access, attract investment, and boost economic activity.

    Read Also: Tinubu: Leadership in tough times

    While the above are ongoing, the government needs to urgently create safety nets to support people who are struggling today because of these changes. This could include targeted subsidies, cash transfer programs, and free job training initiatives. And it must communicate more. It is not enough to leave people to make assumptions. The government has to consistently talk to the people, share its goals and where necessary voice its challenges.

    The good news is that Nigerians are known for their resourcefulness. People are already exploring ways to deal with these economic challenges. Here are some quick suggestions from experts:

    Create a plan: Make a budget, track your spending and try (as much as possible) to save some money for a rainy day.

    Improve your skills: Boost your capacity, learn new skills or even consider starting your own business. No one can afford to be idle at this time.

    Explore multiple sources of income: We have to admit at this point that motivational speakers were right after all. Multiple sources of income really can shield one from the effects of economic fluctuations.

    Use your voice: You may need to join advocacy efforts. For instance, talk to your representatives about the challenges the community is facing.

    • Elvis Eromosele elviseroms@gmail.com
  • How Blue Economy ministry benefits Nigeria

    How Blue Economy ministry benefits Nigeria

    SIR: Some initiatives by President Bola Ahmed Tinubu upon his election and assumption of office in May 2023 did not only show the president was innovative, decisive and proactive, but also showed he came prepared and ready for the serious business of governance. One of the products of Tinubu’s innovative ingenuity is the creation of the novel Ministry of Marine and Blue Economy, which has been applauded by many national and international stakeholders.

    This new ministry, for a reason of its great economic potentials, is now a cynosure and centre of economic attraction to many countries of the world. The creation of the new ministry out of the pre-existing Ministry of Transportation seems to have broadened and widened our economic perspectives and horizons in relation to increasing Nigeria’s economic growth through sustainable use and maximization of its maritime vast resources, as against merely generating revenues from marine transport.

    Recently, the newly appointed Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, received in Lagos the Spanish Ambassador to Nigeria, Mr. Juan Ignacio Sell, on an inspection of two additional bulletproof security boats from Spain purposely built for NIMASA by Aresa, a Spanish company. Sell, as reported by the press, said: “We got the message with the creation of Maritime and Blue Economy Ministry by the Federal Government of Nigeria, and knowing there’re lots of things to harness from the sea, we also want to be partners in that process.” He added that the Spanish government has pledged to support Nigeria through NIMASA on maritime security. Earlier in November 2023, the Spanish Navy was also in the country for collaboration in personnel training and ship building in a bid to curbing maritime crimes.

    The viability, uniqueness and resource-potentials of the then-old-but-now-new agencies (at least, now being under a new ministry) like NIMASA, the Nigerian Port Authority (NPA), and the Nigerian Shippers Council (NSP) among others, which hitherto were under the Ministry of Transportation, are now being appreciated for their revenue generation potentials, economic contributions to the growth of the nation and socio-utility, especially as causative of the administrative experience and fiscal expertise of the Minister, Mr. Adegboyega Oyetola, who is now steadily turning an eyesore of the inherited agencies as evident in the dilapidated infrastructure of the nation’s ports and others, into a cynosure of economic attraction to some countries of the world.

    Read Also: NIMASA in Blue Economy: Promoting Nigeria’s bilateral relations

    President Tinubu’s commendable innovative initiatives would not only boost economic stamina of the Africa’s most populous country, ensure security in maritime sector, but also simultaneously increase and strengthen Nigeria’s bilateral ties with other countries. For instance, the President in March 2024 received the Special Envoy of the President of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo, in Abuja, according to a release by the State House, during which he reaffirmed Nigeria’s commitment to enhancing maritime security and safety in the Gulf of Guinea.

    The Gulf of Guinea is central to maritime activities because it is a great inlet of the Atlantic Ocean on the western African coast, whose tributaries are the Volta and Niger rivers with offshore oil deposits and metal ore deposits as its natural resources (Britannica), and via which about 80 per cent of the trade with Nigeria goes.   

    Also in February, this year, the Nigerian Navy led by the Chief of Training and Operations, Rear Admiral Zakariyyah Muhammed, met with the U.S. Navy in Naples, Italy, hosted by the Commander, U.S. Naval Forces Europe-Africa, Admiral Stuart Munsch, with a view to improving regional cooperation, information-sharing practices, and maritime interdiction expertise aimed at countering sea-based illicit activities.

    More so, Nigerian and Indian navies, in October 2023, strengthened bilateral ties between the two countries to ensure maritime security in the Gulf of Guinea aimed at maintaining its sea lanes as a conduit of international trade. The visit led by Indian Defence attaché to Nigeria, Col. Romi Singh Legha, was said to have recorded positive results on collaborative trainings against piracy and other maritime criminalities in the region.

    The above narrative shows the rate at which President Tinubu’s ingenious brainchild-ministry is attracting partnership-attention, engendering Memoranda of Understanding (MoU) and promoting bilateral relations with other nations.

    • Dr. Jimoh Olorede oloredejimoh@gmail.com
  • Exploring solutions to Nigeria’s economic hardship

    Exploring solutions to Nigeria’s economic hardship

    SIR: Nigeria, like many countries, faces significant economic challenges that impact the daily lives of its citizens. From rising prices of essential goods to unemployment and income inequality, economic hardship is a pressing issue that requires thoughtful analysis and effective solutions. In this letter, we delve into the root causes of economic hardship in Nigeria and explore potential policy interventions to address these challenges.

    Understanding the economic landscape:

    One of the primary factors contributing to economic hardship in Nigeria is inflation. The steady increase in the prices of basic necessities such as food, fuel and housing has placed a heavy burden on households, particularly those with limited income. Additionally, unemployment rates remain high, especially among the youth, exacerbating the economic strain on individuals and families.

    Policy recommendations:

    To combat economic hardship and promote sustainable economic growth, policymakers must consider a range of targeted interventions. These include:

    Inflation management: Implementing effective monetary policies to curb inflationary pressures and stabilize prices of essential goods. This may involve tightening monetary supply, managing exchange rates, and promoting agricultural productivity to boost food supply.

    Job creation initiatives: Investing in job creation programs, vocational training, and entrepreneurship support to reduce unemployment rates, particularly among youth and marginalized communities. Creating an enabling environment for small and medium-sized enterprises (SMEs) can also spur economic activity and employment opportunities.

    Social safety nets: Strengthening social safety nets such as cash transfer programs, food assistance, and healthcare subsidies to provide immediate relief to vulnerable populations facing economic hardship. Targeted interventions can help alleviate poverty and ensure basic needs are met.

    Read Also: Economic hardship: Indomie to offer freemeals for 2m less privileged Nigerians

    Investment in infrastructure: Prioritizing infrastructure development, including roads, energy, and telecommunications, to enhance productivity, attract investment, and facilitate economic growth across sectors. Improved infrastructure can also reduce costs of doing business and enhance competitiveness.

    Fiscal reforms: Implementing prudent fiscal policies, including effective tax administration, budget transparency and debt management to ensure fiscal sustainability and promote public trust in government economic management.

    Addressing economic hardship requires a comprehensive and multi-faceted approach that combines monetary, fiscal and social policy interventions. By implementing targeted policies aimed at inflation management, job creation, social safety nets, infrastructure investment and fiscal reforms, Nigeria can chart a path towards economic resilience, inclusive growth and improved well-being for its citizens.

    As stakeholders including policymakers, civil society organizations and the private sector collaborate and prioritize sustainable solutions, Nigeria can overcome economic challenges and build a more prosperous future for all.

    • Ahmad Babangida Baba, Mass Comm student of Abubakar Tatari Ali Polytechnic, Bauchi, writes from ahmerd08131@gmail.com
  • Logo drama

    Logo drama

    It’s an interesting drama about a state’s logo, with twists and turns that may well continue following a call for new designs by Osun State Governor Ademola Adeleke after public rejection of a design unveiled on April 17.

    In a statement, the governor said, “As a listening leader, I have asked that we open the change of logo to more public input,” through a one-week contest from April 19 to April 26.  The best design would be announced on April 28, and unveiled on April 30; and the best three designers would be rewarded.

    Curiously, the statement said, “Those submitting a design are to take into account the prototype logo in terms of its contents and style.”  This condition amounts to imposing unnecessary restrictions on creativity. Defining the limits of entries, in terms of “contents and style,” defeats the essence of calling for new designs. The government’s insistence on the sanctity of the “contents and style” of the rejected design suggests that it may not want a new design but a design that looks new. 

    Details of the rejected design include a Circle, Osun River, Brown Agricultural Soil, Mountains, Ori Olokun, Rays of light (Imole in Yoruba), and Natural Resources.

    The Osun State House of Assembly, in July 2023, repealed the state Anthem, Crest and Flag Law 2012 and replaced it with a new law, which provided the context for the introduction of a new logo for the state.

    Adeleke had described the rejected logo as “a signal of rebirth,” which “meaningfully represents our historic anthem, our values, and our tradition.” He also said it was “a tool to market the state at home and abroad.”

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    Two opposition parties in the state were reported to have criticised the logo.   The Allied Peoples Movement (APM) described it as a waste of taxpayers’ money, and the New Nigeria People’s Party (NNPP) called it “an embarrassment to us in Osun.”  The criticisms were not necessarily politically motivated. Governor Adeleke is a member of the Peoples Democratic Party (PDP). Indeed, the governor’s call for new designs suggests acceptance of the criticisms.

    This is not the first time that the state’s logo has created controversy. In a release signed by its state chairman, Dr Tosin Odeyemi, the NNPP presented a history of the state’s logo. The party said: “We all spoke against it when the administration of Rauf Aregbesola designed a new logo for the state and abandoned the one in use before he came into office as governor.” Osun State was created in August 1991, and Aregbesola was governor from 2010 to 2018. 

    It remains to be seen which design would be unveiled to replace the rejected logo, and whether it would be acceptable to the people. 

  • Chibok: Destroying the future of our tomorrow?

    Chibok: Destroying the future of our tomorrow?

    The 10th anniversary of the abduction of 276 schoolchildren from the Government Girls Secondary School in Chibok, Nigeria, has again brought an eerie feeling of despair and panic. The anniversary is a high point as it has again shown the entire security apparatus of Nigeria as gravely inept and compromised. That’s what it tells us!

    The most important thing about Chibok is not just that it happened! As a matter of fact, it ought not to have happened! Instead, it is about what the country has learnt in ten years! People’s lives have been destroyed but it seems as if Nigeria has moved on! According to reports, “48 of the victims’ parents have died since the girls were kidnapped.” So far, 22 rescued schoolgirls were said to have come back, with 37 children. In any case, that the schoolchildren even have children is in itself a social crisis!

    Of course, things happen! But the difference between Nigeria and other countries is that, whenever things happen in sane climes, they are used as an opportunity for an advance – to improve society as well as prevent a repeat. A good example was the cholera outbreak in the Lagos Colony in 1922. Of course, people died! But the colonial government made a lot of improvements in sanitation and sewage drainage. Indeed, that’s what led to the establishment of the Environmental Health Officers or Sanitary Inspectors, famously referred to as ‘woléwolé’. Since then, things have been improving in terms of environmental conditions, though not as much as one would have liked or wanted. But what has the Nigerian government learnt from the Chibok saga and how has it been managing the people’s expectations? From the look of things, nothing so far!

    When the Chibok girls were abducted on April 14, 2014, it wasn’t taken seriously by the Goodluck Jonathan-led until Nigerians became confronted with the open truth. A cross-section of Nigerians even opined that Leah Sharibu happened under the Muhammadu Buhari-led administration because nobody supervised Defence spending and contracts. To them, lots of things happened under the immediate-past regime and those who reaped from the ruination of the country would not want to give up without fighting back. But for how long will the Bola Tinubu administration bear them?

    Read Also: FG will tackle liquidity, inflation, says Edun

    Chibok! Dapchi! Kuriga! It is pathetic to note that the Safe School Initiative looks like just another scam! Yes, humongous sums of money were sourced from far and near for the scheme but how many of our schools have become safe through, say, parameter fencing? All the more reason President Tinubu must commission a Judicial Panel of Inquiry and an audit to carry out an audit on how the funds have been spent since inception, the impact it has made and the modus operandi for (its) revampment.

    Arguably, it is difficult to kidnap students from St. Charles Grammar School, Osogbo because it is in the metropolis but one doesn’t have to be a military strategist to know that Chibok cannot be too far from an exposed environment like Urban Day Grammar School in Ijebu-Jesa. Therefore, simple elementary common sense demands that the environment be cleared two miles before the school to dissuade criminal minds and tendencies. Have the handlers of our education system done that?

    Well, we can deceive ourselves as much as we like but it is unfortunate that the whole stuff has become what America’s 34th president, Dwight D. Eisenhower described as the Military Industrial Complex. In the words of the Singaporean author and political commentator, Chua Chin Leng, “When there is peace in the world, the Americans would have to create jobs for themselves, to make themselves useful again as responsible people, not warmongers and murderers, not merchants of war. There will be no one to buy their expensive war machine, no more needs for military gangs aka allies.” Of course, that’s why America has to be going around, looking for conflicts to win. Otherwise, how will ‘God’s own country’ keep its people employed? It therefore goes to say that, once we allow a conflict to take root, it becomes an economy. Tragically, Boko Haram and ISWAP have become part of Nigeria’s Gross Domestic Product (GDP). The only challenge is that it cannot be measured. To Nigerians, it has become a way of life on all sides; and it is fear-provoking!

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

    Re: On ‘Afenifere and the progressive camp’

    I read your column on April 6, 2024 and I was impressed by the Afenifere story and the need to reawaken the Yoruba people and re-ignite the streak of development in a nation trapped in the tragic crossroads of development planning and elite complacency.

    It is unfortunate that the dynamics of time have left Afenifere behind. So, only ARG can chart a new path of visionary progress and renewed doctrine of socialism which the current generation can key into.

    ●Emmanuel Awe,

    Abeokuta, Ogun State.

    From what our gentleman (Mr Abiodun Komolafe) has written, it shows that he is an insider. I rejoice with him for being alive to reveal to Nigerians a fractional part of what he actually knew about ARG and our elders in Yorubaland.

    To all our elders, this is the actual time we have to make good use of our talented gentlemen. If we do, we are going to recover what we have lost as a result of our unfeeling attitude.

        ●Chief Olusola Fayemi,

    Osogbo, Osun State.

    As you have pointed out, the DAWN Document isn’t a separatist agenda; it’s for the social, economic, educational and psychological development of the Southwest.

    DAWN is all about charity beginning at home: if we can’t control the whole, let’s control and develop our region! So, the gospel of DAWN is the only way to go for the region to get back on track.

    Unless the DAWN Document is implemented wholeheartedly by the states; and, unless it becomes their guiding principle and working tool, the zone will forever be lost and wandering.

    So, Afenifere must first believe in the DAWN initiative. Until that’s done, it will remain a toothless bulldog and an insignificant wailing wailer!

    ●Gideon Ogunleye,

    Lagos, Nigeria.

    Hmmm! This is a deep and thought-provoking piece.

    But where did we lose it?

    Unfortunately, successive leaders are only interested in themselves, not communal togetherness.

    Many of the ARG members who have had access to power seemed to have forgotten where they were coming from.

    May God help us!

    ●Ahmed Lawal,

    Aramoko-Ekiti, Ekiti State.

    I like this good piece on Afenifere.

    But who breaks the Berlin Wall between the factional groups in Afenifere?

    My brother, Afenifere is no more!

    ●Dr. Jimoh Agboola,

    Osogbo, Osun State

    Those who inherited Afenifere only did so for political gains, not service to the Southwest. Since they’re not attuned to the attributes of its founding fathers, we can now see the effects of the absence of ideology on the part of those parading themselves as Afenifere/ARG.

    In the olden days, whenever Afenifere spoke, it was with one voice and the country would be shaken to its foundation. Unfortunately, that attribute has been sold for selfish interests! It is sad!

    One way forward is to collapse all the factional and fractional groups of Fasoranti, Adebanjo and ARG to become one old and bold Afenifere, because united we stand, divided we fall! This can be done by way of the Afenifere Peace Summit, involving the three groups.

    ●Chief Biodun Aguda,

    Iloro-Ekiti, Ekiti State.

    Is Tinubu a candidate of Afenifere? If not, it will be morally wrong for Afenifere to set Yoruba Agenda for the president.

    Besides, Afenifere is to protect and promote Yoruba Agenda. So, how on earth would a socio-ethnic organisation support a candidate outside its territory?

    ●Tunde A. Akinpelu,

    Ibadan, Oyo State.

    ● KOMOLAFE wrote in from Ijebu-Jesa, Osun State, Nigeria (ijebujesa@yahoo.co.uk)

  • Nigeria: The changing governance story

    Nigeria: The changing governance story

    By Temitope Ajayi

    Tracking many stories of remarkable progress currently taking place in Nigeria can be a very difficult task. This is so because these important stories are lost to some who daily indulge in the cacophony of negative reports. These negative news often dominates the headlines.

    With a 24-hour news cycle that tends to focus only on the distasteful narratives, several Nigerians have been made to accept the view that nothing good is happening in their country.

    Those who rely on the mainstream media and social media as the only sources of news and information they consume are the worst hit by the cycle of misinformation that portrays our country as descending rapidly to the edge of the precipice.

    However, the reality is different: the country is making progress in leaps and bounds.

    Late Swedish physician and Professor of International Health at Karolinska Institute, Hans Rosling, his son, Ola Rosling, and daughter-in-law, Anna Rosling, extensively dwell on this subject in, “Factfulness: Ten Reasons We’re Wrong About the World – and Why Things Are Better Than You Think,” a book published in 2018.  In the book, the authors demonstrate that majority of the people are made to hold the wrong notion about the state of the world because the media project data, analyse trends and select stories to make people assume that things are getting worse around them.

    The authors assert that a majority of the people view the world as poorer, less healthy, and a more dangerous place to live in than it actually is. In other words, many people believe they are living in a worse period in the history of mankind because of misinformation.

    The same situation the Roslings describe in their book is at play in Nigeria, where individuals, interest groups, activists, analysts, self-serving politicians, and opposition elements constantly project and amplify negative stories.

    It is as if we are in a race with those who can say the most horrible things about our country.  Yet, we have an abundance of good stories to tell the world. We seem so numb to the good news that we are dismissive of breakthroughs and innovative trends.

    For instance, we downplay the significance of Dangote Petroleum Refinery and its possibilities to reflate the economy.

    Read Also: Tinubu appoints new Board for NAICOM

    Many people forgot so soon that we had been importing petroleum products for over three decades because the state-owned refineries are moribund. Our national economy bled, and the country was in a fiscal cul-de-sac for those years as a result of subsidy payments on petroleum products.

    Today, however, Nigeria is home to the largest single train refinery in the world with the capacity to process 650,000 barrels of crude per day.  Cynics do not see this as a breakthrough.

    Nigerians who are 60 years old and below started seeing modern rail infrastructure from 2016 when the All Progressives Congress-led administration of former President Muhammadu Buhari  commissioned the standard gauge rail system, beginning with Abuja-Kaduna route, later Lagos-Ibadan and then, the Warri-Itakpe.

    The national rail modernisation project is progressing with Kano-Katsina-Maradi and Kano-Kaduna standard gauge rail projects at different stages of completion. The contractor working on rehabilitation of the Port Harcourt-Maiduguri narrow gauge recently announced the completion of the Port Harcourt-Aba section. While the Federal Government is rallying stakeholders to promote economic integration across the country, the Lagos State Government recently launched two metro rail lines -Blue and Red Rail lines – as part of the state’s elaborate masterplan to build a modern and efficient megacity. Like Lagos State, there are visible signs of remarkable, quantifiable progress in several other states, including Kaduna, Kano, Akwa-Ibom, Rivers, Kebbi, Borno, Gombe, Oyo, Ekiti and Ogun, among others.

    A few weeks ago, the President Bola Tinubu-led administration embarked on the construction of the 700 kilometres Lagos-Calabar Coastal Highway that will connect nine coastal states in another bold move to further bolster economic growth and open up the country to productive economic activities.

    While it may be very easy for critics and other armchair analysts to ignore these developments and their significance to remaking Nigeria, there is no gainsaying that these projects and many more that are ongoing or about to be instituted across critical sectors are the core of President Tinubu’s Renewed Hope Agenda. Indeed, it is hard to process why the so-called critics and cynics can not see the Lagos-Calabar Highway project as a clear demonstration of the President’s commitment to harnessing the potential of our renascent Blue Economy.

    Despite what is bandied by the most vociferous critics, a recent policy intervention on the state of the economy by the Independent Media and Policy Initiative (IMPI), a think-tank group, refuted the apocalyptic prognosis of the economic situation of the country by opposition figures, led by former Vice President Atiku Abubakar.

    The experts at IMPI made brilliant and well-thought-out submissions that repudiated the doomsday prophecy of critics.

    Acting true to type, the People’s Democratic Party Presidential candidate in the last election, and a few others, including business advocacy groups, derisively heightened tension with their pronouncements on the state of the economy. They framed the country under the leadership of President Tinubu as a hostile business environment, scoring the administration low on business enablement. While politicians, such as Atiku Abubakar, will naturally play politics with everything to score cheap points, some corporate advocacy groups often raise needless alarms, ostensibly, to compel the government to do their bidding and usually in manners inimical to the interests of the people.

    For example, while private sector advocacy groups, such as the Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI) and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), regularly issue press statements on many businesses shutting their operations in Nigeria, such statements always fail to disclose that new businesses are also springing up in the country.

    It is not only in Nigeria that businesses shut down operations. And in any case, businesses wind up operations for many reasons that may have nothing to do with the operating environment.

    It is a worldwide phenomenon shaped by a variety of factors. For instance, when the Manufacturers Association of Nigeria announced that 767 companies shut down in 2023, the Small Business advocacy group in the United Kingdom announced that 345,000 businesses closed shop in the UK.

    The UK Group said: “More businesses closing down than starting up for the first time in 12 years.”

    While it is not good for any business to shut down operations, irrespective of the number of employees, those who project the negative narrative should be nuanced and more balanced in their analyses.

    In its submission titled, “In Defence of the Nigerian Economy,’ the Independent Media and Policy Initiative declared: “767 companies that closed down in Nigeria do not in any way come close to the 345,000 closures recorded in the United Kingdom in that same period. Neither can the number be compared to the 460,000 companies that shut down every quarter, that is every three months, in China, or the 10,655 Micro, Small and Medium Enterprises (MSMEs) shut down in 2022-2023 in India.

    “As routinely rendered, we are further informed by the Indian data that there were over 11,000 new firms that started business afresh for every one of the 175 shutdowns in 2022.”

    Interestingly, while the announced exit from Nigeria by GSK and Sanofi generated much furore on the social media and mainstream media last year, about the same period the two companies were planning their exit, indigenous pharmaceutical companies, such as  Emzor were making new multi-million Dollar investments to expand their production lines in Nigeria.

    More balanced news reports on Nigeria in that respect should have also included statistics circulated by the National Agency for Food and Drugs Administration and Control (NAFDAC), which indicated that 105 applications for the construction of drug manufacturing facilities across the country were approved, and 35 percent of the promoters of the approved applications actually completed construction of their factories. Within this period, Emzor Pharmaceuticals Company owned by Mrs. Stella Okoli, Japanese Multinational Pharma, Otsuka, and over 20 newly registered local drug manufacturers cumulatively, invested over $2 billion to complete their World Health Organisation (WHO)-compliant facilities to produce quality pharmaceuticals and essential drugs for Nigerians.

    In its ranking of Africa’s 100 fastest growing companies in 2023, Financial Times (FT) ranked 27 Nigerian businesses on the list.

    The FT list, again, validated the strength of the Nigerian economy and its viability as a business destination for investors seeking to make good returns on their investments.

    Since his assumption of office less than a year ago, President Tinubu has been bullish in addressing the identified problems besetting the investment climate in Nigeria.

    The administration has restored global confidence in the monetary policy reforms of the Central Bank of Nigeria (CBN) that have seen the Naira rebound strongly against the Dollar, and other convertible currencies, making the Naira the best performing currency in the world.

    On the back of the reforms embarked upon by the fiscal and monetary authorities, the country’s currency gained N900 against the US Dollar within a spate of two months. This is spectacular, but to subjective critics, they are unimportant.

    On security, the progress being made is noticeable and can be felt in the calmness that has returned to the South-East geopolitical zone.

    This is where the criminal activities of outlawed Indigenous People of Biafra (IPOB) group and its Eastern Security Network (ESN) have been brought under control. In the North-West zone, and parts of North-Central, most especially, Abuja, where there was a surge in banditry and kidnapping, the Nigerian Military and Police have successfully gained control and counterbalanced major threats to security of lives and property. The National Security Adviser, Malam Nuhu Ribadu, announced on Monday, April 15, 2024, that the security forces had rescued 1,000 Nigerians from their abductors without payment of ransom.

    This is the evidence of successful security operations across the country. Again, the cynics and inveterate critics will not find such feats interesting to amplify.

    In the technology ecosystem, Nigerian startup companies have continued to record big strides. At least 10 Nigerian startups were selected among 40 technology firms listed for the $4 million Black Founders Fund.

    The Black Founders Fund is sponsored by Google for Startups (GfS). Nigeria continues to lead the pack in tech startups and capital raising in Africa. In the First Quarter (Q1) of 2024, 121 African tech startups, led by Nigeria’s Moove, raised $466 million.  Of the total amount raised in Q1 2024 by tech startups on the African continent, Nigerian startups got the lion’s share of $160 million. Nigeria’s startup ecosystem has remained vibrant and a huge centre of innovation and driver of economic growth.

    A 2022 report on African Tech Startups Funding by Disrupt Africa also showed that startups from Nigeria accounted for 28.4% of the total funded ventures and received 29.3% of total investments in Africa.

    The report indicated that 180 startups from Nigeria collectively raised $ 976 million out of the $ 3.3 billion that flowed into the continent. From the Nigerian tech ecosystem, Andela, Flutterwave, Opay, Jumia, and Interswitch emerged unicorns out of a total of 7 unicorns in Africa.

    That each one of these five companies with over $ 1 billion in valuation came out of Nigeria is an affirmation of the progress Nigeria is making in human capital development.

    Another interesting twist to this enchanting story is that majority of the founders of the leading startups came out of the Nigerian school system. They had their education from primary school up to the university level in Nigeria.

    The story of Kiakia Bits Limited and Sycamore, two companies managed by innovative and enterprising young Nigerians, illustrates the impact Financial Technology (FinTech) companies are making on the economy as enablers of growth for small businesses. Established in 2016 by Olajide Abiola and his partner, Chiemeziem Anyadike, Kiakia has over 200,000 customers and has advanced credit worth over N20 billion to more than 12,000 small and medium scale enterprises within eight years. Babatunde Akin-Moses and two of his partners started Sycamore in 2019 after they met during their MBA programme at Pan-Atlantic University (PAU), in Lagos.

    Within five years, the company has gained recognition and reputation as one of the most visible and viable brands in the FinTech space. Sycamore has 140,000 registered customers, out of which over 10% are active.

    The value of transactions on Sycamore’s platform in dollar terms is in excess of $30 million. The company has disbursed over N25 billion in credit to various small and medium enterprises. A major revelation from both Kiakia and Sycamore is the report that 99% of their credit to small and medium scale enterprises are performing, an indication that the businesses they support are doing well.

    Overall, the groundbreaking performance of the Nigerian Exchange (NGX) as, possibly, Africa’s best stock exchange in terms of capital appreciation, the footprints of BUA Group in manufacturing and other consumer goods, the solidity of IHS Towers and MainOne as Africa’s telecoms infrastructure backbones, the disruption caused by Air Peace on the lucrative Lagos-London route, the grandeur of the sprawling Lekki-Deep Sea Port rank highly among countless high-impact business endeavours. And finally, the indomitable spirit of Nigerians epitomises the narrative of progress that should be regularly amplified by all patriotic Nigerians.

    – Ajayi is Senior Special Assistant to President Tinubu on media and publicity.

  • Reverse the hike in electricity tariff

    Reverse the hike in electricity tariff

    By Ibrahim Mustapha Pambegua

    SIR: The recent decision of the Federal Government to further remove electricity subsidy was greeted with mixed reactions from Nigerians. The removal of electricity subsidy has come at a wrong time when Nigerians are yet to recover from the shock of last year’s hike in the price of petrol.

    With only 44 percent metered customers, Nigerians have thought that government, through the National Electricity Regulatory Commission (NERC), will provide adequate meters and improve power generation and distribution in the country. However, this has not been the case.

    There is nothing wrong to ensure cost reflective tariff among the numerous energy consumers in the country. The categorisation of customers into different “bands” by NERC can be seen as a good development. The question begging for answer is: will the new plan address the erratic power supply? For instance, under NERC’s new tariff plan, customers on ‘Band A’ will enjoy 20 hours of power supply at 225kWh as against N68/kWh.

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    The ‘Band A’ customers, which include elites, banks and factories, can be able to shoulder the new tariff hike. But further breakdown of the new tariffs reveals an alarming burden that the average Nigerian will face in affording electricity on a daily basis. Under the new tariff plan, 24 hours of electricity per day will cost a staggering N5,400, amounting to an unbearable monthly total of N162,000 and an astounding yearly total of N1,971,000. These exorbitant figures are simply unaffordable for the majority of Nigerians who are already grappling with economic hardship and trying to make ends meet.

    The new tariff regime will also see factories’ cost of production go up with corresponding increase in prices of goods and services. Those companies have no options than to pass the burden to the end users (consumers). According to the NERC, the new tariff will affect 15 percent of customers who enjoy 40 percent of power supply. But at the end, millions of Nigerians will be worst hit by the new tariff regime.

    It is a well-known fact, even in developed countries, that electricity subsidy exists. Government provides or grants subsidies to companies and other households in order to keep the price of good and services within the reach of the common man. The rush with which the Bola Tinubu administration is eliminating subsidies amidst growing poverty in the land calls for great caution. Already, Nigerian electricity workers have condemned the hike in tariff and called for immediate reversal. Their union chided the Minister of Power and NERC for not consulting them before they came up with the plan.

    The Federal Government should reverse the removal of electricity subsidy. Instead, government needs to improve power supply and exploit other alternative sources of energy such as solar and winds. Government should hasten the completion of abandoned Mambila power project to improve power generation and distribution in the country.

    • Ibrahim Mustapha Pambegua, imustapha650@gmail.com

  • Burden of an ill-conceived electricity tariff increase

    Burden of an ill-conceived electricity tariff increase

    By Sunday Onyemaechi Eze

    Nigeria is a nation with a long history of perennial challenges of public power supply. The country seems to have unfortunately accepted the anomaly as part of its national life. Since one came of age, the power sector bears the trade mark of inefficiency. The problem of insufficient power supply has remained unchanged. The old reasons adduced for poor performance in the sector more than two decades ago are not different either. Despite the poor supply situation, citizens still pay through their noses for an underperforming power sector which delivers little or no quality services. Many Nigerians cannot remember a time when they enjoyed constant public power supply up to 15 hours per day. A lot of money has been spent and much more is still allocated to the power, sector but no remarkable progress has been made.

    What ordinary Nigerians constantly experience is poor service outcome, routine tariff increase and general inefficiency. The latest assault on Nigerians is the announcement of new tariff regime and classification of customers, currently placed on new categories of bands A-E. The citizens had no input when decisions were taken on this band classification. Effective from April 3rd, the charges of selected customers on Band ‘A’ has increased to over 300 percent. Days after, the Federal Government has hinted on extending similar measure to other band categories.

    The unit cost of electricity for those placed on Band A was jacked up from ₦68 per kWh to ₦225 per kWh excluding VAT. Those on other bands are denied electricity supply in a failed attempt to meet up with the obligation to band A customers. The prevailing lie in government circle was that the increment only affected a small percentage of Nigerians and that government still subsidises electricity. Officials implementing government policies are often economical with the truth regarding the impact of anti-people policies. In this case, the only thing that matters to them is saving without considering the economic impact of such savings on the well-being of the people.

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    Government failed to understand that industrial customers whether big, medium or small placed on Band A will factor in the cost of fuel, diesel and the increase into the prices of the goods and services they provide. Therefore, whether customers are placed on Band A or other categories with or without electricity, the burden of every company’s expenses is transferred to the ordinary people, namely the customers/consumers.

    When will government concede to the mood of the nation and inputs of the masses before taking any decisions on issues directly affecting them?  Pundits say the band idea is a ploy to assist the cash-strapped Discos to raise fund. This is happening in a country where power outages last more than 24 hours daily or even days in most places. It is also happening in a country where the national power grid had collapsed more than 58 times between 2017-2023. How could government remove subsidy on electricity, but goes on to subsidise hajj fare to the tune of over N90bn? Is Nigeria ready to move from a poor nation to a developed one?

    Nations occupying the front row in industrial growth and development attain such feat with serious investment in power supply. There is no gain saying the fact that, access to uninterrupted public power supply has become a tall dream in Nigeria. The more money is spent on the sector, the worse it becomes. Bogus contracts entered into by government with industry players like Siemens to remedy the situation has suffered several set-backs, and the end is not yet in sight. The long wait for remedy continues while government officials have often admonished citizens to keep hope alive. Both past and present governments do not seem to have a grasp of the fundamental problems bedevilling the power sector. If they do, Nigeria cannot be shamelessly talking about 4,500mw of electricity since 1960.

    One major problem facing the sector is the appointment of people without requisite knowledge and experience. The endemic corruption in the sector and lack of purposeful goals have also contributed to the obvious failure. Almost all ministers of power since 1999 except Engr. Bello Suleiman were/are square pegs in round holes. They were/are green horns occupying compensatory political positions earned on recommendation or political party affiliation. As novices, they come on board bereft of ideas or blueprint to drive government agenda. It is a disservice appointing an accountant or a lawyer as minister of power.

    Policies often put in place by these appointees to address the challenges are mostly badly thought out, externally influenced or geared towards inflicting more pains. Since year 2000, tariff increase has been the only visible item dominating and governing the Multi-year Tariff Order (MYTO) while other germane issues like customer privileges are relegated to the background. In fact, Nigerians wake up to multiple tariff upward reviews every two to four years without additional power infrastructure to support the aging ones or addressing the needs of several rapidly expanding communities.

    There is no home grown solution to the intractable problems of power except borrowed directives handed down by World Bank or the International Monetary Fund (IMF). These borrowed ideas deepen and worsen the economic woes of the poor citizens. A country where little children always jump up in excitement and shout “Up Nepa!” when public power supply is restored after days of blackout has no business increasing the cost of electricity or services not adequately rendered. Those in charge should go back to the drawing board, comprehensively work hard to improve on the sector instead.

    The power sector was painfully balkanised, claimed and annexed in favour of some highly placed individuals just like the Europeans did to Africa in the 1885 Berlin Conference. The companies were shared as business status symbol serving the interest of a few. Provision of excellent services for Nigerians was secondary on the power sector reforms agenda. How could a country allocate such all-important national asset to incompetent, non-experts in government or their associates whose interest only hinges on making quick money. The Nigerian bidding system is so magical that one wonders how these ill-prepared investors schemed their ways through the processes without anybody flagging their glaring incompetence. The process deliberately accorded certain privileges to bidders/owners who cannot differentiate between a fuse and feeder pillar. 

    The country should as a matter of urgency innovate and diversify in areas of power generation. This could be regionalised based on the corresponding resources within every geographical zone. The Northeast is blessed with potentials in solar energy. The Northwest is endowed with the blessings of hydro-electricity and wind. The Northcentral can boast of a good level of coal deposit and resources for hydro-power supply. The Southeast is blessed with little water, gas and abundant coal deposit. The Southsouth and Southwest have resources in hydro-power and gas. The world is going green and Nigeria has to run with the idea together with the world.

    Unfortunately those at the helm of affairs and friends of people and institutions close to the corridors of power have only succeeded in allowing the sector to thrive, but generally restricted it from flourishing. They have succeeded in bringing the sector down on its knees and resorted to untenable ideas and prescriptions not peculiar to Nigerian circumstances. With the enormous human and financial resources invested in the power sector, after 63 years of existence, Nigeria has no business being in the league of nations lacking adequate power supply.

    This electricity tariff increase is ill-conceived and equally ill-timed. It should be halted. Let Nigerians breathe.

    • Sunday Onyemaechi Eze, a Media and Development Communication Specialist, writes via sunnyeze02@yahoo.com.

  • 1999 Constitution and the future of Nigeria

    1999 Constitution and the future of Nigeria

    By Ponle Sueez Akande

    SIR: Assuming the reader knows the constitutional history of Nigeria; and appreciates, also, that the 1999 constitution is essentially unitary; then he or she would appreciate that agitations for devolution of powers, from the national government to the subnational government or the constituent or  federating units, would continue without break; until devolution is achieved.

    What many may not appreciate is that there may not be restructuring to true federation or devolution of powers before year 2028. Furthermore, there may not be restructuring to true federation of Nigeria before the year 2031. In these eventualities, how would the present situation of gross insecurity, mass unemployment, mass poverty, gross infrastructure deficits, mass illiteracy, corruption, capital flight, inflation, grossly poor level of industrialization and over dependence on grossly inadequate foreign earnings from exportation of crude oil and gas, with escalating foreign debts have become, reduced or worsen?

    Governance is social science, though more conjectural than as physical science or natural science is; and is, indisputably, relatively empirical; guided, as such, by principles and facts.

    The contravention or transgression of scientific principles are of inescapable, undesirable consequences. The formulation or design of a constitution of any country must be based on the historical and present social, economic and political facts of life in that country that is the cultural facts,  culture being conceived as the totality of all the facts of life of a country. And Nigeria, not being mono-cultural, but heterogeneous, cannot – scientifically – have an essentially unitary constitution. It must have a confederal or federal constitution.

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    Accordingly with its peculiarities, Nigeria  must have a confederal or federal constitution, accepted by all or most ethnic groups of the country. This is the ratio decidendi – rationale – for a people’s constitution of Nigeria, the restoration or achievement of a truly federal or confederal constitution of Nigeria. Ethnic plurality of a nation-state calls for, or necessitates, plurality of ethnic or constituent constitutions, with substantial devolution or constituent reservation of some crucial powers, thereby.

    Ethnic groups, societies or communities, with different sets of facts of life in the socio-economic sectors must be governed by different sets of policies in their respective areas or jurisdictions.

    Education, industrialization, urban and regional planning, judiciary, jurisprudence, laws, labour and employment, security and policing, agriculture, banking and finance, lands, transport, water, health, environment, commerce and trade, public administrations, public finance, mining, energy, electric power, engineering, technology, communications, etc. are all interdependent; and different sets of integrated policies in these sections are only respectively appropriate for different ethnic groups. Only matters of external affairs, defense, money and central banking, and a few others, must be centrally legislated upon in a multi-ethnic nation-state such as Nigeria. It is the transgression of the fundamental principle or law of social-science that is the root-cause of the developmental retrogression or degradation of Nigeria. This transgression is the imposition of the unitarian 1999 constitution as amended.

    Without restructuring or devolution of powers in Nigeria, before the year 2027, then  or thereafter, there may be a breakdown; or the total foreign debt of Nigeria would have become an amount in the region of two hundred [200] billion US dollars, by 2027. This is very dangerous functionally.

    But, how can we achieve restructuring Nigeria, with devolution powers, before year 2027? How does President Tinubu formulate the respective draft constitution or executive bills? With substantive devolution powers, do we still reasonably retain the present 36-state structure, with the inherent diseconomies of scale of almost every state in Nigeria?

    What if the required two-third majority of the whole members of the National Assembly is not secured? Or what if the required two-third majority of the 36 state assemblies is not secured? This prospect is very dangerous.

    Nigeria urgently requires ingenious social engineering, for take-off and acceleration of the process of industrialization of the country. Nigeria is at the stage of bad pre-conditions for take-off of industrialization. The five successive stages of industrialization are: pre-conditions for take-off, take-off, transition to industrial maturity, industrial maturity, and search for quality.

    Nigeria cannot achieve take-off of industrialization with the dysfunctionality of the current urban and regional development, and the respective constitutional incapacitation of the constituent states of Nigeria without achieving the urgent imperative of restructuring to a six-region, truly federal structure, instead of, or super-imposed upon, the present 36-state structure of Nigeria.

    • Ponle Sueez Akande, akandeponle01@gmail