Category: Comments

  • Strategic option for development of South-south and Southeast

    Strategic option for development of South-south and Southeast

    • By Mark Osonwanne

    Our country Nigeria turned 63 years this year 2023. In the individual life, this is a significant benchmark for it signals the onset of midlife for some people. For most successful persons this age indicates the period when much of the earlier investments in hard work, creativity, enterprise development would have matured and fruits of success would have been seen. Thus the rest of life for many will be period of consolidation and much harvesting from earlier endeavours. It is a critical period in the life of an individual. 

     The Niger Delta Regions situated on the Gulf of Guinea which is now one of the world’s leading domains for deep water oil and gas exploration account for less than 10% of the land area of Nigeria. It is one of the large wetlands of the world whose diverse ecology provides a challenge to the concept of sustainable development given the relative fragility of the ecosystem and particularly the potential for loss of biodiversity. Since the area accounts for up to 95% of the oil production, approximately 2mbpd and proven oil reserves of Nigeria, approximately 25 billion barrels with a potential for up to 40 billion barrels; its development should constitute a national priority. It is Nigeria’s ark of development or circle of development if we include offshore. The development if properly executed has the potential to drive the economic development of the rest of the country. If this is to happen our approach to its development must be comprehensive and holistic. We must also take into account the damage that has already been done by over 63 years of exploitation of the oil and gas reserves in a period when the world was not as environmentally conscious as we are today.

    There is now discussion of renewable energy and action. The ecological damage already done through loss of swamps especially of its flora and fauna, increase in turbidity of surface water, as well as the long term effects of gas flaring and potential environmental damage due to oil spills must be taken into account. The erosion menace and havoc in many parts of Southeast and South-south can be traced as a consequence of environmental degradation of the regions. 

    Situating Niger Delta region’s discourse in global ethical context 

    How is it possible that regions as resource-rich as the South-south and Southeast, with oil and gas streams that account for nearly 90% of Nigeria’s foreign exchange earnings, be ranked with the poorest in the world? What kind of distributive justice places emphasis only on the distribution of benefits without a commensurate attention to the distribution of burdens?

    Put in another way, what world order purports and supports a global citizenship are enjoyed by only a few at the expense of the rest? The South-south and Southeast belong to, and is inalienable from, the world community under the United Nations Charter. The principle still holds that all nations within this community are by nature equal, irrespective of the levels of their political, socio-economic and economic development. This being the case, the fundamental values, outlined in the Millennium Declaration in September 2000, namely, freedom, equality, solidarity, tolerance, respect for nature and shared responsibility should apply in these regions as elsewhere in the world.

    The international system that was founded on ‘cooperation’ rather than on ‘competition’ among and between states should actively pursue the path of collaboration among equal and reciprocally responsible partners on all issues, especially ones that lie at the very basis of the survival of mankind, not just nationally or regionally, but internationally. The absence of such international interest, cooperation and action on all issues, especially ones that concern indigenous communities who lack the political wherewithal, social connexion and fiscal means to resolve issues that adversely affect them, is a disturbing trend.

     The environmentally destructive engagement of multinational oil corporations in the South-south and Southeast qualifies, to be evaluated internationally on account of its global consequences, present and yet to come. This is why the issue of responsible and accountable use of the resources of the earth as a ‘public good’ demands central importance in international discourse.

    In the case of Nigeria, there appears to be a nexus between the collapse of public probity and the demise of environmental accountability, a potent mix at best. Operating on a faulty economic paradigm, successive policy regimes were primed into the blind quest for economic growth, with the hope that this would solve all the problems that development posed in the post-independence period and beyond. This has however not yet materialised, more than six decades later.

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     Instead Nigerians have witnessed the jettisoning of their African ethics of mutuality, where every individual was a sacred person-in-community, the string protecting the weak and the rich in the context of the community; where the ‘one’ was an unalienable part of the ‘whole’ that accorded her/him the full dignity of personhood irrespective of his/her particular limitations; where the ‘one’ lived, scarified and died for this ‘whole’ in return for the assurance of security and fullness of life that this ‘whole’ represented; where progeny was desired, planned for and celebrated as the epitome of intergenerational longevity.

    In place of this ethic, Nigerians have submitted, albeit grudgingly, to the official adoption of a survival-of-the-fittest mentality that subjects everything and everybody to assuaging the greed and ambitions of the powerful. 

    The massive resources needed for the development of the regions must involve the international community. However, the days of aid and charity are gone. Thus the resources that need to be mobilised must come as foreign and local investments. What programmes and incentives do we need to put in place to attract the massive foreign investments needed? Given the strategic location of Nigeria on the Gulf of Guinea and this at the hub of sea lanes of the South Atlantic and given the dominant position of Nigeria now and in the future in the international oil and gas industry, it must be our vision to build up the South-south and Southeast regions as the international hub for oil and gas industry in Africa and South Atlantic, much as Singapore has done for trade in the Asian region. 

    •Osonwanne, retired Oil and Gas professional, sent this piece from Saint Johns, Newfoundland, Canada

  • The miracle we need

    The miracle we need

    A friend and I exchanged transcontinental messages last week and the conclusion of the message is that our nation is in a mess. 

    Things are hard. Really hard. The best of times have to replace what we have at the moment. How we get here is immaterial. What is important is how do we get out and get out truly happy. 

    The signs are glaring that our economy is on life support. And it looks like there is no quick fix, yet a quick fix seems to be what we need so as to stop our people from finally slipping into hell. At the moment, many families are just one step away from hell. Many will even tell you they are in hell already. You can’t blame them. They struggle to feed. No thanks to the skyrocketing prices of bread, rice, beans, yam and other food stuff. They battle daily to commute to their places of work. No thanks to the all-time high price of petrol. 

    Read Also: Wike approves funds to maintain Abuja Nat’l Mosque, Christian Centre

    Businesses, especially those with foreign inputs, are in trouble because our currency has become chameleon. It changes colours, sorry values, every other day. The few times it has gone down, it jumps higher subsequently. 

    Those seeking foreign education now have to pay through their noses. Those used to travelling frequently abroad now have to evaluate the importance of such trips like they never did in time past. 

    At this moment when President Bola Tinubu no longer faces judicial distractions, he and his economic team have to work out something, and real fast too. Our nation must thrive. Our people must survive. Our people must feed well. Our people must commute to work and elsewhere without financial hassles. Our people must earn truly living wages. It has to be well with our people. 

    We have bled enough. The gashes on our people need to start healing. It is time we all breathed without life support machines. 

    May we see the miracle our nation needs.

  • Artificial Intelligence and real estate sector

    Artificial Intelligence and real estate sector

    • By Lanre Adeyinka Taiwo

    The reality we all have to accept is that we are living today in times of great changes. The old order is fast crumbling, that is if it has not crumbled, while new activities appear by the day. It is so rapid and sudden that the breakthrough or innovation we are celebrating today could be outpaced by a new one tomorrow. Technology has changed the world, technology continue to mould and remould the society; technology is improving our daily lives, improving the way we do business, and the way we practice professions. As humans evolve and our needs and wants change from time to time, advanced and modern technologies come to the rescue to fulfil these needs.

    Take for instance, Artificial Intelligence (AI), defined as the simulation or approximation of human intelligence in machines, the technology which includes computer-enhanced learning, reasoning and perception being used across different industries today. Artificial Intelligence (AI) is revolutionizing various sectors of the economy, and the real estate business is no exception. The integration of AI in real estate has fundamentally altered the way properties are bought, sold, managed, and valued. This transformation is driven by the remarkable potential of AI to enhance efficiency, accuracy, and customer experience.

    Ability of AI to provide predictive analytics and market insights is one of its most significant advantages in real estate practice. AI-powered algorithms assist real estate professionals to make informed decisions, such as pricing properties competitively, predicting market fluctuations, and identifying prime locations for investment by reason of its effectiveness in analysing vast amounts of data, including property prices, market trends, and historical sales data. AI-driven property search platforms have transformed the home-buying experience. The platforms utilize machine learning to understand user preferences and offer personalized property recommendations, using user’s search history and interactions, while suggesting homes that matches their specific criteria, thereby making the search process more efficient and user-friendly.

    Via AI technology, virtual property tours become realistic, making properties virtually accessible. The technology saves buyers and sellers time as parties could remotely explore and access properties, which also provide a good opportunity particularly for international buyers who can’t physically visit a property before purchasing. AI-driven inspection tools and drones are transforming the property inspection process. Equipped with cameras and AI algorithms, drones can with utmost precision, assess a property’s condition, help buyers and sellers identify potential issues with due diligence process which guarantees AI tools and platforms effectiveness in facilitating global real estate transactions, irrespective of geographical barriers. Thanks to AI-driven data and property insights, investors and buyers can explore opportunities beyond their local market with ease, thus expanding the reach of the real estate business.

    AI-driven chatbots are changing the way real estate agencies provide customer support. The virtual assistants can handle inquiries, schedule showings, and provide information on available properties at any point in time. This not only improves customer service, but also allows real estate professionals to focus on more complex tasks while ensuring potential clients receive prompt responses. To the extent that real estate transactions involve huge financial risk, AI can be effectively applied when it comes to credit scores analysis, borrower risk assessment, and potential red flags identification which results in more secure and reliable real estate deals. Investors and property appraisers can use these insights from AI algorithms to evaluate the potential value of a property based on various factors, such as location, property type, market trends, and historical data and make more accurate valuation and investment decisions.

    In addition, property management companies rely on AI for efficient property maintenance. AI-powered sensors and monitoring systems can detect maintenance issues early, thereby reducing the risk of costly repairs. Furthermore, smart home technologies, controlled by AI offer convenient and energy savings to residents.

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    Because real estate industry handles substantial amount of sensitive information and financial transactions, AI is reliable in enhancing data security and preventing fraudulent activities by detecting anomalies in transactions and safeguarding client data. Not only that, AI can contribute to sustainability in real estate by optimizing energy consumption and reducing environmental impact. Smart building systems can automatically adjust lighting, heating, and cooling, resulting in energy savings. AI can also help in designing eco-friendly buildings with reduced carbon footprints, aligning with the growing demand for environmentally conscious real estate.

    The real estate industry involves complex legal and regulatory aspects. AI-powered tools can assist real estate professionals in ensuring compliance with local and national laws; reduce the risk of legal issues and enhance overall transparency in transactions. AI streamlines document management; reduce the time and effort required for paperwork in real estate transactions. From contracts to financial documents, AI-driven software can organize, manage, and store documents securely and minimize the potential for errors. Real estate is a highly competitive field, and AI offers a competitive advantage. Companies and professionals that embrace AI solutions can provide more efficient and innovative services, and secure patronage of tech-savvy clients who value cutting-edge tools and processes.

    The real estate industry continually evolves, and AI is adaptable to changing situations, whether it is market shifts, new regulations, or emerging technologies. AI-powered businesses can navigate faster in an ever-changing landscape and position themselves for future growth.

    AI’s importance to the real estate industry cannot be overstated. As AI technologies continue to evolve, it is essential for real estate practitioners in particular to subject themselves to comprehensive understanding of the technology, including its potential pitfalls and better practices before full application and integration into businesses and practices. What is not in contention however, it that AI has come to stay and it will keep redefining real estate business.

    •Taiwo is a Lagos based Estate Surveyor & Valuer

  • Bridging Nigeria’s digital divide: The 3MTT program and BI integration for SME uplift

    Bridging Nigeria’s digital divide: The 3MTT program and BI integration for SME uplift

    In October 2023, Nigeria’s federal government launched the 3 Million Technical Talent (3MTT) Programme, a critical part of the Renewed Hope agenda and a bold initiative aimed at training three million Nigerians in digital skills such as data science, AI, cloud computing, and cybersecurity. For a nation eager to harness technology for economic growth, the program was a watershed moment. Its impact, however, will depend on how effectively these skills are applied to sectors where transformation is most urgent.

    Adetokunbo Kosile-Palmer, whose professional journey has bridged operational strategy and advanced data analytics, sees a unique opportunity for aligning the 3MTT initiative with the needs of Nigeria’s small and medium-sized enterprises (SMEs). At Schneider Electric, Kosile-Palmer designed data pipelines and dashboards that provided executives across multiple regions with real-time insights into sales, operations, and resource allocation. Her work demonstrated the transformative effect of equipping organizations with tools to make smarter, faster decisions.

    “The real value of 3MTT will be realized when its graduates apply their skills to Nigeria’s manufacturing and logistics SMEs,” Kosile-Palmer observes. “These are the businesses that struggle most with visibility and efficiency. Integrating BI tools into their operations could close Nigeria’s digital gap while boosting competitiveness.”

    By embedding 3MTT graduates into local firms, Nigeria could create a new wave of technically skilled professionals building BI dashboards that monitor production metrics, supplier reliability, and delivery schedules. This approach would not only help SMEs modernize but also generate tangible evidence of how government programs can catalyze industrial transformation.

    Kosile-Palmer’s advocacy aligns with broader national goals of inclusive growth and industrial modernization. Her expertise highlights the potential for data analytics to serve as the bridge between Nigeria’s ambitious digital training agenda and the practical challenges of its industrial base. As the nation pushes forward, voices like hers demonstrate how technology can be democratized to empower businesses and secure long-term resilience.

  • Lessons from the P&ID Case

    Lessons from the P&ID Case

    • By Jerry Amao

    On Monday, October 23, in a stunning victory for Nigeria, the High Court in London set aside the arbitration award obtained in January 2017 by P&ID, a British Virgin Islands registered company, against Nigeria. 

    The award was originally for about $6.6bn but had increased to about $11bn as of the date of the court judgment because of interest. P&ID had brought the claim against Nigeria before the arbitral tribunal, alleging that Nigeria breached a gas supply and purchase agreement (GSPA) to supply gas to a P&ID project that was to be located in Calabar, Cross River State.

    Nigeria successfully obtained leave of the High Court in London in September 2020 to appeal against the arbitral tribunal award. Hearing on the appeal took place for eight weeks between January and March this year. While Nigeria’s victory has brought enormous relief to the country, it is crucial to understand

    the basis for the judgment of the court and the lessons the country should learn from the case.

    Several allegations of corruption were at the centre of Nigeria’s challenge to the arbitration award.

    Nigeria alleged that P&ID paid bribes to several officials of the Nigerian government involved in the entry into the GSPA between Nigeria and P&ID between 2009 and 2010. Among the officials alleged to have been corrupted by P&ID were the former Minister of Petroleum Resources, Rilwanu Lukman (now late), a former NNPC official, the late Taofiq Tijani and a former Director of Legal Services, Grace Taiga.

    It was also alleged that P&ID paid bribes to the first lead external counsel for Nigeria during the arbitration proceedings, Supo Shasore, SAN and government lawyers that advised on the arbitration, including Kemi Adelore, then Director of Legal Services in the Ministry of Petroleum Resources, and Ikechukwu Oguine, then Coordinator, Legal Services of NNPC, and that these lawyers colluded with P&ID to ‘throw’ the case.

    Another key allegation made by Nigeria was that P&ID told lies to the arbitral tribunal to secure the award. These lies included claims that it had obtained the financing and completed the engineering for the Calabar project when in fact, it had not done either. These lies amounted to perjury and had deceived the tribunal into making the award in P&ID’s favour.

    P&ID denied all the allegations and asserted that Nigeria lost the arbitration proceedings because of incompetence on the part of its officials responsible.

    Allegations of corruption

    The court upheld the allegations made regarding late Mrs. Taiga and found that some payments she received from P&ID were indeed bribes. The payments continued until 2020 when the arbitration was in progress, and the court held that P&ID continued to make payments to Taiga to ensure she did not reveal the earlier payments made to her. Thus, the dealings between P&ID and Mrs Taiga related not just to the entry into the GSPA, but also tainted the arbitration proceedings. 

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    This was one of the main grounds on which the arbitration award was set aside.

    The court dismissed Nigeria’s allegations of corruption against the late Lukman for lack of evidence.

    Also, it dismissed the allegations against the lawyers who were involved on Nigeria’s behalf in the arbitration. The court instead found that the lawyers had represented Nigeria honestly and made concerted efforts to resolve the matter in Nigeria’s interest. Concerning Shasore, the court highlighted several steps he took to defend Nigeria. It noted that the people to blame for any failings in Nigeria’s defence were the senior officials of the Nigerian government who took no action on several recommendations made to them by Shasore on how best to defend the case at the arbitral tribunal.

    Perjury

    The court agreed with Nigeria that P&ID had lied to the arbitral tribunal about how much progress it had made in obtaining financing and in performing the engineering for the project. These lies, the court found, assisted P&ID in securing the award.

    A P&ID witness, the late Michael Quinn, had given a witness statement to the arbitral tribunal purporting to set out how the GSPA had been entered into. The statement did not mention the payments made by P&ID to the late Mrs Taiga. The court held that if the arbitral tribunal had been aware of the said payments, its decision would likely have been different. That concealment, in the court’s view, amounted also to perjury. These examples of perjury on P&ID’s part constituted the second major basis for the setting aside of the award.

    Lessons

    One of the major lessons from the case is that the nation must ensure that contracts entered into by government are prepared by competent and experienced legal and other experts. The court was very critical of the GSPA and the obligations that Nigeria assumed under the contract. While setting aside the award, it noted that Nigeria had failed to provide the right resources for entering into such a significant contract.

    Another obvious lesson is that senior government officials entrusted with decision-making power must show a strong sense of responsibility and should be held accountable where they do not. The tribunal identified several instances where key recommendations concerning the arbitration were not acted upon by the officials responsible, including Ministers of Justice and of Petroleum Resources. The court has come to Nigeria’s rescue this time, but it is clear from the judgment that if the heads of the relevant ministries had performed their duties effectively, this case might not have arisen at all.

    • Amao, is a Lagos – based public affairs analyst
  • Not yet a representative democracy

    Not yet a representative democracy

    • By Oluwole Ogundele

    A serious country is defined by the foundational questions it raises and seeks to answer from time to time. Succinctly put, is Nigeria truly ready for democracy as if people matter? In my opinion, this country has not been experiencing representative democracy since 1999. It is too easily forgotten, that the federal legislature (made up of the Senate and House of Representatives) is the nucleus or power house of democracy. Members of this arm of government are to, among other things, protect Nigerians within the confines of the rule of law. Every Nigerian cannot be in Abuja as a part of government. The legislature is an important component of any serious democracy, even though it needs to critically network with the remaining arms-executive and judiciary. The bottom line is good governance.

    However, this common-sense governmental principle does not have a space to stand in Nigeria, where political opportunism coupled with hedonism reigns supreme. The feelings and/or sensitivities of the Nigerian masses do not often matter to our political class, thoroughly de-coupled from the former like a plaque. After winning or rigging elections, these politicians traditionally say good bye to their constituents. This is a betrayal of the people’s trust. Indeed, primitive arrogance and spirit-lessness are rubbishing our democracy.

    No doubt, PBAT means well for our democracy given his antecedents, too obvious to be recounted here. But he needs to be much more vigilant than hitherto, so that some ruthless politicians within the government do not destroy all his good intentions for the Nigerian people. The economy is already in a coma. It needs to be resuscitated as quickly as possible. However, in doing this, the ordinary citizens need a breath of fresh air. The political class must make sacrifices. So far, there is no evidence that the political class members are ready in this regard.

    Most of our intra-and inter-city roads have collapsed as if FERMA (Federal Roads Maintenance Agency) has gone on leave. Surprisingly, the federal legislators continue to look the other way. Their own solution was the buying of exotic cars called SUV. They are promoting the Japanese economy at the expense of their fatherland. The poor thesis of these lawmakers was/is that locally produced cars though much cheaper, were not durable. According to them, they could not last for four years because of our terrible roads. What a country! Some of these legislators unashamedly argued that ministers too, were acquiring more flamboyant/bogus cars, and yet Nigerians were not complaining about them. As far as these special Nigerians (the federal legislators) were concerned, the citizens were unfair to them.

    This reactionary attitude, reminiscent of the Stone Age period, is a huge insult to the Nigerian people especially now that starvation is ravaging most families. The agonies of Nigerians are unprecedented! Our lawmakers should know, that those ministers were not elected by the people, but appointed by President Bola Ahmed Tinubu, in line with the constitution. Second, curbing the excesses of members of the executive is one of the responsibilities of the National Assembly. They have oversight of finance and general policy. Therefore, they have to scrutinise bills as well as the conduct of government officials across the board. They are also empowered by law to remove a poor president.

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    Given the above analysis, the National Assembly should not join some segments of the executive in rocking the boat. The raping of ailing mother Nigeria must stop. Any democracy without a robust legislature is doomed to failure. Thus, for example, the lawmakers should be able to draw the attention of the Ministry of Works to the numerous collapsed roads and bridges across the country. This is part of their statutory duties. FERMA (Federal Roads Maintenance Agency) has to wake up from its unwarranted slumber in the interest of the common good. This agency must do its work or get the boot. The Ibadan/Ilesa/Ita-Awure roads in the southwest are just too monstrous to be adequately explained here. Is anybody in control? PBAT has no tolerance for indolence and/or poverty of ideas. This should encourage the legislators to do their best.  Now, we have a president who is people-sensitive in a number of ways. This arm of government needs to show maximum sanity in terms of transparency, accountability, probity, and prudence at all times.

    The National Assembly under the direction of Godswill Akpabio and Abbas Tajudeen cannot afford to disappoint over 200 million Nigerian masses. They have to remember that only their names will remain, after all the ephemeral pleasures and materialities of their juicy political offices. Despite the growing material poverty of the Nigerian working class, the federal lawmakers especially between 2011 and 2023 have continued to swallow (like pythons) billions of naira just to address their insatiable appetite for exotic cars among others. Therefore, the 10th National Assembly must begin to craft a new narrative enshrined in profound service to humanity. A stitch in time saves nine! It is a deceit for anybody to assume that there will be peace in the face of monumental injustice and a gross lack of equity.

    Currently, there is a huge trust gap between the leaders and the led. For instance, Nigerians are not so excited about the on-going Senate probe of the activities of the managers/stakeholders of our moribund refineries, which have become a drain pipe for the country. This is as a result of the past experiences. Is this not going to be another exercise in futility? Any glimmer of hope this time around? Nigerians are waiting. What would posterity say about this generation? A country where maximum corruption has become a way of life.

    Again, the Presidential Tax Reform Committee is working hard to stabilise the economy at least from the standpoint of internally generated revenues. This is good! But are we sure that the accrued monies will not be mismanaged at the expense of the masses? For instance, most rural settlers are farmers. Much of the farm produce cannot be transported to the cities for sale due to unmotorable roads. This worsens the already comatose local economy.

    The political leaders must learn to prioritise the needs of the country in order to engender peace and progress on a sustainable scale. In this connection, governors should avoid embarking on bogus projects that do not add any value to the lives of the ordinary people. Such projects include beautifully decorated roundabouts usually in the capital cities. For God’s sake, Nigerians need food, security, and good health. What does a hungry man do with a well decorated roundabout, sometimes with several portraits of the governor?  This attitude smacks of complete indifference or callousness of the highest order. Since nothing is wrong with the genes of Nigerians and by extension, Africans, our political leaders must try to engineer a new geo-polity with blocks of integrity and robust service to humanity. Nigerians have to jointly overcome the current hurdle or challenges at all costs, except we do not want to experience sustainable peace and progress.

    • Prof Ogundele is of Dept. of Archaeology and Anthropology, University of Ibadan
  • Pension reform: View from the outside

    Pension reform: View from the outside

    • By Grace A. Abayomi

    In October 2020, former President Muhammadu Buhari appointed Mrs Aisha Dahir-Umar as the Director General (DG) of the National Pension Commission (PenCom) after a lot of uncertainty on the status of the leadership of the commission. Dahir-Umar and the Executive Management Team have now been in the saddle for three years and I think it is important to ask this question: How much ground have they covered in discharging their responsibilities to the pension industry?

    As it is well known about Nigeria, we are never short of reform policies. Since 1999, we have embarked on ground breaking reforms in various aspects of the economy. The big issue all the time is how well these reforms are impacting the sectors. There is this dim view that reforms do not always succeed in Nigeria. Some reforms are launched with fanfare and expectations but before the music dies down, they are gone with the wind for reasons that have to do with lack of continuity, dynamism and commitment. The pension reform has, however, bucked the trend.

    I must necessarily start by admitting that PenCom is a government agency that has gone through leadership changes over the decades and still remains strong in performing its regulatory and policy-making duties. Kudos must go to those who laid the foundation of the commission, and we have to mention former President Olusegun Obasanjo when we discuss the success of Nigeria’s pension reform. The commission started off on a good footing in 2004. Interestingly, Mrs Dahir-Umar served as a member of the Fola Adeola Committee that recommended the establishment of PenCom. She was the committee secretary. When she was appointed as DG by Buhari, I expected her to maintain and improve upon the standards. Anything less and the pension reform would unravel.

    The hard facts in the last three years have been very encouraging despite the mountains of challenges that still need to be climbed. One of the most newsworthy developments is the fact that pension assets have grown by N5.94 trillion between then and now, moving from N11.35 trillion to N17.29 trillion. Given the turbulence the economy has passed through, including the effects of the COVID-19 pandemic, the pension industry has every reason to appreciate its steady growth. A major impact of this growth is felt in the financial sector. The growing pool of funds has not only helped with savings mobilisation, but it has also expanded the capital market and provided consequential benefits to the economy. Pension funds contribute significantly to infrastructural finance in the country, especially in waste management, independent power generation and road construction (through Sukuk bonds). Thanks to the growing pension assets, the real sector of the Nigerian economy is receiving more long-term funds for investment.

    Furthermore, between 2020 and 2023, there has been an increase in the number of contributors enrolled on the Contributory Pension Scheme (CPS), which is core to the pension reform. Over the period, CPS has recorded over one million new contributors, according to official statistics. This is remarkable within the context of other developments, such as the exit of certain contributors based on legislative and administrative approvals, and the economic recession induced by COVID-19. Hitting the 10-million mark in the number of registered contributors is good for the headlines but, more importantly, it is worth noting that enrolment has not tanked. With what the economy has gone through in the last three years, the natural expectation would be for enrolment to drop. That it has kept growing speaks volumes of the resilience of the management of the reform.

    Read Also: Pension complaints and solutions

    Another area of interest is the recapitalisation of the Pension Fund Administrators (PFAs). When PenCom issued a directive in April 2021 asking PFAs to recapitalise, it was received with mixed feelings. Their shareholders’ funds were mandated to be increased from N1 billion to N5 billion, with the deadline set for April 2022. On the one hand, I believed it was necessary to strengthen the PFAs because they were carrying more responsibilities by the day. The number of registered contributors and value of pension assets needed to be managed in a way that the PFAs would have to improve service standards, in addition to meeting the operational needs in the industry. On the other hand, I was wondering if the capital review would not lead to the deregistration of some PFAs that might not be able to meet the requirement. It could shake confidence in the industry if it ever came to that. The good news is that the capital review turned out well. No company went under. Indeed, they all came out stronger, with some receiving foreign investments. What looked like a delicate policy initiative by PenCom ultimately delivered a good outcome.

    PenCom has also succeeded in its efforts at digitalising the industry. It has revved up the deployment of technology in recent years, and this has seen to the clean-up of the database of contributors in a country where pensioners used to suffer over “missing files”. In 2019, PenCom had deployed the Enhanced Contributor Registration System (ECRS) to replace the outdated Contributor Registration System (CRS). PenCom then asked all PFAs to do a data recapture of Retirement Savings Account (RSA) holders who had been registered on the old system. Contributors’ biodata and biometrics were recaptured under ECRS. This did not just improve the integrity of contributors’ data, but it also made it easy for the automation of the process of generating employer codes for employers. A direct benefit of this is that since PenCom launched the “Transfer Window” in November 2020 — by which contributors can change PFAs once a year if they are not satisfied with the service of their current PFAs — the ECRS makes the process smoother for RSA holders. Data recently released by PenCom shows that nearly a quarter of a million RSA holders have changed PFAs. The stark reality that account holders can move elsewhere has created competition among PFAs. This can only promote quality service delivery and competitive investment returns.

    I must not fail to mention that in 2022, when PenCom issued guidelines for the Residential Mortgage, I saw another dimension to the pension reform. My focus all along had been the payment of retirement benefits. Mortgage never featured in my imagination. Section 89 (2) of the Pension Reform Act (PRA) 2014 provides that “a Pension Fund Administrator may, subject to guidelines issued by PenCom, apply a percentage of the pension assets in the Retirement Savings Account towards payment of equity contribution for payment of residential mortgage by a holder of Retirement Savings Account”. Realising the policy guidelines to implement this section opened up yet another outlet for the impact of pension reform on the individual’s life. Employees can now become homeowners while still in active service by accessing a percentage of their RSA accounts towards mortgage. According to PenCom, over 300 applications have been approved since the initiative took effect in August and contributors have accessed over N4bn for this purpose. This is massive.

    This is not an invitation for PenCom management to rest on their oars. As I noted already, there are still challenges to be overcome. PenCom must lead the conversation on how to address the issue of low pensions. I recently read an interview granted by Mrs Dahir-Umar in which she said employers and employees need to engage more on these issues. As the regulator, PenCom is limited in what it can do, but it should continue to moderate the discussion so that the enthusiasm will spread. PenCom should also step up its advocacy on the need to stop attempts by many government bodies and officials to exit the CPS. These are real dangers to the reform.

    • Mrs Abayomi, an economist, lives in Akure, Ondo State
  • When Nigerian girls shone on the global stage

    When Nigerian girls shone on the global stage

    By: Akinola Ayobami Steven
    Sir: In a resounding victory for the girl child and a testament to the progressive educational investments made by the Lagos State government, two remarkable young women have made their nation proud by clinching gold and silver medals in this year’s Commonwealth Essay Competition. The achievements of Oscar Sharon and Ifeoluwa Akinola are not merely accolades but also a powerful illustration of the immense potential that the girl child holds when offered quality education. Their success highlights Lagos State’s commitment to enhancing education at both the secondary and tertiary levels and embodies the indomitable spirit of intelligent Nigerians in the global arena.

    Oscar Sharon and Ifeoluwa Akinola’s remarkable achievements cast a spotlight on the transformative power of quality education and its profound impact on the girl child. Historically, gender disparities have hindered countless young girls, depriving them of opportunities to realize their full potential. However, the accomplishments of these young women serve as a beacon of hope and inspiration, emphasizing that the girl child, when provided with equal opportunities and quality education, can shine brightly on the global stage.

    Education is not just about acquiring knowledge; it is a means of empowerment. It equips individuals with the skills and confidence to participate actively in societal development. The triumph of Oscar and Ifeoluwa reinforces the boundless potential of the girl child and the positive transformation that occurs when barriers to education are dismantled.

    Lagos State has taken commendable strides in enhancing education, not only at the secondary level but also within tertiary institutions. The Lagos State government has made substantial investments in education, recognizing it as a cornerstone for societal development. The commitment to education is evident in the comprehensive reforms and initiatives launched by the state to enhance the quality of learning.

    At the secondary level, Lagos State has been instrumental in creating an environment conducive to learning, offering state-of-the-art facilities, and fostering a curriculum that empowers students with relevant skills and knowledge. Ifeoluwa Akinola, who graduated from Abesan Senior High School, Lagos, serves as a testament to the state’s efforts in nurturing young talents.

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    Furthermore, Lagos State has displayed a resolute commitment to improving tertiary education. Institutions like the Lagos State University have seen remarkable enhancements, providing students with a world-class education that equips them with the tools necessary for success in a globalized world

    The achievements of Oscar Sharon and Ifeoluwa Akinola on the global stage are not isolated instances. They symbolize the Nigerian spirit of resilience, intelligence, and competitiveness. Nigerians have consistently demonstrated their ability to excel in various fields, both nationally and on the international stage.

    In an increasingly interconnected world, the accomplishments of young Nigerians like Oscar and Ifeoluwa underscore the potential for global competitiveness. Nigeria’s intellectual capital, innovation, and talent have the capacity to shape the future and contribute positively to global discourse.

    Education has a pivotal role to play in reducing moral decadence and social vices among the youth. Oscar Sharon and Ifeoluwa Akinola’s success story is a beacon of hope, offering an alternative to misguided paths often driven by a lack of access to quality education. When young people are empowered with knowledge and opportunities, they are less likely to engage in detrimental behaviors. The achievements of these exceptional young women serve as a strong deterrent to social vices.

    The triumphant narrative of Oscar Sharon and Ifeoluwa Akinola emphasizes that quality education, especially for the girl child, is a transformative force with far-reaching benefits. It spotlights Lagos State’s unwavering commitment to nurturing talent at both secondary and tertiary levels and mirrors the indomitable spirit of intelligent Nigerians on the global stage. Their achievements serve as a beacon for reducing moral decadence and social vices while significantly improving education among young people. Their success represents a remarkable step towards creating a brighter and more prosperous future for all.

    • Akinola Ayobami Steven, akinolaa61@gmail.com
  • Stigmatising repentant Boko Haram fighters

    Stigmatising repentant Boko Haram fighters

    By: Mohammed Bala

    Sir: Boko Haram, the extremist group, has caused immense damage and suffering through its brutal acts of violence. For years, their activities have terrorized the population, leading to countless deaths and displacements. The federal government initiated a rehabilitation programme to reintegrate those who voluntarily renounced their membership or involvement with Boko Haram. The program aims to provide counselling, education, vocational training, psychosocial support, and community integration opportunities. The goal is to empower the individuals to become productive members of society, ultimately promoting peace and countering the extremist ideology.

    Despite government’s efforts, stigmatization against repentant Boko Haram fighters remains a significant hurdle to their successful reintegration. Society often marginalizes these individuals, fearing they may still have hidden extremist sympathies or pose threats to their communities. This unwarranted fear can perpetuate a cycle of violence and hinder efforts to build a peaceful, cohesive society.

    It is crucial to understand that the rehabilitation process can lead to genuine remorse, radical transformation, and an opportunity to reintegrate into society. However, this is only possible through collective support and empathy. It is essential to provide them with acceptance, understanding, and opportunities for personal growth and development.

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    Education plays a pivotal role in dispelling misconceptions surrounding repentant fighters. By increasing awareness and understanding, society can challenge stigmatization and create an environment that encourages these individuals to rebuild their lives positively. Communities and educational institutions can organize workshops, seminars, and awareness campaigns to foster empathy and educate the public about the rehabilitative process.

    Successful reintegration includes both the repentant fighters and the communities they return to. It is critical to involve community leaders, religious figures, and local organizations in the rehabilitation process, promoting an environment of acceptance and understanding. By facilitating dialogue and shared experiences, communities can rebuild trust and work towards preventing radicalization.

    Stigmatizing individuals who have genuinely renounced their involvement with Boko Haram is counterproductive and hinders efforts towards building a peaceful society. The rehabilitation programmes implemented by the government provide significant opportunities for repentant fighters to reintegrate into society. However, it is the responsibility of society at large to challenge their biases, provide support, and facilitate their successful reintegration. By doing so, we not only help the repentant fighters rebuild their lives but also contribute to preventing further radicalization and fostering a peaceful future for Nigeria.

    •Mohammed Bala, Borno State University, Maiduguri

  • How to make the naira stronger

    How to make the naira stronger

    By Jennifer Iwu

    A foreign rating agency in a recent report joined Nigerians in bemoaning the fate that has befallen the nation’s legal tender, the Naira, which had exceeded the N1000 to the dollar threshold but seems to be recovering slowly at a little above N800 to the dollar.

     The currency is perceived, even by local experts as the most devalued anywhere in Africa. In the early 1980s, the currency was strong enough to be accepted as a medium of exchange in some international finance capitals. Suddenly that achievement was frittered away by administrations that did not see the wisdom in building on the attainment.

    It is from that perspective that its present state of affairs as regards its value in the currency market is considered inherently disheartening.

    This problem with the Naira is not a recent development. There was a time that the currency was treated with the decency it deserved in its competition with others elsewhere. In those days that are considered the golden era of the nation’s economy, the productive sector of the country was booming, at least by African standards. Investors were flowing in to take advantage of the favourable investment climate in the country then.

    All sectors of the economy were operating at a level that made the country a must go business destination. The agricultural sector especially was making its impact to the point that most raw materials were sourced locally.

    The textile factories survived on the lush cotton farms in parts of the North, the automotive companies that sourced a sizeable portion of their inputs from Nigeria were doing good business, transferring technology and creating jobs. Tyre producing companies promoted the cultivation of rubber in parts of the south-south and were empowering local, small holder farmers.

    There were many industries producing household products most of which sourced their raw materials from cocoa, palm oil and groundnut all grown in the country. Food drinks were not left out in that drive to really grow the economy and build its Gross domestic Product (GDP). The success of that effort reflected on the value of the Naira, there was minimal stress on the local currency. Foreign currencies were not as dominant as they are today.

    Soon to emerge was the cankerworm known as policy inconsistency and its twin sister, ill-advised import-substitution preferences. These succeeded in subduing the agricultural sector and, by implication, the industries that relied on it. This was made possible by the years of easy petro-dollar that lulled everyone into a state of complacency, especially policy-makers, who began to feel that money was not the problem, but how and on what to spend it.

    Before the nation realized sufficiently that the economy was on a downward spiral that kept chipping off the value of the Naira, it was already too late as there was not enough dollar and pound to finance the indecently acquired taste for imported goods and services.

    What happened to the Naira started when production declined and the nation lost its grip on the productive sectors. Factory spaces became churches and Nigerians started clapping and singing in them instead of putting them into productive use. Textile companies folded up and became car dealerships. A lot of measures were put in place to manage the drift which ended up compounding the problem that is presently trying to strangulate the Naira.

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    To the consternation of the citizenry already used to bank transactions when the need for foreign currencies arose, black market emerged from nowhere and took over the space. Their rates have become the benchmark for assessing the true value of the Naira. That market has defied every effort by the regulatory agency, the Central Bank of Nigeria (CBN), to control its dominance of the foreign exchange market, to no avail. Instead, round-tripping, a process of obtaining foreign currencies at the official rate and selling them at the black market at higher rates, has continued unabated.

    The situation is made worse by the deposit money banks (DMBs) who randomly refer their customers to this market if they need foreign currency above a certain limit. Curiously, this so-called black market, an outlet for underhand transactions elsewhere patronized by shady characters, is accepted as the real deal in Nigeria.

    Soon the political class joined the fray and started hoarding the dollar for political purposes denying the productive sector the foreign exchange it desperately needs for importation of raw materials and spares.

    All these have contributed to the weakening of the Naira with the disastrous effect that it is having on the economy generally. Cost of living has become outrageously high. Businesses are struggling to keep their heads above water.

    Sadly, the Central of Nigeria (CBN) is being made the fall guy as everyone expects it to satisfy their foreign exchange requirements without stopping to ask the pertinent question, how can the nation generate the foreign exchange enough to go round? The CBN, like any other elsewhere, is not in the business of mass producing any foreign currency for that matter. The only way to generate this hard currency is to expand and increase the inflow of foreign exchange through productive exercises for export. Presently, not much of this activity is going on. There is no quick way out of the quagmire other than for the nation to reorder its priorities. Already, the nation’s foreign reserve is depleted. What this means is that the nation must look inwards if the present situation is to be reversed.

    Without productive activity, there is not much anyone can do to save a situation that is becoming increasingly dire. If the nation desperately needs foreign exchange as it presently does, then the citizens must necessarily roll up their sleeves and work hard to produce not just for local consumption but also for export.

    The continued importation of petroleum products is a drain on scarce foreign exchange. Non-essentials like medical and educational tourism at state expense added a dangerous mix that is utterly unhelpful.

    At a certain time, the CBN toyed with the idea of bringing the Chinese Yuan as an added currency to ease the pressure on the dollar. The nation was upbeat just as the CBN warned that even that must have to be earned. In other words, without a strong productive base the country still has a long way to ease itself out of the logjam of low currency value and its impact on the economy.

    What this suggests as a solution is a serious and determined approach to the diversification of the economy away from hydrocarbon. This is a policy that must necessarily escape the lip service it is presently receiving. Non-oil sectors such as solid minerals, agriculture and tourism must take the front burner of economic discourse if the Naira is to regain it stability in the open market.

    As at today, the nation is an import-dependent country. We import everything from apples, biscuits to tooth pick. But the economy must come off its import dependency malaise and focus on economic activities that promote local sourcing of raw materials and produce for export. That is the way out of what is going on now. That is the way to restore the value and prestige of the Naira. What is required is the political will to do the needful.    

    •Iwu is a retired banker based in Lagos