The Nation Newspaper

Category: Issues

  • Team Nigeria’s poor run at the Paris 2024 Olympics

    Team Nigeria’s poor run at the Paris 2024 Olympics

    • Failure at the Paris 2024 Olympics highlights the urgent need for systemic reforms in sports administration, investment in facilities and grassroots development to turn future potential into podium success

    As the Paris 2024 Olympics draw to a close, Team Nigeria’s performance stands as a stark reminder of the challenges and complexities faced by sports teams from developing nations. The initial excitement and optimism surrounding Nigeria’s athletes have been tempered by a reality check as the Games concluded with dashed hopes and unmet expectations.

    For months leading up to the Olympics, Nigeria was abuzz with anticipation. Athletes and fans alike harboured dreams of medals and podium finishes, driven by the promise of success that often accompanies Olympic preparation. The country’s preparation included rigorous training, strategic planning, and substantial investments aimed at fostering a winning spirit. Yet, despite these efforts, Team Nigeria’s journey in Paris was marred by a series of setbacks that have left many questioning what went wrong. One of the most glaring issues has been the lack of podium finishes in key sports where Nigeria has traditionally excelled. In athletics, which has historically been a stronghold for the nation, the performances fell short of expectations. Sprinters, who once brought glory to Nigeria with their speed and tenacity, failed to deliver the results that had been hoped for. Similarly, in field events, athletes struggled to break through to the finals, let alone secure medals.

    While Paris 2024 may seem like one of Nigeria’s worst performances in recent years, following the medal-less result at London 2012, this failure is particularly striking given the N12 billion commitment by President Tinubu’s government for the Olympics and the upcoming Paralympics. As Minister of Sports Development, Senator John Owan Enoh, highlighted, “We have no excuse to fail,” emphasising the expectation for athletes to deliver on the significant investment and goodwill provided. “The President has approved the entire budget, and it is now up to us to reciprocate this goodwill by making the country proud. Expectations are high, and I have faith in the abilities of our athletes.”

    Between failure and success

    The failure to achieve medal-winning performances in these disciplines underscores a broader issue within Nigeria’s sporting framework. For years, there has been an ongoing discussion about the need for systemic reforms in sports administration, funding, and infrastructure. The disparity between the well-resourced training environments of competing nations and Nigeria’s often inadequate facilities is glaring. While countries with advanced sports programmes benefit from state-of-the-art training facilities, Nigerian athletes frequently contend with suboptimal conditions and limited resources.

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    Furthermore, the issue of internal discord and mismanagement within Nigeria’s sports bodies has also been a contributing factor. Reports of administrative inefficiencies, lack of clear direction, and inadequate support structures have plagued the preparation phases of the athletes. These challenges have often led to a lack of cohesion and focus, impacting performance at the international level.

    Team Nigeria’s experience at Paris 2024 also highlights a critical need for investment in grassroots sports development. While elite athletes receive significant attention and resources, many potential talents are lost due to a lack of proper nurturing and support at the grassroots level. A comprehensive approach that includes scouting, training, and development from a young age is crucial to building a robust pipeline of athletes who can compete and succeed on the world stage.

    Team Nigeria’s performance at the Paris 2024 Olympics was a stark disappointment, echoing the underwhelming results from London 2012, despite significant investments, including the N12 billion committed by President Tinubu’s government for the Games and the upcoming Paralympics. The athletes’ struggles were evident across all fronts—from the football field, where the Super Falcons, nine-time African champions, failed to win a single preliminary match, to athletics, where Tobi Amusan, the world 100m hurdles record holder, did not even qualify for the finals. Although there were moments of pride, such as the D’Tigress becoming the first African team to reach the quarter-finals of the Olympic Basketball Tournament, and notable performances by badminton player Anuoluwapo Opeyori and long jumpers Ese Brume, Ruth Usoro, and Prestina Ochonogor—who made history by reaching the finals—these were overshadowed by numerous setbacks.

    Favour Ofili’s exclusion from the 100m event due to administrative errors and Samuel Ogazi’s breakthrough in the 400m final were among the rare bright spots. However, traditional strongholds like boxing and wrestling were marked by disappointment, with boxing plagued by doping issues and wrestling failing to secure any medals. Table tennis, weightlifting, canoeing, taekwondo, and cycling also yielded no medals, underscoring a pervasive sense of missed opportunity and underperformance throughout the 17-day event.

    Our preparation for the Paris 2024 Olympics clearly fell short of the required standard, despite last-minute efforts by the Ministry of Sports Development under Senator John Owan Enoh. While it is tempting to criticise the minister for Team Nigeria’s poor performance, it’s important to note that he has only been in office for a year and was grappling with a deeply entrenched, chaotic system. The Olympics operates on a four-year cycle, but our approach has often been outdated and disorganised. Since Tokyo 2020, there has been no significant effort to overhaul this process, with most sporting federations only focusing on immediate competition preparation rather than long-term athlete development, as seen in other countries.

    The Ministry’s approach to Paris 2024 mirrored this outdated and reactive strategy. For example, the Super Falcons had a rushed two-week training stint in Sevilla before their opening match against Brazil, which they lost, while other athletes experienced similar issues with training being more symbolic than substantive.

    While some may view the Paris 2024 Olympics as a poor return on investment, the President Tinubu-led government deserves praise for approving the N12 billion budget for both the Olympics and Paralympics. Senator John Owan Enoh and his team also merit recognition for clearing all allowances due to athletes, including grants for both foreign-based and, for the first time, locally-based competitors. However, the Paris 2024 debacle highlights the need for a more systematic and strategic approach to sports funding. To compete effectively on the global stage, we must adopt the proven methods of successful sports nations like the USA, China, and Jamaica, and even learn from our African peers. Without such reform, our sports will continue to lag behind, as evidenced by our underwhelming performances at events like the Olympics and Commonwealth Games since hosting COJA in 2003.

    Countdown to Los Angeles 2028

    As one commentator pointed out, perhaps it is for the best that Team Nigeria ended the Paris 2024 campaign empty-handed, as it provides a stark opportunity to reset sports administration, which has long been marred by incompetence and mediocrity, in preparation for the 2028 Games in Los Angeles. The talent among Nigerian athletes is undeniable, as evidenced by their remarkable performances for other countries: Yemisi Ogunleye secured gold in shot put for Germany, Annette Echokunwoke, who switched allegiance from Nigeria to Team USA, won silver in the Hammer throw, Salwa Eid Naser (formerly Ebelechukwu Agbapuonwu) earned silver in the 400m for Bahrain, and Samu Omoridion (Spain) and Michael Olise (France) won gold and silver medals in soccer with their adopted nations.

    This should serve as a wake-up call that with modern facilities, competent trainers, and dedicated administrators, Nigerian athletes have the potential to excel at the Olympics, embodying the Games’ motto of “Faster, Stronger, Higher.” If we do not address the systemic issues that have long plagued Nigerian sports, we risk even greater embarrassment when the Olympics returns to the USA, where our most notable achievements include Africa’s first soccer gold medal and Chioma Ajunwa’s long jump gold at the Atlanta 1996 Games, along with three bronze medals.

    The emotional toll of unmet expectations cannot be overlooked. Athletes who have dedicated years of their lives to training and competing feel the weight of their nation’s hopes on their shoulders. The sense of disappointment is palpable, not only for the athletes but also for the supporters who believed in their potential. As the dust settles on the Paris Games, there are lessons to be learned from Team Nigeria’s experience. It is clear that while individual talent and effort are essential, they must be supported by a strong, coherent system that addresses the multifaceted needs of athletes. Comprehensive reforms in sports administration, increased investment in facilities, and a commitment to grassroots development are imperative to turn the tide for Nigerian sports.

    The hope for future Olympic success lies in addressing these systemic issues and ensuring that Nigeria’s athletes are equipped with the tools and support necessary to compete at the highest level. Only through a united and strategic approach can Team Nigeria hope to transform dashed hopes into future triumphs on the global stage.

    Finally, now is not the time to demand the resignation of the Minister of Sports Development, Senator Enoh, as some critics suggest; he has shown leadership, and improvements are possible under his guidance. The Paris 2024 Games present an opportunity for him to reform our sporting system—from administration to facilities and training—though it remains to be seen if we will embrace this chance for meaningful change.

  • Samoa agreement and media responsibility to truth

    Samoa agreement and media responsibility to truth

    • Contrary to reports in some media outlets, the new Samoa Agreement recently signed by Nigeria contains no LGBT clauses

    The recent friction between the Nigerian government and one of the country’s leading newspapers, Daily Trust, has sent ripples through the media and political landscape. The controversy centres on the Samoa Agreement, an obscure but evidently significant international arrangement, which Daily Trust reported on in a manner the government claims is misleading and damaging. This development raises pertinent questions about press freedom, government transparency and the role of the media in a democratic society.

    The Samoa Agreement, while not widely known to the general public, involves international cooperation in areas such as climate change, sustainable development, and trade. Signed by a coalition of countries including Nigeria, it aims to foster collaboration in tackling global challenges. The Samoa Agreement, formally known as the Samoa Natural Resource Management and Trade Agreement (SNRMTA), was established to create a framework for the sustainable management and equitable distribution of natural resources among its signatories. The agreement’s primary objectives include promoting environmental conservation, ensuring fair trade practices, and fostering international cooperation in resource management. While the intentions behind the Samoa Agreement are commendable, its implementation has been fraught with challenges and controversies.

    Daily Trust published a piece alleging that the Nigerian government’s involvement in the Samoa Agreement could have far-reaching negative implications for the country’s sovereignty and economic independence. The report suggested that certain clauses in the agreement might compel Nigeria to make concessions detrimental to its national interests, particularly in areas of environmental regulation and trade policies. The article quoted anonymous sources within the government and international bodies, insinuating that the agreement was pushed through with little public consultation or parliamentary scrutiny. Daily Trust’s tone was unequivocally critical, painting a picture of a government potentially compromising national interests in the guise of international cooperation. In response, the Nigerian government issued a stern rebuttal, accusing Daily Trust of misrepresentation and sensationalism. The government asserted that the Samoa Agreement is a benign and beneficial accord aimed at enhancing Nigeria’s participation in global initiatives addressing climate change and sustainable development.

    The Minister of Information and National Orientation, Mohammed Idris, led the charge, condemning the article as “reckless journalism” that could harm Nigeria’s international standing and investor confidence. He emphasised that the government had followed all due processes in signing the agreement and that the claims made by Daily Trust were unfounded and malicious.

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    At a press conference in Abuja last Saturday, Idris said the Federal Government under President Bola Ahmed Tinubu has maintained an open arm relationship with the media. It is in line with the philosophy of the President as an avowed democrat who spent a lifetime fighting for the entrenchment of democracy and human rights.

    “This administration has remained very tolerant of media criticism and guaranteed citizens’ rights to freedom of expression.

    “It is, however, disheartening that some elements are abusing this free environment guaranteed by the government. We are alarmed by the level of reckless reporting and statements by some media organisations and individuals that border on national security and stability.

    “While we sometimes view and treat those occasional reporting as part of media’s normal work, we have now seen a pattern that is difficult to be wished away as normal journalism. The insidious and inciting publications by the Daily Trust these past months have come across as nothing but a deliberate effort to brush the government with a tar. On many occasions we have restrained ourselves from believing that this was the case but the consistency of the jejune and mischievous publications leaves us with no option.

    “In the aftermath of the coup in Niger Republic, Daily Trust championed a jaundiced narrative that the Federal Government was driving the country into a war and twisted it with regional sentiment to cause disaffection. The same newspaper gave a banner headline to a baseless accusation that the Government was working on citing foreign military bases in the country. Neither Daily Trust nor originators of that imaginative allegation provided any shred of evidence.

    “Then, just two weeks ago, Daily Trust concocted and popularised a lie that the Federal Government had renamed the Murtala Mohammed Expressway in Abuja to Wole Soyinka Way. In all those instances all that the paper depended on were falsehood and hearsays. They also showed no remorse or the humility to recant.

    “We, however, did not envisage that Daily Trust and people behind it could descend to the reckless level of attempting to set the country on fire by falsely accusing the government of signing a deal to promote LGBTQ. We found that despicable and wicked because the allegation is nowhere in the document signed. Surprisingly, the paper put forward no evidence nor provided the agreement allegedly signed to prove their point.

    “The baseless and sensational story unfortunately formed a basis for khutba (sermons) by some of our respected imams who were misled by the story thereby raising tempers. On the part of the Government, we continue on the honourable path of civility by restraining ourselves from taking self-help or draconian measures. While past governments clamped down on the media for infractions much lower than this, we are, however, toeing the path of civility and the rule of law.

    “But, beyond this, the Federal Government is lodging a formal complaint to the NPAN Ombudsman on this irresponsible reporting. In addition, the Federal Government will use every lawful means to seek redress in the court of law. The Federal Government once again restates its friendly policy towards ethical media and free speech. We would however not take fake news and disinformation that would injure the peace of our country and its national security lightly,” he said.

    After fact-checking the Samoa Agreement signed by Nigeria, Premium Times found that the Daily Trust’s report, which was based on an opinion article by Lagos-based lawyer Sonnie Ekwowusi, was amplified by other news platforms such as BusinessDay, Vanguard and TheCable. These reports sparked a backlash against the Federal Government; with critics accusing it of compromising the country’s moral values in exchange for Western loans.

    Premium Times’ review of the 172-page document revealed that Ekwowusi’s claims, which formed the basis of the newspaper’s report, were false. Specifically, the lawyer misinterpreted Article 29.5, which states, “The Parties shall support universal access to sexual and reproductive health commodities and healthcare services, including for family planning, information and education, and the integration of reproductive health into national strategies and programmes.” Contrary to the lawyer’s assertions and the amplified media reports, there is no mention of LGBTQ issues in this article.

    The reviewed document and EU press statements clarify that the Samoa Agreement focuses on addressing global challenges. Its objectives include contributing to the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement under the UN Framework Convention on Climate Change. In conclusion, Premium Times found that there are no LGBTQ clauses in the Samoa Agreement recently signed by Nigeria. The Daily Trust report failed to present any clause in the agreement that mandates LGBTQ rights, relying instead on the opinion of Mr. Ekwowusi. This was despite the administrative secretary of the NSCIA stating that the council did not find any mention of same-sex marriage in the draft shared by the government before signing the agreement.

    Also, in his analysis of the controversies surrounding the Samoa Agreement, Farooq A. Kperogi criticised the Daily Trust for its journalistic shortcomings. Kperogi pointed out that the newspaper failed to cite the specific portion of the agreement mandating Nigeria to change its laws to accommodate LGBTQ-friendly policies. Instead, it based its headline and entire story on an unnamed report without providing evidence from the report itself. The paper then sought out individuals who would express outrage over this unverified information, thereby creating a self-reinforcing loop of misinformation, Kperogi explained in his column.

    According to Kperogi, the Daily Trust’s actions exemplify circular reporting.

    “Circular reporting, also known as false confirmation, occurs when a source fabricates a piece of information, disseminates it through multiple sources via interviews, and then presents the views of the interviewees as the original source of the information. Essentially, it involves creating something from nothing,” he wrote.

    Press freedom and democratic values

    This episode has sparked a broader debate about the state of press freedom in Nigeria. The country’s media landscape is vibrant but has often faced challenges, including censorship, harassment of journalists, and financial constraints. The threat to sue Daily Trust could be interpreted as an attempt to intimidate the press and stifle critical reporting, which is essential for holding the government accountable. Civil society organisations and international press freedom advocates have voiced concerns. They argue that while responsible journalism is crucial, the government’s approach could lead to a chilling effect where media outlets self-censor to avoid legal repercussions. This, they warn, undermines democratic values and the public’s right to be informed about governmental actions.

    The broader implications

    The media’s handling of the Samoa Agreement has broader implications for democracy, governance, and informed citizenship in Nigeria. A well-informed citizenry is essential for the functioning of a healthy democracy. When citizens have access to accurate and balanced information, they can make informed decisions, hold their leaders accountable, and participate meaningfully in public discourse. The media’s role in providing this information is thus integral to democratic governance.

    The government’s threat to sue Daily Trust marks a significant escalation in the dispute. Legal experts and media watchdogs are closely monitoring the situation, as it touches upon critical issues of press freedom and the legal boundaries of journalism in Nigeria. Should the government proceed with a lawsuit, it would set a precedent in how the state interacts with the media over contentious reporting.

    Public trust in the media is crucial for its effectiveness. When the media consistently demonstrates a commitment to truth and transparency, it earns the trust of the public. Conversely, biased or inaccurate reporting can erode this trust, leading to scepticisms and disengagement. Trustworthy media can bridge the gap between the government and the people, fostering a more cohesive society.

    The media’s influence extends to policy and governance. By highlighting issues related to the Samoa Agreement, the media can shape public opinion and pressure policymakers to act in the public’s interest. Investigative journalism, in particular, can expose corruption and malpractice, prompting reforms and accountability. In a diverse and pluralistic society such as Nigeria, the media has a role in promoting social cohesion. By providing a platform for diverse voices and facilitating constructive dialogue, the media can help bridge divides and foster a sense of national unity. This is especially important when addressing contentious issues like the Samoa Agreement, where different regions and communities may have varying perspectives.

    It is essential for the media to adhere to high standards of accuracy and fairness. However, when discrepancies or disputes arise, dialogue and corrective measures, rather than punitive actions, should be the preferred route. This ensures a balanced approach where the media remains robust and free, yet responsible.

  • A shot in the arm for the economy with N1tr

    A shot in the arm for the economy with N1tr

    HIGHLIGHTS

    • Key components include granting N50,000 to 100,000 families per state for three months.
    • Allocation of N155 billion for assorted foods and N540 billion for household grants.
    • Each state and the FCT to receive N10 billion for CNG buses, totaling over N1 trillion in interventions.
    • Sokoto-Badagry Highway spanning key states crucial for agricultural sustainability.
    • Ongoing Lagos-Calabar Coastal Highway and Trans-Saharan Highway to link major regions.
    • Full counterpart financing approved for Port Harcourt-Maiduguri Railway and Ibadan-Abuja segment of Lagos-Kano Standard-Gauge Railway.
    • Focus on enhancing agricultural productivity and economic growth through strategic infrastructure investments.
    • Focus on immediate economic relief and sectoral growth via National Construction and Household Support Programme.
    • The immediate rollout of the National Construction and Household Support Programme across all geopolitical zones will deliver quick economic relief by catalysing opportunities in agriculture, manufacturing and construction sectors, fostering economic growth nationwide

    President Bola Tinubu delivered a message of swift economic relief to Nigerians during his unveiling of plans at the 142nd National Economic Council meeting in Abuja last Thursday. His strategy centres on two key initiatives: the National Construction and Household Support Programme. This ambitious plan includes granting N50,000 to 100,000 families per state for three months, allocating N155 billion for assorted foods, and providing N540 billion in household grants. Additionally, each of the 36 states and the Federal Capital Territory will receive N10 billion for CNG buses. These measures, totalling over N1 trillion, underscore Tinubu’s commitment to alleviating hardship and boosting food production, urging state governors to collaborate towards this goal.

    “We must deliver on our targets at all levels. There is nothing we are doing that is more important than producing high-quality food for our people to consume, buy and sell. We create jobs in the production of it. And that is before we generate wealth by exporting the excess. It is not beyond us to achieve this for Nigerians,” he said, urging state governors to support his vision.

    President Tinubu’s new plan responds to severe economic challenges gripping the nation. With inflation soaring to 27% year-on-year as of October 2023 due to fuel subsidy removal and exchange rate depreciation, the cost-of-living crisis has worsened, heightening food insecurity and making essentials unaffordable for many Nigerians. At the recent NEC meeting, Tinubu unveiled initiatives aimed at enhancing agricultural productivity and bolstering the economy through opportunities in agriculture, manufacturing, and construction. Central to this strategy is the swift implementation of the National Construction and Household Support Programme across all geopolitical zones, aimed at providing urgent economic relief to Nigerians.

    “Under the programme, the Sokoto-Badagry Highway, which will traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, is prioritised,” according to a statement signed by the President’s Special Adviser on Media and Publicity, Mr Ajuri Ngelale. The programme also places emphasis on several key road infrastructure projects, including the ongoing Lagos-Calabar Coastal Highway and the Trans-Saharan Highway, connecting Enugu, Abakaliki, Ogoja, Benue, Kogi, Nasarawa, and Abuja. President Tinubu further approved full counterpart financing for the Port Harcourt-Maiduguri Railway, spanning Rivers, Abia, Enugu, Benue, Nasarawa, Plateau, Bauchi, Gombe, Yobe, and Borno, as well as for the Ibadan-Abuja segment of the Lagos-Kano Standard-Gauge Railway, passing through Lagos, Ogun, Oyo, Osun, Kwara, Niger, Abuja, Kaduna, and Kano. Ngelale emphasised that the Sokoto-Badagry road project holds special significance, stating, “Some of the states it traverses are crucial for the agricultural sustainability of the nation.”

    Explaining the rationale for the project, the Presidency said, “Within the Sokoto-Badagry Highway corridor, there are 216 agricultural communities, 58 large and medium dams spread across six states, seven Special Agro-Industrial Processing Zones, 156 local government areas, 39 commercial cities and towns, and over 1 million hectares of arable land. Other items under the National Construction and Household Support Programme include one-off allocation to states and the Federal Capital Territory of N10bn for the procurement of buses and CNG uplift programme.

    Over the past thirteen months, President Tinubu has diligently pursued these principles, with a particular focus on economic remodelling. The implementation of these policies has not been without challenges, as unforeseen outcomes have sometimes necessitated emergency interventions. From July 2023 to today, the President has introduced various measures aimed at mitigating the impact of inflation on the population, striving to ensure that Nigerians can meet their needs and sustain their livelihoods. These interventions  have been carefully considered, taking into account the  economic conditions preceding the new reforms.

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    For instance, on July 31, 2023, President Tinubu announced a range of socio-economic interventions targeting various segments of society to alleviate the harsh economic conditions. These interventions included a N75 billion loan scheme for 75 businesses at a 9% interest rate, N125 billion allocated for micro, small and medium-sized enterprises (MSMEs) and nano businesses, and N200 billion earmarked for agricultural development, including the cultivation of 500,000 hectares of farmland. Additional measures included N100 billion for the provision of 3,000 CNG-powered buses, a plan to establish a new national minimum wage, and investments in critical infrastructure and social programs.

    Between the July intervention and today, several other plans have been announced, with the latest unveiled just last Thursday, June 27. This new plan is equally ambitious, if not more so, than previous initiatives. It focuses not only on helping individuals and families meet their basic needs, such as food and essentials, but also includes comprehensive plans for major infrastructure development across the country.

    Household Support Programme

    According to Ngelale, this branch of the National Construction and Household Support Programme includes: A one-off allocation of ₦10 billion to states and the Federal Capital Territory for the procurement of buses and the CNG uplift programme. A delivery of ₦50,000 uplift grants to 100,000 families per state for three months. Provisions for labour unions and civil society organisations.  Deployment of ₦155 billion for the purchase and distribution of assorted foodstuffs nationwide. This four-item initiative focuses on providing palliatives to citizens, both individuals and families.

    The programme aims to ease commuting, particularly in the Federal Capital Territory (FCT), by funding the acquisition of buses and promoting CNG usage. Financial support of ₦150,000 will be provided to each of the 100,000 beneficiary families over three months. The interests of Nigerian workers are also addressed with specific provisions for labor unions and civil society organisations. To directly combat food inflation until the agricultural sector interventions begin yielding results, the Household Support Programme has earmarked ₦155 billion for the procurement and nationwide distribution of assorted food items, enhancing the current market supplies.

    The Construction Programme

    There are three major projects under this wing of the plan: The Sokoto-Badagry Highway; Lagos-Calabar Coastal Highway; and Trans-Saharan Highway. Disclosing these in his statement, Ngelale said, “Under the programme, the Sokoto-Badagry Highway, which will traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, is prioritized. Other road infrastructure projects, such as the Lagos-Calabar Coastal Highway, which is underway, and the Trans-Saharan Highway, which links Enugu, Abakaliki, Ogoja, Benue, Kogi, Nasarawa, and Abuja, are also prioritised.

    “The President has also approved full counterpart financing for the Port Harcourt-Maiduguri Railway, which will traverse Rivers, Abia, Enugu, Benue, Nasarawa, Plateau, Bauchi, Gombe, Yobe, and Borno, as well as for the Ibadan-Abuja segment of the Lagos-Kano Standard-Gauge Railway, which will traverse Lagos, Ogun, Oyo, Osun, Kwara, Niger, Abuja, Kaduna, and Kano. The Sokoto-Badagry road project is specially prioritized for its importance, as some of the states it will traverse are strategic to the nation’s agricultural sustainability.  Within the Sokoto-Badagry Highway corridor, there are 216 agricultural communities, 58 large and medium dams spread across six states, seven Special Agro-Industrial Processing Zones (SAPZs), 156 local government areas, 39 commercial cities and towns, and over 1 million hectares of arable land,” he said.

    President Tinubu’s comprehensive plan focuses on nationwide construction of major legacy projects, involving trillions of naira in contracts that span every corner of Nigeria. Despite their long-term nature, these projects incorporate immediate intervention elements. Experts highlight that beyond addressing infrastructure deficits, this initiative will create crucial job opportunities for both skilled and unskilled labourers across the country. This approach not only supports families in finding sustainable livelihoods but also marks a significant step towards resolving critical infrastructure challenges.

    Associate Professor Gbemisola Animasawun from the Centre for Peace & Strategic Studies at the University of Ilorin emphasises the need for President Tinubu’s initiatives to be anchored in robust data. This, Animasawun argues, is crucial for ensuring that policies effectively address the real needs of Nigerians, particularly in light of the subsidy removal’s impact on vulnerable demographics. While acknowledging the potential benefits of initiatives like procuring CNG buses to combat poverty and improve urban mobility sustainably, Animasawun stresses the importance of effective rural transportation solutions for farmers. This consideration is vital as transportation costs contribute significantly to high food prices.

    Regarding the disbursement of grants to families across states, Animasawun points out the potential shortfall given Nigeria’s household numbers and distribution. Suggesting a more targeted approach using data from NIMC and state governments, Animasawun underscores the need for transparency in provisions for labour unions and civil society organizations to mitigate dissent and ensure accountability. While supportive of efforts to purchase and distribute food, Animasawun highlights the challenge of ensuring affordability beyond grant recipients. Overall, Animasawun views the government’s interventions as well-intentioned but calls for rigorous monitoring and data-driven strategies to maximise their impact and inclusivity across Nigeria’s diverse demographics.

    Port Harcourt businessman, Mr. Mieba Gogo-Abite, acknowledges the potential of President Tinubu’s initiatives but urges rigorous oversight to avoid repeating past failures. He appreciates the focus on infrastructure amidst unprecedented poverty and hardships exacerbated by economic reforms. Gogo-Abite emphasizes the historical challenge lies in effectively implementing financial support schemes and executing projects transparently, cautioning against misuse by the political class. He stresses the need for genuine objectives, execution, and accountability to prevent mismanagement and ensure the initiatives benefit Nigerians as intended.

    Builder Bolaji Olaye, an Abuja-based housing expert, analyzed the construction component of the National Construction and Household Support Programme, lauding its potential to boost exports, ensure food security, and drive comprehensive national development. He emphasized the urgency of pulling states along to maximize benefits, citing years of neglect and insecurity that have deepened national challenges. Olaye commended President Tinubu for prioritising impactful infrastructure that yields immediate and sustained benefits for citizens.

    “Years of neglect and misplacement of priorities, coupled with the debacle of insecurities, have led our nation to this sorry state,” Olaye remarked. “Major infrastructural development is crucial to lift us out of this quagmire swiftly. We cannot afford to delay, and selective infrastructure projects that deliver prompt returns and long-term impact are imperative.”

    Examining the strategic road and rail projects under the programme, Olaye predicted significant food sufficiency and economic impact across communities along these corridors. He urged the federal government to extend similar urgency to addressing national insecurity, envisioning Nigeria becoming a leading exporter of agricultural produce within a few years.

    Meanwhile, Abuja-based businessman Mr. Ejiro Emuejevorke echoed similar sentiments, emphasising the projects’ potential to reduce crime and insecurity by stimulating economic opportunities in remote areas. He highlighted the projects’ national scope across geopolitical zones as fostering unity and synergy among previously divided populations. Emuejevorke stressed the importance of engaging citizens in productive occupations to enhance security and decrease unemployment. He advocated for robust support for small businesses and the exploration of new economic frontiers to bolster national economic growth. Together, Olaye and Emuejevorke underscored the transformative potential of the programme, urging meticulous execution and broad-based engagement to ensure its success in revitalizing Nigeria’s economy and fostering social cohesion.

  • Recruitment reopens festering police, PSC feud

    Recruitment reopens festering police, PSC feud

    • The constable recruitment crisis has brought to a head the need for the Presidency and National Assembly to step in and address the recurring clashes between the Police Service Commission and Nigerian Police Force, defining once and for all their respective powers and responsibilities

    The Nigeria Police Force (NPF) and the Police Service Commission (PSC) have been embroiled in a long-standing feud, particularly during recruitment processes. The crisis began in 2019 when former Inspector-General of Police (IGP) Mohammed Adamu assumed control of recruitment, contrary to the Supreme Court’s ruling that it was the PSC’s constitutional mandate.

    Despite court orders, the police proceeded with the 2019 and 2020 recruitment exercises. The PSC, led by retired IGP Musiliu Smith, faced internal strife, including a three-day strike by workers demanding the restoration of the commission’s recruitment powers, staff promotion, and annual training. In July 2023, the Supreme Court reaffirmed the PSC’s sole responsibility for recruiting constables for the NPF. A source revealed that N18 billion was budgeted for the recruitment of 40,000 constables over four years, approved by former President Muhammadu Buhari. The Constitution (Third Schedule, Part 1, Paragraph 30) empowers the PSC to appoint persons to offices in the NPF, excluding the IGP position.

    Further investigation revealed that the Police Act 2020, signed by former President Buhari, also empowers the Police Service Commission (PSC) to recruit police officers. However, the crisis escalated in 2021 when the Court of Appeal declared parts of the Police Act 2020 unconstitutional, nullifying the NPF’s powers to appoint, promote and discipline police officers. The court’s perpetual injunction restrains the NPF and IGP from interfering with the PSC’s constitutional functions, including recruitment, promotion and discipline. Currently, the PSC has the sole authority to recruit, discipline, and promote all police cadres, except the Inspector General of Police. Despite his role as Chairman of the Police Council, Buhari failed to address the crisis, allowing the NPF and PSC to undermine each other. The new IGP, Kayode Egbetokun, recently visited former PSC Chairman Solomon Arase, a retired IGP, to end the acrimonious relationship affecting national security.

    Insiders are of the opinion that the National Assembly should review relevant statutes to eliminate contentions and ensure effective policing. Surprisingly, on June 15, the Force Public Relations Officer, ACP Olumuyiwa Adejobi, alleged irregularities and corruption in the recruitment process after the successful candidates were announced. The power struggle between the Nigeria Police Force (NPF) and the Police Service Commission (PSC) continues, putting the recruitment process in limbo. The NPF has raised concerns over the PSC’s published list of successful candidates, alleging irregularities and corruption.

    Read Also: Tinubu calls for punishment of civil servants receiving salaries abroad

    According to the Force Public Relations Officer, ACP Olumuyiwa Adejobi, the list was scrutinised after receiving complaints from candidates about corrupt practices. The NPF discovered that some candidates who failed the computer-based test or physical screening exercise were included in the list. Additionally, some individuals disqualified due to medical issues were also included. Adejobi stated that the most concerning issue is the alleged financial dealings and corrupt practices that led to the selection of unqualified and untrainable individuals. The Inspector-General of Police, Egbetokun, had written to the PSC Chairman, objecting to the list and highlighting the discoveries. While the IGP acknowledged the PSC’s power to recruit, he emphasised that this power does not extend to recruiting unqualified individuals. The NPF spoke out after receiving numerous complaints from candidates and stakeholders about the irregularities in the exercise. Upon reviewing the list, the police found names of “successful candidates” who did not even apply or participate in the recruitment process.

    His words: “The published list contains several names of candidates who failed either the Computer Based Test (CBT) or the physical screening exercise or both. There are those who made it to the last stage of the exercise but were disqualified, having been found medically unfit through the standardized medical test, but who also made the list of successful candidates as published by the PSC. Most worrisome is the allegation of financial dealings and corrupt practices leading to the outcome where unqualified and un-trainable individuals have been shortlisted.”

    Egbetokun had on June 10, 2024 written a letter of objection on the list addressed to the Chairman of the Commission, citing the discoveries. Adejobi said the reaction of the IGP was without prejudice to the power of the Commission to recruit for the police as confirmed by the Supreme Court in a case between the two sides. He added that it is the police that bear the brunt of recruitment of unqualified individuals and not the PSC. “The same people who recruited anyhow for the police today will turn round to accuse the police tomorrow of inefficiency when their recruits start messing up,” he said.

    The police, according to him, have dissociated themselves from the published list and called for a review that will be transparent and credible. He said: “The Nigeria Police Force therefore takes exception to this unpleasant development and calls for a total review of the process with a view to recruiting qualified, competent, trainable and productive hands into the Nigeria Police Force, in line with the vision of His Excellency President Bola Ahmed Tinubu’s led administration on police reform. The NPF hereby reiterates that we are not unconcerned about the plights and ordeals of prospective recruits who have been subjected to all forms of rigorous screening exercise, assuring that it is our commitment to ensure that the process is thoroughly reviewed, stands fruitful and successful for the betterment of the Nigeria Police, and by extension the country.”

    The Joint Union Congress (JUC) of the Police Service Commission (PSC) quickly responded to the police allegations, stating that the recruitment process followed due process. In a statement signed by Ogundeji Remi and Adoyi Adoyi on behalf of JUC, the PSC accused the police of attempting to prevent the commission from exercising its constitutional power to appoint police officers, despite the clear provisions of the 1999 Constitution and the Supreme Court’s interpretation of those powers.

    “This clandestine scheming by the Inspector General of Police to usurp such powers is obviously an affront on both the Nigerian Constitution and judgment of the Supreme Court,” the JUC said. Continuing, it said: “The Commission is at a loss why it is only during recruitment exercises that police confrontation manifests, suggesting obvious hidden interests and corrupt tendencies. To address the issues raised by the FPRO in the above release, it is worthy of note that after the Commission got judgement from the Supreme Court on the 11th of July, 2023 re-affirming its powers to, amongst other things, appoint qualified Nigerians into the  Police Force as stipulated in the paragraph 30 Part 1 of the Third Schedule of the Nigerian Constitution thus: The Commission shall have power to (a) appoint persons to offices (other than the office of the Inspector-General of Police) in the Nigeria Police Force; the Commission to ensure inclusiveness constituted a Recruitment Board comprising of a Commissioner from the Police Service (PSC) as Chairman, Deputy Inspector-General of Police, Development and Training Department as Co-Chairman/Deputy Chairman, CP Hassan Yabanet representing Police Training Colleges (NPF), Deputy Commissioner of Police (DCP) Olabode Akinbamilowo as Secretary to the Board amongst others.

    “The Board had representatives from virtually all the stakeholders in the Police Sector such as The Commission, the Police, Ministry of Police Affairs, Federal Character Commission, the Police Colleges and the Police Trust Fund. The claim that the Recruitment Board was crippled and was not allowed to function was no doubt a fallacy as the Board severally met before the release of the list of successful candidates. The same Board met and endorsed the list that was released on the 4th of June, 2024 at their usual meeting point, PSC Corporate Headquarters, with the DIG Training, Mr Frank Mba and other Police representatives in attendance.”

    President Tinubu recently appointed retired Deputy Inspector General of Police, Hashim Argungu, as the new chairman of the Police Service Commission (PSC), replacing retired IG Solomon Arase. IGP Kayode Egbetokun addressed senior police officers in Abuja, clarifying the recruitment process and denying reports of a disagreement between the Nigerian Police Force (NPF) and the Police Service Commission (PSC). He emphasised the need for quality recruitment, stating that some listed candidates were untrainable or had disabilities. He cited a Supreme Court verdict, which he said did not exclude the NPF from the recruitment process. Egbetokun also clarified that the police support the recruitment of Persons Living with Disabilities (PLWD) and plan to accommodate them in future recruitment exercises.

    He said: “The judgment of the Supreme Court is sound and clear. I don’t have issues with it. The court did not exclude the police from participating in the recruitment process into the Police Force. It is expected that while recruiting into the police force, the commission should carry the Police along. The IGP leads the largest police force in Africa. Over 300, 000 police officers look up to him for guidance and leadership. He cannot sit down and see how the recruitment exercise is carried out anyhow. The IGP has a duty to ensure quality recruitment into the Police Force. And that is exactly what we are doing.

    “If we don’t pay attention to the recruitment, a disaster awaits us. That is why we are raising issues where there are issues. We have written to the PSC over the published names of the successful candidates. So, there is no fight between the police and PSC. The police will play their roles, the PSC will play its roles. We cannot allow individuals with bad eyesight. We cannot afford to recruit the deaf and dump them on the police. Don’t get me wrong, they are human beings. For now, the Nigerian Police Force does not have space for them. Maybe later in the future, we will start…… because modern policing is inclusive. By then we will have space for them so that they will come and function well in the police.

    “We do not want to recruit people who will come and commit suicide in the police. Police jobs are too sensitive; So, we have to be very careful. Anybody can call for my removal. Anybody who doesn’t like me can come out tomorrow and say remove the IGP; that is not a problem. We are all entitled to our opinions.”

    The Police Service Commission (PSC) has responded to the allegations made by the IGP Egbetokun, regarding irregularities and corruption in the recruitment of 10,000 constables. The PSC has asked the IGP to provide verifiable evidence to support his claims, stating that the recruitment exercise followed due process and all successful candidates were certified fit for the job. The PSC also suggested subjecting both lists of successful candidates to a forensic audit using the Joint Admission and Matriculation Board (JAMB) Computer Based Test (CBT) results. Ani said: “That the release of the confidential letter sent to the Chairman of the Commission by the Inspector General of Police on alleged lapses in the recruitment exercise to the media was a gross violation of the Public Service Rules with grave consequences. The Commission demands that the Police should provide verifiable evidence to prove the allegations peddled against it as it is obvious that it is a case of giving the dog a bad name in order to hang it.”

    The commission condemned the leak of a confidential letter sent to the Chairman by the IGP, calling it a violation of Public Service Rules with grave consequences. Stakeholders are urging President Tinubu and the National Assembly to intervene in the situation to prevent further escalation.

  • Row over duplications in shipping, port economic regulatory agency bill

    Row over duplications in shipping, port economic regulatory agency bill

    Stakeholders in the maritime industry have decried the duplications in the Nigeria Shipping and Port Economic Regulatory Agency Bill, labeling it as a contradiction of the presidential policy specifically aimed at reducing cost of governance. In this report, OLUWAKEMI DAUDA looks at how the bill that has passed through second reading in the House of Representatives may affect the  implementation of the Oronsaye Report and the mandates of NPA and NIMASA.

    • Core responsibilities of NPA, NIMASA affected

    Stakeholders, experts and port users in the maritime industry have decried the duplications in the Nigeria Shipping and Port Economic Regulatory Agency Bill, labeling it as oppressive and anti-people because it is a contradiction of the presidential policy specifically aimed at reducing cost of governance, implementation of the Oronsaye Report and make life better for millions of Nigerians.

    The House of Representatives Committee on Shipping Services and Related Matters, one of the stakeholders and maritime lawyer, Dr Dipo Alaska alleged that the Committee, had on Monday, May 27, this year, held a one-day hearing to gauge public feedback and input on repealing the Nigerian Shippers Council (NSC) Act (Cap N133, LFN 2004) as prelude to enacting the Nigerian Shipping and Port Economic Regulatory Agency Bill.

    The Bill, findings revealed, has passed its second reading.

    According to him, “the Nigeria Shipping and Port Economic Regulatory Agency Bill, in its present form,  is a contradiction of the presidential policy specifically aimed at reducing inflation and increase the purchasing powers of masses through proper and adequate reduction in the cost of governance and subsequent reduction in the cost of doing business at port.”

    Other stakeholders who spoke with The Nation in separate interviews insisted that the Bill is being sponsored  at a time when the Federal Government is reducing cost of governance and implementation of the Oronsaye Report, which recommended mergers of agencies whose functions overlap and constitute duplications.

    “Entrenched interest,” a maritime expert and analyst,  Yusuf Idris said, “are looking for mundane  opportunity to sabotage the laudable  efforts  of President President Bola Tinubu with the Nigeria Shipping and Port Economic Regulatory Agency Bill.”

    Investigation conducted by our correspondent, has shown  that the clandestine moves to force the Bill through the National Assembly has resulted to a muted squabble in the maritime sector as its regulators jostle for supremacy in a power play,  which Idris said, “is capable to undermine trade facilitation and afflict the nation’s maritime and shipping value chain with the unenviable status of an over regulated business environment.”

    Sadly, he said, “the House of Representatives appears to be evolving as an interest group on this ill-motivated enterprise that is not good for the general economic interest of the country.”

    Other stakeholders in the maritime sector have therefore,  called on President  Tinubu to carry on with his good economic policies and ensure full implement of the Oronsaye report to save Nigeria the huge cost of governance and make our ports attractive for business.

    However, one of the bill’s sponsors and Chairman, House Committee on Shipping Services and Related Matters, Abdussamad Dasuki, quoting a gazette, said the Nigerian Shippers’ Council was made the Port Economic Regulator in 2015 by the Federal Government, a status, the stakeholders said, needs formalising through legislation before it can become effective.

    “The federal government noted that the objective of the regulation is to create an effective regulatory regime for the Nigerian ports after the concession of the ports. Port does not mean the Nigerian Ports Authority alone. It also means all the stakeholders in the ports, for the control of tariffs, rates, charges and other related economic services” Dasuki said on February 14, 2024, while presenting the Bill to the House of Representatives.

    But he said further that: “The Shippers’ Council’s gazette is being implemented today as a regulation and not as an Act. The Regulations provided that the Nigerian Shippers’ Council shall perform the role of interim Port Economic Regulator with the administrative backing of the federal government.”

    Repealing the existing Nigerian Shippers’ Council Act, he added, is to empower the NSC to discharge its mandate as the Port Economic Regulator, adding that collation of memoranda from various stakeholders is ongoing prior to tabling a report before the House of Representatives for Third Reading.

    Row over the functions of the agency to be created from the bill

    Investigation revealed that there are contrary positions in various quarters, not necessarily against the passage of the Nigerian Shipping and Port Economic Regulatory Agency Bill, but against misrepresentation of the agency to be created from the bill in terms of its functions and jurisdiction vis-à-vis other agencies in the maritime sector.

    For example, a thorough examination of the Bill clearly indicates that the powers and functions of the Nigerian Maritime Administration and Safety Agency (NIMASA) have been duplicated, considering that such functions as shipping regulation, issuance of certificates, licenses, fees, charges, and levies fall within the exclusive jurisdiction of the Nigerian Maritime Administration and Safety Agency. The bill failed to indicate how it would be resolved.

    NIMASA, it was learnt,  has argued that the bill, in its present form, is a contradiction of the presidential policy specifically aimed at reducing cost of governance and implementation of the Oronsaye Report, which recommended mergers of agencies whose functions overlap and constitute duplications. There is need for revision, the agency said.

    NIMASA is not alone as other agencies under the Ministry of Marine and Blue Economy are also demanding for ‘revision of the existing approach of operation guiding the agencies over the years.’

    For example, the Nigerian Ports Authority (NPA), while not opposed to the bill, has highlighted the confusion that may ensue due to the combination of “Ports” and “Shipping” in a regulatory agency, and demanded for proper phrasing of the roles of the agencies to avoid encroachment and infringement. It also emphasised the need for the agency, which should be named the, “Nigeria Port Economic Regulatory Agency,” for clarity to avoid duplicating the functions of other players in the sector.

    In addition, the NPA, as the landlord of the port, is saddled with granting of concessions to the concessionaire, under the statutory regulation and monitoring of the Infrastructure Concession and Regulatory Commission, meaning that the review of concessions, and indeed collection of all or part of the concession fees as in Section 28 of the bill cannot be the business of the proposed new Ports Economic Regulator.

    A position paper presented by the NPA reads in part:  “The intent and import of the Nigeria Shipping and Port Economic Regulatory Agency Bill is POLICY. It therefore MUST be driven by the sector policy arm of the executive – the Federal Ministry of Marine and Blue Economy.  The function of parliament here is to facilitate seamless implementation of established policy by enacting the intent of the operators.”

    Conflict of interests

    It is worthy of note that following the port reforms programme and subsequent concession of the ports, there was consensus among stakeholders on the need to establish an economic regulator for the ports to provide a competitive and conducive environment for commercial activities in the industry.

    Therefore, various versions of a bill to create this agency were developed and presented for legislative action in the 6th, 7th, 8th and 9th National Assemblies. However, none yielded the desired outcome due to conflict of interests and narrow articulation.

    In response, the Federal Government in 2014 signed an Executive Order that made the Nigeria Shippers’ Council an interim economic regulator for the ports pending the enactment of an Act.

    Now, the process of enacting an appropriate law to streamline operational framework for the industry, particularly in port management, has become an exercise to overload the NSC with roles and powers well beyond the original purpose of an economic regulator.

    Given the possibility of hitting the crossroads again arising from contradictory positions on the bill, stakeholders have suggested that the status quo should be allowed to remain, while consultations continue in order to avoid the fate of previous versions of the bill, which failed to see the light of the day.

     No wonder that some of the stakeholders in the maritime industry have started to allege that personal gain, rather than national interest, underpinning the motivation pushing for the enactment of the bill in its present form.

    Contrary to experts view, the House of Representatives Committee on Shipping Services and Related Matters recently said the Nigerian Shipping and Port Economic Regulatory Agency Bill will curb arbitrary charges and other illegality of operators in the nation’s maritime industry when passed into law.Experts have denounced this, stating that the house needed to trash the bill as it will result to inter agency rivalry and confusion.

    Speaking with newsmen after a Public Hearing on the repeal of the Nigerian Shippers Council Act, Chairman of the Committee, Abdussamad Dasuki, explained that the Committee is still collating memoranda from various stakeholders on the bill before going ahead to present the report before the House of Representatives for third reading.

    According to Dasuki, the bill seeks to repeal a law preventing NSC from enforcing a presidential directive concerning economic regulation of the ports.

    “The bill is to repeal a law which is preventing the NSC from enforcing a presidential directive concerning economic regulation of the ports. The nation’s maritime industry is overdue for this, and we will see to its implementation,” he said.

  • CBN’s decision and Heritage Bank’s liquidation

    CBN’s decision and Heritage Bank’s liquidation

    • Unveiling the reasons: CBN cites breach of financial regulations

    In a statement released on June 3, the CBN cited Heritage Bank’s breach of Section 12(1) of the Banks and Other Financial Institutions Act (BOFIA) 2020 as the primary reason for revoking its license.  This section empowers the CBN to revoke the license of a bank that is unable to meet its financial obligations or has persistently failed to comply with regulatory requirements.

    While the CBN’s statement lacked specifics, financial analysts suspect several potential factors could have contributed to the bank’s predicament. Rumours suggest Heritage Bank might have faced chronic financial difficulties, such as low capital adequacy ratios because many of the bank’s customers could not withdraw their money over the counter or through the ATM, or a high incidence of non-performing loans.  Such issues can significantly impact a bank’s ability to meet its obligations to depositors and creditors.

    The CBN might have found that Heritage Bank’s management lacked a viable plan to address its financial shortcomings.  Without a clear path to recovery, the bank’s long-term viability could be jeopardised. The CBN might also have identified instances where Heritage Bank failed to adhere to regulatory requirements, such as anti-money laundering regulations or risk management protocols.  Breaches of this nature could undermine public confidence in the bank’s stability and integrity.

    The CBN’s primary responsibility is to maintain a sound and stable financial system in Nigeria.  Revoking a bank’s license is a drastic step, but it might be necessary when a bank’s continued operation poses a risk to depositors, creditors, and the broader financial system. By taking swift action, the CBN aims to protect depositors. Loss of a bank license can be alarming for depositors, but the CBN’s intervention aims to prevent a run on the bank and safeguard depositors’ funds.

    A robust banking system fosters trust and economic activity.  The CBN’s action sends a message that it will not tolerate non-compliance and is committed to safeguarding the financial system’s integrity. In addition, if a financially troubled bank is allowed to operate, its problems could cascade and destabilize other institutions within the sector.  The CBN’s decision to revoke Heritage Bank’s license aims to isolate the problem and prevent contagion.

    The revocation of Heritage Bank’s license will, undoubtedly, have a ripple effect on various stakeholders. The CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the liquidator for Heritage Bank. The NDIC insures deposits up to N5 million per depositor, and they have assured swift verification and payment of insured deposits.  However, some depositors with amounts exceeding N5 million may face challenges.

    Existing borrowers of Heritage Bank will need to work with the NDIC to determine how their loan obligations will be handled.  This could involve transferring loans to other banks or making arrangements with the NDIC as the liquidator. The fate of Heritage Bank’s employees has been sealed.  The NDIC will keep some staff it considers crucial to its Liquidation exercise, staff with valuable knowledge of transactions in the bank. However, most of the staff will laid off as in most bank crises job losses are a potential consequence. The revocation of a bank’s license can create anxiety within the banking sector.  However, the CBN’s swift action also sends a message that it will take decisive steps to address non-compliance and protect the financial system’s health.

    Looking ahead:

    The road to resolution

    The NDIC now shoulders the responsibility of effectively liquidating Heritage Bank.  This complex process involves identifying and valuing assets. The NDIC will need to identify all of Heritage Bank’s assets, such as loans, cash holdings, and real estate.  These assets will then be valued to determine the total amount available to repay creditors.

    The NDIC will prioritize settling debts owed to depositors, who are typically considered the most vulnerable stakeholders.  Once insured deposits are paid, the NDIC will distribute the remaining funds to other creditors according to a set hierarchy.  This process can be lengthy and complex. The NDIC may sell off Heritage Bank’s assets to generate funds for creditors.  This could involve selling loan portfolios, branches, or other holdings.  The NDIC’s goal will be to maximize the value recovered from these assets.

    The NDIC will work to ensure minimal disruption for borrowers.  They might attempt to transfer loans to healthy banks or negotiate new terms with borrowers directly.  The goal is to minimize defaults and maintain business continuity for creditworthy borrowers.

    Lessons learned and a more resilient banking system

    The revocation of Heritage Bank’s license serves as a stark reminder of the importance of strong financial regulations and responsible banking practices. Banks can expect heightened scrutiny from the CBN in the wake of this incident.  This could lead to stricter enforcement of existing regulations and the introduction of new measures to prevent similar situations in the future.

    Banks are likely to place greater emphasis on robust risk management practices.  This could involve stricter loan approval processes, improved capital adequacy ratios, and enhanced anti-money laundering measures. The Heritage Bank situation might accelerate consolidation within the Nigerian banking sector.  Smaller banks might feel pressured to merge with larger institutions to improve their financial strength and regulatory compliance.

    The recent revocation of Heritage Bank’s license by the Central Bank of Nigeria (CBN) and the ongoing bank recapitalisation exercise are two significant events impacting the Nigerian banking sector. While seemingly separate, these events could have some interconnected effects. The Heritage Bank situation could create a sense of unease among investors and depositors. This negativity might discourage some banks from actively participating in the recapitalisation exercise, especially smaller institutions facing financial strain.

    With the uncertainty surrounding Heritage Bank’s depositors and the ongoing liquidation process, other banks might prioritize maintaining high liquidity levels in the short term. This could limit the ir ability to raise fresh capital for the recapitalisation exercise.

    The CBN’s decisive action regarding Heritage Bank sends a message that it will not tolerate non-compliance. This could incentivize existing banks to strengthen their financial health and governance practices in anticipation of stricter regulatory scrutiny. Stronger banks with improved financial standing would be better positioned to participate effectively in the recapitalisation exercise.

    The Heritage Bank situation might accelerate consolidation within the banking sector.  Smaller or weaker banks might find it more attractive to merge with stronger institutions to meet the new capital requirements and benefit from economies of scale. Consolidation could ultimately lead to a more robust banking sector with fewer undercapitalised institutions, potentially enhancing the overall success of the recapitalisation exercise.

    The CBN can take steps to mitigate the potential negative impacts of the Heritage Bank situation on the recapitalisation exercise. It can provide clear and consistent communication regarding the recapitalization plan and its expectations for banks.  This will help to alleviate investor concerns and encourage participation.

    The CBN could consider a phased approach to the recapitalisation, allowing smaller banks more time to raise capital or explore potential mergers. However, this is unlikely because of the length of time the apex bank has given for the recapitalization programme. The CBN could offer incentives, such as tax breaks or regulatory relief, to encourage banks, particularly smaller institutions, to participate actively in the recapitalisation exercise.

    The ultimate impact of the Heritage Bank situation on the CBN’s recapitalization exercise remains uncertain.  While short-term challenges exist, the long-term effects could be positive.  A more stringent regulatory environment and potential consolidation within the sector could lead to a stronger and more resilient banking system in Nigeria.  The success of the recapitalisation exercise will depend on the CBN’s ability to manage these interconnected events effectively and ensure the stability and growth of the Nigerian financial sector.

    “Poor financial performance” might signal prudential guideline violations

    The CBN’s stated reason for revoking Heritage Bank’s license – the bank’s board and management’s inability to improve its financial performance does indeed raise questions about potential violations of prudential guidelines. The CBN establishes prudential guidelines to ensure the safety and soundness of Nigerian banks.  These guidelines essentially set minimum standards for banks to operate effectively and manage risk.  Some key areas covered by these guidelines include:

    This guideline dictates the minimum amount of capital a bank must hold relative to its risk-weighted assets, Capital Adequacy.  This ensures that the bank has sufficient resources to absorb potential losses and maintain solvency. This guideline requires banks to maintain a healthy balance between readily available assets (liquid assets) and their short-term liabilities.  This ensures the bank can meet its financial obligations as they fall due. The guideline focuses on the quality of a bank’s loan portfolio.  It sets limits on the amount of non-performing loans (NPLs) a bank can hold, encouraging responsible lending practices and minimizing the risk of bad debts. The guideline mandates that banks have robust risk management frameworks in place to identify, assess, and mitigate potential risks across their operations.

    Read Also: Mercy Eke cries out over N100m stuck in Heritage Bank amid financial crisis

    While the CBN’s official statement didn’t explicitly mention specific violations, persistent poor financial performance often suggests underlying issues related to prudential guidelines. If a bank consistently fails to meet minimum capital adequacy ratios, it could be a sign that it’s not generating enough profits or is taking on excessive risks, potentially jeopardizing its ability to meet its financial obligations.

    Speaking to the issue of poor financial performance or violation of prudential guidelines, Dr Wahab Balogun of Ambosit Capital Managers noted that “a significant increase in NPLs suggests that the bank might be engaged in risky lending practices or struggling with loan recovery.  This can significantly erode a bank’s profitability and threaten its liquidity. Persistent financial problems might indicate deficiencies in a bank’s risk management framework.  This could involve weak loan appraisal processes, inadequate risk provisioning, or a lack of effective internal controls.”

    It’s important to understand that the CBN’s expectations go beyond mere compliance with the minimum requirements outlined in the prudential guidelines. They expect banks to exhibit a proactive approach to financial management and demonstrate a clear path towards sustainable growth and profitability.

    The CBN acts as both an enforcer and a protector in this context. If a bank persistently fails to meet minimum standards or demonstrate an improvement plan, the CBN might take corrective measures, which could involve revoking its license as a last resort.  This ensures that only financially sound and well-managed institutions operate within the Nigerian banking system, protecting depositors’ funds and promoting overall financial stability.

    Public reactions

     A Twitter user once stated that some members of the staff of Heritage Bank allegedly took loans and left the country (Japan) without repaying them, which could be a contributing factor to the CBN’s decision to revoke the bank’s license. This is unlikely to be the sole reason.

    Dr Balogun said: “If a significant number of members of staff defaulted on their loans, it would contribute to Heritage Bank’s overall NPL ratio.  High NPLs can significantly impact a bank’s profitability and liquidity, raising concerns about its financial health.”

    “News of staff loan defaults could damage public confidence in the bank’s lending practices and internal controls.  This could lead to deposit withdrawals and further financial strain. Staff loan defaults could suggest weaknesses in the bank’s loan approval process or loan recovery mechanisms.  This could be a violation of prudential guidelines related to risk management.

    “However, the CBN wouldn’t likely revoke a bank’s license solely based on a few staff loan defaults.  The total value of these defaults would likely be a small fraction of the bank’s overall loan portfolio. The CBN is more concerned with broader issues affecting the bank’s financial health and its ability to meet its obligations to all stakeholders.  Staff loan defaults, while problematic, wouldn’t necessarily be a systemic issue.”

    The loan defaults by some members of staff might be a symptom of a larger problem within Heritage Bank. The bank might have a lax credit culture that allowed staff to obtain loans without proper due diligence or adequate risk assessment. The situation could indicate a lack of oversight or control within the bank’s management, allowing such loan defaults to occur. The staff loan defaults might be a reflection of the bank’s broader financial difficulties.  The bank might be struggling to generate profits, leading even its own employees to doubt its solvency and resort to such actions.

    NDIC to blacklist complicit board members

     The recent expansion of the NDIC’s powers to pursue loan defaulters and blacklist bank officials adds another layer of significance to the Heritage Bank’s situation. The NDIC’s enhanced ability to go after debtors, including legal action and potential imprisonment, could incentivize swifter repayment of outstanding loans to Heritage Bank.  This could help the NDIC recover a larger portion of the bank’s assets during the liquidation process.

    “The threat of legal repercussions might discourage future loan defaults across the banking sector.  This could improve overall loan repayment discipline and benefit the banking system as a whole,” Dr Balogun said.

    The NDIC’s authority to blacklist bank executives or board members found to be complicit in Heritage Bank’s collapse could serve as a powerful deterrent.  Bank officials will be more mindful of their actions knowing potential negligence or misconduct could result in blacklisting, hindering their future career prospects in the banking sector. The threat of blacklisting could encourage stronger corporate governance practices within banks.  Officials might be more diligent in their oversight duties and risk management practices to avoid being held accountable for bank failures.

    The CBN’s decision to revoke Heritage Bank’s license likely involved assessing the bank’s management’s competence and potential role in the bank’s financial struggles.  The NDIC’s expanded powers now provide additional tools to investigate potential misconduct and hold those responsible accountable. The NDIC might investigate the actions of Heritage Bank’s executives and board members to determine if their decisions or negligence contributed to the bank’s collapse. If the NDIC’s investigation uncovers evidence of wrongdoing, they could blacklist certain individuals associated with Heritage Bank, preventing them from holding similar positions in other banks.

    The expanded powers of the NDIC, along with the Heritage Bank situation, send a strong message to the Nigerian banking sector.  There will be stricter enforcement of regulations and consequences for mismanagement or non-compliance will be more severe. Banks might become more cautious in their lending practices and strengthen their risk management frameworks to avoid potential issues with loan defaults or regulatory breaches. A more robust regulatory environment with clear consequences for wrongdoing could rebuild public trust in the banking system.

    A watershed moment?

    The Heritage Bank situation and the NDIC’s expanded powers mark a significant moment for the Nigerian banking sector.  The focus on stricter loan recovery efforts and potential blacklisting of bank officials could lead to a more disciplined and more accountable banking environment, ultimately fostering a more stable and secure financial system in Nigeria.

  • Between minimum wage and living wage

    Between minimum wage and living wage

    •  As debate rages about the ability of the federal and state governments to afford higher living wages, the stalemate underscores the need to balance financial constraints with fair worker compensation

    High expectations are mounting among workers following President Bola Tinubu’s pledge to implement a living wage. During this year’s May Day celebrations, also known as Worker’s Day, the President proclaimed an end to the era of workers awaiting a living wage. The President’s proclamation was conveyed to workers by Vice President Kashim Shettima. Yet, a pressing question looms among many workers: What exactly constitutes this promised living wage?

    Speculations have arisen, suggesting that the Federal Government is considering a minimum wage ranging between N100,000 to N150,000. However, this figure, which lacks independent verification, falls short of the demands advocated by organised labour. The organised labour, comprising the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC), is advocating for the Federal Government to implement a minimum wage of N615,000 for workers. This proposal, according to labour, is deemed essential to ensure Nigerian workers receive a decent living wage that aligns with prevailing economic conditions.

    Both labour unions have presented this figure to the tripartite committee, established in January to negotiate the new minimum wage. President of the NLC, Joe Ajaero, emphasised that the proposed N615,000 minimum wage may undergo adjustments due to the Federal Government’s decision to exempt certain Nigerians in Band A from electricity tariffs. Ajaero further stated that the two labour unions might reassess the amount during future committee meetings tasked with negotiating the new minimum wage.

    Since the removal of subsidy on premium motor spirit (PMS), commonly known as petrol, and the floating of the country’s currency last year, there has been a noticeable increase in the prices of goods, particularly essential commodities. This surge has prompted labour agitations, as workers across various sectors voice their concerns regarding the need to improve their welfare amid rising living costs.

    According to recent data from the National Bureau of Statistics, Nigeria’s inflation rate climbed sharply in March, reaching a 28-year high of 33.20% in annual terms. This significant increase is primarily driven by soaring food and energy costs, despite efforts by the central bank to curb inflation through successive rate hikes. The removal of fuel subsidies and the resultant hike in fuel prices have contributed to the overall inflationary pressure, exacerbating the already challenging economic conditions faced by many Nigerians. As a result, there is mounting pressure on the government and policymakers to implement measures that will alleviate the financial burden on citizens and address the root causes of inflation in the country.

    The prevailing economic challenges in the country have intensified calls from workers for a living wage, reflecting their pressing need for financial stability amid rising living costs. A minimum wage serves as the legally mandated minimum compensation that an employer must pay to its workers. The current minimum wage in Nigeria stands at N30,000, which was enacted into law during the tenure of former President Muhammadu Buhari. However, this minimum wage expired in April of this year, necessitating the formulation of a new wage structure.

    Anticipations are high for the establishment of a new minimum wage, expected to commence in April of this year following the deliberations and agreement reached by the tripartite committee. Once finalised, this new wage framework will require endorsement through legislation and subsequent signing into law by President Tinubu.

    Paying an individual below the minimum wage is a violation of the law, constituting an illegal act. However, despite this legal mandate, some state governors have recurrently flouted the law by failing to remunerate workers in accordance with the minimum wage requirements. Labour unions have highlighted the persistent issue of some governors disregarding the law by continuing to pay workers the outdated N18,000 minimum wage, which was signed into law by former President Goodluck Jonathan in 2011. This disregard for the stipulated minimum wage not only undermines the rights of workers but also perpetuates financial hardship and inequality among the labour force.

    What is a living wage?

    A living wage refers to the income necessary for an individual or family to sustain a decent standard of living and avoid poverty. Unlike the minimum wage, which is mandated by law, a living wage exceeds this threshold and is not legally enforced. This income level is designed to cover essential expenses such as food, shelter and other basic necessities. It varies based on economic factors such as inflation and the cost of living in a particular area. However, there is no fixed figure for a living wage, as it fluctuates depending on who is calculating it and the prevailing economic conditions.

    Despite the lack of a precise numerical value, there is a general consensus among workers that a living wage should be sufficient to lift individuals and families out of poverty and provide them with financial stability. According to economists, the primary objective of a living wage is to enable employees to earn a sufficient income to maintain a satisfactory standard of living and prevent them from slipping into poverty. They propose that it should ideally cover expenses in a way that no more than 30% of this income is allocated towards housing costs. As a result, living wages typically surpass the legal minimum wage significantly. They are designed to provide adequate coverage for fundamental needs such as food, housing, childcare and healthcare, ensuring individuals and families can afford a decent quality of life.

    The concept of living wages has historical roots, dating back to early America when workers advocated for higher pay to meet their basic needs. It is crucial to distinguish living wages from the minimum wage, which represents the lowest amount of compensation mandated by law. While the minimum wage sets a baseline for employee earnings, a living wage strives to offer a more comprehensive and sustainable income that fosters financial stability and well-being. Supporters of living wages contend that they have the potential to enhance productivity and boost employee morale within organisations. By providing workers with a wage that covers their basic needs, they argue that employees may feel more motivated, valued and invested in their work, leading to increased productivity and job satisfaction. Additionally, higher wages may reduce employee turnover rates, saving costs associated with recruitment and training.

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    However, critics of living wages raise concerns about their potential negative impact on the economy and employment levels. They argue that implementing higher wage requirements could place financial strain on businesses, particularly small enterprises, leading to reduced profitability and potentially forcing some  companies to downsize or cut jobs. Moreover, critics suggest that higher wages may lead to increased costs for consumers, as businesses may offset the expense by raising prices for goods and services, thereby potentially contributing to inflationary pressures. Ultimately, the debate surrounding living wages revolves around finding a balance between supporting workers’ financial well-being and ensuring the overall health and competitiveness of the economy.

    Can the federal and state governments pay?

    There are apprehensions regarding the capacity of both the federal and state governments to afford the wages that Nigerian workers rightfully deserve. Past occurrences indicate that certain state governments may encounter challenges in meeting the agreed-upon wage standards established at the national level. An illustrative instance is the aftermath of the removal of fuel subsidies and the fluctuation of the nation’s currency,  resulting in heightened living costs.

    In response to these economic shifts, labour unions advocated for wage adjustments to alleviate the financial strain on workers while awaiting the implementation of a new minimum wage. This scenario underscores the complexities involved in balancing the financial capabilities of governments with the need to ensure fair compensation for workers amidst evolving economic conditions. Following negotiations and the looming threat of strikes, the federal government eventually acquiesced to pay workers a wage award of N35,000 for a period of six months. President Tinubu granted approval for this payment to federal workers in the wake of the removal of petrol subsidies.

    As per the agreement, the government committed to disbursing this sum to civil servants over the course of six months. Thus far, payments have been made up to January 2024, fulfilling the terms of the arrangement. Ten states have thus far embraced the wage award for workers, aligning with the federal government’s decision to implement the N35,000 payment. These states comprise Lagos, Ekiti, Oyo, Osun, Ogun, Ondo, Enugu, Ebonyi and Adamawa. By adopting this wage award, these states demonstrate their commitment to providing fair compensation to their workforce in line with national standards.

    The TUC President Festus Osifo has strongly criticised states such as Imo, Delta, Benue, Katsina, Kebbi, Anambra and others for their failure to honour wage awards for workers, despite receiving substantial allocations from the federation account. He highlighted that, as of March and April, federal workers in the public sector are yet to receive the N35,000 wage award from the federal government. Despite improvements in federal allocation, some states have failed to remit any payments to their employees. Given the challenges faced by both federal and state governments in meeting the N35,000 wage award, questions arise about their ability to afford a living wage for workers. The resolution to this query remains uncertain, with the answer likely to become evident in the forthcoming months. This situation underscores the ongoing struggle to balance the financial constraints of governments with the imperative of providing adequate compensation to workers.

  • Navigating the turbulent economic waters together

    Navigating the turbulent economic waters together

    Nigeria’s economic landscape in 2024 presents a complex picture. Excess liquidity in the financial system threatens inflation, while a volatile foreign exchange market adds another layer of uncertainty. To address these challenges, the Federal Government has outlined a strategic plan through collaborative efforts between the Central Bank of Nigeria (CBN) and the Ministry of Finance. Assistant Editor, NDUKA CHIEJINA examines the issues.

    The Nigerian financial system currently faces a situation of excess liquidity. This means there’s a surplus of money circulating in the economy. While seemingly positive, this can have detrimental effects. Increased money supply can lead to inflation, a scenario where prices of goods and services rise, eroding purchasing power. This can disproportionately affect low-income households and stifle economic growth.

    The CBN tools

    The CBN, as Nigeria’s central bank, plays a crucial role in managing liquidity. It possesses various tools in its monetary policy arsenal to combat inflationary pressures. Some key measures include raising the benchmark interest rate, currently at 24.75 per cent to discourage borrowing and encourages saving. This reduces the amount of money circulating in the system, dampening inflationary pressures. The CBN gradually increases rates to avoid stifling economic activity.

    In addition, the CBN can engage in Open Market Operation (OMO) by selling government securities to banks. This absorbs excess liquidity from the system. Conversely, buying securities can inject liquidity when needed. OMOs allow for targeted liquidity management.

    The Cash Reserve Ratio (CRR) is the minimum amount of deposit banks must hold as reserves with the CBN. Increasing the CRR reduces the amount of money available for lending by banks, effectively tightening the money supply. It’s a powerful tool, but requires careful implementation to avoid hindering lending and economic growth.

    Fiscal responsibility

    The Ministry of Finance plays a crucial role in managing government spending and revenue generation. To curb inflation, the ministry is trying to implement several measures such as reducing government budget deficits by cutting non-essential spending or increasing tax collection which can help dampen inflationary pressures. However, striking a balance is crucial to avoid hindering essential public services.

    Subsidies on certain goods can contribute to inflation. The government is executing a phased removal of subsidies to certain sectors while ensuring social safety nets are in place to protect vulnerable populations.

    Strategic investments in infrastructure development can increase productivity and efficiency in the long run. This can help address supply chain bottlenecks that contribute to inflation.

    To effectively tackle foreign exchange (forex) volatility, the Central Bank of Nigeria (CBN) and the Ministry of Finance can collaborate on several strategies.

    The CBN and the Ministry of Finance should align on exchange rate policies. This includes deciding on the appropriate exchange rate regime (e.g., fixed, floating, managed float) and communicating a consistent message to the market.

    The CBN manages foreign exchange reserves, which are crucial for stabilising the currency. The Ministry of Finance can support by ensuring adequate funding and transparency in reserve management practices.

    While the CBN can intervene in the forex market by buying or selling foreign currencies to influence exchange rates the Ministry of Finance can coordinate by providing necessary backing and support for these interventions.

    Regular dialogue and coordination between the CBN and the Ministry of Finance are essential. They have agreed to share data, discuss policy options, and jointly formulate strategies to address forex volatility.

    Both the Ministry and the CBN are collaborating to enhance regulatory measures that prevent speculative activities in the forex market and ensure transparency and fairness in foreign exchange transactions.

    They are working together to develop and promote hedging instruments (such as futures, options and swaps) to help manage currency risk for businesses and investors. Futures, options, and swaps are financial instruments used in the markets to manage risks associated with price fluctuations (including foreign exchange rates) or to speculate on future market movements. Each derivative serves a specific purpose and provides investors and institutions with tools to hedge against uncertainties in the financial markets.

    The Ministry of Finance can implement fiscal policies that support exchange rate stability. This includes managing government spending, taxation, and borrowing in a manner that doesn’t exacerbate forex volatility.

    Both institutions continuously monitor the forex market and share critical information. This helps in understanding market dynamics and taking timely actions to stabilize the exchange rate.

    Addressing underlying structural issues in the economy, such as improving export competitiveness, reducing import dependency, and promoting diversification, can also contribute to forex stability. The Ministry of Finance can lead efforts on these structural reforms.

    By working closely together and leveraging their respective mandates and capabilities, the CBN and the Ministry of Finance can enhance Nigeria’s ability to manage foreign exchange volatility effectively, fostering economic stability and growth.

    Collaboration is key:  The CBN/Ministry of Finance synergy

    The success of the government’s economic plan hinges on effective collaboration between the CBN and the Ministry of Finance. Here’s how their  synergy can make a difference. Inflation can be likened to a runaway train, where the Central Bank of Nigeria (CBN) attempts to slow it down using interest rate adjustments. However, if the Ministry of Finance keeps adding fuel by increasing government spending, inflationary pressures persist.

    When monetary (CBN’s interest rate changes) and fiscal policies (Ministry of Finance’s fiscal consolidation) work in tandem, their impact on inflation is amplified. This combined approach reduces the amount of money circulating in the economy, curbing inflation effectively.

    Aligned policies send a strong signal to the market about the government’s commitment to tackling inflation, boosting confidence among businesses and consumers. It also attracts foreign investment and promotes economic stability.

    Regular sharing of economic data and forecasts between the CBN and the Ministry of Finance is crucial. It informs policy decisions, enhances market confidence, and helps manage public expectations.

    Achieving policy alignment is not without challenges, such as balancing fiscal objectives, political pressures, and timing policy adjustments for optimal impact.

    Development Finance: Shifting gears

    The recent decision by the CBN to withdraw from directly participating in development finance interventions, such as the fertiliser distribution programme, and hand over these responsibilities to the fiscal authorities, presents a significant shift in economic policy.

    While this move might raise initial questions, it has the potential to positively impact the effectiveness of the government’s collaborative efforts to achieve economic stability, particularly when viewed in the context of their joint fight against inflation.

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    By relinquishing development finance activities, the CBN can dedicate its resources and expertise to its core functions–managing monetary policy, maintaining financial system stability, and issuing legal tender. This sharper focus can lead to more effective monetary policy implementation, potentially aiding in inflation control efforts.

    Shifting development finance to the Ministry of Finance places the responsibility for budgetary allocation and programme execution squarely on their shoulders. This increased accountability can incentivise the Ministry to prioritise efficient resource allocation and target programmes for maximum impact.

    Budgetary allocations for development finance programmes channeled through the Ministry of Finance become subject to the usual legislative oversight processes. This can enhance transparency and minimize potential misuse of funds.

    With both monetary and fiscal policy tools concentrated under the purview of the government (CBN and Ministry of Finance, respectively), the potential for a more unified economic management approach is amplified. This can facilitate smoother collaboration and communication between the two entities.

    The Ministry, with its broader fiscal mandate, might be better positioned to take a holistic view of the economy and prioritise development finance interventions that complement its overall economic strategy. This could lead to more targeted and impactful programmes. However, a smooth transition and maximizing the potential benefits require careful consideration of potential challenges.

    The CBN’s exit from development finance interventions presents a unique opportunity to strengthen collaboration with the Ministry of Finance. By leveraging each other’s strengths and fostering a more unified approach, this shift can contribute to a more stable and efficient economic environment. The success of this collaboration, however, hinges on effective communication, capacity building within the ministry, and a shared commitment to achieving long-term economic stability.

    The CBN and the Ministry of Finance can collaborate in several ways to fight inflation and boost the economy by jointly addressing insecurity.

    Here are some possible strategies

    The CBN can work closely with the Ministry of Finance to align monetary policy with fiscal policy. This coordination can help manage inflation by ensuring that both entities work in harmony to control money supply, interest rates, and exchange rates.

    The Ministry of Finance can collaborate with the CBN to create special funding initiatives aimed at addressing insecurity. This could involve allocating funds to enhance security infrastructure, support law enforcement agencies, and invest in social programs that address the root causes of insecurity.

    The CBN, in collaboration with the Ministry of Finance, can design and implement targeted interventions to address the economic impact of insecurity. This may include providing financial support and incentives to businesses affected by insecurity, particularly in vulnerable sectors like agriculture and manufacturing.

    The CBN and the Ministry of Finance can work together to strengthen the regulatory framework to combat insecurity. This may involve developing new policies and regulations to monitor and control illicit financial flows, money laundering, and terrorism financing.

    Both entities can collaborate to boost investment in sectors that enhance security and provide economic opportunities. By creating an enabling environment for investors, such as providing tax incentives and improving infrastructure, they can attract investments that contribute to both security and economic growth.

    Collaboration between the CBN and the Ministry of Finance should involve engaging relevant stakeholders, such as state governments, security agencies, and private sector organiSations. This multi-stakeholder approach can ensure a comprehensive and coordinated effort towards addressing both inflation and insecurity.

    Overall, a collaborative approach between the CBN and the Ministry of Finance can contribute significantly to tackling inflation and boosting the economy while addressing the challenges posed by insecurity in Nigeria.

    While the government’s plan has merit, it’s important to acknowledge potential challenges. Global economic events, commodity price fluctuations and exchange rate volatility can all impact inflation and complicate the implementation of policy measures.

    The impact of monetary and fiscal policy adjustments might take time to be fully realised, requiring patience and sustained commitment to the strategy. Measures such as interest rate hikes, subsidy reductions, and tax increases can have a disproportionate impact on lower-income households. The government needs to consider social safety nets to mitigate these effects.

    Edun and Cardoso speak

    At the last Monetary Policy Committee (MPC) meeting in Abuja, the CBN Governor Mr Olayemi Cardoso stated that “does donation of over two million bags of fertiliser suggest a return to developmental interventions? The answer is no, it doesn’t. And let me explain why it doesn’t.

    “Because we have been consistent in saying that we will withdraw from direct interventions. We have been consistent in sales.

    “So, we have also been consistent in saying that we will work with those who we believe have the capacity to successfully intervene in whatever manner they can. And that, by the way, includes even capacity building. It’s not strictly speaking, you know, direct funding or anything like that. It isn’t, it extends to a whole host of different areas.

    “So, where we see that that capacity is there, the central bank would be happy to partner and that goes similar to what one had just said about the collaboration that we have had with regulatory authorities and also law enforcement authorities.”

    In Washington DC last week, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun confirmed the administration’s commitment to tackling the issue of surplus money circulating within the economy, stating that: “We are determined to pin down Ways and Means to alleviate the pressure of excess money in the system.”

    This measure, he explained,  is aimed at facilitating a collaborative effort between fiscal and monetary authorities to reduce inflationary pressures and stabilise the exchange rate.

    “We need to borrow less and focus more on domestic resource mobilization.”

    Collective effort towards stability

    The Federal Government’s collaborative approach to tackling excess liquidity, inflation, and economic instability presents a promising path forward. The success of this plan will depend on the effective implementation of the outlined measures, continuous monitoring and adjustments based on economic data, and clear communication with the public.

     Ultimately, achieving economic stability requires a collective effort from the government, the private sector, and the citizenry. By working together, Nigeria can navigate through these turbulent economic waters and emerge on a stronger foundation.

  • Strengthening competitiveness to expand livestock opportunities

    Strengthening competitiveness to expand livestock opportunities

    Nigeria and other parts of Africa’s animal husbandry industry has enormous potential to flourish, but many measures, including cost reduction, are required. The sector’s challenges require farmers and producers to close the gap of feed shortage, improve and upgrade input supply, thus increasing turnover. DANIEL ESSIET writes.

    As Africa remains one of the world’s largest foods producing area, agricultural policies have had a significant impact on livestock business growth.

    At the recent feed and fodder conference in Nairobi, Kenya, by the African Union-Interafrican Bureau for Animal Resources (AU-IBAR), the challenges of the livestock industry was discussed.

    This comes amid the growing importance placed on livestock security by governments across the continent and which the Federal Government considers top national priority.

    Founded in 1951 to study the epidemiological situation and fight rinderpest in Africa, the AU-IBAR’s mandate covers animal resources, including livestock, fisheries and wildlife, across the continent. At the same time, the AU-IBAR fills a unique and strategic niche by working at the continental and regional levels, with the Regional Economic Communities (RECs) being key partners.

    Amid a complex operating environment, climate shocks, supply chain disruptions, the Federal Government has elevated food security and food supply resilience to the highest level in terms of political priorities in recent months.

    Minister of Agriculture and Food Security, Abubakar Kyari, represented by  the Director, Department of Animal Husbandry Services, Mrs  Winnie Lai-Solarin, told The Nation that increasing livestock production  has been part of the  broader food security efforts.

    To this end, the Minister said while the principle of self-sufficiency in agricultural production continues to underpin the government’s food security strategy, there has been a discernible shift to boost livestock production.

    According to her, there have been efforts to introduce new management practices and technologies, including leguminous fodder crops, to improve cattle productivity, income and food security. The Minister said farmers were receiving training and assistance that could boost livestock production.

    In line with this, the Minister indicated that the Federal Government is ready to work with the AU-IBAR to implement key policies that will enable the sector record achievement in fodder production as well as become self-sufficient in animal feed.

    As the consumption level of Nigerians continue to increase, and the demand for meat, eggs, milk, and other proteins has surged, causing a substantial increase in demand for feed.

    In recent years, the government has been rallying the private sector to attract substantial new investments to expand and improve feed production, thus supporting the nation’s livestock, aquaculture, poultry and pig producers.

    To produce cost-effective feed, the Federal Government has sought technical support from the AU-IBAR, which is exploring ways to support local growers of feed crops such as corn, sorghum and cassava.  The target is to develop year-round quality feeds for livestock.

    However, despite the vastness of areas, many livestock farmers are still faced with scarcity problem of quality feed resources, especially during   the dry season. The supply of forage is very low during the dry spell. The wet season is the peak season wherein quality feeds are high in supply; thereby contributing to the good milk production of cows.

    To address feed quality and scarcity, and improve the state of the dairy sector, the AU-IBAR wants producers in Nigeria, Cameroon, Kenya, Somalia, and Zimbabwe, – core AU member-states under its Resilient African Feed and Fodder Systems (RAFFS) project – to come up with quality feed and fodder solutions that will be made available all-year-round. This is because forages and roughages are the backbone of the industry because ruminants such as cows depend on them for milk and meat production.

    Group Head, Agric Finance and Solid Minerals, Sterling Bank Plc,Dr Olushola Obikanye indicated that Nigeria’s food security and the sustainability of  production and consumption depend on how to manage livestock production and animal source food consumption.

    According to Obikanye, having enough feed for livestock is critical to the food security of Nigeria. His position is that a lot has to be done to reduce feed grain imports, while there must be efforts towards actualising livestock industry production targets through reliance on local agricultural production rather than imports.

    He said the bank supports the measures put in place by the Federal Government to boost domestic feed and fodder production as part of broader food security efforts.

    Still, he pointed out that the organisation attaches great importance to the issue of food security, centered on self-sufficiency in food and feed supply and security of staples.

    On the whole, experts during the forum acknowledged that the continent’s domestic supply of feed and fodder was insufficient.They advanced recommendations to make the continent’s feed supply more resilient, secure, and green. Among other suggestions, they advocated the improvement of grain production capacity and that feed and fodders supply security has to be greatly strengthened.The animal feed business imports about 70 per cent of raw ingredients.

    In 2021, the costs of animal feeds increased across the world, including Africa. Since livestock makes major contribution to the agricultural gross domestic product (GDP), export earnings and employment, the Resilient African Feed and Fodder Systems (RAFFS) Project lead, Dr. Sarah Ashanut Ossiya emphasised the need to establish production linkage chains to assist farmers to remain competitive, including feed and fodder production.

    For her, fodder scarcity has been a perennial problem; as such, there was the need for governments  in Nigeria and five other countries to discuss how fodder technologies and knowledge could  be  sustainably produced and integrated in the diverse livestock production systems.

    While there have been successes in efforts to disseminate fodder-related technologies, she observed that not much progress has been recorded in resolving the scarcity problem.

    This, she said, was important if countries under the RAFF project must improve the fortunes of people with livestock-based livelihoods.

    In addition to this, she continued that the six core AU member-states have to upgrade the livestock value chain to survive, cope and compete in dynamic production and market conditions at sub-national, national and global scales.

    She emphasised that the recognition of innovation as adequate supply of livestock fodder is crucial to the livelihoods of millions of people.

    She noted that member-states must work with the private sector and funders to seek finance to support activities to incorporate more rural communities in search of assistance to adapt fodder production.

    She maintained that farmers need to be proficient in managing feeds and having an alternative supply during lean months to help reduce production costs to increase milk production and profit.

    The primary of objective of the project, she stressed, is to boost income of farmers using local feeds and other fodder resources.

    The RAFFS Project is an initiative responding to the Triple C crises – COVID-19, Climate Change shocks, and the Russia-Ukraine conflict that have impacted African feed and fodder systems.The project aims to understand the effects of these crises and provide evidence-driven short-term solutions to build resilience in the sector. Feed and fodder shortages have led to substantial livestock losses, eroded livelihoods, and increased prices of essential livestock-sourced foods.

    The project aims to strengthen knowledge and analytical ecosystem, identify innovative business models, engage more women, policy engagement and foster partnerships for coordinated action to address challenges.

    AU-IBAR Director, Dr. Huyam Salih, emphasised the contributions of the livestock sector to national economies and gross domestic product (GDP) and its transformative impact on farming communities.

    As women working in agriculture find themselves disproportionately vulnerable to challenges in the livestock sector, the African Women in Animal Resources Farming and Agribusiness Network (AWARFA- N) launched in July 2018, supported by the AU-IBAR is equipping them with social and economic resiliency skills to combat poverty.

     Dr. Huyam Salih noted that critical issues faced by women in the livestock sector revolve around their constrained access to appropriate, long-term financing solutions tailored to their unique requirements.

    She explained that AWARFA-N’s goal is to scale up initiatives that empower women farmers, increase access to finance and resources they need to strengthen food systems.

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    Operating a comprehensive strategy, AWARFA-N has chapters in Nigeria and other countries. They have been exposed to tools and frameworks to identify opportunities that can be used to empower women smallholder farmers and entrepreneurs, thereby improving livestock production and livelihoods.

    Chairperson, AWARFA-N, Dr Chinyere Ikechukwu- Eneh, stated that the aim of the group is to reach many women and provide entrepreneurship opportunities for them.

    She said the AWARFA-N will assist institutions in designing and implementing interventions for women.The efforts, she continued, are parts of the larger mission to help states across the country to reach the poverty-reduction Millennium Development Goals, including achieving women’s empowerment.

    Small livestock farmers, she  noted, have difficulty accessing loans because they often do not have the necessary guarantees required by banks to take out a loan, and without financing, it’s almost impossible for them to invest and develop their business.This, according to her, perpetuates their financial instability.

    One of the goals of AWARFA-N, Dr. Ikechukwu-Eneh emphasised, is to facilitate their access to loans and increase their income.  Furthermore, she explained that AWARFA-N will pursue partnerships that afford women more protection and greater income stability.

    Apart from this, the AU-IBAR is involved in crucial initiatives to safeguard Africa’s donkey population.

    The recently endorsed report entitled, “Donkeys in Africa, now and in the future’’, has been presented to the heads of state and government of the African Union during the summit that took place last week in Addis Ababa, Ethiopia. The report delves into the essential role donkeys play in rural development, environmental sustainability, and agriculture across the continent.

    Collaborating with key stakeholders such as Brooke, Brooke Hospitals of Animals, and Donkey Sanctuary, AU-IBAR recognises the vital role of working animals, especially donkeys, in supporting the socio-economic development of rural African communities. This collaborative effort aligns with the endorsed decision of the African Commission to preserve donkeys. This decision further supports efforts in implementing the Animal Welfare Strategy for Africa.