The Nation Newspaper

Category: Editorial

  • Stalled council autonomy

    Stalled council autonomy

    • There’s need for determined steps to get going with Supreme Court order

    Nine months after the Supreme Court gave a verdict affirming the financial autonomy of Nigeria’s 774 local governments, the councils are yet to begin enjoying the fruit of that judgment. Contrary to the order that their share of federally-allocated revenue be paid directly to them, they are still being funded through respective state governments. The major challenge is that they are yet to open accounts with the Central Bank of Nigeria (CBN) through which they can get directly paid.

    The apex court had on July 11, 2024, delivered the landmark judgment by which councils were severed from the apron strings of, and exploitation by state governors. The court ordered the Federal Government to commence direct payment of local government funds to their exclusive accounts and no longer through joint state-local government accounts controlled by state governments.

    Justice Emmanuel Agim, in the lead judgment, ordered that the councils should manage their funds themselves, with the proviso that only democratically-elected local government administrations are entitled to the funds and not caretakers.

    Currently, the revenue allocation formula allots the Federal Government 52.68 percent; states, 26.72 percent; and local governments, 20.60 percent of monthly revenue shared by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) through the Federation Account Allocation Committee (FAAC). But the practice has been that most governors withhold the councils’ share paid through the joint state-local government accounts and only make discretionary disbursement of tokens to the councils, resulting in stifled development at the council level and making councils dependent for their very existence on states.

     The Federal Government in May, last year, through Attorney-General of the Federation (AGF) and Justice Minister Lateef Fagbemi, a Senior Advocate of Nigeria (SAN), sued the 36 governors for alleged mishandling of council funds and sought an order preventing them from arbitrarily dissolving democratically-elected councils. It was this suit that produced the verdict on councils’ financial autonomy.

    Following that judgment, government raised a panel to work out modalities for effecting councils’ autonomy in line with the Supreme Court order. The panel, among others, mandated councils to open accounts with the CBN for direct disbursement of their allocations. Implementation has, however, encountered hurdles that have made it an elusive goal for councils to get their share directly from the federation account, nine months on after the Supreme Court verdict.

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    The hurdles faced in getting local governments to open accounts with the CBN is of three kinds. One is the opposition reportedly being plied by many governors who are holding back from facilitating councils as required. Some governors allegedly warned council chairmen under their jurisdiction against opening such accounts and threatened sanctions if they did, because they were not disposed to losing control over council funds. “Our governor has threatened us (council chairmen) not to open accounts with the CBN for direct payment of our allocation,” a chairman in one of the Southeast states was quoted in media reports saying.

    There are a few governors said to be inclined towards councils in their states opening CBN accounts, and even facilitating them in doing so. The predominant class inclination, however, is to the contrary. Reports said some governors in recent times met with President Bola Ahmed Tinubu and indicated they preferred local governments in their respective domain to open accounts with commercial banks rather than the CBN. What the president responded to them is not known.

    Another hurdle, from indications, is the CBN’s rigorous documentation procedure before opening accounts for the councils. According to reports, Justice Minister Fagbemi and immediate-past Accountant-General of the Federation Oluwatoyin Madein arrow-headed talks on modalities for local governments to open accounts with the regulatory bank, but they faced challenges identifying councils with democratically-elected officials. A council chairman was also cited bemoaning the Central Bank’s demand for submission of a two-month statement of account, which most councils were unable to produce because state governments, and not themselves, had been in control of their financials hitherto.

    Even where the procedures of account opening are under way, there are bottlenecks related to administrative processes like biometric data capturing of likely account signatories. A council official in one of the northern states was reported saying nearly all the necessary steps had been completed except biometric capturing. “The chairmen are currently waiting for the CBN to schedule a date for them to come for biometric data capturing,” the official said.

    Meanwhile, the Federal Government has continued servicing the status quo by paying through the joint accounts, and this has inadvertently constituted another hurdle since it eases pressure on the need for doing it another way.

    Achieving financial autonomy for local governments as mandated by the Supreme Court requires doing things out of the norm. The Central Bank should waive standard procedures involved in account opening and deal in bare essentials to enroll the councils on its clientele. Government could also invoke executive orders as necessary to get going with direct funds disbursements to the councils. It will then be shame on any of governor who stands in the way.

  • Nigeria and Trump’s tariffs

    Nigeria and Trump’s tariffs

    • Nothing to panic about if only we can look more inward

    Like other countries that have been ruing the impact of the unilateral percent tariffs imposed on them by United States president, Donald Trump, Nigeria is reportedly weighing all the options to mitigate the possible negative impact of the levy slammed on her imports by the United States.

    Minister of Finance and Coordinating Minister of the Economy Wale Edun had at the launch of a corporate governance scorecard for government-owned enterprises in Abuja last week stated that members of the economic management team are already re-evaluating national economic assumptions in the light of the new tariff regime. He in particular, had referenced a multi-sectoral economic management team to critically analyse data, revenues, projections, opportunities and weak points in response to the development. The Ministry of Foreign Affairs on its part had stated that the government would consider all possibilities and respond appropriately.

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    These are certainly important steps to take in the current circumstances, even as we already know that a lot happened between then and now. For instance, the levy, initially set at 14 per cent, has since been paused for 90 days in favour of a more modest 10 percent, and with it the indications that things might change as President Trump deems fit. Given that indication, Nigeria, nay the international community, would seem to have neither the luxury to suffer any further illusions about President Trump’s avowed determination to upend the global trade system as the world has come to know it, nor could afford to be indifferent to the developments in a whole new world where the most powerful is wont to exert its might against the weak.

    For Nigeria therefore, the issues at stake aren’t so much about the so-called will to respond as it deems appropriate as much as the nature of the response, given the limited options available to her, to protect its economy and to preserve its interests over the long haul. Yes, we know for a fact that U.S. total goods trade with Nigeria were $9.9 billion in 2024. And that US exports to Nigeria were valued at $4.2 billion, just as imports from Nigeria during the period stood at $5.7 billion. To be sure, the country currently enjoys a trade surplus of $1.5 billion in her favour.

    Moreover, the United States is not necessarily Nigeria’s biggest trading partner. In fact, the top spot actually belongs to the European Union, followed by Asia, particularly India and China, and then the United States and Canada in that order.

     So, Trump’s punitive tariff on Nigeria’s exports, particularly at this time, far from being a death sentence, would seem merely a clarion call on our policy makers to think more strategically and to chart a new path of self-reliance, with an aim on global competitiveness which is essentially two sides of the same coin. For us, the real challenge is to ensure that our products not only meet with global standards in every material particular but are as competitive as can be.

    Put differently, we are saying that tariff or not, the problems that have hobbled our productivity, not least our export development and so have rendered our domestic products uncompetitive globally, actually inhere with us. It lies at the heart of why our grains and other food items are being rejected by the European Union and other countries across the globe. It also explains why countries like China, South Korea and India have chosen rather to see the current challenges as an opportunity at a time the rest of the world is moaning the destructive impacts of the tariffs; it is a lesson on how a country’s export-led growth strategy is not a walk in the park.

  • Nigeria should look to India as blueprint for development

    Nigeria should look to India as blueprint for development

    For decades Nigeria has been stuck in the resource curse while following Western prescribed development models. Looking to India for inspiration might help break the cycle, writes Ademola Oshodi.

    For decades, Nigeria, like many developing African economies, has looked to the West for economic models, financial assistance, and governance frameworks. Yet, despite its abundant natural resources, a youthful population of over 200 million, and its status as one of Africa’s largest economies, Nigeria’s development challenges persist.

    In a rapidly transforming global landscape, it has become imperative for nations to maximise development using pathways that match their own context. Nigeria must look beyond Western models and explore alternative success stories. India’s Jugaad – a philosophy of frugal innovation and creative problem-solving – offers a compelling blueprint for Nigerian development.

    Jugaad underscores notions of grassroots resilience, collaboration, sustainability, local empowerment, inclusivity, and resourcefulness. Building on these, Jugaad provides a framework for addressing Nigeria’s unique challenges while leveraging its strengths. A Nigerian application of Jugaad would prioritise local innovation and grassroots development by maximising the informal sector to propel growth. This approach of exploring “simple” solutions to everyday problems will go a long way in transforming the Nigerian socio-economic landscape.

    Jugaad: A model for resourceful development

    Jugaad is a concept synonymous with frugal innovation. It emphasises doing more with less. It is a mindset of negotiating adversity through creative improvisation and leveraging limited resources to achieve maximum impact. Jugaad’s principles provide a framework for Nigeria where limited resources are confronted with competing developmental needs.

    India, once a struggling post-colonial state like Nigeria, has transformed itself into a global powerhouse in technology, manufacturing, and human capital development. The country has significantly reduced extreme poverty and is projected to become the world’s third-largest economy by 2030. India’s rise demonstrates that development models from the Global South can be effective and potentially more relevant for other emerging economies like Nigeria. Unlike Western economies built on colonial-era wealth, India’s success is rooted in homegrown innovation, digital transformation, and strategic workforce development.

    A shared history yet divergent paths

    Nigeria and India share striking similarities: both are multi-ethnic, multi-religious, and multi-cultural nations with colonial legacies that gained independence from Britain in the mid-20th century. Both nations are regional powerhouses. India is the world’s largest democracy and Nigeria is Africa’s largest. Yet, while India has diversified its economy and built a robust industrial base, Nigeria remains heavily reliant on oil exports, leaving it vulnerable to global price fluctuations. Valuable lessons can be learnt from India’s prioritisation of industrialisation, digital transformation, and entrepreneurship support. India’s economic reforms since the 1990s include liberalising trade, attracting foreign investment and boosting local industries.

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    In the ease of doing business index, India jumped from 142nd position in 2014 to 63rd in 2019. Nigeria meanwhile has witnessed minimal improvements from 140th position in 2014 to 131st position in 2019. Nigeria can replicate India’s success by embracing similar reforms, reducing bureaucratic bottlenecks, and fostering a business-friendly environment.

    Lessons from India’s development journey

    India’s economic shift from agriculture to manufacturing and services has been transformative. Initiatives like Make in India have created industrial corridors and clusters that have boosted sectors such as automobiles, electronics, and pharmaceuticals. India has earned itself the title of “pharmacy of the world”. This was achieved by prioritising generic drug manufacturing over Western patent models. Exports from this sector are projected to reach £272 billion by 2047. The development of the pharmaceutical industry can be attributed to the prioritisation of localised production, heavy investments in R&D, adoption of AI technology, and diversified supply chain sources.

    Nigeria, with its vast resources and youthful population, must prioritise industrialisation to reduce its dependency on oil and create sustainable economic growth. India has managed to maintain a strong agricultural sector through mechanisation, improved irrigation, and modern farming techniques. Nigeria is blessed with vast arable land that can be leveraged to boost food security and reduce import dependency. This can be achieved by adopting similar policies that support smallholder farmers and increase productivity.

    Digital transformation and inclusion are evident in India’s transformational pathway. The Digital India initiative has revolutionised access to technology and financial services. India alone accounts for over 40 per cent of global digital transactions. Nigeria accounts for less than 1 per cent of the global digital payments market value, at an estimated £53.35 billion of a global total of £15.86 trillion. Nigeria can leverage its vibrant tech hubs in Lagos, Abuja, Port Harcourt and other parts of the country to accelerate digital innovation to address challenges like financial inclusion and public service inefficiencies.

    India has managed to leverage its informal sector to spur significant digital inclusion and growth. For instance, its Aadhaar Enabled Payment System (AePS) allows access to financial services especially for individuals without access to traditional banking. While systems like Nigeria’s Opay are driving financial inclusion, the rapid process of India’s AePS can be adapted to maximise Nigeria’s over £1.1 trillion valued informal sector, focusing on underserved rural communities.

    India’s development model tells a story of empowerment through education and the development of local enterprises. The country’s emphasis on STEM education and vocational training has built a skilled workforce. Its support for small and medium-scale enterprises through initiatives like Startup India has spurred entrepreneurship and job creation with India boasting the third largest startup ecosystem globally. Nigeria can replicate this by investing in its own human capital, provide easier access to credit, and reduce regulatory hurdles.

    Beyond adopting the Indian success story, Nigeria and India can build on their existing diplomacy for strategic collaboration. Both countries already share significant economic ties, with bilateral trade valued at approximately £10 billion between 2021 and 2022. Indian companies have invested heavily in Nigeria’s pharmaceuticals, manufacturing, and technology sectors. By deepening this relationship through knowledge transfer, industrial collaboration, and educational exchanges, Nigeria can accelerate its development while maintaining sovereignty. Institutional partnerships between Nigerian and Indian universities can foster technical cooperation in AI, agriculture, and manufacturing. With thousands of Nigerian students already studying in India, joint research and development initiatives can further strengthen ties and drive innovation.

    An alternative path for Nigeria

    India’s development model demonstrates that sustained economic growth is possible without solely depending on Western frameworks.

    Jugaad – rooted in resourcefulness, adaptability, and self-reliance – offers a viable blueprint for Nigeria’s transformation and an opportunity to redefine its development strategy. By learning from India’s experience, Nigeria can unlock its potential and build a prosperous, resilient, and globally competitive economy while building on the principles of equality and sustainability.

    • Oshodi is Senior Special Assistant on Foreign Affairs and Protocol to the President
  • Another carnage

    Another carnage

    • The last spasm of bloodshed in Plateau State calls for eternal vigilance

    In the current ethno-religious crisis in Plateau State, around 52 people have reportedly been killed in some communities including Bokkos and Mangu, and the count seems to be continuing.

    The Plateau State Governor Caleb Muftwang said as follows in respect of the cause of the crisis in an interview on TVC News on April 9, 2025: “What is happening on the Plateau is undeserved. … Why has it been happening? … No one has come forward to tell us exactly why this is happening. But the patterns that have emerged have shown us that this actually is deliberate, it is orchestrated, it is well-planned, and we cannot fathom any reason other than displacement of the people from the land, so that they would vacate the land and leave all the assets that God has deposited there, the arability of the land, the mineral deposits in the land.”

    The Governor continued: “You would discover that there is a lot of illegal mining taking place in the hinterland, and sometimes you want to find out who are the people behind this illegal mining. And it’s difficult to know, because getting access to those places places even the lives of security personnel at risk.” Asked by the anchor whether the aggravation of the crisis was caused by “local perpetrators or local collaborators”, the governor replied: “Yeah, more of local collaborators. … You don’t need more than one or two people in the community to collaborate with those who are coming from outside the community to attack it. … What is apparent is that these attackers are not within that vicinity. They come in from somewhere and unleash their attack and then disappear. … Sometimes, it is worrisome that indigenes are cleaned out, but their neighbours … who aren’t of the same ethnic stock are left.”

    Irrespective of the patterns of and reasons for the crisis in the state, it is worrisome that it is proving intractable, as it has been occurring on a regular, almost predictable pattern for over thirty years now. An important document titled “Timeline of armed conflicts and government responses in Plateau State,” and authored by the Plateau Peace Building Agency which is under the Office of the Executive Governor, Plateau State, has an inventory of around 79 armed conflicts, from April 12, 1994 to November 28, 2021. Of the 79 incidents, 46 were recorded as having taken place in 2021.

    Of these, the 2004 crises stand out, because they were so serious that they attracted the declaration of a state of emergency in Plateau State on May 18. In his declaration of the state of emergency, the president at the time, President Olusegun Obasanjo, said: “As at today, there is nothing on ground and no evidence whatsoever to show that the State Governor has the interest, desire, commitment, credibility and capacity to promote reconciliation, rehabilitation, forgiveness, peace, harmony and stability.  If anything, some of his utterances, his lackadaisical attitude and seeming uneven-handedness over the salient and contending issues present him as not just part of the problem, but also as an instigator and a threat to peace … His personal conduct and unguarded utterances have inflamed passions.”

    Meanwhile, a series of armed conflicts have occurred in the state between 2021 and now, and thousands of people have been killed on both sides. Since the recurring ethnic-cum-religious crises in Plateau State have been having deleterious consequences for both of the contending groups, new templates must be developed and a new trajectory must be found to abate the systematic mutual destruction that the low-intensity warfare has engendered. In other words, Plateau State’s “unending circle of revenge” must be broken.

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    As Goldensstories put it, “The unending cycle of revenge finds its roots in a primal instinct to protect oneself and one’s kin. The pain inflicted by an initial wrong creates a desire for retribution, a sense that justice can only be served by returning harm in kind. Yet, this primal urge often disregards the broader consequences of revenge, leading to the perpetuation of violence and suffering.”

    In the light of the foregoing, in addition to the usual panels of investigation set up after ethno-religious and related crises, it would be invaluable for the Federal Government to set up a high-powered committee consisting of judicial officers,security personnel, representatives of bodies like the Nigeria Inter-Religious Council (NIREC), representatives of programmes in peace and conflict studies in our universities,traditional rulers, the media and other relevant groups. It would also be helpful to set up, at the federal level, a National Peace Agency akin to the Plateau Peace Building Agency.The proposed agency is expected to be more dispassionate in its interventions and be of great value in settling communal disputes in some of the other volatile parts of the Federation.

  • Omololu Olunloyo (1935 – 2025)

    Omololu Olunloyo (1935 – 2025)

    • An exceptionally brilliant mathematician and ex-governor goes home

    His governorship of the old Oyo State, which held promise, was sadly cut short by a military coup in the country after only three months of a four-year term. Prior to his brief governorship from October to December 1983, he had gained extensive and significant government experience, which fuelled expectations of impactful governance after his election.

    He said in an interview that he “qualified eminently” for the position.  “I had been a commissioner in four ministries,” he explained. “I was also chairman of the biggest parastatal, which is now called Odua Group. It was WNDC (Western Nigeria Development Corporation) then. I had been commissioner for economic planning, community development, education, special duties, local government and chieftaincy affairs and education a second time. All these were behind me.”

    Dr Omololu Olunloyo’s death on April 6, at 89, prompted reflection on what might have been if his governorship was not terminated by the military. 

    Appointed commissioner for economic development for the then Western Region in 1962, at 27, he was reappointed to the same position in the then Western State under a military government. His selection for the post under both civilian and military administrations spoke volumes about his standing.

    In 1983, he ran for governor of Oyo State as a member of the National Party of Nigeria (NPN). He defeated the incumbent, the late Chief Bola Ige of the Unity Party of Nigeria (UPN), who unsuccessfully challenged his electoral victory in court. He and his followers had introduced the factor of sub-ethnicity, which worked in his favour. He accused Ige of saying “something to the effect (later confirmed by many) that there was nobody in Ibadan suitable for governorship.” According to him, “That statement spurred the Ibadan people up to get an Ibadan man.” He hailed from Ibadan.

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    Nearly 20 years after a military coup abruptly ended his governorship, he re-entered the gubernatorial race. He was a member of the Peoples Democratic Party (PDP) at the time. In November 2002, he publicly declared his interest in the position, saying, “I am an aspirant simply because the degree of decay and deterioration in nearly all facets of our life needs to be arrested swiftly and efficiently calling for as it does, a seasoned, experienced hand.”  However, he was not chosen as the PDP candidate.

    In 2012, he left the PDP and joined the Action Congress of Nigeria (ACN), which merged with other opposition parties in 2015 to form the All Progressives Congress (APC). This move indicated a shift towards more progressive politics, reflecting a reassessment of his past political alliances. The APC wrested power from the PDP at the federal level in 2015.

    He was widely acknowledged as exceptionally brilliant. Following his secondary education at Government College, Ibadan, he distinguished himself at the University of St Andrews, Scotland, earning a First Class in Mechanical Engineering on a government scholarship. A report remarkably attested to his brilliance: “When he arrived at the university, he requested that they should allow him to start from 2nd year but the Senate declined. It had never been done before. He went to a professor’s house on a rainy day and pleaded that they should give him a test within seven days. The university agreed and gave him a test on Physics, Chemistry and Mathematics. Each test was for three hours. He got 84 in Physics, 88 in Chemistry and 98 in Mathematics. That was how he was allowed to skip year one at the university. So, he started from year two.”

    After his first degree, he proceeded directly to a doctoral programme in Mathematics at the same institution, which he completed in two years, at 25.  He returned to Nigeria after earning his doctorate in 1961 and taught Mathematics at University College, Ibadan. He also had a teaching stint at the then University of Ife, now Obafemi Awolowo University. He was reported saying that four people he taught worked for America’s National Aeronautics and Space Administration (NASA).

    His life demonstrated phenomenal intellectual power and invaluable riches of the mind. 

  • Kanye’s feat

    Kanye’s feat

    • It is time to see his achievement as an opportunity

    We have to go beyond the accolades, even if we shower him with all the praises, and he well deserves it.

    Kanyeyachukwu Otagbo-Okeke is only 15 years old but he is one of the few to hold a world-wide record in the arts. In this case, he has clutched the Guinness Book of Records as a painter on the largest canvas.

    The canvas Kanye painted on was 12,303.87 m² (132,437 ft² 116.85 in²). He beat Emad Salehi. The previous record holder for largest art canvas measured 9,652 m² (103,893 ft² 37 in²). Salehi hails from Qatar.

    He displayed his unprecedented feat at the Eagle Square on April 2, as part of the activities marking the World Autism Day.  Otagbo-Okeke is an autism person, and has demonstrated he can transcend stereotypes and social limitation, and earned his stripes as a global genius.

    “Many thought Kanyeyachukwu’s goal was impossible, but he has proven otherwise,” his father Otagbo-Okeke said. “This is a celebration for children with autism all over the world, showcasing their incredible talents.”

    He has attracted eulogy from the top seat in the country. “You are Brave, Audacious, and Tenacious,” President Bola Tinubu wrote.

    Others acknowledged.

    “It’s not only his achievement but also Nigeria’s” said Hanatu Musawa, Minister of Creative Economy. “Kanye’s record-breaking artwork, ‘Impossible is a Myth,’ is not only an impressive feat but also a beacon of inspiration for autistic children and individuals around the world.”

    Cristian Munduate, UNICEF Nigeria representative, added, “Kanye’s achievement proves that every individual, regardless of ability, has limitless potential. Societies must embrace diversity and create opportunities for all.”

    Otagbo-Okeke has been at this for a long time, but his narrative is not only a lesson in tenacity but also in self-belief. As the winning painting echoes, he is immune to limitation. Hence, he called his painting, “Impossible is a myth.”

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    His story teaches parents and the society at large about diagnoses. According to the father, he was not diagnosed until he was four. But according to experts, he should have been diagnosed at two. Again, the parents said the boy was misdiagnosed a number of times before he learned of his true situation. He said the son evinced a restless habit and had “limited verbal skill.”

    This shows a deficiency in detecting the disability, and the need to enlighten our caregivers. Secondly, parents need to show early awareness as well. He had a mentor who helped him along the way to develop self-belief.

    After trying out multiple extracurricular activities, art and painting seem to appeal to Kanye more than any other engagement.

    He started painting at the age of five, and by eight years old, he was already making waves in the world. He became the youngest recipient of the Flame of Peace award in Austria for spreading peace through his art. He soared over 70 artists who took part. In 2019, he had a solo exhibition at the Terra Kulture Art Gallery, also titled “Impossibility is a Myth.” One of his paintings was featured on the cover page of the Art Vancouver Catalogue in 2022 as well.

    He takes part in a yearly exhibition in partnership with The Hilton Hotel in Abuja. This demonstrates that most persons with disability are not lazy and do have abilities. When he was governor of Nasarawa State, Tanko Al-Makura took part in a parade of the disabled to draw attention to the need to show care for such persons among us.

    There are organisations also set up to help that set of citizens. For instance, the Ebubechukwu Foundation for Persons with Disability is helping with free education.

    Otagbo-Okeke’s achievement may be an avenue for applause, but more for rumination on how we can get more of them to rise.

  • Imperative of paradigm shift

    Imperative of paradigm shift

    • Shake-up at NNPCL promises a new dawn

    When the Petroleum Industry Act (PIA) was signed into law in 2021, it elicited so much hope that better life had come for a sector that has been the cash cow of the economy for decades. However, in the past couple of years, we witnessed some transitional steps towards transparency and efficiency.

    But, the dissolution of the Mele Kyari management team and its replacement by people touted as the best in the land has restored hope of better days ahead. Since the announcement of a new board led by Mr. Bayo Ojulari as group chief executive, supported by Ahmadu Musa Kida as non-executive chairman, professionals at home and abroad have been full of praise for President Bola Tinubu, with many of them describing the move as a masterstroke.

    Mr. Ojulari who hails from Kwara State had worked in some of the major oil multinationals at home and abroad. He was at Shell Nigeria Exploration and Production Company ((SNEPCO) as Managing Director of Nigeria Operations. He had also worked for the company in Europe and the Middle East, and is thereby exposed to the international best practice.

    Before then, he was at ELF. Many believe that his acceptance of the challenge of running the NNPCL must have been driven by patriotic zeal of making an impact rather than pecuniary consideration.

    The new chairman, too, is a thoroughbred professional. An engineering graduate of Ahmadu Bello University (ABU), Zaria, Mr. Kida also worked at Elf Petroleum Nigeria and Total Exploration and Production where he attained the position of deputy managing director.

    As many Nigerians have said, we hope that the new team of directors and management would not brook any political interference that has been the bane of institutional efficiency in NNPCL. The new group chief executive should know that all eyes are on him and his reputation is at stake. It is time for Ojulari and his team to put into practice all that they have learnt in the private sector where managers focus on the bottom line and excuses count for nothing. All the regulatory agencies under the NNPCL Group must be made to sit up and do their jobs according to the law. In the same way that the old board was swept away, anyone who appears to stand in the way of delivering quality service should be shoved aside without sentiment.

    Nigeria has the examples of ARAMCO of Saudi Arabia and PETROBRAS of Brazil to learn from. While they too were established as public institutions, they have transited to profitable companies that are performing creditably. This is all Nigerians want of the new team at NNPCL.

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    It is good that Mr. Ojulari and his team are coming on board at a time that the public-owned refineries are coming alive. As President Bola Tinubu noted in the goals he set for them, the refineries should fully come alive.

     The first task is to set governance core for the group and ensure that the refineries consistently produce refined products. It is imperative to come to a decision as to what to do about running the four refineries. Are they to continue as fully-owned companies by the Federal Government, or cede management to the private sector?  In the alternative, is it about time to sell them off to the private sector, thus raising funds to fix critical infrastructure deficit in the country?

    The new board should meet with critical stakeholders, including the Ministry of Finance Incorporated, the President and others to decide if the plan to sell shares to the public should go ahead in the interest of the people of Nigeria or be aborted at this stage. It must be noted that Nigerians would only support a model that would make the products available at affordable cost.

    It is gratifying that the undue controversy over whether crude should be supplied to the private refineries in the country in dollars or Naira has been put to rest, with the decision of the Federal Executive Council (FEC) that the Naira-for-crude deal should resume henceforth.

    Nigerians deserve the best; the very best. All eyes are on Mr. Ojulari. He has no choice but to deliver on his mandate. He has the wherewithal to do it. He can command the future of oil in this land.

  • Bad example

    Bad example

    •It is unfortunate that many state governments are defaulting in pension remittances

    About 19 years after the National Council of State adopted the Contributory Pension Scheme (CPS), many state governments are yet to key into it. Many others have only partially done so. Only a few of the states have fully complied with the provisions of the Pension Reform Act (PRA) 2014; that is set up the processes and are remitting money into the accounts of the pension fund administrators (PFAs).

    This is regrettable.

    The PRA mandates CPS for all public sector employees, including those in the Federal Capital Territory (FCT), states, and local governments, as well as the private sector. State governments however are at liberty to domesticate the CPS by enacting appropriate laws within their jurisdictions.

    The act further requires the state governments to establish pension bureau, register employees with PFAs and then begin to remit pension contributions. In addition, they must conduct actuarial valuation, fund accrued pension rights, procure group life insurance for employees, and open a retirement benefits bond redemption fund account with the Central Bank of Nigeria (CBN) or a PFA.

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    It is regrettable that many state governments are in default of these provisions.

    Only Lagos, Osun, Kaduna, Ekiti, Edo, Ondo, Delta, Benue and Anambra, as well as the Federal Capital Territory (FCT) are operating the CPS. Jigawa, however, operates under the old  Contributory Defined Benefits Scheme (CDBS).

    Other states like Abia, Adamawa, Bauchi, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ogun, Oyo, Rivers, Sokoto, Taraba, and Zamfara, have enacted CPS laws but are yet to fully implement the scheme. This is only partial compliance with the act, which, to the extent that it cannot translate into pension payment to the public retirees in the states, amount to nothing.

    They are not better than the other states that are yet to commence the implementation of the CPS. These include Akwa Ibom, Borno, Kwara, Plateau, Cross River, and Yobe.

    Governments, whether at the local, state or federal level, are supposed to be exemplars of rule of law and adherence to due process. That many state governments are showing this example in reverse calls for concern. And they are doing this because no one is compelling them to do so by enforcing the laws against them.

    It is easier to get the private sector to toe the line because sanctions are being applied against them. Is it possible to deduct the pension at source from the defaulting state governments’ allocation? If not, stakeholders should begin to think out of the box to compel defaulting states to pay.

    Pension is a crucial part of workers’ benefits. It enhances their productivity by giving them an assurance of some financial respite in retirement, as well as check stealing of public funds. Why would workers want to steal when they know that they have something to fall back on after their active years in service?

    Yet, successive governments have been carrying out pension reforms, ostensibly to ensure that workers look forward to a stress-free retirement. Unfortunately, people and sometimes government itself have always frustrated the outcome of the reforms.

    It is sad that political office holders ensure their own final entitlements are paid as they are leaving, and, in spite of their short tenures; whereas those who served in various capacities for decades are left to their own device after retiring from service.

    We join the National Pension Commission (PenCom) in commending the state governments that have fully keyed into the CPS and enjoin those that have only partially done so, or are yet to do so, to join without further delay.

    We seem to be experiencing less numbers of retirees slumping to death during unending pension payment verification exercises. But a situation where people who served the country meritoriously for decades are denied their pension kills such retirees silently in instalment.

  • Better late than never

    Better late than never

    • It is good that, at last, we now have a law to deal with Ponzi scheme operators

    In plain terms, Ponzi Scheme is described as “an investment fraud that pays existing investors with funds from new investors”. The organisers are adept at false promises. They often promise to invest someone’s money and or to generate high returns (sometimes unrealistically high amounts) with insignificant or no risks at all. Financial analysts have discovered that, ‘the money is never invested; rather, the scam artists concentrate on attracting more investors. A growing number of victims is needed to pay out the supposed ‘profits’ being distributed to earlier investors’.

    Several Ponzi scheme operators have seemingly had a field day in Nigeria, with a huge number of victims. Operating with very opaque guidelines and some incredibly exaggerated ease of returns, their victims have often turned out as financial ‘Alice in wonderland’. The illusion of easy riches is often the driving force of most victims. Luckily for the Nigerian operators, before now, there were no strict deterrent laws that held the scammers to account.

    It is interesting to note that the Ponzi scheme has its origin in the early 20th century America from a ‘swindler’, Charles Ponzi, who duped his way into becoming a millionaire through postal fraud couched as ‘investment opportunity’. Because he operated in a structured system, he was caught and prosecuted, and served time in federal prison.

    Despite his fate, some other fraudsters inherited the dubious scheme and it’s seemingly common in many countries, especially the developing countries like Nigeria with very weak systems, poor and often very financially uninformed population ready to skip formalities of the financial world to harvest effortless profits. A lot of otherwise investible capital had gone to waste through these schemes and the effect is the planting of distrust even in genuinely credible financial institutions like the Securities and Exchange Commission (SEC).

    We commend SEC that has pushed for a new law that can rein in “the promoters and operators of entities engaged in the prohibited scheme who are now liable to a penalty of not less than N20 million or imprisonment for a term of 10 years or both”. The Director-General of SEC, Emomotimi Agama, said it is one of the provisions of the newly signed Investments and Securities Act 2025 signed by President Bola Tinubu recently. He said the new act would strengthen the legal framework governing Nigeria’s capital market.

    However, we are disappointed that one of the most vibrant and consequential SECs in Africa previously lacked the legal power to prosecute Ponzi scheme operators, which had made it difficult to bring offenders to justice. Agama said “the act would help the commission to better protect investors and introduce reforms that would promote market integrity, transparency, and sustainable growth”.

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    We commend the fact that there are additional punishments beyond the ones expressly stated in the act for both capital and non-capital market promoters or operators implicated in the prohibited scheme. This might just be the first definitive step being taken against a scheme that has had a litany of atrocities in the economic sector in a country that is hungry for development.

    No economy develops or attracts investor-confidence without laws that can guarantee discipline and order, especially in the very volatile financial sector. The fact that many of the Ponzi scheme operators defrauded people and were never held accountable not only proliferated the scheme in the country, it negatively impacted the economy. Much hard-earned money went down the drain without contributing to the economy. Many victims either went into depression or became economically lame due to the loss of their ‘investment’.

    The government must learn from this tragic scheme and be more proactive, not just in policy formulation but in making sure that laws and guidelines are strictly implemented. The only deterrent is when potential scammers realise that they would be caught and prosecuted even before they profit from their scam.

    On the other hand, the media must put more effort in investigative journalism. A Boston Post in the United States was the waterloo of Charles Ponzi. The Nigeria media must take a cue while government acts swiftly too.

  • Baro Port

    Baro Port

    • Another example of a Nigerian project prematurely commissioned

    It is inexplicable and inexcusable that the Baro Port in Niger State, commissioned in 2019 by former President Muhammadu Buhari, has remained non-functional ever since, with its multi-billion Naira facilities wasting away. Conceived by the administration of the late President Umaru Yar’Adua, the port was designed to reduce the dependence on articulated trucks for transporting goods from the South to the North, thus saving lives from the high rate of road accidents while also lessening pressure on the roads, thereby guaranteeing their longevity. Activities at the port would no doubt have also generated employment and stimulated the economy of the North for greater prosperity at a time the region is in the throes of acute dysfunctional and destabilising poverty.

    The question is, why should the facility have been commissioned in the first place if all the accessories necessary to make it operational had not been completed? For, a report in LEADERSHIP newspaper indicated that the port has remained dormant partly due to the non-availability of an access road and the inability of ships to reach it as a result of shallow water levels. Were those who authorised the commissioning of the project unaware that it could not have been said to be ready for use if inaccessible by road and its water route impassable for vessels? Unfortunately, this is only one of several projects across the country commissioned by governments at different levels, but abandoned because they were essentially uncompleted.

    This results in an unacceptable level of wastage of resources in a country that is struggling to generate the requisite finances to meet its huge developmental challenges. For instance, the Baro Port is reported to have been awarded at a cost of N3.9 billion and completed with about N12 billion. When the cost of dredging six lots of the River Niger up to Baro put at N9 billion per lot is taken into consideration, a total of over N66 billion was expended on the project. With the port lying dormant for about six years since its commissioning, most of the extensive facilities provided for its operation would inevitably have begun to deteriorate and decay, necessitating repair or replacement, thus consuming even more resources.

    Some of the facilities lying idle at the port are thousands of 20-foot containers, a transit shed of 3,600 metres, a cargo stacking yard of 7,000 square metres, a quay length of 150 metres, a water hydrant system, a water treatment plant, a 100 KVA generating set, tree forklifts of diverse capacities as well as several landing sites, warehouse and administrative buildings.

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    To stop further degeneration of these facilities and limiting the cost of resuscitating and putting them in shape for use, we call on the present administration to urgently make the completion and functioning of the port a priority. It is disturbing in this regard that a senator from Niger State was quoted as saying that there were no provisions for the port in this year’s budget. If so, such an inexplicable oversight should be immediately remedied.

    Among the suggestions made to make the port operational are the rehabilitation of the road from Agaie through Katcha to Baro and the rain track from Baro through Gulu to Abuja, as well as the dredging of the River Niger from the Delta to Baro to enable the use of flat-bottomed ships to convey containers from the main ports to Baro Inland Port. The work that remains to be done for the port to come to life is thus extensive and the earlier this is commenced, the better. This is particularly so as the inhabitants of the communities in the area have lost their farmlands and fishing grounds to the construction of the project and the once thriving agriculture and fishing populations reduced to despair and destitution.