The Nation Newspaper

Category: Special Report

  • A bold mission to redefine Africa’s healthcare narrative

    A bold mission to redefine Africa’s healthcare narrative

    In a continent grappling with over 20 per cent of the global disease burden but just 1 per cent of healthcare resources, a bold initiative is reshaping Nigeria’s health sector. In Lagos, Avon Medical Practice has unveiled a cutting-edge 50-bed hospital—a powerful blend of vision, private-sector leadership and compassionate care. This modern facility signals a new era of healthcare delivery in Nigeria, reports Associate Editor ADEKUNLE YUSUF

    The reality is sobering. Africa shoulders over 20% of the global disease burden, yet it has access to just 1% of the world’s healthcare resources. Nearly half of the continent’s population lacks access to quality healthcare, and only 3% of global health workers are available to serve them. In Nigeria, the situation is even more pressing, with chronic shortages of doctors, inadequate hospital beds and paucity of modern medical equipment—an already strained system now further weakened by the relentless brain drain of its healthcare workforce.

    But beyond the grim numbers lies a powerful movement—a growing wave of innovation, commitment and private-sector leadership is beginning to reshape the continent’s healthcare narrative. Nowhere was this more evident than on a bright Monday morning in Lagos, where Avon Medical Practice, a subsidiary of Heirs Holdings, officially unveiled a state-of-the-art, 50-bed medical facility in the heart of Nigeria’s commercial capital. For many, it wasn’t just a ribbon-cutting ceremony—it was a clarion call to reimagine the future of African healthcare.

    The newly opened facility—equipped with a Dialysis Centre, Diagnostics Unit, Maternity and Paediatrics Wards, and more—is more than bricks and mortar. It is a testament to what can be achieved when vision, investment, and empathy come together to address one of the most pressing challenges of our time. Commissioned by the Governor of Lagos State, Mr. Babajide Sanwo-Olu, the launch drew a crowd of government dignitaries, medical professionals, business leaders, and media representatives. Governor Sanwo-Olu, visibly impressed, described the facility as “a bold statement of what is possible when vision meets investment and commitment.”

    “This is not just another building,” he said. “It is a symbol of what we can achieve when the private sector takes initiative in solving real human problems. Healthcare delivery cannot rest solely on the shoulders of the government. What Avon Medical has done here is admirable and commendable.”

    From one clinic to a healthcare network

    The event also featured a heartfelt keynote address by Dr. Awele Elumelu (OFR), Chairperson of Avon Medical Practice, who traced the organisation’s inspiring journey from a modest single-site clinic in 2009 to a nationwide network of hospitals and workplace clinics. She painted a vivid picture of purpose-driven growth—rooted in compassion—that has culminated in a full-service facility with a Dialysis Centre, Diagnostics Unit, and dedicated Maternity and Paediatrics Wards. “This is a particularly emotional moment for us at Avon Medical,” Dr Elumelu said. “It is a moment of pride and deep fulfilment. We started this journey 16 years ago with a simple but powerful belief: that world-class healthcare should not be reserved for the wealthy or privileged few. It should be accessible and affordable for everyone.”

    She reflected on the challenges that initially inspired the founding of Avon Medical and its sister organisation, Avon HMO—Nigeria’s overstretched public hospitals, outdated medical infrastructure, and the inability of millions to access timely, quality healthcare. It was a deep concern for these systemic gaps, she explained, that sparked the vision to create accessible, modern, and compassionate healthcare solutions for Nigerians. “We could not look away. So, we decided to do something about it,” she said. “We built Avon Medical to deliver excellent care, and Avon HMO to make that care financially accessible. That combination was deliberate—because access without affordability is no access at all.”

    Governor Sanwo-Olu echoed her sentiments, reaffirming his administration’s commitment to partnering with visionary organisations that share the goal of strengthening Lagos State’s health infrastructure. He highlighted recent milestones, including the construction of five Mother and Child Hospitals across the state, the soon-to-be-completed Mercy Children’s Hospital, and the ground-breaking 1,000-bed Mental Health Institute in Ketu-Ejirin—poised to become the largest facility of its kind in Sub-Saharan Africa. “We have prioritised healthcare in our budgeting. Between 8 to 10 per cent of our state budget annually goes to health, because we know that a healthy population is the bedrock of a thriving economy,” the governor noted.

    He praised Avon Medical’s investment as “patient capital”—the kind that measures success not only in financial returns but also in lives saved and dignity restored. “We need more of these thinking— investors who are not just looking for what to take from the country, but what to give. We can’t solve our health challenges through public funding alone. We need the private sector to step up, and Avon Medical has done just that,” the governor said.

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    At the core of Avon Medical’s philosophy is Africapitalism—a development model that places the private sector at the centre of solving Africa’s biggest challenges, championed by the Heirs Holdings Group and its founder, Mr. Tony Elumelu (CFR). Located in Lagos, the facility will serve as a central hub for Avon Medical’s expanding network—a powerful embodiment of their vision to create a healthcare system that leaves no one behind. Dr. Elumelu reinforced this theme: “We believe the private sector must play a central role in solving the continent’s most pressing problems. We’re not just here to generate profit. We are here to create lasting impact.”

    While Africa’s healthcare statistics are daunting, Dr. Elumelu reminded the audience that behind every data point lies a human story. “These are not just numbers. They are stories. They are lives. Far too often, they are the lives of women and children,” she said. Her voice quivered with emotion as she envisioned the mothers who would now have safe deliveries, the children who would get early diagnoses and the families who would finally receive the care they deserved. “This facility means more women will receive the maternal care they need. More children will get life-saving diagnoses. More families will have access to the care they deserve.”

    Nigeria currently loses over $2 billion annually to medical tourism—a figure that Governor Sanwo-Olu described as both “painful and unsustainable.” “We must reverse that trend,” he said. “Let us build facilities we can trust. Let us create a system where our people, including our medical professionals, choose to stay—because they see hope, opportunity and dignity at home.”

    Dr. Elumelu agreed, saying that one of the long-term goals of Avon Medical is to restore faith in Nigerian healthcare—faith that has been eroded over decades. “To the patients who will walk through the doors of this facility, we say this: We are here because of you. Your health matters to us.”

    She concluded her remarks by applauding the dedication of the Avon Medical team and the unwavering support from public sector partners, notably the Lagos State Ministry of Health. “This day belongs to our clinical and non-clinical teams, who show up every day with steadfast commitment to our mission. We also express our gratitude to our government partners for creating an environment where such collaborations can thrive.” Addressing the patients who will soon enter the new facility, she offered a simple yet powerful promise: “We are here because of you. Your health matters to us.”

    Government and private sector in sync

    Chairman of Heirs Holdings, Mr. Elumelu, addressed the gathering and applauded the spirit of collaboration that brought the project to fruition. He also acknowledged the vital support provided by the Federal and State Governments, as well as by healthcare institutions, noting that their collective contributions are instrumental in strengthening the healthcare system. “In particular, I must commend the Lagos State Governor for the truly outstanding support he has extended to the health sector,” he said. “We all witnessed how the system held up during the COVID-19 pandemic—an indication of robust structures and proactive leadership.”

    He also underscored the sacrifices made by public officials, noting that Governor Sanwo-Olu had just returned to Nigeria yet prioritised attending the commissioning of the hospital. “That level of commitment can only come from a governor who truly understands and values the critical role of healthcare,” Mr. Elumelu said. “Healthcare is not just about treating illness; it is foundational to creating wealth and driving sustainable progress.”

    “At the helm of this response were dedicated officials, including the governor and Commissioner of Health, who gave us hope during a difficult time and have remained committed ever since. In fact, the governor just returned to the country yesterday to be here today—an act that speaks volumes.

    “I also want to thank His Excellency and the State Executive Council. Despite a scheduled meeting on Monday, he adjusted his plans to be physically present here. That level of commitment can only come from a governor who truly understands and values the critical role of healthcare. Healthcare is not just about treating illness; it is foundational to creating wealth and driving sustainable progress. On behalf of all of us, I say thank you, Your Excellency.”

    As guests toured the facility following the ribbon-cutting ceremony, it was evident that every detail—from the thoughtfully designed wards to the state-of-the-art medical equipment—had been meticulously planned to promote healing, comfort, and dignity. The ambience evoked a sense of care and purpose, ensuring that patients would receive treatment in a space that blends modernity with human warmth. Dr. Akinbiyi Gabriel Oke, Chief Executive Officer of Avon Medical Practice, characterised the new facility as “another bold step” in the organisation’s mission to make high-quality medical care accessible to all Nigerians. “This facility combines clinical expertise with empathy and innovation,” he declared. “It’s a modern and welcoming space where access to high-quality medical care is not a privilege but a fundamental right.”

    Dr. Oke took the opportunity to reaffirm Avon Medical’s commitment to expanding its footprint across Nigeria, emphasising the organisation’s long-term vision of reaching underserved regions where access to healthcare remains a daily struggle. “Our mission is rooted in the belief that quality healthcare should not be limited by geography or socioeconomic status,” he added, urging stakeholders to consider this facility as a model for future initiatives.

    While Africa continues to grapple with significant healthcare challenges, the launch of this new hospital stands as a testament to the transformative power of vision, investment and community leadership. This project, driven by an unwavering commitment to the well-being of local communities, demonstrates that sustainable solutions are not a distant dream—they are unfolding here and now. The story of this facility transcends mere bricks and budgets; it is a narrative about people. It represents a turning point in the way healthcare is delivered on the continent, rewriting the story of a region too long side-lined in global health conversations. As the crowd gradually dispersed and the first patients began to walk through the doors, it became clear that every life touched in this hospital would help write a new chapter—one defined by hope dignity, and a future where high-quality care is within everyone’s reach.

  • Nigeria’s $23.11B net FX reserves strengthen resilience against external shocks

    Nigeria’s $23.11B net FX reserves strengthen resilience against external shocks

    The Central Bank of Nigeria (CBN) has reported a substantial improvement in its Net Foreign Exchange Reserve (NFER) position as of the end of 2024, signalling enhanced external liquidity, a reduction in short-term obligations, and a revival of investor confidence. At $23.11 billion, the NFER is the highest it has been in over three years, providing the economy with greater resilience to withstand external shocks. Additionally, the CBN has opened multiple channels to bolster forex inflows, ensuring adequate liquidity while fostering a stable, transparent, and efficient foreign exchange market, writes Assistant Business Editor COLLINS NWEZE.

    Transparency and compliance are fundamental factors that determine the success of the foreign exchange (forex) market worldwide. In the forex market, transparency is essential in ensuring effective regulation, while operators must adhere to the regulatory guidelines established by central banks.

    In the case of Nigeria, these principles were effectively demonstrated when, last week, the Central Bank of Nigeria (CBN), under the leadership of Olayemi Cardoso, announced a significant improvement in the country’s foreign exchange reserves, reaching $23.11 billion by the end of the previous year. Upon assuming office in October 2023, Cardoso prioritised reforms aimed at rebuilding Nigeria’s economic buffers and bolstering its financial resilience. In the forex market, the apex bank had to confront a backlog of over $7 billion in unfulfilled commitments and a fragmented exchange rate system characterised by multiple forex rates. This situation had created an environment rife with arbitrage opportunities, undermining the market’s stability.

    This fragmented forex regime hindered the inflow of much-needed foreign investment and contributed to the depletion of Nigeria’s external reserves, which fell to $33.22 billion by December 2023. “Over the past year, we have undertaken critical reforms to unify Nigeria’s exchange rate, eliminating distortions and restoring transparency. This unification has enabled us to clear the outstanding foreign exchange obligations, giving businesses—ranging from manufacturers to airlines—the confidence to plan and invest in the future. To further enhance the functionality of the foreign exchange market, we are introducing an electronic FX matching system, which has proven effective in other markets,” Cardoso said.

    Surge in net FX reserve accretion

    According to data from the CBN, the Net Foreign Exchange Reserves (NFER) reached $23.11 billion, marking the highest level in over three years. This represents a significant rise from $3.99 billion at the end of 2023, $8.19 billion in 2022, and $14.59 billion in 2021. The NFER, which adjusts gross reserves by accounting for near-term liabilities such as FX swaps and forward contracts, is considered a more reliable indicator of the forex buffers available to meet immediate external obligations.

    Additionally, gross external reserves increased to $40.19 billion, up from $33.22 billion at the close of 2023. This surge in reserves reflects a combination of strategic measures taken by the CBN, including a deliberate and substantial reduction in short-term foreign exchange liabilities, particularly swaps and forward obligations. The strengthening of Nigeria’s foreign exchange reserves was further driven by policy actions aimed at rebuilding confidence in the FX market and boosting reserve buffers. This was complemented by a notable increase in foreign exchange inflows, particularly from non-oil sources.

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    As a result, Nigeria now holds a stronger and more transparent reserves position, which better positions the country to withstand external shocks. This expansion occurred while the CBN continued its efforts to reduce short-term liabilities, further improving the overall quality of the reserve position. “This improvement in our net reserves is not accidental; it is the outcome of deliberate policy choices aimed at rebuilding confidence, reducing vulnerabilities, and laying the foundation for long-term stability. We remain focused on sustaining this progress through transparency, discipline and market-driven reforms,” Cardoso commented.

    Reserves have continued to strengthen into 2025. While the first-quarter figures reflected some seasonal and transitional adjustments, including substantial interest payments on foreign-denominated debt, the underlying fundamentals remain solid. As a result, reserves are expected to continue improving throughout the second quarter of this year.

    Looking ahead, the CBN said it anticipates a steady increase in reserves, a projection supported by higher oil production levels and a more favourable export growth environment. This is expected to boost non-oil foreign exchange earnings and diversify external inflows. The CBN said it remains committed to prudent reserve management, transparent reporting and macroeconomic policies that foster a stable exchange rate, attract investment and build long-term economic resilience.

    Sustained liquidity boost for the FX market

    Last week, the Central Bank of Nigeria (CBN) injected $197.71 million into the domestic foreign exchange market. The CBN highlighted recent movements in the forex market between April 3 and 4, noting that these fluctuations reflect broader global macroeconomic shifts currently impacting several Emerging Market and Developing Economies.

    Omolara Omotunde Duke, Director of the CBN’s Financial Markets Department, explained that these developments stemmed from the recent announcement by the United States government of new import tariffs on goods from multiple economies. This has triggered an adjustment period across global markets. Additionally, crude oil prices have weakened, falling by more than 12% to approximately $65.50 per barrel, introducing new dynamics for oil-exporting countries like Nigeria.

    “In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of US$197.71 million through sales to Authorised Dealers,” the CBN said.

    “This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market. The CBN continues to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals,” it added.

     “All Authorised Dealers are reminded to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties,” it further stated.

    Diversifying FX sources to strengthen inflows

    Foreign capital inflows remain a crucial driver in achieving both monetary and fiscal policy stability for the domestic economy. The CBN is actively cultivating additional sources of foreign exchange to increase dollar inflows and improve access for manufacturers and retail end-users.

    Through various initiatives—such as efforts to boost diaspora remittances via new product development, granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller FX model, and facilitating timely access to naira liquidity for IMTOs—the CBN has streamlined dollar-inflow channels for FX dealers. These measures are designed to stimulate business activity and foster broader economic growth.

    Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), commended these policy shifts, highlighting the creativity, dedication, and hard work that Cardoso has invested in ensuring that more forex flows into the economy and remains accessible to businesses. He stated that diaspora remittances to Nigeria, estimated at $23 billion annually, continue to be a reliable source of foreign exchange for the domestic economy. Additionally, the CBN is exploring other sources and policies to sustain and increase dollar inflows.

     According to him, the CBN’s initiatives have facilitated continued growth in foreign exchange inflows, aligning with the institution’s goal of doubling formal remittance receipts within the year. Remittances to the economy are expected to rise, driven by the CBN’s ongoing efforts to enhance public confidence in the forex market, strengthen a robust and inclusive banking system, and promote price stability—key factors for sustained economic growth.

    Charlie Bird, Director of Trading at Verto, noted that the dynamics of dollar liquidity have become more balanced, with foreign investors and airlines now able to repatriate funds with greater ease. Speaking at the Cordros Asset Management seminar titled “The Naira Playbook,” he highlighted that Nigeria has become a favored destination for foreign investors, thanks to improved dollar liquidity in the economy driven by the CBN’s positive reforms.

    For example, the CBN, under the leadership of Cardoso, recently introduced two new financial products aimed at serving Nigerians living abroad and attracting more diaspora remittances. These measures, along with others such as granting licenses to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller FX model, and ensuring timely access to naira liquidity for IMTOs, are designed to further enhance foreign exchange inflows and strengthen the economy.

    X-raying the revised IMTO guidelines

    The Central Bank of Nigeria recently released revised guidelines for International Money Transfer Operators (IMTOs) in the country. These updated guidelines represent a significant shift in how IMTOs operate, reflecting the CBN’s ongoing efforts to enhance transparency and efficiency in foreign exchange transactions, while also strengthening diaspora remittances into Nigeria.

    A subsequent circular titled “New Measures to Enhance Local Currency Liquidity for Settlement of Diaspora Remittances” underscored the apex bank’s commitment to improving Nigeria’s foreign exchange market infrastructure by increasing the flow of remittances through formal channels. The revised guidelines introduce measures designed to provide licensed IMTOs with access to naira liquidity from the CBN, facilitating the smooth disbursement of remittances to beneficiaries.

    In a report analysing the circular, analysts at Duale, Ovia & Alex-Adedipe, a specialised law firm with experts in key areas of practice, noted that the guidelines allow IMTOs to process foreign remittance payouts through agents, designated as Authorised Dealer Banks (ADBs). These guidelines require IMTOs to formalize their relationships with ADBs by entering into contracts that outline the terms and conditions of their engagement. Moreover, IMTOs must notify the CBN whenever an ADB is appointed.

    Additionally, IMTOs are required to receive foreign remittances into a designated account maintained with ADBs. The analysts explained that the designated account must be kept separate from any other accounts held by the IMTO. The guidelines mandate both ADBs and IMTOs to disburse foreign remittance proceeds to beneficiaries in naira. They clarified that payments can be made either through the beneficiary’s bank account with the ADB or in cash, with the caveat that cash withdrawals must not exceed $200. If a beneficiary does not hold an account with the IMTO’s ADB, the ADB will credit the beneficiary’s account at another bank. Importantly, the guidelines prohibit IMTOs from purchasing foreign exchange from the domestic market to settle funds for their customers.

    A key significance of the circular is the introduction of measures that enhance IMTOs’ access to Naira liquidity, ensuring the timely settlement of diaspora remittances. Eligible IMTOs can now directly access the CBN window or utilise their ADB to conduct transactions involving the sale of foreign exchange in the Nigerian market. This enables IMTOs to purchase Naira directly from the CBN or through their ADBs for settling remittances, thereby improving local currency liquidity. This contrasts with what was obtainable under the guidelines as emphasised above. To ensure effective implementation of the Circular and to promote transparency and accountability in the Nigerian foreign exchange market, the CBN established that transactions executed and confirmed before noon on a trading day are eligible for same-day settlement. This aims to expedite the process for all participants, including remittance beneficiaries.

    The apex bank also directed that foreign exchange will be converted at the prevailing Nigerian Autonomous Foreign Exchange Market (NAFEM) rates, as referenced by a recognised market benchmark. Also, IMTOS and ADBs must submit daily regulatory returns to the CBN, detailing all relevant information on the sources of funds while eligible IMTOs must confirm their ADBs and provide standard settlement instructions to ensure smooth implementation of the new measures.

    Analysts said the circular remains a significant advancement in ensuring foreign exchange liquidity in Nigeria. By granting IMTOs direct access to obtain naira through the CBN window or through ADBs and implementing strict regulatory and reporting requirements, the CBN aims to enhance the efficiency and operations of IMTOs in the Nigerian market. These measures will streamline remittance flows, ensuring that funds move swiftly and securely through official channels.

    All eyes on diaspora remittances

    As part of its efforts to boost diaspora remittances and support naira stability, the CBN recently announced the introduction of two new financial products designed to serve Nigerians living abroad. The Non-Resident Nigerian Ordinary Account and the Non-Resident Nigerian Investment Account was created to streamline remittances, encourage investments, and foster financial inclusion among Nigerians in the diaspora. It said, “The Central Bank of Nigeria is pleased to inform the general public of the introduction of the Non-Resident Nigerian Ordinary Account and Non-Resident Nigerian Investment Account targeted at Nigerians in diaspora.”

    The initiative is also expected to provide a secure and efficient platform for managing funds and investing in Nigeria’s financial markets. Since the beginning of this year, eligible NRNs have continued to get the opportunity to own any of the Non-resident Nigerian accounts. The Non-Resident Nigerian Ordinary Account was designed to facilitate remittances by allowing non-resident Nigerians to remit foreign earnings into Nigeria and manage funds in foreign currency or naira. Deposits from sources such as salaries, allowances, and dividends are supported, alongside spending on family maintenance, education, and healthcare.

    On the other hand, the Non-Resident Nigerian Investment Account provides an opportunity for NRNs to invest in Nigeria’s financial markets, including foreign currency-denominated bonds, fixed deposits, and local assets like equities, government securities, and mortgage products. The CBN explained that both accounts offer currency flexibility, enabling holders to maintain balances in either foreign currency or naira. Account holders will also be able to convert funds between the two currencies at prevailing exchange rates through authorised dealers.

    The Non-Resident Nigerian Investment Account, in particular, was structured to promote investments in Nigeria’s financial instruments, such as the Diaspora Bond, and encourage active participation in the country’s economic development. The CBN said the introduction of these accounts will harness the economic potential of Nigerians in the diaspora by boosting remittances and fostering investments in critical sectors. These and other measures, including the granting licences to new International Money Transfer Operators (IMTOs), implementing a willing buyer-willing seller model, and enabling timely access to naira liquidity for International Money Transfer Operators (IMTOs).

    President, Association of Bureaux De Change Operators of Nigeria, Dr. Aminu Gwadabe, explained that diaspora remittances are a crucial source of foreign exchange for Nigeria, supplementing both foreign direct investment and portfolio investments. He CBN’s initiatives have supported continued growth in these inflows, aligning with the institution’s objective of doubling formal remittance receipts within a year. According to Gwadabe, remittances in the economy are expected to increase based on CBN’s ongoing efforts to bolster public confidence in the foreign exchange market, strengthen a robust and inclusive banking system, and promote price stability, which is essential for sustained economic growth.

     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.

    For remittances to be truly transformational, it begins with understanding and meeting people’s aspirations. Ensuring individuals who strive for more can send and receive funds, regardless of their financial status, is crucial. We must cater to diverse needs. “In a continent renowned for its entrepreneurial spirit, offering multiple channels for remittance access is key. Whether through bank accounts, digital wallets, mobile money apps or cash pickups, this flexibility ensures that funds are delivered in ways that best suit local realities. Providing innovative and inclusive solutions empowers individuals to not only manage their immediate needs but also to invest in long-term growth opportunities,” he added.

    According to him, every remittance is a seed of change – a deliberate investment in a future where borders blur. “The future of remittances in Africa transcends mere financial support. By strategically directing funds into sectors that need them most, Africa’s diaspora is not just sending money home; they are building resilient economies and challenging traditional models of progress. This power demands that we unite with purpose, reimagine prosperity and empower future generations. The question then becomes whether we are prepared to unlock the continent’s true potential and reshape the global narrative of success,” he stated.

  • Enugu’s march towards climate-resilient environment

    Enugu’s march towards climate-resilient environment

    Moved by the impacts of climate change which has become a pressing global concern, the Enugu State Government has launched a Climate Policy, Action Plan and Climate Education Manual in an effort to secure an environment resilient for economic growth. DAMIAN DURUIHEOMA reports.

    As the world grapples with the challenges of climate change, the Enugu State Government has taken some proactive steps towards mitigating its effects. One of the key steps being taken by the government is the launch of a Climate Policy, Action Plan and Climate Education Manual on Monday, March 17, 2025.

    This, being the first sub-national climate policy in Nigeria, is to provide Enugu State with a comprehensive framework to mainstream climate action in all sectors of the economy. It was produced as guidelines to secure a sustainable climate resilient for economic growth.

    The manual is made up of simple yet effective ways of combating the impacts of climate-related hazards such as flooding, unpredictable rainfall, deforestation, carbon emissions, erosion, landslide and heat waves, which Enugu, as a state, is vulnerable to.

    The policy and action plan, which is being implemented in partnership with various stakeholders, including the Africa Climate Foundation (ACF) and the Society for Planet and Prosperity (SPP), is taking off with the government already powering some of the already completed Smart Schools with green energy, while planting of thousands of trees across the city is beginning in earnest.

    According to the state governor, Peter Mbah, tree planting is a formidable move to mitigate the effects of climate change.

    The governor, who spoke at the launch, said that soon, tree planting in every home would be one of the criteria for building plans approval, adding that the state government and the Enugu State House of Assembly would work together to enact a law that would outlaw cutting of trees in the metropolis without approval.

    While stating that climate change was no longer a distant threat, the governor, represented by his deputy, Ifeanyi Ossai warned that “it is here with us, reshaping our environment, disrupting livelihoods and challenging our collective aspirations for sustainable economic development.”

    He said the Enugu State Climate Policy and Action Plan, is a bold and forward-thinking framework that outlines the state government‘s vision and trajectory for a resilient, low-carbon and prosperous future.

    Mbah said the document represents a historic commitment by his administration to lead the way in climate action while fostering sustainable development, economic transformation and social inclusiveness.

    “Enugu State is endowed with an abundance of natural resources, rich biodiversity and a hard-working population determined to build a future of economic prosperity. However, like many regions across Nigeria and the world, we are increasingly vulnerable to the devastating effects of climate change. Rising temperatures, unpredictable rainfall, flooding, erosion and deforestation threaten our agricultural productivity, water security and overall quality of life left unaddressed,” he said.

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    These challenges, according to him, could undermine the state government’s development trajectory.

    “But we refuse to let that happen. We envision an Enugu State where economic growth and environmental stewardship go hand in hand,” he assured.

    Reflecting more on the climate policy and action plan, Mbah said: “Our Climate Policy and Action Plan is not merely a response to the challenges of climate change. It is a strategic blueprint for unlocking green investments, creating thousands of new jobs and positioning Enugu as a leader in Nigeria’s low-carbon transition.

    “This plan aligns with national and international climate goals, including Nigeria’s commitment to achieving net-zero emissions by 2060 and the global objectives outlined in the Paris Agreement.

    “This policy is grounded in science, equity and inclusive governance. It is Nigeria’s first sub-national climate policy, developed through rigorous quantitative modelling and extensive stakeholder consultations,” Mbah said.

    The governor said his administration had leveraged the perspectives of a diverse range of stakeholders, including the youth, business leaders, academia, civil society, and local farmers, to ensure the policy reflected the aspirations of all Enugu citizens. He noted that a critical component of the plan was ensuring that climate action contributes to economic expansion.

    “Our vision is to grow Enugu’s economy from $4.4 billion in 2023 to $30 billion by 2031. We will achieve this by harnessing the power of green industries, clean energy and sustainable agriculture. By investing in renewable energy, promoting climate-smart agriculture, expanding public transportation, and modernising our waste and water management systems, we will not only reduce carbon emissions but also stimulate job creation and enhance our state’s competitiveness in the 21st Century economy.

    “This is not a plan for tomorrow—it is a plan for today. The Enugu State government is already embedding climate-smart measures into our annual budgets, fostering public-private partnerships and establishing financing mechanisms such as green bonds and carbon market initiatives.

    “We are determined to ensure that our commitment to sustainability translates into real action and measurable impact.

    “Together, we can build an Enugu State that is not only resilient to climate change but also a beacon of sustainable development, innovation and shared prosperity,” he said.

    The governor commended experts, policymakers and stakeholders who contributed to the development of the policy and action plan, saying their commitment and hard work would shape the future of Enugu State for generations to come. He also extended his administration’s gratitude to the Africa Climate Foundation (ACF) and the Society for Planet and Prosperity (SPP) for their funding and technical assistance, respectively.

    The state Commissioner for Environment and Climate Change, Prof. Sam Ugwu said climate change has become a global challenge with its consequential impacts on livelihoods and ecosystems distorting national and sub-national socio-economic values and activities.

    The commissioner noted that climate change policy and action plans were essential in reducing and ameliorating the situation.

    “This initiative is more than a policy document; it is a commitment to our people and our future. It reflects the aspirations of our farmers, business owners, students, researchers and local communities who all contributed to its development. It aligns with Nigeria’s net-zero emissions target by 2060 and global climate agreements, ensuring that Enugu State remains at the forefront of climate governance and action.

    “Policy alone is not enough. Action is required at all levels. We must work together with government agencies, private sector partners, development organisations, civil society and every citizen to ensure the successful implementation of these frameworks. The success of this policy depends on our collective will to turn strategy into tangible impact,” Prof. Ugwu said.

    He commended Governor Mbah for showing interest in climate change by devoting a huge part of the Ministry of Environment to climate change.

    Presenting the overview of the Climate Change Policy, Action Plan and Climate Manual, the Special Adviser to the Governor on Climate Policy and Sustainable Development, Prof. Chukwumerije Okereke said the Climate Policy and Action plan integrated an energy and economic framework.

    The policy, he said, had become very imperative because climate change is causing a lot of economic havoc not only in Enugu but also around the world.

    Prof. Okereke revealed that Enugu State is already losing the water body, saying that the biggest impact will be on agriculture.

    According to him, climate-smart agriculture is one of the ways to mitigate the devastating effects of climate change.

    The Chief Field Officer of the United Nations Children’s Fund (UNICEF), Enugu, Mrs Juliet Chiluw, commended the Enugu State Government for its Smart Green School and launch of the climate action and policy.

    “One of our mandates is to ensure that all children attain rights in all circumstances and context.

    “So, UNICEF is a critical member of the table to ensure social protection of child rights in alliance with climate change,” she said.

    The Corporate Affairs Manager, East, of Nigeria Breweries Plc, Joy Egolum who spoke on behalf of the brewery manager, described the policy as a plan towards sustainability and ensuring that “we exist” which is what any business wants to do.

    “So, what we have done with the Enugu State Government is to show that we’re partnering with them in playing our part in ensuring that we’re able to brew with green energy and so, what we’ve shared today is how far we’ve gone and what we also intend to do going forward because it’s part of our sustainability agenda.”

    She listed some of the brewery’s programmes to reduce its carbon footprint in Enugu State, where it operates, saying, “We currently have about 20 per cent of our energy requirements through our 4mw solar farm.

    “We’re also investing in biomass instead of disposing of some of the byproducts of our brewery operations or processes; we will now use those to get energy through biomass. We currently use compressed natural gas. We’re not averse to reducing our carbon footprint.”

    Highlight of the event was the formal unveiling of the Enugu Climate Policy, Action Plan and Climate Education Manual by the governor.

  • Enhancing Nigerian Railway Corporation’s role as trade facilitator

    Enhancing Nigerian Railway Corporation’s role as trade facilitator

    Kayode Opeifa, hours into his tenure as Managing Director of the Nigerian Railway Corporation (NRC), swiftly addressed workers’ concerns and averted a nationwide protest over poor conditions and wages. Yinka Aderibigbe reports that Opeifa’s decisive leadership has sparked significant transformation, fostering industrial harmony, revitalizing cargo movement, thus positioning the NRC as a key player in Nigeria’s logistics and transportation landscape.

    Just hours after taking office as Managing Director of the Nigerian Railway Corporation (NRC), Kayode Opeifa swiftly validated President Bola Ahmed Tinubu’s choice by striking a deal with agitated workers who were on the brink of launching a nationwide protest over poor working conditions and low wages. The scene unfolded with a bit of drama: during the reception marking his appointment, the two workers’ unions announced that they were suspending their protest in honor of one of their own now leading the Corporation.

    Comrade Innocent Ajiji, President-General of the Nigerian Union of Railway Workers (NUR), praised Opeifa’s unwavering commitment to the workers, stating that the protest would be put on hold in favour of beginning fresh negotiations with their new leader. For Opeifa, a seasoned activist and member of the Committee for the Defence of Human Rights (CDHR), such threats of industrial action were not to be taken lightly. In a decisive move, he not only secured the unions’ commitment to halt their protest but also ensured they agreed to suspend any future industrial actions. Taking it a step further, Opeifa convened his first management meeting with the unions’ leadership, where he prioritized addressing their working conditions and advocating for better living wages. To many observers in the railway sector, achieving industrial harmony among railway workers stands as Opeifa’s most significant accomplishment in his first month in office.

    While achieving industrial harmony is a notable accomplishment, Opeifa has gone further, subtly transforming the work culture at the Nigerian Railway Corporation (NRC). This shift aligns with the prediction of Chief Mrs. Adejoke Orelope-Adefulire, Senior Special Adviser to President Tinubu on Sustainable Development Goals (SDGs), who, during his inauguration, urged workers to brace themselves for Opeifa’s extraordinary work ethic. In just one month, Opeifa has revitalised the NRC, propelling it towards becoming a vital trade facilitator and a key player in the country’s multimodal transportation network. His leadership has sent a clear message to the private sector, particularly in manufacturing and logistics, that the NRC is prepared for business.

    Almost immediately upon assuming office, Opeifa initiated a strategic partnership with APMT, a leading terminal operator, to kick-start the sluggish cargo movement between the Lagos and Ibadan Dry Ports. This collaboration saw the successful transportation of no fewer than 70 40-foot containers from the Apapa terminal to the Moniya Dry Port in Ibadan via the standard gauge, marking a significant milestone in enhancing the country’s logistical efficiency. This move was the strongest indication that Opeifa not only understood the rail economy but also knew exactly what needed to be done to reposition the national corridor as a crucial mover of goods and business facilitator, beyond its current focus on passenger transport. His strategic shift was in alignment with Article 15 of his vision, which he shared with workers upon his appointment.

    Opeifa’s vision for the railway corporation includes transforming it into a major service provider that boosts tourism, connects people to jobs, facilitates the movement of agricultural produce to markets, and enhances national logistics and supply chain management. He believes these initiatives will significantly reduce multidimensional poverty. With his deep transportation expertise, Opeifa has raised hope among workers, who are now eagerly wishing for his success. As Comrade Innocent Ajiji, the President-General of the Nigerian Railway Workers (NUR), expressed: “We believe this is our time in the Nigerian Railway Corporation. For the first time, Mr. President has given us a worker-friendly MD who is focused on our welfare. We have no doubt in him because of his pedigree in public service, and we know he has the ear of his employer. Our concerns will now receive quicker attention.”

    For Opeifa, the work must speak for itself. From day one, he set an ambitious bar for railway efficiency. He emphasised that the railway must regain its status as the backbone of intermodal transportation, especially for cargo movement across Nigeria. However, Opeifa knew this goal couldn’t be achieved without the full commitment of the workforce. Thus, he made workers’ welfare a top priority, reinforcing his belief that “efficiency, safety, and customer satisfaction driven by passion and excellence” are key to the railway’s success. Within just 10 days of taking office, Opeifa demonstrated his determination by flagging off cargo movement from Apapa to the Moniya Dry Port in Ibadan through a new partnership with APMT Terminals. This move signalled the beginning of a broader push to deepen connectivity within Nigeria’s national rail system.

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    Under this arrangement, the Nigerian Railway Corporation (NRC) will facilitate the evacuation of hundreds of containers to Ibadan three times a week, using the Lagos-Ibadan (LITS) standard gauge network. A similar partnership has recently been established with Inland Containers Nigeria Limited (ICNL), enabling containers to be transported to the northern regions of Nigeria, including Kaduna and Kano, via the Lagos-Kano Narrow Gauge Line. Mr. Omotayo Dada, CEO of ICNL, emphasized that this collaboration would help mitigate the risks typically associated with road transport, which has led to significant losses for many business entities due to road-related disruptions.

    Historically, cargo movement was a cornerstone of NRC’s operations, with spurs (branch lines) extending to key industrial sites, warehouses, and depots across the country, facilitating the smooth flow of goods. During its peak, the NRC operated a fleet of locomotives, wagons, and coaches dedicated to various sectors, including agriculture, industrial goods, and livestock, such as cattle and pigs, which were transported between the North and South. An insider, speaking anonymously, expressed hope that under Opeifa’s leadership, the NRC would return to its former glory as a major driver of trade, serving diverse sectors. He noted the significant underutilized assets within the corporation, including vast fuel storage facilities located near stations nationwide. These facilities, with capacities exceeding one million litres, could be leveraged by the private sector for greater efficiency and productivity.

    Many believe that the NRC holds enormous untapped potential, awaiting the right leadership to unlock its full value. APMT’s major client, Mr. Ayo Olunuga, Managing Director of Transco Africa, shared a positive outlook on the NRC-APMT collaboration. He believes that the thrice-weekly cargo movement will be a game-changer in the haulage sector, significantly easing congestion on port access roads once fully operational. Olunuga pointed out that many import and export businesses would prefer rail for cargo movement due to its lower risks compared to road transport. If the rail service continues to grow, it would have a transformative impact on the economy—reducing road congestion, extending the lifespan of trucks, and contributing positively to Nigeria’s GDP through the transportation sector.

    Chief Remi Ogungbemi, Chairman of the Association of Maritime Truck Owners (AMATO), also commended the renewed focus on rail transport, emphasizing that it would help reduce operational costs, eliminate the growing problem of extortion by street urchins, and address other operational challenges in the haulage business. “Rail haulage is less expensive, safer, and more reliable, which reduces both operators’ and customers’ exposure to risks in the haulage business,” Ogungbemi remarked.

    However, as various stakeholders, including merchants, voice their hopes for the new leadership at the Nigerian Railway Corporation (NRC), workers are also urging the need for a comprehensive re-evaluation and revitalization of the corporation’s 123-year-old infrastructure. A significant concern is the rehabilitation of several long-abandoned lines that could breathe new life into key trade corridors. For example, the Baro Line in Katcha Local Government Area, Niger State, which connects to a river port, has been neglected for over 30 years. Despite this, it is currently undergoing rehabilitation to facilitate the import and export of agro-allied commodities. Additionally, workers have called for the reactivation of the Kano-Nguru line, which runs through Jigawa and Yobe states, as well as the Zaria-Kaura Namoda line serving Katsina and Zamfara states, the Idogo Line in Ogun State, and the Port Harcourt-Enugu line. These corridors, rich with agricultural potential, could significantly improve access to markets.

    Another potential boon for the rail sector would be the dredging of Baro Water. This could enable the movement of containers to the Baro Port, from where they could be transported via barges into the Northern and Eastern parts of the country, further boosting trade. On the passenger transport side, the NRC has made strides with the Lagos mass transit train service, which stakeholders argue should be expanded to meet growing commuter needs. Moreover, many have called for the revival of other mass transit services that have languished in obscurity, such as those in Jos, Plateau State. Reactivating such services would provide essential alternatives for Nigerians and help stimulate local economies.

    Analysts also recommend not only revitalizing old services on the narrow gauge network, particularly in the Western and Eastern regions, but also introducing new lines along the national standard gauge corridors. This would broaden access to rail services and provide more transit options for Nigerians across the country.

    With the recent shift in the Nigerian Railway Corporation’s responsibilities from the exclusive to the concurrent legislative list, the Opeifa-led management now faces a tremendous opportunity. It must leverage this change to make rail transport more attractive to states and the private sector, positioning it as a goldmine for growth and development.

    Several states, including Plateau, Niger, Bauchi, Ogun, Enugu, and Abia on the Eastern Line, are already in talks with the NRC about constructing rail lines through the Track Access agreement. This model, which allows states like Lagos to operate their own rail services, could serve as a blueprint for other states. States must be encouraged to invest in acquiring coaches and wagons, contributing to the realization of President Tinubu’s Renewed Hope Agenda by ensuring comprehensive connectivity across the country, particularly linking state capitals, seaports, and industrial hubs.

    Equally important is the role the private sector can play in providing more facilities and alternatives for commuters. The repeal of the 1954 Nigerian Railway Act paves the way for new players to enter the market, potentially increasing business opportunities and transforming the NRC into a more dynamic and profitable enterprise. This presents a golden opportunity for the rail sector to evolve and play a crucial role in Nigeria’s economic growth. They argued that just like the airports constructed by the government, while investors buy the aircrafts to operate therefrom, the private sector should play more in the rail sector by providing more alternatives to Nigerians on the existing tracks, either by buying coaches for passenger traffic or wagons for goods thereby keeping all the tracks busy all year round.

  • Fresh reign of terror in Benue

    Fresh reign of terror in Benue

    • Herdsmen scare farmers away, feed their farm produce to cows

    • With our cassava, they feed their cows like parents do their babies – Victim

    Many farmers in Agatu area of Benue State are battling with trauma and depression following the unmitigated terror unleashed on their investments by marauding herders. A good number of the farmers have resorted to begging for food to keep their families alive, raising concerns about food security in the days ahead. Aside from the menace of the herders, findings revealed that they have become cash cows for depraved people fleecing them of their hard earned resources in the guise of processing loans for them. INNOCENT DURU reports.

    Sabo Afada, a farmer in Agatu area of Benue State, was host to some unsolicited visitors while working on his rice farm recently.

    The visitors identified by Sabo as herders were neither on the farm to buy produce nor to help in tilling the soil.

    “They came to vandalise the farm, and we could not stop them because they were fully armed. My family andand simply left the farm for them when they came to graze and destroy what we had planted.

    “We could not stand watching them destroy our farm.

    “I cried and felt very sadat the vandalisation of my farm by the herders. 

    “I was sot happy at all.”

    Sabo said he did not put up any resistance because “they will not spare you if you make any attempt to resist them.

    “If you mistakenly move close to them, they will cut you with machetes.

    “If you tell them not to graze on your farm, they will not mind killing you.”

    The embattled farmer said the destruction of his farm is nothing new in the area.

    His words: “They started destroying my farms four years ago and have continued this year.

    “This year, they have destroyed my yam, rice and beans, which is used to make okpa.

    “They have rendered me helpless.”

    Sabo said from being an independent man, the menace of herders has turned him into an irritating dependant.

    To survive, he said, “we often go to places where the herders have not invaded to work for other farm owners.

    “We do this to see if we can get one or two basins of cassava to eat at home.

    “We have new yam in our place at the moment but as a farmer with a large expanse of land, I don’t have a single tuber.

    “What we do is to go to people who have and beg them for some rations.

    “There is nobody to help us at the moment. We are helpless. 

    “I am ready to farm, but there is no financial assistance.”

    The command and control powers brazenly wielded by the herders have also left Abel Ogbaeba Odejo, a large scale farmer, confounded and devastated.

    Abel is sad that as a citizen peacefully going about his legitimate activities on his farm, the success or failure  of his investment is not dependent on his efforts but by the savage herders.

    Narrating his experience with the herders, Abel said: “They met me on the farm and I told them that we had not finished harvesting rice.

    “I demanded to know what they had come to do, and they said they came to pasture their cows. I said, this is not the time for that.

    “Before I knew it, another set of cows surfaced on the other side.

    “I have a large farm of rice. They destroyed my corn, rice and yam farms. Even one of the herders threatened to kill me.”

    Continuing, he said: “The day before yesterday (Sunday) when I went to the farm, my ‘ogbono’ tree had been cut down. They also destroyed the palm trees.

    “This afternoon (Tuesday), I went to the farm and saw them on my kolanut tree. They cut all the seeds on it.

    “When they saw me, they jumped down and started running.

    “They were with cutlasses so I could eot go after them.

     “My rice farm that they destroyed is more than three hectares.

    “My brother, it’s a terrible thing.”

    Following the losses he has recorded, Abel said he is left with nothing. “It is just corn flour that we have eaten today. I bought it from the market.This is something I used to make in my house.

    “Last year, I had about six bags. But early this year, I had one, and we have finished it.”

    Also reliving his experience, another farmer in Agatu, Agbochenu Paul, said he was working on his farm, “but when I saw the herders coming towards my farm, I had to leave the place for them.

    “They destroyed everything thereafter.

    “Only divine intervention saved my life when I saw the damage done to my farm. 

    “The situation was beyond my control. It was only God who saved me. I seriously shed tears.”

    Agbochenu regretted that the herders have been destroying “my farms for the past three years. I left where I was to another place and they still came and destroyed everything.

     “As I am talking to you, they have ravaged everything. I plan to start all over again.

    “Without farming, I am done for. I am not a secular worker. I am a perpetual farmer.”

    With no help in sight to protect them from the herders’ reign of terror, Agbochenu said

    “it is only God who can secure our farms for us. There is no alternative”.

    ‘Herders feed cows with our cascassa like parents feed children with noodles’

    One of the farmers who have suffered massive losses at the hands of the prowling herders is Peter Eigege, who said: “They destroyed my farms. They destroyed my guinea corn, rice and palm tree plantation. They destroyed everything.”

    Further reliving his ordeal, Eigege said: “Cassava is like noodles to the cows.  The herders cleared and gave everything to the cows to feast on.”

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    He regretted the monstrosity of the herders, which he said was getting worse by the day.

    Eigege said: “I was not the only person affected. It applied to many other farmers.

    “Unfortunately, the herders are still on the farm. Our people met with their leaders and they promised that they will leave in May.”

     With the deadline set by the herders to leave the farms, Peter said “anything we want to plant will be in June or July, and that will be late planting.

    “If we plant very late, it will not yield as much as when we plant early.

    “Early planting starts from April till May.”

    Unlike his peers who said they were on their farms when herders came to unleash terror, Eigege said: “I was not on the farm when they carried out the dastardly act. They did it in the night.

    “They dug out everything in the night, and when you get to the farm in the morning you will find out that your plants have been destroyed.

    “I had about three hectares of Guinea corn and everything was destroyed. 

    “I now buy guinea corn from the market.

    “I had about two hectares of yam, but I cannot boast of 100 tubers at the moment.

    “Before now, the least I would have was 1,000 tubers. They destroyed everything.

    “My wife used to get about six kg of 25 litres of palm oil from our plantation, but she couldn’t get up to one gallon this time around because the herders vandalised everything.

    “My wife now goes to the market to buy N100 worth of palm oil for us to cook.”

    Following the setback he has suffered, Eigege said: “We are living by the grace of God. 

    “Before, we used to eat three square meals. But that is impossible now.  We manage whatever we see in the morning and arrange a proper meal in the evening. 

    “We are on half, zero, one eating pattern now.

    “At times, I leave the little I have to eat in the morning for my children.”

    A frontline farmer and former district head in Agatu, Hon Bawa Haruna, said although the herders have not been killing farmers in Agatu in recent times, their activities have left many farmers psychologically paralysed.

    “They will see you, and will greet you. But as soon as you are not there on your farm, whatever you leave there is no longer your own. What you see this morning you can’t see tomorrow again.

    “They will use their machete to cut it down. 

    “When I went to my cashew farm yesterday (Monday), I shed tears because they vandalised everything.

    “My children could not lay their hands on one seed of cashew. The herders collected all of them.

     “The cashew that I planted almost 10 years ago is on two standard hectares. It is more than 1,000 stands.

    “When I saw the destruction, I just left because I don’t want to have hypertension.

    “I just shed tears and left because nothing compares to my life.”

     Before the incident on Monday, Haruna said he used to harvest a bag of cashew seed every day. “If my children should go and pick cashew, we could realise more than a bag of cashew nuts.

    “But since the beginning of the harvest season, I have only one paint rubber that is just only N2,000. And it is 30 of that rubber that makes up a whole bag.

    “I can’t actually give the correct figure of what I lost.”

     The herders, according to Haruna, “don’t have  a farm in my place, but they bring cashew nuts to sell to our people at home.

    “They have only cows, and when you touch their cows, the government will respond immediately. But if you report on cashew, yam or other farm produce being destroyed, no action is taken. And nobody will arrest the herders.”

    Continuing, he said: “I have no single yam in my large expanse of farm.

    “If you see me with a tuber of yam, I either bought it from the market or I stole it from somebody’s farm.

    “I don’t have a single seed of yam to be planted next season, now that the rain is about to start.

    “They ate up my yam farm. They destroyed everything.”

    Haruna said he used to have up to 3,000 heaps of yams. “I used to plant up to 3,000 seedlings. I don’t have even one tuber now.”

    Farmers lose money to loan applications

    Apart from the endless losses occasioned by the herders’ activities, a good number of the farmers in the agrarian community lamented how they were on many occasions cajoled to buy forms to get loans that never materialised.

    In their eagerness to get loans to improve their production, the unsuspecting farmers kept giving in to as many people as sold ideas of loans to them.

    Sharing his experience, Haruna said: “I applied several times. They would collect money and after assuring that everything was ready, they would not credit my account.

    “I travelled to Abuja more than seven times. I know how much I spent sleeping in hotels and attending workshops.

    “At the end of the day, there was no head way. This happened two years ago.

    “I did not apply last year and this year because they have been deceiving people.

    “The government is full of policy making but the implementation is not there.

    “They will say we are implementing this, we are doing this, we are forming policy on this and that for farmers, but at the end of the day, it is people that are farming in the air that will benefit from it.”

    Speaking in the same vein, Sabo said: “I have been applying for loans but I never got any. 

    “To apply for the loans, they often mandate us to obtain forms with N2,500.

    “After obtaining the forms, they would not give the loan.

    “We have the land to farm but there is no money to do this.

    “I am over 60 years.  We eat once a day on many occasions. But on some other occasions, we may have food to eat two times a day.”

    On his part, Agbochenu said: “I applied for a loan and they gave me an ID card. 

    “We paid money to get the forms, but I didn’t get any loan at the end of the day and no explanation was given.

    “I am willing to take out a loan to go back to the farm.”

    The story was the same for Eigege who said: “I applied for a loan but didn’t get it.

    “We were asked to obtain and fill forms but we didn’t get any loan. 

    “The people who came to ask us to apply for loans said they were representatives of the Central Bank of Nigeria.

    “If I can get a loan, I will be able to return to the farm. If I don’t get a loan, I will use manual labour.

    “With a loan, I can do mechanised farming.

    State government not helping matters, says former district head

    Heaping the blame of the vandals’ activities on the doorstep of the state government, Hon. Bawa Haruna said the government is no longer helping matters after it instructed that they should enter a peace accord with herders.

    “We all agreed because the lives that we are losing, we are not regaining them. It is life that matters to us.

    “If you have property and your life is not there, what is the value of that property to a dead body?

    “What is the value of whatever you have when you are not alive? So we better stay alive and lose all our belongings.

    “We believe that God will intervene one day even though the government is not doing the part it is supposed to do.”

    According to Haruna, the arrangement was that “we should all stay together because the herders are human beings and Nigerians too.

    “The herders were asked to bring their wives and their children to stay here. But where are these wives? Where are the children?

    “If they are not coming for violence, where are the children? They came only with their animals.

    “Publish exactly what I’m telling you. Don’t add and don’t remove.

    “Let any government come and apprehend me for the kind of suffering my people are going through.”

    In spite of the massive losses the farmers have recorded, Haruna says “nobody is giving them any benefit, nobody is giving them any incentive. Nobody is doing that.

    “Some plans will be done over there at the federal level, pronounced, everybody will hear, but it will not get to the right people that are affected. Quote me Bawa Haruna.”

    When he held sway as the district head, Haruna said, “I have been denied of my salary for about 82 months.

    “I have written several letters to the governor. I have written to the Bureau of Local Government and Chieftaincy Affairs.

    “Recently, they replaced me with another person. They have not sacked me.

    “They have not terminated my appointment as district head.”

    We are not aware of ugly development – Benue Govt

    Benue State government says its not aware of the plight of the farmers in Agatu.

    The Commissioner for Agriculture, Prof Moses Ogbaji in a terse response to our request via a text message said: “Sincerely I am not aware of this ugly development.”

  • Assessing benefits, hurdles in local solar panel manufacturing

    Assessing benefits, hurdles in local solar panel manufacturing

    The shift towards local manufacturing of solar panel is proving to be a game-changer in the industry. Importation costs, logistics challenges, and currency fluctuations have historically inflated the prices of solar panels, making them less accessible to the average consumer. However, the ongoing growth in local solar panel production, fuelled by increasing investments from LPV Technologies, is addressing these challenges by reducing foreign exchange dependency, lowering energy costs and creating jobs, ultimately benefiting the economy and supporting sustainable development, reports Assistant Editor, COLLINS NWEZE

    Energy is at the heart of development; it powers investments, fosters innovation and creates new industries that drive job creation, inclusive growth and shared prosperity. Among the various renewable energy sources, solar power stands out as a game changer. It has become an increasingly cost-competitive and reliable source of energy, especially in developing economies. As demand for renewable energy solutions continues to rise, Nigeria’s solar industry is primed for rapid expansion.

    However, the high cost of importing solar equipment—often accounting for up to 30 per cent of the total project cost—has long been a significant barrier to broader adoption. Recognising this challenge, LPV Technologies is leading the way in local manufacturing innovation. By offering competitive pricing, LPV significantly reduces capital expenditure (CAPEX) for solar developers and end-users. Through the use of local expertise and resources, LPV Technologies enhances cost efficiency without sacrificing quality, establishing itself as a key player in Nigeria’s renewable energy sector.

    Financing the energy transition

    The World Bank statistics showed that energy consumption accounts for more than three-quarters of greenhouse gas emissions. Accelerating the energy transition requires financing, and the massive deployment of renewable energy and energy efficiency while gradually retiring fossil fuels. However, in developing countries, constrained fiscal space and lack of access to finance make costly upfront investments in energy efficiency and renewable energy out of reach. In addition, macroeconomic and political uncertainties discourage investors. Multilateral development banks and donors play a critical role in scaling up support to countries with more affordable concessional financing to reduce the steep upfront costs of clean energy projects.

    The World Bank partners with governments to set policy direction, establish sound regulatory and macroeconomic frameworks, and strengthen institutions—including power utilities, the backbone of the electricity sector—that can help create a series of bankable projects. Private sector investment is crucial for achieving the sevenfold increase in investments needed in developing countries for energy access and transition—roughly $1-2 trillion by 2030—which also directly benefits job creation.

    Local manufacturing provides competitive advantage

    The shift towards local manufacturing is a game-changer in the solar panel industry. Importation costs, logistics challenges and currency fluctuations have historically inflated the prices of solar panels, making them less accessible to the average consumer. LPV Technologies is changing this narrative through its locally manufactured solar panels. By sourcing premium raw materials from globally recognized suppliers, the company guarantees top-tier quality and performance.

    This strategic approach not only reduces overall project costs but also minimizes supply chain disruptions. With faster turnaround times and reduced dependence on international suppliers, LPV Technologies ensures consistent solar panel viability, enabling solar project developers to meet tight deadlines. By producing locally, the company supports Nigeria’s vision for energy security and independence while maintaining high standards of quality and efficiency. According to energy expert Dr. Felix Duke, “Local manufacturing of solar panels significantly lowers the cost barrier to entry for many households and businesses in Nigeria. By reducing dependence on imports, companies like LPV Technologies create a more stable and resilient renewable energy sector.”

    Job creation, economic growth

    LPV Technologies’ commitment to local manufacturing extends beyond cost efficiency—it is also a powerful driver of economic growth. Nigeria’s unemployment rate is currently high, underscoring the need for sustainable job creation. By establishing local manufacturing facilities, LPV Technologies is generating both skilled and unskilled job opportunities across various functions, including manufacturing, quality control, logistics and maintenance of solar panels. This strategic investment in human capital not only addresses unemployment but also contributes to skill development within the renewable energy sector. By empowering the local workforce, LPV Technologies fosters economic growth and enhances the community’s capacity to support the nation’s renewable energy ambitions.

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    Renewable energy consultant, Amina Yusuf, highlights the broader impact: “Beyond direct employment, local solar manufacturing fosters the development of a supply chain that supports small and medium-sized enterprises (SMEs). This ecosystem growth is crucial for Nigeria’s long-term energy sustainability.”

    Renewable energy goals

    Nigeria is on a mission to diversify its energy mix, with a target of achieving 30 per cent renewable energy integration by 2030. This transition is critical for reducing the nation’s dependence on fossil fuels, which currently dominate the energy landscape and contribute to significant greenhouse gas emissions. LPV Technologies is playing a pivotal role in this energy transition by providing high-quality solar panels tailored to Nigeria’s unique environmental conditions.

    By offering locally manufactured solar solutions, LPV Technologies supports the government’s renewable energy targets while ensuring that clean, sustainable energy is accessible to all. This strategic alignment with national energy policies positions LPV Technologies as a key enabler of Nigeria’s journey toward a cleaner, greener future. Dr. Peter Okon, a renewable energy policy expert, asserts: “Companies that align their operations with Nigeria’s renewable energy targets are not only contributing to a more sustainable future but are also positioning themselves as indispensable partners in the nation’s energy transition. LPV Technologies is a prime example of such leadership.”

    Local content gains

    The Nigerian government has implemented several policies to promote local content, particularly in the renewable energy sector. These policies encourage local manufacturing to reduce import dependency and stimulate economic growth. LPV Technologies is strategically aligned with these regulatory frameworks, ensuring compliance while delivering cost-effective, locally manufactured solar panels.

    By supporting local content policies, LPV Technologies helps stakeholders meet regulatory requirements while enjoying the financial benefits of sourcing within Nigeria. This strategic positioning not only enhances brand reputation but also establishes the company as a trusted partner in Nigeria’s renewable energy landscape. Energy economist, Dr. Emmanuel Adeniran, notes: “With the right incentives and policies in place, Nigeria can become a leading hub for solar panel manufacturing in Africa. LPV Technologies is paving the way for this transformation by demonstrating the economic and environmental benefits of local production.”

    One of the major challenges in Nigeria’s solar industry is the delay in project timelines due to the complexities of importing equipment. Lengthy shipping durations, customs delays, and unpredictable supply chain disruptions often impact project execution. LPV Technologies’ local manufacturing line mitigates these challenges by enabling just-in-time delivery. This streamlined supply chain significantly reduces project completion times, ensuring faster deployment of solar solutions. By minimizing logistical complexities, LPV Technologies enhances operational efficiency, enabling developers to deliver projects on schedule and within budget.

    Solar project developer, Chinedu Obi, affirms: “Time is money in the solar industry. The ability to source high-quality solar panels locally without waiting months for shipments from overseas makes a tremendous difference in project execution and return on investment.”

    Beyond offering cost savings and economic benefits, local solar panel manufacturing plays a pivotal role in advancing environmental sustainability. Importing solar panels from abroad significantly contributes to carbon emissions, especially from transportation. By manufacturing solar panels domestically, LPV Technologies effectively reduces the environmental impact associated with long-distance shipping and reduces packaging waste.

    Moreover, solar energy is a key driver in Nigeria’s battle against climate change. Through the provision of affordable, high-quality solar panels, LPV Technologies is accelerating the country’s transition to renewable energy, reducing dependence on fossil fuels, and contributing to a lower carbon footprint. Environmental advocate, Bola Oladipo, states: “For Nigeria to meet its climate commitments, home-grown solar solutions must be prioritized. LPV Technologies’ local production model is an excellent example of how economic and environmental goals can align.”

    Future prospects and industry growth

    As Nigeria’s renewable energy sector continues to evolve, the role of local solar panel manufacturers will become increasingly vital. LPV Technologies’ innovative approach positions it at the forefront of this transformation, driving cost reductions, job creation, and sustainable energy solutions. Looking ahead, LPV Technologies aims to expand its production capacity, explore new technological advancements, and enhance research and development efforts. By continuously innovating and adapting to market needs, the company is set to maintain its competitive advantage and reinforce its position as a leader in Nigeria’s solar panel industry.

    As Nigeria accelerates its journey towards a greener future, LPV Technologies remains a key player, driving growth, innovation, and impact in the renewable energy sector. With strong government support, increasing demand, and an unwavering commitment to quality, LPV Technologies is not just manufacturing solar panels—it is pioneering a brighter, more sustainable future for Nigeria.

    Nigeria has over the years developed several policies and frameworks in a bid to improve energy access and bridge the energy gap through renewable energy sources. The implementation of key policies has supported local manufacturing of solar panel, a key component in solar energy architecture. The transition towards more sustainable energy sources, has ensured that solar energy remains a key player in this shift, benefiting the environment and local industries. This transition is critical for reducing the nation’s dependence on fossil fuels, which currently dominate the energy landscape and contribute to significant greenhouse gas emissions.

    Experts said that solar energy can lead to significant savings on energy costs for both residential and commercial consumers. By generating their own electricity, homeowners and businesses can reduce their reliance on the grid and lower their utility bills. This financial relief allows consumers to reallocate their savings towards other needs, potentially boosting local spending and stimulating economic growth. For businesses, the cost savings from solar energy can be substantial, improving their bottom line and allowing for reinvestment in other areas. By reducing operational costs, solar energy helps these businesses remain competitive and financially viable, which in turn supports local economies by maintaining jobs and encouraging business expansion.

    According to the World Bank Group, solar energy provides clean, affordable and reliable electricity access in developing countries while reducing dependence on fossil-based energy systems. The bank explained that energy is the lifeline for a modern economy and is critical for the necessities of human life—education, healthcare, food, and jobs, on a livable planet. Expanding energy access and meeting climate goals must be done simultaneously by scaling up energy efficiency and renewable energy investments that allow the phase-down of fossil fuels.

    Yet nearly 700 million people still live without electricity worldwide, and about 2.3 billion people rely on polluting traditional fuels and technologies to cook their meals. Scaling up renewables and energy efficiency, investing in electrification at scale, and improving power utilities while avoiding new coal plant construction and retiring old plants are critical to providing clean energy to power homes, schools, hospitals, and businesses.   Overall, renewable energy can help countries mitigate climate change, build resilience to volatile prices, and lower energy costs.

  • Transforming Africa’s public service through leadership training

    Transforming Africa’s public service through leadership training

    The AIG Public Leaders Programme, launched by the AIG-Imoukhuede Foundation, is revolutionising Africa’s public sector by equipping leaders with the essential skills to drive transformational change. Through a combination of world-class leadership training and innovative strategies, the programme empowers public servants to address complex governance challenges. By strengthening leadership capacity across Africa, it aims to foster efficient, accountable, and citizen-centric public service, ultimately contributing to sustainable development and economic growth, JULIANA AGBO writes.

    The public sector remains a cornerstone of governance and administration, playing a vital role in a nation’s economic and social development. A well-functioning public sector significantly enhances citizens’ quality of life, with research consistently highlighting the strong correlation between public sector performance and economic growth.

    However, genuine transformation in the public sector demands the collaborative efforts of citizens, civil society organizations, and the private sector. In response to this need, the AIG-Imoukhuede Foundation, through its Public Leadership Programme (PLP), has led initiatives to improve public service delivery and expand access to quality primary healthcare across Africa, starting with Nigeria. The AIG Public Leaders Programme, developed in partnership with the University of Oxford’s Blavatnik School of Government, provides emerging African public sector leaders with a distinctive opportunity to enhance their leadership skills and capacity for driving impactful change.

    The AIG Public Leadership Programme is an executive capacity-building initiative tailored specifically for public servants across Africa. Designed for senior leaders and those advancing into higher roles, the programme equips participants with the critical skills necessary to navigate and lead in today’s rapidly evolving and complex world. By strengthening their leadership capabilities, the programme empowers these leaders to drive positive, transformational change within their institutions and beyond.

    Featuring a dynamic blend of online and in-person classes, the curriculum fosters engagement through discussions, simulations, and hands-on exercises. It is crafted to enhance leadership abilities while instilling a culture of excellence, effectiveness, and integrity within public institutions. Led by renowned global experts in public policy, the programme offers a transformative learning experience that is reshaping the narrative of public sector reform. Its long-term goal is to empower Nigerian public servants to reclaim their leadership position on the continent, echoing the era of the 1960s and 1970s when Nigeria’s public service was internationally revered for its excellence. Over the past four years, the programme has trained nearly 300 public servants, equipping them with world-class leadership skills and innovative strategies to tackle governance challenges both in Nigeria and across the continent.

    Programme impact and reach

    Former Vice President of Nigeria, Professor Yemi Osinbajo, emphasised that the AIG Public Leaders Programme has evolved into much more than a contribution to the development of Nigeria and Africa’s public service. Osinbajo, who delivered the keynote address at the closing ceremony for the programme’s fourth cohort, highlighted the critical role of public service in national development.

    He described the programme as a transformative initiative for building capacity within the civil service, not only locally but across the entire continent. Reflecting on the impact of public service on nation-building, Osinbajo noted that when public services are delivered by well-trained, well-resourced, and motivated professionals, economies flourish, businesses expand, jobs are created, and lives are improved.

    Explaining further, he stated that when the public service is weak, disorganized, or driven by self-interest, progress is hindered, opportunities are squandered, and the economy suffers as a result. He said: “Clearly when public systems fail, everyone suffers. But when the public service sees itself as a public resource to solve problems, the possibilities for transformational change are limitless.

    “Consider again, the daily challenges entrepreneurs face when trying to register companies, secure certifications, or obtain necessary approvals. Every time we delay their progress, telling them to come back next week instead of resolving issues today, we are not just postponing one person’s prosperity. We are postponing opportunities for many others whose livelihoods depend on that business succeeding. In short, when a public officer becomes an obstacle, they directly undermine national prosperity.”

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    Speaking on the need for effective policy, Osinbajo emphasised that policymaking must be adaptive, responding to evolving realities. He stressed that regulatory frameworks must continuously evolve to address new developments, unlocking opportunities while safeguarding the public interest. “An effective public service today must also see the private sector as crucial partners. The public service exists to facilitate enterprise and support the private sector. This fact is the fundamental of a dynamic and productive relationship between the public and private sectors in our nations. The AIG Public Leaders Programme empowers participants to imagine new possibilities, test bold ideas, and design practical solutions,” Osinbajo said.

    He highlighted that many programme participants had already implemented reform projects with far-reaching impacts, such as leveraging mobile technology to expand mental health services and developing AI-powered knowledge management tools. Osinbajo likened these public servants to “public service scientists”—innovators who, much like technology scientists, create groundbreaking systems and processes to ensure that healthcare, safety, education, and economic opportunities are accessible to every citizen, not as a privilege, but as a fundamental guarantee.

    “The prosperity of our nations depends on the diligence, integrity and vision of our public servants. With programmes like this nurturing such talent, the future of public service in Africa is bright. I am convinced that after these past six months of rigorous learning, your approach to public service will never be the same,” he added, urging graduates to embrace a mindset of problem-solving, creativity, and transformative leadership.

    Founder of the AIG-Imoukhuede Foundation, Aigboje Aig-Imoukhuede (CFR), emphasised the programme’s broader vision of empowering a special breed of public servants capable of driving meaningful change. He explained that the AIG Public Leaders Programme is not just a Nigerian initiative; it has extended its impact across Africa, bringing together participants from eight countries since its inception. Designed for senior public officials, the programme provides advanced training on governance, integrity, and technology-driven solutions to the challenges of public administration. Aig-Imoukhuede stated, “Our challenge is not just about doing things faster; it’s about catching up. Catching up requires not just intelligence, but the courage to do things differently.”

    This call to action resonated deeply with the 68 cohort members, who have spent months refining leadership strategies that prioritise accountability, innovation, and citizen-centric governance. Their journey through the programme has equipped them with the skills needed to navigate complex public sector challenges while driving meaningful reform.

    Prof Emily Jones of the Blavatnik School of Government at the University of Oxford highlighted five core themes central to the programme, underscoring their pivotal role in shaping effective governance. “The first, ‘Integrity in Public Life,’ reflects the importance of ethical leadership as the foundation of effective governance,” Jones explained. She emphasised that public servants must consistently act in the best interests of citizens to foster trust and accountability. Acknowledging the rapid technological transformation reshaping public administration, she also noted that the programme underscores the necessity for leaders to be skilled in integrating AI, big data, and digital tools to enhance service delivery.

    Another key theme, she said, is ‘Institutional Leadership and Performance Reform,’ which recognises that improving public institutions is a continuous process requiring visionary leadership and strategic planning. Jones further highlighted the programme’s emphasis on ‘Negotiating in the Public’s Interest,’ noting that public officials often engage in negotiations related to policies, budgets, and international agreements. Mastering these negotiation skills is essential for securing the best possible outcomes for citizens.

    The final theme, ‘Governing in Times of Challenge and Change,’ she explained, calls for adaptive leadership in response to global disruptions such as climate change, economic shifts, and technological advancements. Leaders must be both proactive and resilient to navigate these complexities. She also praised the reform projects completed by the cohort, citing examples of real-world impact, including one public servant who used her project to reduce hospital patient waiting times by half—an initiative now being rolled out across her state. “The stories of impact emerging from this programme are proof that real change is possible,” she said. “Each of you has the power to deliver meaningful transformation in your institutions and communities.”

    President of the AIG-Imoukhuede Alumni Association, Mr. Idowu Bakare, highlighted the growing network of public sector leaders who have graduated from the Foundation’s capacity-building programmes and are dedicated to strengthening public service delivery across Africa. He reaffirmed the Association’s commitment to supporting new graduates. With a mission to serve as a hub for collaboration, innovation, and the implementation of alumni-driven projects, Idowu asserted that the collective action of the association would amplify the programme’s long-lasting impact.

    Transformational change in the public sector

    Corroborating the former vice president, the Head of Civil Service of the Federation, Mrs. Esther Didi Walson-Jack, underscored the critical role of leadership development in driving public service reforms across the continent. She emphasised that by equipping leaders with the necessary tools to improve service efficiency, the Foundation is at the forefront of driving meaningful transformations that have a positive impact on the economy. Walson-Jack commended the programme for aligning with Nigeria’s civil service reform efforts, noting that many alumni are actively contributing to key national reform projects. She also highlighted that the collaboration between the public sector, academia, and philanthropic organizations marks a new era in African governance—one rooted in competence, innovation, and a steadfast commitment to the public good.

    “As Africa navigates the complexities of the 21st-century global economy, the importance of a strong, ethical, and future-ready public sector cannot be overstated. The AIG Public Leaders Programme is proving that with the right training and mindset, public servants can drive transformational change and elevate governance standards,” she said.

    The Executive Vice Chairman of the Foundation, Mrs. Ofovwe Aig-Imoukhuede, emphasised the programme’s significant impact, stating that graduates are now equipped with the skills and insights necessary to excel in their roles within the public service. On the issue of effective leadership, she highlighted that the programme addresses the urgent need for strong leadership in the African public sector. By fostering sustainable development and good governance, the programme ensures participants are prepared to tackle contemporary challenges. She also noted that these graduates are not only applying their knowledge effectively but are actively sharing their expertise within their organisations and the broader public sector, thereby enhancing overall leadership capacity.

    “Our mission is to improve the lives of Africans by transforming public service delivery and expanding access to efficient service delivery. We are committed to driving meaningful change, and we are proud of the impact our programme participants are making. By applying what they have learned, they are fostering positive transformation within their organizations.

    “The AIG Public Leaders Programme continues to set a high standard for leadership training, shaping a new generation of public servants who are poised to drive significant policy and governance reforms across Africa,” Aig-Imoukhuede stated.

  • Assessing financial sector’s input to $1 trillion economy target

    Assessing financial sector’s input to $1 trillion economy target

    The World Bank recently reaffirmed Nigeria’s position as the largest economy in Africa by Gross Domestic Product (GDP). Not content with this achievement, the Federal Government has set an ambitious target of growing the economy to $1 trillion by 2030. While many stakeholders view this goal as audacious, they agree it is achievable. To realise this vision, substantial efforts will be required, including the Central Bank of Nigeria (CBN)-led bank recapitalisation, foreign exchange reforms, and a continued fight against inflation, writes Assistant Editor Collins Nweze

    A well-capitalised banking sector is undeniably crucial for the growth of the domestic economy. This is why nearly two years ago, Central Bank of Nigeria (CBN) Governor Olayemi Cardoso urged banks to prepare for a new round of recapitalisation to ensure they have the necessary capital to support the Federal Government’s $1 trillion GDP  target. Cardoso reiterated that President Bola Ahmed Tinubu’s economic plan aims to reach a $1 trillion GDP by 2030, emphasising that the current bank capitalisation is insufficient to support such a large economic scale.

    The CBN boss asked: “Will Nigerian banks have sufficient capital relative to the financial system’s needs in servicing a $1.0 trillion economy in the near future? In my opinion, the answer is “No!” unless we take action. Therefore, we must make difficult decisions regarding capital adequacy. As a first step, we will be directing banks to increase their capital.”

    Continuing, he said: “The administration, as outlined in the widely circulated Policy Advisory Council report on the national economy, had set an ambitious goal of achieving a Gross Domestic Product (GDP) of $1.0 trillion, with clearly defined priority areas and strategies.” According to him, attaining this substantial target necessitates sustainable and inclusive economic growth at a significantly higher pace than current levels. “The administration has already commenced this journey through fiscal reforms, including the removal of petrol subsidy and the unification of the foreign exchange market rate,” he added.

    Today, many banks have successfully recapitalised, while others are exploring mergers and acquisitions to strengthen their capital bases. The CBN Governor stated that these moves align with the central bank’s efforts to enhance financial inclusion and support economic growth. To further these objectives, the CBN has introduced new minimum capital requirements for banks. He said: “This strategic move ensures that banks are well-capitalised, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to Micro Small and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have previously struggled to access formal financial services.”

    The World Bank recently identified four key sectors where strategic reforms could drive significant investment and job creation. In the Information and Communication Technology (ICT) sector, reforms could unlock up to $4 billion in investments, creating over 200,000 jobs. In agribusiness, potential investments of $6 billion could generate more than 275,000 jobs. The solar photovoltaic (PV) industry presents an opportunity for $8.5 billion in investments, potentially creating over 129,000 jobs. Meanwhile, the pharmaceutical sector could attract $1.6 billion in investments, leading to the creation of 30,000 to 40,000 jobs.

    Sustaining bank recapitalisation

    On March, 28, last year, CBN unveiled a two-year bank recapitalisation exercise which commenced on April 1, 2024, and is expected to end on March 31, 2026. The recapitalisation plan requires minimum capital of N500 billion, N200 billion, and N50 billion for Commercial Banks with International, National, and Regional licenses, respectively. Cardoso said the recapitalisation policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he stated.

    The CBN is the final signatory in a tripartite capital verification committee that included the Securities and Exchange Commission (SEC) and Nigeria Deposit Insurance Corporation (NDIC). Under the guidelines for the recapitalisation, capital verification is a major requirement before the clearance of the allotment proposal and release of the funds to the bank for onward completion of the offer process and addition of the new capital to its capital base.

    Experts had estimated that banks could raise about N5 trillion within the two-year recapitalisation period. About one year to recapitalisation deadline, banks have stepped up preliminary consultations on the prospect of business combinations.  Analysts said there have been “more talks around mergers and acquisitions” as banks consider alternative options to fresh capital raising.

    The CBN had approved the first mergers and acquisition deal between Providus Bank and Unity Bank in 2024. Access Holdings Plc, Ecobank Nigeria and Jaiz Bank Plc have met the new minimum capital requirements. Afrinvest banking sector report on bank’s recapitalisation explained that the CBN had, in its March 2024 capital requirement guideline, announced a new capital structure for banks under different licenses to strengthen the financial system and aid the government’s target of a $1 trillion economy by 2032.

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    The recapitalisation exercise was also triggered by the clear erosion of banks’ capital buffer post-2010 from a real and FX perspective compared to 2010 levels. “Using the 2023 average, the existing minimum capital size has lost 77.1 per cent and 76.5 per cent in FX and real terms, respectively. To shore up the capital gap, the CBN considered the impact of macroeconomic headwinds on banks’ risk profiles and financial position in defining the new threshold,” the report said.

    Stakeholders speak

    The Chairman of Parthian Group, Adedotun Sulaiman, emphasised the essential role of investments in economic development, stating, “capital is the oxygen of the economy, and without capital, we can’t go very far.” Speaking during the launch of the company’s two investment funds in Lagos, he said the products are its own modest contribution, in mobilising the capital needed to achieve the President’s audacious goal of creating a $1 trillion economy. He said: “I will say we have huge capital deficit in Nigeria, and other developing countries. We need enough capital to build infrastructure, and support economic growth. So, what we are doing is set up these products, mobilise the capital from small savers, individuals, and corporate and then deploy the capital to people that need it can use the funds to build roads, schools, healthcare among others,” he said.

    Sulaiman added: “So, that is what we are doing; it is our modest contribution to grow the Nigerian economy. The $1 trillion economy target is ambitious, audacious. The thing about life is that one should challenge oneself. Is it possible? Yes, it is possible but requires a lot of hard work and resources. And can we rise to the occasion as a country? Yes, I think so.”

    Other analysts said the government’s goal of achieving a $1 economy would require the institutionalisation of corporate governance in Nigeria’s public sector to foster transformation within the sector. They urged Nigeria to adopt good governance practices to align better with international business standards. She also called for a legal framework to support this institutionalization and structures to drive national transformation.

    Remittances deepen FX inflows

    Already, remittances through International Money Transfer Operators (IMTOs) rose 79.4 per cent to US$4.18 billion in the first three quarters of 2024, demonstrating the positive impact of FX reforms. Additionally, the CBN lifted the 2015 restriction barring 41 items from accessing FX at the official market to enhance trade and investment. These reforms and developments reflect the bank’s commitment to creating an enabling environment for inclusive economic development. However, achieving macroeconomic stability requires sustained vigilance and a proactive monetary policy stance. “As we shift from unorthodox to orthodox monetary policy, the CBN remains committed to restoring confidence, strengthening policy credibility, and staying focused on its core mandate of price stability,” Cardoso reaffirmed.

    To tackle the pressing challenge of inflation, the CBN acted decisively by raising the Monetary Policy Rate by 875 basis points to 27.5 per cent in 2024—an essential move to contain inflation and restore stability. Analysts insist that these measures under Cardoso have not only lifted the forex market and entrenched long-lasting stability but laid foundation for sustainable economic growth.

    Very significantly, the resilience of the domestic economy, bolstered by a strong financial system with robust soundness indicators, instils confidence in the economic structure. Major prudential ratios, such as capital adequacy, liquidity, and Non-Performing Loans ratios, were within prudential limits, reflecting proactive regulatory oversight and strong industry risk management practices. Significant credit was extended to growth-enhancing sectors such as agriculture, manufacturing and general commerce, as well as individuals and households.

    The credit played a crucial role in stimulating economic activities and supporting output performance, emphasising the role of financial institutions and sound regulation led by the Central Bank of Nigeria. Besides, the CBN has also taken strategic steps to tackle inflation. The apex bank recently hosted the Monetary Policy Forum 2025, featuring fiscal authorities, legislative, private sector, development partners, subject-matter experts, and scholars with the theme: “Managing the Disinflation Process.” Cardoso explained that the apex bank’s focus is to sustain price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship. The CBN is continuing its disciplined approach to monetary policy, aimed at curbing inflation and stabilizing the economy. “These actions have yielded measurable progress: relative stability in the FX market, narrowing exchange rate disparities, and a rise in external reserves to over $40 billion as of December 2024.

    The CBN also focused on strengthening the banking sector, introducing new minimum capital requirements for banks (effective March 2026) to ensure resilience and position Nigeria’s banking industry for a $1 trillion economy,” he said. To further enhance the functionality of the foreign exchange market, the apex bank introduced an Electronic Foreign Exchange Matching System which has proven effective in other markets. The programme was meant to check forex market distortions, eliminate speculative activities and instil transparency. The EFEMS, which is commonplace in developed and developing markets, offers real-time information on currency rates, trading volumes, and market activity. For many stakeholders, these measures under Cardoso have not only lifted the forex market and entrenched long-lasting stability but laid solid foundation for economy and businesses to thrive.

    Banking sector indicators show resilience

    Cardoso explained that within the banking sector, the sector remains robust with key indicators reflecting a resilient system. “The non-performing loan ratio remains within the prudential benchmark of five per cent, showcasing strong credit risk management. The banking sector liquidity ratio comfortably exceeds the regulatory floor of 30 per cent, a level which ensures banks are maintaining adequate cash flow to meet the needs of customers and their operations. The recent stress test conducted also reaffirmed the continued strength of our banking system,” he said. To ensure that our banking system can effectively support the growth of our economy, efforts to strengthen banks’ capital buffers were announced in 2023 with a two-year implementation window.

  • Metering crisis remains a persistent challenge in the power sector

    Metering crisis remains a persistent challenge in the power sector

    Metering remains a critical yet unresolved challenge within Nigeria’s electricity sector, despite numerous governmental interventions. Accurate metering is essential for both consumers, to ensure fair billing, and for DisCos, to drive revenue collection and reduce operational losses. However, significant gaps persist, with millions of Nigerians still unmetered. This has resulted in exploitative estimated billing, financial losses, and inefficiencies in the electricity value chain. Despite various initiatives, including the Presidential Metering Initiative (PMI) and the National Mass Metering Programme (NMMP), the sector continues to face financial, logistical and regulatory hurdles, hindering progress toward widespread metering and sector sustainability. Assistant Editor MUYIWA LUCAS writes.

    The issue of metering within Nigeria’s electricity sector has become a persistent problem that seems to defy all attempts at resolution, despite numerous efforts by the government to find a lasting solution. This challenge is particularly significant for the electricity distribution companies (Discos), which continue to struggle with this hydra-headed problem.

    The role of meters in the Nigerian Electricity Supply Industry (NESI) is crucial, as they serve dual purposes. For consumers, meters ensure they are billed accurately for their actual electricity usage. On the other hand, they are vital for the Discos, providing a reliable mechanism for revenue collection and operational sustainability.

    Unfortunately, both consumers and Discos are suffering financial losses due to the lack of effective metering. Consumers, often without access to functional meters, are subjected to estimated billing, which many have labelled as exploitative. Meanwhile, for Discos, the significant issue of inadequate metering contributes directly to the Aggregate Technical, Commercial, and Collection (ATC & C) losses in the sector. In fact, proper metering is widely seen as a foundational element for ensuring the long-term commercial viability and revenue generation of the electricity industry.

    For the DisCos, it is crucial to accurately track both the inflow of electricity into their networks and the outflow to customers. This not only ensures fair billing but also facilitates transparent payments between suppliers and customers. As such, metering must be prioritised by the DisCos and the entire power sector value chain, since the costs of service at every stage are ultimately reflected in the final utility bill paid by the customer.

    The Aggregate Technical, Commercial, and Collection (ATC&C) loss represents the total losses a DisCo faces due to its inability to bill for 100 per cent of the energy supplied to customers (both technical and commercial losses), as well as the losses from the failure to collect the full amount of the bills issued. The ATC&C loss is a vital metric for evaluating performance and is integral to the process of tariff calculation.

    Yusuf Ali, the Commissioner for Planning, Research, and Strategy at the Nigerian Electricity Regulatory Commission (NERC), effectively captured the essence of the metering challenge during his address at PwC’s Annual Power and Utilities Roundtable in Lagos. He emphasised that the problem is compounded by the inadequate enumeration of customers across the DisCos. Speaking on the theme “Reigniting Hope in Nigeria’s Electric Power Sector,” Ali described metering as “the lifeblood of revenue recovery,” stressing that the success of tariff reforms would be undermined without effective metering in place.

    In a PwC’s advisory report, Associate Ebere Onwuegbule and Senior Manager Jerry Ehanmo highlighted that the entire power sector value chain relies on the DisCos to provide last-mile services to customers and handle revenue collection. According to their report, this critical function can only be successfully carried out through an effective and comprehensive metering programme, which ensures accountability, transparency, and encourages customers to pay their bills.

     Even though there are 13.5 million registered electricity customers in Nigeria, approximately 6.2 million remain unmetered, according to data from the Nigerian Electricity Regulatory Commission (NERC). This remains the case even though various regulatory interventions have been introduced over the years to ensure the widespread metering of electricity customers.

    Unfortunately, the DisCos have struggled to finance and implement the necessary strategic initiatives to improve cash flow and service delivery, which are essential for reducing the goal of ATC&C losses. Metering all end-use customers is expected to phase out estimated billing, enhance the accuracy of energy billing, and improve revenue collection. These improvements will have a positive ripple effect throughout the electricity value chain in Nigeria. Moreover, metering will inject much-needed liquidity into the sector, supporting infrastructure development and overall sector growth.

    At a recent NERC meeting with investors and owners of DisCos in Abuja, Prof. Barth Nnaji, former Minister of Power and Chairman of Aba Power, emphasised the necessity of fully metering consumers for the DisCos to become self-sustaining. He stated, “No matter the level of bypass in metering, ultimately, metering is a crucial enabler to curb collection losses. Once metered, DisCos can also invest in the technology and intelligence needed to reduce infractions.”

    Losses and declining installation

    Ali’s observations are clearly reflected in the revenue collection performance of the DisCos in December 2024. According to a report by the industry regulator, NERC, the 12 utilities collectively failed to collect N60 billion in December, raising serious concerns about the sector’s financial health and its capacity to deliver reliable electricity to consumers. The report revealed that while the DisCos billed customers a total of N238.21 billion for electricity consumed in December 2024, they were only able to collect N177.96 billion. This resulted in a collection efficiency of 74.71 per cent, leaving a significant gap of N60.25 billion uncollected. The data also underscores the disparity in performance among individual DisCos, with several recording collection efficiencies below the national average, pointing to considerable challenges in revenue collection.

    “This level of revenue loss is unsustainable,” stated Aisha Mohammed, an energy analyst at the Lagos-based Centre for Development Studies. “The DisCos need to significantly improve their collection efficiency to ensure the financial viability of the power sector.”

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    Stakeholders in the power sector have explained that the inability to collect billed revenue has a ripple effect across the entire electricity value chain. It limits the DisCos’ ability to invest in infrastructure upgrades, maintain their networks, and pay for electricity purchased from generation companies (GenCos). Ultimately, this undermines the quality and reliability of electricity supply to consumers. According to the NERC report, DisCos received a total of 2,705.86 GWh of energy in December 2024, billing 2,257.83 GWh to customers, resulting in an overall billing efficiency of 83.44%. This represents a modest increase of 0.11% compared to November 2024, indicating a positive trend in the DisCos’ ability to meter and bill customers accurately.

    However, the revenue collection picture remains less optimistic. Despite the total billings of N238.21 billion, DisCos were only able to collect N177.96 billion, which results in a collection efficiency of 74.71 per cent. Although this marks an improvement of 5.88 per cent from the previous month, it still leaves a significant gap between billed and collected revenue. The average allowed tariff for December 2024 was N116.18 per kWh, while the actual average collection was N82.50 per kWh, resulting in a recovery efficiency of just 71.01 per cent. This means DisCos are recovering only about 71 per cent of the revenue they are entitled to collect based on approved tariffs. A closer examination of the data reveals notable differences in performance among individual DisCos. Eko DisCo stands out with the highest billing efficiency of 89.03 per cent and a collection efficiency of 91.50 per cent. Ikeja DisCo also performed well, with a billing efficiency of 83.41 per cent and a recovery efficiency of 80.71 per cent.

    Conversely, some DisCos are facing significant challenges in revenue recovery. For instance, Kaduna DisCo has a recovery efficiency of just 31.87 per cent, while Aba DisCo stands at 45.91 per cent. These low recovery rates suggest issues with customer payment compliance and potentially highlight problems with metering and billing accuracy. The NERC report also compares performance relative to November 2024. Yola DisCo, for example, saw the highest relative improvement in billing efficiency, with an increase of 10.74 per cent. However, the report also notes that some DisCos experienced a decline in performance compared to the previous month. The report reveals that these losses are largely attributed to the inadequate allocation of meters to consumers, which continues to be a significant barrier to improving revenue collection.

    The continued decline in meter installations is concerning, especially given the various initiatives aimed at addressing this issue. NERC reported a significant 60.86 per cent Quarter-on-Quarter (Q-o-Q) drop in meter installation rates in the second quarter of 2024 (Q2-24), with only 49,188 meters installed, compared to 125,664 meters in the first quarter of 2024 (Q1-24).

    Despite this decline, the report notes that the new installations did contribute to a slight improvement in the overall end-user metering rate within the Nigerian Electricity Supply Industry (NESI), increasing by 0.64 per cent from 44.79 per cent in Q1-24 to 45.43 per cent in Q2-24. “During the quarter, 35,985 meters, representing 73.16 per cent of the total installations, were installed under the MAP, framework while 264 meters were installed under the National Mass Metering Programme (NMMP) framework. The Vendor Financed framework accounted for 12,843-meter installations while 96-meter installations were recorded under the DISCO financed framework.” The report added: “The Commission expects DISCOs to utilise a combination of the five-meter financing frameworks that have been provided in the 2021 MAP and National Mass Metering Regulations (NERC – R – 113 – 2021) to close their respective metering gaps.

    Several initiatives to close the metering gap

    As DisCos continue to struggle with closing the metering gap, they face several challenges, primarily financial constraints, logistical issues and regulatory hurdles. In response, the federal government has intensified efforts to assist these utilities in overcoming their difficulties. The first major initiative aimed at addressing the metering challenge began after the privatisation of the defunct Power Holding Company of Nigeria (PHCN), which led to the takeover by the 11 DisCos. Between 2013 and 2016, the government introduced the Credited Advance Payment for Metering Implementation (CAPMI). Under this initiative, electricity consumers were required to pay upfront for meters to their respective DisCos, with the utilities obligated to install the meters within 45 days of receiving payment. In return, these customers were to be reimbursed through exemptions from paying the fixed charge for meters, with a 12% interest rate.

    However, due to the unavailability of meters and customer resistance for various reasons, the CAPMI project achieved limited success, with only 410,796 meters installed across the country over three years. A second initiative was launched in 2018, under the Meter Asset Provider (MAP) scheme. This programme allowed third-party MAPs to supply and install meters, with payments made through a monthly meter maintenance charge. Additionally, customers had the option to pay 100% of the meter cost upfront or in installments. The prices of meters were set by the Nigerian Electricity Regulatory Commission (NERC) and were uniform across all DisCos, with a commitment to install meters within 10 days of payment.

    Despite these efforts, the scheme faced numerous challenges, including installation delays, lack of refunds, volatility in foreign exchange (Forex) affecting meter prices, a 35% import levy on meters, and funding constraints. As a result, the number of meters installed was far below the contracted figure of 6,588,971. By December 2019, only 122,737 meters had been installed, despite over 100 companies registering as MAPs, meter service providers (MSPs), and local meter manufacturers and assemblers.

    Undeterred by previous challenges, the Meter Asset Provider (MAP) scheme was revised in 2020, offering only one payment option: customers would pay the MAPs to supply and install meters, with reimbursement through energy credits. This revised version retained most features of the original scheme. By December 2024, a total of 2,184,254 meters had been installed under the updated MAP scheme. In the same year, the National Mass Metering Programme (NMMP) was introduced. This initiative aimed to increase the metering rate, eliminate arbitrary estimated billing, strengthen the local meter manufacturing sector, create jobs, and reduce collection losses. Meters under the NMMP are funded through loans from the Central Bank of Nigeria (CBN) and the World Bank.

    To kickstart the programme, an investment of N200 billion was made to support revenue collections within the Nigerian Electricity Supply Industry (NESI). The NMMP was structured in three phases: Phase 0 (the pilot phase) aimed for one million meters, funded by the CBN; Phase 1 targeted four million meters; and Phase 2 aimed for 1.5 million meters. Phase 0 was the only phase funded by the CBN, with N59.28 billion allocated for the installation of one million meters. Since its inception, 89.96% of the allocated funds for Phase 0 have been disbursed to the 11 DisCos, leading to the procurement of 962,832 meters through 23 Meter Asset Providers.

    In addition to the National Mass Metering Programme (NMMP) and Meter Asset Provider (MAP) scheme, several other ongoing initiatives, such as the Presidential Metering Initiative (PMI), World Bank Distribution Sector Recovery Programme (DISREP), and the Meter Acquisition Fund (MAF), have brought in over N335 billion in funding. As of now, around 3.2 million meters are being rolled out under the DISREP, with implementation currently ongoing. Under the MAF, N1.185 per kWh of electricity sold to consumers is allocated to the MAF fund, which is centrally collected and managed by a Fund Manager (FM) on behalf of all DisCos. DisCos can then draw from this fund to procure meters through MAPs, using the contributions saved in the MAF to make payments.

    The introduction of the MAF came after the failures of previous programs, including the Meter Asset Provider Regulations in 2018 and the National Mass Metering Regulations in 2021. Despite this, the program has faced its own challenges, particularly slow and inefficient procurement processes by the DisCos, as well as pre-installation Know Your Customer (KYC) issues. However, despite these hurdles, N21 billion has been allocated for metering Band A customers under Tranche A of the scheme, resulting in the procurement of 143,929 meters, with installations currently underway.

    In another renewed effort to close the metering gap, the federal government introduced the Presidential Metering Initiative (PMI). This initiative involves a N700 billion loan from the Federation Account Allocation Committee (FAAC), with a 10-year term, zero interest, and a two-year moratorium. The goal of the PMI is to procure 2.6 million meters and consolidate all existing metering initiatives, including the World Bank’s Distribution Sector Recovery Programme (DISREP), the Meter Acquisition Fund (MAF) by NERC, and the FGNPower programme. The PMI officially began earlier this year.

    In August, the federal government announced that, in collaboration with sub-national entities, it had raised N100 billion to fund the procurement of prepaid electricity meters. Minister of Power, Adebayo Adelabu, revealed that this funding was part of the PMI initiative. He pointed out that many customers were not paying their bills due to the perception that they were being overcharged through estimated billing. Adelabu emphasised that metering would ensure transparency, calling the ongoing challenges in the sector “self-inflicted.” He stressed that investments in metering would go a long way toward resolving many of the issues plaguing the electricity sector. “In the PMI, we have made good progress in sourcing the fund for this, and it is going to be by a combination of the federal and state governments. Today, we have received, and we have seen about N100 billion that will go into the procurement of meters,” the minister said.

    In a separate announcement, Adelabu revealed that the federal government plans to procure 3.5 million electricity meters by the end of the year to boost revenue for the cash-strapped power sector. He explained that most of the meters would be sourced from international vendors, while a smaller portion would be procured from local manufacturers, given their limited production capacity. Similarly, Tunji Bolaji, the Special Adviser to the Minister of Power on Strategic Communications and Media, confirmed the commencement of the Presidential Metering Initiative (PMI). “We are on course with the Presidential Metering Initiative and we expect delivery of meters to begin this quarter. The plan is to distribute about two million meters this year and 10 million meters in five years and it will be done in tranches. The government is working with the local manufacturers because the minister, in recent months, has had to inspect the local manufacturers to be sure they can deliver on the project. So, we expect meters from the local manufacturers,” he said.

    Data from the Nigerian Electricity Regulatory Commission (NERC) over a four-month period revealed that only 115,767 electricity customers were provided with meters between April and July. Out of the 13,293,739 registered electricity customers in the country, by July, 6,053,497 homes and offices had been metered. A breakdown of the data showed that in May, 8,733 customers were metered; in June, 12,854; and in July, 70,456. Although the responsibility for metering lies with the DisCos, the electricity distributors have consistently cited financing constraints as a major obstacle.

    According to the NERC data, the metering rate remained low throughout the period. In April, the rate stood at 44.67%, rising slightly to 45.39% in May, 45.43% in June, and 45.54% in July. During this period, Ikeja DisCo consistently led the metering rate, with 73.13% in April, 76.25% in May, 76.64% in June, and maintaining 76.64% in July. Abuja DisCo followed closely, with 61.19% in April, 70.02% in May, 70.17% in June, and 70.48% in July.

    DisCos respond

    In response to these initiatives and in a bid to mitigate their losses, DisCos across the country are increasingly focusing on meter installations. For example, the Kano Electricity Distribution Company (KEDCO) recently announced the commencement of the installation of 4,000 free prepaid meters for its customers. This move is part of a broader effort to improve service delivery and ensure transparency in billing. The installation is being carried out under the Meter Acquisition Fund (MAF) initiative introduced by the federal government. KEDCO has engaged approved meter vendors to supply and install the meters, marking a positive step towards addressing the metering gap and improving customer satisfaction.

    “In continuous efforts to close the metering gap, KE DCO has commenced metering its Band A and B customers under the Meter Acquisition Fund initiative, introduced by the federal government. Under this initiative, KEDCO has engaged approved Meter Asset Providers to provide and install over 4,000 meters to customers across the franchise area,” the management stated.

    Ikeja Electric, through its Head of Corporate Communications, Kingsley Okotie, emphasised that the utility has been proactive in the installation of meters. He mentioned that Ikeja Electric is currently active under the Presidential Metering Initiative (PMI) to install meters for its customers in Band A. However, Okotie did not provide specific data on the number of meters the utility has installed.  Meanwhile, the Association of Meter Manufacturers of Nigeria (AMMON) highlighted the need for decisive action to address challenges such as foreign exchange fluctuations, inflation, and instability within the metering industry. These issues, the Association warned, pose a significant risk of a severe meter shortage for installation.

    AMMON also urged the government to consider liberalising meter prices to allow manufacturers to better adapt to market dynamics and ensure a steady supply of meters. Additionally, the association stressed the importance of cost-effective meter specifications to support a sustainable metering solution in the country. “AMMON has expressed her concern over the challenges posed by foreign exchange fluctuations as it impacts the continuous supply of electricity meters to the Nigerian Electricity Supply Industry, NESI. AMMON advocates for collaboration between regulatory bodies and the Nigerian Electricity Management Services Agency (NEMSA) to develop cost-effective meter specifications tailored to NESI requirements.”

    We are on course with the Presidential Metering Initiative and we expect delivery of meters to begin this quarter. The plan is to distribute about two million meters this year and 10 million meters in five years and it will be done in tranches.

  • Rent crisis: Will Lagos follow Enugu footprints?

    Rent crisis: Will Lagos follow Enugu footprints?

    The rent debate in Lagos is heating up, and all eyes are now on the Lagos State House of Assembly. This comes after Enugu State took a bold step by introducing a bill aimed at curbing the excesses of landlords. In Lagos, where rent hikes and exorbitant agency fees have become the norm, the question remains: will Lagosians get relief anytime soon? IBRAHIM ADAM reports

    It was Jubril Gawat, Senior Special Assistant on New Media to the Lagos State Governor, Babajide Olusola Sanwo-Olu, who stirred the conversation when he quoted the Enugu bill on his X handle, writing: “LAGOS … Coming Soon. A very strong issue but must be well discussed and implemented after deliberation by the Lagos House of Assembly.”

    His follow-up post added fuel: “Under this tweet, Landlords and Tenants are tackling themselves and sharing very interesting perspectives. Very nice.”

    With Lagos residents grappling with skyrocketing rents, many hope the conversation will lead to concrete action.

    What the Lagos tenancy law says

    The Lagos State Tenancy Law of 2011 provides some legal protection for tenants against unreasonable rent increases. Section 37 allows tenants to challenge excessive rent hikes in court.

    Read Also: I won’t stop Rivers Assembly from performing constitutional duties – Wike

    However, the law has loopholes. High-value areas like Ikoyi, Ikeja GRA, Victoria Island, and Apapa are exempted, leaving tenants in these locations vulnerable.

    Moreover, Section 37 (2) gives no clear limit on how much landlords can increase rent; meaning rent hikes could still be astronomical.

    Learning from Enugu blueprint

    The Enugu State House of Assembly recently introduced the bill for a law to amend the Landlord and Tenant Law, which aims to cap agency and legal fees at 10% of annual rent, abolish caution fees, and penalise violations with fines of up to N500,000 or six months in prison.

    The bill also seeks to define eviction processes to prevent fraudulent evictions and ensure that only certified agents operate in the state.

    Entitled “the Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” the proposed legislation sponsored by member representing Nkanu East State Constituency, Okey Mbah, underwent the first reading on Tuesday.

    Mbah said: “The ills it seeks to address are widespread and generally suffered by our constituents.”

    Landlords: Defending the price surge

    For many landlords, the rising cost of rent is a necessary evil. They cite high construction costs and economic instability as reasons for the hike.

    A landlord in Surulere confidently told our reporter: “If you don’t take this house for N1m, I can bet with you that before next weekend, I will give it out for N1.5m annual payment.”

    Another landlord in Somolu was even blunter: “It is my house, and I will give it out at what I choose to. The government did not build this house for me. If you cannot pay N1.3m annually, you can try another place.”

    On social media, some landlords echoed these sentiments. Cheryl deBlaq wrote: “I only collect rent & agreement fee of #50k. I don’t use agents. The Lagos laws favour tenants more than homeowners, and that’s why many homeowners are selling or converting properties to hotels.”

    While some landlords defend their actions, others like Omotoso, a landlord in Lagos, admitted: “Some landlords are simply wicked shylocks with the amount they charge for rents in Lagos. The government must do something about landlords and their partners in crime, estate agents.”

    Tenants: Voices of frustration, desperation

    For tenants, the story is one of hardship and frustration. Rent increases without prior notice, excessive agency fees, and steep caution fees are making life unbearable.

    Reacting to Gawat’s post, Olajide Taiwo, a Lagos resident, voiced concerns about the gap between legislation and enforcement, lamenting: “Egbon, it’s one thing enacting laws and another thing implementing them. My rent has been increased twice in just three years, with a 70% hike each time.”

    Other residents shared similar experiences. One tenant disclosed, “Mine was increased three times in four years. The last one was over a 50% hike. Increases are at par with the dollar’s upward movement but never come down. God dey help us still.”

    Akereyejo emphasised the strain of living in Lagos, highlighting how landlords are quick to complain about rising costs while tenants bear the brunt.

    “Seriously, living in Lagos is almost becoming unbearable for tenants. This has to be addressed. The government is building infrastructures with taxpayers’ money, but landlords are the ones complaining about cement prices.” Akereyejo said.

    Beyond rent, hidden charges such as agency fees, caution fees, and legal costs are also weighing heavily on tenants.

    Oluwaseun Tijani pointed out: “The rent itself isn’t the problem; it’s the agency fees, caution fees, and legal fees. There should be laws regulating how and when rent increases occur.”

    Capturing the frustration in a blend of humour and seriousness, Raheem Azeez Arisekola wrote: “House rent 150k per annum, agent and commission 250k, caution fee 50k. Total package 450k. Lagos scared me a lot… haha.”

    The latest complaint comes from Wahab, a tenant who shared his ordeal with escalating rent demands.

    “My landlord increases house rent yearly. When I wanted to get the apartment, the landlord told me N600,000, and I begged for N500,000.

    “But because I needed accommodation, I had to get it. I later discovered that the tenants I met there were paying N450,000.” Wahab recounted.

    The situation worsened when the landlord issued an ultimatum. “As of yesterday, the landlord has asked them to pack out if they cannot afford N600,000,” Wahab added.

    Agents and market dynamics: The middlemen’s role

    Agents are also central to the conversation, often accused of driving up costs through excessive fees.

    Our reporter found out that in areas like Agege, Surulere, Somolu, and Bariga, a room and parlour self-contain goes for N1m to N1.7m annually, with additional agreement, commission, damages, and legal fees between N700,000 and N900,000.

    While a room self-contain between N700, 000 and N1.2m with agreement, commission, damages and legal fee between N500, 000 and N700, 000.

    Abimbola, a prospective tenant, shared a shocking revelation: “A shop rent at 500k, agreement 250k, commission 250k, caution 50k, agent fee 5k. Just this morning! I asked the agent if he could pay such for that size of shop; he went cold.”

    Another X user questioned: “Is there a way they can eradicate agreement and commission fees or, better still, set a standard price? Agreement and commission dey frustrate boiz gan.”

    Sanwo-Olu advocates rental policy

    Thankfully, Governor Sanwo-Olu is also championing a transformative housing initiative – the Monthly Rental Payment System.

    Speaking at the 10th National Council on Lands, Housing, and Urban Development meeting in Lagos last year, Sanwo-Olu emphasised the burden of annual rent obligations on low and middle-income earners.

    He highlighted the state’s existing rent-to-own programme, requiring a modest five per cent down payment and a six per cent simple interest rate over 10 years.

    However, recognising that not all residents are ready for homeownership, the governor revealed plans for a purely rental system, allowing residents to pay rent monthly. This approach is designed to ease financial pressure and make housing more accessible.

    Special Adviser on Housing, Barakat Odunuga-Bakare, reinforced the governor’s commitment.

    She announced that the monthly rental scheme would launch by the end of 2024 or early 2025, starting with the public sector where earnings are easily verifiable. If successful, it will extend to the private sector.

    The state earmarked N5 billion for this scheme, underscoring its dedication to perfecting the initiative before rollout.

    Odunuga-Bakare pointed out that aligning rental payments with tenants’ earnings would not only enhance affordability but also stabilise the housing market.

    Fashola, others advocate monthly payment of rent

    Former Lagos State Governor and ex-Minister of Power, Works, and Housing, Babatunde Fashola, alongside key real estate stakeholders, is also backing the shift to a monthly rent payment system.

    At the Wemabod Real Estate Outlook 2025 event themed “Real Estate Development: A Catalyst for Nigeria’s Economic Recovery” in Lagos, Fashola argued that synchronising rent payments with monthly salaries could halt inflation and stabilise the economy.

    Fashola’s perspective is echoed by Group Managing Director of Odu’a Investment Company Limited, Abdulrahman Yinusa.

    Yinusa stressed the importance of employer involvement, suggesting that employers guarantee rental payments by deducting rent from salaries.

    This assurance, he believes, would encourage landlords to accept monthly payments, knowing their income is secure.

    Managing Director and Chief Executive Officer of Wemabod Limited, Bashir Oladunni also praised the monthly rental concept.

    He noted that while tenants would find it easier to meet their obligations, landlords’ interests must also be safeguarded. Given that many landlords rely on rental income to offset development loans, he added that the government must establish regulations balancing the needs of both parties.

    Oladunni revealed that Wemabod, backed by six states of the federation, is exploring the monthly rental model as part of its strategic plan to expand its housing portfolio by 500 units over the next five years.

    Economists and policy experts: To regulate or not?

    While many demand government intervention, some experts warn against overregulation.

    Abayomi Odekoya wrote: “Government intervention should not be to control rent, as it will reduce the incentive to invest in the housing market. If supply is low, rent will skyrocket, and undercover payments will become the norm.”

    However, another user argued: “Truth remains that government cannot fold its hands and watch hawkish landlords drive up inflation by arbitrarily jacking up rents. In most parts of Europe, the law limits landlords to increase rents based on conditions like adjusted inflation and property value.”

    Another user added: “Ko kan ye o! This is private business; if you want rent to be cheap, build government houses and rent then at giveaway prices. When I dey buy Dangote Cement, una no help me, when I dey settle Omo onile, una no dey there. When I want to benefit, you want regulate me? Ki lo de?”

    Will Lagos take the leap?

    With the Lagos rental market spiraling and tenants crying out for relief, the state’s next steps are eagerly awaited. As Jubril Gawat hinted, the public hearing for any incoming law promises to be interesting. The question remains: will Lagos adopt a framework similar to Enugu’s, or will the landlords’ lobby prove too strong?

    For now, Lagosians continue to hope for a fairer system, one where rent prices align with reality, and the dream of living in Lagos does not become a financial nightmare.