The Nation Newspaper

Category: Editorial

  • Housing for all?

    Housing for all?

    •MREIF’s N1 trillion NGX initiative gifts Nigeria’s mortgage market a healthy jab

    The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), just floated on the Nigerian Exchange Ltd (NGX), has given the country’s mortgage market a new lease of life. 

    Without a doubt, it’s the most market-driven mortgage finance initiative so far.  It has exciting prospects.  Instead of the government battling Nigeria’s huge housing deficit all alone, the new policy offers a government/private-sector capital partnership.  The result could be a great leap in housing delivery.

    Its November 11 listing at NGX seems the start of a new era, which could revolutionise the housing mortgage sector.  It was listed as “MOFIREIF” — MOFI Real Estate Investment Fund — by Vetiva Securities Ltd, with Citi Investment Capital Ltd: 1, 000, 000, 000 units, of N100 each.

    Its target is to gross no less than N1trillion in social investment capital. MOFI has fully paid a N150 billion seed funding, to kickstart this public-private sector collaboration.

    The fund, when fully subscribed, will be available for mortgage financing at a single-digit of 9.75 per cent, well below the double-digit conventional bank interest rates.  The trade unit is the Real Estate Investment Trust (REIT).  It is open to old and fresh investors. 

    The mortgage repayment terms, with a 9.75 per cent yearly interest, is spread over between 20 and 25 years.  The basic philosophy is that anyone that could sustain paying rent should be able to service MOFIREIF.  With participating housing firms’ access to cheaper capital, the prospect of rent-to-own is very bright, other things being equal. 

    That reinforces the REIT social capital bent.  The more the market shifts from rents (monthly or yearly), to long-term rent-to-own mortgage loans, the more housing security will deepen.

    The idea is to draw institutional investors into the housing market; and also tap into the deep but near-dormant reserve of pension funds to create a vibrant, sustainable, long-term mortgage finance, in a mutually rewarding investment by public and private sector capital.

    To the extent that MOFIREIF is an extension of President Bola Tinubu’s goal of a robust credit economy, the government deserves kudos for yet another policy pillar en route to that laudable goal.  The Federal Ministry of Finance under Mr. Wale Edun, as well as the entire MOFI establishment, have also earned due praise for lifting all of the heavy planks that preceded the exchange listing. 

    But now, it’s time to move from policy conception to vigorous execution.  Though such can’t be taken as given, the steps taken so far point to a well thought-out policy.

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    Be that as it may, the beginning is nothing.  A successful end, with vastly increased housing stock, is everything.  Still, effective regulation is critical.

    The expected uptick, in the housing and allied construction value chain, include sustainable jobs for architects, engineers and sundry housing professionals, apart from masons, tilers, plumbers and the lot.  Aside helping to reduce Nigeria’s housing deficits, now put at 28 million units (according to the Federal Ministry of Housing and Urban Development), it should also drive up general economic growth. 

    But it could also drive down sleaze.  An underwhelming mortgage system, linked with the not illegitimate rush to own homes, tend to drive many to temptation.  This new deepened institutional credit could just help to reduce such vices.

    Still, for these noble goals to be attained, effective publicity is imperative.  The stock exchange has the capacity to sate the investing public and institutions.  That takes care of the supply end.

    Not so, the demand end.  So, the government should pull all stops to give this new initiative the publicity it demands.  Again, as institutions are  crucial at the investment end, so are institutional “buyers” at the demand end. The government should, therefore, structure the enlightenment blitz, such that as many ministries, departments and agencies, as well as companies, can buy into the new mortgage deal.

    A robust entry volume could well set the stage for a sustainable market that grows by the year, with fair returns on investment.  Who knows?  Such a response could even drive down the mortgage rate, thus making acquiring homes even more affordable.

  • Thoroughly absurd.

    Thoroughly absurd.

    • Naval officer’s unruly conduct to FCT minister deserves stiff reprimand

    The video showing a confrontation between the Minister of the Federal Capital Territory (FCT), Abuja, Nyesom Wike, and one naval Lieutenant A. M. Yerima, who was protecting a private property allegedly belonging to a former Chief of Naval Staff, impugns the authority of President Bola Ahmed Tinubu, GCFR, who is both the chief executive and Commander-in-Chief of the Armed Forces, of the Federal Republic of Nigeria. The minister had confronted the lieutenant for disrupting the enforcement of the land use allocation policy of the ministry, while the naval officer claimed to be under instruction to guard the land belonging to a former naval chief.

    The minister, who serves at the pleasure of the president, is indeed the alter ego of the president in the Federal Capital Territory. To challenge him in the lawful performance of his duties amounts to challenging the authority of the president over the land use allocation laws in the FCT.

    The crux of the dispute, which is the use to which land in Abuja can be put to, is within the purview of the minister, and it is within his powers to enforce the laws made pursuant to that power.    

    Where someone is making an illegal use of any land within the FCT, the minister in exercise of his powers has every right to stop any such abuse.

    The information in the public domain is that the land is earmarked for parks and garden, and a private company which got approval based on that use had applied to the agencies of the ministry for change. While the application has been rejected, the company sold the land to the naval chief, who started development on the land.

    Since his assumption of office, Mr Wike has shown determination to stop abuses associated with land use in the FCT, and that has amassed for him a lot of enemies. His style of not caring whose ox is gored in his restoration programme of Abuja master plan, has made his office a target of attacks by the high and mighty, who are mostly responsible for those abuses.

    Even for those who may disagree with his combative style, no one can deny the fact that the minister has been very effective at his duty post.

    ‎For the young military officer, the first question should be what was he doing as a guard at a private property? If as he claimed in the video, he was sent there to guard the property; who sent him? If he was sent by a retired naval chief, does it fall within the remix of authority of the retired naval chief to have military officers guard his empty landed property? We wonder if the military has fallen into the challenges faced by the Nigeria Police, where officers are engaged in domestic services, while battle fronts are under-manned.

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    ‎As a military officer, the naval lieutenant should distinguish between regimental duties and private assignments. Resisting public servants engaged in their lawful duty amounts to acts capable of bringing the military to disrepute. Refusing to obey an unlawful order cannot be a ground for his superior to punish him, unless we now have a military of anything goes.

    As an officer, he ought to know that while he has raw power, the minister has authority, which is superior.

    The former naval chief who sent the young officer on a private duty should know that while guarding him, his family and residence, even after retirement may come within his earned privileges, guarding a disputed land cannot fall within his earned benefits, as a retired naval chief.

    Such limitation with respect to the protection of the retired naval chief does not derogate from the honour, respect and gratitude the nation owes him for his long service to his fatherland.

    The military chief must realise that while the nation holds him in the highest esteem for services rendered to the country, his privilege does not extend to sending a junior officer to engage in unlawful duty. If the naval chief was scammed to buy a land not meant for residential purposes, he should seek a refund from the fraudulent scammer, and not resort to raw power to normalise the anomalous situation.

    Even with the most lethal force, he cannot grant himself title to the disputed land. He must resort to the legitimate issuing authority, which is the Minister of the Federal Capital Territory, acting  for the President and Commander-in-Chief of the Armed Forces of Nigeria, which the young naval officer in his ignorance has insulted and restrained from engaging in his lawful duty.

    The statement by the Minister of Defence, Mohammed Badaru, that the military will defend a military officer engaged in lawful duty, is legitimate.

    But, those who frame the statement to mean the young officer has been exculpated, should ask themselves whether he was on a lawful duty? We condemn the attempt by retired Lt. Gen Tukur Buratai, to turn the logic of the matter on its head. He clearly has a hangover that the military is not subordinate to any civilian authority.

    We demand for a detailed investigation of the imbroglio.

  • EI Powerboat Race

    EI Powerboat Race

    •Last month’s hosting of the competition in Lagos is a pointer to Nigeria’s vast potentials

    Lagos State has made Africa proud once again as it hosted the EI Powerboat Race for the first time. Prior to the bold move by the state government, no city or government in Africa had been able to do so. The state governor, Mr. Babajide Sanwo-Olu, deserves commendation for his visionary move that brought attention to the city and state.

    The potential gain goes beyond providing a spectacle for the people of Lagos and Nigeria. Many of the team owners, including sports legends Didier Drogba, Lebron James and Raphael Nadal, expressed pleasure at the ability of an African nation to host them and thus offer participants the opportunity to savour the warmth of the city, its people and infrastructure.

    We look forward to the immense boost to tourism in the country as many of the participants spoke glowingly of their introduction to Nigerian foods in top rate restaurants and expressed willingness to return to the city whenever the opportunity avails again.

    EI Powerboat may be an elite sports, but, like other such games like Golf and Polo, it has a tendency to attract so much funds through sponsorship that even the common man, those involved in the local couture, memorabilia and similar products would smile to the banks wherever the event is held.

    The event was a good opportunity to promote Nigeria. Even an opposition political figure like Mr. Olu Akpata, a former President of the Nigerian Bar Association (NBA), who later became a prominent leader of the Labour Party, had good words for the state government. He reported participants as praising the state for representing Africa well.

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    Lagos State is dubbed the ‘state of aquatic splendour’ because of the abundance of water bodies in the state. Are they fully developed yet? No. That it could nonetheless host such a sport little known in the country speaks volume of the potential. It is a call to action to develop water transportation, tourism and sports in the country.

    The competition has exposed the state to the world, and coming up with a blueprint would help to make the state even more beautiful.

    Given the role that the Federal Government played in preparation for the tournament, it is obvious that the Tinubu administration would be willing to partner with the state government in harnessing the resources available in this wise. This should be done expeditiously. This is one legacy that Governor Sanwo-Olu could bestow to the state before bowing out of the stage in 2027.

    Other states have a duty to take a cue from Lagos State. Those that are equally endowed with water resources should do well to put them to optimum use. The least that could be done is to develop water transportation that has remained at the rudimentary level in the country, thus leading to avoidable accidents in rickety boats overloaded with passengers and goods.

    The legal framework remains poor and every accident on our rivers is merely greeted with lamentations. We must move from that level. The Powerboat competition has once again called attention to vast potentials in the sector.

    Lagos has continued to show leadership in many areas, including revenue generation, rail transportation, support for security forces, among others. If Nigeria is to attain her targeted heights, other sub national governments would have to follow suit.

  • A welcome emergency

    A welcome emergency

    •Modernisation of security training colleges will add value to policing in the country

    It is significant that President Bola Tinubu personally attended a meeting of the National Economic Council (NEC) at the Presidential Villa on October 23, during which he declared a state of emergency on security training institutions in the country. He then inaugurated a subcommittee of the NEC to work on their overhaul.

    The committee, which has Enugu State governor, Mr Peter Mbah, as chairman, has Ogun State governor, Prince Dapo Abiodun, as secretary while other members include the governors of Akwa Ibom, Taraba, Nasarawa, Kaduna and Zamfara states. Others are Assistant Inspector-General of Police in-charge of the Special Protection Unit, Mr Olatunji Disu, and a former Inspector -General of Police, Alkali Usman Baba.

    Overhauling and modernisation of critical security training institutions as a cardinal part of the much-needed security sector reforms is critical to provision of security. All too often, reforms in this sector tend to focus narrowly on increasing the size of personnel of security agencies, enhanced security funding or improved welfare of security staff.

    This presidential initiative on resuscitation of security training institutions accords qualitative training for security personnel the appropriate priority it deserves in attaining an optimally efficient, effective and productive security sector, with the capability of guaranteeing safety of lives and property in a complex, plural, heavily populated society like Nigeria in the 21st century.

    During an on-the-spot assessment of the Police College in Lagos as part of his committee’s assignment, Governor Mbah justified the need to urgently uplift the affected institutions, noting that “We cannot use systems of the 20th century to train a 21st century police force. Officers need to be equipped with evolving skills, such as artificial intelligence, robotics and digital competencies.

    ”We must ensure that those protecting our communities are trained in humane and conducive environments,” he said adding that the committee would conduct a deep assessment of the facilities in these institutions and collaborate with consultants to determine how they would be rebuilt, re-equipped and upgraded.

    The committee has 30 days to submit a comprehensive report on the institutions.

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    The focus of the committee will be the training institutes of the Nigeria Police Force (NPF) and the Nigeria Security and Civil Defence Corp (NSCDC). The primary training institutions of the NPF are the Nigeria Police Academy in Wudil, Kano State, the Police College, Ikeja, and Police Training Schools in Ibadan, Benin, Oyin Akoko, Makurdi, Iperu, Calabar and Ilorin. The police also has specialised training centres such as Police Mobile Force Training School, Abuja, Counter- Terrorism Training School, located in Nonwa Tai, Rivers State, and the Police Detective College, Enugu.

    On its part, the NSCDC trains its operatives at the Civil Defence Academy, Sauka, in the Federal Capital Territory (FCT), College of Peace and Disaster Management, Katsina, and the College of Security Management in Ogun State.

    The Commandant of the Police College, Ikeja, AIG Omolara Oloruntola, when conducting members of the Governor Mbah committee round the premises gave a graphic indication of the severe challenges confronting the institution. According to her, “Some of our dormitories that were built since 1948 are almost dilapidated. For now, it can only conveniently take about 500 trainees. I couldn’t use the dining hall for my last recruits who passed out a few months ago.

    ”There is a ceiling there that is almost collapsed. Also, we don’t have a conference hall. The roofs of our accommodation are all leaking. We have water shortage, too. We don’t have light to power our boreholes”.

    Some of the other litany of woes at the school include classrooms without chairs or fans, a dining hall without windows and lack of sporting equipment to train the recruits.

    From all indications, these problems are not limited to the Police College, Ikeja, but are characteristic of other security training institutes across the country. It is obvious that students trained in this kind of environment will have poor self-esteem and lack the emotional stability and psychological balance to relate to the public with dignity, composure and compassion.

    Beyond upgrading and modernising accommodation, quality of feeding and training facilities, the curricular of the training institutions should also be upgraded to reflect the highest global standards.

  • Dilapidated courts

    Dilapidated courts

    •It’s high time the federal and state governments gave the temples of justice the desired attention

    The expose about the poor funding and decrepit state of federal and state courts across the country, by ‘The Guardian’ Newspaper, last week, is a wakeup call to the federal and state governments to prioritise the welfare of judicial officers and rehabilitation of the courts and other judicial infrastructure across the country. Sadly, even with the advent of democracy in 1999, there has been poor budgetary allocation to the judicial sector, over the years.

    To stem the challenge, the federal and state budgetary processes must make a concerted effort to bridge the gap, considering that the judiciary, by its constitutional limitations, cannot solve the problem by itself.

    Unlike the judicial arm of government, the executive prepares the budget and warehouses the approved budgeted funds, while the legislature reviews the budget proposal and gives its approval, actions that place the two arms at the sharing table of the resources of the federal and state governments.

    The essay showed that in the 2024 federal budget, only about N5.3billion was earmarked for capital projects, and N8.8 billion for recurrent expenditure, for the judicial sector. Those allocations are abysmally low, in a budget that had N7.72 trillion for capital expenditure and N9.92 trillion for non-debts recurrent expenditure, for the same period. Unfortunately, what happens at the federal level is replicated at the state level of government across the country.

    The report captured the sorry state of the Federal High Court in Lagos, which is unarguably the busiest in the country. It says: “files are piled so high that they form walls. Lawyers squeeze into overcrowded rooms, sweating as fans’ blades whir weakly or not at all. Wooden benches creak routinely as the air smells of sweat and paper”.

    We wonder how efficient the judicial process conducted in such an unfriendly environment would be, and of course, the by-product reverberates across other sectors of the nation’s life.

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    The report also portrayed the stifling state of affairs in the Ikeja Division of the Lagos State High Court, despite the innovative actions by the present leadership. It says: “The once-imposing Ikeja High Court Complex now looks tired, its walls discoloured, its ceilings caving in, and its air thick with dampness and dust. The walls, originally cream and smooth, are now streaked with mucus-like patches of mold, dirt, and water stains. In many parts, paint peels off in large flakes, exposing rough concrete beneath.”

    Similar state of disrepair is witnessed in states across the country. In Ondo: “On a grey morning in June 2025, rain hammered the rusty roof of High Court 1 in Ondo Judicial Division until the roof gave way. Water streamed onto the judge’s bench, soaking wigs, robes, and files until the courtroom smelt of wet wood and damp paper.”

    The fate of courts in Ekiti State is no less disheartening. In that state, “tragedy almost struck when part of the state High Court complex collapsed in July 2023. The then chief judge, Justice Oyewole Adeyeye, sustained injuries. He was later flown abroad for treatment, but never fully recovered. Months later, he died.”

    The courts in the south east are not luckier. “In Imo State, panic swept through the Federal High Court, Owerri, in January, this year, when the building began to vibrate during a session. Lawyers and judges fled for their lives. The structure built under former Governor Rochas Okorocha had long been suspected of structural defects. The Nigerian Bar Association (NBA) promptly suspended court activities, calling for safety inspections.”

    This state of affairs in the judiciary is totally unacceptable in a 21st Century Nigeria.

    We call on the National Council of State to review this sorry state and take urgent steps to rescue it from total collapse. Without an efficient judicial process that delivers on the rule of law; the political, economic, and social life of the country is in jeopardy.

  • Super Eagles boycott

    Super Eagles boycott

    •Too close to a match with so much at stake

    The idea that players representing Nigeria should embark on a strike is nothing new. That is the worst of it: That it is nothing new.

    There is no place for such a misnomer in a normal run of things. No football team worth a national name should not be paid an allowance or bonus due to it, even if it is for one match.

    When the country’s team embarked on a boycott of training in Rabat, Morocco, it may be regarded as a quintessential Nigerian failure. But this was not one failure, but a failure that has a trail, a long trail. The boycott for failure by the sports authorities to pay them their entitlement dating back to 2019, which makes it six years of breaches.

    The players’ statement was explicit enough.

    “The full squad, including officials, withheld from training today in Morocco because of unresolved issues with outstanding payments.

    “The Super Eagles are awaiting a quick resolution to continue preparation for Thursday’s game with Gabon. Thank you. From the players.”

    Familiar names of the squad embarked on the boycott. They included captain William Troost-Ekong; forwards Victor Osimhen, Ademola Lookman, Moses Simon, Chidera Ejuke, Alex Iwobi, Samuel Chukwueze, and Akor Adams; defenders Calvin Bassey, Chidozie Awaziem, Benjamin Frederick, Semi Ajayi, Zaidu Sanusi, Amas Obasogie, and Stanley Nwabali; and midfielders Wilfred Ndidi, Frank Onyeka, Raphael Onyedika, Ahassan Yusuf, Tolu Arokodare, Olakunle Olusegun, and Bright Osayi-Samuel.

    It was not a divided house. It means they were fighting not only for those who are presently in the squad, but some players whose tours have expired or who are not even invited to play for the team anymore or have retired, have gone into silence without the justice of earning their pay.

    The match is scheduled for today but they boycotted training on Tuesday, November 10, promising to return to the field only after the issue would have been resolved.

    Not all the members of the squad were present in the practice session, the only one they had had before the boycott. Well-known forward Ademola Lookman did not report to camp until after that practice session.

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    Although the issue seems to have been resolved now, as the players have agreed to play today, it is, to say the least, irresponsible that the nation and the squad should be treated to the kind of neglect that brought about the boycott. We are all witnesses to the bumper gifts the president, Bola Ahmed Tinubu, showered on Super Falcons, the female football team for their exploits. The same level of appreciation was bestowed on the basketball maestros, D’Tigress.

    That contrasts with the treatment meted out to the Super Eagles. At stake is not just a football encounter. The Super Eagles, the most popular of Nigeria’s teams of any sport, were even thought a few weeks ago to be out of contention for the World Cup holding in 2026.

    But its performance of late and the permutations of other teams gave Nigeria a chance to play among four teams. That is why we are in Rabat, Morocco, to square off against Gabon. Only one team will qualify. While Nigeria takes on Gabon, Cameroun will hit the turf against Congo. The winner in this designated semi-final encounters will duel for the chance for the big dance.

    All of this was at stake when the players boycotted. We cannot praise the players for their dramatic brinkmanship for striking at that crucial moment, knowing that they have few days of practice and strategy for so crucial a match.

    If they play, they will know that they have to win, or else any failure would be regarded as juvenile overreach for not giving themselves the chance to win. They might have chosen earlier encounters for boycotts. But, in the final analysis, the sports authorities take a lion’s share of blame for this sorry development.

  • N10,000, N20,000 notes

    N10,000, N20,000 notes

    • Such high denominations will worsen inflation; it should be a ‘no-go’ area for the government

    All of a sudden, Quantus Economics, has leapt to media and public attention. Before its speculation that the monetary authorities were considering introduction of higher denomination notes for the Naira last week, little was known of the body. Even now, a search on the internet yields little information on it.

    However, because Nigerians have become very sensitive to matters of the economy, it has leapt to front page of major newspapers and attracted reactions from leading economic organisations.

    Quantus Economics reported that there were plans to issue N10,000 and N20,000, a giant leap from the N1,000 that has remained our highest notes for years. Perhaps this would not have received so much attention if there had not been suggestions before now that N5,000 notes were in the offing.

    The Central Bank of Nigeria (CBN) was reported as making plans to reduce the cost of printing notes by introducing the higher note. However, the reaction of the public to the move indicated that it would have been an unpopular decision.

    Quantus Economics had argued that introducing higher notes would not only reduce the cost of printing currency in the country, but assist the public in handling them. The body said the existing notes had lost so much value that carrying them about had become a burden to people, especially where notes lower than even the N1,000 have to be paid out in the banks.

    However, the Organised Private Sector and the Labour movement have stridently opposed the plan, dubbing it elitist. To illustrate their position, they pointed out that a worker on the current minimum wage of N70,000, would only be paid three N20,000 notes and a N10,000 if the suggestion is adopted.

    The two bodies that would be impacted most by the decision, if allowed, have pointed out that it would reverse the gains in policies driving down inflation. They have pointed out that it is anti-people. It has been argued that the rich are pushing for the policy because they want to carry currency about more easily.

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    This is contrary to the government policy that is promoting digital transactions. The cashless programme introduced in December 2011 by the Jonathan administration has been promoted by successive governments is the way to go. We agree with the cashless policy that has already been embraced by many in the economy.

    Most people in the formal and informal sectors of the economy are now encouraged to promote transactions digitally. In the retail end of the downstream sector of the oil industry, many customers usually opt for the use. Wholesale traders, supermarkets and suppliers of raw materials for manufacturing no longer have to carry cash about.

    This has helped in reducing armed robbery incidents, especially in the urban areas. Break-ins and burglary have drastically reduced, too, because there is little handy to compensate for efforts of the criminals.

    On the contrary, corruption will receive a boost if higher currency notes are introduced. It would be easier to receive millions of Naira gratification without detection. Is this in the interest of the country? No. It will rather nullify efforts by the anti-graft bodies to promote ethical conduct in the country.

    If workers, represented by the Labour movement, and employers of labour in the private sector are united against the move, it is difficult to appreciate where the move is coming from.

    Earlier, when the cashless policy was being introduced, the government had said it was in the public interest since it would assist in the drive to stem corruption in the public sector. So, why should the scheme now be scuttled? A country confronting myriad economic, corruption and security challenges should not help the enemies by introducing such an inimical policy.

  • NELFUND’s landmark

    NELFUND’s landmark

    • Hitting the one million applicants mark is worthy of celebration

    Greeted with scepticism in certain quarters when it was introduced in May 2024, the country’s renewed student loan scheme attracted more than one million applications in less than one year, a striking testimony to its appeal and acceptability.  

    The Nigerian Education Loan Fund (NELFUND), in a statement, announced the achievement of the milestone. Its Managing Director, Akintunde Sawyerr, said crossing the one-million mark “symbolises renewed hope for a generation of Nigerians determined to rise above financial barriers to education.”

    According to the agency, over N116bn has so far been disbursed to students across universities, polytechnics, and colleges of education in Nigeria, covering both institutional charges and upkeep allowances.

    Beneficiaries so far include approximately 400,000 students across more than 100 tertiary institutions nationwide. A significantly higher number of applications came from the northern regions, with states like Kano, Borno, and Benue topping the list.

     President Bola Tinubu, in line with his administration’s Renewed Hope Agenda, signed the Student Loan (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024, into law, in April, last year. Under the law, NELFUND is to provide loans to qualified Nigerian students for tuition fees, charges and upkeep during their studies in approved public tertiary institutions and vocational and skills acquisition establishments in the country.

    The revised Student Loan Act 2024 was created to remove financial barriers and make education more accessible. It is commendably non-discriminatory. The agency emphasised its commitment to ensuring that “every qualified Nigerian student, regardless of background or location, can access education funding with transparency, efficiency, and dignity.” NELFUND stated that disbursements typically occur within 30 days of the approval of successful applications.

    It is noteworthy that the NELFUND scheme, established under the revised 2024 Act, has key features that fundamentally differentiate it from the older, largely unsuccessful student loan boards in Nigeria’s history, the Nigerian Students Loans Board (NSLB) established in 1972 and the Nigerian Education Bank (NEB) Act of 1993.  The differences primarily centre on interest rate, management structure, and loan recovery.

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    The most significant feature of the NELFUND loan is its zero-interest structure, making it a true student-support scheme rather than a commercial debt. Also, NELFUND is established as an independent, data-driven financial body with a dedicated, sustainable funding source, unlike its predecessors which relied heavily on fluctuating government budgets. In addition, the new scheme links repayment to verifiable employment data, which addresses the primary reason for the collapse of past schemes: a failure to recover loans.

    Repayment starts two years after the completion of the mandatory NYSC (National Youth Service Corps). It includes a mandatory 10 percent deduction from the beneficiary’s salary at the source (Pay As You Earn, or PAYE). It also uses a Global Standing Instruction (GSI) mandate on beneficiaries’ bank accounts. However, Sawyerr explained: “If they don’t get jobs for the next 10 years, which is not the plan, then they don’t pay the NELFUND any money.”

    The income-contingent nature of the loan underscores the need for the authorities to improve socio-economic conditions to boost employment – not just for national development, but for the financial viability of their own programme.

     It is crucial to ensure repayment for the continuity of the scheme. The revolving fund principle is essential for the long-term success of NELFUND. Without high recovery rates, the fund cannot be replenished to support future students.

    The Tinubu administration deserves kudos for this remarkable social intervention programme, which is ranked among its most popular initiatives. If the government can overcome the sustainability challenge, the scheme will not only contribute significantly to the country’s development but also demonstrate that personal integrity has not become irrelevant.

  • Not again

    Not again

    •Nigeria’s exit from FATF grey list is good, but it must be sustained

    Nigerians have, perhaps rightly, been celebrating the removal of the country from the grey list of the Financial Action Task Force (FATF) at the institution’s October 24 plenary in Paris, France. To President Bola Tinubu, “The exit from the FATF grey list marks the beginning of a new chapter in the nation’s financial reform agenda as Nigeria will sustain the already institutionalised reforms, deepen institutional collaboration and continue to build a financial system that Nigerians and the world can trust”.

    The Nigerian Financial Intelligence Unit (NFIU), chief executive officer, Hafsat Abubakar Bakari, called the development “a true test of our resilience and unwavering commitment to reform”. She would add that it “signals to the world that Nigeria can meet and exceed global standards in financial integrity.”

    In the same vein, Nigeria’s Minister of State for Finance, Doris Uzoka-Anite, described the exit as not only a ‘bureaucratic achievement or a diplomatic win’, but something of a ‘real change that will touch the lives of every Nigerian; from the small business owner in Lagos to the farmer in Kano, from the trader in Owerri to the student seeking opportunities abroad’.

    Given that the designation, which came into effect in February 2023, had constrained our financial system and limited opportunities for Nigerians seeking opportunities in the global financial ecosystem, the celebrations are certainly in order.

    For, while the designation lasted, it had meant higher compliance costs and increased due diligence requirements for businesses with the net effect of making cross-border transactions more difficult and subject to additional surveillance.

    Yet, while we celebrate the feat, it is important not to lose sight of the factors that led to the designation in the first place.

    It began in 2019 with the FATF Mutual Evaluation Exercise the outcome of which was published in 2021. The results were said to be mixed, thus necessitating the country being put under both the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA)’s Enhanced Follow-up Process and, the FATF International Cooperation Review Group (ICRG) process. The main element was a one-year observation period to implement 84 recommended actions.

    At the close of the observation period, the FATF acknowledged that Nigeria had actually addressed 69 of the 84 actions; but then, it noted that the remaining 15 were considered strategically important to warrant the grey-listing. That was in February 2023.

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    Thus, if the country needed reminding, it is that the designation did not spring up overnight; there was a process that led to it. In the same vein, the path to remediation has also been deliberate and systematic; the culmination of concerted efforts by different agencies of government to address the shortfalls identified in FATF’s recommendations. This is with particular focus on the strengthening of the Anti-Money Laundering (AML)/Countering the Financing of Terrorism (CFT)/Countering Proliferation Financing (CPF) regimes.

    Now that the country has exited the designation, some important lessons would, hopefully, have been learnt along the way.

    One of this must be that the international community has neither the patience nor the tolerance to wait endlessly for us to put our acts together. And that the notion of Nigeria being unfairly designated is, more often than not, baseless; had our officials not chosen to leave those important tasks that they ought to have done – undone, the issue would never have arisen.

    Perhaps the most important of all is that our officials, when challenged, can actually rise to the occasion. We expect the officials to internalise those lessons if only to ensure that nothing will again be taken for granted, going forward.

     For now, their immediate task is ensuring that the country is not allowed to slip back into the practices that brought on the designation.

  • Stranded power

    Stranded power

    •Govt’s priority should now be on getting the 10,000MW involved to the consumers

    Stranded power, in the layman’s language, is simply electricity that is generated but cannot be transmitted or distributed for one reason or the other. In our own case, due to infrastructural deficits in the transmission or distribution lines.

    Minister of Power, Mr Adebayo Adelabu, said that over 10,000 megawatts of such electricity is lying idle in different plants across the country.

    Adedibu, who spoke at the just-concluded Nigeria Energy Conference held in Lagos, said “In Nigeria today, we have over 10 gigawatts of stranded generation capacity. Yes, we have energy being generated or installed all over the country that we are not even using. Generation will not be our immediate problem today, but stable transmission and effective distribution to the household, with full metering.”

    Adedibu, who noted that Nigeria was a wasteful country gave two vivid, jaw-dropping examples of this wastefulness. One of these is at the Aluminium Smelting Company in Akwa Ibom State which hosts about 660MW of electricity that has been stranded for about 20 years!

    “There are power issues because it is not connected to the grid. But that is not the story. The story is that, inside that factory, there is a 540-megawatt turbine for power generation in good condition. They have about six turbines of 90 megawatts each. Each of these turbines has a capacity for an additional 20 megawatts, which is 120 megawatts, plus 540. It is a potential 660 megawatts of power that has been there for the past 20 years.”

    Then, the Port Harcourt Refinery with an 84MW  thermal plant whereas all the refinery requires is 20MW. This means the remaining 60MW is idle.

    Meanwhile, the Port Harcourt Distribution Company (DisCo) nearby is complaining of lack of supply of energy from the national grid!

    So, between the two examples, we have about 720MW of electricity that is stranded!

    Actually, Adelabu did not say anything new. If anything, what he said can be described as an update on the issue. The stranded power has only continued to rise, from about 1,032MW at privatisation in 2013, to 3,742MW after, according to a ‘Vanguard’  report.

    We may not agree with the minister that we have got to the point where we can “show the world that Nigeria has the resources to be a leader in the power sector.” What we know is that we have the capacity to do better. And we should,  with the minister playing a big role in this regard.

    After all, he accepts his involvement in all facets of the power sector. “As minister, I am personally involved in generation, transmission, and distribution. I know where the shoe pinches, and I know the steps we must take,” Adelabu said.

    From the look of things, the immediate focus of the minister and the government should be how to make these stranded megawatts get to the consumer, not necessarily power generation that would ultimately not be beneficial to them.

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    The minister has been candid enough to accept involvement in all segments of the power equation and that he knows “the steps we must take”.

    What remains is for him to take those steps, no matter what they are, to unlock the stranded power. If it requires presidential intervention and or directives to the regulatory and other agencies in charge, he should seek that intervention.

    Ultimately, the buck stops at his desk. If we can say today that there is improvement in the power supply in the country, no matter how incremental, the minister and, by extension, the government, take the credit. Nigerians don’t know any agency. They know the power minister and the government.

    There is no doubt that things would be far better in the power sector if 10,000MW is freed and added to the average 5,000MW that we generate today.

    We urge the state governments and other private investors to take advantage of the new Electricity Act of 2023, which permits them to take active interests in the sector.

    It serves no purpose to have only 5,000MW to distribute whereas double that amount is stranded.