Category: Niger delta

A former Delta Commissioner of Finance Olorogun Bernard Okumagba has extolled President Bola Tinubu for taking the bold initiative to fast track the re-booting of the nation’s economy by reducing the tax burden on Nigerians and businesses through the signing of four Executive Orders deferring and suspending the commencement of certain taxes paid by individuals and companies.

The Executive Orders are the Finance Act (Effective Date Variation) Order 2023, which deferred the commencement date of the changes contained in the Act from May 23, 2023 to September 1, 2023 to ensure adherence to the 90 days minimum advance notice for tax changes as contained in the 2017 National Tax Policy.

The second order is the Customs, Excise Tariff (Variation) Amendment Order 2023, which shifted the commencement date of the tax changes from March 27, 2023 to August 1, 2023, also in line with the National Tax Policy while the Third Order suspends the five per cent Excise Tax on telecommunication services as well as Excise Duties escalation on locally manufactured products. The Fourth Order suspends the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles. It also includes the suspension of Import Tax Adjustment levy on certain vehicles

In a statement welcoming the bold step taken by the Tinubu administration to entrench a robust, transformative reform in fiscal policy and effective taxation system for the smooth functioning of the economy, the prominent APC leader in Delta State lauded the immediate establishment of the Committee on Tax Reforms headed by Taiwo Oyedele to not only advise the government on necessary tax reforms, but also drive its implementation. This, he noted, will ensure the achievement of the desired tax law reforms, harmonization of taxes and revenue administration, all of which will boost investor confidence.

According to Olorogun Okumagba, with an efficient fiscal policy regime, effective taxation system driven by tax law reforms and harmonisation of taxes, amongst other measures, government will be well on track to improve our tax-to GDP-ratio, which is ranked one of the lowest in the world, and accounts for why the nation is heavily dependent on borrowing, even borrowing to service debts

Drumming support for Tinubu’s agenda, the former Delta Commissioner of Finance drew the attention of Nigerians to the numerous benefits of deferring and suspending the commencement of certain taxes paid by individuals and companies in the country.

According to him, it will ensure that Nigerian businesses are relieved of undue burden by unfavourable policies because the lack of adequate notice and clarity on the implementation of the changes has before now resulted in significant challenges for affected businesses, including rising costs, falling margins and capacity underutilization.

Other benefits for the economy derivable from the new executive orders on tax deferment and suspension, according to the former Delta State Commissioner of Finance include the need to make revenue levels more progressive and sustainable, reduce the nation’s dependence on natural resource revenues and foreign “handouts”, elevate the role of taxation in state-building and create a greater understanding of its impacts on sustainable growth.

Olorogun Okumagba commended the Tinubu government for committing to frontally tackle the key challenges in the nation’s tax system which include multiple taxes and revenue collection agencies, fragmented and complex tax system, low tax morale, high prevalence of tax evasion, high cost of revenue administration, lack of coordination between fiscal and economic policies, and poor accountability in the utilization of tax revenue.

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He urged the Committee on Tax reforms to expeditiously drive its primary objective to enhance revenue collection efficiency, ensure transparent reporting, and promote the effective utilization of tax and other revenues to boost citizens’ tax morale, foster a healthy tax culture, and drive voluntary compliance.

The former Commissioner requested Nigerians to rally behind the Tinubu administration in its avowed commitment to not only improve Nigeria’s revenue profile but also to create a more conducive and competitive business environment as part of its commitment to institutionalise transformative reforms in fiscal policy and taxation.

• By, Isa Ali Pantami

The Nigeria Data Protection Act 2023 signed into Law by His Excellency, President Bola Ahmed Tinubu GCFR on June 12, 2023, effectively positions Nigeria to take its pride of place in the comity of nations in the very important aspect of data protection and data privacy. In this article, I will discuss the timeline and catalogue the series of events that led to the signing of the Data Protection Bill.

The first landmark event took place on January 25, 2019, when, as the Director-General and Chief Executive Officer (CEO) of the National Information Technology Development Agency (NITDA), I signed the Nigeria Data Protection Regulation (NDPR). This was a subsidiary legislation that derived its powers from the NITDA Act 2007, with specific reference to Section 6.

Prior to the signing of the NDPR 2019, Nigeria had no policy instrument that focused on supporting data privacy and data protection. Issues bordering around data protection were marginally mentioned in Section 37 of the 1999 Constitution, as amended which says “The privacy of citizens, their homes, correspondences, telephone conversations and telegraphic communications are hereby guaranteed and protected.” It was also briefly mentioned in the laws of the National Identity Management Commission (NIMC), National Human Rights Commission (NHRC) and a few others, but none had data protection as its primary focus.  

On assumption of office as the CEO of NITDA in October 2016, I realised there was a huge gap in the area of data protection. This, my strong interest in datafication and my conviction that it would serve as a catalyst for Nigeria’s effective participation in the Fourth Industrial Revolution (4IR), informed my decision to lay a strong emphasis on Information Technology Law at NITDA, as well as collaborate with leading universities in Nigeria to establish a course on Information Technology Law. This approach enabled us to develop the requisite capacity for developing our indigenous version of the European Union’s General Data Protection Regulation (GDPR) and a number of African countries eventually partnered with us to study and adapt the NDPR.

In just two years of the implementation of the NDPR, a novel sub-sector of the economy was created, 7,680 Nigerians were employed. Nigeria was appointed as the Vice Chair of the Data Protection Laws Harmonization Working Group at the African Union (AU)and was the only country in Africa to publish a data protection report in two years.

Read Also: Expert lauds signing data protection bill into law

To further consolidate the gains made through the NDPR 2019, I sent a memo to the former President, His Excellency President Muhammadu Buhari GCFR on January 13, 2022, citing “an urgent need to establish an institution as a government that will focus on data protection and privacy for the country.  An independent Authority is a pre-requisite for international acceptance of Nigeria’s data protection law. The Adequacy referential of the European Union’s Article 29 Working Party; Convention 108 on the Automatic Processing of Personal Information; the European Union General Data Protection Regulation (EU-GDPR) and Association of Southeast Asian Nations (ASEAN) all prescribe this standard.”  

The institution would be an offshoot of NITDA, the Agency that developed and was implementing the NDPR 2019 at the time. Furthermore, I recommended that Dr Vincent Olatunji, the then Director, eGovernment Development and Regulations Department and Chairman of the NDPR Implementation Committee at NITDA, serve as the pioneer National Commissioner/CEO of the new institution. The proposed institution was to be called the Nigeria Data Protection Bureau (NDPB). The prayers in that memo were approved and President Buhari appointed Dr. Olatunji as the CEO of the NDPB for an initial term of five years.

The NDPB started operations on February 4, 2022. Part of its mandate was to galvanise all stakeholders for the drafting of a National Data Protection Bill that will ultimately transform the National Data Protection Bureau into the National Data Protection Commission (NDPC). Section 7 of the Nigeria Data Protection Act 2023, makes the Commission independent whilst section 64 makes the Commission the successor of the NDPB. Thus by virtue of section 64, NDPB automatically becomes NDPC.

As part of the process of ensuring that Nigeria has a principal legislation for enabling data protection and privacy, a draft data protection bill was developed after several stakeholder engagements, comprising institutions and individuals in both the public and private sectors. I presented the draft bill at the Federal Executive Council (FEC) on January 25, 2023.  After a very robust discussion and a few amendments, the draft bill was approved. Three Senior Advocates of Nigeria (SANs), who were also FEC members, made contributions that significantly enhanced the draft bill and converted the Bureau’s status to a Commission.

Following the approval of the draft bill, the Council mandated me to liaise with the Attorney-General of the Federation and Honourable Minister of Justice to forward it to the National Assembly as an Executive Bill for passage in both chambers. Following the transmission of the bill to the National Assembly, I also had several engagements with the legislature to promote the bill and give clarity where required.

The draft bill was independently reviewed by the Senate and the House of Representatives after the letter of transmission of the Executive Bill from the President was read in both chambers on April 4, 2023. After comprehensive deliberations by the lawmakers, the Senate passed the Bill on May 3, 2023, and the House passed it on May 23, 2023. President Tinubu assented to the harmonised bill on June 12, 2023.

The fact that the journey between the transmission of the Executive Bill to the National Assembly and the signing into law by Mr. President took just 70 days is a testament to the fact that the Bill was given the pride of place that it deserves in our digital economy journey as a country. The signing of the Nigeria Data Protection Act 2023, along with the Nigeria Startup Act 2022, both of which I had the unique privilege of midwifing, are very critical and have created a very good foundation for the development of a robust digital economy and a sustainable knowledge-based economy.

I would like to extend my hearty commendations to President Bola Ahmed Tinubu GCFR and former President Muhammadu Buhari GCFR for their invaluable support towards the signing of the Nigeria Data Protection Act 2023. I am confident that these laws will accelerate the digitalisation of the different sectors of the Nigerian economy and history will be kind to all those that played a role in the process.

_Prof Isa Ali Ibrahim (Pantami) CON, former Minister of Communication and Digital Economy, is Professor of Cybersecurity, Federal University of Technology Owerri_

Stakeholders from Niger Delta zone have expressed support for President Bola Tinubu’s decision to retain the Managing Director of Niger Delta Development Commission (NDCC), Chief Samuel Ogbuku and two executive directors, following the dissolution of the commission’s board.

The stakeholders expressed the support at a news conference jointly organised by some Niger Delta groups in Uyo on Monday.

The News Agency of Nigeria (NAN) reports that the groups included: Movement for Survival of Izon Ethnic Nationality (MOSIEND), Civil Society Organisations (CSOs), Community-Based Organisations (CBOs) and Non-Governmental Organisations (NGOs).

The stakeholders, in a statement issued at the end of the news conference and signed by Mr Afoegba Goodyear, expressed their total support for the president’s decision on the commission.

The group said that the Ogbuku-led administration should be given the opportunity to continue the ‘good work’ it had started, adding that it was for the benefit of the people of the region and Nigerians in general.

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NAN recalls that the president had, on June 19, announced the dissolution of the boards of all federal government parastatals, agencies and institutions, maintaining that the decision was done in good faith.

“For the Niger Delta Development Commission (NDDC), it was a matter of mixed reactions, when the commission was named among the parastatals and agencies dissolved by the Federal Government.

“We are, however, relieved to know that the managing director, the executive director (projects) and the executive director (finance and administration) were retained to manage the commission, pending the constitution of a new board.

“As stakeholders in the Niger Delta region, we recognise the sacrifices and efforts expended by sons and daughters of the region before the last board was constituted,” they said.

The stakeholders noted that the peace and progress of the region mattered more to them now than the fight for positions and appointments, adding that it was high time the fight over the commission ended.

“We appreciate the news of the retention of the Managing Director and the other aforementioned executive directors. We are gladdened by this kind gesture of the President,” they said.

The groups, while acknowledging the fact that the dissolved NDDC board started-off a good note, appealed to Tinubu to consider members of the dissolved board for reappointment and be allowed to operate.

“We find very distasteful the naysayers who are condemning the good intentions of Mr President in retaining the management committee,” they further said.

The stakeholders assured Ogbuku and his team that the people of the region were solidly behind them in the running of the commission and that they would not succumb to any blackmail or intimidation.

(NAN)

• By Willie Etim and Ifeatu Agbo

The sound of trumpets and drums filled the air at the headquarters of the Niger Delta Development Commission, NDDC, on Thursday, June 22, 2023, when Dr Samuel Ogbuku, returned to continue with his duties as the Managing Director and Chief Executive Officer of the interventionist agency.

It was a rousing reception for Ogbuku, who had been directed by the Permanent Secretary, Ministry of Niger Delta Affairs, Dr Shuaib Belgore, to continue to oversee the affairs of the Commission until a new board is constituted by the President and Commander-in Chief of the Armed Forces.

There was palpable apprehension at the NDDC before Ogbuku got the nod to return to his duty post. Understandably, the termination of the Boards of Federal Government Parastatals by the President on June 19, 2023 kicked up speculations.

That uncertainty left many stakeholders anxious and expectant. From all indications, the atmosphere was charged and there were expectations for something to break the ice. So, when Ogbuku was given a return ticket, it was greeted with joy which was demonstrated by the jubilation at the NDDC headquarters.

Youth groups, including women, lined up at the NDDC main gate to welcome Ogbuku, whom they affectionately referred to as “a good man.”

The leader of one of the groups, the Wakirike Youth Leaders Forum, Comrade Anthony Josiah, said they came to show solidarity with the Managing Director for surviving the dissolution of the NDDC Board.

The youths, who danced to various solidarity songs, carried placards expressing support for Ogbuku, whom they described as a gift to the Niger Delta, noting: “He is humble, calm, and calculated in his vision to transform our region.

“We are grateful to President Bola Tinubu because one of the biggest problems of this Commission is the frequent changes in leadership. If this MD is allowed some more time, he will consolidate on the foundation of the reforms he has already started.

“The Wakirike group wants the NDDC to initiate programmes that would enable us acquire skills that can help us to fend for ourselves.”

Another youth leader, Comrade Ken Akpos, praised the NDDC boss for introducing programmes that would help in training youths and empowering them at a time unemployment was biting hard across the country.

According to him, training and empowerment are the areas that need the most attention from the NDDC because of the high levels of unemployment and poverty in the Niger Delta region.

He said: “As you know, Ogbuku’s appointment is a brain child of the agitations of youth groups and Civil Society Organisations. So, he cannot afford to disappoint us.

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“The youths of the region are solidly behind the Managing Director and we have confidence in his leadership. We thank President Tinubu for giving Ogbuku another chance to prove his mettle.”

It is instructive to note that the Niger Delta region has a young population structure, with about 60 per cent of the population below the age of 30 years. The region also has a low dependency ratio of about 0.6, meaning there are more working-age people than dependents.

Akpos stressed the need for the NDDC to focus on training, empowerment and job creation, stating that it was critical for the region’s development and the creation of a more vibrant and sustainable economy.

He advised: “The NDDC should invest more in skills training and empowerment programs for the youths and women in the region. This will enable them to start businesses or get employed in existing ones.

“The NDDC should promote the growth and development of small and medium enterprises in the region. This will create more jobs and wealth for the people. It will also stimulate innovation and entrepreneurship in the region.”

Addressing the youths, the NDDC Managing Director, expressed delight that they came out in numbers to show solidarity with the Commission, observing that it showed they had the interest of the Niger Delta region at heart.

Ogbuku told the youths that with the recent passage of the NDDC 2023 budget, more youth programmes would be rolled out to ensure that they were meaningfully engaged.

He noted that besides physical infrastructure, the NDDC was making significant difference in the lives of youths through various human Capital development programmes.

The NDDC boss also held an interactive session with management and staff of the Commission after the reception at the gate. He told them that President Ahmed Bola Tinubu charged the Commission to do more to develop the Niger Delta region and impact positively on the lives of the people.

Ogbuku said that he was given “New Commandments” when he visited the President recently at the Presidential Villa in Abuja. He remarked that the President expressed disappointment at the level of underdevelopment in the Niger Delta region and the performance of the NDDC as an interventionist agency in the oil-rich region.

According to him, President Tinubu decried the mismanagement of resources of the Niger Delta region and directed the management team to return to the Commission and ensure that a new NDDC emerged.

The NDDC boss said that President Tinubu was anxious to reposition the NDDC to ensure that it worked in the interest of the people of the region, stating: “I made a pledge to Mr. President that all resources at the Commission’s disposal will be judiciously utilized to increase and improve the impact of the NDDC in the region.

“The President has the interest of the Niger Delta people at heart and is expecting us to bring out the best in the people of the region. I want to write my name in gold by building and raising people, and also make amends where necessary.”

The NDDC boss, who reiterated his commitment to building people and making indelible marks in the development of Niger Delta region, also solicited the cooperation of staff.

He announced that the Commission was planning to engage a multinational professional services consultant, KPMG to help the Commission set up a viable and sustainable Corporate Governance structure.

Speaking on behalf of the staff, the Chairman of NDDC Staff Union, Comrade Anthony Gbendo, appealed to the management to expedite action on the staff conditions of service, which he noted was long overdue for approval.

He told the Managing Director that the staff were happy that he was retained to continue to work for the development of Niger Delta region, assuring him of the loyalty and support of the work force.

Other members of staff, who were visibly delighted to see their boss back to work, applauded as their chairman expressed support for Ogbuku. One of them, Dr. Oscar Gbaishomore, spoke passionately on how the NDDC has been positively transformed in the last six months with Ogbuku on the saddle.

Another group that took interest in the leadership of Ogbuku is the Board of Trustees of Com­munity Development Commit­tees of Oil and Gas Producing Areas of the Niger Delta, CDC, which said it was delighted that the Chief Executive Officer was endorsed to continue.

In a statement signed by the Chairman Board of the CDC, Joseph Ambakeder­imo, said that the dissolution of the boards of government institutions and agencies was the right step, except for the NDDC board, which was inaugurated in January this year, adding that the Commission should have been spared taking into account the fact that it operated without a board for four years.

They stated: “While we applaud the Federal Government for re­taining Dr. Samuel Ogbuku to take charge, it must have recognised that his vision for the Niger Delta region is in tandem with that of Presi­dent Tinubu.

“Dr. Ogbuku is found fit and competent so far in handling development issues as it affects the region hence, he was asked to stay on.”

President Tinubu had authorised the dissolution of the boards of parastatals and government agencies while retaining chief executives to report to him directly through the Permanent Secretaries of the respective ministries.

Agbo, a media aide to the NDDC managing director and Etim write from Port Harcourt, Rivers State

Ex-militants in Akwa Ibom have urged Governor Umo Eno to set up a special security outfit to checkmate the activities of sea pirates in the waterways of the state.

Leader of the group, ‘General’ Nico Sintei, who made the call in Uyo at the weekend,  expressed concerns over the incessant attacks on fishermen in the state.

Sintei said without the security outfit in place, sea pirates would continue to see Akwa Ibom as a safe haven for their nefarious operations.

He asked Governor Eno to emulate some state governors in the Southern region of the country including Delta and, Bayelsa who have been able to reduce the issue of sea piracy to the barest minimum after floating their own security outfit.

“The issue of frequent attack of Akwa Ibom fishermen on the high sea over the years has become so alarming these days.  And the security challenge has seriously affected fishing business in the state.

” As we speak many fishermen no longer go fishing because whenever they go to the high sea to fish, the sea pirates will attack them, seize their outboard engines, and then   asked to pay money before their Engines would be released to them.

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“Even, sometimes,  after collecting the money they will still not release the outboard engines to the fishermen. They also kidnap fishermen for ransom. And those terrorising Akwa Ibom waterways come from Rivers, Bayelsa, and Delta.

“Before, the rate of sea piracy in those states was more alarming and worse than what we are experiencing in Akwa Ibom today. But  what what government of Bayelsa and Delta states did was to float Security outfits combining security agents and people that understand their terrain.

“And they were able to reduce sea piracy to the barest minimum. That’s why, we the ex-agitators are calling on governor Umo Eno led admininistration to float similar security outfit to check activities of sea pirates who now see this State as a safe haven to operate, because it doesn’t have a security outfit”

Sintei also called on governments to look into the of non inclusion of the state and Cross River State from the Pipeline Surveillance contract, aimed at tackling Oil theft and pipeline vandalisation in oil producing States of the Niger Delta region.

 “Akwa Ibom and Cross River States are the only two out of the Nine (9) Niger Delta oil States not included in the Surveillance contract. I don’t know why, so  I am calling on both Akwa Ibom state and Federal governments to look into it. These states are part of oil producing States,” General Sintei appealed

The Partnership Initiative in Niger Delta (PIND) and the Ford Foundation have called on host communities of oil and gas to trust the process of implementing the Petroleum Industry Act (PIA) to enable them the overall benefits of the Act.

Speaking to over 100 stakeholders in Port Harcourt at a one-day PIA training and sensitisation for host communities, PIND’s  Programme Director, Essien Effiong, appealed to participants to take advantage of the provisions contained in PIA.

Effiong advised host communities to develop positive attitude towards the PIA and make efforts to fulfill all its requirements to enable them reap all benefits enshrined in the Act. 

He  said the training  funded by Ford Foundation was designed to provide community leaders, youths, women leaders, government representatives and other stakeholders deep and better understanding of the PIA.

He said the training was designed to equip the stakeholders with perfect understanding of their roles in the Host Community Development Trust (HCDT).

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In his speech, the PIA Consultant for PIND Foundation, Ineba Bob-Manuel, observed that most members of Community Board Committee lacked knowledge of the provisions of the Act. 

Bob-Manual said: “I think from the interactions we can see that when a question was raised on who has prior knowledge of the PIA, only two persons raised their hands. 

“So this obviously brings to the open the fact that communities need to be sensitised. It is very important for the various communities to understand what the Act says so that they would be able to work towards ensuring proper implementation.”

Also, the Advocacy Manager, PIND, Chuks Ofulue, said the training became necessary following the cumbersome nature of PIA as a new law.

He insisted that for the host communities to benefit from the Act they must understand their roles and expectations and set up the governing organs of the Host Community Development Trust.

He said: “One of the things that the participants must understand is that now the community members themselves are responsible for there fate. They should understand that the PIA has given them lot of power to be able to determine their fate in the process of development”.

One of the participants, Prof. Christopher Ahiankwu, a member of BOT of Ogba/Egbema/Ndoni cluster communities of Agip, called on the oil multinationals not to misinterpret the provisions of the PIA 

He said: “The intension of the training is good. If all that is in the PIA can be implemented the way it is, it will be nice for the host communities. It is a fantastic law for the communities but the issue is the trust. 

“The trust is from the IOCs and government angle, because from the look of things it is not impossible for government to arm twist the PIA for their benefit and the same with the IOCs. At the end of it all it is the community that will lose out.”

Bayelsa State Government has donated a three+storey building equipped with the state-of-the-art facilities to the Federal Government for the use of Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

The building, which is to serve as Center For Conflicts Resolutions in the Niger Delta Region and situated at Yenegoa, the capital of Bayelsa, used to be headquartered in Lagos.

In a grand handing-over ceremony, Bayelsa Governor Douye Diri asserted that his administration decided to donate the building, which was originally designated as the State Ministry of Finance to the NUPRC to further promote peace in the region.

The Governor thanked Mr Government Tompolo and relevant stakeholders who contributed in making sure that the relocation of the Center to the state came to pass.

Diri maintained that his administration would continue to pursue things that would engender peace in the state for the common good of its people and the nation.

 Commissioner for Health Safety Environment and Community (HSEC), Captain Tonlagha, who led the NUPRC team on behalf of the Commission Chief Executive, Engr Gbenga Komolafe, thanked the state helmsman for the gesture, assuring that the Commission would always work round the clock at ensuring that peace in the region was achieved through dispassionate and timely resolution of conflicts.

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“Your Excellency, while appreciating you for the donation of this wonderful and beautiful edifice to the nation through our Commission, the NUPRC, we want to assure that all issues relating to conflicts in the Niger Delta Region, will always be speedily attended to. In doing this, we shall stop at nothing, in achieving the desired peace in the region and ensuring the dividends to all oil producing communities in the Niger Delta” the Executive Commissioner, assured.

He appreciated the Environmental Activist, Mr Tompolo, for his avowed interest in seeing to it that the region becomes more peaceful, especially with his intervention at ensuring that the Center was brought to Bayelsa State.

Among those who graced the occasion include Secretary to the Bayelsa State Government, Rt Hon Alabo Gideon Ekeuwei, Chief Benjamin Ogunnubi,Head, Warri Regional Office, Sylvester Bighoro, Bayelsa State Co-ordinator, NUPRC, Kingsley Ehiaguina, Assistant Director, Community NUPRC and the Consultant,among others.

• By Olorogun Bernard Okumagba

It is indeed fitting and appropriate to applaud the bold step taken by President Bola Ahmed Tinubu (GCFR) on the unification of the Naira exchange rate and removal of subsidy on Premium Motor Spirit (PMS). Timely and appropriate, these policy initiatives will unlock the huge potentials for investment, jobs and capital flows, thereby enhancing investor confidence in our economy.

The extant regime where the Naira had several rates versus the dollar and which promoted unproductive arbitrage, rent seeking and unfair competition significantly hurt the nation’s economy. Also, the previous PMS subsidy regime promoted corruption and had become a massive drain pipe on our country’s finances. Having said that, the challenges of the Nigerian economy go beyond exchange rate unification and fuel subsidy removal. There are fundamental issues that need to be addressed if rapid progress must be made in the new political dispensation. I will however focus on the unification of the Naira exchange rate and the key issues arising from the policy.

Contemporary economics holds that the exchange rate is influenced by six main factors viz: inflation, interest rates, current account deficit, public debt, terms of trade and political stability/economic performance. A cursory glance at how Nigeria ranks on these indicators would reveal that we have been performing below par. Inflation for instance increased from 9% in 2015 to 22% in 2023. Interest rates (MPR) jumped 500 bps from 13% in 2015 to 18% in 2023. As for the Current Account Deficit, the challenge is that it is more structural rather than cyclical. Structural deficits are underpinned by under-investments, relatively low productivity, persistently high relative inflation rates and lower cost competition. And these are all visible indicators evident in the current state of the Nigerian economy. In terms of public debt, Nigeria’s total public debt stock stood at N46.25 trillion (excluding the N22.7 trillion Ways and Means loans from the CBN) as of March 2023. With the floating of the naira and the accompanying depreciation, this figure is expected to balloon further. Ordinarily, there is nothing wrong with borrowing. If a country uses external debt to finance investments that have higher returns than the interest rate on the debt, the country can remain solvent. The question is what have we done with these vast amounts of debt over the years?

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Flowing from the above, it can be safely posited that the problem with Nigeria’s exchange rate goes just beyond the multiple rates and pseudo-fixed regime adopted in recent years. There is a fundamental need to address other pressing issues highlighted above. A few suggestions that could assist in resolving these issues are enumerated below:

TAMING INFLATION, CURBING FOOD PRICES, AND IMPROVING FOOD SECURITY

Food and energy prices have remained at the core of Nigeria’s inflationary pressure over the years and urgent steps need to be taken. To cushion the impact of higher spending on petrol which affects transportation from the farm gate to the markets and raises the costs of food between the farm and the fork, there is need to embark on widescale investments in agricultural production. Production of staple foods need to be boosted by policies that would attract investments into such ventures. For instance, Nigeria is a top three producer of sorghum globally with 6.7 million metric tonnes annually. The USA tops the charts with 11.4 million metric tonnes per annum. Incidentally, sorghum grows naturally in about 21 states countrywide. Nigeria also leads the world in the production of other staples like yam and cassava. The Food and Agricultural Organization (FAO) ranked Nigeria as one of the World’s largest producers of yam with about 60% of the Global production of the product. In terms of cassava, the FAO also posits that Nigeria is the largest producer of cassava in the world, producing one-fifth of the world’s output. Despite this, the country is yet to meet sufficient domestic composite demand for cassava. Focusing on the production of these three staples and their derivatives alone can earn Nigeria huge export revenues, temper food inflation and improve food security. There are many other crops that Nigeria produces very well. In fact, the country ranks 6th globally in terms of countries with the most arable land with over 84 million acres of arable land. The top five countries are United States, India, Russia, China, and Brazil.

BOOSTING FOREIGN EXCHANGE (FX) EARNINGS VIA ECONOMIC DIVERSIFICATION

The convergence of the rates is only the first step in curing the ills of the FX market. The next step is the most crucial and that is to boost supply into the market. The government should prioritise supply of dollars to support the naira float. In a floating exchange rate regime, there should be sufficient availability of foreign exchange to defend the currency against the actions of speculators. History recounts what happened to Britain on the infamous Black Wednesday when the pound suffered its steepest intraday decline due to speculatory attacks. it is instructive to note that steps must be taken to prevent any speculatory attack on the naira.

To address this problem, there is a stringent need to boost the sources of foreign exchange outside of the current crude oil exports. This is the time to diversify the Nigerian economy away from fossil fuel dependence and invest profitably in non-oil resources. It is estimated that Nigeria is relatively rich and replete with solid minerals in commercial quantities. The administration should now focus on how to profitable exploit the vast amounts of solid minerals available in almost every state of the federation. According to the Nigerian Investment Promotion Commission (NIPC), Nigeria has 45 different solid minerals buried in various locations across the country. But these minerals are largely untapped. Both local and foreign investors can leverage on this multi-billion-dollar market. But because of the unwavering focus on crude oil in the last 60 years, successive governments have not paid enough attention to the exploitation of these vast reserves of solid minerals estimated to be worth billions of dollars. Most of the mining of these solid minerals including precious ones like gold is done by artisanal miners who are not licensed or regulated and who are being exploited by their foreign patrons operating below the line in key states like Zamfara, Kaduna, Katsina, Kebbi, Kwara, Osun, etc. The data from the NIPC estimates that the country loses about $40billion annually in unexploited gold. Imagine if this was added to our dwindling export revenue from crude oil. It would literally double our export earnings, improve our current account position, ameliorate our debt service/revenue issues, and make available huge sums of cash to be invested in the exploitation of other solid minerals required for industrialisation.

Investing in solid minerals will not only serve as a good source of foreign exchange earnings but could assist in resolving Nigeria’s huge energy poverty. For instance, the key metal components of the lithium battery which is crucial to solar energy adoption are found in commercial quantity in Nigeria. To date, a key discouraging factor for the rapid adoption of solar power systems is the cost of purchasing and replacing batteries which are often sourced cheaply from Asia and have very low quality and longevity. Imagine how quickly solar would become a way of life for Nigerians if the batteries could be manufactured locally and sold at comparatively affordable rates.

Conclusively, whilst applauding the new administration for the bold and rapid steps taken so far to steer the economy in the right direction, it is pertinent to say that the work is just beginning and all stakeholders within the private and public sectors must be ready to support the administration’s effort through effective collaboration, hard work and sacrifice. We must all stand ready to make our dear nation great again to enable it occupy its justified place amongst its peers in the comity of nations in the coming years.

Olorogun Bernard Okumagba, FCA is a former Delta State Commissioner for Finance