The Nation Newspaper

Category: Saturday Magazine

  • Power sector reforms raise hopes, yet challenges linger

    Power sector reforms raise hopes, yet challenges linger

    More than a decade after Nigeria’s power sector privatisation, millions still grope in darkness while industries run on generators. Despite high hopes, the journey has been turbulent—marked by systemic dysfunctions and unmet expectations. Yet, recent reforms under the Bola Tinubu administration, including a bold new electricity roadmap, are reigniting hope. The journey, however, is far from over, reports Assistant Editor MUYIWA LUCAS.

    The Nigerian power sector has experienced a turbulent journey over the years. Since its privatisation in November 2013—which unbundled the sector into three components: Generation, Transmission, and Distribution—efforts to revitalise electricity supply have largely fallen short of expectations. For many Nigerians, privatisation has failed to deliver the promised stability, making reliable power supply an elusive dream. Yet, the importance of consistent electricity to economic growth cannot be overstated.

     The absence of stable power has crippled small-scale industries and artisans, forcing many out of business. According to the Manufacturers Association of Nigeria (MAN), electricity shortages cost the Nigerian economy approximately N10 trillion annually—about two percent of the GDP. This chronic deficit has positioned Nigeria among the most challenging environments for business, ranking 171 out of 190 countries on the World Bank’s Ease of Doing Business index. Recognising this challenge, the Tinubu administration took decisive action early in its tenure to reposition the sector.

    In the past two years, the government has introduced reforms and laid down frameworks aimed at a transformative shift in the electricity landscape. One of the most significant moves was the recent approval of the National Integrated Electricity Policy (NIEP), a roadmap for the Nigerian Electricity Supply Industry (NESI). First submitted in December 2024, the NIEP seeks to unlock $122.2 billion in investments between 2024 and 2045 to revitalise the sector. The policy aligns with the revised Electricity Act 2023 and promotes energy diversification, aiming to move beyond reliance on hydropower and gas.

    Instead, the roadmap envisions integrating solar, wind, hydrogen, biomass, nuclear, and carbon capture technologies. It also earmarks $192 million over five years (2024–2028) to strengthen transmission infrastructure. “This policy marks a significant evolution from the outdated 2001 National Electric Power Policy. It enables the growth of state-level electricity markets and decentralised energy planning,” said Power Minister Adebayo Adelabu. “It’s a living document that evolves with the sector’s needs, stressing innovation, collaboration, and consumer protection.”

    The administration has set an ambitious goal: to achieve at least 8,000 megawatts (MW) of power generation by 2027. According to Adelabu, the country has already seen progress. On March 2, 2025, Nigeria recorded an all-time high available generation capacity of 6,003MW, followed by a peak generation of 5,801.44MW two days later. Average daily generation for the first quarter of 2025 stood at 5,700MW, up from 4,100MW in Q3 2023—an increase of 1,600MW, representing a near 40% growth since the administration took office. “It took Nigeria four decades to hit 4,000MW.

    In just 18 months, we’ve added 1,700MW. If this momentum is sustained, we’re confident of reaching our 8,000MW target by 2027,” Adelabu affirmed. The administration has also made strides in recovering dormant capacity. Through strategic interventions at the Niger Delta Power Holding Company (NDPHC), 232.5MW was restored from idle assets at the Omotosho and Benin power plants. Additionally, decentralised energy projects have begun to light up rural communities. Notable projects include a 550kWp mini-grid in Bakin Ciyawa and Kwande (Plateau), a 440kWp installation in Cross River, a 990kWp grid serving 3,900 households in Niger State, and a 510kWp solar hybrid grid across Osun State. These interventions signal a new dawn—one where Nigeria’s power sector can finally meet the aspirations of its citizens, power its industries and stimulate economic growth.

    In recent months, the Niger Delta Power Holding Company has ramped up construction, upgrades, and installations of critical infrastructure across the country. This includes 14 new transmission lines and the rehabilitation of existing ones, such as the 2x132kV line bay extension at the TCN Papalanto substation in Ogun State and the 65km 330kV double circuit Afam–Ikot Ekpene transmission line. Notably, the government is also facilitating the full evacuation of electricity from key hydropower assets. At present, the Zungeru Hydropower Plant is evacuating 550MW of its 700MW capacity, while the Kashimbila Plant is operating at its full 40MW capacity. Beyond this, early-stage development of the Makurdi Hydro Project — with a potential capacity of 1,500MW — is underway, alongside efforts to revitalise the Kaduna Thermal Plant.

    Once stalled for six years, the 215MW Kaduna plant is now 87 per cent complete and expected to be operational by the end of 2025. Yet, beneath the impressive figures and initiatives lies a stark challenge: the financial distress of the Generation Companies (GenCos). Mounting debts owed by Distribution Companies (DisCos) have placed a significant burden on GenCos, hampering their ability to operate efficiently. In response, President Bola Ahmed Tinubu recently convened a crucial meeting with the leadership of Nigeria’s power-generating companies to address the N4 trillion debt threatening the sector — N2 trillion of which accrued in 2024 alone, with the rest being legacy debts. The GenCos have expressed grave concern about their diminishing capacity to service loans, maintain infrastructure, and invest in expansion. Col. Sani Bello (Rtd), Chairman of Mainstream Energy Solutions and head of the Association of Power Generating Companies (APGC), warned of a potential collapse of the sector without urgent intervention.

    READ ALSO: One day with President Tinubu

    Echoing this, Kola Adesina, Chairman of Egbin Power and First Independent Power Limited, described the situation as a national emergency, underscoring the vital role of electricity in powering industries, homes, and hospitals. Dr. Joy Ogaji, CEO of APGC, further highlighted systemic issues such as irregular gas supply, payment defaults, and foreign exchange volatility — noting the naira’s sharp depreciation from N157 to over N1,600 per dollar in a decade.

    Presidential Power Initiative marks a renewed drive

    Considering these challenges, President Tinubu’s administration has reinvigorated the Presidential Power Initiative (PPI), giving a fresh boost to the long-standing Siemens project. Originally conceived in 2018 to expand Nigeria’s electricity generation, transmission, and distribution capacity, the PPI is being driven with renewed vigour to support national development and economic growth.

    The President fast-tracked the project through the signing of an Acceleration Agreement shortly after taking office. This move paved the way for key milestones, including a redefined technical roadmap. Under this plan, Siemens Energy will focus exclusively on upgrading transmission infrastructure via a turnkey approach, while the distribution scope will be handled by other reputable Engineering, Procurement, and Construction (EPC) firms with strong financial and technical capacities. The overarching goal is to add 4,000MW to the national grid by 2026, with an additional aspirational target of 2,000MW — as directed by the Economic Management Team in 2024.

    Already, the pilot phase has seen the successful installation and commissioning of 10 power transformers and 10 mobile substations across the country. In 2024, the initiative focused on consolidating these gains and launching the main phase of the project. In parallel, the Federal Government-owned FGN Power Company has completed several transmission projects under the PPI banner, collectively adding over 700MW in transmission wheeling capacity to industrial zones, homes, businesses, and institutions. Strengthening transmission and distribution capacity Transmission remains a central pillar of Nigeria’s electricity overhaul.

    Under the PPI’s pilot phase, infrastructure upgrades across 13 locations added 700MW to the grid. Between 2024 and 2025, more than 70 new transformers were installed by the Transmission Company of Nigeria (TCN) using a mix of internally generated revenue and external support from the World Bank and African Development Bank’s Nigeria Electricity Transmission Project. These upgrades have expanded the grid’s transformation capacity by over 12,000MVA. Furthermore, the 2025 Appropriation Act includes a ₦25 billion allocation for the completion of ongoing transmission projects. Structural work is also progressing to regionalise the national grid through the Eastern and Western Supergrid frameworks — a move aimed at improving resilience and minimising system collapses. In the distribution space, ongoing reforms are targeting underperforming DisCos.

    Regulatory agencies have instituted stricter performance monitoring mechanisms to ensure accountability and service improvements. The Ministry of Power has also expanded energy access through initiatives like the Energising Education Programme (EEP) and the Distributed Access to Renewable Energy Scale-up (DARES) initiative. The EEP, which aims to provide reliable, clean energy to 37 federal universities and 7 teaching hospitals, has seen seven of these projects completed and ready for commissioning. In a further push to localise power innovation, the Rural Electrification Agency (REA) signed a landmark agreement with Oando Clean Energy to establish a 1.2GW solar power plant with an integrated recycling line for solar panels. This is expected to significantly boost sustainability and local content in the renewable energy ecosystem.

    At a recent energy sector engagement, Adelabu laid bare the stark reality threatening the backbone of the nation’s electricity transmission system: inadequate financing. He raised an urgent call for the Transmission Company of Nigeria (TCN) to be included in national appropriation, warning that the agency’s sole reliance on Internally Generated Revenue (IGR) is no longer sustainable. “They are short of funds; they operate solely on their IGR, which has been nose-diving over the years,” Adelabu lamented. “What they get monthly cannot even pay salaries, let alone maintain ageing infrastructure or expand transmission networks.” This admission comes amid wider conversations around the deteriorating state of Nigeria’s power sector—a complex web of dysfunctions that has left millions in darkness, stalled industrial productivity, and strained critical institutions like universities and hospitals.

    Perhaps the most damning indictment in the sector lies with the Distribution Companies (DisCos), whose decade-long performance has, by the Minister’s own admission, fallen woefully short. “We need to get tough with the DisCos,” Adelabu said pointedly. “Whatever we do in generation does not mean anything to consumers if it is frustrated at the distribution points.” Originally expected to be backed by technical partners during the 2013 privatisation, many DisCos merely paid lip service to such partnerships, which, in most cases, dissolved within months. Instead of channelling investments into improving infrastructure, stakeholders allege that many investors prioritized debt servicing over service delivery. This gap has stoked public anger. The push for cost-reflective tariffs—a key reform being promoted by the Ministry—has triggered widespread backlash. Critics argue that such pricing mechanisms are premature in the absence of metering and accountability.

    Writing in a national newspaper, columnist Tunji Adegboye called the tariff reform “a ruse” in a system where over seven million customers are billed based on estimates. “I have paid N436,600.58 in just a few months due to questionable estimated billing by Ikeja Electric. They yank off 60 percent of every amount I vend, giving me only 40 percent value,” Adegboye recounted, questioning how a N132,000 disparity arose due to the absence of a functioning prepaid meter. Stakeholders suggest that subsidies should be diverted from the DisCos and used instead to fund local meter manufacturing firms. Mass deployment of meters, they argue, is a more just and impactful intervention.

    The banding dilemma

    A further layer of controversy surrounds the banding system, which classifies consumers into tariff groups based on hours of supply—Band A receiving the most power at the highest rates. This system, while designed to incentivise improved supply, has sparked allegations of social injustice. Power is disproportionately channelled to high-paying urban clusters, leaving rural and low-income communities languishing in blackout. Even essentials public institutions are not spared. Universities, hospitals and research institutes, classified under Band A, have been saddled with crippling electricity bills. Earlier this year, the Benin Electricity Distribution Company (BEDC) disconnected the University of Benin (UNIBEN) over a disputed bill exceeding N250 million—triggering student protests and a near standstill in academic activities.

    At least 10 public universities with the highest 2024 budgets have reportedly spent over N75 billion on electricity alone. UNIBEN’s monthly bill surged from N80 million to N280 million under the new tariff regime. Ahmadu Bello University (ABU) reportedly faces monthly bills of N300 million. Immediate past Vice Chancellor of the University of Lagos, Prof. Oluwatoyin Ogundipe, put it bluntly: “No Nigerian university, particularly a public one, can afford the electricity costs imposed by the DisCos.” UNILAG’s power bill for 2021 stood at N1.7 billion. The government subsidy? A meagre N150 million—and it was never fully disbursed. The industrial sector, too, is reeling under the pressure.

    Manufacturers cry out

    The Manufacturers Association of Nigeria (MAN) has voiced strong objections to the 250 per cent increase in tariffs for Band A customers, warning that such rates—now around N225/kWh—are unsustainable. Rising energy costs have forced companies to scale down production, raise prices, or relocate to more power-stable regions. For manufacturers whose margins are already squeezed by inflation and forex instability, the tariff hike could be the last straw. A failing grid Perhaps the most visible sign of collapse is, quite literally, the collapse of the national grid. Despite receiving over $4.36 billion in loans from the World Bank across a decade—much of which was earmarked for stabilising the power sector—Nigeria’s grid remains fragile.

    Data from the Nigerian Electricity Regulatory Commission (NERC) shows that the grid collapsed 93 times between June 2015 and May 2023. A single failure plunges swathes of the country into darkness, undermining productivity and shaking investor confidence. NERC explains that the grid is designed to operate within strict stability limits—voltage (330kV ± 5%) and frequency (50Hz ± 0.5%). Any significant deviation can trigger shutdowns across generating units, cascading into a full or partial system failure. “Electricity demand higher than supply causes frequency drops. When this goes unchecked, automated safety settings shut down generation units, worsening the imbalance,” NERC said.

    Industry data reveals that under former President Muhammadu Buhari, Nigeria’s national power grid collapsed three times in 2015, 28 times in 2016, 24 times in 2017, 13 times in 2018, and 11 times in 2019. Between 2020 and Buhari’s exit from office on May 29, 2023, there were 14 recorded grid collapses, suggesting a modest improvement. However, this trend did not hold. From June to December 2023 alone, the grid collapsed three more times. The pattern of instability continued in 2024, beginning with a system-wide collapse in February, reportedly triggered by failures across distribution companies, leading to prolonged blackouts in multiple regions.

    Additional collapses followed on March 28, April 15, July 6, August 5, October 14, 15, 19, and 22, as well as November 5 and 7, and December 11, 2024. This year, the grid suffered at least one collapse—on March 7, 2025. In response, the Minister of Power has outlined plans to attract private investment into grid infrastructure and to regionalise the national transmission system to reduce systemic risks. He cited the 70% remittance compliance by Lagos-based DisCos as evidence that improved infrastructure translates into better performance—especially when compared to their northern counterparts.

    Metering conundrum as a thorn in Nigeria’s power sector

    Metering remains a critical and unresolved issue within the Nigerian Electricity Supply Industry (NESI). While meters are essential for fair billing and effective revenue collection, the country’s metering gap currently stands at 6.2 million—a figure that continues to frustrate both consumers and operators. Several government-led initiatives aimed at closing this gap—including the National Mass Metering Programme (NMMP), Meter Asset Provider (MAP) scheme, Meter Acquisition Fund (MAF), and the Presidential Metering Initiative (PMI)—have yet to meet expectations. Despite the ambitious goal of deploying two million meters annually under the PMI, progress has been slow.

    A Special Purpose Vehicle (SPV) has been established to lead implementation, with N700 billion secured through the Federation Account Allocation Committee (FAAC). Procurement has begun for the delivery of 1.1 million meters. Meanwhile, the World Bank-supported Distribution Sector Recovery Programme (DISREP) targets the rollout of 3.2 million meters. The first batch of 75,000 units has already arrived, with a second batch of 200,000 expected this month. Yet, despite these efforts, metering remains a challenge that appears to have defied all known solutions. The lack of meters not only penalises consumers with estimated billing but also hampers the ability of DisCos to maintain financial viability. Until the metering deficit is addressed with sustained, transparent and scalable solutions, the broader goal of a reliable power supply will remain elusive.

    Sadly, both electricity consumers and distribution companies (DisCos) continue to suffer losses—consumers through unfair billing practices, and DisCos through revenue leakages. For millions of households across Nigeria, the unavailability of meters means being subjected to the controversial estimated billing system—often described by stakeholders as extortionate. For DisCos, the lack of adequate metering has become one of the key drivers of Aggregate Technical, Commercial and Collection (ATC&C) losses. These losses arise from their inability to accurately measure energy consumed and to collect full payments for services rendered. Metering, therefore, lies at the very heart of a sustainable and commercially viable electricity market. Accurate metering allows DisCos to properly account for the inflow and outflow of electricity across their networks, ensuring transparency and fairness in billing. It also guarantees a dependable revenue stream for electricity suppliers and improves customer trust in the system.

    Given that the cost of services provided by every actor in the electricity value chain—generation, transmission and distribution—is ultimately embedded in the consumer’s utility bill, the need for effective metering cannot be overstated. ATC&C losses represent a summation of billing inefficiencies due to energy not billed (technical and commercial losses) and uncollected revenue (collection losses). This metric is crucial for determining electricity tariffs and assessing DisCos’ performance. Yet, of the 13.5 million registered electricity customers in Nigeria, around 6.2 million—nearly half—remain unmetered, according to data from the Nigerian Electricity Regulatory Commission (NERC).

    Unfortunately, DisCos have been unable to independently finance or implement large-scale metering initiatives that could significantly improve cash flow and service delivery, and ultimately reduce ATC&C losses. Metering all end-use customers would not only phase out estimated billing but also improve billing accuracy and revenue collection, injecting much-needed liquidity into the sector and supporting broader infrastructure investments. Despite several government interventions, meter installation remains sluggish. Worryingly, NERC reported a 60.86% quarter-on-quarter decline in the meter installation rate in Q2 2024, with only 49,188 meters installed compared to 125,664 in Q1.

    Nonetheless, this modest effort pushed the national metering rate slightly from 44.79% to 45.43% within the same period. A breakdown of the installations in Q2 shows that 35,985 meters—or 73.16%—were provided through the Meter Asset Provider (MAP) framework. Meanwhile, only 264 meters were deployed under the National Mass Metering Programme (NMMP). The Vendor-Financed model accounted for 12,843 installations, while the DisCo-Financed model contributed just 96 meters. According to NERC, DisCos are expected to leverage all five approved metering frameworks under the 2021 MAP and NMMP Regulations (NERC-R-113-2021) to address their metering deficits. Yet, persistent challenges—chief among them financial constraints, logistics bottlenecks and regulatory delays—continue to hamper progress.

    To assist DisCos in closing the gap, the Federal Government has ramped up interventions. By December 2024, a total of 2,184,254 meters had been installed under the revised MAP scheme. The intervention aims to increase the national metering rate, eliminate arbitrary billing, strengthen local meter manufacturing, create jobs, and reduce revenue collection losses. To catalyse this process, an initial N200 billion was invested to improve NESI’s revenue collection. The NMMP initiative itself was structured in three phases: Phase 0 (Pilot) – one million meters funded by the Central Bank of Nigeria (CBN); Phase 1 – four million meters (not funded by CBN); Phase 2 – 1.5 million meters. Only Phase 0 received direct CBN support, with N59.28 billion earmarked for the installation of one million meters.

    As of the latest update, 89.96% of the allocated funds have been disbursed to the 11 DisCos for the procurement of 962,832 meters via 23 Meter Asset Providers. Despite these figures, the impact on households has been underwhelming. Metering remains a long-standing problem that defies quick fixes, and unless sustained and coordinated strategies are implemented, the sector may continue to lose both revenue and consumer confidence. Beyond the National Mass Metering Programme (NMMP) and the Meter Asset Provider (MAP) scheme, Nigeria’s power sector is witnessing renewed momentum through several concurrent interventions. Notably, the Presidential Metering Initiative (PMI), the World Bank-backed Distribution Sector Recovery Programme (DISREP), and the Meter Acquisition Fund (MAF) have together injected over N335 billion into the sector. As part of this drive, about 3.2 million meters are earmarked for distribution under the DISREP initiative, which is currently being implemented across the country.

    Under the MAF framework, N1.185 per kilowatt-hour of electricity sold to consumers is earmarked for meter funding. These funds are centrally collected and managed by a designated Fund Manager (FM) for all Distribution Companies (DisCos). DisCos can then draw from this central pool to procure meters through approved MAPs, using the accrued contributions. The creation of the MAF stemmed from lessons learned from the shortcomings of previous strategies, including the 2018 MAP Regulations and the 2021 National Mass Metering Regulations, both of which struggled to close Nigeria’s wide metering gap. In what appears to be another bold attempt to address the metering deficit, the Federal Government recently introduced the Presidential Metering Initiative (PMI).

    This initiative is underpinned by a N700 billion loan facility from the Federation Account Allocation Committee (FAAC), spread over 10 years at zero interest, with a two-year moratorium. The PMI aims to deliver 2.6 million meters while consolidating the efforts of the DISREP (World Bank), MAF (regulated by NERC), and FGNPower initiatives. The rollout commenced earlier this year. In August, the government announced that, in collaboration with sub-national entities, N100 billion had been raised for the procurement of prepaid meters under the PMI. Adelabu explained that widespread consumer distrust, driven by estimated billing, had led many customers to withhold payment. “Metering will bring transparency and accountability to the billing process,” Adelabu said.

    He described the situation as largely self-inflicted and stressed that sustained investment in metering infrastructure is key to resolving persistent challenges in the power sector. However, despite these efforts, data from the Nigerian Electricity Regulatory Commission (NERC) reveals modest progress. Between April and July, only 115,767 electricity customers were provided with meters. As of July, out of 13,293,739 registered electricity customers, only 6,053,497 had been metered. A month-by-month breakdown shows that: April: 23,724 customers metered; May: 8,733; June: 12,854; July: 70,456. The DisCos, though responsible for metering, have consistently cited funding constraints as a limiting factor. Metering penetration remained low throughout the review period, with NERC reporting: 44.67% in April; 45.39% in May; 45.43% in June; 45.54% in July. Among the DisCos, Ikeja Electric led in metering coverage with 73.13% in April; 76.25% in May and June; 76.64% in July. Abuja Disco followed closely with 61.19% in April; 70.02% in May; 70.17% in June; 70.48% in July.

    Policy activism draws applause

    Stakeholders have applauded the Federal Government’s renewed commitment to reforming the power sector. Energy policy expert, Igbinoba, commended President Tinubu’s administration for its “bold policy activism” since assuming office in May 2023. He cited landmark actions such as the enactment of the Electricity Act 2023, Nigeria’s commitment to the National Energy Compact unveiled at the Africa Energy Summit in Tanzania, and the release of two strategic policy documents: the National Integrated Electricity Policy and the Nigeria Integrated Resource Plan (NIRP 2024). According to Igbinoba, the government’s ability to drive these policy frameworks to Federal Executive Council approval and formal launch deserves high praise. “I commend the Tinubu administration for the strides it is making in the power sector. However, long-term stability and efficiency in the sector hinge on the full privatisation of key assets,” he stated. He argued that completing the privatisation of the Distribution Companies (DisCos)—which remain 40% government-owned—as well as the ten National Integrated Power Plants (NIPPs) managed by the Niger Delta Power Holding Company, and the Transmission Company of Nigeria (TCN), is imperative. “Without the political will to divest these assets to financially strong and technically competent private investors, the power sector will continue to falter. It will fail to provide the electricity needed to power local industries, improve service delivery, and boost Nigeria’s competitiveness both on the continent and globally,” he concluded.

  • Assessing banks, IMTOs’ roles in non-resident BVN policy execution

    Assessing banks, IMTOs’ roles in non-resident BVN policy execution

    The Central Bank of Nigeria (CBN) has outlined clear roles for banks and International Money Transfer Operators (IMTOs) in implementing the Non-Resident Biometric Verification Number (NRBVN) policy. IMTOs are to integrate with the NRBVN platform to ensure secure, efficient global remittances, while banks must develop products tailored to diaspora needs. The effectiveness of both sectors in fulfilling these responsibilities is crucial to boosting dollar liquidity and strengthening Nigeria’s financial ecosystem for non-resident citizens, reports Assistant Editor COLLINS NWEZE

    Two stakeholders at the centre of the Non-Resident Biometric Verification Number (NRBVN) policy execution are the commercial banks and International Money Transfer Operators (IMTOs). Both segments of the economy play key roles in dollar inflows to the market and have been assigned specific roles by the Olayemi Cardoso-led Central Bank of Nigeria (CBN) in the NRBVN policy implementation.

    Following the recent unveiling of NRBVN in Abuja, the CBN boss directed Nigerian banks to proactively develop and offer products specifically tailored to meet the unique needs and preferences of the diaspora community. The NRBVN launch is seen as a major step to keep remittances inflow to the country soaring and dollar liquidity strong. Cardoso said that offering innovative and attractive financial solutions can greatly enhance diaspora participation, deepen financial inclusion, and significantly boost remittance inflows.

    “Over the past year, our policy frameworks have undergone extensive refinements, informed by sustained dialogue with International Money Transfer Operators (IMTOs). The introduction of the willing buyer, willing seller regime, licensing of additional IMTOs, and market reforms that have facilitated currency convergence are notable examples. Consequently, remittance flows through official channels have risen markedly, from $3.3 billion in 2023 to $4.73 billion last year,” he said.

    He added: “With the introduction of NRBVN and complementary policy measures, we are optimistic about achieving our ambitious target of $1 billion in monthly remittance flows, a goal we believe is entirely achievable given the growing trust and convenience in formal remittance channels”.

    “To meet these targets, collaboration and compliance with established regulatory frameworks remain essential. All stakeholders must adhere strictly to the FX Code and other relevant regulatory guidelines. This is critical to ensuring market stability, integrity, and overall confidence in Nigeria’s financial system.”

    The CBN boss further invited the IMTOs to integrate with the NRBVN platform as part of shared vision to build a secure, efficient, and inclusive financial ecosystem for Nigerians globally. Cardoso explained that a fully connected system will ensure that every Nigerian in the diaspora can confidently contribute to national development through trusted and cost-effective channels. He emphasised that the launch was not the final destination, but the beginning of a broader journey.

    “The NRBVN is a dynamic initiative, one that will continue to evolve in response to the needs of its users. It presents a unique opportunity to learn, to innovate, and to adapt. We encourage all stakeholders to engage actively, share insights, and help shape a system that serves millions of Nigerians across geographies and generations. The NRBVN is not just a tool; it is a bridge between Nigeria and its global citizens,” he said.

    He reiterated the CBN’s commitment to reducing the cost of remittances, currently averaging over seven percent in Sub-Saharan Africa. Lowering these costs, he stated, will enhance the safety and appeal of formal channels while amplifying the socioeconomic impact of diaspora remittances on Nigerian households and the broader economy.

    Statistics on dollar inflows via IMTOs

    The value of foreign exchange inflows to the economy through the IMTOs rose sharply in 12 months to $4.76 billion, the apex bank’s quarterly statistical bulletin showed. The report, which covered inflows in 2024, represents a significant 44.5 per cent increase from the $3.30 billion recorded in 2023. The IMTO inflows continue to be a vital source of foreign currency for Nigeria, supporting families, businesses, and the broader economy amid ongoing FX market challenges.

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    The year began with a strong performance in January 2024 as inflows surged 32.5 per cent year-on-year to $390.86 million, compared to $295.21 million in January 2023. This early momentum was maintained in February, with inflows increasing by 67.3 per cent, rising to $326.91 million from $195.23 million the previous year. March continued the positive trend, with IMTO inflows hitting $363.76 million in 2024, up 30 per cent from $279.79 million in March 2023. April saw a leap, with inflows reaching $466.11 million, an 83.3 per cent increase from April 2023’s $254.26 million, marking the highest year-on-year percentage growth in the first half of the year.

    May recorded inflows of $404.75 million in 2024, a 45.3 per cent rise compared to $278.54 million the year before. June was a relatively flat month-on-month but still strong year-on-year, with inflows at $389.79 million, up 40.2 per cent from $278.04 million in June 2023. July and August were the standout months for IMTO inflows, posting the highest volumes of the year. In July 2024, inflows jumped to $552.94 million, more than double the $240.35 million recorded in July 2023, representing a 130% year-on-year increase.

    August maintained this peak momentum with inflows rising to $585.21 million, a 116 per cent increase from $271.24 million in August 2023. These two months alone accounted for nearly a quarter of the total inflows for the entire year, highlighting their critical role in Nigeria’s FX ecosystem. The final four months of 2024 showed a mixed pattern of inflows, reflecting broader economic uncertainties and seasonal effects. September recorded $336.61 million in IMTO inflows, up 40.8 per cent from $238.98 million in the same month of 2023.

    October’s inflows rose modestly to $378.85 million, a 29.1 per cent increase year-on-year. However, November saw a sharp decline, with inflows dropping by 22.1 per cent to $252.28 million from $324.20 million in November 2023. December ended the year on a more positive note, with inflows rebounding to $316.59 million, a 9.1 per cent increase compared to $348.33 million in December 2023. The surge in IMTO inflows is closely tied to the reforms introduced by the CBN under Governor Cardoso since his assumption of office in September 2023.

    Opportunities for diaspora remittances

    According to President, Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, there are over 1.24 million Nigerian Migrants abroad and 50 per cent of them lives within the African neighbourhood, and the figure is expected to rise in the coming years. Gwadabe listed importance of migrant remittances to the economy to include serving as a lifeline for the recipients small house hold in the economy and used for health, nutrition, education and societal needs.

    The remittances are also higher than both Foreign Direct Investment and foreign aids flow to the economy and still, are cheaper sources of funds. He said that remittances can be used infrastructural developments as seen in India and Lebanon while in the Dubai UAE, the remittances are stable sources of liquidity in the Market. The remittances, he added, can also serve as excellent  source of investments funds in the economy  even as it represent 83 per cent of the Federal Government budget in 2018.

    The remittances were 11 times higher than the FDIs in the same period and 7.4 per cent larger than the net official development assistance received in 2017 of $3.34 billion in the economy. In a report: “Diaspora remittances: The power behind Africa’s sustainable growth”, Regional Vice President of Africa at Western Union, Mohamed Touhami el Ouazzani, said remittances may be measured through the movement of money, but their real impact is measured in lives changed.

    He disclosed that in 2023 alone, $90 billion flowed into Africa from its global diaspora, an amount that rivals the Gross Domestic Product of entire nations. He said that remittances symbolise deep ties that keep communities connected across borders. “Families with a breadwinner working abroad depend on these funds to provide vital support for day-to-day needs. They also build the foundation for broader financial stability.

    “Beyond their immediate impact, remittances are powerful drivers of economic change. They fuel infrastructure development, spur entrepreneurship, and promote financial inclusion – all essential for long-term economic development. Ghana’s National Financial Inclusion and Development Strategy (NFIDS) is simplifying access to remittances, while countries like Kenya, Ethiopia and Nigeria are tapping into diaspora bonds to fund infrastructure and other national projects,” he added.

    Impact on financial inclusion

    Financial inclusion is achieved when adult Nigerians have easy access to a broad range of formal financial services that meet their needs at an affordable cost. The services include, but are not limited to, payments, savings, loans, insurance, and pension products. Its importance derives from the promise it holds as a tool for economic development, particularly in the areas of poverty reduction, employment generation, wealth creation and improving welfare and general standard of living.

    Recognising the inherent benefits of expanding financial services network, especially to Nigerians in diaspora, the CBN said NRBVN will boost financial inclusion in the country. Cardoso explained that historically, Nigerians in the diaspora have faced significant hurdles when seeking access to financial services in Nigeria.

    The mandatory physical verification required for obtaining a BVN often incurred considerable costs in terms of time and financial resources, especially for individuals residing in remote locations.  The NRBVN platform addresses these very concerns. Through digital verification and robust Know Your Customer (KYC) processes, Nigerians across the globe can now remotely obtain their BVN swiftly and securely.

    This single digital gateway will enable seamless access to banking services, including opening accounts and securely sending funds, dramatically enhancing convenience and reducing costs. “In developing this solution, we draw valuable lessons from countries such as India and Pakistan. India’s Non-Resident External (NRE) and Non-Resident Ordinary (NRO) accounts have significantly simplified banking processes for its diaspora, and Indian banks currently hold approximately $160 billion in diaspora deposits, achieved by providing attractive and tailored products and services,” he said.

    According to the CBN boss, in developing the NRBVN, the team also took cognizance of Pakistan’s innovative Roshan Digital Account, offering fully online onboarding and investment opportunities and successfully attracting nearly $10 billion since its inception. These examples, Cardoso explained underscore the power of digital financial inclusion and specifically tailored products in driving meaningful engagement and substantial economic inflows from diaspora populations.

    “Our NRBVN platform is similarly designed to offer more than access, it is about opportunity. It is complemented by the Non-Resident Ordinary Account (NROA) and Non-Resident Investment Account (NRNIA) initiatives, collectively forming a robust framework designed to incentivise our global diaspora to channel their funds through formal financial systems into productive uses at home.”

    “By providing investment accounts, diasporans will have access to a variety of growing investment opportunities in our debt and equities markets, as well as products such as mortgages, insurance, and pensions. Importantly, diasporans will also have the flexibility to fully repatriate the proceeds of their investments in accordance with existing regulations, ensuring confidence and convenience in managing their assets,” he said.

  • How Electricity Act 2023 is rewiring the troubled power sector

    How Electricity Act 2023 is rewiring the troubled power sector

    Despite years of reform, Nigeria’s power sector has long struggled with inefficiency, debt and weak service delivery. But recent developments—driven by the strategic leadership—signal a turning point. From historic revenue gains to decentralised regulation, market restructuring and ambitious metering initiatives, the Nigerian Electricity Supply Industry is undergoing a quiet revolution, offering a glimmer of hope for consumers long weary of darkness and disappointment, reports JOHN OFIKHENUA.

    Revenue generation remains the cornerstone of sustainability and growth in any industry, and the Nigerian Electricity Supply Industry (NESI) is no exception. A significant stride in this direction has been achieved—thanks to the strategic leadership of the Minister of Power, Chief Adebayo Adelabu.

    Last year, in collaboration with him, the Nigerian Electricity Regulatory Commission (NERC) introduced a tariff increase for Band A customers—who represent 15 per cent of NESI’s consumer base. Although the policy initially sparked public outcry, it has proven impactful. At the Ministerial Press Briefing Series in Abuja last month, Adelabu announced that the reform yielded a remarkable N700 billion boost in market revenue—a 70 per cent jump from N1 trillion in 2023 to N1.7 trillion in 2024. He further disclosed that the increased earnings significantly reduced the government’s subsidy burden, trimming it from N3 trillion to N1.9 trillion within the review period.

    His words: “Furthermore, it is evident that, due to our transformative tariff reforms, the market has generated an additional N700 billion in revenue, reflecting a 70% increase. This results from the cost-reflective tariff adjustment for Band A customers. Market revenue for 2024 rose from NGN 1 trillion in 2023 to NGN 1.7 trillion. This growth in market revenue is unprecedented, as the highest growth previously achieved was 20%. This has positively impacted the reduction of the government-subsidised tariff shortfall by 35%, decreasing it from NGN 3 trillion to NGN 1.9 trillion.  According to the minister, it was a demonstration that financial viability and service delivery can coexist harmoniously.”

    A few weeks later, the Minister hinted at the complete removal of electricity subsidies to pave the way for a fully cost-reflective tariff regime. He urged Nigerians to brace for the shift, stressing that subsidies were no longer fiscally sustainable. Should the government succeed in eliminating the subsidies, the projected N2.5 trillion budgeted for subsidy payments in 2025 could be redirected to critical infrastructure development. In terms of improving market liquidity, the Nigerian Electricity Liability Management Company (NELMCO) made commendable progress in debt recovery. Its efforts led to the reconciliation and reduction of debts owed by Federal Ministries, Departments, and Agencies (MDAs) to the Abuja Electricity Distribution Company (Abuja DisCo), cutting the figure by 47.4 percent—from N15.53 billion to N8.17 billion.

    Another major milestone in the sector was the operationalisation of the Electricity Act (EA) 2023, which decentralised the electricity market. The Act empowered the Nigerian Electricity Regulatory Commission (NERC) to cede regulatory authority to states, allowing them to establish their own electricity regulatory bodies. This reform has spurred states and independent power producers into action. By the end of Q1 2025, NERC had successfully transferred regulatory oversight to 11 states: Enugu, Ekiti, Ondo, Imo, Oyo, Edo, Kogi, Lagos, Ogun, Niger, and Plateau. Of these, seven states—Enugu, Ekiti, Ondo, Imo, Oyo, Edo, and Kogi—have completed the transition, while four others are still in the process.

    For years, stakeholders in the power sector vigorously advocated for the unbundling of the Transmission Company of Nigeria (TCN). However, due to a perceived lack of political will or clarity on implementation, no concrete steps were taken—until the enactment of the Electricity Act (EA) 2023 empowered the current administration to act. In line with the Act, the Federal Government established the Nigerian Independent System Operator (NISO), which has now commenced operations.

    According to the Minister of Power, Chief Adebayo Adelabu, the creation of NISO represents a significant milestone in Nigeria’s power sector reform. As mandated by the Electricity Act 2023, TCN is to be split into two distinct entities: the Transmission Service Provider (TSP) and the National Independent System Operator (NISO). This separation is designed to ensure operational clarity and independence between system operations and market functions. While previous administrations attempted this reform without success, the Tinubu administration achieved a breakthrough with the formal inauguration of NISO’s board by Vice President Kashim Shettima on April 8. NISO is now responsible for independently managing grid operations to improve efficiency and reliability.

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    At the distribution end of the electricity value chain, power distribution companies (DisCos) are the closest to consumers. One of their most persistent challenges, however, has been inadequate metering and poor revenue collection. To tackle this, the Federal Government has launched the Presidential Metering Initiative (PMI), aimed at closing the country’s metering gap and ensuring transparent billing and enhanced revenue recovery. The PMI is backed by a N700 billion allocation from the Federation Accounts Allocation Committee (FAAC) and will be implemented through a newly established Special Purpose Vehicle (SPV), with a fully constituted board. The initiative aims to deploy 1.1 million meters by the end of 2025, followed by 2 million meters annually over the next five years. Procurement processes for the meters are already underway.

    In addition to domestic initiatives, the metering drive has received a significant boost through the World Bank-funded Distribution Sector Recovery Program (DISREP). Under the program, over 3.2 million meters will be procured and installed nationwide, alongside the deployment of meter data management solutions to enhance DisCos’ operational performance. The first batch of 75,000 meters under the International Competitive Bidding 1 (ICB1) arrived in April, with an additional 200,000 meters expected by May 2025.

    Just last week, Minister Adebayo Adelabu disclosed that the ongoing nationwide metering efforts were already yielding tangible results. He noted that the mass metering initiative across military barracks had generated N769.1 million in revenue between August 2024 and April 2025. The project, beyond revenue generation, aims to improve electricity supply and foster better energy consumption management within military installations. Meanwhile, distribution companies are undergoing a major restructuring process to enhance service delivery and operational efficiency. According to the minister, changes in ownership and management are underway, while the Nigerian Electricity Regulatory Commission (NERC) is strengthening the performance matrix to ensure improved accountability among the DisCos.

    The generation sub-sector of the Nigerian Electricity Supply Industry (NESI) has also recorded remarkable growth within the review period. On March 2, 2025, Nigeria reached a record-breaking available generation capacity of 6,003 megawatts (MW)—a historic first. Just two days later, on March 4, 2025, the country achieved a peak generation evacuation of 5,801.44 MW, with an accompanying daily energy delivery of 128,370.75 megawatt-hours (MWh). These milestones reflect a steady upward trend, as the average daily power generation and distribution in Q1 2025 stood at 5,700 MW, compared to 4,100 MW in Q3 2023—an increase of 1,600 MW, or nearly 40%, since Adelabu assumed office.

    Further gains have come from the revitalization of previously dormant assets. The new management of the Niger Delta Power Holding Company (NDPHC), in collaboration with the ministry, has successfully restored 232.5 MW of idle capacity from the Omotosho and Benin power plants. Further demonstrating its nationwide impact, the Niger Delta Power Holding Company (NDPHC) has implemented major infrastructure upgrades across the electricity transmission network.

    According to Adelabu, 14 transmission lines have been constructed, upgraded, or newly installed across various states. Notable among these are the rehabilitation of the existing 2 x 132kV transmission line bay extension at the TCN substation in Papalanto, Ogun State, and the ongoing 65km 330kV double-circuit transmission line between Afam and Ikot Ekpene (Lot 4A). Beyond the grid, off-grid and interconnected mini-grid projects have brought clean, reliable electricity to thousands of households across Plateau, Cross River, Niger, Oyo, and Osun States. These include: a 550KWp solar mini-grid in Bakin Ciyawa and Kwande communities, Plateau State; a 440KWp mini-grid in Cross River State; a 990KWp system powering 3,900 households in Niger State; a 510KWp solar hybrid mini-grid in rural communities in Osun State.

    In terms of foreign investment and partnerships, Adelabu revealed that Sun Africa Energy and Skipper Electric have expressed strong interest in Nigeria’s power sector, particularly in renewable energy generation and grid expansion. Their proposals, currently under review, aim to integrate solar power into the national grid, diversifying energy sources away from traditional hydro and thermal generation and strengthening energy security. Efforts are also underway to maximise output from Nigeria’s major hydro assets. Of the 700MW capacity at Zungeru Hydropower Plant, 550MW is currently being evacuated, while the Kashimbila Plant is fully evacuating its 40MW capacity. Looking ahead, development has commenced on the Makurdi Hydropower Project, which has the potential to generate up to 1,500MW, and the revitalization of the Kaduna Thermal Plant, a 215MW facility that had been inactive for six years but is now 87% complete and expected to be operational by the end of the year.

    Meanwhile, feasibility studies for the concession of the abandoned 10MW Katsina Wind Farm are underway in partnership with the Katsina State Government and private investors. Additionally, the ministry is exploring wind energy potential along Nigeria’s coastal belt in tandem with the Lagos-Calabar Coastal Highway project, as part of efforts to diversify the country’s energy mix through sustainable sources.

    In terms of power generation, Nigeria holds an impressive 14GW hydropower potential, yet currently utilises only about 20% of that capacity. To bridge this gap, the Federal Government is developing a comprehensive hydropower plan focusing on small dams under the Sustainable Power and Irrigation in Nigeria (SPIN) program. Spearheaded by the Minister of Power, Chief Adebayo Adelabu, feasibility studies are currently underway—particularly along strategic development corridors such as the Badagry to Sokoto Highway—to harness small hydro resources more effectively.

    However, despite these promising initiatives, the electricity sector remains burdened by a substantial financial crisis. A debt overhang of over N4 trillion continues to stifle progress, severely limiting the operational capacity of Generation Companies (GenCos). Many GenCos have expressed their frustration, warning of possible shutdowns if the liabilities are not addressed. In response, Adelabu has committed to settling 50% of the outstanding debt by the end of 2025—a significant step toward restoring investor confidence and operational stability in the sector.

    Another critical challenge lies in the reluctance of Distribution Companies (DisCos) to invest in infrastructure upgrades. This hesitancy is largely attributed to the absence of a fully cost-reflective tariff regime, which undermines returns on investment. Simultaneously, a significant portion of the public continues to view electricity as a government-provided social service—a mindset rooted in the legacy of the defunct National Electric Power Authority (NEPA). The issue is further compounded by the widespread lack of metering. Many customers, burdened by estimated billing practices they believe grossly inflate their actual usage, have resorted to energy theft and other forms of self-help. The DisCos’ inability or unwillingness to fully meter their customers remains a major impediment to accurate billing and sustainable revenue generation.

    While commendable strides have been made in policy reform and infrastructure development, consumers remain largely unimpressed. The public continues to demand tangible improvements in actual power supply rather than abstract milestones like peak generation or theoretical capacity. For most Nigerians, the true measure of success in the electricity sector lies in consistent, reliable access to electricity—not in projections or promises.

  • How we’re creating livelihoods for people through waste collection

    How we’re creating livelihoods for people through waste collection

    Dr. Muyiwa Gbadegesin is the Managing Director/Chief Executive Officer of the Lagos Waste Management Authority (LAWMA). He shares his blueprint for transforming Lagos into a success story in the circular economy with Assistant Editor Okwy Iroegbu Chikezie. 

    What were the initial challenges you encountered when you assumed office as the CEO of LAWMA? 

    When we came on board as part of the Sanwo-Olu administration, we met a thriving legacy, a fast-growing developmental pace of Lagos. More than 20 years of development since 1999. There are a lot of success stories, a testament to the state’s resilience and drive. However, amidst this, the challenges inherent in managing the waste generated by such a burgeoning population became immediately apparent.

    We focused on health and the environment in the two months we used for the transition programme. Fortunately, I was the team lead for the Health and Environment subcommittee under the THEMES agenda. This put me in a vantage point to trace the historical evolution of waste management practices in Lagos. It became unequivocally clear that the foundational systems established some time ago by the past Tinubu administration were long overdue for an upgrade.  A Private Sector Participation (PSP) system involving 428 dedicated PSP operators serving the diverse needs of over 20 million residents and businesses across the state.

    While this model played a significant role, the increasing obsolescence of equipment, compounded by the volatile economic landscape and the escalating costs of essential resources such as diesel, placed considerable strain on their operations. Regrettably, this has manifested in instances of waste escaping into public spaces, a challenge that LAWMA has had to manage.

    But most importantly, one that resonates deeply with the progressive vision of His Excellency, the Governor, Baba Jide Sanwo-Olu, is the imperative to wholeheartedly embrace a circular economy.  The reality is that the public will always generate waste. Waste generation is a byproduct of human activity. We could choose the conventional approach of simply collecting, transporting, and ultimately disposing of waste in designated dumpsites or adopt the circular economy approach that offers a transformative alternative, prioritising the reduction of waste at its very source and maximising the potential for recycling and reuse. This is the guiding principle that now shapes our every initiative for Lagos.

    You’ve highlighted Governor Sanwo-Olu’s strong advocacy for a circular economy. Could you let us in on this robust vision for Lagos?

    The governor’s perspective, which it is my privilege to champion and implement, compels us to fundamentally reimagine our relationship with what we currently label as ‘waste.’ We firmly believe that this designation is a misnomer; these materials possess significant intrinsic value. We are already witnessing a burgeoning informal sector where many people are building sustainable livelihoods by collecting and channelling these so-called waste materials back into productive cycles, supplying industries that can repurpose them.

    Our ultimate aspiration as a state is to achieve a recycling rate of at least 90 per cent of the materials we currently consign to disposal. It is an ambitious benchmark, and we acknowledge that we have not yet reached this zenith, but it serves as the unwavering compass directing our strategic endeavours.

    The worldview is that within the confines of your own home, you have a separation of bins with waste categorised into as many as five distinct streams. This is a practice I adhere to. We have dedicated bins for paper and plastic materials, recognised for their economic value. Some people buy that now. Indiscriminate disposal of PET bottles is becoming increasingly rare. You don’t find people throwing PET bottles away again. The informal recycling network keenly understands its value, with international market prices potentially reaching around $350 per tonne. This economic incentive acts as a powerful catalyst for collection.

    We have one of our old facilities at Agege. We have entered a partnership with a private recycling enterprise, Werecyclers. They collect plastics from across the state. The partnership aims to address plastic waste concerns and contribute to environmental sustainability.

    Remarkably, some of the women who deliver these plastics to this facility are earning between ₦300,000 and ₦400,000 each month – a compelling illustration of the economic opportunities that lie within the realm of waste. Also, there are separate streams for metals, such as aluminium cans. People are also going for textile waste, an increasingly recognised resource with diverse applications. There is also interest in organic or food waste. Consider the example I shared earlier – the simple act of separating food waste at its point of generation within the home. We are in the process of licensing recycling companies that will not only collect this segregated organic waste but may also offer tangible incentives to those who bring in waste in return. That is our vision.

    You’ve articulated a compelling blueprint that offers hope of transformation. What tangible steps has LAWMA undertaken to translate this ambitious goal into concrete action in terms of marshalling a responsive waste-to-wealth revival programme?

    Our strategic approach is multifaceted, yet at its core lies the unwavering commitment to unlocking the vast potential of the sector for individuals and corporate operators.  Just as private enterprises currently manage the crucial tasks of waste collection and transportation, we envision them to become the driving force behind this transformative circular economy. Sustainability is paramount; if you show a man how to fish, he will learn to fish. By empowering individuals and businesses to recognise waste as a valuable resource and to establish profitable ventures around its recovery and processing, the government’s direct operational involvement will gradually transition towards a more facilitative and regulatory role.

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    Allow me to illustrate this with a recent, impactful example. In Oniru, the proprietor of a prominent restaurant situated within Twin Waters Mall reached out to me, expressing deep concern over a substantial surge in her monthly PSP bill, escalating from ₦400,000 to a staggering ₦1.4 million due to the sheer volume of food waste generated by her establishment. She runs a very successful food business. Upon inquiring about the composition of her waste stream, she confirmed that it was predominantly food scraps.

    I proposed connecting her with specialised composting enterprises. Her response was not only receptive but also indicated a willingness to pay for the efficient removal of this organic waste, recognising the significant reduction it would bring to her disposal costs.

    About the same time, somebody called me who has a land in Ikorodu and wants to establish a facility for producing compost and animal feed utilising organic waste. However, he faced logistical challenges in securing a consistent supply of raw materials.  Instead, he was going to establish an estate development on his land.  I encouraged him to forget the estate plan and fully embrace this circular economy opportunity.  I assured him of our unwavering support in establishing a reliable supply chain for organic waste. That was last year.

    Just two weeks ago, my team conducted a thorough inspection of his facility, and I am delighted to report that it is approximately 90 percent complete. The plant will have the capacity to process 50 tonnes of food waste daily, employing black soldier fly technology to produce animal feed and nutrient-rich compost for sale. We are facilitating for him a system whereby restaurants from high-organic-waste-generating areas such as Victoria Island, Ikoyi, and Lekki Phase 1 will have their food waste collected and efficiently transported to his facility. This exemplifies the very essence of diverting organic waste, which constitutes a remarkable 50 per cent of Lagos’ total waste stream, from environmentally detrimental landfills towards the creation of tangible value, contributing to food security through the production of agricultural compost and livestock feed. This, in its purest form, is the circular economy in action.

    Similarly, within the realm of plastics, we are actively cultivating partnerships with the private sector.  When you read about our signing of Memoranda of Understanding (MOUs) with private sector players, the aim is to instil the confidence that the government is ready to provide the necessary support for businesses to establish and flourish within the recycling sector.

    Recently, we launched a state-of-the-art recycling facility in Apapa,  supported by the Coca-Cola Foundation. Their goal is very simple: to collect and recycle all the PET bottles generated within the Apapa metropolis, processing them into new bottles within the confines of the same plant, and then exporting them if it is possible. Some businesses are exporting bottles. We plan that the whole of Apapa GRA will pull waste bottles to the place. There are other locations like that where we are looking to aggregate waste bottles. We are currently engaged in a comprehensive mapping exercise across the state to identify both existing and potential strategic locations for the establishment of diverse recycling facilities, creating an interconnected network for the efficient processing of various waste streams. Our ultimate goal is to ensure that only the truly residual waste, materials that currently lack viable recycling pathways, will ultimately require landfill disposal. Even for this remaining residue, we signed an MOU with   Zoomlion Nigeria Limited, a subsidiary of the Ghana Waste Management company, JONSPONG, to treat solid and liquid waste in the state.

    We anticipate finalising the concession agreement this month, with the groundbreaking scheduled for July. Within an ambitious 18-month timeframe, they will construct advanced material recovery facilities at both the Olusosun and Solous sites. I mentioned that we are going to have a network of transfer loading stations that will receive compacted waste, which will then be efficiently transported in high-capacity trailers – each capable of carrying the equivalent of seven compactor loads – to newly developed, technologically advanced processing facilities located in Ikorodu and another identified location for Solous. These facilities will operate with the efficiency and environmental consciousness of modern factories, minimising any negative impact, and will incorporate sanitary landfills for the final, irreducible waste. Ultimately, this will pave the way for the long-awaited closure of the currently over-capacity Olusosun and Solous landfills.

    It certainly sounds like a multifaceted waste-to-wealth development blueprint. Could you outline the core elements that underpin these strategic plans and ongoing negotiations?

    Our waste-to-wealth strategy is predicated upon a series of interconnected and mutually reinforcing elements. We are promoting and facilitating the segregation of waste at its point of generation, whether within households or commercial establishments, into distinct streams such as paper and cardboard, plastics, metals, textiles, and organic waste. We are seeking out and providing support for private sector investment in the establishment and operation of recycling and processing facilities through transparent licensing processes, strategic MoUs, and the cultivation of a conducive and enabling business environment. We are developing a comprehensive network of advanced material recovery facilities, efficient transfer loading stations, and, ultimately, state-of-the-art modern waste treatment plants. We are also fostering connections between waste generators and the diverse array of recyclers and processors, thereby creating a robust and economically viable market for recovered materials. The other essential aspect is our comprehensive public sensitisation campaigns aimed at driving fundamental behavioural change, with a particular emphasis on instilling responsible waste management practices in the younger generation.

  • Beyond classrooms: Fixing Nigeria’s broken promise to its children

    Beyond classrooms: Fixing Nigeria’s broken promise to its children

    • FG unveils policies to tackle national emergency

    With bold targets and renewed investments, the Bola Tinubu administration is taking on Nigeria’s out-of-school crisis, but its lasting impact will depend on sustained political will and policy reforms. Deputy Political Editor RAYMOND MORDI examines the challenges inherent in the programme and how the government can overcome them.

    Every morning before the city fully awakens, 13-year-old Taofik Bello is already knee-deep in Lagos trash. In Bariga area, where the streets are narrow and choked with smoke from burning refuse, he moves with purpose — dodging Keke Napeps, avoiding broken glass, and weaving through the chaos of early market hustle.

    With a torn sack slung over his shoulders and bare, blistered hands, Taofik picks through piles of waste in search of anything worth selling—plastic bottles, old wires, or crushed cans. The stench is heavy, usually from spoiled food, stagnant water, and diesel fumes, but Taofik is undaunted. 

    Some miles away, on the sweltering streets of Oshodi, nine-year-old David runs after moving vehicles in traffic, balancing a basin stacked with sachets of pure water on his small head. Horns blare; engines growl, and drivers shout. But David weaves through it all, barefoot on hot asphalt, his face streaked with sweat and exhaust.

    At every rolled-down window, he chants, “Pure water, three for 100 naira!” hoping to make enough to take something home. He should be in school, learning to write his name or solve simple Mathematics. Instead, he spends his days chasing moving cars and dodging danger.

    Taofik and David are not exceptions — they’re the norm in a country where poverty has pushed millions of children into roles they were never meant to fill. Across Nigeria, childhood is being rewritten. Instead of schoolbags, children carry loads on their heads. Instead of toys, it’s trays, tools, and trash. Instead of homework, they work to earn some money to survive.

    Embedded in culture

    In the northern part of the country, the crisis of out-of-school children is deeply tied to religious and cultural practices. Instead of being in classrooms, many children are pushed into the streets, left to roam and beg for survival. This widespread neglect reflects a system that has normalised child poverty and denied countless young people a fair chance at a future.

    As inflation spikes and unemployment grips their parents, more children are forced to become breadwinners — contributing to family income through street hawking, scavenging, begging, or hard labour. For many households, a small child’s earnings, however small, make the difference between eating and going hungry.

    The Bola Ahmed Tinubu administration clearly understands the magnitude of the crisis and has articulated a fairly robust response. As Nigeria grapples with the world’s highest number of out-of-school children, the administration has taken a bold stance, promising sweeping reforms to reverse this trend. The administration has set a two-year target to return 10 million out-of-school children to the classrooms.

    Education Minister Olatunji Alausa said the plan is an offshoot of the reform initiatives of the Federal Government under the Hope for Quality Basic Education programme (Hope-Ed). The minister spoke during this year’s edition of the International Conference on Smart Education (ICSE) organised by the Universal Basic Education (UBEC) in collaboration with the Korean International Cooperation Agency (KOICA). 

    With an estimated 20 million Nigerian children out of school, the scale of the crisis is both staggering and urgent. The administration’s recent moves signal intent, but the real test lies in execution and sustainability.

    A promising start

    Since taking office, President Tinubu has unveiled a raft of policies aimed at tackling this national emergency. Chief among them is the ambitious pledge to return 10 million out-of-school children to classrooms by 2027. The government has also inaugurated the National Commission for Almajiri and Out-of-School Children Education, tasked with mainstreaming non-formal education into the broader system and scaling literacy programmes nationwide.

    The administration’s Data repository, Out-of-school children, Teachers’ welfare, Skills development (DOTS) framework is a major plank of this agenda. It aims to build an accurate data system for educational planning, prioritise teacher training and welfare, and promote skills acquisition to complement formal learning.

    Tinubu has approved significant funding for the renovation of 195,000 classrooms, the construction of 7,700 new schools, the installation of 22,900 boreholes and 28,000 toilets, and the procurement of over 1.6 million school furniture items. Additionally, more than 100 million textbooks and two million teaching aids are to be distributed nationwide.

    These initiatives are supported by a renewed push for federal-state collaboration. The government has engaged state governors, urging them to align with the national blueprint and prioritise education in their respective domains. Vocational and technical education is also being promoted to equip the Nigerian youth with skills that match the demands of a changing economy.

    Holistic approach

    Experts say these initiatives reflect a holistic approach to tackling the out-of-school children crisis, combining infrastructure development, policy reform, and stakeholder collaboration.  The administration’s commitment to education is evident in these multifaceted strategies aimed at creating a more inclusive and effective educational system in Nigeria.

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    Dr Davidson Akhimien, a retired military intelligence officer and security consultant, said it is a very laudable idea and would require collaboration between federal and state governments. He said, “A lot of emphasis should be placed on vocational training, by setting up vocational institutions across the country, because not everybody must go to a university. If we want to industrialise our country in the next 20 years, we must begin to provide the skill set that would be required for the workforce to support industrialisation, at least for the lower level. 

    “It would also help to reduce the current high unemployment rate in the country. The government should consider giving start-up grants to graduates of vocational training institutes to set up their businesses. In this way, they would create jobs and contribute to our gross domestic product (GDP) and reduce unemployment.  

    “Basic education must be formalised as a security and economic development issue. This shift will justify increased funding, prioritisation in conflict zones, and coordination between education and security agencies.”

    Beyond good intentions

    However, implementation has always been the Achilles’ heel over the years. Billions have been allocated before, with little to show for them. Corruption, bureaucracy, and poor monitoring often drain the impact before it reaches the children who need it most. The real test is not in the amount budgeted, or the detailed plan of action — but in whether it transforms lives at the street level, where kids like Taofik and David are still hustling for scraps.

    The country has seen similar blueprints in the past that failed to take root because they were not anchored in law or aligned across the three tiers of government. “While these efforts are commendable, they are not likely to yield visible dividends in the short term—and perhaps not even in the long run—unless critical structural and institutional issues are addressed,” Emmanuel Gabari, a Kano-based broadcaster, social worker and human rights activist, told our reporter.

    One such critical structural and institutional issue, he added, is that of an enabling law. He noted, “For the reforms to outlive the Tinubu administration, institutionalising them through legislation, funding frameworks, and federal-state compacts is crucial. Otherwise, they risk becoming another cycle of good intentions derailed by the next election season.”

    Lack of legislative backing

    The Kano-based activist said many of the programmes are not yet institutionalised. The DOTS framework, for instance, remains an executive initiative without legislative backing. As such, it is vulnerable to discontinuity if political priorities shift or a new administration takes a different path.

    Similarly, the National Commission for Almajiri and Out-of-School Children, although established, still lacks the entrenched legal and financial autonomy required to operate independently of the executive arm. Thus, remains at the policy or programme level and cannot survive political transitions.

    Besides, Gabari recalls that new administrations rarely continue programmes begun by their predecessors. He said, “I remember under the Goodluck Jonathan administration, a commission was set up to look into the challenges of the Almajiri education system. As a follow-up on the commission’s report, the administration built a lot of Almajiri schools in the northern part of the country.

    “We saw how that project went, like a pipedream. Sadly, it was the very people who were supposed to be the beneficiaries of the Almajiri school project of former President Jonathan who kicked against it.

    “So, you begin to wonder, what do we want? This pattern repeats across sectors: new governments scrap previous initiatives, even those launched with fanfare but yet to bear fruit.”

    Tackling poverty

    Beyond legislation and political will, any reform effort must also reckon with Nigeria’s deeper socioeconomic realities. Dr Akhimien reflects this perspective in the following paragraphs. He agrees with Gabari’s views in several respects. Like the Kano-based activist, he said the execution of the current policy would determine how far the Tinubu administration would go in bringing down the number of out-of-school children in the country.

    For instance, he argued that bringing millions of children back to school also entails a reduction of poverty, particularly among some vulnerable groups. He added, “As Nigeria’s economic crisis deepens, millions of children are being left behind—hungry, uneducated, and invisible. The high level of poverty poses a major challenge to the rights of the child despite the country’s adoption of the 2003 Child Rights Act.

    Insecurity

    “Tackling insecurity in conflict-affected zones, especially in the north, is also key because many schools remain closed due to insecurity. The government must prioritise safe schooling by protecting education infrastructure and deploying security or community-based strategies to make school environments safe.”

    The security expert said the National Assembly must enact an enabling law to support the new policy. He enjoined the government to criminalise some parents’ refusal to send their children or wards to school “because they are stealing the future of such children”. He added, “At least, with the funding of basic education by the government, parents have no excuse not to send their children to school.”

    The retired military officer said the problem is complex, particularly in the north, because it is embedded in the region’s cultural practices. He noted, “However, with focused, culturally sensitive solutions, it is possible to change the narrative. Curbing the crisis in the north requires a multi-pronged approach that tackles both the root causes and the systemic gaps.

    “These include reforming the Almajiri education by integrating it into the formal education system, with religious studies, so children can gain literacy, numeracy, and life skills alongside Quranic teachings. Government and religious leaders need to work together to modernise the system.”

    Elite manipulation

    He said it is erroneous to blame religion for the menace of out-of-school children in the north. His words: “It is a fallacy to say the problem lies in religion. Islam does not discourage education. It is the northern elite that have somehow manipulated the masses to shun Western education to keep them from seeing the light. Education is light, and light leads to freedom, liberty.

    “Once they deprive these people of education, they are deprived of their rights. The problem isn’t religion—it’s elite manipulation. What the civil society groups should do is probably to demystify this thing about religion, Boko Haram, which means no to Western education. It’s all a lie. Most northern leaders have children in Ivy League schools in the West.”

    Another strategy is through creating awareness by running targeted campaigns to shift cultural perceptions about the value of formal education, especially for boys in traditional Quranic schools and girls often kept out due to early marriage or domestic roles.

    This can be done by engaging and collaborating with religious leaders and traditional rulers to champion education from within the cultural framework, making it easier for communities to accept reform. Deep-rooted practices such as Almajiri education must be modernised, not abolished, through integration with formal schooling.

    Lack of political will

    Dr Akhimien said the private sector and civil society organisations, which are major stakeholders, must also be integrated into the government’s educational policy. He said, “Whatever strategy is being adopted, the private sector and CSOs should be integrated more formally into the process. These groups often have deeper reach at the grassroots level and can help drive enrollment, monitor progress, and fill capacity gaps.”

    The retired military intelligence officer said a mass mobilisation campaign should be developed and propagated on social and traditional media channels. “They must be produced in different indigenous languages, so that they come close to the heart of every Nigerian,” he added.

    In addition, the political calendar presents a significant obstacle. With elections held every four years and campaigns beginning two years into the life of a new administration, there is often a lack of continuity between administrations because the education sector is largely under state control.

    Education, which is largely controlled at the state level, suffers from fragmented implementation. Collaboration with state governments and international partners is essential to advance reform goals. Even at that, success depends on political alignment and long-term commitment across party lines and administrations.

    Governors from different political parties or with competing priorities may not fully buy into Tinubu’s federal initiatives. This decentralisation, while constitutionally appropriate, fragments the national education response and hinders uniform implementation.

    Funding challenge

    Moreover, funding remains a perennial challenge. The Federal Government’s budgetary allocations to education in the last 10 years have hovered between five to nine per cent. This is against UNESCO’s recommendation that countries should allocate between 15 to 20 per cent of their national budgets to education.

    The bulk of education spending often goes to recurrent expenditure (salaries, overheads) rather than capital investments (schools, tech, and infrastructure).

    Despite the launch of multiple initiatives (e.g., UBEC, BESDA, Safe School Initiative), actual funding for implementation remains limited.

    Implementation capacity is weak, and budgeted amounts are often poorly disbursed or underutilised. Reliance on federal allocations further exposes education funding to oil price volatility, political transitions, and economic shocks.

    At the state level, education remains underfunded, despite being a constitutional responsibility. Most states allocate between 10 and 15 per cent of their budgets to education. However, actual disbursement and impact vary widely, as political will and capacity constraints affect delivery,

    Besides, federal counterpart funding from UBEC usually goes unclaimed in many cases. This is due to poor budget planning or the inability to provide matching grants. Also at the state level, recurrent expenditure dominates—largely salaries—while capital spending (school building, books, ICT) remains low.

    Dedicated financing mechanism

    Without a dedicated and protected education financing mechanism, long-term sustainability remains doubtful.

    There is also the issue of capacity. Many of the institutions tasked with implementing the current reforms suffer from inadequate manpower, poor training, and limited digital infrastructure. For instance, real-time data tracking of school attendance and enrollment—a key part of the DOTS plan—requires advanced systems and trained personnel that are currently in short supply.

    Gabari, a United Nations Youth Parliament Ambassador, believes that Nigeria is not ready for such innovation for several reasons. He argued: “The administration is also talking about digital tracking systems to harness data for planning purposes. However, we should be mindful that these systems are new in our clime and are not yet integrated into the mainstream of our civil service operations or the State Universal Basic Education Boards (SUBEBs).

    “The problem with innovations like these again is that we are back to square one. Where is the electricity to power the computer systems? Electricity is pivotal to every other sector because we need it to power the operations of small businesses, activities in our schools, among other things.”

    Governance, a relay race

    The Youth Parliament ambassador said development is not a one-day business. For it to take place, he added, there must be continuity in governance. He said, “It’s like a relay race where an incumbent leader must transfer the baton to the incoming one to continue. Nigeria has some of the best policies in the world, but as I said earlier, we are not concerned about continuity or leveraging on existing platforms.

    “Incoming administrations often abandon existing projects, assuming a new system must replace them, regardless of merit. Like the proverbial saying that one should not throw the baby away with the bath water, the new government must look at what is not working well in an existing project and fix it, rather than jettisoning the entire thing and beginning afresh.

    “It is only when our leaders develop the mindset of focusing on the implementation of existing projects, rather than insisting on the one initiated by the new administration for political expediency, that we will move forward. It’s more like playing politics with the country’s development.”

    Finally, apart from legislative entrenchment of the policies, experts say stronger coordination mechanisms must exist between federal and state governments. This could include performance-based grants that reward states for achieving specific education milestones, as well as formal compacts that commit governors to shared targets.

    The administration must recognise that tackling the out-of-school children crisis is not just a social policy but a national security and economic development issue. Education should be treated as strategic infrastructure, as essential as roads, power, and defence.

    Conclusion

    The Tinubu administration has laid a promising foundation. Yet, unless the outlined reforms are institutionalised, adequately funded, and sustained across administrations, they risk joining the graveyard of abandoned policies.

    Nigeria stands at a crossroads. The opportunity to lift millions of children out of poverty and ignorance is within reach — but only if the country moves from promise to practice, from pilot to permanence.

    The cost of failure is not just educational — it’s economic, social, and existential. Will this administration be the one to finally break the cycle? Or will another generation of children be lost to promises not kept?

  • Multi-million naira transformers rot in communities over connection levies 

    Multi-million naira transformers rot in communities over connection levies 

    •Artisans in border community abandon jobs, take to smuggling

    •Frequent explosions endanger residents’ lives in Lagos community

    •Akpabio, Oshiomhole decry DisCos’ exploitation of consumers

    Many communities and border areas in Lagos State have been grovelling in darkness for decades even  after procuring transformers to end the challenge of  power supply. After paying through their noses to procure transformers, the people’s inability to make further payments for connection leaves the transformers to rot and rust away. The ugly development has brought untold setbacks to many  communities, predisposed residents to dangers  and compelled innocent people to engage in unwholesome practices including smuggling. INNOCENT DURU reports.

    Kolade, a resident of Agbojetho community in Owode Apa, a suburb of Badagry area of Lagos State and other members of the community were jubilant when a brand new transformer was installed in the community  recently. Their joy was amplified when eminent persons in the area thronged the community to commission the transformer with  resounding assurance  that the community  would soon begin to sparkle and glitter with power supply.

    “The promises were all a ruse. We have not seen any power supply since then.

    We have been making contributions for power supply to no available. It was all a deceit,” Kolade said.

    After the failed promise, Kolade told our correspondent that they have been inundated with requests to make contributions for the purpose of connecting the transformer to power source.

    Kolade said: “We were asked to contribute N10, 000 per house recently but many don’t have the resources to make such contribution. Is it people who have not eaten that will contribute such an amount of money.”

     As it stands, Kolade despondently said “there is no hope that the connection will be done anytime soon.  Since the beginning of this community there has never been anything like power supply. We have always been in darkness. It is a shame that in this modern world, a community like ours and many others have not had power supply for once.”

    Clarifying his remark, Kolade said: “It is not that we once had power supply and it spoilt. No. We have never had power supply.  Children can’t learn handwork that requires power supply in the community because they can’t use the knowledge to do anything here.”

    Without mincing words, he said “I engage in smuggling to get something to provide for my family.

    “As you can see, we are very close to the border and smuggling of goods is a regular business here.  It doesn’t always come but it provides me with some money to take here of the home front whenever it comes.”

    Another resident who simply gave her name as Modji said she has been forced to abandon her hair making business because of absence of power supply in the community.

    “All the tools I use for my hairdressing job have not only gathered dust but have rust because there is no power supply to put them into use. I can’t use petrol to do my work because a litre costs N1,700 here.  We don’t have petrol stations. We only buy from black market operators.

    If I buy a litre for N1700, how much will I charge the customer?

    To stave off hunger, Modji said: “I resorted to engaging in smuggling business to survive. There is no industry here that can employ us. The only way to survive here is to  key into the available  means of earning a living in the neighbourhood and that is smuggling.”

    She admitted that smuggling  is not an easy venture but “we have no alternative. May God have mercy on us because we can’t watch our children starve to death.”

    She lamented that electronic gadgets in “my house have turned to places of habitation for rats, wall geckos, cockroaches among others. We moved to this area after we completed our house without any idea of what the power situation is.”

    Also decrying the horrible condition the absence of power supply has plunged the community into, a resident who preferred to be  simply identified as Jola said “absence of power supply in our community has crippled commercial activities in this area. If not for people using generators and solar light, many children in the environment wouldn’t  have known there is something called electricity.”

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    In the entire neighbourhood, Jola said “there is no government presence and there are no companies  or industries where we or our children can work. The only industry here is smuggling and that is what many of us do for survival.”

    Continuing, she said: “Some artisans have sold off their tools when they have no work to do with it. They consequently joined the smuggling business to survive and fend for their families.

    “It is not that we take pleasure in smuggling but when there is no alternative means of livelihood, why would one not get involved to save his or family from starvation.”

    Transformer rusts in Gberefu

    Another community that has been plagued by absence of power supply from inception till date is Gberefu, a suburb of  Badagry.

    The only time they had a glimmer of hope of getting power supply was when a lawmaker donated a transformer to the community a few years ago.

    The youth  president of the community, Jimoh Salako said “we were given a transformer many years ago by Honourable Onabamiro, a former House of Reps member. The transformer was not connected let alone utilising it to provide power supply for the community.   The particles of the sea  have made it rust. It is now more of a waste.  This happened because of the proximity of the sea to the village.  The transformer was installed in the  house of the late community leader.”

    He added that the electricity poles in the community were installed during the military era.  “The poles were erected but not wired by the military. The project was subsequently abandoned.”

    Members of the community who have financial capability, according to the youth president, are  going for solar light  while “some others make do with I better pass my neighbour generators.  Majority of the community members don’t have any means of power supply.”

    Following the stark darkness that has become a feature of the  community, Jimoh regretted that many people are exiting the area. “We have  been experiencing rural urban migration because of lack of power supply.  Most elite members of the community stay in town. Majority of the youth, apart from those engaging in agriculture and fishing   in the community have also migrated. Those who have gone out and known the value of education, hardly return once they have gone to urban areas.  They hardly come back to the village.

    “Artisans who are from the community go to Badagry to rent shops. We also travel to Badagry  before we can get petrol to buy.  It costs N600 to and fro by boat to go and get petrol.”

    After decades of living without power supply, Jimoh expressed confidence that  a silver lining is already waiting  at the end of the tunnel.

    “The Badagry Port Project extends to our place. It has even consumed good part of the land. We are hoping and believing that by the time the project starts, we will have constant power supply because it is part of the Corporate Social Responsibility they said they will do for the community. At the end of the day, all the poles over there will be removed because they fall under the land that was allocated for the Badagry port.”

    Equally locked up in darkness occasioned by lack of power supply are people of Yovoyan which shares a boundary with Gberefu. Like Gberefu and Agbojetho, Yovoyan has also not had power supply since its existence. A community leader who gave his name as James Yovoyan said: “I have been in this community for 64 years without power supply. We are suffering a great deal because of the absence of power supply in the community.

    We only have electricity poles without wires to connect them to our houses.  The poles were erected during the regime of Bubar Marwa, a military administrator.

    The transformer at Gberefu could have also helped us to have power supply. But I don’t think the transformer will be there now.”

    James expressed concerns that  children in the community and other community members rely solely on generators to do their businesses and that comes at a huge cost for them.

    “We don’t have petrol stations here.  We will have to pay over a thousand naira to board motorcycles  to the expressway to get petrol. We buy petrol from the expressway between N900 and N1000.  The road is also in a horrible shape. Okada riders keep smashing our people on the ground.”

    Explosions endanger residents’ lives in Lagos community

    Residents of Itoko, a community in Igando, a suburb of Alimosho Local Government Area of Lagos according to our findings are constantly exposed to danger occasioned by explosions and dropping of live wires from their old and rickety  transformer.

    Findings showed that the community acquired a new transformer six years ago but the inability to raise for the connection made them stick to the old transformer that constantly puts their lives in danger.

    “We are in serious danger in this community,” a resident who gave his name as Femi said.

    “The old transformer explodes and catches fire almost every time. There is hardly a week or a fortnight it doesn’t explode and when it does, you will see residents running helter skelter. The deafening sound could make someone with high BP to slump and die. People pass under the live wires which always drop. Each time the problem occurs, the power officials will either blame it on the G and P or totally remove the fuse and plunge the community into darkness. In spite of this, they keep bringing estimated bills and harassing defaulters.”

    Way back in 2019, Femi said each building was asked to pay N30, 000 to connect the new transformer. Many residents refused to pay the money. Now, following the way prices of materials have skyrocketed, the levy has jumped to N50, 000  per building. This levy of N50,000 was even as at last year. It is obvious that prices would have gone up again necessitating a review of the levy.”

    Another member of the community, Bisi said he wouldn’t pay because it is the duty of the power company  to connect the transformer.

    “Why will I help them to buy what they need for their business? It is their duty  as private business concern to fix everything that is wrong with our power supply while our duty is to pay the bills as and when due. The exploitation has to stop. People who use power supply for their businesses aren’t working and making money because there is always no light and yet you are levying them. Where will they get the money or will the payment be deducted from their subsequent power bills?

    Transformers don’t come cheap

    Online checks revealed that transformers don’t come cheap. Thus,  leaving them to rust after purchase for whatever reasons could best be described as grievous economic wastage.

    Findings show that a 200kVA 33/415kV goes for almost N10 million while

    300kVA 33/415kV goes for between N13million and ₦16,500,000.00.

    Oshiomhole raises concern about buying transformers, paying for connection by individuals, state governments

    The lawmaker representing Edo North in the National Assembly, Senator Adams Oshiomhole late last year vehemently spoke against the practice of using public or personal funds to buy transformers, cables and other items for power distribution companies (DisCos).

    As private business concerns, Oshiomhole averred that it behoves the DisCos to invest on the business rather than waiting for the consumers.

    His words:  “People will say I committed class suicide in terms of NLC position with regards to private ownership when I supported against the wish of my colleagues, the idea of privatising electricity. My main argument then was that the beauty of capitalism and private ownership was that in seeking to make profit, they will render a service. But the danger of public ownership is that whether they render service or not they draw the taxpayers treasury in the name of  correcting what is there. I could never have imagined as it is today that a private person will collect money for services he did not render and the Nigerian people are helpless.  Even we here as privileged class, I  have had to buy the transformer used here in the heart of Abuja.  To install it, I had to persuade, negotiate and even effect payment to Abuja Distribution to connect the transformer that I have procured personally with my resources and hereafter this transformer becomes the property of the DisCo and every month I am asked to pay bills on Brand A or whatever (On that your transformer, Senate President Godswill Akpabio interjects).”

    Continuing, the former Edo State governor noted that every state governor or most, spend public funds buying transformers for communities  and then “you still have to contribute money… many of us when we go back to the electorate, they are going to tell us that for one year, for two years,  they have no light. What is the problem, no transformer. Then they will ask you, a senator, to go and buy transformer.  You look for the money and buy the transformer and then they say NEPA says you have to pay  to connect the transformer to their grid.  If cables are faulty you will have to buy it for them to install it. Even right now, I have request from several communities asking me to buy them transformer and to get them connected and yet sir, the key element in distribution is transformer and cables among others.”

     If the transformers are procured by state governments using public funds or individuals using their personal resources, “what is the cost that these DisCos are incurring?,”   Oshiomhole asked, adding:   “The money they claimed  to have paid, because the logic of privatisation was to inject private capital into these services.  In truth, they went to borrow from Nigerian depositors funds in various banks thereby killing some of those banks who have now become the liability of AMCOM which itself  has become a contradiction about the logic of free market and what they have borrowed, Mr President through CBN and other sources is 10 times more than the amount they claimed to have paid to become owners of those DisCos.

    “As things stand, Discos own not more than 60 percent, because it is arguable when the total money you have borrowed from public sources   is more than your private capital, whether you can still claim to be publicly owned. Forty percent as we speak still belongs to the federal government. There are no governing boards for these DisCos.  Federal Government owns 60 percent of a business  and it has no say in the board of those companies so there is no corporate governance. The of Edo is owned by a pharmacist, the wife is a banker, the pharmacist becomes the chairman, the banker becomes the MD. They mismanage Edo economy, Delta economy, Ondo economy Ekiti economy and we are right now in crisis.

    Even though I don’t live in Benin, my bill every month, I can’t even afford it.”

    Corroborating Oshiomhole’s position, Senate President, Godswill Akpabio said: “In my state,  I used to buy transformer almost on a weekly or monthly basis and we will give light to the community. But guess what?  When those things were given to the DisCos, through privatisation,  the DisCos  never paid #1 for any of those things. Instead, those are the things they are managing and making money.

    “They are not making a single investment. I think it is applicable to almost the DisCos.  The intention was to give it to them so that they can  revamp   the existing infrastructure  and improve upon it but instead, they went there to manage it just like what is happening in the oil sector. The Discos have failed as far as I am concerned.”

    Why DisCos don’t grant every request for transformer

    The Association of Nigerian Electricity Distributors (ANED) has explained why DisCos don’t grant every  request for transformers.

    The Executive Director, Research & Advocacy of ANED, High Chief Sunday Oduntan in a telephone conversation with our correspondent admitted that it is DisCos responsibility to provide transformers but “there are so many requests and they cannot afford to do everything at a time.”

    Chief Oduntan advised that necessary steps must be followed by individuals and communities when procuring transformers. “There are procedures by law that communities have to inform DisCos before they use their money to do anything. They need to get the necessary approvals from the regulator and the DisCo in their area.  You will write them that you want to buy transformer so that after obtaining it, you can be refunded by way of energy credit.  If you do anything without telling anybody thinking you will be given your money back…for where?”

    Also speaking on the challenges of buying accessories which has kept many communities with transformers in darkness, he said: “When you buy a transformer, you have to energise it. Sometimes, the cost of the accessories is even higher than the cost of the transformer. It is like buying a car without buying tyres.  The accessories are as important as the transformers itself.

    “If anybody is asking consumers to pay for connection, that is not right.  When people see things that are not clear, they should ask questions or report them to the respective DisCo, it is important.”

    Border agency, Senator Abaribe yet to respond

    The Border Community Development Agency, BCDA, was yet to respond to our enquiry on what it is doing to mitigate the sufferings of the above communities.

    The Director/Special Adviser on Special Duties, Atarhe Akpohwaye-Abuh who promised to provide a response to our inquiry  was yet to do so at press time.

    BCDA is a development agency of the Federal Government of Nigeria with the mandate to ensure the sustainable social, economic and infrastructural development of border communities in Nigeria.

    The Senate Committee Chairman on Power , Senator Enyinnaya Abaribe was also yet to respond to our inquiry on what his committee had done about the above concerns raised by the  Senate President Godswill Akpabio and Senator Adams Oshiomhole.

  • Emerging gains, new challenges in health sector

    Emerging gains, new challenges in health sector

    Nigeria’s health sector is undergoing a quiet but determined transformation. Over the past two years, a mix of policy reforms, targeted investments, and strategic collaboration has begun to reshape the system. Amid reduced donor funding and evolving global health priorities, gains in primary healthcare, insurance coverage and system resilience are emerging. The country is steadily building the groundwork for a more responsive and self-sustaining health infrastructure, reports DELE ANOFI.

    Nigeria’s steady advancement towards achieving Universal Health Coverage (UHC) is increasingly gaining international recognition. Time magazine recently named three Nigerian health professionals among its 100 most influential people in health: the Coordinating Minister of Health and Social Welfare, Prof Muhammad Ali Pate; Dr Ladidi Kuluwa Bako-Aiyegbusi, a senior official at the Ministry; and Dr Abasi Ene-Obong, a private sector innovator in genomics.

    Prof Pate was recognised for leading the vaccination of over 12 million girls against the human papillomavirus (HPV), the rehabilitation of more than 900 primary healthcare centres (PHCs), and the launch of the “Know Your Numbers” campaign, which screened 10 million Nigerians for common health risks. Dr Bako-Aiyegbusi received acclaim for her pioneering work in tackling childhood malnutrition by fortifying widely consumed bouillon cubes with vital micronutrients.

    By the third quarter of 2024, Nigeria had surpassed its targets on 31 out of 41 key health performance indicators. According to findings from the 2023 Demographic and Health Survey and the People’s Voices Survey, child mortality has declined by 16.7%, with rates dropping from 132 to 110 deaths per 1,000 live births since 2018. The country has also seen notable reductions in disease burden: diarrhoeal diseases have decreased by 40%, respiratory infections by 30%, HIV prevalence by 12%, and malaria incidence by 5%.

    These improvements have been largely attributed to sustained public investment in primary healthcare. Since 2019, more than N130 billion has been allocated to the Basic Health Care Provision Fund (BHCPF), including N31 billion disbursed in 2023 and N25.8 billion in 2024. An additional N32.8 billion has already been approved to support primary healthcare programmes in the first quarter of the 2025 fiscal year. The Ministerial Oversight Committee (MOC), which supervises the BHCPF, has held more meetings in the past 18 months than in all preceding years combined—an indication of improved governance and accountability in the sector. A core objective of the government’s health reform agenda is to ensure the presence of at least one fully functional PHC in every political ward, with plans to double PHC coverage by 2027.

    There has also been progress in health insurance coverage. Enrolment rose by 11% in the past year, bringing the total number of Nigerians covered to 18.7 million. The long-term ambition remains the achievement of universal health coverage by 2030. While challenges persist, the data suggests that Nigeria is laying the groundwork for a more inclusive and resilient health system. The combination of strategic leadership, increased funding, and multi-sectoral collaboration is yielding measurable results—offering a path forward for sustained health system strengthening.

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    Revamping the health system

    Under the Renewed Hope Agenda, Nigeria has intensified health sector reforms through a suite of strategic frameworks, including the National Health Renewal and Investment Initiative (NHRII), the Nigeria Health Sector Renewal Compact—signed between the Federal Government, all 36 State Governments, and development partners—and the Sector-Wide Approach (SWAp). These coordinated efforts aim to harmonise previously fragmented interventions and build a more integrated, efficient, and self-reliant health system.

    At the tertiary level, 201 hospital projects have been completed and 179 sets of medical equipment procured. Workforce development is another critical area of focus. More than 2,400 new health professionals have been recruited, while 120,000 frontline health workers are undergoing retraining—over half of whom have already completed the process. To address the growing issue of medical brain drain and workforce shortages, enrolment quotas at health training institutions have been expanded.

    Health insurance coverage for vulnerable populations is also advancing. Through the National Health Insurance Authority (NHIA), 1.8 million vulnerable Nigerians have been enrolled, providing them with access to essential health services and reducing out-of-pocket expenditure. In parallel, efforts to industrialise the health sector are gathering pace. A landmark $1 billion agreement with Afreximbank is supporting the expansion of local pharmaceutical manufacturing, with backing from five development finance institutions and more than 70 private firms. A beta-lactam antibiotics plant in Lagos is already operational, creating over 700 jobs. Global players such as Abbott and Siemens are planning local production ventures; while a $240 million Brazilian-funded generics manufacturing facility is currently in development.

    Regulatory reforms are also underway to strengthen oversight and quality assurance. In a bid to streamline and safeguard organ and tissue transplantation services, the government has introduced new Standards and Guidelines for the Establishment and Coordination of Organ/Tissue Transplantation Services in Nigeria. All facilities involved in such procedures are now required to register and obtain licences from the National Tertiary Health Institutions Standards Committee (NTHISC). Additionally, a National Organ Transplantation Registry is being established to enhance transparency and accountability in the sub-sector.

    The game-changing Basic Health Care Provision Fund

    The Basic Health Care Provision Fund (BHCPF) continues to play a pivotal role in Nigeria’s pursuit of universal health coverage. With N130.8 billion committed over five years, the fund is strengthening the foundation of primary healthcare by supporting the establishment of at least one functional Primary Healthcare Centre (PHC) in every ward nationwide. In 2024 alone, N25.8 billion was allocated to support 8,809 facilities, with an additional N12.9 billion pending disbursement. The fund is distributed across four key agencies: the National Health Insurance Authority (NHIA) receives 48.75%, the National Primary Health Care Development Agency (NPHCDA) 45%, the National Emergency Medical Treatment Committee 5%, and the Nigeria Centre for Disease Control and Prevention (NCDC) 1.25%.

    The results are tangible—higher enrolment in health insurance schemes, a reduction in disease burden, and expanded deployment of health workers in underserved communities. Strategic objectives include doubling the number of PHCs per ward by 2027 and achieving universal health coverage by 2030.

    Ending AIDS by 2030: The NACA strategy

    Between 2023 and 2025, the National Agency for the Control of AIDS (NACA) made considerable progress despite diminishing donor contributions. More than 1.63 million Nigerians—representing 86% of people living with HIV—are now receiving treatment. Women comprise nearly 60% of those reached, prompting gender-responsive interventions at the community level.

    NACA’s strategy is rooted in community leadership, decentralised care, and greater reliance on domestic resources. Public campaigns, including those marking World AIDS Day 2023, underscored the role of civil society and the need to reduce stigma. The launch of the National Strategic Framework (2023–2027) introduced a sustainability model with a business-oriented focus. A key milestone is the establishment of the N62 billion HIV Trust Fund of Nigeria, in collaboration with the Nigerian Business Coalition Against AIDS. The Federal Government further allocated N10 billion for HIV-related commodities in 2025, of which N4.8 billion is earmarked for scaling up treatment.

    NACA is also integrating HIV services within broader health systems in 12 states, with plans to extend to 25. By 2025, local manufacturing of HIV commodities—including test kits, condoms, and antiretrovirals—is expected to commence. Notably, efforts to prevent mother-to-child transmission (PMTCT) are gaining ground, with over four million pregnant women screened for HIV in 2023. A newly established Acceleration Plan Committee is leading efforts to close the treatment gap for children.

    Drug safety and local manufacturing: NAFDAC’s reform agenda

    The National Agency for Food and Drug Administration and Control (NAFDAC) has intensified its reform agenda to enhance public health safeguards and regulatory effectiveness. A major achievement is the World Health Organization’s prequalification of the Central Drug Control Laboratory in Lagos, enabling the certification of Nigerian-made medicines for export.

    Crackdowns on counterfeit pharmaceuticals have yielded substantial results, with over N1 trillion worth of fake drugs seized from major markets. To streamline drug distribution and improve oversight, the agency is implementing new regulations—including a ban on alcoholic beverages in sachets, which has faced resistance—and relocating vendors to Coordinated Wholesale Centres, starting in Kano.

    As part of efforts to tighten import controls, Cotecna Inspection Services has been appointed as a third-party inspection agent for pharmaceutical imports from India. In parallel, NAFDAC is supporting local pharmaceutical innovation, including regulatory backing for Nigeria’s first glucometer and diagnostic strip production facility. The agency is working towards achieving WHO Maturity Level 4 certification, positioning Nigeria as a regional leader in pharmaceutical regulation and safety.

    Health insurance reform: NHIA’s inclusive model

    During the period under review, the National Health Insurance Authority (NHIA) undertook significant reforms to expand access and inclusivity within Nigeria’s health insurance landscape. As of early 2025, enrolment figures had risen to 19.2 million Nigerians at both national and sub-national levels—marking a 14% increase from the 16.7 million recorded at the start of the current administration. In February 2025, the NHIA revised key provider reimbursement mechanisms. Capitation payments—fixed annual sums paid to healthcare providers per insured patient—were increased by 93% compared to December 2023. Meanwhile, fee-for-service payments, which reimburse providers for individual medical services, saw a staggering 378% rise over the same period. These adjustments reflect a strategic effort to improve provider incentives and service quality.

    To bolster coverage for vulnerable populations, the agency operationalised the Vulnerable Group Fund. This intervention complements the implementation of the 2023 Operational Guidelines, which aim to harmonise insurers under a single regulatory framework. Central to the NHIA’s forward strategy is the ambition to enrol 50 million Nigerians, with a strong focus on the informal sector—where coverage currently remains under 1%. The NHIA has also rolled out impactful access-driven initiatives. Among them is the National Medicine Supply Initiative, launched in partnership with 12 local pharmaceutical manufacturers. The scheme introduced 33 NHIA-branded generic medicines, projected to reduce drug prices by up to 50%. Currently piloted in seven states and the Federal Capital Territory, the initiative is poised to improve the availability of affordable, quality medicines nationwide.

    Moreover, NHIA programmes now offer free caesarean sections in 172 high-risk Local Government Areas, have treated 1,600 women under the Fistula-Free Programme, and provided emergency obstetric care to nearly 3,000 women. A N32.8 billion first-quarter allocation is sustaining coverage across 8,000 healthcare facilities.

    Strengthening disease preparedness: The NCDC response

    The Nigeria Centre for Disease Control and Prevention (NCDC) has continued to reinforce the nation’s capacity to respond to public health emergencies. During recent outbreaks of cerebrospinal meningitis in Jigawa, Yobe, and Katsina States, the agency led a nationwide response effort, which included the delivery of over one million doses of the Men5cv vaccine. The NCDC activated Emergency Operations Centres in response to multiple outbreaks, while deploying expert teams, essential supplies, and technical support to affected regions. In collaboration with international partners including WHO, UNICEF, and Gavi, the agency expanded diagnostic capacity, improved sample collection, and intensified public sensitisation campaigns.

    Efforts to improve routine immunisation also gained momentum, with the introduction of vaccines for Human Papillomavirus (HPV) and malaria. Coordinated advocacy and strengthened partnerships with state governments have improved disease surveillance and boosted the resilience of Nigeria’s emergency health infrastructure.

    Reinforcing the fight against HIV, TB and Malaria

    Despite diminishing international support—particularly from USAID—Nigeria has demonstrated renewed commitment to tackling its most pressing infectious diseases. The Federal Government earmarked an additional N300 billion for the health sector in 2025, including N10 billion for HIV treatment. This investment targets an additional 100,000 individuals and accelerates progress towards achieving the UNAIDS 95-95-95 targets.

    In the fight against tuberculosis, focus has shifted to improving early diagnosis and detection, particularly in light of rising drug-resistant strains. Innovative domestic financing mechanisms are being explored to address funding shortfalls. A notable intervention came from the First Lady, Senator Oluremi Tinubu, who, in her role as Global TB Champion, contributed N1 billion through her Renewed Hope Initiative (RHI) in 2024 to bolster national efforts.

    On the malaria front—where Nigeria bears 27% of the global disease burden—the government has committed N231.73 billion for 2025, with N41 billion specifically allocated for malaria vaccine procurement. Following successful pilot introductions in Kebbi and Bayelsa States, the vaccine rollout is expected to expand to 17 additional states by year’s end.

    Immunisation breakthroughs and vaccine access

    Nigeria has made significant progress in immunisation, driven by strong political will and robust international support, particularly through the National Primary Health Care Development Agency (NPHCDA). A major milestone was the phased introduction of the RTS, S malaria vaccine in Bayelsa and Kebbi States—a critical intervention in combating a disease that still claims nearly 200,000 Nigerian lives annually.

    Parallel efforts to introduce the HPV vaccine for girls aged 11 to 12 have reached nearly five million children across 15 states, thanks to effective grassroots mobilization and the involvement of traditional institutions and civil society actors. Nigeria also became the first country to receive over one million doses of the MenFive vaccine, which protects against multiple strains of meningitis, marking another immunisation landmark. These efforts are backed by a N303 billion Health System Strengthening (HSS3) grant, aimed at reaching 1.8 million zero-dose children through enhanced routine immunization. Key enablers include solar-powered cold chain equipment and upgraded vaccine distribution infrastructure. On the regulatory front, the revision of the National Vaccine Research and Development Plan signals renewed commitment to local vaccine production.

    Collaborations with Gavi, WHO, and UNICEF have further reinforced Nigeria’s immunization ecosystem, enabling access to critical vaccines and fostering long-term resilience. However, a $430 million annual financing gap persists, underscoring the urgent need for sustainable, domestic funding mechanisms.

    Preventive care and immunisation

    Preventive healthcare is gaining momentum nationwide. Expanded immunization campaigns have delivered millions of doses of measles, tetanus-diphtheria, and HPV vaccines. HIV prevention and treatment services are now offered at over 40,000 health facilities, while cancer care is being scaled through international partnerships, new treatment centres, and the rollout of a national cancer registry.

    Through the Sector-Wide Approach (SWAp) framework, donor funds are now more effectively coordinated. Flagship initiatives like HOPE and HOPE-PHC aim to reach over 40 million Nigerians, focusing on improved governance, digital health tools, and evidence-based health interventions.

    Strengthening cancer control

    In the past two years, Nigeria has intensified its battle against cancer through a multi-pronged strategy centred on prevention, early detection, treatment access, and research. The National Institute for Cancer Research and Treatment (NICRAT), in collaboration with the Federal Government and the Nigeria Sovereign Investment Authority (NSIA), is spearheading the establishment of six Centres of Excellence and six preventive oncology centres—one in each geopolitical zone—to bring screening and diagnosis closer to communities and promote early intervention.

    Preventive strategies have expanded, with the HPV and hepatitis B vaccines now integrated into the national immunisation schedule to help reduce cervical and liver cancer cases. Efforts to build a robust national cancer registry are also underway, aimed at strengthening data-driven policy and resource allocation. Support for vulnerable populations is growing. The Cancer Health Fund has been scaled up, with N1 billion allocated for cancer care in the 2025 budget—including childhood cancers. Public-private partnerships are proving transformative, with collaborations involving AstraZeneca, Roche, and Pfizer helping to cut treatment costs and enhance diagnostic access.

    Cancer infrastructure is expanding nationwide, with over 1,200 healthcare professionals trained to deliver quality care. NICRAT is also driving forward cancer research through initiatives like the SINCCAR project and partnerships with global health institutions. A $250 million private-sector-led Cyclotron hospital is set to be built in Abuja—poised to revolutionize cancer treatment in Nigeria and across the continent. Meanwhile, advocacy by the Nigerian Cancer Society is increasing public awareness and building momentum for greater investment in cancer control. While challenges remain, the response is gaining traction—anchored by political commitment and multi-sectoral engagement.

    Responding to the Japa challenge

    Confronted with the wave of health worker emigration—popularly termed the ‘Japa syndrome’—Nigeria has introduced a suite of workforce retention measures. A high-level committee was tasked with resolving industrial disputes, enhancing remuneration, and creating enabling work environments. The National Health Workforce Migration Policy offers a strategic approach to ethical migration management, talent retention, and diaspora engagement. Infrastructure investments—especially in the revitalization of over 8,000 primary healthcare centres—are designed to make workplaces more attractive for medical professionals.

    Yet, the challenge endures. Issues such as unpaid allowances, policy inconsistencies, and poor facilities continue to fuel the brain drain. Bridging this gap remains a critical priority if Nigeria is to sustain its healthcare reforms.

    Policy and programmatic innovations

    Over the past two years, Nigeria has launched a flurry of reforms under the Health Sector Renewal Initiative, which includes the Nigeria Health Sector Renewal Compact and the Four-Point Agenda. The Compact—signed by the Federal Government, 36 state governments, and development partners—marks a unified commitment to systemic transformation.

    Among the key reforms: Executive Order on Local Drug Production: Removes tariffs on pharmaceutical machinery and raw materials, streamlining manufacturing. NHIA Expansion Strategy: Health insurance enrolment has grown from 16 million to 18.7 million, supported by capitation reviews and closer collaboration with state schemes. Safe Motherhood Guidelines: New protocols such as the Calibrated Drape and Labour Care Guide are targeting 7 million pregnant women and 6 million new-borns annually. Free Caesarean Section Programme: Offers life-saving surgeries at no cost in NHIA-accredited facilities. Dialysis Cost Reduction: A 20% decrease in dialysis charges across federal hospitals in eight states is easing burdens on kidney patients. Maternal Mortality Initiative (MAMII): Provides free maternal services to reduce pregnancy-related deaths. NCD Strategies: New national strategies for hypertension, tobacco control (2024–2028), and task-sharing in care delivery are being implemented. Infectious Disease Control: Updated strategies for HIV/AIDS, hepatitis, and STIs were introduced in late 2023.

    Health governance and transparency

    Accountability is emerging as a cornerstone of Nigeria’s health reforms. In October 2024, the government invited global health watchdogs—including the International Atomic Energy Agency (IAEA), WHO, and the International Agency for Research on Cancer (IARC)—to evaluate its response to non-communicable diseases. The Impact Review Mission Team conducted a comprehensive nationwide assessment, yielding recommendations that are already shaping program adjustments.

    In addition, new partnerships with institutions such as the Mayo Clinic, Milken Institute, Syndicate Bio, Phillips Foundation, and St. Jude Global have strengthened capacity in research, diagnostics, and service delivery. Importantly, anti-corruption agencies and civil society organizations are now part of monitoring and fund-tracking mechanisms, marking a shift toward greater transparency. A pivotal move came with the inauguration of 774 Health Fellows by President Bola Tinubu—an initiative led by the Coordinating Minister for Health—to oversee the construction and activation of 8,800 new primary healthcare centres nationwide.

    While gaps persist in workforce retention, infrastructure, and equitable access, the transformation of Nigeria’s health sector is undeniable. With foundational reforms in motion, expanded service delivery, and enhanced governance, the sector is poised for sustainable growth. Anchored by political resolve, international collaboration, and a commitment to transparency, Nigeria is advancing steadily toward its vision of universal health coverage and global competitiveness in healthcare. The groundwork laid since 2022 could very well define the trajectory of a healthier, more resilient Nigeria.

  • Revenue surges, confidence rises on improved port operations

    Revenue surges, confidence rises on improved port operations

    Since he assumed office as the Managing Director of the Nigerian Ports Authority (NPA), Abubakar Dantsoho’s ability in plugging income leakages, reduction in administrative overheads, trade facilitation and automation of port operations signify major progress at the ports authority, the NPA has attained tremendous achievement. In this special report, Associate Editor ADEKUNLE YUSUF examines the efforts of the man at the helm of affairs at the NPA.

    The Managing Director of the Nigerian Ports Authority (NPA), Abubakar Dantsoho, has recorded significant milestones in driving the government’s economic policies and attracting more revenue to the government’s coffers. The greater efficiency seen in NPA’s diverse operations, such as plugging income leakages, reduction in administrative overheads, trade facilitation and automation of port operations signify major progress at the ports authority. In a single fiscal year, the authority’s earnings surged from N424.2 billion in 2023 to an astounding N893.6 billion in 2024—a 111 per cent leap that has not only outpaced projections but also revitalised national conversations around the economic potential of Nigerian ports.

    The Nigeria Ports Authority (NPA) is central to the Federal Government’s moves to boost revenue for infrastructural development and sustainable economic growth. Aware of the enormous revenue needs of the government, the NPA, under the leadership of Abubakar Dantsoho, has continued to take strategic steps aimed at improving efficiency and productivity at the ports.

    He has, since his appointment as the NPA boss by President Bola Tinubu 10 months ago, demonstrated impeccable professionalism, discipline and persistence to shake up the old-fashioned narratives at the nation’s premier maritime agency. His re-engineering, transformation and repositioning of the NPA speak to fundamental changes that are afoot at the agency. This swathe of changes may lead to an unwitting mix up in the proper contextualisation and appreciation of their scope and significance. On assumption of office, Dantsoho promised to turn the organisation around and ensure Nigerian ports are the most efficient in Africa. He is doing that and more.

    His first order of business on ascending the saddle was to initiate fresh moves targeting cost and value maximisation by infusing greater efficiency in NPA’s diverse operations, plugging income leakages and cutting down on administrative overheads. The quick impact of this course could be felt. Bringing his massive experience at the NPA where he grew through the ranks to bare, there has been improvement of the debt recovery and collection mechanisms, which triggered a remarkable decrease in the debt owed the agency for services rendered to stakeholders, international oil companies (IOCs) and other partners.

    Perhaps, the most staggering testament to Dantsoho’s leadership is the transformation of the NPA’s revenue profile.

    Such an exponential increase is no accident. It is the product of a deliberate strategy anchored in digital transformation, strategic investments, and fiscal transparency.

    Under Dantsoho’s stewardship, the NPA has aggressively pursued the digitalisation of port operations and the introduction of a robust Port Community System (PCS)—a twin initiative that is rapidly closing the leakages through which corruption once seeped and productivity once waned.

    Beyond the balance sheets, Dantsoho’s legacy is being etched into the fabric of NPA’s institutional culture. His tenure has catalysed a revolution in employee welfare and industrial relations, breaking through bureaucratic inertia to address long-standing grievances. With the unflinching support of the Minister of Marine and Blue Economy, Adegboyega Oyetola, Dantsoho facilitated a decisive intervention into the chronic issue of employee stagnation. The green light for long-delayed promotion examinations has rejuvenated morale within the ranks, earning commendations from labour unions, including the Maritime Workers’ Union of Nigeria (MWUN) and the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSACGOC).

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    Collaboration for export growth

    Following the repositioning of the port system that has improved efficiency, the Nigerian Ports Authority recently announced plans to ensure the operational collaboration necessary to grow exports. Dantsoho announced this when he received the Chief Executive Officer of the Nigerian Liquefied Natural Gas (NLNG) Limited, Dr. Phillip Mshelbila at the NPA headquarters.

    The NPA boss said: “Imbued by the mandate of the Minister of Marine and Blue Economy Adegboyega Oyetola for the NPA to support the increased export orientation of the Federal Government, we assure you of our unwavering support. Nigeria LNG (NLNG) has played a key role in Nigeria’s economic development and export growth since its inception. We will grow this partnership.”

    During the visit, Mshelbila expressed Nigeria LNG’s appreciation for the NPA’s continued support and solicited increased synergy as NLNG Limited is expanding its LNG production capacity to take advantage of increased global demand. Nigeria’s attainment of a trade surplus of N5.81 trillion ($3.7 billion) in the third quarter of 2024, as reported by the Nigerian Economic Summit Group (NESG) foreign trade alert was through exports predominantly consummated on the platforms of the Nigerian Ports Authority.

    Dantsoho had on assumption of office last year promised to reposition the agency for increased productivity and greater efficiency for improved revenue generation. He said the NPA under his watch would rise up to the intense competition from neighbouring countries. Also, he promised to work hard to improve efficiency, reduce costs and enhance the overall user experience at the nation’s seaports.

    He said: “As we embark on this journey together, I wish to state that our main goal is to reposition the organisation for increased productivity and greater efficiency for improved revenue generation to the Authority and the country. We must rise up to the intense competition we face from our neighbours; we must work hard to improve efficiency, reduce costs and enhance the overall user experience in our ports.

    “I am confident that our predetermined objectives can be achieved through our collective efforts, therefore, collaboration and teamwork will be the cornerstone of our success. I urge you to join me on this journey. I assure you that we will aim to pay closer attention to the welfare of members of staff by ensuring timely payment of emoluments, compensations and addressing issues of training and capacity development, particularly for deserving employees who add value in their areas of deployment.”

    AfCFTA and ports modernisation

    Determined to ensure that the Nigerian ports take advantage of the intra-African trade that is expected to increase with the coming into operation of the African Continental Free Trade Area (AfCFTA), Dantsoho took steps to reposition the Nigerian ports to improve its competitive strategy to stay ahead of its rival ports.

    This, Dantsoho said, is because he envisaged that intra-African trade will significantly increase with the collapse of trade barriers across Africa, saying “it is, therefore, imperative that the Nigerian ports reposition to be competitive in order not to lose their gateway traffic to the ports.

    “Our vision is to be the maritime logistics hub for sustainable port services in Africa,” he affirmed. He further said: “In the quest for our country to optimise the benefits accrued from AFCFTA, there is no gainsaying that the port plays a pivotal role as a nodal point in international logistics. Given the fact that port cost is a significant component of freight cost, which ultimately affects the prices of goods in the market, this speaks to the importance of our ports being competitive and efficient. This requires strategic collaboration of every player in the port system for this to be actualised.”

    He further noted that the macro-economic environment of a country is intricately linked to its ports’ performance and competitiveness, saying factors such as inflation, exchange rates and economic stability influence trade flows and investments. Dantsoho expressed his gratitude to Oyetola for his support in every step the authority is taking to reposition the Nigerian ports.

    To improve competitiveness at the ports, there has been a port modernisation project meant to position Nigerian ports at the edge of competition and efficiency.  For instance, aside from the newly developed Lekki Deep Seaport, the remaining six ports in the country are grappling with decrepit infrastructure, ranging from silted channels to collapsed breakwaters and quays.

    “It is consequent upon this that the Authority has embarked on a port modernisation project aimed at revamping the dilapidated infrastructure. The Lagos Port Complex and Tin Can Island Port Complex will serve as pilot projects,” he said.

    Port Community System/National Single Window, he said, is a digital collaborative platform that enables seamless exchange of information among the many port stakeholders and provides a platform for one-stop shop payments for all activities within the port ecosystem.

    He assured that this would reduce paperwork and administrative bureaucracy. He further said that NPA in collaboration with the International Maritime Organisation (IMO) is working towards the actualisation of this project.

    “The Port Community System (PCS) is envisaged to culminate into the National Single Window (NSW) for maximum efficiency and competitiveness,” he said.

    Dantsoho pointed out that port operations can only be automated with modern and strong infrastructure. For instance, in container operations, modern Ship-to-Shore cranes can only be deployed on strong quay aprons, stressing that “automation of our operations will be a major paradigm shift for our port efficiency. It is expected to reduce the turnaround time of container vessels to hours instead of days.”

    He affirmed that the country has a few new deep-seaport projects underway; the Badagry, Ibom, Calabar and others, saying with the right and skilled manpower deployed to these new ports, Nigerian ports will certainly be competitive. Export Processing Terminals (EPTs)– Dantsoho stated that the NPA, in collaboration with the Nigeria Customs Service, approved the establishment of six Export Processing Terminals (EPTs) in the Lagos area.

    Recently, the Presidential Enabling Business Environment Council (PEBEC) and NPA launched the Ports and Customs Efficiency Committee (PCEC), a move aimed at enhancing efficiency and ease of doing business at the country’s sea ports.

    The PEBEC Director-General, Zahrah Mustapha, said improving efficiencies at the country’s seaports would reduce cargo dwell time, vessel turnaround and turnover for customers.

    Awards and recognitions

    Since appointment on July11, 2024, Dantsoho has earned accolades and awards from several media organisations, including Man of the Year award by The Reporters Nigeria Magazine, in recognition of his transformative leadership in the maritime sector, among other awards from Vanguard and BusinessDay newspapers.

    Dantsoho, according to the management of the magazine, was honoured for his outstanding contributions to port efficiency, trade facilitation and Nigeria’s global maritime standing.

    “Under his leadership, the NPA sustained port efficiencies that helped drive Nigeria’s international trade volume to N5.81 trillion ($3.7 billion) in the third quarter of 2024,” the magazine’s management explained.

    An important highlight of his tenure, it stated, has been the successful implementation of President Bola Ahmed Tinubu’s strategy for reducing petroleum imports, which significantly cut foreign exchange demand.

    “He also spearheaded Nigeria’s full membership in the International Port Community System Association (IPCSA), enhancing trade transparency through the National Single Window (NSW) project.

    “Dantsoho’s leadership was instrumental in increasing trans-shipment cargo processed from Lekki Deep Seaport, catering to landlocked areas in Nigeria,” the management added, even as the magazine’s management further noted that his diplomatic efforts secured Nigeria’s re-admission into the prestigious Category C of the International Maritime Organisation (IMO).

    Recognised as the first Nigerian to be elected President of the Port Management Association of West and Central Africa (PMAWCA), Dantsoho’s influence extends beyond Nigeria, positioning the country as a crucial player in regional maritime affairs.

  • 100,000-Homes dream and Nigeria’s housing deficit crisis

    100,000-Homes dream and Nigeria’s housing deficit crisis

    With Nigeria’s housing deficit widening against the backdrop of rapid population growth, the Federal Government’s Renewed Hope Cities and Estates Programme promises a bold step toward mass homeownership. However, while the initiative offers a glimmer of hope for many, significant gaps—ranging from affordability to access—continue to dim the dream of owning a home for millions of Nigerians, reports Assistant Editor OKWY IROEGBU-CHIKEZIE

    As Nigeria races towards a demographic milestone, the urgency for solutions to its housing crisis has never been greater. With a population currently estimated at 223 million and projected by the World Bank to reach 262.9 million by 2030—and a staggering 401.3 million by 2050—the country is on course to become the third most populous nation on earth. This explosive growth, while rich with economic potential, also brings with it an acute demand for housing, infrastructure, and jobs.

    Among the most pressing challenges is Nigeria’s yawning housing deficit, which has long plagued urban and rural communities alike. For a forward-looking administration, addressing this shortfall is not just a developmental necessity—it is a national imperative. In a bold move to tackle the crisis, President Bola Ahmed Tinubu launched the construction of the Renewed Hope Cities and Estates in February 2024. The flagship project kicked off with 3,112 housing units in Karsana, Abuja, and was swiftly followed by similar developments across the country. Encouragingly, tangible progress is already evident—not just in the bricks and mortar of housing units, but in the broader reforms aimed at overhauling the housing sector.

    At present, 14 active construction sites are underway nationwide, accounting for a total of 10,112 housing units. As part of the Renewed Hope Estates initiative, 12 estates—each comprising 250 housing units—are under construction in 12 states, representing two from each geo-political zone: North-East: Yobe, Gombe; North-Central: Nasarawa, Benue; North-West: Sokoto, Katsina; South-East: Abia, Ebonyi; South-South; and Delta, Akwa Ibom. Together, these sites are expected to deliver 3,000 homes in the first phase alone.

    Meanwhile, the government has rolled out plans for Renewed Hope Cities—larger, urban-style housing schemes—beginning with developments in the Federal Capital Territory (3,112 units), Kano (2,000 units), and Lagos (2,000 units). Additional projects are in the pipeline for Enugu, Borno, Rivers, and Nasarawa. The overarching goal is to establish at least one Renewed Hope City in every geo-political zone as well as in the FCT.

    Significant strides have already been made, with a substantial number of units at the roofing stage. The Federal Ministry of Housing is working closely with developers to ensure that the projects are completed and inaugurated as scheduled. For instance, at the Abuja site, 1,000 housing units are nearing completion—requiring only plastering and internal finishing. According to industry analysts, these construction efforts have generated over 252,800 jobs, based on an average of 25 jobs per unit. These include both direct and indirect employment opportunities for Nigerians across the economic spectrum. From architects, civil engineers and surveyors to masons, carpenters, electricians, plumbers, steel fixers and welders—right down to security guards, labourers, concrete pourers, and site excavators—the Renewed Hope Cities and Estates initiative is not only providing shelter, but also serving as a powerful engine of economic revival. By harnessing the potential of the housing construction sector, the initiative is delivering meaningful work, lifting thousands off the streets, and laying the foundations for a more secure and equitable future.

    Opening the door to home ownership

    For many Nigerians, owning a home has long seemed like a distant dream—out of reach due to soaring property prices and prohibitive mortgage requirements. But recent reforms under the Renewed Hope Agenda are beginning to shift the narrative, offering more accessible pathways to home ownership for a broader cross-section of citizens. One of the most viable routes is through the National Housing Fund (NHF) mortgage loan, administered by the Federal Mortgage Bank of Nigeria (FMBN). Under this scheme, eligible Nigerians can secure housing loans of up to N50 million, repayable over 30 years at an affordable 6 per cent interest rate. This stands in stark contrast to the steep 18–23 per cent interest charged by most commercial banks.

    What makes the NHF loan particularly attractive is the comparatively low equity requirement. Unlike commercial banks that may demand up to 30 per cent equity, the NHF requires just 10 per cent. For instance, a loan of N10 million would require only N1 million as upfront equity—a potentially life-changing difference for many working-class Nigerians. Another innovative product from the FMBN is the Rent-to-Own scheme. This initiative allows contributors to the National Housing Scheme to move into a home and begin paying for it in monthly, quarterly or annual instalments, over a 30-year period, at a modest 7 per cent interest rate—all without any initial equity. It’s a model designed for flexibility, dignity, and gradual empowerment.

    Critics argue that prices are still out of reach for the very people the programme intends to support. For example, a one-bedroom apartment at the Renewed Hope City in Karsana, built under a Public-Private Partnership (PPP), is priced at approximately N22 million. In contrast, a similar unit under the Renewed Hope Estates, funded via government budgetary allocations, costs around N10 million.

    In response to growing public scrutiny, the government has pledged further interventions to cushion the affordability gap. Plans are underway to establish a National Social Housing Fund (NSHF)—a bold move aimed at ensuring that low-income earners, the unemployed, the vulnerable and other underprivileged groups are not left behind in the quest for decent and dignified shelter. Ultimately, the evolving suite of options and reforms signals a renewed political will to democratise home ownership in Nigeria—bridging economic divides and enabling millions to finally call a house their home.

    To further strengthen its commitment to inclusive housing, The Nation has learnt that a memo to the Federal Executive Council (FEC) and an Executive Bill to the National Assembly are currently in the works to establish a National Social Housing Fund (NSHF). The proposed fund is expected to draw from diverse sources, including annual budgetary allocations, philanthropic donations, corporate social responsibility contributions, and even voluntary donations from patriotic Nigerians. Insiders close to the administration affirm that President Tinubu is approaching Nigeria’s housing challenge with gravitas and a structured, deliberate strategy. They maintain that the President clearly recognises the urgency of the situation and is resolute in his mission to rekindle citizens’ hope in the possibility of affordable, accessible, and functional housing for all.

    According to Dr Olayemi Rotimi-Shodimu, one of the Conveners of the Renewed Hope Housing Public-Private Partnership (PPP) initiative, the programme seeks to offer more than just shelter—it is designed to chart a clear policy direction and provide a structured roadmap for housing-sector PPPs in Nigeria. Beyond policy, the initiative is also engineered to facilitate stakeholder engagement, bringing together key players from across the spectrum—government officials, private sector investors, and international development partners—to foster deeper collaboration and attract sustainable investment into the sector.

    At the heart of this reform effort is the Renewed Hope Social Housing Programme, which forms a crucial pillar of President Tinubu’s broader agenda for inclusive growth. The programme is targeted specifically at low-income earners, the unemployed, internally displaced persons (IDPs), and other marginalised groups, spanning both the formal and informal economic sectors. One of the most ambitious components of the programme is the construction of 100 housing units in each of Nigeria’s 774 local government areas, translating to a remarkable 77,400 homes. The government aims to deliver these within a one-year timeframe—a bold undertaking that underscores the scale of its ambition.

    The Minister of Housing, Ahmed Dangiwa has revealed that the ambitious Renewed Hope Social Housing Programme will be financed through the Renewed Hope Infrastructure Development Fund (RHIDF). According to him, each estate under the initiative will be developed as a complete community, equipped with vital amenities such as a primary school, healthcare clinic, recreational spaces, police outpost, and a shopping mall—all designed to foster safe, dignified living. Speaking on the all-important issue of affordability, Dangiwa explained that 80 per cent of the homes will be sold to residents of the host communities, based on their ability to pay one-third of their monthly income. “Someone earning N30,000 monthly can pay just N10,000 to own a house,” he said, underscoring the administration’s commitment to housing access for everyday Nigerians.

    The remaining 20 per cent of the homes, he added, will be allocated free of charge to vulnerable Nigerians, including widows, orphans, and those with little or no income. This component ensures that no one is left behind in the government’s drive to provide inclusive and equitable housing. Dangiwa also clarified that the Renewed Hope Social Housing Programme is the third leg of a broader housing agenda, which includes Renewed Hope Cities and Renewed Hope Housing Estates. These three components work in synergy to address different layers of housing demand—urban, peri-urban, and rural.

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    At present, Renewed Hope Cities are under development in seven locations, namely Abuja, Rivers, Lagos, Enugu, Nasarawa, Kano, and Maiduguri—each representing one of the six geopolitical zones plus the Federal Capital Territory. These are being executed through Public-Private Partnership (PPP) arrangements, combining public vision with private sector efficiency. In addition, the federal government plans to construct 250 housing units in two capital cities per geopolitical zone, totalling 12 cities under the Renewed Hope Estates scheme. Unlike the Cities, these Estates are being directly funded through the federal budget, with a clear intent to expand further in the coming fiscal year.

    Yet, despite these bold strides, housing experts warn that Nigeria’s deficit—estimated in the tens of millions—cannot be closed through conventional funding models alone. To effectively bridge the gap, at least one million housing units must be built annually for the next 20 years. This, they argue, would require extra-budgetary innovations and sustainable financing mechanisms far beyond yearly allocations.

    On funding and financial innovations

    Building houses is not cheap—especially not at the scale required to dent Nigeria’s housing deficit. But under President Tinubu’s Renewed Hope Agenda, the Federal Ministry of Housing and Urban Development is deploying creative, multi-layered funding strategies to make decent shelter a reality for all. According to Dangiwa, the financing model for the Renewed Hope Housing programme stands on three robust legs: budgetary allocation, public-private partnerships (PPPs), and financial engineering to bridge affordability gaps. “We understand that traditional budgetary channels alone are inadequate. So we’ve embraced diverse strategies to achieve results.”

    The first strategy is direct budgetary provision. The Ministry is funding 12 Renewed Hope Estates across the country through the N50 billion 2023 Supplementary Budget, with an additional N27.2 billion allocated in the 2024 budget to complete critical infrastructure. Plans are already underway to scale the programme further in the 2025 fiscal year to cover more states. The second—and perhaps more transformative—approach is the deployment of Public-Private Partnerships. For instance, the three Renewed Hope Cities currently under development in Abuja, Lagos, and Kano are being delivered through a consortium of private developers who are expected to build up to 100,000 housing units nationwide.

    Here’s how it works: the private developers source land and secure construction finance, while the government provides the enabling environment and off-taker guarantees. One of the standout examples is the Karsana Renewed Hope City, where the Ministry facilitated a N100 billion Bankable Off-taker Guarantee through the Federal Mortgage Bank of Nigeria (FMBN). This singular intervention enabled developers to mobilise over N40 billion in construction financing—an unprecedented feat in Nigeria’s housing history. To further enhance affordability, the government has introduced a cross-subsidy model. Under this model, homes in the Renewed Hope Cities are offered at commercial rates to high-income buyers, while a significant percentage is sold at concessionary prices to low- and middle-income Nigerians, particularly members of the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC). This strategy fosters integrated communities while ensuring that the poor are not priced out.

    Still, the challenges are enormous. Experts estimate that to close Nigeria’s housing gap, the country must build 550,000 units annually for the next 10 years—a task requiring a whopping N5.5 trillion per annum. Clearly, PPPs alone are not a silver bullet. This disparity is starkly evident in the pricing. A one-bedroom unit at the Renewed Hope City in Karsana, developed under the PPP model, goes for about N22 million. In contrast, a similar unit in the Renewed Hope Estates, which are budget-funded, costs just N10 million. What accounts for this massive difference?  Through this thoughtful blend of policy realism, financing innovation, and social inclusion, the Tinubu administration is trying to break the long-standing jinx of affordable housing in Nigeria.

    Some may ask: Why does the government continue to pursue Public-Private Partnerships (PPPs) in housing? The answer lies in a delicate but deliberate balancing act between equity and efficiency. As Dangiwa explained, the federal government has a dual obligation: to catalyse private sector involvement in housing delivery while ensuring that every Nigerian—regardless of income—has access to decent shelter. While the PPP-driven Renewed Hope Cities cater primarily to high- and middle-income earners who can bear market-driven prices, the budget-funded Renewed Hope Estates are explicitly designed to meet the needs of lower-income Nigerians. The result is a more inclusive housing ecosystem—one that reflects both economic diversity and social responsibility.

    Still, government is acutely aware that PPPs alone cannot bridge the nation’s vast housing deficit. The numbers speak for themselves: Nigeria needs to construct at least 550,000 units annually for the next decade—a feat that requires a staggering N5.5 trillion per year. By contrast, the current N50 billion annual housing budget barely scratches the surface. To change this narrative, the Ministry has launched a bold advocacy campaign, successfully engaging the National Assembly. As a result, there is now broad legislative backing for a significant increase in the housing budget. Beginning with the 2025 budget cycle, the Ministry aims to secure at least N500 billion annually. This expanded funding would enable the scaling of the Renewed Hope Estates programme to all 36 states, doubling housing targets from 250 to 500 units per state—a critical step toward national coverage.

    In a strategic move that signals Nigeria’s intent to deepen international cooperation, the Ministry is finalizing a ground-breaking partnership with Shelter Afrique Development Bank (ShafDB)—a Pan-African housing finance institution in which Nigeria is the largest shareholder. The first phase of this collaboration will see an investment of N50 billion to deliver 5,000 housing units. This marks the first time the Nigerian Ministry of Housing and Urban Development will directly access financing from ShafDB—a milestone Minister Dangiwa called “another Renewed Hope First.”

    Beyond attracting international finance, the Ministry is working to optimize the performance of its key housing agencies—particularly the Federal Mortgage Bank of Nigeria (FMBN) and the Federal Housing Authority (FHA). Under the Renewed Hope Agenda, FMBN has emerged as a vital engine for affordable housing. Between May 2023 and April 2025, the Bank disbursed N59.3 billion in housing loans, delivered 2,465 housing units, and created over 61,625 decent-paying construction jobs across the country. Notably, FMBN has supported 17,980 Nigerians with single-digit interest loans, including home renovation loans, rent-to-own schemes, and the innovative Cooperative Housing Development Loan and Individual Construction Loans.

    The bank’s flagship intervention, however, remains the N100 billion Bankable Off-taker Guarantee for the Renewed Hope Cities—an unprecedented move that de-risks private investments and boosts developer confidence. In addition, FMBN recently launched a Rent Assistance Product, designed to ease the financial burden on renters by allowing them to pay rent in monthly instalments over a year, a critical innovation in a country where yearly rent demands often push citizens into financial distress. Meanwhile, the Federal Housing Authority has quietly but efficiently negotiated free land donations from 20 state governments, a gesture that drastically reduces development costs. In Phase One, the FHA is set to begin construction of 200 Renewed Hope Houses across 17 states, setting the stage for broader interventions in subsequent phases.

    While the supply of housing remains central to the Renewed Hope Agenda, Minister Ahmed Dangiwa is clear-eyed about another foundational priority: improving Nigeria’s land administration system. The objective, he said, is to create a land governance framework that ensures clarity, security, and accessibility in land ownership and transactions. These are the bedrocks upon which investor confidence and long-term national development can rest.  Yet even as policy reforms are underway, questions continue to swirl around the true affordability of government-delivered housing, especially for Nigeria’s low-earning citizens. Surveyor Ibikunle Ajao is one of those calling for a deeper interrogation of Nigeria’s housing economics. He takes issue with the popular narrative that sees housing units priced at N10 million per room as attainable. He pointed out that the real problem lies not just in price tags, but in the structural roots of housing inflation—including what he termed “dead capital,” the prohibitive cost of land and building materials and the absence of innovation in local construction technologies.                

    Why isn’t  the government investing heavily in research to bring down construction costs?” He painted a stark picture: a university graduate earning N120,000 monthly—N1.44 million annually—who must pay for rent, transportation, food, and health care. “Tell me,” he asked rhetorically, “how many years would it take for such a person to save N10 million to buy a single room?”

    An estate surveyor and Chairman of the Board of Trustees at the Society for Professional Valuation (SPV), Mr. Sola Enitan, agrees that the housing deficit cannot be solved by government alone. He advocates a multi-pronged approach—one that harmonizes policy reform, private sector engagement, and international financing. Also weighing in is Toye Eniola, Executive Secretary of the Association of Housing Corporations of Nigeria (AHCN). He took a more nuanced stance on the question of affordability, suggesting that N10 million for a one-room apartment cannot be universally classified as expensive or cheap without context. “Affordability depends on several indices—location, quality of finishing, building materials, and target buyers,” Eniola explained. “A one-bedroom apartment in Victoria Island, Lagos, cannot be priced the same as one in Ikorodu.”

    However, when viewed through the lens of Nigeria’s working class—especially civil servants earning the N70,000 minimum wage—the numbers become sobering. Eniola concluded that for the lowest earners, the current housing price point is “simply unaffordable.”

    While the Renewed Hope Housing Programme signals a bold step toward tackling Nigeria’s housing deficit, concerns persist over its delivery, affordability, and long-term impact. Developer Ezenwa Udoji described the programme as visionary, crediting it with the potential to generate jobs and revitalise local economies. He noted that the incorporation of public-private partnerships and infrastructure in housing estates is commendable. However, he warned that success hinges on greater transparency, accountability, and fairness. Udoji advocated for citizen engagement, real-time updates, and strict enforcement of quality standards to restore public trust and prevent corruption.

    Expanding the conversation, Kunle Awolaja, President of the African Real Estate Society (AFRES), argued that bridging Nigeria’s 25 million housing deficit demands a multi-pronged approach. He called for policy reforms, sustainable building innovations, streamlined land processes, and expanded mortgage options, including micro-mortgages and rent-to-own schemes. Awolaja also stressed the importance of digitising land records, decentralising urban growth through satellite cities, and investing in local building materials. Both experts agree: while Renewed Hope lays a promising foundation, only a holistic, transparent and inclusive framework will ensure its success. For now, Nigerians are watching — hopeful, yet cautious.

  • Raising more entrepreneurs to drive jobs, economic growth

    Raising more entrepreneurs to drive jobs, economic growth

    Productive entrepreneurs invigorate economies by introducing groundbreaking technologies, novel products, and innovative services. Often unseen and underestimated, entrepreneurs play a pivotal role in shaping the economic landscape, generating jobs, and fostering innovation. Despite representing a small fraction of the workforce, their impact reverberates throughout economies, injecting dynamism and driving progress. Mohammed VI Polytechnic University (UM6P) Ventures is rapidly establishing itself as a key hub for innovation and entrepreneurship in Africa, as evidenced by the success in raising entrepreneurs, DANIEL ESSIET writes.

    The ripple effects of entrepreneurial activity extend beyond direct job creation. By establishing new businesses, entrepreneurs inject much-needed competition into markets. This increased competition benefits consumers through lower prices and a wider array of choices. 

    However,for generations of smallholding farmers in Nigeria, it has been challenging making money  toiling under the weight of unpredictable weather, financial hardship, and the ever-present threat of crop failure.  Chief Executive, SMEFUNDS, Femi Oye said there was a need to deploy Artificial Intelligence (AI), to enable them, transforming their vulnerable farms into potentially thriving agri-businesses.

    Indeed, a new wave of optimism is sweeping through agricultural communities in Nigeria as experts champion the integration of AI to transform smallholder farming practices. The promise of AI extends beyond simply boosting crop yields; it’s about cultivating hope and empowering agri-entrepreneurs at the grassroots level, according to Oye, a proponent of AI in agriculture.

    Profitable farming, encompassing everything from sound agronomic techniques and farm advisory services to timely guidance on land preparation, planting schedules, pest control, and rigorous quality testing to meet market standards, stands to be revolutionised by AI deployment.

     Oye believes this technological shift can empower smallholders to break free from the constraints of subsistence farming.

    He is not alone. Drone Champion Femi Adekoya is already on the ground, utilising precision agriculture tools to equip farmers with crucial field information. The tools enable the early detection of pest infestations and nutrient deficiencies, allowing for swift and targeted interventions. Adekoya envisions a future where the lives of thousands of smallholding farmers across Nigeria are significantly improved through these advancements.

     With the global AI market expected to reach $1.8 trillion by 2030, Mohammed VI Polytechnic University (UM6P) is positioning itself as a leader in AI innovation, research, and deployment. There is a focus on  industry collaboration, and skill development to boost economic growth and job creation. The idea is to work with the public and private sector players in Morocco, Nigeria and the rest of the continent to push for AI applications in agriculture and other industries and to  enhance efficiency and accelerate digital transformation. Additionally, AI-driven automation is expected to create over 20 million jobs by 2030, balancing concerns about job displacement with new opportunities in emerging sectors.

    The need for innovation is particularly critical in countries such as Nigeria and Morocco, alongside the rest of the continent, where growing urban populations and evolving consumption patterns are further amplifying food demand.

    While national statistics on the precise gap between current agricultural output and projected demand in Nigeria and Morocco are being updated, the broader continental projection of a 2.5 billion population by 2050 starkly illustrates the scale of the challenge. Without significant advancements in sustainable food production and processing capabilities, achieving food security for all Africans will remain a formidable task.

    READ ALSO: Can Nigeria First policy fire up sluggish manufacturing sector?

    At the opening ceremony of DeepTech Summit 2025, in Morocco, the President UM6P, Hicham El Habti, noted: “Africa has a unique stake in this future. We have the youngest population in the world. 60 per cent  under the age of 25. That’s not just a demographic fact or a statistic, it’s our greatest asset. A generation of builders, dreamers, and doers, ready to engage the world on equal terms. But potential needs infrastructure. Talent needs ecosystems. Vision needs platforms. This is what we are building here at UM6P and what this summit exemplifies. A platform for science-backed entrepreneurship, where academic excellence meets industrial agility, where research becomes ventures, and where ideas find the means to scale. At UM6P, we define deep tech not as hype, but as high-consequence innovation, where scientific breakthroughs are mobilised to solve humanity’s most pressing challenges. Whether we’re talking about sustainable agriculture, next-generation health systems, green energy, or quantum, deep tech is the architecture behind a more resilient, inclusive, and intelligent future. And powering this transformation is Artificial Intelligence, not as a novelty, but as a strategic enabler. It is about empowering Africa to not only adopt global innovations but to create them, export them, and lead the world toward a brighter future.”

    The summit brought together a diverse global community to explore the pivotal role of AI, entrepreneurship and innovation in achieving the United Nations’ Sustainable Development Goals (SDGs).

    According to him, the  agricultural sector holds the potential to drive economic growth, employment, and sustainability. However, to realise the vision of a developed sector, he indicated that the players  must embrace technology, innovation, and modernisation.

    With the integration of advanced technologies such as AI, he was of the opinion, farmers will be availed of solutions that can directly contribute to the achievement of the continent’s sustainable agricultural goals. Already, the university is driving precision farming, powered by AI, that can optimize resource use such as water and fertiliser.

    He wants an industry strong on data analytics, high-performance computing, and big data enables the development of actionable insights for farmers, researchers, and policymakers.

    One of the key focus areas of UM6P Ventures, a subsidiary of the university, is to cultivate a thriving environment for agritech entrepreneurship.

    According to the Chief Executive, UM6P Ventures, Yassine Laghzioui,AI is poised to transform agriculture across Africa, offering a powerful toolkit to enhance productivity, empower smallholder farmers, and bolster food security in the face of increasing challenges. He indicated that the organization is determined to work with public and private sector organisations to highlight the immense potential of AI to revolutionize farming practices in nations like Nigeria, Morocco, and the wider African continent. Compared to previous technological advancements, he highlighted AI’s ability to perform cognitive tasks opens up a vast array of applications within the agricultural sector. From optimising resource use and predicting weather patterns to identifying crop diseases and automating farming tasks, offering solutions to many of the challenges hindering agricultural productivity in Africa.

    In Nigeria, experts believe AI tools can be  used to analyze soil and weather data, leading to significant increases in crop yields. Similarly, in Morocco, AI can help optimize irrigation in water-scarce regions, ensuring efficient water management for crops.

    While the potential of AI in African agriculture is immense, analysts acknowledge challenges such as infrastructure deficits, high initial investment costs, and the need for digital literacy and skills development among farmers. To this end, he indicated that collaboration between governments, technology companies, research institutions, and farmers is essential for successful AI integration. According to him, the university through its UM6P Ventures is rapidly establishing itself as a key hub for innovation and entrepreneurship in Africa, as evidenced by the resounding success of  the annual DTS. The summit, held in Benguerir, has become a focal point for researchers, industry leaders, policymakers, and startups from across the globe.

    DTS 2024 saw the attendance of approximately 2,000 participants from around 30 countries. This DTS 2025  demonstrated even greater global interest, with over 7,000 registrations from 53 countries.  The summit has also garnered significant traction from the startup ecosystem, with nearly 1,000 startups registered for the 2025 event, including 83 particularly innovative ventures.

    He explained that UM6P’s commitment to fostering a dynamic entrepreneurship and venturing ecosystem is evident in the support it provides to startups through its Startgate initiative.

    Over the next five years, he  envisions the creation of thousands of jobs, the incubation of numerous agritech startups, and the development of commercially viable patents and technologies. This ambitious goal aligns with  the Federal Government’s  broader economic objectives of achieving technological self-reliance and becoming a significant player in the global agritech market.

     Africa, particularly Nigeria, stands to gain immensely from the burgeoning technology development across the continent, especially the strides being made in Morocco, according to Emeka Afigbo, a key player in the African tech space.

    Initiatives such as DTS powered by UM6P University and its deep tech ecosystem,he explained, presents a significant opportunity for regional growth.

    Afigbo highlighted the importance of establishing “centers of excellence” within Africa, with Morocco positioning itself as a world-class technology hub. He emphasised the comprehensive approach taken, encompassing education, deep research, go-to-market strategies, and investment, all within one entity. “In terms of the impact, I can only see positive impact,” Afigbo stated, noting that such developments provide a closer aspiration point for young Africans in the technology sector.

     He also acknowledged the welcoming stance of the Federal  Government and the presence of Nigerian students on the campus benefiting from these opportunities.

    The conversation then shifted to the transformative potential of Artificial AI in key sectors  such asfood production and renewable energy, amidst global discussions about job displacement. Afigbo offered a reassuring perspective, drawing parallels with previous technological shifts. “I don’t believe. AI will take your job.  But your job could be taken by somebody who knows AI,” he asserted.

     He stressed the importance of upskilling and adapting to the new technological landscape, recalling the transition from typewriting to desktop publishing as an example where embracing new skills led to better opportunities.

    In the context of Nigeria’s agricultural sector, Afigbo pointed out the paradox of vast arable land and a shortage of people engaged in cultivation.

    He envisions AI as a tool that will help more Nigerians utilise land resources making agriculture more attractive to young people through technology-driven solutions such as  drone technology and precision farming.

    He cited examples of modern Nigerian farms already leveraging these technologies and experiencing growth, leading to increased hiring. “My fear is that we’re not jumping on it fast enough,” he cautioned.

    Addressing the potential for job creation, Afigbo referenced the overwhelming response to the Nigerian government’s 3MT program, which saw “about more than a million people” expressing interest in learning tech.

     He noted the significant completion rate in the pilot phase, with over 90,000 individuals trained so far. “The potential for jobs for those people is unimaginable,” he declared, highlighting existing demand in sectors such as  semiconductor chip design and business process outsourcing. However, he underscored the critical need for training programmes to align with the evolving demands of the job market in the age of AI.

    Afigbo emphasised a call to action, emphasising that the potential of AI is “not magic,” but requires focused effort and investment in building the necessary capacity to harness its power for economic development and job creation across Africa.

    The vibrant energy of Africa’s youth holds the key to unlocking unprecedented innovation and entrepreneurial growth across the continent. This was a powerful message that  resonated strongly during the deep tech summit. The same with the push to boost food production across the continent.

    A Tunisian entrepreneur and co-founder of Kumulus Water, Mohammed Ali, a has his sights set on expanding his impactful venture to Nigeria and the rest of Africa.

    With a deep understanding of the challenges posed by water scarcity, particularly within farming communities, Ali is pioneering innovative solutions in the arid landscapes of Northern Tunisia.

     Ali and his team are developing cutting-edge methods to extract potable water from the very air, offering a sustainable and localised answer to the growing global water crisis. Their technology has the potential  to empower agricultural communities, providing a reliable water source that can withstand the increasing pressures of climate change and dwindling traditional resources.

    The initial success of Kumulus Water in Tunisia has fueled Ali’s ambitious vision for wider impact. Nigeria, with its significant agricultural sector and regions facing similar water scarcity challenges, represents a compelling next step.As Africa’s population surges towards an estimated 2.5 billion by 2050, the urgent need for innovative solutions to bolster agricultural productivity and ensure food security across the continent has taken center stage. Speaking at the launch of the Comprehensive Africa Agriculture Development Programme (CAADP) Strategy and Action Plan 2026–2035 and the Kampala Declaration in Johannesburg this week, South Africa’s Agriculture Minister John Steenhuisen called on political leaders to prioritize investments and embrace innovation to meet the escalating demand for food.  Minister Steenhuisen highlighted that while Africa has witnessed significant agricultural progress in the past two decades, a concerning slowdown necessitates a renewed focus on resource mobilisation and efficient allocation. He stressed that “prioritising the efficient allocation of available resources to boost sector productivity, is not only critical, but urgent if we are to improve agricultural productivity.”