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  • Amnesty: From Kuku to Ndiomu

    Amnesty: From Kuku to Ndiomu

    • By Ranami Olali

    By default or design, two great minds and passionate crusaders for the betterment of the lives of Niger Deltans met recently in Abuja.  Kingsley Kuku, a former boss at the Presidential Amnesty Programme (PAP) was guest of Major-General Barry Tariye Ndiomu (Rtd), the incumbent interim administrator of the programme.

    For Kuku who was special adviser to the late President Umaru Yar’Adua on the Niger Delta and chairman, Presidential Amnesty Implementation Committee, it was home-coming to the office that he presided over and used to calm the nerves of agitators in the oil-rich region. Yar’Adua had in 2009 created the Amnesty Programme through an implementation committee. Kuku was one of earliest Niger Deltans to rock the peace-building baby in its cradle. This makes him a midwife of the programme specifically designed to de-radicalize the restive youths in the Niger Delta, train them through various capacity-building initiatives and have them mainstreamed into the larger society.

    The obvious success of the programme in re-orientating the once restive youths and ensuring peace within the region made President Goodluck Jonathan to appoint Kuku as his Special Adviser on the Niger Delta and chairman, Niger Delta Presidential Amnesty Programme in January 2011. Jonathan later reappointed him into the same position in July 2011 after he was sworn in as duly elected president in the 2011 general elections. That marked a tipping point for the programme as Kuku and his team at PAP achieved the disarmament and demobilization of 30,000 ex-agitators. The instant and visible impact of the programme was noticed in the increase in crude oil production which translated to more revenue for the nation.

    It was, therefore, expected that President Muhammadu Buhari would retain the programme against spirited campaigns from some persons for its scrapping. Buhari did not only retain the programme, he stridently sought for a Niger Deltan of integrity to man the programme after series of corruption allegations that trailed the administration of the programme. He found one in Ndiomu.

    From inception, PAP has been administered by six chief executives.  Such high leadership turnover is symptomatic of a dysfunctional agency. The roll call: Lucky Ochuko Ararile, (a retired Air Vice Marshal); Timi Alaibe, (a former managing director of the NDDC) and Kingsley Kuku, (a former member of the Ondo State House of Assembly). They were Special Advisers to the President on Niger Delta and Coordinators of PAP, at various times. Then came Paul Boroh, (a retired Brigadier-General); Charles Quaker Dokubo, (a professor of International Affairs) and Milland Dikio, (a retired Colonel). Sadly, none of these men served out a full tenure of four years as recommended by law. In some cases, reports of abuse of office and unwholesome financial dealings which negated the founding objectives of PAP trailed the tenures of these CEOs precipitating in their resignations or outright dismissals. But Kuku was an exception among the past leaders as he was adjudged the best by stakeholders in the region.

    The appointment of Ndiomu by Buhari, in context, was hailed as a masterstroke. He was seen as the fit man for the job of interfacing and re-orientating the ex-agitators in the creeks. He was appointed on very strong recommendation. The then President Buhari had sought for a rounded Niger Delta person who commands respect in the area. The brief was straight forward; get someone the people of the region can easily relate with, trust and have confidence in, to guide them out of the paths of violence. A father figure who will ensure that what was meant for the people, especially the ex-agitators, gets to them.

    Those things earmarked for the people were clearly defined: capacity building through skills acquisition, monthly stipend and turning the ex-agitators into employable, skilled up personnel or making them entrepreneurs and creators of wealth and jobs.

    Ndiomu understands this brief and he has set out to actualize them. Little wonder visiting Kuku was full of laudation for Ndiomu for expanding the frontiers of the brief beyond training and upskilling of ex-agitators but also setting up a unique cooperative scheme solely for the empowerment of the participants.

    The cooperative scheme initiated by Ndiomu has enabled most of the youths to grow their businesses and become entrepreneurs. Though funding is still a challenge, but with the fiscal prudence exhibited by Ndiomu so far, it is expected that the Bola Ahmed Tinubu government will deploy more funds to the agency to enable it effectively achieve its mandate. More funds will translate to more empowerment and more people being captured into the Programme.

    Both Ndiomu and Kuku agreed that PAP has helped to reflate the national economy. They reason that full resuscitation of the vocational centres within the region coupled with other trainings and scholarships will not only migrate Niger Deltans from pain street to productive clusters, it will advance the Renewed Hope vision of President Tinubu by increasing the threshold of local content in aviation, oil and gas and other sectors where the ex-agitators are daily being trained.

    The overall goal of PAP is to achieve enduring peace in the region. Ndiomu’s innovative management style has helped the agency to achieve and sustain this through active communication engagements with the various communities of the Niger Delta by upgrading the strategic communications team.

    The ex-agitators want jobs after graduation. Ndiomu is doing just that. Between October 2022 and now, some skilled-up ex-agitators have been absorbed into some agencies. The NSCDC, NITDA, Office of the Head of Service, Nigerian Police Force (NPF), the Nigerian Navy, Ministry of Finance, among others have boosted hope for job placements for already trained ex-agitators. Thousands of such trained ex-agitators are projected to be employed in a new push by PAP to get them to participate in securing oil facilities and installations.

    The setting up of micro-business clusters and cooperatives, a brainchild of Ndiomu, to empower eligible delegates remains one of the most profound legacies of the programme. Over N1 billion has been earmarked to support delegates’ micro-business start-ups.

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    There is also the launch of the Formal Education Trust Fund (FETFund), an ambitious N1 billion initiative with funds to be sourced from IoCs (International oil Companies), state governments of the Niger Delta as well as international development partners. Management of the FETFund is by a board of trustees comprising eminent personalities of Niger Delta, ex-agitator leaders and technical experts. This kick-started the process for the strategic transition of the PAP into a more sustainable entity with a wider mandate targeted at the youth population of the Niger Delta region.

    Kuku spared no words to commend Ndiomu for continuing with projects he inherited rather than abandoning them. This also were the testimonies from relevant stakeholders in the region including the Ijaw National Congress, Ijaw Youth Congress, ex-agitators, traditional rulers among others. In Ndiomu, they see a man who is on top of his game. His exemplary success at PAP made President Buhari to assign an extra responsibility to him as the chairman of the Federal Government’s Special Investigative Panel on Crude Oil Theft/Losses.

    In barely one year, Ndiomu has raised the bar of efficiency at the programme, re-engineered a new order of probity and openness and widened the net of reintegration to include entrepreneurship. Kuku said he was “happy to stand by, stand with and move with Ndiomu” on account of his excellent performance on the job of making the Niger Delta and Niger Deltans feel a sense of belonging in the national matrix.

    • Olali, environmental activist, writes from Port Harcourt.
  • Lagos demolitions and ethnic insinuations

    Lagos demolitions and ethnic insinuations

    • By Kunle Adeshina

    It is no longer news that the Lagos State Government has intensified efforts toward sanitising the state’s environmental landscape. This is being done through a variety of strategies, which include dislodgment of traders from illegal trading spots, demolition of unlawful buildings, strict enforcement of building/environmental laws as well as reclamation of road setbacks among others.

    It is, however, rather absurd and disgusting that some people are trying to give the exercise ethnic and tribal colourations. That, indeed, is one of the banes of development in our society. It is part of the reason why our progress has been stunted.    

    The truth is that from the outset, the Commissioner for the Environment and Water Resources, Tokunbo Wahab was very categorical that it will no longer be business as usual for perpetrators of environmental infractions in the state.  

    This stance is quite logical, considering the degradation the environment has suffered overtime. Upon assumption of office, the commissioner embarked on a tour of ongoing projects as well as areas affected by perennial flooding in places such as Aboru in Alimosho, Oladoje in Ojokoro, Area G in Ogba and Jankara/Idumagbo in Lagos Island.

    Noting the colossal damage done to the environment through flagrant disregard for building codes and regulations as well as astounding environmental abuse, Wahab was unequivocal in his insistence that application of the law is non-negotiable.

    Things were so awry! Along the Lekki Phase 2-Ikota channel, for instance, structures have been illegally put up on the drains. After a series of meetings with the property owners, a number of corrective measures were recommended to be undertaken to mitigate the infractions.

    However, rather than abate, more structures started springing up in the affected area. Land speculators and developers became more brazen, fencing off the upstream of the Mobil Ologolo area totally sand filling the channel to start another round of construction.

    Based on SOS messages from the residents, from about 22 communities, who were regularly being traumatized by floods, the government had no choice but to take decisive decisions, which included demolishing unlawful structures.

    At the Oke-Afa Bucknor community in Ejigbo LCDA, some property owners equally took brazenness to a new height by totally blocking the alignment of the Oke-Afa Bucknor channel.  Sadly, this has been responsible for the persistent flooding of areas like Jakande Estate in Isolo as well as structures by the foot of the Ejigbo-Isheri Osun Bridge.

    After two years of legal battle, a Lagos High Court in Ikeja recently struck out the case instituted by the property owners against the government. 

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    The same level of barefaced disregard for environmental law was demonstrated at the Dodan Barracks praying ground in Obalende, Lagos where several buildings extended their fences into the setback of the drainage, thereby impeding free flow of water when it rains.

    At an interactive session convened by the ministry after the serving of contravention notices and pleas for mercy by affected property owners and their attorneys, the ministry opted to be humane by reducing the setback to be observed from the mandatory 3.5 metres to two meters. It also gave the property owners the option of removing the contravening walls and fences themselves to minimize damages.

    From the foregoing, it is quite evident that something urgent needed to be done to redress the unabashed devastation of the environment through illegal human activities. It is in view of this that the commissioner approved the serving of 7-days’ notice on illegal properties in some parts of the state, especially in the Lekki axis.

    Around the same time, the Federal Housing Authority (FHA) equally began to enforce environmental rules at Festac Village and its extension (including Abule-Ado) in the Amuwo Odofin Local Government Area. It should be stressed that whatever is being done in this axis is strictly a federal government affair and it has nothing to do with the state government.  

    Pitifully, many self—seeking public affairs commentators and ethnic bigots have been going about making unfounded claims about the government’s efforts to cleanse the environment.

     Many are busy peddling half-truths on social media, claiming that the demolitions were intended to target members of the opposition.

    The truth, however, is that none of the owners of the demolished structures possess legal documents approving their illegitimate buildings. Anyone with a contrary claim is quite welcome to back such up with relevant documents.

     Right from Lekki 2-Ikota in Eti-Osa to Oke Afa-Bucknor in Oshodi-Isolo LG to Ajiran, Agungi, Orchid, Osapa and Igbo Efon among others, all the affected structures were erected without approved building plans and drainage clearance approvals.

    In view of this, the calls for the prosecution of officers in the regulatory offices do not arise. We all watch with glee when regulatory enforcement officials approach sites of buildings under construction to ask for approval documents and are chased out with hired thugs, who sometimes maim and brutalise them.

    In our neighbourhoods, we watch with an “I don’t care attitude” when work continues on buildings marked with “stop work order”. We see all the mindless contraventions but choose to pretend as if all is well. However, when the government moves to wield the big stick, people will suddenly find their voices and begin to justify illegalities.

     Accusing the Lagos State government of ethnic impunity is to say the least absurd and unfair. Today, the state public service has in its fold Nigerians that cut across the major ethnic/ tribal divides in the country.

    The relative peace being enjoyed in the state amply reflects the unrelenting efforts of the government to accommodate various interest groups. The government has a healthy relation with the various ethnic and tribal groups in the state.  The result of this robust relationship is the atmosphere of peace and harmony that currently reign in the state.

     The issues involved in the development and growth of Lagos State and, indeed, Nigeria transcends ethnic and religious sentiments. The brotherly love and bond that have existed between the Lagos State government and the diverse ethnic and tribal groups in the state must not be compromised.

    Fifth columnists, whose major preoccupation is to fan the embers of disaffection for self-seeking interests must not be allowed to profit, as it is their practice, from the current false campaigns.

    Respected elders and statesmen must not be seen championing divisive ethnic causes. Agba ki wa loja kori omo tuntun wo (elders must not permit untoward

    • Adeshina is of Ministry of the Environment and Water Resources, Alausa, Ikeja.

  • Of Climate Change and Green Africa

    • By Felix Oladeji

    The global conversation on climate change in Africa tends to be focused on physical risks. Climate models show that the continent is considered to be among the regions of the world that could be hardest hit by the changing climate. And with 600 million Africans still without energy access and 36 percent of the continent’s population living in extreme poverty, low levels of resilience and adaptation in many countries are likely to exacerbate the socio-economic impacts of climate change and make the continent’s pressing development imperative more challenging to achieve.

    But what if this is only part of the picture?

    The data landscape on emissions in Africa is relatively more fragmented and diverse than other regions. The detailed emissions data from multiple sources indicate the following emissions breakdown for the continent:

    Land Use, Land-use Change and Forestry (LULUCF): 2.2 Gt carbon dioxide equivalent (CO2e), about 40 percent of total; agriculture: 1.1 Gt CO2e, about 20 percent of total; industry: 0.8 Gt CO2e, about 15 percent of total; power: 0.5 Gt CO2e, about 10 percent of total; and transportation, waste, and buildings: 0.8 Gt CO2e, about 15 percent of total.

    At a total of 5.4 Gt CO2e, these numbers suggest Africa currently contributes just under 10 percent of global greenhouse gas emissions—a somewhat higher share than often cited, as this includes non-energy emissions and all greenhouse gases. However, it is worth noting that at 4.5 t CO2e per annum, the average per capita emissions in Africa are much lower than the annual OECD average of 10.0 t CO2.

    The sectoral mix on the continent is skewed more towards agriculture and LULUCF and less towards industry, power, and transportation compared to the typical emissions profile of a developed country. By comparison, over three quarters of European emissions come from industry, power, and transport. Because of its different emissions profile, the de-carbonization pathways of African countries will likely differ—in some respects significantly—from those of developed countries. The continent’s sectoral composition, which includes a high economic focus on basic materials production, rapid economic growth and urbanization rates, constrained government budgets and capabilities, and last but not least, the imperative of continued inclusive growth to advance living standards and health, will also affect its de-carbonization choices.

    While generalizations are difficult, key differences in typical African de-carbonization journeys will likely include a strong focus on decentralized renewable power solutions alongside grid-scale renewables to enable universal energy access; some build-out of gas power capacity to provide near-term flexibility to balance renewables’ intermittency; and a greater emphasis on agriculture, land-use change, and cooking.

    The scientific consensus is that global warming of 2°C relative to pre-industrial levels will be exceeded during the 21st century unless rapid and deep reductions in CO2 and other greenhouse gas emissions occur in the coming decades. It is also clear that not all regions will be affected equally. Parts of Africa, for example, are warming faster than many other world regions, and there is a high probability that African countries will be among the most severely affected by intensifying climate hazards. At the same time, the continent’s levels of adaptation and resilience are among the world’s lowest. Around 80 percent of African countries have vulnerability scores in the lowest band, meaning that they are likely to be more sensitive to climate hazards and less able to adapt to or cope with climate change.

    Moreover, low levels of insurance and savings in many African countries mean that recovery after a disaster typically takes much longer. This puts lives and livelihoods at risk on an unprecedented scale, threatens human health and wellbeing, and jeopardizes hard-won economic gains, which, in turn, could undermine societal stability.

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    Furthermore, the deep structural changes now underway in the global economy as countries gear up to transition to net-zero emissions by 2050 are resulting in another set of economic risks for economies in Africa, commonly referred to as transition risks. The main concern is that a move towards de-carbonization globally could lead to a decrease in demand for fossil fuel exports and a prioritization of low-carbon-intensity production alongside cost by buyers of commodities, which could negatively affect the global competitiveness of African exports. As African economies are generally more dependent on commodity exports than most regions, this could have adverse consequences for employment and fiscal health. These risks are amplified by the generally more constrained monetary capacity of most African countries, which limits their ability to invest in structural countermeasures.

    As a result of its high exposure and vulnerability to climate hazards, a third of the people considered most at risk in the world live in Africa. About 370 million people—roughly 30 percent of the total population of the continent—live in areas which are likely to experience high levels of climate hazards and to have high vulnerability. By contrast, 19 percent of the total population of Asia, four percent of Latin America, and two percent of Oceania are exposed to this combination.

    An analysis by the McKinsey Climate Analytics team suggests that if the world sees a 2°C increase in average temperature by 2050, the number of Africans exposed to one or more physical hazards related to climate could almost double from approximately 460 million people today to more than 900million. This increase is partly due to rapid population growth (tempered by increasing urbanization), but the primary drivers are the broader geographic reach and increasing intensity of climate hazards, with 45 percent of the population likely to be exposed to at least one climate hazard by 2050 compared to 36 percent today. The top four physical hazards confronting Africa in a 2°C-by-2050 world are as follows: Heat stress: Upwards of 640 million Africans could be exposed to more days with high levels of heat and humidity; Agricultural droughts: About 175 million people in agricultural regions could experience an average of seven to eight droughts per decade, making it much harder for smallholder farmers to maintain a livelihood in rain-fed agriculture; Flooding: Nearly 130million more people could be exposed to severe riverine and/or coastal flooding driven by rising sea levels and intense rainfall events which could breach existing defences; and urban water stress: About 20 million more people living in urban areas could experience water stress, meaning that they may not have access to adequate water supplies for drinking, washing, and maintaining industrial operations. This situation is likely to be exacerbated by continued unplanned urbanization.

    The direct economic impacts of these events could intensify the hardships.

    Rising temperatures may reduce the amount of time it is possible to work outside by a quarter, cutting productivity, particularly for those employed in outdoor occupations, while increased droughts throughout the growing season could impact crop yields. External research suggests that staple crops such as rice and wheat could be hardest hit with possible yield losses of 12 percent and 21 percent respectively by 2050.

    As things stand there is insufficient funding available to the continent either to adapt to the risks or capture the opportunities available. Initial steps may include setting up a cross-regional effort to overcome investment barriers, and engaging with donors to match climate finance pledges with concrete projects. Decarbonize the grid and commit to an energy transition plan to provide universal zero-carbon energy access. The steps may include drawing up an integrated plan for achieving universal energy access by 2030 and fully decarbonizing power production by 2040, and identifying key roadblocks and working with international development partners on removing them.

    •Oladeji writes from Lagos.

  • Letter to President Tinubu on public varsities

    Letter to President Tinubu on public varsities

    • By Oludayo Tade

    The country is hard. Nigerians are not smiling. The harsh social-economic realities are hard-hitting. When Mr President announced that subsidy was gone, it actually meant gunshot for many people who are still nursing the unending wounds from that policy declaration.

    Mr President, the university system is under attack by the ruling class. Maybe you don’t know or your aides didn’t bring it to your notice. Lecturers are using their blood to sustain the remains of the public university. To get courses accredited in many departments in Nigeria public universities by the National Universities Commission (NUC), lecturers in those departments contribute money to prepare for the accreditation because most of these universities don’t release money or the school administrations have also become nonchalant like their political class counterparts.

    It is very bad in some institutions; door label/tags are paid for by staff. I had a colleague who brought his generating set to school to power his class because he wanted the students to get some things. After being frustrated by the same system, he resigned and moved to a better place where he is better appreciated for his worth. He would only be coordinating people to earn his living. Some years ago, I could print project materials for students with my money, but today, I no longer do that. If I dare to do that, my dependents will suffer the consequences of that action. The burden of moving to school with the current price regime due to subsidy removal is killing. You are either teaching or attending meetings throughout the week. Salaries remain constant, expenses keep rising. Those you support with money at the end of the month tell you to help them add to what you pay them but you, as the source, nothing has been added to what you are paid since 2009!

    Mr President, lecturers have been on the same salary since 2009. Your predecessors signed agreements with the Academic Staff Union of Universities (ASUU) but were not faithful to it. As a responsible union of intellectuals, the union calls attention of government to the degeneration of things in the public universities and its implications for national growth and development. Mr President, the government of Goodluck Jonathan carried out NEEDS assessment of public varsities in 2012. The findings shocked many. The government found that about N1.13trillion would be enough to arrest the infrastructural decay. Only former President Goodluck Jonathan released N200 billion at once. He pledged to release for the succeeding year in tranches quarterly; the union went on strike when that didn’t happen. Your immediate predecessor, Muhammadu Buhari came on board and literally used military approach and was not committed to education.

    Mr President, as I write, the federal Government owes lecturers billions of naira of earned academic allowances for more than six years. If this is not clear to you, it is the money for doing excess teaching and excess supervision. This happened because federal government refused to recruit more lecturers and ASUU struck a deal that those doing more than they ought to do should be compensated until government is able to employ more hands.

    While you were campaigning to become president sir, and we were on strike, your Chief of Staff, then Speaker of House of Representatives, Femi Gbajabiamila mid-wifed the suspension of the strike, reaching some informal agreements with ASUU. Now that you are in power, with him closest to you, we learnt you want us to sign ourselves into perpetual slavery that we will not be able to fight for our rights again in the future. I don’t want to believe this sir.

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    Or is it true that a comrade in government is a lost comrade? Mr President, the lecturing and supervision affected by the strike have been done and the students have graduated but the workers are yet to be paid. Some of our colleagues died in their offices. Some cannot effectively meet societally imposed obligations. 

    Sir, it may interest you that many universities brought out advertisement for vacant lecturing positions. A few applied. Among those selected, some didn’t pick up the appointment. Those who picked up the employment in some universities did not stay up to three months before they tendered their resignation. They could not believe what they were paid and the volume of workload allocated to them. Those still on the job are waiting for their planned alternative to click before they abandon their institutions to their fate. What then is the sin that lecturers have committed to warrant such treatments?

    Someone asked: is it a crime to choose to lecture in a Nigerian university? Mr President, I will be happy if you can also persuade scholars abroad to come and lecture in Nigeria just as you are doing to attract investors to Nigeria. This will let you know how attractive the salary you pay to Nigerian lecturers is to attract scholars to your universities. Who will come to where there is no light to work? Who wants to receive poverty wage? Who will come to where the intellectual community is derided?

    Which foreign scholar will come to Nigeria to teach six courses and hundreds of students in a classroom that has no public address system? Mr President, there is growing frustration among lecturers and attitude to work is being negatively affected. There is no motivation, salaries have been seized and/or delayed with no explanations. There are regrets here and there among those who returned to Nigeria after their scholarship abroad. Shall we then ask those not catered for by Nigeria to be fervent in teaching and research without adequate funding and motivation? Do you expect poorly paid lecturers to use their salaries to carry out researches for your universities to rank among top universities in the world?

    Sadly, to appoint lecturers now, Abuja people dictate who should be employed into our universities. My fear is about the future outcomes of what government is (not)doing. As it is said: the children we fail to train, will sell the infrastructures that we labour to build. You need to invest in people. Invest in education because those you call developed countries bear that name because of advances in science and technology as a result of their investment in education. Public university needs urgent attention and rescue. The university system is asking you, Mr President: When will it be our turn?

    •Tade, a sociologist writes via dotad2003@yahoo.com

  • Making Ogun a giant construction site with Budget 2024

    Making Ogun a giant construction site with Budget 2024

    • By Kayode Akinmade 

    Watchers of developments in Nigeria’s Gateway State would not have been surprised as the key deliverables itemized by the state governor, Prince Dapo Abiodun, when he laid the N703.03b n 2024 budget proposal for before the state House of Assembly last week. A breakdown of the “Budget of Sustained Growth and Development” shows that it has N287.37billion and N415.66billion as recurrent and capital expenditures, respectively. The specifics: N95.05 billion will take care of personnel costs, N27.35 billion is projected as consolidated revenue, while N59.09 billion will cover public debt charges. With N105.88 billion for overhead cost and N415.66bn for capital expenditure, the appropriation bill projects a lofty16 per cent (N109.219 billion) for education and 12 per cent (N81.185 billion) for health. The sum of N28.886 billion (four per cent) will go into housing and community development, with N14.218 billion (two per cent) for agriculture and industry, while N209.122 billion (30 per cent) is allocated to infrastructure. Others are N22.872 billion (three per cent) for recreation and culture, N28.692billion (four per cent) for social protection, while general public service, executive organ will gulp N31.125 billion, etc.

    The key point to note is that the expenditure policy of the government is designed to achieve the strategic objectives of the Ogun State Economic Development Plan and Strategy 2021 – 2025, including fiscal sustainability, human development, food security, improved business environment, energy sufficiency, improving transport infrastructure, and promoting industrialization focusing on Small and Medium Scale Enterprises.

    Said Governor Abiodun: “The physical capital projects in the 2024 budget include; Light up Ogun Project to include procurement and installation of transformers state-wide whilst partnering with the private sector to experience uninterrupted power supply in 24 months; hosting of the 2024 Ogun National Sports Festival; construction, rehabilitation, and maintenance of roads across the state including major ones such as Lagos–Ota-Abeokuta Expressway; Ofada-Owode Road, Lagos Garage – Ikangba – Ilese Road, Ota-Lafenwa-Itele-Ayobo Road; Ita Oshin – Ibara Orile – Ijoga Orile – Ibooro – Imasayi Road OPIC Estate Internal Roads, Agbara, 250km State-wide construction in all three (3) senatorial districts road infrastructure to support the 2024 Ogun National Sports Festival.”

     In 2024, the government is focusing on the construction of infrastructure at the various economic development clusters, while extending the Lagos Blue Line Metro Rail Project into Agbara and ensuring the well extension of the Lagos Red Line Metro Rail Project to Ijoko and Ifo/Kajola in line with the execution of the state’s multi-modal transport plan under the Lagos-Ogun Joint Development Commission initiative.

    Given the massive transformation ongoing in many parts of Ogun State, the key highlights and underpinnings of the Budget 2024 aimed at giving a fillip to Ogun’s emerging status as a giant construction site and Nigeria’s top investment destination have not come as a surprise to the populace. In the last four and a half years, the state has witnessed infrastructure revolution: connecting parts of the state to the capital, the neighbouring states and the outside world through rail, road network and air has been a top priority of the Abiodun administration. For one thing, the Agro-cargo International Airport, a specialized facility designed to ease the movement of agricultural produce and create new jobs, generate revenue, and improve food security, is already proving to be a game-changer in reversing the damning statistics by the Nigerian Export Promotion Council (NEPC), namely that Nigeria’s agriculture industry suffers an estimated N3.5 trillion in post-harvest losses every year. Where agri-preneurs can quickly and easily transport fresh produce to local/ international markets faster, increased profitability is guaranteed. The airport is expected to create over 25,000 direct and indirect jobs across the agriculture, transportation, logistics, hospitality, tourism and other sectors.

    Beyond facilitating the movement of agricultural produce, the airport strategically located the along Iperu-Ilishan road in Ikenne Local Government Area of the state and designed to handle imports, exports and passenger traffic will reduce post-harvest losses, facilitate inter-regional and international connectivity for agro produce, increase Ogun State’s forex earnings, and attract massive investments to the state. In just a matter of weeks, commercial activities will start at the airport city. Speaking on the airport, Abiodun said: “With the longest runway, the biggest apron and control tower, the cargo airport is destined to be the best in the country. We have been approached by cargo companies that now want to relocate to Nigeria, simply because they have seen the size of our apron at the airport, which is 84,000 square metres. It is four or five times larger than the largest cargo airport in Nigeria. 

    “These cargo-based companies have now decided that once the airport is ready, they will be flying their cargoes that are destined for Nigeria to that airport, and from our airport, they will now be trans-shipping the cargoes to the other parts of Nigeria and even West Africa. And when you look at all those that would be involved in these cargo operations in the distribution and in running of our airport from the agro-producing zone and to the Aerotropolis, you can just imagine the economic impacts and the number of jobs that will be created. The impact will resonate in the entire economy, not just this country but the entire Africa.”

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    The fact is generally uncontested that Ogun is now an investors’ destination: the recent global meeting in Cairo, Egypt, showed that most of the investors that showed interest in Nigeria are actually looking at Ogun State. The way Ogun State is positioned as an investment destination given its proximity to Lagos has also earned it a lot of respect and interest from business experts who are coming to Nigeria to invest. With the kind of budgetary provision for infrastructure, education, agricultural revolution, among others, it is clear that the Abiodun administration has brought a lot of transformation to Ogun State.

    Only last week, Governor Dapo Abiodun, during a breakfast meeting with Chief Executive Officers of the organised private sector (OPS) OPS in Abeokuta, gave indication of plans to construct the Olokola Deep Seaport located in Ogun Waterside Local Government Area of the state with a view to providing another opportunity for companies in the state to easily convey their goods and equipment, taking advantage of the almost completed Gateway Agro-Cargo International Airport, and the planned dry port to be located at Kajola, an outskirt of the state capital.

    It cannot but be cheering news that Ogun under Abiodun will join league of oil-producing states soon. In preparation for this new status, the administration has already established the Ministry of Mineral Resources saddled with the responsibility of overseeing the general administration and operation of the natural resources that abound in the state, and the Ministry of Energy to take advantage of the constitutional amendment that allows sub-national governments to participate in the energy sector. But there’s more: the administration will construct over 2,000 housing units in Warewa, Sagamu, Iperu, Ibara, Ayetoro Road, OGTV Village, Ijebu-Ode, etc, and ensure water reticulation projects to connect more households to potable water supply, having completed the Urban Water Supply Project. And that is the point: budgeting for total transformation.

    •Akinmade is Special Adviser on Media and Strategy to the Governor of Ogun State.

  • Effective judiciary crucial to democracy

    Effective judiciary crucial to democracy

    The opening of a new Legal Year is an important solemn occasion in our legal system and a crucial annual landmark in our judicial calendar, for your Lordships as guardians of the law and justice, along with legal practitioners being Ministers in the Temple of Justice, as well as the users of the court system (litigants) to re-assess and renew our commitment to the independence of the judiciary, to address the challenges militating the smooth administration of justice and rededicate ourselves to enforcement of the rule of law in our dear Nation.

    I wish to observe that in the invitation letter (for this occasion) served on me, my Lord, the President of the Court of Appeal made a declaration congratulating me on my appointment as Attorney-General of the Federation and Minister of Justice. My Lord then made a consequential order as follows: “I am hopeful that as the Chief Legal Officer of the Federation, you will pay special attention to the needs of the Judiciary.” I want to respectfully assure my Lords, as I stand before your Lordships and speaking from this podium, that we will not test this ruling further on appeal, rather we will ensure appropriate compliance. We thank my Lords for the well-considered ruling.

    My Lords, learned colleagues, and distinguished guests, I assumed the Office of the Attorney-General of the Federation and Minister of Justice fully aware of the huge expectations, enormous challenges and responsibility therein. As a member of the Executive arm of government, it is my call of duty to formulate and promote policies of the current administration and to ensure that the legal or justice sector receives the necessary attention, priority and respect. This duty places me both at the frontline and confluence of where the law meets policy, while inherent conflicts may be unavoidable, they will be subjected to possible resolutions. I respectfully count on your Lordships and learned colleagues to be my conscience and compass in office through positive criticisms and contributions as we unfold and implement President Bola Ahmed Tinubu’s Renewed Hope Agenda in the justice sector.

     Permit me to also congratulate my Lord the President of the Court of Appeal and the new nine Justices of the Court of Appeal who were recently sworn-in by His Lordship, the Hon. Chief Justice of Nigeria. I wish your Lordships the wisdom, courage and legal will to positively impact our appellate court system in Nigeria. It is my firm position that for the sake of unhindered administration of justice, vacancies at any level of our judiciary should not be allowed to linger for too long because of the negative impact such vacancies occasion on pending cases, on the health of our Justices/Judges and other collateral damages associated therewith.

    The instant appointments into the Court of Appeal must have occasioned vacancies at various High Courts while the expected appointments into the Supreme Court may also occasion further depletion of the Court of Appeal bench. There is therefore the need for a fast-track process to fill these consequential vacancies with competent and efficient judges and lawyers. While I sympathize with your Lordships over the avalanche of motions and appeals you have to contend with daily, and the attendant stress therefrom, it is also pertinent that this Honourable Court take definite steps to improve on existing measures to decongest the court’s docket.

    The Court of Appeal and its Justices have been, permit me to say, trending lately in both the conventional and social media. The proceedings and verdicts of your Lordships on the presidential election attracted considerable attention, particularly the hard work and industry required to prepare, write and deliver judgments, which also brought to light the detailed and painstaking attributes of the Nigerian Justices and Judges. It is beyond debate that an effective Judiciary must remain independent and impartial. This remains an essential component of the rule of law and democratic governance as well as a key driver of economic growth.

    I must remark that it is the abiding duty of both the litigants and legal practitioners to insulate the judiciary from improper or extraneous pressure, undue media vilification and partisan criticisms. The right to freedom of expression comes with its limitations, it is not an avenue to engage in extreme and outlandish criticisms, inclusive of direct or veiled threats of violence, capable of exerting improper pressure on the judges in the discharge of their judicial duties.

    Read Also: Pressures on judiciary continue relentlessly

    Although political and other high-profile cases come with their own huge expectations and tensions, it is however abhorrent for any legal practitioner or judicial officer to be threatened, harassed or worse still, attacked simply for doing their job. While such shameful conducts are unacceptable, I enjo  in legal practitioners, political gladiators and their supporters to exercise restraint and demonstrate respect for the judiciary. We must have faith in our trial and appellate processes, defend and not ridicule them in our overall common interest.

    I share the mantra which states that a judiciary can only be as good as the judges that man its courts. Therefore, in order to improve the welfare and independence of our judiciary, it has become pertinent for us to make targeted investments in the judiciary in terms of timely recruitment of competent hands, structured and deliberate capacity building, upgrade of court facilities, introduction of technology, innovations and effective regulations in the trial and management of cases. Also, there is need for improved credibility and certainty in the judicial process through adherence to established precedents and avoidance of conflicting decisions, compliance with ethics/code of conduct for judicial officers to sustain integrity and public confidence. The concerns of other categories of judicial workers (JUSUN) should also be holistically addressed such that they would have no course to shut down our courts ever again. Where the foregoing and other challenges are frontally addressed, then we would have placed the Nigerian judiciary on an irreversible path of greatness expected of a modern judiciary. I must mention again that the revival, restoration of economic prosperity and our ability as a nation to attract foreign direct and indirect investment, is tied both directly and indirectly to the ability of our courts to deliver justice fairly, quickly and impartially, in a manner that makes justice to be undoubtedly and manifestly be seen to be done. Achieving this will require the cooperation of all stakeholders in the Justice Sector and significant investment in the technological, capital and knowledge infrastructure of entire justice system.

    Flowing from the above, is the issue of improvement in the remuneration and welfare of our judicial officers, as well as full implementation of financial autonomy for State Judiciaries. This issue has for long lingered and has within the last few weeks began to trend in the media and among stakeholder. Indeed it is time for definite action to be taken. The administration of President Bola Ahmed Tinubu is deeply concerned about the foregoing fundamental issues, and I must assure that we will focus and accord them priority attention. Consequently, the current administration will review the mechanisms already put in place and rejig the entire process to attain full implementation of the constitutional provisions for financial autonomy and viable increment in the salaries, allowances and pensions obtainable in the judiciary.

    • Fagbemi is Attorney-General of the Federation and Minister of Justice
  • Climate change: A pandemic in disguise

    Climate change: A pandemic in disguise

    • By: Olaogun Michael Sunkanmi

    A midst unprecedented global challenges ranging from economic hardship to military takeover in some parts of Africa to the Russian-Ukraine and Israel–Gaza wars, conversation continues on the “war” of nature against man—climate change. This is a result of the intended and unintended actions of man against the environment. Climate change has not only posed threats to the human and animal environment; it is also a major contributor to food insecurity and inter-community and violent conflicts globally, more specifically in the Sahel region, leading to human and animal displacements caused by sea level rise, degradation, drought, erosion, flooding, and desertification.

    The National Climate Change Policy (2021-2030) asserts that “climate change is a complex environmental problem because of its long-term uncertain timeframe, scales of occurrence, differential impacts and vulnerabilities, as well as equity and justice within the global power asymmetries.” 

    No doubt, climate change issues continue to take centre stage due to the threats that the change in the climate poses to global economic and environmental narratives. The rapid changes in climate have been modelled at multiple levels, including impacts on one of the most fundamental human rights: food. The Food and Agricultural Organisation of the United Nations explains that “food security exists when all people, at all times, have physical and economic access to sufficient, safe, and nutritious food that meets their dietary needs and food preferences for an active and healthy life.” And sadly, this narrative is not so in Nigeria and, by extension, the Sahel region because of the contentious issues between farmers and herders caused by drought and the insecurity that has kept farmers away from their farmlands, thereby leading to poverty. 

    In 2021, the Climate Change Act, 2021, was enacted by the 9th National Assembly, followed by an assent by former President, Muhammadu Buhari. The policy has been identified as one of the most significant means to address the effects of climate change in Nigeria. Similarly, there is the National Climate Change Policy (2021–2030) and several other related policies to address climate and environmental threats. However, there is no doubt that the implementation of the Act and other policies has not been well considered and planned by the key stakeholders within the government for the common good of Nigerians. The Act can be said to be the right method if properly implemented in mitigating some of the existing realities before us.

    Despite the heavy funding that goes to states from the Ecological Fund by the federal government, it appears that little or no effort is being made by the subnational government in addressing flood issues, which is one of the major impacts of climate change. According to a Punch report, “36 states of the federation shared N300bn allocation from the Ecology Fund from 2017 to 2022”. The Ecological Fund is an intervention fund by the federal government to address the multifarious ecological challenges in various communities across the country. The perceived misappropriation of the Ecological Fund by subnational governments, especially state governments, is a hint to how issues of climate change are significantly addressed at the state level. This is not without exception to states that have taken ecological challenges seriously.  

    In Nigeria, the lack of political willpower is a major challenge to the implementation of government policies. This is followed by poor awareness among the citizens who are directly affected by socio-economic challenges. Similarly, funding is critical to the implementation of government policies; however, poor funding often characterises the activities of the government. Where little funding may be made available, the perceived corrupt practices in government institutions have, in no small measure, inhibited the smooth and proper implementation of policies and projects on climate change issues without exception.

    Read Also: Fulfill $100b pledge on climate change, Tinubu to tell U.S., EU

    The near-dead state of local government administration is a major contributor to the avoidable impact of climate change, especially at the grass-roots level. The elementary role of the local government as the closest governance structure to the people has been “taken away” due to poor funding and political subjugation by the state governors.

    At the 2023 United Nations General Assembly, President Bola Tinubu posited that “climate change severely impacts Nigeria and Africa. Northern Nigeria is hounded by desert encroachment on once arable land. Our south is pounded by the rising tide of coastal flooding and erosion. In the middle, the rainy season brings floods that kill and displace multitudes.”  Speaking from the African lens, he opined that “African nations will fight climate change but must do so on our own terms. To achieve the needed popular consensus, this campaign must accord with overall economic efforts.”

    Similarly, in the address at the 2023 Cabinet Retreat for Ministers, Presidential Aides, Permanent Secretaries and top government functionaries on November 1, the president also maintained that “we have challenges in the Sahel, we have challenges of climate change, south and north of Nigeria is battered, with ocean surge, we have desert encroachment in the north, but we are still blessed with arable lands. We can do it; we can build our country.”

    Also, at the presentation of the 2024 Annual budget at the National Assembly, President Tinubu stressed that “as we approach the COP28 climate summit, a pivotal moment for global climate action, I have directed relevant government agencies to diligently work towards securing substantial funding commitments that will bolster Nigeria’s energy transition. It is imperative that we seize this opportunity to attract international partnerships and investments that align with our national goals…”

    The re-echoed position of the president on climate change may be said to be a clear indication of his interest and readiness in addressing the challenges of climate change and perhaps setting a tune for the African continent. However, one cannot help but worry about what may become of his intention due to the “institutional deficiencies” of the Ministries, Departments, and Agencies (MDAs), whose principal responsibilities are to combat environmental challenges. Irrespective of this, it is the responsibility of the president to drive and demand accountability.

    In addressing the challenges of climate change in Nigeria and Africa by extension, there is a need for strategic support of stakeholders at the national level on the speedy domestication and implementation of the Climate Change Act 2021, which will, in no small measure, aid collaboration and advocacy towards the effective implementation of the Act, especially at the subnational level. 

    Similarly, there is a need for a framework for mainstreaming climate change action, carbon budgeting, and the operationalization of the National Council on Climate Change. There is also a need to create an improved knowledge base and awareness level regarding climate change mitigation and adaptation. The existing knowledge gap with respect to climate change is an area that essentially needs to be tackled before the Climate Change Act (2021) can live up to its mandate. And in the long run, it will help to promote and demand accountability and transparency.

    Knowledge, either derived from formal or informal systems, drives actions. To this end, it is vital for citizens to be made aware of the adverse impacts of climate change, more from a personal impact viewpoint. This would help in developing actionable plans for its mitigation.

    It is important to state that the Climate Change Act cannot operate in a vacuum. Hence, there is a need for concerted efforts by government Ministries, Departments and Agencies (MDA), the private sector, and CSOs towards its achievement. Additionally, there is a need for a wider reach; the Act also called for the incorporation of climate change discourse in the school curriculum from the basic level up until the tertiary level of education. 

    The Civil Society Organisations (CSOs), media, and other pressure groups should ensure adequate checks on the commitment of governments to ensure their mandates are carried out. There is a need for indigenous research and local technological strategies to address issues of climate change based on community peculiarities. Private sector actors and Small and Medium Enterprises (SMEs) can play a great role in combating climate change. As such, there is a need for a coordinated approach to engaging them, seeing as they are one of the major contributors to carbon emissions.

    • Sunkanmi, a policy analyst and development practitioner wrote from Abuja.
  • Bridging funding gaps in micro, small, and large businesses

    Bridging funding gaps in micro, small, and large businesses

    • By Timi Olubiyi

    In Africa, apart from the known business challenges such as the decrepit infrastructure, inconsistent government policies, double taxation, increasing inflation, regulation irregularities and the COVID-19 pandemic consequences in recent times, overwhelmingly, lack of capital or funding issues contribute majorly to business failures. According to findings of several surveys, one of the top challenges faced by entrepreneurs and businesses in Africa today is access to funding. Without doubt, funding is the bloodline of any form of business, therefore, whether it is a start-up, nano, micro, small or medium-sized business, or an established large firm, knowing how to raise capital can often make the difference between business success and failure. In fact, funding is important at all business stages and cash which is most time referred to as “capital” in business terms majorly dictates the pace of performance in any business.

    Invariably, without funding or capital, it will be extremely difficult to get any enterprise off the ground. However, the structure that exists in the business significantly affects the access to the choice of fund options. Recall, every business has a different structure and needs; it is, therefore, imperative to state that no financial solution is one size fits all, fund options usually require different rules and steps. Consequently, businesses will be required to carefully plan, research, learn, and understand the necessary funding option in order to come up with the right decision.

    So, the big question for businesses is what are the ways to adequately raise capital for seamless operations?

    Capital comes into any business particularly in two ways: as equity or as debt. However, donations, grants, incentives, interventions, or subsidies can also be employed in certain aspects of a business to encourage activities in particular industries or sectors by government. Just like other forms of capital raising options, these grants and subsidies can be initiated for either short-term or long-term purposes. That said, equity capital involves exchanging a portion of the ownership of the business for financial investment in the business, most times it involves selling shares of the company in exchange for funding. The ownership stake resulting from this equity investment allows the investor to share in the company’s profits. Equity capital is usually a cheap form of funding and is an important source of capital on a long-term basis. However, sometimes it involves going public, getting listed on an exchange, and also giving up partial or major control of the business.

    On the other hand, debt capital is when a business borrows fund from individuals or institutions and agrees to pay them back later. Debt capital simply means loans and borrowings. The main consideration in debt capital is the ability of the business to generate sufficient returns to service the debt (interest and capital repayment). A typical mode of raising debt capital is through the bank loans. Banking institutions provide loans to individuals or businesses who approach them with a solid business plan, and good business structure with capacity for repayment. Bond is equally a debt instrument, and a way of raising debt capital as well. It belongs to debt capital categorization because the authorized issuer (business) owes the bondholder debt and it depends on the terms of the bond issuance. The most significant difference between equity and debt is that, unlike debt, equity capital does not require an amortization schedule for repayment. More so, equity capital involves the investor taking an ownership position in the business.

     The easiest and starting point for small businesses from context observation is usually with self-funding and personal investment, where entrepreneurs leverage their financial resources to support business operations. Self-funding can extend to family, associates and friends for capital, otherwise referred to as bootstrapping. Both self-funding and bootstrapping lets business managers, operators, and entrepreneurs leverage their financial resources to support the business operations. Further to this is angel investment, where investors who are generally wealthy individuals or retired business executives invest directly in a business or startups owned by others. These angel investors are often leaders in their field who not only contribute their experience and network of contacts but also their technical and/or management knowledge. Most times this form of capital raising is in exchange for equity ownership in the business and an active management role.

    Read Also: National Market Council to boost SMEs, businesses coming

     Also, trade credit is another significant form of capital raising option where business suppliers are willing to transact or sell on credit. Such credit may range anywhere from one month to three months or as agreed. This is a very good method for businesses to fulfil short-term funding needs. It is an inexpensive method of funding for any business, I must say. Further to this is private equity investment, where private equity firms raise equity capital that is not listed on any Stock Exchange for investment purposes. Invariably, these firms raise funds from investors and then invest these funds in promising start-ups and businesses that require capital. The drawback of this funding option is that a controlling position or substantial minority position in the business is usually acquired and then look to maximize the value of their investment. Thus, the entrepreneur might not have sole control over the business decisions, which may lead to conflict. Looking at another capital raising option is retained earnings as a way of raising finance; it simply means businesses can reinvest any set-aside profits for business operations for expansion, equipment purchase, and development purposes.

      Business owners, managers and entrepreneurs do not have to get discouraged if one does not work out; other options can easily be explored. To find the right fit, in-depth research and adequate due diligence are imperative, having in mind these following questions- how much is really required for the business? When is it required? How long will it take to raise the funds? What are the specific requirements to access the fund? What will the fund be used for? What are the associated risk with the fund type? From whom is best to raise the fund? How expensive is the fund? How and when is repayment? Is the business actually fundable or bankable? Because some fund options may be a perfect fit for a business situation, while others may be completely impractical, therefore due diligence is absolutely required.

     Aside from every business having unique funding needs, each funding option also differ in availability, terms, funding amount option, and eligibility criteria. Therefore, each fund option needs detailed attention ahead of time. Whether a business opts for a bank loan, an angel investment, or a government grant, note that each of these sources of financing has specific advantages and disadvantages.

    •  Dr Olubiyi is an Entrepreneurship & Business Management expert.
  • Will Budget 2024 renew the hope of Nigerians?

    Will Budget 2024 renew the hope of Nigerians?

    • By Stanley O. Nwosu

    President Bola Ahmed Tinubu on Wednesday November 29 presented Nigeria’s biggest budget size in Naira terms (N27.5 trillion) tagged the Budget of Renewed Hope to the joint session of the National Assembly. A critical look at the budget document showed that it is an ambitious budget which if well-funded and implemented would create a positive impact in enhancing national security, fostering economic prosperity and job creation in the country. The major challenge usually with the national budget is full implementation, which if not corrected this time may hamper the success of achieving the desired result of renewing the hope of Nigerians through the budget.

    Over the years, past presidents have coined beautiful developmental names for the yearly budget which always ended up not living up to those names and expectations. Year after year, we have seen promising budget titles such as the 2023 Budget of Fiscal Sustainability and Transition; 2022 Budget of Economic Growth and Sustainability; 2021 Budget of Recovery and Resilience; 2020 Budget of Sustaining Growth and Job Creation; 2017 Budget of Recovery and Growth; 2016 Budget of Change; 2015 Budget of Transition; 2014 Budget for Job Creation and Inclusive Growth; 2012 Fiscal Consolidation, Inclusive growth and Job creation etc. Experience has shown that the success of a national budget is not in its title but in its implementation.

    The federal government’s budget has been on the increase over the last 23 years. The exceptions are 2002, 2012, 2014, 2015 and 2019. For example, in 2002, it reduced by 35% to N578 billion from N894 billion in 2001. It declined from N4.9 trillion in 2011 to N4.8 trillion in 2012. The budget also declined by 7% in 2014 to N4.64 trillion from N4.99 trillion in 2013. The budget equally declined by 3.2% to N4.49 trillion the following year, 2015. In 2019, it reduced to N8.83 trillion from N9.12 trillion in 2018.

    From a budget size of N677 billion in 2000, the budget jumped to N3.93 trillion in 2010 which is an increase of about 399% in 10 years. The budget crossed the trillion Naira mark for the first time in 2005 with a sum of N1.35 trillion. It increased to N4.99 trillion in 2013 and N21.83 trillion in 2023 which was later increased to N24.82 trillion under President Tinubu through a supplementary budget.

    Former President Olusegun Obasanjo’s administration left the national budget at N2.3 trillion in 2007, late Umaru Musa Yar’Adua took it up and left it at N3.1 trillion, former President Goodluck Jonathan increased it to N4.5 trillion in 2015 and Muhammadu Buhari at N21.83 trillion in 2023.  As the budget size increases in naira terms over these years, the dollar value of the budget has fluctuated due to the continued depreciation of naira.

    The worrisome fact with the increase in the national budget size is that with each increment, the budget deficit widens. This leads to an increase in borrowing which has skyrocketed our national debt to an all-time high of N87.38 trillion without corresponding economic growth and development. Presently our national debt in relation to GDP is at an alarming 38.79%.

    Read Also: Senate, House ‘ready to pass Budget 2024 before Dec 31’

    The question is why increasing the budget size that our expected revenue cannot fund. It’s better to plan a budget based on realistic expected revenue than to rely funding of the budget mostly on borrowings. The height of the budget deficit in Nigeria was witnessed in the 2023 national budget where the budget deficit was N13.78 trillion out of the total budget expenditure of N24.82 trillion, more than the aggregate expected revenue of N11.45 trillion. No wonder the administration of former President Buhari plunged Nigeria into all-time debt due to an astronomical increment in our budget size.

    Despite the large budget size under the Buhari regime, Nigeria failed to achieve the high economic growth rate recorded under former presidents Jonathan, Yar’Adua and Obasanjo. Buhari’s best annual GDP growth rate was 3.4% in 2021 which fell short of Obasanjo’s best annual GDP growth rate of 15.3% in 2002, Yar’Adua’s best of 8.04% in 2009 and Jonathan’s best of 9.3% recorded in 2010. These high economic growth rates were achieved under the Obasanjo, Yar’Adua and Jonathan administrations despite having a smaller budget size. It goes to show that the size of the budget does not matter much as far as the items budgeted were judiciously implemented. This is not an exoneration of Obasanjo, Yar’Adua and Jonathan regimes from budget padding and complying 100% in budget performance.

    In dollar terms, Nigeria’s national budget size when compared with other developing African countries budget sizes is far below. Also, given our huge population, it is expected that our budget size should be big enough to create the desired impact and achieve the desired results in our economy. The dollar value of the 2024 budget proposal of N27.5 trillion for over 220 million Nigerians is about $33 billion. The budget size of South Africa with a population of 60 million is $132 billion, Algeria with a population of 45 million has a national budget of $98 billion, Egypt with a population of 112 million has a national budget of $97 billion, Kenya with a population of 55 million has $25.78 billion budget and Tanzania with a population of 67 million has a national budget of $19.23 billion.

    From the above comparison, it showed that Nigeria is still lagging in terms of budget size. Our national budget ratio to GDP is a mere 12%. The question is, is Nigeria truly rich as being projected? Or that corruption has eaten so deep into the fabric of our economy that we cannot generate adequate revenue from our rich resources to fund our budgets.

    I still can’t understand why Nigeria cannot fund our budget which is relatively low in dollar terms when compared with other developing African countries without the negative consequence of wide budget deficits which gaps can only be closed through borrowing. I wonder what will happen if we dare to increase our budget to the size of maybe South Africa. What are these African countries with big budget sizes higher than Nigeria’s budget doing differently that Nigeria cannot do better? 

    We can’t keep borrowing to fund budgets because we are not seeing the positive results rather, we should fashion out ways to increase our revenues. It is obvious that we cannot achieve the desired economic growth with our current rate of excessive borrowing without corresponding results. Debt service seriously is weighing the country down.

    We need to work on increasing our revenues. Our current revenue to GDP is 10% which is too low. Nevertheless, it is a welcome development that the total expected revenue has been increased to N18.32 trillion in the 2024 budget proposal from an aggregrate revenue of 11.45 trillion in 2023. However, with Nigeria’s potential, we should be doing more than that figure if we can curb corruption and plug leakages through the effective implementation of key public financial management reforms.

    Now to the 2024 budget proposal details, it is good that the budget deficit has been reduced to N9.18 trillion representing 3.8% of the GDP from N13.78 trillion in the 2023 budget which represents 6.11% of GDP, although the deficit gap is still very wide. Another commendable area in the budget proposal to note is the increment of the capital expenditure to N8.73 trillion representing approximately 32% of the total budget expenditure. The projected debt service of N8.25 trillion representing 45% of the expected total revenue is an improvement from the current year’s budget.

    Other 2024 budget indices and projections such as an exchange rate of N750/$1, a benchmark oil price of $77.96, oil production of 1.78 million barrels per day, a growth rate of 3.76% and an inflation rate of 21.4% are seemingly realistic figures.

    Based on sectoral allocations, Defence and Security got the highest allocation of N3.25 trillion representing 12% of the proposed 2024 budget followed by the education sector which got N2.18 trillion or 7.9% of the budget, health sector got N1.33 trillion or 5% of the budget, infrastructure got N1.32 trillion or 5% of the budget and social development got N534 billion or 2% of the budget as well as other sectors.

    Despite the noticeable improvement in the 2024 budget proposal, there is a serious need to improve the budget in many areas such as further significant reduction in recurrent expenditure, budget deficit, debt service and others.

    For this budget to achieve its aim of enhancing national security, providing infrastructure, creating jobs and fostering economic growth, there should be a thorough review of the budget to strike out irrelevant items and padding and ensure full implementation of the budget.

    • Nwosu, a public affairs analyst, political economist and development expert writes from Abuja.
  • Crowdfunding and the real estate industry

    Crowdfunding and the real estate industry

    Sir: In recent years, crowdfunding has emerged as a disruptive force in various industries, offering innovative solutions to age-old problems. One sector that has seen a significant transformation, thanks to crowdfunding, is Nigeria’s real estate industry.

    Traditionally, real estate investments in Nigeria were often reserved for high-net-worth individuals or institutional investors. However, crowdfunding has democratized real estate investment, making it accessible to a broader range of people and providing opportunities for both developers and investors.

    Real estate crowdfunding, also known as property crowdfunding, involves pooling small amounts of money from many investors to finance real estate projects. This model breaks down the traditional barriers to entry, allowing anyone with internet access to invest in real estate.

    Like many others globally, Nigeria’s real estate market was characterized by high capital requirements and limited access for individual investors. Crowdfunding platforms changed the game by offering alternative investment options.

    The key benefits are accessibility, diversification, lower entry barriers, transparency and support for developers.

    Accessibility: Crowdfunding platforms have opened doors for retail investors to participate in real estate projects that were once out of their reach. This inclusivity fosters a more equitable investment landscape.

    Diversification: Investors can diversify their portfolios by investing in various real estate projects, spreading risk and potentially increasing returns.

    Lower entry barriers: Traditional real estate investments often require substantial capital. Crowdfunding allows individuals to invest in much smaller amounts, reducing the financial barrier to entry.

    Transparency: Crowdfunding platforms provide investors with transparent information about projects, developers, and expected returns, allowing for informed investment decisions.

    Support for developers: Real estate developers in Nigeria have benefited from crowdfunding platforms as they gain access to a wider pool of potential investors, reducing their reliance on traditional financing methods.

    While real estate crowdfunding in the country has great potential, there are some challenges and risks to consider. Crowdfunding is still evolving in this part of the world. As a result, the regulatory framework for it is still evolving. This can lead to uncertainties for investors and platforms.

    There is also the risk of project failure. As with any investment, there is a risk of project failure or delays, which could result in financial losses.

    Read Also: ‘Tinubu’s reforms ‘ll resuscitate real estate’

    New entrants into the business are usually bogged down by a lack of liquidity. Real estate investments are typically illiquid, meaning investors may not easily convert their investments into cash.

    There is a need for due diligence; investors must conduct thorough due diligence on both the crowdfunding platform and the real estate project to mitigate risks.

    Real estate crowdfunding in Nigeria is poised for further growth as the market matures and regulations become more robust. The democratization of real estate investment is likely to continue, offering investors a broader range of opportunities and developers an alternative source of financing. As more Nigerians gain access to these platforms and become more educated about real estate investment, the industry is expected to thrive.

    Real estate crowdfunding is transforming Nigeria’s real estate industry by making it more inclusive, accessible, and transparent. The benefits of this innovative investment model are evident, and while challenges exist, they are opportunities for growth and improvement. As the sector evolves and matures, it has the potential to play a significant role in shaping the future of real estate investment in Nigeria.

    • John Amabolou Elekun, Iju-Ajuwon, Lagos.