The Nation Newspaper

Category: Special Report

  • CBN strengthens oversight with key director appointments

    CBN strengthens oversight with key director appointments

    In a strategic move to bolster its operations and regulatory oversight, the Central Bank of Nigeria (CBN) has appointed new directors to key units within the bank. These appointments align with the CBN’s 2024–2028 strategy, which focuses on the active engagement of all staff in driving the successful implementation of its objectives. The involvement of PricewaterhouseCoopers (PwC) in the selection process has been widely acclaimed by industry leaders as a prime example of due diligence in shaping critical policy decisions and implementation, writes Assistant Editor, COLLINS NWEZE.

    Every organisation, whether in the public or private sector, understands the importance of a highly efficient and productive workforce. The capacity of its workforce not only influences the efficiency and strategic direction of the institution but also directly impacts its overall performance.

    For the Central Bank of Nigeria (CBN), the recent appointment of 16 directors and the thorough process behind these appointments highlight the institution’s commitment to securing top-tier talent. Under the leadership of Olayemi Cardoso, the CBN has introduced its new strategy for 2024-2028, emphasising the crucial role of every staff member in ensuring the successful execution and ownership of this strategy. So, the newly appointed directors are part of the broader vision of the bank to ensure that its policies and programmes are viably implemented in the overall interest of the economy.

    Emergence of new CBN directors

    Details have emerged on the process that led to the appointment of 16 new directors at the apex bank. Sources close to the regulator revealed that, in a departure from past practices, the CBN’s management engaged global consultancy firm PricewaterhouseCoopers (PwC) to oversee the selection process for the directors, ensuring an objective and transparent approach. A source within the bank, who spoke anonymously, disclosed that PwC conducted a two-phase appointment process designed to eliminate ethnic or religious biases. According to the source, “No objective-minded person at the CBN will question the transparency of this selection process or the qualifications of those appointed. The consensus within the bank is that management got it right this time by prioritising merit.”

    The appointments, which took effect from March 3, saw over 35 per cent of the new directors being women. The newly appointed directors and their respective departments include Dr. Rakiya Yusuf (Payment System Supervision), Dr. Adenike Olubunmi Ojumu (Medical Services), Dr. Aisha Isa-Olatinwo (Consumer Protection), Mrs. Rita Ijeoma Sike (Financial Policy and Regulation), Mrs. Monsurat Vincent (Strategy Management and Innovation), and Mrs. Omoyemen Avbasowamen Jide-Samuel (Information Technology).

    Other directors named in the appointment are Mr. Hamisu Abdullahi (Banking Services), Dr. Usman Moses Okpanachi (Statistics), Dr. Obom Victor Ugbem (Monetary Policy), and Mr. Farouk Mujtaba Muhammad (Reserve Management). Dr. Adetona Sikiru Adedeji, formerly Acting Director of Banking Supervision, now assumes a substantive role as Director of the Currency Operation and Branch Management Department. His appointment means his signature will now appear on Nigeria’s currency alongside that of CBN Governor Cardoso.

    Mr. Mohammed-Jamiu Olayemi Solaja, who previously led the Currency Operations Department, has been assigned to head the Other Financial Institutions Supervision Department. Additionally, Mr. Musa Nakorji now oversees the Trade and Exchange Department, while Mr. Kayode Olarewaju Makinde leads the Procurement and Support Services Department. Also included in the appointments are Mr. Ibrahim Hassan, who now heads the Development Finance Institutions Supervision Department, and Dr. Olubukola Akinniyi Akinwunmi, the new Director of Banking Supervision.

    These newly appointed directors join the existing leadership at the apex bank, which includes Mrs. Rashida Jumoke Mongonu (Bank Secretary and Director, Corporate Secretariat), Mr. Kofo Salam-Alada (Legal Adviser and Director, Legal), Mr. Muhammad Abba (Director, Human Resources), Dr. Blaise Ijebor (Director, Risk Management), Dr. Omolara Duke (Financial Markets), Aderinola Shonekan (Research), Mrs. Lydia Ifeanyichukwu Alfa (Internal Audit), Mr. Musa Itopa Jimoh (Payments System), and Mr. Musa Rabiu (Finance). While the CBN has yet to issue an official statement on the appointments, the process has been widely regarded within the institution as a step towards strengthening governance and operational efficiency, and also dispel insinuations that the management was planning to hire new directors from the outside – contrary to the CBN Act.

    Views from stakeholders

    President, Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka, said although the CBN is entitled to decide the best approach to appoint new directors, but it decided to entrench transparency in the process through the engagement of PwC. He said the best part of the appointment was that the new appointees all came within the bank, and are staff who are already part of the implementation of the bank’s strategy. He said: “The directors coming from inside the apex bank is a plus for the Cardoso-led CBN. They already know the CBN’s vision and plans. They will simply hit the ground running.”

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    Also, the CIBN recently commended the CBN for its current reforms in the banking sector, encouraging the public to continue their transactions and activities without hesitation. The Chief Executive of the CIBN, Mr. Akin Morakinyo, reassured the public of the safety and soundness of the banking system. “CIBN would like to reassure the general public that the Nigerian banks remain strong and resilient and that the CBN is committed to ensuring a stable financial system,” he noted.

    Speaking further, he stated that the institute would continue to support laudable initiatives of the CBN and other stakeholders for a virile economy. While noting that the CBN under the leadership of Cardoso has engaged in notable initiatives geared towards stabilising the monetary space, he also commended the apex bank for lifting the ban on 43 items that it had hitherto restricted access to forex from the CBN. It is also worth noting that the CBN had previously dissolved the management of several banks due to non-compliance with regulatory standards, corporate governance failures, violations of the terms under which their licenses were granted, and involvement in activities that threatened financial stability.

    The CBN dissolved the boards and management of Union Bank, Keystone Bank, and Polaris Bank. Consequent upon the dissolution of the boards and management of the above-mentioned banks, the apex bank swiftly appointed new executive officers for the affected banks and regulatory framework that can address the challenge of corruption and develop a policy framework that would harmonise available data to activate economic growth. Other members of the working group are the National Identity Management Commission (NIMC), the Federal Competition and Consumer Commission (FCCPC), the National Insurance Commission (NAICOM), the National Institute of Credit Administration (NICA), the Bank of Industry (BOI), and the Federal Inland Revenue Service (FIRS). 

    New strategy for efficiency, best practices

    Cardoso, during the unveiling at the CBN’s Strategy for 2024–2028, at the CBN Head Office, said that the vision of the Bank was to be a trusted and respected central bank promoting confidence in the economy, driven by five strategic themes to address the five focal areas that have been identified as the most critical to achieving the Bank’s objectives at this time. Highlighting the themes, the Governor said that the first thematic area – Price Stability and Monetary Policy Effectiveness, would guide the leveraging of established monetary policy instruments and rigorous data analysis to pursue the unwavering commitment to price stability.

    He said the second theme focuses on building a “Robust and Resilient Financial System” to deliver a resilient financial sector and ensure that financial inclusion objectives are an integral part of policy design to broaden access to financial products that promote sustainable economic growth. “Governance, Compliance and Advisory Partners to the Federal Government” was adopted as the third theme, stemming from the Bank’s commitment to being a transparent, reliable, and trusted advisor to the Federal Government.

    Speaking further, he stated that, conscious of the importance of the role of people, processes and technology in the attainment of the Bank’s objectives, two enabling themes: “Excellence in Central Banking Operations” and “An Impact-focused High-Performance Organisation” had been adopted as the fourth and fifth thematic areas, respectively. He listed “integrity, meritocracy, professionalism, accountability, courage, and tenacity” as the core values needed to guide the Bank’s actions toward ensuring professionalism, transparency, accountability, and unwavering commitment to the Nigerian people. While commending the Director, Strategy Management Department, and his team for coming up with the strategy, in-house, without external technical support, he urged every staff to take decisive actions to prioritise the principles of ethics, good governance, and transparency.

    He, therefore, called for collaboration from all stakeholders, noting that the strategy was not just for CBN, but belonged to every Nigerian, to build a prosperous Nigeria as well as ensure that the Bank becomes a respected and highly credible organisation. Members of staff of the apex bank said that the new strategy, which is the fourth in the history of the CBN, aspires to reposition the Bank to its core mandate and to be an institution at the forefront of economic transformation.

    They recalled that, over the years, the CBN had implemented three strategy cycles from 2012 to 2015, 2015 to 2019, and 2021 to 2024, all of which had their peculiar focus. They expressed his appreciation to the Bank’s management and the staff of the Strategy Management Department for their commitment and unwavering support to the development of the first in-house strategy within a short period. The highlight of the launch was the unveiling of the elements of the new strategy theme: “Repositioning for Impact.” Other stakeholders acknowledged that the new strategy resonates with the thematic model of repositioning the Mission, Vision, and Values of the CBN for greater impact. They lauded the management and all the staff in the Bank and across the branches for galvanising the Bank’s workforce for the engagement that brought the project to life, and for their unwavering backing, and reassured the support of everyone in executing the strategy.

    Other policy plans

     Earlier, Cardoso said the apex bank has intensified surveillance of market activities to ensure compliance and eliminate bad actors who attempt to undermine the system. “Together, we must build a market based on strong governance and transparency. As regulators, we will maintain a zero-tolerance approach to compliance violations.

    “Within the banking sector, I am pleased to note that 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 added.

  • Advancing policing through collaborative agenda

    Advancing policing through collaborative agenda

    Policing in Nigeria has long struggled with systemic challenges, from inadequate infrastructure to strained public trust. However, the introduction of the Strategic Policing Agenda through Transformative Partnerships (SpAat), led by Inspector General Kayode Egbetokun, marks a pivotal shift towards modernising the police force through local and international collaborations. Assistant News Editor PRECIOUS IGBONWELUNDU reports

    Policing in Nigeria has long been marred by systemic challenges that have hindered its effectiveness and public trust. For decades, the Nigeria Police Force (NPF) has grappled with inadequate infrastructure, underfunded training schools, and strained relations with the public. These issues not only affected the operational capacity of the Force but also contributed to a growing sense of disillusionment among the citizens it was meant to serve. Despite several attempts by successive leaderships to address these concerns, progress remained limited, as the resources available to the police were often insufficient to make a lasting impact. As Nigerians continued to criticise the Force for failing to meet its core responsibilities, it became clear that a new approach was needed—one that focused not just on internal reforms but also on collaboration with external partners who could bring in expertise, resources, and innovative solutions.

    This shift in approach came with the introduction of the Strategic Policing Agenda through Transformative Partnerships (SpAat) by the newly appointed Inspector General of Police (IGP), Kayode Egbetokun. His vision for a more modern, effective police force is centred on collaboration with local and international stakeholders, aimed at improving police training, operational efficiency, and fostering a people-centred approach to policing. Egbetokun’s strategy, which draws from his personal experience as a former Commandant of the Police Training School, has proven to be a game-changer. His focus on improving the infrastructure of police training schools and revising outdated curricula to better align with contemporary policing methods has set the stage for a new era in Nigeria’s law enforcement landscape.

    One of the most notable early successes of this new collaborative approach has been the partnership between the Nigerian government and international agencies, such as the German Government and the United Nations Development Programme (UNDP). Together, they have worked on upgrading key police training schools across the country, including the Police Training School in Ikeja and the Detective College in Enugu, transforming these once dilapidated facilities into state-of-the-art centres for learning. These upgrades have had far-reaching effects. The introduction of advanced training programmes—such as digital forensics, counterterrorism and crisis management—has enabled Nigerian police officers to equip themselves with the skills necessary to tackle modern-day security challenges. This shift toward professionalism and technology-driven policing is critical, particularly as Nigeria faces increasingly complex security threats.

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    Furthermore, the partnership with the German Government has extended beyond infrastructure. In an unprecedented move, mobile clinics have been donated to the Nigeria Police Force, providing essential healthcare services to officers and local communities, especially in remote areas. These clinics not only improve the well-being of personnel but also help foster a stronger bond of trust between the police and the public. International collaborations have also provided officers with opportunities to undergo specialized training abroad, further enhancing their ability to tackle emerging security threats. From learning advanced policing techniques to studying human rights enforcement and community engagement, Nigerian officers are now better equipped to navigate the complexities of modern law enforcement.

    These transformative initiatives represent more than just physical infrastructure or training programs—they signify a fundamental shift in how the Nigeria Police Force operates. Through these collaborations, the NPF is becoming a more modern, effective, and responsive force, one that is increasingly aligned with global best practices. Under IGP Egbetokun’s leadership, the Strategic Policing Agenda has marked the beginning of a new era for the Nigeria Police Force. Through international partnerships, modernisation of training facilities and a renewed focus on professional development, the Force is beginning to overcome the long-standing challenges that have plagued it for decades.

    Health and welfare improvements

    The health and welfare of police officers have long been overlooked, but under the leadership of IGP Egbetokun, significant strides are being made to ensure that the Nigeria Police Force (NPF) addresses the physical, mental, and emotional well-being of its personnel. Acknowledging the taxing nature of policing in a country as complex as Nigeria, where officers face significant challenges, IGP Egbetokun has prioritised improvements that will enhance officers’ health and overall morale. One of the standout initiatives is the deployment of mobile clinics to police formations across the country. These clinics are equipped to provide high-quality healthcare to police officers and their families, reducing absenteeism and boosting morale. This initiative addresses a major gap in healthcare access, ensuring that officers receive timely medical attention. By improving healthcare access, the NPF is not only safeguarding the physical well-being of its personnel but also demonstrating a commitment to the welfare of officers, which in turn helps reduce burnout and frustration.

    At the just-concluded Conference and Retreat for Senior Police Officers (CARSPO) 2025, IGP Egbetokun highlighted the importance of mental health in policing, an area often neglected in the past. “It is crucial that the mental health of our police operatives is prioritized,” he stated. The mental toll of policing in Nigeria, coupled with the stressors from internal issues such as housing and family challenges, has long been a silent crisis within the Force. With a heavy workload and a high-stress environment, the absence of mental health support can lead to dangerous outcomes, not only for the officers themselves but for the communities they serve.

    To address this, IGP Egbetokun is pushing for a robust mental health policy for the police, acknowledging that officers’ emotional and psychological needs must be met to prevent crises such as depression or burnout. During the retreat, specialists suggested the need for a comprehensive, evidence-based approach to mental health within the police force, starting with a country-wide research initiative to assess the mental health challenges faced by officers. The IGP has expressed strong support for this idea, signalling that the establishment of a national survey is a step towards creating a policy that truly addresses the mental health needs of the Force.

    Moreover, IGP Egbetokun emphasised that internal issues such as inadequate housing for police personnel were being actively addressed. Thanks to the continued support of President Bola Tinubu, efforts have been ramped up to ensure that officers have access to proper housing, which is a crucial element in reducing stress and improving overall job satisfaction. The IGP’s leadership in this area reflects his understanding of the importance of not only addressing immediate welfare concerns but also ensuring that officers have long-term stability and security.

    Another area of significant improvement is the Police Insurance and Welfare Scheme (NPWIS). Originally conceived in 1992 to provide welfare to police officers in case of retirement or unforeseen circumstances, the scheme had faced serious challenges, especially in the area of timely disbursement of benefits. For many years, the Pension Commission was the sole administrator of police pensions, leading to bureaucratic delays and resulting in retired officers and their families facing long waits to access their benefits. These delays led to frustration, protests, and growing discontent within the Force. Under IGP Egbetokun’s leadership, the process has been streamlined. Beneficiaries can now file claims from the comfort of their homes, and families of deceased officers have received timely benefits, a major improvement over previous practices. This change has made the entire welfare system more efficient and responsive to the needs of officers and their families, ensuring that they are not left vulnerable in times of crisis.

    In addition to health and insurance reforms, IGP Egbetokun has introduced strategic housing initiatives for police personnel. Through the first-ever Police Housing Summit convened under his leadership, a long-overdue focus on improving living conditions for officers has led to the reconstruction of dilapidated barracks and the development of new housing facilities across Nigeria. These initiatives are critical in ensuring that officers have safe, dignified living arrangements, which directly impact their effectiveness and satisfaction in their roles. As IGP Egbetokun stated, “To further enhance the welfare of our officers, we have initiated strategic housing schemes… leading to the reconstruction of dilapidated barracks and the development of new office and accommodation facilities across the country.

    “Our personnel, who work tirelessly to protect lives and property, deserve the best, and their welfare remains a top priority of this administration. Investment in human capital is also paramount. We have finalised plans for specialized training in forensic investigation, intelligence gathering, counter-terrorism, and cybercrime detection. These training programmes will be conducted in collaboration with both local and international stakeholders to ensure our officers are equipped with the requisite skills for modern law enforcement.”

    Through SpAat, a renewed focus on community outreach has led to a stronger bond between the police and the public. These initiatives have not only boosted trust but have also enhanced collaboration, which is critical for effective policing. The reinvigoration of these programs has fostered a sense of shared responsibility and improved relationships, paving the way for more positive interactions between officers and citizens. One significant example of the tangible effects of these reforms is the deployment of mobile clinics to rural areas, particularly in Northern Nigeria, where access to healthcare services has often been limited. These clinics have become an essential part of community support, serving both police officers and civilians alike. In one instance, a mobile clinic saved the life of an officer’s child suffering from malaria. This powerful example highlights the importance of these mobile clinics in providing crucial medical care to those who might otherwise go without, reinforcing the symbiotic relationship between the police force and the communities they serve.

    Furthermore, the return of officers who received specialised training in Germany has proven to be a game-changer. They implemented new crowd management techniques during protests in Lagos, which helped to reduce violence and ensure that demonstrations were peaceful. This is just one instance of how international partnerships are directly contributing to the enhancement of policing strategies and helping ensure that police actions align with global best practices. It highlights the police force’s commitment to ensuring public safety, while respecting citizens’ rights to peaceful assembly.

    In a side interview at the Conference and Retreat for Senior Police Officers (CARSPO), Deputy Inspector General (DIG) Frank Mba, who is in charge of Training and Development, elaborated on some of the reforms initiated and emphasised how they directly benefit the Nigerian public. He explained that many of the policies currently being implemented are a direct result of the valuable insights gained from past conferences. Mba pointed to the Police Social Media Policy as one of the earliest successful outcomes from previous conferences, aimed at improving the police force’s communication and engagement with the public. Similarly, the establishment of the Police Radio in Abuja and the creation of the Nigerian Institute of Police Studies were pivotal decisions made at these retreats that have contributed to the modernisation and professionalisation of the police force.

  • Adamawa celebrates a harvest of new chiefdoms, emirates

    Adamawa celebrates a harvest of new chiefdoms, emirates

    In a landmark move to foster equity and local governance, Governor Ahmadu Fintiri of Adamawa State established five new chiefdoms and two emirates. Between February 5 and 20, he officiated the coronation of the newly appointed rulers, presenting them with the staff of office. This step, aimed at enhancing traditional leadership and promoting unity, marks a significant moment in the state’s history, bringing renewed hope and self-determination to these communities, ONIMISI ALAO reports.

    To promote equity and fairness among the people of Adamawa State, Governor Ahmadu Fintiri established five new chiefdoms and two emirates. Between Wednesday February 5 and Thursday February 20, he officiated the inauguration ceremonies for these chiefdoms and emirates, formally presenting the staff of office to the paramount rulers of each.

    On February 19, Governor Fintiri crowned Dr. Ali Damburam as the Ptil of Madagali, making him the king of the newly established Madagali Chiefdom. The following day, February 20, he crowned Prof Bulus Luka Gadiga as the Mbeke Ka Michika. These two chiefdoms, along with Madagali and Michika, were part of the five chiefdoms and two emirates created under a bill passed by the Adamawa State House of Assembly and signed into law by Governor Fintiri at the end of 2024. In addition to Madagali and Michika, the new chiefdoms are in Hong, Gombi and Yungur (Song), while the two new emirates are Fufore and Maiha. The appointments of the new rulers were announced on January 3, 2024, and the dates for their coronations were subsequently set.

    The coronation ceremonies for the newly created chiefdoms and emirates began on February 5, 2025, in Fufore and concluded in Michika on February 20. On February 5, at the Atiku Abubakar Stadium in Fufore, Governor Fintiri presented the staff of office to Alhaji Sani Ribadu, the first Emir of Fufore. In his address, Fintiri emphasised his administration’s commitment to strengthening traditional institutions, fostering unity, and ensuring effective governance at the grassroots level. He highlighted that the creation of new emirates and chiefdoms was designed to resolve conflicts, promote arbitration, and bring justice closer to the people. “We are embarking on a journey that will bind our people together and create the right reach for governance in areas where it has been seemingly difficult to reach,” the governor said.

    Governor Fintiri underscored the importance of the newly enacted Adamawa State Chiefs (Appointment and Deposition) Law 2024, which laid the foundation for the creation of the new traditional institutions. He explained that the law aims to reposition these institutions for greater effectiveness, ensuring they play a more impactful role in governance and community development.

    On February 6, a significant ceremony took place in Dumne, Song Local Government Area, where Johnson Diyo Matalo was crowned as the Gubo Yungur. This event symbolised the restoration of the Yungur Kingdom, a long-awaited event that many described as the end of decades of subjugation. During the ceremony, Fintiri reiterated his administration’s commitment to all-inclusive governance, stating that the restoration of Yungur, along with the establishment of other new chiefdoms and emirates, was a step toward addressing historical imbalances and promoting unity across the state. “There was no justification for the Yungur people to be subjected to the traditional rule of anyone else. I am glad to have rectified this anomaly,” Fintiri stated. The newly crowned Gubo Yungur, Johnson Diyo Matalo, pledged to lead his people with humility and a strong commitment to the law, promising to be a ruler who serves his community with integrity.

    On February 8, Governor Fintiri, accompanied by his retinue, visited Gombi for the coronation of Aggreh Ali as the new Kumu Gombi. During the ceremony, the governor urged the newly appointed paramount ruler to leverage his extensive administrative experience in leading his people, particularly in matters concerning peace and security, which remain critical to the region’s stability. On February 13, Alhaji Ahmadu Saibaru was inaugurated as the first Emir of Maiha. In his address to the people of Maiha, Governor Fintiri congratulated them on this historic occasion and urged them to view their cultural diversity as a source of strength, not division, emphasising the importance of unity in building a prosperous future for the community.

    Addressing the Emir, Fintiri said: “You must carry everyone along; whether they are Njanyi, Bata, Fulani, Kanuri, Holma and so on; and you must not discriminate on the basis of religion.”

    On February 14, the coronation train moved to Hong, the headquarters of the Huba Chiefdom, where Governor Fintiri presented the staff of office to Alheri Bulus Nyako as the newly appointed Tol Huba of Hong. This ceremony marked the restoration of the Huba Kingdom’s long-lost status. Nyako reflected on the struggles that had spanned over a century, leading to the restoration of the Huba Chiefdom, and pledged to lead with fairness and accountability throughout his reign.

    On February 19, Governor Fintiri crowned Dr. Ali Danburam as the Ptil Madagali during a ceremony in Gulak, the administrative seat of the Madagali Chiefdom, solidifying the paramount ruler’s position. The coronation series concluded on February 20 in Michika, where a grand ceremony saw Prof Bulus Luka Gadiga crowned as the Mbeke Ka Michika. During this dazzling event, the governor officially handed over the staff of office, marking the culmination of a historic series of traditional rulings across the state.

    In the final, yet undoubtedly significant, coronation of the series, Governor Fintiri urged the people of Michika to harness their remarkable wealth, sound education, and diverse talents as invaluable assets in driving the development of their chiefdom. Acknowledging the historical significance of the Kamwe people, Fintiri expressed deep appreciation for their longstanding contributions to commerce and governance. He also praised their industrious spirit and their notable achievements across various fields. In his address, the newly crowned Mbeke Ka Michika, Prof Bulus Luka Gadiga, assured his people of his unwavering commitment to advancing progress in key areas such as education, agriculture, and economic growth, with a focus on bringing positive change to the community.

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    The rain of long desired chiefdoms, emirates

    The long-awaited creation of new chiefdoms and emirates in Adamawa State has been met with widespread celebrations across the affected local government areas, from Fufore to Yungur (Dumne in Song LGA), Gombi, Maiha, Hong, Madagali, and Michika. For the people of these regions, the establishment of new traditional institutions has brought the long-sought self-determination and local governance they had been yearning for.

    For many of these communities, the new traditional leadership is seen as truly indigenous, giving them a sense of pride and belonging. It marks a significant shift after several decades without any expansion in the number of paramount traditional institutions in the state. The last major change to the traditional structure occurred in 2004 when Governor Boni Haruna elevated several local leaders, including the Hama Bachama, Gangwari Ganye, Emir of Mubi, Amna Shelleng, Murum Mbula, and Kwandi Nunguraya, to first-class kings. One clear example of the positive impact of this new order is seen in the Hong Chiefdom, where the Huba (Hong) stool, once abandoned, has now been revived after a long struggle. The revival of this long-lost chiefdom has brought immense joy and gratitude to the people of Hong, demonstrating the transformative power of the new traditional institutions in the region.

    On February 12, just two days before the installation of their newly appointed paramount ruler, prominent sons and daughters of Hong gathered in Yola, the state capital, to address the press. The briefing, held at the NUJ Press Centre, was an opportunity for the people of Hong to express their joy and pride in the restoration of their cherished traditional leadership, now under the leadership of Töl Alheri Bulus Nyako, the new ruler of the Huba Chiefdom. Speaking on behalf of the community, Dr. Idi Hong, a former Minister of Foreign Affairs, highlighted the historical significance of the event. He reminded the press that the Huba Chiefdom had been reduced by colonial powers to a mere shadow of its former self, placed under the jurisdiction of an ‘ungraded district head’ and subjected to the authority of the Adamawa Emirate. Despite multiple attempts to restore the chiefdom—most notably in 1906, 1986, and 1988—none of these approvals had been implemented, leaving the people of Hong without their rightful traditional leadership for many years. Dr. Hong’s address reflected the immense satisfaction and gratitude of the people of Hong, who were finally witnessing the long-awaited revival of their ancestral governance.

    “Attempts to revive the Huba monarchy faced intimidation and resistance,” he lamented. Continuing, Idi Hong said the breakthrough for the Hong people came in December 2024 when Governor Fintiri signed the bill creating the Huba Chiefdom alongside six others. “This decision brought an end to a long-standing struggle for independence and self-determination,” he added.

    Disquiet in legacy emirates

    While the people of the newly created chiefdoms and emirates celebrate what they describe as newfound freedom, there is a quiet sense of loss among the legacy emirates from which these new territories have been carved. The Adamawa and Mubi Emirate, two of the largest and historically significant emirates, have been most affected by the creation of the new chiefdoms and emirates.

    Before the law establishing the new territories was signed by Governor Fintiri, the Adamawa Emirate covered a vast expanse, including the local government areas of Hong, Song, Gombi, Fufore, Girei, Yola North, Yola South, and Mayo-Belwa. However, with the new law, significant portions of this territory were taken out to form new chiefdoms and emirates. Hong, the Dumne axis of Song, all of Gombi, and Fufore are now part of the new administrative units, leaving the Adamawa Emirate with only Yola South, Yola North, Girei, and Mayo-Belwa.

    Similarly, the creation of new territories has also greatly reduced the influence of the Mubi Emirate. Previously, the Mubi Emirate encompassed Mubi South, Mubi North, Maiha, Michika, and Madagali. After the recent changes, Mubi Emirate now only governs Mubi South and Mubi North, losing control over Maiha, Michika, and Madagali. While the new arrangements have been welcomed by the people of the newly created chiefdoms and emirates, the legacy emirates have seen their reach and influence significantly diminished, marking a period of adjustment and, for some, quiet grief over the loss of territory and authority.

    Among the two affected emirates, the Adamawa Emirate has seen the most vocal opposition to the reduction of its influence. Dr. Umar Ardo, a prominent politician and the Adamawa State Social Democratic Party (SDP) governorship candidate in the 2023 election, has been one of the most outspoken critics of the new arrangement. In an article, Ardo argued that the new order could lead to societal discord, suggesting that it is fraught with historical inaccuracies, ethnic biases, and religious divides. He expressed concern that the way the new chiefdoms and emirates were created could fuel tensions among the various communities, undermining the state’s unity and social harmony.

    “First, the decision to sever historically significant domains such as Gurin and Ribadu from Yola and place them under Fufore is a glaring historical anomaly,” Ardo asserted, adding that the identified locations were integral to the cultural and political identity of the Adamawa Emirate. He also said that while the creation of new chiefdoms and emirates might seem like a step towards cultural recognition, the decision to classify them as 2nd Class and 3rd Class entities is a halfhearted act that reveals a lack of genuine commitment to their empowerment.

    “The communities that advocated these chiefdoms did so with the expectation of equal status with existing first-class chiefdoms, yet they have been relegated to subordinate positions,” he said.

    He said: “In a state that harbours 79 distinct ethnic groups, the new situation will only highlight the sensitivities and fears of other ethnic minorities who have been effectively excluded from and marginalised by the new status quo ante.”

    Ardo, writing in his capacity as the convener of the League for Northern Democrats (LND), strongly disagrees with the perspective of the Gongola People’s Forum (GPF), which has praised the creation of new chiefdoms and emirates as a means of fostering unity in Adamawa State. Ardo contends that this view is fundamentally flawed, arguing that the new administrative units have already introduced divisions rather than unity. In his critique, Ardo pointed out that the creation of new chiefdoms and emirates, without addressing deeper issues of ethnic and religious discord, will only worsen existing divisions. He emphasized that creating administrative boundaries alone cannot resolve underlying societal tensions. “Creating new administrative entities without addressing the underlying issues of ethnic and religious discord only exacerbates existing divisions,” Ardo asserted.

    Furthermore, Ardo rejected the GPF’s praise for Governor Fintiri as a “fearless leader” and “emancipator,” arguing that such accolades are misplaced. He explained that true visionary leadership is demonstrated through strategic policies that address the state’s core challenges, such as poverty, unemployment, and insecurity, rather than through symbolic or politically motivated changes to traditional leadership structures.

    In contrast to the critics, the beneficiaries of the newly created chiefdoms and emirates, including the new chiefs and emirs, have been effusive in their praise of Governor Fintiri for granting them a renewed sense of freedom and self-determination. The Gubo of Yungur, Johnson Matalo, expressed his gratitude, stating: “The creation of the seven chiefdoms and emirates is a testament to our governor’s commitment to peace, unity, and development across Adamawa State. We appreciate this historic step, which has given our people a stronger voice and a clear identity.” Matalo’s statement reflects the sentiments of many who view the establishment of these new territories as a positive and transformative move, providing them with greater autonomy and influence in the state’s governance.

    At the end of the coronation exercise that he supervised in Michika, Fintiri said: “We recognise that a thriving society is built on a strong foundation of opportunity and wellbeing for all citizens. My administration is resolute in its determination to achieve success, and we will not be deterred by the voices of critics whose primary past-time seems to be sewing the seed of disaffection in our communities.”

    Meet Adamawa’s new and old chiefdoms, emirates

    The recent creation of new chiefdoms and emirates in Adamawa State has introduced a new layer of traditional leadership across the region. These new territories vary in status, with the Fufore Emirate holding second-class status and its headquarters in Fufore, while the Maiha Emirate is a third-class emirate with its headquarters in Maiha. The newly established Hoba (Hong) Chiefdom, with its headquarters in Hong, and the Madagali Chiefdom, based in Gulak, both hold second-class status, as does the Michika Chiefdom, which has its headquarters in Michika. The Gombi Chiefdom, located in Gombi town, and the Yungur (Dumne) Chiefdom, with its headquarters at Dumne, are both designated as third-class chiefdoms.

    On the other hand, the older, established emirates and chiefdoms in Adamawa, including the Adamawa Emirate, retain first-class status. The paramount ruler of Adamawa Emirate, the Lamido Adamawa, Alhaji Muhammadu Barkindo Musdafa, continues to be a central figure in the state’s traditional leadership. He also serves as the Chairman of the State Council of Chiefs, a position recognised by the law that created the new chiefdoms and emirates. These older institutions, with their first-class status, maintain a significant influence in the state’s governance, while the new chiefdoms and emirates represent a shift toward decentralizing power and giving local communities a more direct role in leadership.

    Mubi Emirate, a significant economic hub, encompasses Mubi South and Mubi North councils, forming the commercial nerve center of the region. Ganye Emirate includes the councils of Ganye, Jada, and Toungo, while Bachama Kingdom spans the Numan and Lamurde councils. In addition, the Amna Shelleng is located in Shelleng Local Government Area, representing another key traditional authority in the state. The Kwandi Nguraya Kingdom, predominantly of the Lunguda people, is primarily located in Guyuk Local Government Area, with its palace in Guyuk town. Demsa Local Government Area stands out with two paramount rulers: the Hama Bata, whose palace is in Demsa town, and the Murum Mbula, whose headquarters is in the Borrong axis of Demsa. This unique dual leadership structure adds to the rich cultural and traditional diversity of the region.

  • Nigeria’s push to lead Africa’s $180b digital trade revolution

    Nigeria’s push to lead Africa’s $180b digital trade revolution

    From a continent of long reputed potential, Africa is transforming to a continent buzzing with economic prosperity. Her digital economy is projected to reach $180 billion in 2025, thus, contributing significantly to her Gross Domestic Product (GDP), creating new job opportunities, and expanding regional trade. But, Nigeria—Africa’s largest economy—is poised to lead this evolving digital trade revolution, encouraged by her sheer market size, entrepreneurial drive and rapidly expanding digital infrastructure. Assistant Editor CHIKODI OKEREOCHA looks at some of the strategic actions taken by the President Bola Tinubu administration to solidify Nigeria’s position as Africa’s digital trade leader.

    The landscape of Africa’s digital trade and trade in services has witnessed significant growth in recent years, drawing sufficient strength from the African Continental Free Trade Area (AfCFTA) Agreement and its Protocols, particularly the Protocol on Digital Trade, the first of its kind in the world, and the Protocol on Trade in Services.

    Digital trade and trade in services, which are widely acknowledged as game-changers and key drivers of Africa’s economic transformation, are already helping to diversify economies, increase competitiveness, and improve productivity.

    This is hardly surprising, considering that the Continent’s digital economy is projected by the United Nations Conference on Trade and Development (UNCTAD) to reach $180 billion in 2025, up from $115 billion in 2020; thus, contributing significantly to Gross Domestic Product (GDP), creating new jobs, and expanding regional trade.

    For instance, while the World Bank estimates that digital technologies can create over 10 million new jobs in Africa by 2025, primarily in the services sector, the AfCFTA is expected to increase intra-African trade to 50 per cent by 2030, with digital trade as key driver.

    Adopted by the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) in Addis Ababa, Ethiopia, in January 2012, the AfCFTA is arguably, the most ambitious and strategic push to build an integrated, diversified and industrialised continent capable of holding its own in the global economy.

    With its promise of creating a continental trade bloc of 1.3 billion people across Africa, with a combined GDP of about $3.4 trillion, the AfCFTA, which implementation kicked off on January 1, 2021, is easily the world’s largest trade agreement since the creation of the World Trade Organisation (WTO) in 1994.

    However, the AfCFTA Agreement and its Protocols on Digital Trade and Trade in Services present new hope that captures Africa’s audacious step in driving accelerated trade across borders using home-grown Africa-focused tools and solutions. But the AfCFTA Protocol on Digital Trade is particularly ground-breaking.

    The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole explained that it is the first ever continental digital framework and it covers modern technology, new economic opportunities, data protection and cross-border digital connectivity in an innovative manner, different from the traditional protocols.

    The minister, in a statement, which was made available to The Nation, said Nigeria is currently solidifying its position as Africa’s digital trade leader, by working towards the ratification of the Protocol on Digital Trade to the AfCFTA Agreement.

    She said beyond this, the Federal Government under President Tinubu’s administration is also working to strengthen policy harmonization by aligning national regulations with AfCFTA frameworks.

    Nigeria, Dr Oduwole added, is also enhancing trade facilitation through digital customs processes and e-commerce policies, and expanding digital infrastructure by increasing broadband penetration and fostering public-private investments in connectivity.

    The minister noted that with over 109 million internet users and a thriving mobile economy, Nigeria has the foundation to lead Africa’s digital commerce evolution. She described the country’s approach to digital trade facilitation as decisive.

    Dr. Oduwole, however, said expanding broadband access, modernising Customs procedures for e-commerce, and ensuring interoperability of payment systems will be essential for driving inclusive growth.

    She added that by deepening engagement with regional trade frameworks and harmonising digital regulations, Nigeria is positioning itself as a continental hub for digital services exports, facilitating cross border transactions, fostering innovation and attracting global investment.

    Seizing the opportunities in services sector

    With services sector contributing over 50 per cent to GDP, Nigeria is already a regional leader in Financial Technology (Fintech), creative industries, professional services, and digital platforms.

    For instance, Nigeria’s fintech industry, which is home to five of Africa’s nine unicorns, including Flutterwave, Interswitch, Moniepoint, and OPay, has driven cross-border payments, mobile money adoption, and financial inclusion, powering digital transactions across the continent.

    Indeed, fintech is one of Africa’s strongest services-driven industries, with the market projected to reach $3.3 billion by 2025. The growth of fintech in Africa is driven by the increasing adoption of mobile payments, online banking, and other digital financial services.

    Companies such as Chipper Cash, valued at over $2 billion, OPay, valued at over $2 billion, and Flutterwave valued at $1 billion, are leading examples of this growth, providing innovative payment solutions and financial services to millions of users across the continent.

    Similarly, the creative economy, which is home to Nollywood, Afrobeats, a growing gaming industry and digital content exports, highlights the strength of Nigeria’s creative talents. The creative economy also demonstrates first-hand how digital platforms can turn cultural assets into globally exportable services, shaping and redefining pre-conceived perceptions about the continent.

    Information Technology (IT) outsourcing firms are also expanding into new markets, strengthening Nigeria’s position in Africa’s knowledge economy. Initiatives such as the Ministry of Industry, Trade and Investment’s National Talent Export Programme (NATEP) launched in September 2023, and the Outsource to Nigeria Initiative (OTNI) backed by the Office of the Vice President are enabling this growth.

    The Three Million Technology Talents Program (3MTT) of the Ministry of Communications, Innovation and Digital Economy is also enabling this growth and opening up opportunities for access to high quality Nigerian talent at a global scale.

    The 3MTT programme, according to the Minister of Communications and Digital Economy, Bosun Tijani is a critical part of the Renewed Hope Agenda, and is aimed at building Nigeria’s technical talent backbone to power her digital economy and position Nigeria as a net talent exporter.

    Launched in 2022, the 3MTT initiative aims to produce three million technically proficient individuals over four years in fields such as Artificial Intelligence (AI), data science, cybersecurity, cloud computing, and other emerging technologies.

    In professional services, Nigerian legal, consulting, and accounting services, as well as the rise of e-health and e-learning solutions further underscores the country’s role in providing technology-driven services that address continental gaps in healthcare and education.

    The creative economy and e-commerce are significant services-driven industries in Africa, with the continent’s music industry alone expected to generate $1.3 billion in revenue by 2025, driven by increasing demand for African music, film, and other creative content.

    Africa’s e-commerce market is growing rapidly, and is projected to reach $75 billion by 2025, according to multinational strategy and management consulting firm McKinsey. Companies such as Jumia, valued at over $1 billion, are tapping into this growth, offering music and video streaming services, as well as a wide range of products, including electronics, fashion, and home goods.

    Other leading e-commerce players in Africa include Konga.com, valued at over $200 million and PayPorte valued at over $100 million, according to Forbes 2024 report.

    Digital finance, e-health and e-learning are also growing rapidly in Africa, driven by the increasing adoption of digital technologies and the need for innovative solutions to address the Continent’s development challenges.

    Companies such as Andela, valued at $1.5 billion, which provides remote work opportunities for African software developers and Esusu, valued at $1 billion, which offers credit building services for tenants, are examples of this growth.

    Furthermore, the rise of African unicorns such as Interswitch, valued at over $1 billion, Wave, valued at over $1.7 billion, and MNT-Halan, valued at over $1 billion, demonstrates the continent’s potential for creating successful and scalable businesses in services-driven industries.

    In all of these, Nigeria has never wavered in her resolve to lead the charge in Africa’s $180 billion digital trade revolution, propelled by the AfCFTA Protocol on Digital Trade and the Protocol on Trade in Services. The country has taken steps to reinforce her leadership in innovation is digital public infrastructure, for instance.

    One of the steps was the introduction of the Contactless Passport Application System (CONPAS) by the Nigeria Immigration Service (NIS), streamlining passport processing for citizens and enhancing ease of travel, in line with President Tinubu’s Renewed Hope Agenda.

    According to the Minister of Interior, Olubunmi Tunji-Ojo, the initiative showed the Federal Government’s dedication to allowing passport renewals to be conducted without physical presence, cutting down processing times significantly.

    While noting that it also reinforces modernisation as Nigeria embraces technology to meet the contemporary needs of her citizens, Tunji-Ojo, added that the initiative is in line with the administration’s pledge to digital transformation of the country as Nigeria races towards achieving the $1 trillion-dollar economy ambition.

    The Nation learnt that this initiative, alongside other digital trade advancements, including investments in port modernisation and the on-going implementation of its National Single Window Project are streamlining trade corridors and reducing Customs clearance times.

    These reforms enhance Nigeria’s role in handling a major share of West Africa’s cargo and passenger traffic, and reflects the current administration’s broader commitment to harnessing technology for efficiency and transparency through ease of doing business.

    Dr Oduwole emphasised that with Nigeria’s sheer market size, entrepreneurial drive, and rapidly expanding digital infrastructure, she has all the right ingredients to be at the forefront of Africa’s transformation.

    “The country has made significant progress in liberalising key AfCFTA priority sectors—agribusiness, pharmaceuticals, transport and logistics and automotives—aligning with regional trade integration efforts,” she stated, pointing out, for instance, that with agriculture contributing over 23 per cent to GDP, Nigeria is expanding agro-processing and export capacity to enhance competitiveness and access to global markets.

    The pharmaceutical sector, forecast by the Goldstein Market Intelligence to grow at a Compound Annual Growth Rate (CAGR) of 9.1 per cent from 2017 to 2030, is also strengthening local production to reduce dependence on imports and improving health security.

    Similarly, Nigeria’s automotive industry is also advancing rapidly, fueled by government-led projects promoting Compressed Natural Gas (CNG) and electric vehicles (EVs). This followed President Tinubu’s September 2023 launch of the Presidential Compressed Natural Gas Initiative (PCNGI), with a target to convert one million vehicles to CNG by 2027.

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    The essence of the Initiative is to reduce the country’s reliance on petrol. And reinforcing its commitment to clean energy, the government has also supported locally produced Electric Vehicles (EVs) by leading indigenous manufacturers such as Innoson Vehicle Manufacturing (IVM) and JET Motor Company, marking a bold step toward sustainable mobility and industrial expansion.

    That’s not all. Nigeria is also strengthening local vehicle production and industrial growth under the National Automotive Industry Development Plan (NAIDP), as indigenous companies like IVM lead the charge by manufacturing vehicles with 70 per cent locally sourced parts, bolstering domestic manufacturing capabilities.

    Despite these significant milestones, Dr. Oduwole said given the evolving digital space, there is a sense of urgency for Nigeria and Africa in general to keep ahead of the curve and work collaboratively to strengthen the digital trade potential across the continent.

    According to her, the sad reality is that some African countries are still at the start-line of this digital race, even as the rest of the world is already adapting to various levels of Artificial Intelligence (AI).

    “There is, therefore, an imperative for the on-going 38th Ordinary Session of the African Union Assembly of the Heads of State and Government to establish a coordinated framework for championing the entrenchment and advancement of digital trade under the AfCFTA and supporting member states to strengthen their capacities to embrace and expand digital trade across the continent,” the minister stated.

    President Tinubu was in Addis Ababa, the Ethiopian capital, where he participated in the 38th Ordinary Session of the Assembly of the African Union Heads of State and Government which held from February 14 to 18, 2025.

    Dr. Oduwole said the designation of a Continental Champion for the implementation of the Protocol on Digital Trade, at the Session, will go a long way in advocating for and ensuring support for African States and the private sector for increased digital trade.

    “The vision and promise that the Protocol on Digital Trade holds can only be realised through coordinated multi-stakeholder collaboration. To that end, my call to action for Governments is the prioritisation of ratification and domestication of the Protocol as well as alignment of legal frameworks to support digital trade,” she stated.

    The hurdles

    Despite the significant growth potential of Africa’s digital economy and trade in services, several challenges have hindered their development. For instance, regulatory fragmentation and inconsistent standards across borders are major obstacles, making it difficult for digital service providers to operate seamlessly across different countries.

    Also, limited access to financing for digital service providers, lack of digital inclusion, infrastructure and connectivity deficits, and a digital skills gap contribute to the challenges facing digital trade and trade in services in Africa.

    Furthermore, cyber security concerns, including increasing threats and data breaches compromise the integrity of digital trade transactions and erode trust in digital services.

    However, the AfCFTA is not folding its arms. It is currently harmonizing regulations and standards across the continent and facilitating the growth of digital trade. Moreover, initiatives such as Afreximbank’s Pan-African Payment and Settlement System, the AfDB’s Digital Africa initiative and the World Bank’s Digital Economy for Africa initiative are working to improve digital infrastructure, enhance digital skills, and promote digital inclusion.

    Additionally, cyber-security measures, such as the African Union’s Cyber-security Convention, are being implemented to protect digital trade transactions and build trust in digital services.

    Dr. Oduwole, however, stressed the need for African States to prioritise the ratification and domestication of the Protocol on Digital Trade after the adoption of its eight annexes at the 38th Ordinary Session of the Summit of the Heads of State and Government.

    Beyond that, she said decisive steps must be taken to ensure vertical regulatory and statutory alignment as well as harmonization at the national and regional levels. According to her, “This ameliorates the frustrations in dealing with the ‘spaghetti bowl’ of fragmented frameworks from country to country.”

    Closely related is the establishment of horizontal coherence between the national strategies and the AfCFTA Protocol on Digital Trade to essentially ensure that government initiatives are drawn from the same proverbial hymnbook as the strategies for implementing the Protocol.

    This, according to the minister, will include paying deliberate attention to initiatives that advance the provision of public digital infrastructure, development of tools for a digital marketplace, digital inclusion for MSMEs and other underrepresented groups, as well as providing the enabling environment for digital innovation to thrive.

    As with other key aspects of the AfCFTA multi-faceted mandate, Dr. Oduwole said there is need for multi-stakeholder collaboration in the implementation of both the Protocols on Digital Trade and Trade in Services.

    “This entails leveraging strategic partnerships including with the private sector, the AfCFTA Secretariat, regional organisations, development partners, Development Finance Institutions (DFIs) and other transformational alliances,” she said.

    The minister pointed out that honing these high impact collaborations will help with mobilization of resources, policy harmonisation and access to finance in addition to enhancing e-commerce/digital trade platforms and generally make cross-border trade more efficient.

    She also said capacity building is a critical requirement, given the fast evolving and changing dynamics of the digital trade and trade in services ecosystem. She said trained negotiators and regulatory bodies are required to design and implement AfCFTA-aligned policies as well as harmonize trade standards and support efficient customs procedures.

    In the same vein, awareness creation among African businesses, (as well as investors globally), sensitizing them about the benefits of the AfCFTA Protocols on Digital Trade and Trade in Services, will enhance their capacity to leverage opportunities in those sectors.

    “Scaling digital skills programmes to equip African youth for high-demand service job, strengthening innovation ecosystems to enhance service sector competitiveness and expanding regional digital marketplaces for seamless trade in services, are a few examples of what is possible when capacity building is embraced,” Dr. Oduwole stated.

    While admitting that the road ahead demands deliberate action, the Minister, however, said it requires bold, forward-looking strategies that bridge gaps and transform challenges into opportunities.

    While insisting that Nigeria has the digital momentum to lead Africa’s digital trade revolution, the minister, however, said leadership is not just about potential—it is about deliberate, strategic action.

    “By aligning policy, infrastructure, and collaboration efforts, Nigeria can move from being a key player to become the undisputed digital trade leader of and for Africa,” she emphasised.

  • LASAMBUS: Overcoming limitations to fulfil life-saving mission

    LASAMBUS: Overcoming limitations to fulfil life-saving mission

    When an accident happens on any of the chaotic roads in Lagos, every second counts. But for many residents, getting emergency medical help can feel like a gamble. While there are lifesaving interventions by the Lagos State Ambulance Service (LASAMBUS), others share frustrating stories of delayed calls. Is LASAMBUS still delivering on its mission? CHINYERE OKOROAFOR reports on its successes, struggles and the urgent need for a stronger emergency response system in the state.

    On a humid evening in Lagos, Adeolu Alade was driving home from work when he witnessed a horrific accident along the Oshodi-Apapa Expressway. A commercial bus had rammed into a stationary truck, leaving passengers trapped and bleeding.

    In a panic, Adeolu dialed 112, the Lagos emergency line, hoping for a swift response from the Lagos State Ambulance Service (LASAMBUS).

    “I kept hearing music playing while waiting for an operator,” he recalled. “Minutes felt like hours before someone finally picked up.” By the time an ambulance arrived, bystanders had already driven some victims to a nearby hospital on motorcycles. Others were left helpless, waiting for medical attention that came somewhat late.

    Role of emergency medical services in a fast-growing Lagos

     Lagos, Nigeria’s economic hub is one of the fastest-growing cities in Africa, with a population exceeding 20 million people and increasing daily due to urban migration.

    The city’s rapid expansion has led to higher traffic congestion, increased road accidents and a greater demand for emergency medical services (EMS).

    According to data from the Federal Road Safety Corps (FRSC), Lagos records thousands of road traffic accidents annually, with many victims requiring urgent medical attention.

    To address this growing need, LASAMBUS was established in 2001 to provide free emergency medical response across the state.

    The service was designed to ensure that accident victims and critically ill patients receive immediate care before reaching a hospital, significantly improving survival rates.

    Studies show that victims of Road Traffic Accidents (RTAs) without pre-hospital care are 5.5 times more likely to die than those who receive swift medical intervention.

    However, LASAMBUS has faced several challenges over the years, including delays due to traffic congestion, poor road access and prank calls.

    A major setback occurred during the #EndSARS protests in 2020, when several ambulance points were vandalised, disrupting emergency response operations. Although the five locations such as the Tollgate and the Third Mainland Bridge, among others, have been restored with new ambulance vehicles, there are concerns over the visibility, response time and efficiency of LASAMBUS. Residents say they no longer see the emergency vehicles stationed at their usual locations.

    Many worry that the service may not be fulfilling its purpose

    One commuter who passes through Lagos Tollgate daily noted that he had not seen an ambulance there for a while.

    According to the commuter, if the emergency toll line doesn’t connect, it would be helpful to have someone available at the designated ambulance points to report emergencies in person.

    Recalling an incident, he explained that while driving from Mowe to Maryland, he witnessed an accident near Isheri and repeatedly tried calling the emergency toll line but couldn’t get through.

    Since he was heading toward the toll gate, he assumed he would find someone there to report the accident.

    However, when he arrived, he saw no ambulance personnel—only two LASTMA officials. He reported the situation to them and continued his journey.

    Data from a study titled “Lagos State Ambulance Service: A Performance Evaluation” highlighted these mixed realities.

    Between December 2017 and May 2018, LASAMBUS received 1,352 road traffic accident (RTA) calls, but only 37.1% were attended to. Factors such as traffic congestion (60%), poor access (17.8%) and prank calls contributed to delays.

    When The Nation visited five key ambulance points—Lagos Tollgate (Lagos-Ibadan Expressway), Mile 12 (Kosofe LGA), Third Mainland Bridge, Anthony (along Oshodi-Oke Expressway), and Mobil (Lekki-Epe Expressway in Eti-Osa LGA)—there was no ambulance in sight.

    However, Lagos State Traffic Management Authority (LASTMA) officials at these locations confirmed that LASAMBUS is still active.

    One official at the Lagos Tollgate explained that the ambulance had just left to respond to an emergency.

    Similarly, a female officer at the Anthony point confirmed that the ambulance had been dispatched to Oshodi for an emergency and was later called to handle an accident in Bariga.

    The officer emphasised that while ambulances may not always be parked at designated spots, they are constantly on the move responding to distress calls.

    Some residents also complained about delays when calling emergency numbers 767 or 112, saying the lines play music for a long time before a call centre agent responds.

    As the city continues to grow, experts argue that more ambulances, better coordination, and increased public awareness are essential to strengthening emergency response systems in Lagos.

    A public health specialist, Dr. Ifeoma Onyeoma explained that having more ambulances will reduce delays, especially in a busy city such as Lagos.

    She also stressed the importance of a well-organised system where emergency teams can communicate quickly and reach accident scenes faster.

    “Many people don’t know how to call for help during emergencies. Public awareness campaigns will help residents understand how to contact LASAMBUS and what to do while waiting for help,” she said.

    Despite these challenges, the Director of Lagos State Ambulance Service (LASAMBUS), Mrs. Beatrice Makinde insists that LASAMBUS remains fully operational, ensuring swift medical assistance across the state.

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    In a chat with The Nation, Makinde explained that the ambulances are always on the move, responding to emergency calls.

    She said this is why people may not often see them parked at their usual spots.

    “We receive over 200 emergency calls daily, ranging from road traffic accidents to medical emergencies and building collapses. Our ambulances are always on the move,” the official said.

    According to Makinde, the ambulance service operates from five base stations strategically located across Lagos, including Badagry, Lagos Island, Ikeja and Ikorodu to ensure quick response to emergencies.

    She acknowledged that some ambulance points were vandalised during the #EndSARS protests but have since been renovated and reinstated at key locations, including the Tollgate, Third Mainland Bridge, and the rest.

    “When there is an emergency call, it is routed through our Command and Control Centre, which then directs the nearest available ambulance to the location. Our teams stabilise patients at the scene before transporting them to the appropriate hospitals,” she said.

    Makinde further explained that some Lagos residents call the emergency numbers just to test if they are working. When the call is answered, they simply say, “Oh, sorry, we just wanted to check if the number still works.”

    She reassured residents that the emergency numbers work efficiently, even as she urged people to avoid prank calls, as they could delay help for those in real emergencies. LASAMBUS provides free emergency medical assistance, ensuring swift response to critical situations.

    Its services include on-site stabilisation, such as suturing and infusion therapy, to keep patients stable before hospital transport.

    Depending on the severity of the case, the service director said patients are taken to specialised hospitals, trauma centres for fractures and severe injuries, while neurological cases are referred to the Lagos State University Teaching Hospital (LASUTH).

    The service plays a crucial role in handling collapsed buildings, road accidents and other medical emergencies, ensuring timely intervention and life-saving care.

    Beyond emergencies, Makinde said the ambulance service also supports large gatherings, as Lagos State mandates the presence of an ambulance at events with over 100 attendants.

    Event organisers must request an ambulance at least two weeks in advance through the Ministry of Health, reinforcing the government’s commitment to public safety.

    Residents can request an ambulance by calling 767 or 112, which routes calls through the Lagos State Command and Control Centre. The centre coordinates emergency responses among multiple agencies, including fire services, the police Rapid Response Squad (RRS) and LASTMA.

    She added that the state currently operates 36 ambulances, which she admitted are not sufficient because of the state’s growing population.

    She commended the Lagos State Governor, Sanwo-Olu for his commitment to improving emergency services, stating that more ambulances may be added this year.

    “The governor has the interests of Lagos residents at heart. That is why our emergency response system remains one of the best in the country,” she stated.

    Despite the challenges, LASAMBUS remains a lifeline for many residents of Lagos in critical moments, responding to hundreds of emergency calls daily, including road accidents, building collapse, and emergency support at public gatherings, among other emergency services.

    For instance, in April 2022, a 27-year-old expectant mother, Shukurat Isa went labour while traveling on a public bus from Awoyaya to Orile in Lagos.

    As the bus reached the Law School Bus Stop on Victoria Island, she began experiencing intense labour pains. A fellow passenger promptly called the Lagos State Ambulance Service (LASAMBUS) for assistance.

    Within 14 minutes of receiving the distress call at 8:02 a.m., a LASAMBUS team arrived at the scene by 8:16 a.m.

    The emergency medical team assisted Shukurat in delivering a healthy baby boy weighing 3.3 kg. After ensuring both mother and child were stable, they transported them to the Ikate Health Centre for further care.

    The incident highlights the critical role of LASAMBUS in providing timely emergency medical services in Lagos.

    The swift response and professional care not only ensured the safety of Shukurat and her newborn but also underscored the importance of public awareness with regard to the availability and proper use of emergency services.

    While improvements are needed, more ambulances, better coordination, and faster response time, residents also have a role to play.

    Understanding how to use emergency services properly, avoiding prank calls, and providing clear accident details can make a big difference. In a rapidly growing city like Lagos, a strong, well-functioning emergency system can mean the difference between life and death.

    But with Lagos’ growing population and heavy traffic, the demand for efficient pre-hospital emergency care has never been greater. The question remains: Can LASAMBUS overcome its limitations to truly fulfil its life-saving mission?

  • Third-party insurance: A lifeline for victims or burden for vehicle owners?

    Third-party insurance: A lifeline for victims or burden for vehicle owners?

    In a sweeping move to enforce Nigeria’s Insurance Act 2003 and the Motor Vehicle (Third-Party Insurance) Act, 1950, the police launched a nationwide crackdown on February 1 to ensure compliance with mandatory third-party insurance. This move has sparked mixed reactions, with many motorists becoming more aware of the legal protections the policy provides. In this special report, Assistant News Editor/Head, Security Desk, PRECIOUS IGBONWELUNDU examines the complexities of enforcement and explores the ongoing debate about its effectiveness in improving road safety and protecting accident victims

    There was chaos at the busy Cele Bus Stop in Okota yesterday morning after a commercial bus grazed a Sports Utility Vehicle (SUV). Without hesitation, the driver of the SUV rushed out of his vehicle, causing a major traffic disruption. He stormed toward the danfo, yanked the commercial driver from his seat, and in a matter of moments, both men were locked in a heated argument that nearly escalated into physical confrontation. Thankfully, nearby law enforcement officers intervened, calming the situation and instructing that both vehicles be removed from the road to clear the way for other motorists.

    Scenes like this are all too familiar across the country. Road traffic accidents, whether serious or minor, often trigger intense reactions from drivers, regardless of time or location. In some cases, disputes escalate into fistfights, resulting in injuries. In others, the offending driver may apologize, only to be met with either acceptance or a demand for damage repairs from the victim. Despite being in place since 1950, many Nigerians are unaware that the N5,000 they pay annually for Third Party Insurance is not just a legal requirement or a bureaucratic formality. For many, it’s merely a way to avoid hefty penalties—such as a fine of N250,000, a year in prison, or both. While car owners dutifully pay the insurance premium each year to remain roadworthy, the financial burden of accidents still falls on their shoulders, with insurance companies raking in millions of naira in profits.

    However, a significant shift occurred in December 2022, when the National Insurance Commission (NAICOM) raised the cost of third-party insurance for private vehicles from N5,000 to N15,000. Commercial vehicles, staff buses, general-purpose vehicles, and articulated trucks now face higher premiums, with coverage extended up to N5 million. Tricycles, motorcycles, and bicycles are also included under the scheme, with premiums adjusted to reflect the different levels of risk associated with these vehicles. In addition, the commission increased the third-party claims cap from N1 million to N3 million, aiming to better align with current economic realities. The hike to N15,000, however, sparked a wave of public outrage, with many Nigerians accusing the commission of insensitivity to the struggles of ordinary citizens.

    It was only a few weeks ago that most of the motoring public, through the vigorous enforcement of the law by the police, became aware that their third-party insurance certificate provides coverage for such situations. They learned that, in the event of an accident, there was no need to resort to fighting or causing a scene, as the insurance company, by law, is obligated to cover the financial burden up to N3 million. This realization has been a turning point for many drivers, who now understand that the insurance is designed to protect them from the costs associated with accidents, making the often chaotic and confrontational aftermath avoidable.

    Third-party insurance policy and why the police took up its nationwide enforcement

    Compulsory Third-Party (CTP) motor vehicle insurance, also known as mandatory liability insurance, is a legal requirement in many countries around the world. This type of insurance provides coverage for injury or death caused to third parties in accidents, but typically does not cover damage to the insured vehicle.

    In Africa, countries like Nigeria, Kenya, South Africa, and Egypt have implemented third-party insurance policies. Globally, numerous other nations have also adopted mandatory third-party insurance, including France, the United Kingdom, Germany, Canada, Italy, Spain, India, China, Japan, Indonesia, Malaysia, Thailand, the Philippines, Pakistan, the Netherlands, Sweden, Norway, Poland, Russia, the United States, Mexico, Brazil, Argentina, Chile, Colombia, Peru, Australia, and New Zealand.

    Though the names and regulations surrounding third-party insurance can vary from country to country, the core objective remains the same: to provide coverage for third-party vehicle damage, as well as bodily injury or death resulting from accidents. This universal approach ensures that the financial burden of accidents is shifted away from individuals and placed on insurers, offering a level of protection to those who are affected by accidents, regardless of fault.

    Following a meeting with the Director General of NAICOM, who visited him at the Force Headquarters in Abuja, the Inspector General of Police (IGP), Kayode Egbetokun, announced to Nigerians that the vigorous enforcement of third-party insurance would begin on February 1. The police emphasized that the purpose of this enforcement was to enhance the safety of Nigerians and their property, particularly as road traffic accidents continue to be the leading cause of death and injury in the country.

    Data released last year by the National Bureau of Statistics (NBS) and the Federal Road Safety Commission (FRSC) revealed that at least 21,509 people lost their lives in road accidents across Nigeria between 2021 and September 2024. The families of these victims, many of whom were left impoverished by the sudden loss of breadwinners, should have been entitled to compensation from the insurance company of the vehicle(s) responsible for the fatalities, if the vehicles were covered by valid third-party or comprehensive insurance policies.

    In addition to the tragic loss of life, thousands of others sustained various injuries in road accidents, with many facing hefty medical bills that should have been covered by the insurance of the vehicle responsible for their injuries. In the event of a road accident, the law requires that the parties involved promptly invite traffic officers from the police or the FRSC to document the incident. Typically, photos and videos are taken of the damaged vehicles, properties, and any injured or deceased persons. The traffic officers also carry out investigations to determine which party was at fault, while emergency responders attend to the victims. All these steps are vital, as a police report is necessary to process an insurance claim. Without this official documentation, it becomes difficult, if not impossible, to seek compensation for the damages or injuries sustained in the accident.

    Aside from ensuring public order and safety during accidents, the process of involving the police also serves a crucial role in verifying vehicle documentation. This verification can help authorities identify stolen vehicles, track down criminals on the run, or uncover vehicles involved in illegal activities. Such checks enhance security by linking vehicles to their rightful owners and ensuring they are being used for lawful purposes.

    The proper enforcement of insurance laws also contributes to a more orderly road system. It not only strengthens public confidence in the police as effective enforcers of the law but also alleviates the financial burden on government resources. By making insurers responsible for covering the costs of accidents, the financial responsibility of victim compensation is shifted from the state to the insurance providers, thus relieving taxpayers from the heavy costs associated with road traffic incidents.

    Speaking on the matter, Police Spokesman ACP Olumuyiwa Adejobi emphasised the gravity of the situation, stating, “It’s high time the government and everyone took traffic management seriously, to save lives and property. Road traffic accidents kill more people than terrorism and insurgency.” He further clarified the police’s role in enforcing third-party insurance compliance, noting, “It’s a slap on the face of the police to say we are busybodies for enforcing third-party insurance compliance. It is the duty of the police, as the lead agency in internal security, to enforce all laws.” Adejobi made it clear that there was no room for debate on the issue, pointing out, “The Insurance Act is very clear. Why do we have the Motor Traffic Department (MTD) and maintain the traffic training school in Ikeja?”

    Data obtained from the police indicated that a total of 4,434 vehicles have been contraband since the commencement of the enforcement. Of the total contravened, 441 were charged to court, 3,225 released after compliance while 531 vehicles were under investigation. According to the police, the enforcement drive also seeks to address the issue of fake or fraudulent insurance certificates. Many people, the police noted, are unaware that only insurance companies registered and approved by NAICOM (National Insurance Commission) are recognized by law. These licensed insurers are the ones held liable in the event of an accident, ensuring that victims can receive compensation for their injuries or losses. By verifying the authenticity of insurance certificates, the enforcement helps protect the rights of accident victims, reducing the economic hardships and losses they would otherwise face, and ensuring that the financial burden of accidents is properly addressed through legitimate insurance channels.

    Read Also: Mixed feelings greet third-party insurance policy in Kogi, Nasarawa, Niger

    Legal framework and matters arising

    The legal framework surrounding third-party insurance in Nigeria is supported by several critical laws and regulations aimed at ensuring road safety and providing compensation to accident victims. At the core of these regulations is the Motor Vehicles (Third-Party Insurance) Act, which mandates that all motorists must maintain a minimum level of insurance coverage to protect against potential liabilities to third parties. This law serves as the primary legal requirement for third-party insurance in the country, ensuring that individuals involved in accidents can be compensated for damages or injuries caused by other drivers.

    In addition to this, Section 68 of the Insurance Act 2003 reiterates the compulsory nature of third-party motor insurance, imposing penalties on those who fail to comply. This section ensures that all motorists meet the necessary insurance requirements, and it provides a mechanism for holding defaulters accountable. The NAICOM Regulations further enhance this framework by assigning the National Insurance Commission (NAICOM) the responsibility of overseeing and enforcing compliance with insurance laws. NAICOM ensures that only registered and licensed insurers operate within the country, and it works to uphold industry best practices, ensuring that insurers meet the standards required to provide compensation to accident victims.

    The FRSC Act, 2007 also plays a significant role in enforcing traffic laws, granting the Federal Road Safety Corps (FRSC) the authority to ensure compliance with road safety regulations, including the third-party insurance requirement, on federal highways. This act empowers the FRSC to maintain order on the roads and ensure that drivers are adhering to the law. Lastly, the Police Act, Criminal Laws, and the Constitution grant the police the authority to enforce all laws in Nigeria, including those related to third-party insurance. As the lead agency in internal security, the police play a crucial role in ensuring that motorists comply with these laws, which are fundamental to road safety and providing compensation for accident victims. Together, these legal instruments create a comprehensive system for enforcing third-party insurance in Nigeria, ensuring that the financial responsibility for accidents is properly addressed, protecting the rights of accident victims, and promoting overall road safety.

    The media has been flooded with videos and images of enforcement teams carrying out stop-and-search operations, demanding evidence of compliance with the mandatory third-party insurance requirement. In many instances, vehicles without valid insurance were impounded, with their owners instructed to obtain the policy before they could retrieve their vehicles. However, the police’s involvement in this enforcement has sparked controversy, particularly among some activists who feel that the police are overstepping their bounds by taking on responsibilities that traditionally belong to the Federal Road Safety Corps (FRSC). These critics argue that the police should be focusing on more pressing security challenges rather than getting involved in traffic enforcement.

    Additionally, there have been accusations that police officers deployed for the mission were using the opportunity to extort money, harass motorists, and demand bribes, further straining the already fragile relationship between the police and the public. Some citizens also expressed concerns that the officers may not have the proper training or tools to accurately verify insurance certificates in real time, potentially rendering the enforcement ineffective.

    Despite these concerns, the enforcement exercise has largely proceeded without major issues. While there were some isolated incidents of misconduct and overzealousness—especially in states like Enugu and Akwa Ibom—the operation has generally been smooth. To quell fears of a potential rivalry between the police and the FRSC, Police Spokesman ACP Olumuyiwa Adejobi addressed these concerns, stating that both agencies were not in competition but were, in fact, working together toward a common goal. This collaboration, he assured, would ensure that the enforcement of third-party insurance is carried out effectively, contributing to improved road safety and better protection for accident victims.

    “Not at all. They will rather work with the police on the enforcement.  The law specifically empowers the police on the enforcement. The Police Act, Constitution and Traffic Laws also give the police such powers. The police have wide and enormous duties generally, that is why it is called the lead agency in internal security,” Adejobi said.

    On the issue of extortion, harassment and corruption, Adejobi said the enforcement teams had already been warned to eschew such practices, embrace professionalism and ethical law enforcement practices, which they have complied with to a large extent. Asked who enforces compliance on the part of the insurance companies notorious for always saying away from paying claims, Adejobi said that is the responsibility of NAICOM. “We can hold NAICOM accountable. We should not forget that we have a commission in charge of other processes not the NPF. The only thing the police can do is to make sure you have your police report when and where necessary.”

    Prospects and recommendations for effective enforcement

    To address the ongoing issue of fake insurance policies, experts suggest that the police integrate their enforcement efforts with the Nigerian Insurance Industry Database (NIID). This integration would enable real-time verification of insurance certificates, reducing the reliance on paper documents that are easily forged. By leveraging modern technology, this move could significantly enhance the integrity of the enforcement process and help ensure that only legitimate insurance policies are in circulation.

    There is also a strong call for collaboration between NAICOM, the FRSC, and the police to launch a nationwide public awareness campaign about the importance and benefits of third-party insurance. This education campaign would help motorists better understand the value of insurance, not just as a legal requirement, but as a critical safety net for themselves and others on the road. Increased awareness could also reduce resistance to compliance and increase overall insurance coverage among motorists.

    To avoid duplication of efforts and potential conflicts between agencies, experts recommend the establishment of a clear framework that defines the specific roles and responsibilities of the police, FRSC, Vehicle Inspection Officers (VIO), and NAICOM in enforcing third-party insurance regulations. This would ensure coordinated and efficient enforcement, eliminating overlaps and confusion in the execution of duties. Furthermore, it is essential that the police authorities implement strict anti-corruption measures to prevent officers from abusing their enforcement powers. Ensuring that the enforcement process is free from bribery and harassment is crucial to maintaining public trust. Transparent procedures should also be put in place to allow motorists to easily challenge any wrongful actions or unfair treatment by enforcement officers.

    Finally, to address the root cause of the widespread sale of fake policies, it is recommended that the government and NAICOM work closely with insurance companies to ensure that third-party insurance remains both affordable and accessible to the general public. By making genuine insurance policies more affordable, the incentive for motorists to purchase fake policies from roadside vendors would be significantly reduced. Incorporating these recommendations could lead to a more effective and transparent enforcement of third-party insurance laws in Nigeria, ultimately improving road safety and ensuring that accident victims receive the compensation they deserve.

    Sharing her views on the matter, Bola Odukale, the Director General of the National Insurers Association (NIA), expressed her support for the enforcement of third-party insurance, calling it a welcome development. She highlighted that the initiative represents a renewed hope in ensuring vehicle owners comply with the required insurance standards, ultimately protecting both themselves and other road users. Odukale emphasised the importance of the policy, stating, “It will protect accident victims against the costs of recovering from an accident that someone else, such as another driver, has caused and make compensation available for innocent victims.” Her statement underscores the significant role third-party insurance plays in providing financial security for those who suffer from road traffic accidents, ensuring they are not left to bear the burden of costs and injuries caused by others.

    Odukale listed low public awareness/limited understanding of insurance benefits; difficulty in reaching rural areas and underserved communities with insurance products; cultural and religious factors; perception of financial burden; fragmentation of the market and inadequate access to information technology as significant obstacles with getting the people to embrace insurance culture. “Some Nigerians view insurance as contradicting their cultural or religious practices, leading to resistance to adopting insurance as a financial instrument. Many Nigerians perceive insurance as an additional financial burden rather than a protective measure. With limited disposable income and numerous financial priorities, insurance is often considered a luxury rather than a necessity. Other issues include inadequate access to information technology, high inflation, security concerns, and persistent unemployment,” she said.

    Odukale recommended the expansion of distribution channels, adding that agent networks, microfinance institutions and retail outlets should be utilized to reach rural areas. “Leverage digital platforms for online policy purchase and customer service and claims processing. Partner with government agencies, cooperative societies and trade unions to reach the informal sector. Build trust and confidence. Improve customer service and complaints. resolution mechanisms. Collaborate with regulatory bodies to enforce consumer protection standards

    “Lagos is often called a pacesetter because it sets an example for other states in Nigeria in many areas, including Automatic Number Plate Recognition (ANPR) Camera and every state should embrace such technology. Please note that all over the world, deployment of law enforcement agents and technology are best solution to enforcement of compulsory insurances

    “Enforcement agencies in Nigeria are important because they protect citizens, maintain law and order, and prevent and detect crime. The Nigeria Police Force (NPF) serves as the primary law enforcement agency in Nigeria, responsible for maintaining law and order, preventing and detecting crime, and ensuring the safety and security of citizens.

    “Third-party insurance is quite popular in car insurance purchases because it is legally mandatory. However, due to the extent of many myths surrounding it, many car owners fail to make educated decisions,” she said.

    To foster a culture of insurance in Nigeria, Odukale emphasised the need to improve public awareness, expand distribution channels, and build trust and confidence in the system. She pointed out that educating the public, especially young adults, about the importance of early insurance planning is crucial. Odukale also suggested implementing policy regulatory interventions to create a more robust framework for the industry. Furthermore, she highlighted the role of technology in minimising fraud, as well as the use of data-driven insights to better understand customer needs and market trends. By leveraging modern technology, insurance processes can be streamlined, fraud reduced, and the overall experience made more efficient for both insurers and consumers.

    Odukale also called for stronger inter-agency coordination, advocating for a system that is not only efficient but also transparent. She believes that such collaboration would benefit motorists, accident victims, and the broader society. Ultimately, she sees the proper enforcement of third-party insurance as aligning with the police’s mandate to maintain law and order, contributing to both road safety and internal security. By taking these steps, Nigeria can develop a system that ensures greater protection for all road users while promoting a safer, more reliable insurance landscape.     

  • CBN, MPC’s sustained fight against inflation yields positive results

    CBN, MPC’s sustained fight against inflation yields positive results

    Inflation in Nigeria is expected to continue its downward trajectory in 2025 as the impact of the Central Bank of Nigeria (CBN) reforms continue to drive growth and economic development. Already, Nigeria’s annual inflation rate dropped to 24.48 percent in January, reflecting the positive outcomes of several policy measures implemented by the CBN-led Monetary Policy Committee (MPC). For instance, the MPC decided to pause its policy rate tightening cycle during the first meeting of the year, marking the first pause since May 2022. This decision is part of the CBN’s broader policy strategy to maintain a positive inflation outlook and sustain the naira’s rally across markets, reports Assistant Editor, Collins Nweze.

    The Nigerian economy is well-positioned to achieve price stability within the year, supported by the stabilisation of exchange rates, the normalisation of energy prices following subsidy removal, and improved liquidity in the forex market. In its 2025 macroeconomic outlook, Comercio Partners highlighted that the rebasing of Nigeria’s Consumer Price Index (CPI) to 2024 would introduce statistical effects that could result in a decrease in inflation figures.

    Additionally, Comercio Partners underscored the importance of expanding local refining capacity, particularly with the launch of the Dangote Refinery. This development is expected to mitigate the impact of exchange rate fluctuations on energy prices. By increasing reliance on domestically refined petroleum, Nigeria is likely to experience reduced energy price volatility.

    This, coupled with a more stable exchange rate, is expected to reduce production and transportation costs, triggering a positive ripple effect across the broader economy. According to Ifeanyi Ubah, Head of Investment Research and Global Macro Strategist, remarked, “We expect headline inflation will decrease to around 15 percent in the first half of 2025, indicating a gradual return to economic stability.”

    The report also highlighted the critical need for expanding local refining capacity, especially with the upcoming launch of the Dangote Refinery. This development is expected to lessen the impact of exchange rate fluctuations on energy prices. With increased reliance on domestically refined petroleum, Nigeria is likely to experience a reduction in energy price volatility. Combined with a more stable exchange rate, this is expected to lower production and transportation costs, triggering a positive ripple effect throughout the broader economy.

    MPC steps in

    The need to tame inflation and sustain exchange rate stability were key factors influencing the Monetary Policy Committee’s (MPC) decision to keep rates unchanged at its 299th meeting held last week in Abuja. As a result, the Committee voted to maintain the Monetary Policy Rate (MPR) at 27.50 percent and kept all other parameters unchanged. This includes the Cash Reserve Requirement (CRR) for Deposit Money Banks (DMBs) and Merchant Banks at 50 percent and 16 percent, respectively; the asymmetric corridor around the MPR at +500bps/-100bps; and the liquidity ratio at 30 percent.

    According to the National Bureau of Statistics (NBS), Nigeria’s annual inflation rate stood at 24.48 percent in January, reflecting a notable decline from the previous month’s figure. This decrease followed the first rebasing of Nigeria’s Consumer Price Index (CPI) in more than a decade.

    CBN Governor Olayemi Cardoso said the apex bank is now more than ever, consolidating market gains and ensuring sustained improvement is crucial. “We will enhance collaboration with the fiscal sector by increasing the depth and regularity of our interactions to drive economic growth. With stabilising forex rates, strengthened price controls, and rising investor confidence, the economy shows strong signs of resilience and recovery,” he said.

    Cardoso explained that ⁠following positive developments in the FX market, the CBN’s focus on boosting liquidity and maintaining transparency in forex operations is sacrosanct. “Our Objectives have been and will continue to be, to achieve stability in the Foreign Exchange and the Financial markets. CBN will continue to embrace orthodoxy and stay the course. We remain vigilant and will not take anything for granted, inflation has been too high for too long, and our goal is to bring it down from double digits to single digits in the medium to long term,” he said.

    On February 20, the naira strengthened by 6.95 per cent to N1,510/$ in the parallel market, driven by positive exchange rate expectations, subdued forex demand, and continued intervention by the Central Bank of Nigeria (CBN). Businesses, particularly those in the real sector, welcomed the MPC’s decision to hold rates, viewing it as a step toward sustaining the naira’s rally and alleviating the rising cost of borrowing. These decisions were based on the Committee’s expectation of robust GDP growth in the medium term, fueled by strong contributions from the non-oil sector. Furthermore, the MPC highlighted the sustained rise in domestic crude oil production (1.74 mb/d) and anticipates an improved contribution from the oil sector, further bolstering overall GDP growth.

    The MPC acknowledged the recent rebasing of the Consumer Price Index (CPI) and the adjustments made to the weights of items in the CPI basket, noting that the new methodology more accurately reflects current consumption patterns. The Committee also anticipates a moderation in inflationary pressures in the near term, supported by a relatively stable naira and a gradual easing of PMS prices.

    Furthermore, the MPC highlighted the recent appreciation of the naira, which has been buoyed by improved forex liquidity. The Committee also recognised the CBN’s ongoing efforts to promote transparency and credibility in the foreign exchange market. These efforts include the implementation of the Electronic Foreign Exchange System (EFEMS) and the Nigerian Foreign Exchange Market (NFEM) FX Code.

    The Committee anticipates that sustained policy initiatives will bolster Foreign Direct and Portfolio investments, as investor confidence continues to rise. Additionally, the MPC emphasized that increased domestic crude oil production is expected to improve the current account balance and support the growth of FX reserves. On the global front, the Committee noted that while the Russia-Ukraine war and ongoing Middle Eastern conflicts pose downside risks to global GDP, potential resolutions could emerge through policy actions by the new US administration. The Committee also identified the risk of a possible global trade war triggered by US tariff hikes, which could heighten inflationary pressures and dampen global growth. Despite these risks, the MPC highlighted that the International Monetary Fund (IMF) has maintained its global GDP growth forecast at 3.3 percent for both 2025 and 2026.

    Looking ahead, analysts at Cordros Securities expect future MPC decisions to be largely driven by developments in the foreign exchange market and the trajectory of inflation. They noted, “While a potential rate cut could be considered at the May policy meeting, we anticipate a gradual approach aimed at balancing exchange rate stability with the expected disinflationary process,” as stated in their emailed notes to investors.

    Analysts also observed that, ahead of the MPC meeting, market participants had already started repricing yields downward, despite the tight liquidity conditions in the financial system. The Managing Director of Financial Derivatives Company Limited, Bismarck Rewane, stated that the global and domestic economic landscape is rapidly evolving, and Nigeria’s policymakers are navigating treacherous waters. He emphasized that balancing risks is a delicate task—tighten too much, and growth could be stifled; ease too soon, and inflation could spiral out of control.

    “In its first meeting in 2025, held on February 19-20, the Monetary Policy Committee (MPC) finally hit the pause button on interest rate hikes after 12 months of an aggressive tightening campaign. The restrictive stance saw the policy rate peak at 27.5 per cent per annum, pushing maximum lending rates above 30 per cent per annum. Markets perceive this move as the beginning of a more accommodating stance as the yield curve inverted, especially at the short end following the rate decision,” he said.

    The decline in the inflation rate, largely driven by the rebasing of the Consumer Price Index (CPI), indicated that the MPC’s decision to hold rates was in line with expectations, although further moderation in yields remains possible. Commenting on the MPC’s decision, Charles Abuede, the Head of Research at Cowry Asset Management Limited, noted that the MPC is proceeding cautiously. He added that market expectations were for the MPC to increase the MPR by 25 basis points to align with broader market sentiments, driven by the need to address rising inflation, which has become entrenched in the economy.

    “The committee should remain focused on maintaining price stability, especially as inflationary pressures persist despite previous rate hikes.” Abuede said a lower inflation print is prompting the MPC to prioritise economic growth over further tightening, particularly as other macroeconomic indicators suggest easing cost pressures.

    Also weighing in, Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, stated that the MPC is gradually relaxing its monetary policy tightening. He acknowledged the Central Bank’s historically strict stance but emphasised that the current economic realities necessitated holding rates steady. Yusuf also agreed that there has been some stability in the exchange rate, noting that, given the current situation, there is already an excess of monetary policy tightening tools in play.

    He said: “Monetary Policy Rate (MPR) were already at around 27.5 per cent and the Cash Reserve Requirement (CRR) is already at 50 per cent, which are practically the limits that monetary policy can be pushed for now. Interest rate now for many businesses is over 35 per cent, and it should not get worse than that.

    “We need to tackle food inflation which is a major factor in our current inflation. So, we need to do a lot more in the area of development finance, why the CBN continues to pursue is the orthodox monitoring policy,” he stated.

    Analysts from the Nigeria Economic Summit Group noted that the easing of inflation is expected to play a significant role in shaping monetary policy decisions. They forecast that the CBN’s Monetary Policy Committee (MPC) may adopt a more accommodative stance in late 2025, potentially lowering interest rates to stimulate economic activity. This shift would represent a departure from the previous tight monetary policy regime that focused primarily on controlling inflation.

    Battle against inflation thickens

    The battle against inflation is intensifying, as policymakers face mounting challenges in managing the delicate balance between curbing inflation and supporting economic growth. The CBN policies, including the unification of the exchange rate, have resulted in significant foreign capital inflows, reducing the bank’s intervention in the forex market. The floatation of the naira, along with the clearing of over $7 billion in FX backlog, has improved the country’s outlook with foreign investors. Multilateral organizations like the World Bank have described these actions as bold interventions aimed at enhancing the economy’s long-term sustainability.

    Upon assuming office, CBN Governor Cardoso highlighted that rebuilding Nigeria’s economic buffers and strengthening resilience were top priorities for his leadership. Prior to his appointment, inflation had surged to 27 per cent, largely driven by excessive money supply growth. Over the previous eight years, GDP growth had stagnated at a modest 1.8 percent, while money supply grew rapidly, averaging around 13 per cent annually. This imbalance not only fuelled inflation but also contributed to a significant depreciation of the naira. Governor Cardoso explained that inflation creates uncertainty for both households and businesses, functioning as a silent tax that erodes purchasing power and drives up the cost of living.

    The nation was also facing a fiscal crisis, marked by unsustainable deficit financing through the Central Bank’s Ways and Means advances, which had ballooned to an unprecedented N22.7 trillion by 2023—roughly 11 percent of the GDP. Additionally, quasi-fiscal interventions by the CBN, totaling over N10 trillion, further undermined market confidence and weakened the effectiveness of its policy tools.

    Against these challenges, the Central Bank of Nigeria (CBN) under Governor Cardoso has sparked renewed optimism in the management of the financial system and the broader economy. The current macroeconomic stabilisation efforts are enhancing Nigeria’s ability to attract foreign investors to its markets. For example, by the end of 2024, Nigeria was able to leverage its improved economic fundamentals to re-enter the Eurobond market, aiming to address its fiscal deficit. This marked the country’s return to the international debt market in November after a two-year hiatus. In a dual-tranche Eurobond issuance, investor demand soared, with subscriptions surpassing $9 billion.

    The high-interest rate environment also drew increased foreign portfolio investment, with inflows reaching $3.48 billion in the first half of 2024, compared to just $756.1 million in the same period of 2023. This upward trend signals growing investor confidence in Nigeria’s ability to manage its external debt burden, providing a positive outlook for the country’s Eurobonds.

    Inflation targeting framework in the works

    The fight against inflation has intensified with the planned adoption of an inflation targeting framework by the CBN to enhance price management. This framework, which has been successfully implemented by central banks in several African countries, is expected to strengthen Nigerians’ purchasing power, increase disposable income, drive aggregate demand, and stimulate production.

    Read Also: CBN, EDC partner to transform cooperative societies

    The effects of rising inflation are being felt by households and businesses throughout the country, making price stability a core mandate of the CBN. In response, the CBN is working towards adopting and implementing the inflation targeting framework, which will replace the current exchange rate targeting framework. This shift is expected to be implemented with strong public support.

    In its efforts to tackle inflation, the CBN recently hosted the Monetary Policy Forum 2025, bringing together fiscal authorities, legislators, the private sector, development partners, subject-matter experts, and scholars. The forum, centered on the theme “Managing the Disinflation Process,” served as a platform for collaborative discussions on strategies to curb inflation and stabilize the economy.

    The forum represents a significant push to enhance monetary policy communication, promote dialogue, and foster collaboration on key issues shaping monetary policy. During the event, Governor Cardoso outlined the CBN’s primary focus on sustaining price stability, transitioning to an inflation-targeting framework, and implementing strategies to restore purchasing power and alleviate economic hardship. He emphasised that the apex bank is maintaining its disciplined approach to monetary policy, with the goal of curbing inflation and stabilising the economy in the face of ongoing challenges.

    “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.”

    Cardoso reiterated that the goal of the CBN is to ensure that monetary policy remains forward-looking, adaptive, and resilient. In addressing our economic challenges, collaboration is key: “Managing disinflation amidst persistent shocks requires not only robust policies but also coordination between fiscal and monetary authorities to anchor expectations and maintain investor confidence,” Cardoso said.

    “Our focus must remain on price stability, the planned transition to an inflation-targeting framework, and strategies to restore purchasing power and ease economic hardship,” he added.

    The CBN has also placed a strong emphasis on strengthening the banking sector by introducing new minimum capital requirements for banks, effective March 2026. This move aims to ensure the resilience of the sector and position Nigeria’s banking industry for a $1 trillion economy. This week, the CBN took another significant step forward with the launch of the Nigeria Foreign Exchange Code, which is designed to promote integrity, fairness, transparency, and efficiency in the FX market. Built on six core principles, the code represents a binding commitment from the financial community to rebuild trust and inspire confidence in the market.

    In addition, the CBN continues to prioritize financial inclusion. The Women Entrepreneurs Finance (We-FI) initiative, part of the National Financial Inclusion Strategy, is actively working to bridge the gender gap by ensuring that more women have access to financial services and digital tools, helping to empower women economically.

    Remittances through International Money Transfer Operators (IMTOs) rose by 79.4 percent to US$4.18 billion in the first three quarters of 2024, underscoring the positive impact of the foreign exchange reforms. Additionally, the CBN lifted the 2015 restriction barring 41 items from accessing FX at the official market, aiming to enhance trade and investment. These reforms and developments reflect the CBN’s commitment to creating an enabling environment for inclusive economic growth. However, achieving long-term macroeconomic stability requires sustained vigilance and a proactive stance on monetary policy.

    “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,” Governor Cardoso stated. He also highlighted that the move from the exchange rate targeting framework to the inflation-targeting framework aligns with the CBN’s determination to control inflation surges in line with its mandate of maintaining price stability. Inflation continues to be a major concern for the CBN, and the current environment calls for the effective use of monetary policy tools to manage it.

  • Our Scorecard In Blue And Marine Economy, By Oyetola

    Our Scorecard In Blue And Marine Economy, By Oyetola

    Nigeria is at the cusp of an economic transformation through its Blue Economy, leveraging its vast maritime resources. With a coastline stretching over 853 kilometres and an expansive Exclusive Economic Zone, the country is primed to tap into the potential of industries such as shipping, fisheries and renewable energy to drive growth, create jobs and foster sustainability, reports Associate Editor ADEKUNLE YUSUF

    As one of the world’s largest maritime nations, Nigeria finds itself at the threshold of a significant economic shift—one propelled by the Blue Economy. With an abundance of natural resources, particularly in the marine space, Nigeria is presented with an incredible opportunity to diversify its economy, drive sustainable development, and improve the quality of life for its citizens. Through its extensive coastline along the Atlantic Ocean, vast inland waterways, and untapped marine resources, Nigeria has the potential to become a global leader in the Blue Economy sector. If effectively harnessed, these resources have the power to diversify the national economy, generate employment, and promote sustainable development. This vision was articulated by Adegboyega Oyetola, Minister of Marine and Blue Economy, during a media engagement in Lagos last week.

    Under the leadership of President Bola Ahmed Tinubu, Nigeria is taking important steps toward realising the full potential of its marine economy. According to Oyetola, the creation of the Ministry of Marine and Blue Economy reflects the government’s unwavering commitment to establishing Nigeria as a global maritime force. This ministry’s role is to develop and oversee policies that will ensure the responsible use of Nigeria’s marine resources, leveraging them for economic prosperity and environmental sustainability. This strategic move offers Nigeria a unique opportunity to tap into industries such as shipping, fisheries, offshore oil and gas exploration, and renewable energy, all of which are crucial to ensuring the nation’s long-term economic resilience.

    After unveiling the federal government’s vision for the sector, Oyetola then delved into the nation’s proactive measures to build a sustainable blue economy, outlining both the progress made and the challenges faced along the way. He highlighted the regulatory reforms, robust policies, and achievements that have already been realised, emphasising the significant contributions of key stakeholders in these areas. In doing so, Oyetola painted a vivid and optimistic picture of Nigeria’s dynamic maritime landscape, emphasising the immense potential for growth and transformation in the coming years. With such a comprehensive approach, he said he is optimistic that Nigeria is on track to fully capitalise on its maritime resources, forging a future that is both prosperous and sustainable for all.

    Nigeria’s maritime wealth as a foundation for sustainable growth

    The Blue Economy encompasses a wide range of industries and activities that depend on the oceans, seas, and marine resources. In Nigeria, the maritime industry presents opportunities in shipping, fisheries, oil and gas, marine biotechnology, and tourism. This sector’s immense potential has not gone unnoticed. According to the Minister of Marine and Blue Economy, “Nigeria’s maritime sector has the potential to contribute over $100 billion annually to the national GDP if fully developed.”

    With a coastline bordering the Atlantic Ocean and a vast inland waterway system, Nigeria is uniquely positioned to benefit from the untapped opportunities within its waters. The nation’s Exclusive Economic Zone (EEZ) provides vast prospects for offshore exploration, particularly in oil and gas, which has long been the backbone of Nigeria’s economy. Additionally, the fisheries sector, which accounts for a significant portion of the country’s food supply, holds vast untapped potential. By improving fisheries management and boosting aquaculture, Oyetola said Nigeria can reduce its dependency on fish imports and contribute significantly to regional food security.

    Nigeria is blessed with an extraordinary range of marine resources, both on land and beneath the sea. The nation’s coastline, stretching over 853 kilometres along the Atlantic Ocean, is just the beginning. Nigeria’s Exclusive Economic Zone (EEZ), which covers more than 300,000 square kilometres, offers enormous potential for economic growth through sectors like shipping, fishing, offshore oil, and gas exploration, and marine biotechnology. Oyetola disclosed that the fisheries subsector alone has the potential to significantly reduce the country’s dependence on fish imports, create employment, and bolster food security. Nigeria’s inland waterways also provide vital trade routes that connect various parts of the country, supporting regional economic integration, he said. These water systems are key to ensuring more efficient transportation of goods and services, contributing to the nation’s logistical capabilities.

    The Minister explained the Blue Economy, in its broadest sense, includes all activities related to the oceans and seas, such as shipping, tourism, renewable energy, and fisheries. However, it also covers emerging sectors like marine biotechnology, desalination of seawater, and seabed mining. The combination of these resources and industries places Nigeria in a prime position to tap into an expanding global market that values sustainability, innovation, and ocean-based economies. The government’s vision for the Blue Economy, he said, is both ambitious and essential for the nation’s long-term economic prosperity. Under the current administration, there has been an emphasis on tapping into the economic potential of the nation’s maritime resources while ensuring that environmental sustainability is maintained.

    A core element of this vision is the diversification of Nigeria’s economy. The government has recognised the limitations of an oil-dependent economy and understands that the Blue Economy can provide an alternative source of revenue generation and job creation. The creation of the Ministry of Marine and Blue Economy was a strategic move to focus on harnessing these maritime opportunities, ensuring that policies are aligned with national and global objectives of sustainable development. According to Oyetola, this focus on the Blue Economy aligns with Africa’s Agenda 2063 and the United Nations’ Sustainable Development Goals (SDGs), especially those focused on the sustainable use of ocean resources. The overarching goal is to position Nigeria as a leading maritime and marine economy, with an emphasis on sustainability, inclusivity, and job creation across different segments of the population.

    As stated by the President in his inaugural address, “Our government will prioritise the sustainable use of Nigeria’s maritime resources to foster long-term economic growth, job creation, and environmental conservation.” This strategic focus also aligns with global frameworks, such as the United Nations Sustainable Development Goals (SDGs) and Africa’s Agenda 2063. The newly established ministry has outlined a ten-year roadmap to facilitate the integration of maritime sectors into the national economy. This roadmap focuses on creating more efficient infrastructure, boosting security, and aligning policies to make Nigeria a global leader in the Blue Economy. As articulated by Minister: “Our vision is to build a robust Blue Economy framework that delivers prosperity to the people while preserving the marine environment for future generations.”

    Although the Blue Economy presents vast opportunities, it is not without challenges. Nigeria’s maritime sector has long been plagued by poor infrastructure, outdated regulatory frameworks, and security concerns. However, the establishment of the Ministry of Marine and Blue Economy has been instrumental in addressing some of these issues, leading to notable progress. Oyetola said regulatory reforms have been a priority for the government, particularly with regard to the efficiency of port operations and the ease of doing business within the maritime sector. He added that efforts have been made to streamline the regulatory processes at the nation’s ports, ensuring better coordination between various agencies and private sector players.

    In addition to regulatory reforms, the Minister explained further that the government has invested in modernising Nigeria’s ports infrastructure. This includes plans for upgrading both the Eastern and Western ports, improving port connectivity, and increasing capacity for handling larger vessels. The completion of these projects is expected to enhance Nigeria’s position as a logistics hub in West Africa, attracting more investment and boosting economic activity. Nigeria’s maritime security has also seen notable improvements, with initiatives such as the Deep Blue Sea Project and the Falcon Eye surveillance system playing a critical role in reducing piracy and illegal activities in the Gulf of Guinea. These efforts have bolstered confidence in Nigeria’s maritime industry, making the country a more attractive destination for international trade and investment.

    Furthermore, Oyetola boasted that the Nigerian government has made strides in strengthening its maritime security capabilities, working closely with international partners to ensure the safety of its shipping lanes and offshore resources. This renewed focus on maritime security has been essential in creating a stable environment for businesses to operate and thrive in the sector. He reminded stakeholders that the success of Nigeria’s Blue Economy initiative relies on the coordinated efforts of various governmental agencies and stakeholders. The Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), and the National Inland Waterways Authority (NIWA) are among the key agencies driving this transformation.

    These agencies play a critical role in implementing policies that support the growth of the maritime sector. For example, NPA’s efforts to modernise port facilities and ensure efficient port operations are vital for attracting international shipping companies and improving trade flow. Similarly, NIMASA’s regulatory oversight in ensuring safety standards and environmental protection is crucial for maintaining Nigeria’s reputation as a secure and reliable maritime nation. Additionally, the Nigerian Maritime University in Okerenkoko, Delta State, has contributed to capacity building by training future generations of maritime professionals. With a growing demand for skilled labour in the maritime industry, this institution is central to ensuring that Nigeria has the human capital necessary to succeed in the Blue Economy.

    Read Also: Fed Govt to evacuate 100,000 Nigerian refugees from other Afrcican countries

    A central pillar of Nigeria’s Blue Economy is sustainability. Oyetola disclosed that the federal government understands the need to balance economic growth with the preservation of marine ecosystems. This is especially important as Nigeria seeks to maximise the potential of its fisheries and aquaculture subsector, both of which depend heavily on healthy marine environments. Efforts to protect marine biodiversity have already been initiated, with stricter enforcement of regulations related to illegal fishing and pollution. Additionally, the government is working on establishing Marine Protected Areas (MPAs) to conserve sensitive marine ecosystems, which play a critical role in the health of ocean life and the well-being of coastal communities.

    The growth of renewable energy sources, such as offshore wind and solar energy, is another important aspect of Nigeria’s sustainable development strategy. By tapping into these resources, Nigeria aims to reduce its reliance on fossil fuels while creating new opportunities in the renewable energy sector. Sustainability also extends to Nigeria’s maritime governance, which includes international cooperation to ensure the responsible use of ocean resources. Nigeria has been active in global maritime governance forums, such as the International Maritime Organisation (IMO), where it advocates for policies that prioritise environmental protection and sustainable marine resource management.

    While much progress has been made, Nigeria’s journey toward fully realising its Blue Economy potential is far from complete. The Ministry of Marine and Blue Economy has developed a 10-year roadmap, which serves as a guide for achieving the goals outlined in the country’s Blue Economy strategy. This roadmap focuses on several key areas: infrastructure development, sectoral reforms, security, and international cooperation. As part of its plans, Nigeria aims to expand its fishing fleet, improve port facilities, and increase capacity for shipbuilding and repairs. Investments in technology and innovation will also play a crucial role in driving growth in the sector.

  • ‘How the National Single Window will drive economic rebirth’

    ‘How the National Single Window will drive economic rebirth’

    Nigeria is targeting a $1 trillion economy by 2030, and the National Single Window (NSW) initiative is set to play a pivotal role in realising this ambition. By streamlining and digitising trade processes, the NSW aims to enhance efficiency, eliminate bottlenecks and increase transparency, ultimately positioning Nigeria’s ports and trade systems for global competitiveness and sustainable economic growth. EKAETE BASSEY reports

    As Nigeria sets its sights on a $1 trillion economy by 2030, President Bola Ahmed Tinubu’s administration is moving with determination to achieve this ambitious goal. With just five years left on the clock, the government is zeroing in on one sector that could make or break the nation’s economic future: trade.

    The first phase of the National Single Window (NSW) initiative—a transformative approach to streamline Nigeria’s import and export processes—will kick off this year. This is not just another digital upgrade; it represents a bold shift toward simplifying the complex and often chaotic systems that have plagued the nation’s trade industry for decades. The initiative promises to consolidate all trade-related processes into one unified platform, replacing the fragmented multi-window system where various agencies run separate digital platforms. Originally introduced in 2016 and revived in 2024 by President Tinubu, the NSW is an electronic portal designed to connect all the players in Nigeria’s trade ecosystem—government agencies, importers, exporters, and customs officials—on a single, integrated platform. By addressing long-standing issues such as delays, lack of transparency, and revenue leakages, the NSW aims to boost trade efficiency, enhance government revenue, and improve national security at Nigeria’s borders. These improvements are crucial, especially considering Nigeria’s consistently low ranking on global ease-of-doing-business indexes.

    However, the NSW initiative is not a sudden innovation. It’s the next logical step in a series of efforts to modernise Nigeria’s trade systems. Over the years, the country has cycled through different systems—from the Nigeria Integrated Customs System (NICIS I and NICIS II) to the Automated System for Customs Data (ASYCUDA + and ASYCUDA ++). Each evolution has been an attempt to solve the same problems: inefficiency, opacity, and the constant challenge of navigating multiple, disconnected systems. With the NSW, the goal is clear: to create a seamless, one-stop-shop for all trade-related transactions.

    The President, National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA), Lucky Amiwero, however, pointed out that the NSW is essentially distinct from NICIS I and NICIS II, and other systems, which are only procedural frameworks rather than platforms with a single window. Rather than being completely integrated trade solutions, these systems, according to Amiwero, function as process recommendations. “A true single window is about streamlining documentation and transactions into a single application, often referred to as a one-stop-shop,” he said.

    Explaining further, the NCMDLCA boss said unlike NICIS, which focuses on procedural checks, a single window ensures harmonised data exchange among all trade-related agencies. “Similarly, ASYCUDA ++, which I played a key role in introducing, was a Customs processing system, not an initiative of the Customs Service or the Federal Government. It was developed based on a proposal I authored, forming part of the broader push for destination inspection and digital trade facilitation,” Amiwero added.

    Now, going by Amiwero’s informed perspective, it means that on the behest of the NSW project, all trade-related agencies, such as Nigerian Customs Service (NCS), Nigerian Ports Authority (NPA), Central Bank of Nigeria (CBN), National Agency for Food, Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), and others, will now operate under a single, unified system, powered by a one-stop-shop that will streamline documentation and transactions into a single application.

    Driving Nigeria’s transition to $1tr economy with NSW

    The Minister of Marine and Blue Economy, Mr. Adegboyega Oyetola; Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole; Minister of State for Finance, Dr. Doris Nkiruka Uzoka-Anite; Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji; and Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs. Olubunmi Kuku, all made insightful presentations at the recent “Stakeholders’ Forum on the Establishment of National Single Window” in Lagos. Each emphasised that the National Single Window (NSW) project is one of the key initiatives introduced by the Federal Government to propel Nigeria toward becoming a $1 trillion economy.

    In his presentation, Oyetola explained that the NSW system is designed to enhance transparency by eliminating redundancies in the trade process. This will help prevent revenue leakages, which are estimated to exceed $3 billion annually. He further highlighted that, once fully implemented, the NSW system could reduce average cargo clearance times at Nigerian ports by up to 60%. This efficiency boost, Oyetola noted, is expected to significantly improve port operations and strengthen Nigeria’s competitiveness in global trade.

    It’s important to recall that last year, the Federal Government launched a new financial inclusion policy aimed at transforming Nigeria into a $1 trillion economy by 2030. Vice President Kashim Shettima unveiled the policy in Abuja, emphasising the administration’s commitment to enhancing financial and economic inclusion across the country. Since then, all Ministries, Departments, and Agencies (MDAs) have been collaborating with the private sector to achieve this ambitious goal. “The implementation of the National Single Window in Nigeria’s trade industry is fully aligned with President Tinubu’s Renewed Hope Agenda. It is a strategic enabler for greater port efficiency, improved revenue collection, and enhanced transparency,” Oyetola affirmed during the Stakeholders’ Forum.

    The Minister highlighted that countries like Singapore and the Netherlands have demonstrated how Single Window systems can revolutionise port op erations, transforming them into global trade hubs. He emphasized that Nigeria has the potential to achieve similar success by fully embracing this initiative. He pointed out, for example, that the cost of doing business at Nigerian ports can be up to 40% higher than in other West African nations due to delays and administrative bottlenecks. This inefficiency leads to an estimated annual revenue loss of N2.5 trillion within the business community.

    Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), expressed optimism about the potential of the NSW project to accelerate Nigeria’s transition into a $1 trillion economy. He noted that the NSW project is not just an improvement in Nigeria’s trade processes but a transformative leap towards unlocking the country’s vast economic potential. He added, “This initiative will significantly contribute to the realisation of a $1 trillion economy by 2031, in alignment with Mr. President’s Renewed Hope Agenda.”

    Similarly, Dr. Doris Nkiruka Uzoka-Anite, the Minister of State for Finance, emphasised that by simplifying trade processes, reducing bureaucratic hurdles, and fostering greater efficiency, the NSW system will enable Nigerian businesses to seamlessly connect with global markets. She pointed out that the shift to paperless trade under the NSW platform is expected to yield an annual economic benefit of around $2.7 billion. Countries like Singapore, South Korea, the UAE, Kenya, and Saudi Arabia have already experienced substantial improvements in trade efficiency after implementing similar systems. Dr. Uzoka-Anite also reiterated that the initiative goes beyond enhancing the ease of doing business. It will support the diversification of Nigeria’s economy, reduce dependency on oil exports, and encourage the growth of non-oil sectors. These measures aim to build a resilient economy capable of weathering unforeseen challenges, aligning with the ongoing reforms under President Tinubu’s administration for a better and stronger Nigeria.

    The MD FAAN, Mrs. Kuku, also said the vision of the NSW initiative aligned with the Federal Government’s goal of expanding the national economy to $1 trillion. She, therefore, urged stakeholders to embrace the initiative, emphasising the initiative’s role in enhancing trade facilitation and positioning Nigeria as a global economic powerhouse. “It’s an innovative digital platform that seamlessly integrates government agencies, private stakeholders, and financial institutions,” she stated.

    Mrs. Kuku, while noting that leveraging digital solutions, Nigeria could improve efficiency and transparency within its trade ecosystem, reaffirmed FAAN’s commitment to supporting trade growth and enhancing aviation infrastructure to align with global standards. “These initiatives reaffirm the Ministry of Aviation and Aerospace Development and FAAN’s unwavering commitment to transforming Nigeria into a global trade and aviation excellence hub,” she said.

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    Industry Minister Dr. Oduwole is no less expectant. She said the transformative power of the NSW would redefine ways trade was being conducted across Nigeria’s borders. “The establishment of a NSW system for trade processes in Nigeria is not merely a policy objective; it is a transformative reform that will fundamentally redefine the way trade is conducted across our borders. Our single window project will provide a centralised digital platform for traders to submit, process, and access trade-related documentation, thereby eliminating corruption through improved transparency, reducing administrative burdens, and significantly enhancing the ease of doing business in Nigeria,” Dr. Oduwole said.

    The Minister, who recalled that she had been part of the NSW project since 2016, enthused that “the time for delivery is now.” She stated that economic growth and job creation are key priorities under President Tinubu’s 8-Point Agenda, and that the NSW will play a significant role in achieving these goals by enabling Nigerian businesses to compete more effectively in global markets and strengthening Nigeria’s position as a regional trade hub under the African Continental Free Trade Area (AfCFTA). “Exports not only contribute to Nigeria’s GDP but also provide the foreign exchange needed to stabilise our economy and foster sustainable development,” Dr. Oduwole said, pointing out that the NSW would align Nigeria’s trade processes with global standards, including frameworks under the AfCFTA, which is a priority area.

    “Indeed, this initiative aligns seamlessly with Nigeria’s commitments under the World Trade Organisation (WTO) Trade Facilitation Agreement (TFA), finalised at the 9th Ministerial Conference in Bali, Indonesia, in December 2013, and enforced in 2017. Article 10.4 of the Agreement encourages the adoption of single window systems, recognising their potential to reduce trade costs by over 14 per cent in low-income countries and 13 per cent in upper-middle-income countries,” she stated.

    On his part, the Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, said the NSW is a central piece in the modernisation of Nigeria’s trade facilitation, and the NPA is fully committed to its successful implementation. He said while repositioning Nigerian Ports to maintain regional and continental competitiveness, the NPA has embarked on process reengineering aimed at aligning its functions with the objectives of the NSW and ensure parity with regional competitors, focusing on seamless data availability and enhanced transparency. In Dantsoho’s words: “Our mission is to position Nigeria as the trans-shipment hub in West Africa, and with our strategic location, a population of over 200 million people, and a large market, Nigerian Ports have the potential to become the leading transshipment hub in the African region. We also have the potential to serve as a transit port to land-locked countries since out of the 44 land-locked countries in the world, 16 are in Africa.”

    The NPA boss, however, lamented that this potential is currently constrained by infrastructure challenges and competition, as neighbouring countries continue to develop their port’s infrastructure. He, however, said the Authority’s port modernisation projects will bridge this gap and ensure that Nigeria’s ports remain competitive with regional counterparts.

    ‘NSW’s implementation not a roller-coaster’

    The challenge of inadequate port infrastructure, as highlighted by Dr. Dantsoho, represents just one of the many formidable obstacles that could hinder the successful implementation of the National Single Window (NSW) project and the creation of an efficient, seamless trade industry. Such an industry is critical to Nigeria’s goal of becoming a $1 trillion economy by 2030. Ms. Hadiza Bala-Usman, the Special Assistant to the President on Policy Coordination, also emphasised the importance of strong political will in ensuring the NSW project’s success. She remarked, “We must ensure the ICT readiness of all agencies involved, and more importantly, we need strong political will, which the Chairman of FIRS has demonstrated through the support from President Tinubu.”

    The Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, represented by Deputy Comptroller General Kikelomo Adeola, cautioned that relying solely on technology would not meet the expectations of the NSW project. “The deployment of advanced digital platforms must be accompanied by thorough process reengineering, capacity building, and effective change management,” he said. “Past initiatives in Nigeria faltered because there was an overemphasis on technology without adequately addressing the human and operational factors.”

    The fragmented implementation of the NSW system was a point of criticism for Amiwero, President of the NCMDLCA. He expressed concerns about the lack of integration, stating, “When you talk about a NSW, you’re essentially dealing with multiple windows. For example, Customs has its own window, the Nigerian Ports Authority (NPA) has its own, the government has another, and even the Central Bank operates its own window. This creates a situation where you have multiple windows instead of a unified system.” Tola Fakolade, Head of the NSW Secretariat, announced that the first phase of the NSW project will begin this year, focusing on training and testing. He emphasised the need for full cooperation from all stakeholders and noted that the NSW system, which originated in Singapore, has also been successfully implemented in countries such as Djibouti and Kenya.

    Despite this progress, Amiwero stressed that the true value of a NSW lies in data harmonisation, which ensures seamless and integrated trade processes. “NSW is not just about talk; it requires proper data harmonisation,” he explained. “This means integrating all relevant agencies under a single platform so that when a transaction is initiated, approvals from bodies like NAFDAC, SON, Customs, and others are processed automatically in the background, eliminating the need for multiple, separate interactions.” He further compared Nigeria’s trade process to that of countries like the United States, Senegal, and Singapore, where goods can be declared within minutes. In contrast, he noted, “In Nigeria, it takes several days because we must account for numerous factors and deal with multiple agencies.”

    ‘NSW shouldn’t be mistaken for revenue-generation tool’

    For NSW to work effectively, Amiwero said data harmonisation is crucial, ensuring a single application process that eliminates redundant steps. This initiative, he noted, must be driven from the highest level of government, as the presidency has already begun efforts in this direction. The NCMDLCA chief further argued that the NSW is designed for trade facilitation, not revenue generation, suggesting that if the government focused solely on revenue, the essence of the NSW will be lost. He insisted that the primary function of a single window is to streamline transactions, making trade processes more efficient, adding, however, that by enhancing trade efficiency, it indirectly accelerates revenue collection. “A NSW should not be mistaken for a revenue-generation tool,” the industry activist cautioned, pointing out that “if the goal is to boost revenue, an integrated revenue system is required, and the key to increasing government earnings lies in harmonising and integrating revenue streams, rather than relying on the single window, which is meant to reduce business costs and simplify trade operations.”

    An economic analyst, Prof Ndubisi Nwokoma, highlighted that “Nigeria does not suffer from a lack of policies but rather from poor implementation.” While noting that Nigeria’s trade sector is plagued by systemic inefficiencies, which hinder smooth policy execution, he said every administration whether under Obasanjo, Buhari, or Jonathan has introduced good policies to tackle such systemic inefficiencies. Prof Nwokoma insisted that Nigeria’s problem has never been about policy formulation but about implementation. He also identified corruption, bureaucratic bottlenecks, and revenue leakages as major hindrances, warning that policy success elsewhere does not guarantee effectiveness in Nigeria due to the peculiarities of the operating environment. “So, if we are going to import any policy framework that works in other countries, there is no guarantee it will work in Nigeria because of the peculiarities of the operating environment,” he said.

    The economic analyst added: “I don’t really bother about whether a policy is good, has been implemented or is not good. The critical issue is the environment and the players. The leakages are too enormous. And that’s a very critical issue. When it comes to import and export in Nigeria, a major issue is the presence of leakages within the system, including in foreign exchange earnings and Customs operations. These inefficiencies often lead to compromise and revenue loss for the government.” He further stated that he does not see a problem with policy formulation, design, or implementation in Nigeria. “The real challenge,” he insisted, “lies with those responsible for executing these policies, as operational bottlenecks and inefficiencies persist at that level.” He also questioned the government’s revenue drive, stating, “We often talk about revenue generation, but how are these funds used? Do they actually improve the human condition, or do they fuel more leakages in the system?”

    Kayode Farinto, a former Acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), expressed optimism about the long-awaited implementation of the National Single Window (NSW), citing emerging political will as a key factor for success. However, he stressed that one of the most critical components for ensuring the system’s success is a solid legal framework. According to Farinto, both importers and government agencies must be adequately protected under this framework. He gave the example that if an agency deliberately causes delays in cargo clearance, importers should have legal recourse, including the ability to demand compensation for storage costs or pursue legal action. “The National Single Window is achievable if there is a legal framework in place. This framework must ensure accountability, so no agency can arbitrarily delay consignment clearance without consequences,” Farinto explained.

    In addition to the legal foundation, Farinto emphasised the importance of shifting government priorities from focusing solely on revenue generation to facilitating trade. He criticised the persistent focus on revenue collection, which he argued hampers smooth trade operations and ultimately undermines both business efficiency and revenue targets. “You cannot keep pushing for revenue while failing to facilitate trade; it’s counterproductive. If trade is not facilitated, you may not even generate the revenue you seek,” he warned. Farinto also stressed the necessity of imposing strict sanctions on government agencies that violate or distort the NSW process. He warned that without such disciplinary measures, the system would be rendered ineffective, as agencies would continue to operate outside its intended framework.

    In addition, Farinto called for an expansion of the NSW beyond cargo clearance at ports. He proposed the inclusion of a time-release study, which would track the movement of released cargo from port terminals to consignees’ warehouses. This, he argued, would help eliminate unnecessary bureaucratic bottlenecks, particularly Customs’ post-clearance interventions, thereby improving overall trade efficiency. “We should not limit single window to pairs of cargoes alone. Let us incorporate what is called time-release study. When cargo ‘A’ is released from the terminal at Apapa Port, how long does it take to reach the consignee’s warehouse? Bureaucratic hurdles after clearance, particularly from Customs, often delay the process under the pretext of conducting additional checks. This is why the World Customs Organisation (WCO) has created what is called post-clearance audits to ensure compliance without unnecessary disruptions.”

    According to him, if one succeeds in stealing 10 containers in the port indirectly or directly without paying proper revenue, such person shouldn’t celebrate because under seven years, Customs can still visit and demand appropriate payment of duty. “So, for the single window to succeed and for the revenue they are targeting to be realisable, these factors must be put in place. And above all, the regulatory agencies must be confined to their constitutional responsibility, that is, you are regulating this product. Government should stop giving them targets again,” he stated.

    How the NSW project can deliver on its promises

    Olumide Fakanlu, the National Secretary of the Association of Nigerian Licensed Customs Agents, acknowledged the potential benefits of the National Single Window (NSW). He highlighted that, unlike previous systems such as NICS and ASYCUDA, which focused solely on Customs clearance, the NSW aims to streamline all trade-related processes, impacting government revenue beyond just duties. While Fakanlu affirmed that the NSW system is designed to integrate various agencies, including NAFDAC and NDLEA, into a unified platform for easy access and sharing of requirements, his optimism about the system’s potential benefits remains cautious. He expressed concerns about Nigeria’s readiness for the successful implementation of the system, noting that significant challenges still lie ahead. “We are used to having good ideas, but when it comes to implementation, we start dangling legs. The NSW will facilitate trade, impact the nation’s progress but are we ready?” Fakanlu asked, pointing out that “There are some people who are by the corner, though may not be the majority, but are ready to sabotage the initiative just for their own selfish reasons.”

    The freight forwarder also pointed out that infrastructure and technological readiness remain significant barriers to the successful implementation of the National Single Window (NSW). For example, he noted that some banks have yet to integrate into the Customs’ B’Odogwu system, causing delays in duty collection. “Are we ready?” he questioned, emphasizing that “as we speak, some networks are still not functioning. Let’s start with that—have we built enough network capacity?”

    Fakanlu, while acknowledging that Customs introduced the B’Odogwu system, which will be incorporated into the NSW, expressed disappointment that many banks have still not adopted it. “For the past three months, they have not been able to move forward on the B’Odogwu because the banks are not on board,” he revealed. “It is only in one command in Nigeria that they’ve started, but they haven’t expanded to other commands.”

    Despite these challenges, Fakanlu remained cautiously optimistic, saying, “Let us be hopeful. We will get there.” He reflected the sentiment that while the NSW could revolutionize Nigeria’s trade sector, its success hinges on government commitment, stakeholder collaboration, and addressing deeply ingrained structural issues. Promoters of the NSW project are aware of these concerns raised by operators and stakeholders. For instance, Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, issued a “call to collaboration,” acknowledging that the successful implementation of the NSW would require collective effort. She emphasised that transparency, inter-agency cooperation, and adherence to international standards must remain guiding principles. Dr. Oduwole assured that the Federal Ministry of Industry, Trade, and Investment would fully support the initiative to “build a system that not only facilitates trade but also drives economic growth, attracts investment, and creates opportunities for all Nigerians.”

    Dr. Adedeji of the Federal Inland Revenue Service (FIRS) echoed Oduwole’s views, underscoring that the success of this ambitious project depends on one crucial element: collaboration. “We must dismantle the traditional silos that have hampered our efforts, foster a spirit of shared responsibility, and commit collectively to achieving our common goals,” he said. “This requires a fundamental shift in our mindset—a willingness to embrace change, adapt to new ways of working, and prioritize the national interest above individual organizational interests.” Indeed, if properly implemented, the NSW has the potential to streamline trade, reduce delays, lower costs, and enhance Nigeria’s global competitiveness. However, experts insist that success will depend on strict compliance by government agencies, eliminating systemic leakages, and ensuring full digital infrastructure readiness.

  • Concerns mount as regulatory audit of local airlines begins

    Concerns mount as regulatory audit of local airlines begins

    Plans by the NCAA to conduct a comprehensive audit on local carriers have sparked anxiety in Nigeria’s aviation sector. This move, prompted by recent incidents such as Max Air’s suspension and frequent near misses, aims to address ongoing challenges eroding traveller confidence and ensure long-term growth and safety within the industry. KELVIN OSA OKUNBOR reports

    The drive to enhance air safety systems, procedures and processes is gaining significant momentum as countries around the world, including Nigeria, take proactive steps to strengthen their civil aviation regulations. Experts often view these efforts as an ongoing journey rather than a final destination, requiring all stakeholders in the aviation value chain to adhere to internationally recognized standards set by global regulators, including the International Civil Aviation Organisation (ICAO), the International Air Transport Association (IATA), Flight Safety International (FSI), the Airports Council International (ACI), and other relevant bodies. Therefore airlines, airport authorities, regulators, and service providers invest substantial resources to meet the highest safety standards, ultimately boosting the confidence of air travel users.

    However, the recurring incidents of near-miss accidents in Nigeria’s aviation sector raise concerns about the effectiveness of collaboration among key industry players. In recent years, reports of aircraft overshooting runways, skidding off, and incidents such as runway incursions and excursions have become all too common, dominating industry discussions. As a result, the state of Nigeria’s air transport sector is increasingly becoming a topic of concern and debate, both locally and internationally.

    Intriguingly, some airlines have found themselves at the forefront of the industry’s concerning narrative. In a recurring pattern, certain carriers are forced to temporarily suspend operations due to a series of serious incidents, while the regulatory body is often compelled to take drastic action to prevent what could be an impending accident. Just last week, the Nigeria Civil Aviation Authority (NCAA), the country’s apex regulatory body, revealed plans to intensify its ongoing comprehensive audit of all scheduled domestic carriers.

    Speaking on this development, Mr. Michael Achimugu, the Director of Public Affairs and Consumer Protection at the NCAA, stated: “The safety audit will involve a re-inspection of Max Air’s organization, procedures, personnel, and aircraft, in accordance with the Nigeria Civil Aviation Regulations.” He further explained that the economic audit would evaluate the airline’s financial stability to ensure it can maintain safe flight operations. Achimugu added that the NCAA had begun conducting organizational risk profiles for each of the scheduled operators.

    During this suspension period, a thorough safety and economic audit will be carried out on the airline. He emphasised that the economic audit would assess the airline’s financial health to ensure its ability to sustain safe flight operations. He also noted that the NCAA had initiated organisational risk profiles for each scheduled carrier, including Max Air, which is nearing completion. The audit has become increasingly necessary due to the frequent incidents involving some domestic carriers. Achimugu further stated that the resumption of Max Air’s domestic operations would depend on the satisfactory completion of this audit.

    “Statutorily, the Nigerian Safety Investigation Bureau (NSIB) has initiated investigation into the occurrence. The NCAA will provide the required support to the NSIB in this regard. However, as a result of this incident, Max Air is suspending its domestic flight operations for a period of three months with effect from midnight, 31st January 2025, to allow for an internal appraisal of its operations by its management.

    “During this three -month period, the NCAA will conduct a thorough safety and economic audit on Max Air. The safety audit will entail a re-inspection of Max Air’s organization, procedures, personnel, and aircraft as specified by Part 1.3.3.3(b) of the Nigeria Civil Aviation Regulations, while the economic audit will critically examine the financial health of the airline to guarantee its capability to sustain safe flight operations. The resumption of Max Air’s domestic flight operations will be predicated on the satisfactory completion of this audit. The NCAA is aware of the inconvenience this action may cause intending passengers of Max Air. However, the safety and well-being of passengers is paramount. Thus, the NCAA appeals for patience and understanding while it ensures the protection of passenger rights,” Achimugu said.

    Experts suggest that the latest development comes on the heels of a series of serious incidents involving local carriers. Notably, this is not the first time Max Air has come under the regulatory spotlight. On July 13, 2023, the Nigeria Civil Aviation Authority (NCAA) suspended parts A3 and D43 in the Operations Specifications for the Boeing B737 aircraft type in Max Air’s fleet. This decision was prompted by a series of incidents involving the Boeing B737 aircraft type. One of the incidents occurred on May 7, 2023, when a Boeing 737-400 (registration 5N-MBO) experienced the loss of the number 1 Main Landing Gear (MLG) wheel during a flight from Yola Airport, Adamawa State, to Nnamdi Azikiwe International Airport, Abuja.

    Additionally, on July 7, 2023, a fuel contamination issue was reported in the main fuel tanks of a Boeing 737-300 (registration 5N-MHM), leading to an Auxiliary Power Unit (APU) shutdown on the ground at Yola Airport. Another serious incident occurred on July 11, 2023, when a Boeing 737-400 (registration 5N-MBD) aborted its take-off at Mallam Aminu Kano International Airport (MAKIA) due to high Exhaust Gas Temperature (EGT) readings. On the same day, a Boeing 737-300 (registration 5N-MHM) had to return to Nnamdi Azikiwe International Airport (NAIA) due to a duct overheat indication in the cockpit.

    In response to these incidents, the NCAA assembled a team of inspectors to audit Max Air’s operations. The airline was informed that the audit results must be satisfactory before it would be permitted to resume operations with the affected aircraft type. This is just one example of the NCAA’s regulatory actions. In 2022, the NCAA conducted financial and economic audits of eight domestic carriers to assess their financial health. The regulatory body stressed that the audits were crucial to ensuring the stability of airlines in an industry where passenger confidence is increasingly under scrutiny. The NCAA clarified that the audits would be carried out in phases, with preliminary reports suggesting that while the carriers were not facing major safety challenges, they were struggling with cost-related issues. These included difficulties accessing foreign exchange at the official rate and the rising cost of aviation fuel, which have made it difficult for airlines to cover their operational expenses.

    The NCAA said: “Eight other carriers are undergoing financial and economic audit, and this is done in batches. Right now, it is just a financial and economic crisis, and we will do all we can to ensure it doesn’t get to a safety crisis. The NCAA has grounded a considerable number of aircraft. Though airlines may be undergoing these challenges, the regulator would not compromise on safety.”

    Besides Max Air, the NCAA had conducted audits on the operations of Aero Contractors, DANA Air and others with damning outcomes. On July 20, 2022, the NCAA suspended Dana Air’s Air Transport License and Air Operator Certificate indefinitely after a thorough financial, safety and technical audit. “The decision is the outcome of a financial and economic health audit carried out on the Airline by the Authority, and the findings of an investigation conducted on the Airline’s flight operations recently, which revealed that Dana Air is no longer in a position to meet its financial obligations and to conduct safe flight operations. The NCAA acknowledges the negative effect this pre-emptive decision will have on the airline’s passengers and the travelling public and seeks their understanding, as the safety of flight operations takes priority over all other considerations.”

    During a summit last year organized to support local carriers, the acting Director-General of NCAA, Captain Chris Najomo, dropped a bombshell. He disclosed that if the NCAA were to strictly adhere to the findings of the financial audits conducted on Nigerian carriers, it could expose significant vulnerabilities in their long-term sustainability. To help these carriers remain operational, Najomo emphasised that the NCAA continues to support indigenous airlines, ensuring that safety is never compromised. This commitment, he noted, was the driving force behind the recent regional summit themed: “Repositioning the Nigerian Aviation Industry for Financial Capability and Economic Viability: An Inclusive Regulatory Dialogue.”

    Najomo explained that the summit aimed to strengthen airlines and other service providers, enhancing their operational efficiency and international competitiveness. He said, “Supporting the sustainable growth of the local airline industry while promoting compliance with national and international obligations, and assessing existing local laws and international regulations, is crucial. This will improve funding, financial management, and safety, among other factors.”

    In a related development, Chairman of the Senate Committee on Aviation, Abdulfatai Buhari, announced that the National Assembly is working on a bill that would require Nigerian airlines to operate with a fleet of at least four to five aircraft before starting operations. Buhari stated that this proposed bill is one of the measures to address the capacity issues and other challenges Nigerian carriers face.

    Experts suggest that the ongoing audit of local carriers will provide the NCAA with an opportunity to reassess its policy, particularly the regulation that mandates a minimum fleet size of six aircraft for scheduled airlines. Meanwhile, the President of the National Association of Nigeria Travel Agents (NANTA), Mr. Yinka Folami, voiced deep concern over the increasing number of near-fatal incidents within Nigeria’s local aviation space. He urged all stakeholders to prioritise safety and address operational issues. While welcoming the ongoing audit by the NCAA, Folami remarked that an organizational risk audit for all airlines operating in Nigeria had been long overdue. He urged both airline operators and government regulatory agencies to set aside their differences and collaborate to enhance emergency response systems and ensure passenger safety. “We are concerned about the growing number of near-fatal incidents in the Nigerian aviation space and the impact this is having on the traveling public,” Folami stated. He also highlighted that many of the association’s customers have shared similar concerns, expressing anxiety over the safety of air travel in Nigeria.

    “We urge all stakeholders to unite and tackle the challenges facing the industry to restore confidence in air travel across Nigeria,” said the NANTA president. NANTA also praised the ongoing investigations into the industry’s challenges but stressed the need for proactive measures to ensure the safety and smooth travel experiences for passengers. “We cannot ignore the safety concerns of our customers. We call on all stakeholders to collaborate in minimising risks and maximizing passenger protection.” He added that the Nigerian traveling public is already facing many difficulties, making it essential for the industry to prioritize their safety and well-being.

    In a related statement, a former NCAA chief, who requested to remain anonymous, underscored the importance of auditing local carriers to maintain the integrity of the safety chain. “The NCAA must regularly engage with industry players, especially airlines, to ensure that safety issues do not arise, particularly in situations of financial distress,” he said. He emphasised that failing to address financial difficulties in a timely manner could lead to safety compromises, with airlines potentially cutting corners in their operations. “Aviation is inherently safety-sensitive. If financial troubles are not properly managed, it’s only a matter of time before airlines can no longer meet all regulatory requirements, and safety may be compromised,” he warned.

    The former NCAA official pointed out that the COVID-19 pandemic had not only placed airlines in a difficult position but also revealed several systemic issues. “Many airlines worldwide didn’t survive the pandemic, and some are still grappling with its effects. Just when we thought recovery was on the horizon, issues like foreign exchange shortages and the rising cost of Jet A1 fuel further exacerbated the situation. Despite these challenges, airlines are doing their best under difficult circumstances.” He concluded, “These challenges have increased our workload, but we are committed to maintaining vigilant oversight to ensure safety standards are met.”

    The verdict came as little surprise to many industry watchers, who noted that global carriers have been navigating turbulent financial and economic challenges since the outbreak of the COVID-19 pandemic. A study conducted by industry experts highlights that Nigerian carriers’ efforts to acquire new aircraft have been hindered by the stringent conditions imposed by aircraft manufacturers and leasing companies. Additionally, the prohibitive cost of offshore aircraft maintenance continues to be a major challenge for local carriers.

    However, efforts are underway by several ambitious operators to establish aircraft repair facilities within Nigeria. Ibom Air, Air Peace, United Nigeria, Xejet Airlines, and others are in the process of negotiating with foreign partners to realize this significant goal. In an interview, the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, explained that the construction of the XeJet Flight Support and Engineering facility at the Nnamdi Azikiwe International Airport in Abuja—valued at approximately $10 million—aligns with the vision of the current administration to foster growth and development in local aviation. The government has consistently emphasized the need for a Maintenance, Repair, and Overhaul (MRO) facility, similar to those found in other parts of the world.

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    The facility, to be built by the Chinese Civil Engineering Construction Company (CCECC) over an 18-month period, will feature a Private Business Terminal, a Maintenance Hangar, hotels, conference centres, and more. Keyamo expressed his enthusiasm about having an indigenous airline, in partnership with Nigerian banks, not only constructing an MRO facility but also establishing other critical flight support infrastructure. Keyamo further disclosed that the federal government has attracted a similar project and allocated resources to develop an Aircraft Manufacturing Company in Nigeria. “While the government may not be able to provide direct financial support to airlines, it is committed to creating the right policy and enabling environment for growth and development. We will continue to provide all the necessary support to XeJet,” Keyamo said.

    Keyamo also assured that the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA) would oversee the project to ensure that the facility adheres to all regulatory requirements, making it world-class and capable of attracting international customers. XeJet CEO Emmanuel Iza noted that the facility would offer flight support services to business passengers while improving aircraft maintenance services. He expressed the airline’s ambition to put Nigeria on the map as a hub for aircraft manufacturing. Even if they are not initially able to manufacture entire aircraft, Iza said, their goal is to produce aircraft components, adding that Nigeria has the talent and infrastructure necessary to support such an endeavour. “All that is needed is the right enabling environment,” he emphasised. Iza also revealed that the construction of the facility would occur in two phases: first, groundwork, including the creation of a runway and taxiways connecting the facility to the airport; and second, the construction of the necessary buildings and structures.

    About the Private Business Terminal, the Chairman emphasised that the tarmac would be built to world-class standards, providing private jet owners with top-tier services comparable to those in other developed countries. However, some industry experts argue that the Nigerian Civil Aviation Authority (NCAA) should look beyond cosmetic measures to address the sector’s underlying issues. Captain Roland Iyayi, Chief Executive Officer of Top Brass Aviation, stated that a regulatory overhaul of local carriers is needed, which should include creating multiple licensing structures for airlines. According to Iyayi, the scale of an airline’s operations should determine the type of license it receives. He argued that categorizing all scheduled operators under the same regulatory framework is inappropriate, as it fails to account for the varying needs of different carriers.

    “I believe the NCAA should license airlines based on the type of aircraft they operate,” Iyayi said, stressing that charter operators, scheduled carriers, and airlines using small and medium-range aircraft should not fall under the same operational classification. He proposed that the licensing structure be tailored to the scale of operations, with distinct categories for different types of carriers. These could include air taxis for airlines using small propeller aircraft, regional operators for those with medium-range aircraft, and national airlines capable of nationwide operations.

    Iyayi argued that applying a one-size-fits-all model does not make economic sense. “To drive change, enforcement of regulations is crucial. We need to review policies that hinder growth, particularly the current licensing structure. It is essential to create a regulatory framework that accommodates different niches in the industry. The one-size-fits-all mentality is flawed, and there is wisdom in licensing airlines according to their specific categories,” he emphasised.

    Meanwhile, investigations reveal that the NCAA is intensifying its engagement with local carriers over the implementation of the proposed minimum fleet requirement. The plan to mandate a six-aircraft fleet for scheduled carriers has sparked controversy and divided opinions within the industry. Some experts have expressed concerns that this policy could be detrimental to the sector’s growth. Despite setting 2025 as the target date for enforcement, NCAA’s Acting Director-General, Captain Najomo, has indicated that the regulator is open to adjusting the policy. Najomo stated that there is room for flexibility, ensuring that the implementation of the six-aircraft requirement aligns with the specific operational needs of individual carriers. He said: “We are tweaking that, even though it takes effect from 2025, but we are looking at the regulation very well, whereby it will suit what operation you want to do. If you’re going to go to a full-blown airline, we will look at the regulation and maybe the six aircraft that will come in, but there are some operators who just want to do it, maybe Lagos-Ibadan, Lagos-Ilorin and all that. So, we’ll look at the regulation and say, okay, maybe you should stick back to the three aircraft and see how it is. We want to encourage more people to come into the industry.”

    He said the Federal Government is working on interventions for the sector. The NCAA, he further disclosed, has finalized plans to digitize its operations to enhance its oversight functions. Under this new initiative, the civil aviation regulator will implement digital platforms for processing approvals, licenses, recertification renewals, and addressing passenger complaints. On the benefits of the training and the new portal, Najomo explained: “The portal will allow for real-time monitoring of airline performance, in addition to tracking passenger handling procedures during check-in, boarding, disembarkation, and other aspects of the travel experience. The data collected will provide regulators, service providers, and the public with an accurate gauge of airline performance. Consumers will be able to view performance details on the official NCAA website, enabling them to assess the best and worst-performing airlines from a customer service perspective.”

    He added: “The portal has yet to be launched, but we are ensuring that the necessary training is in place. We’ve already trained our staff, and it’s crucial to engage all stakeholders to understand how the portal will function. Once operational, this system will benefit everyone involved.” According to Najomo, the new platform will not only expedite the resolution of passenger complaints but will also serve as a barometer for evaluating the performance of both local and foreign airlines operating in Nigeria. He emphasised that the capacity-building program aims to equip airline personnel and the regulatory body with the skills needed to address common passenger complaints, such as flight delays and cancellations. To further this goal, Najomo revealed that the NCAA has undertaken the digitalisation of much of its operations using cutting-edge information technology applications.

    Najomo also highlighted the ongoing efforts by Mr. Keyamo to create a favourable environment for local carriers to acquire aircraft. “The Minister has been actively engaging with aircraft manufacturers such as Boeing and Embraer to secure dry leasing options for our airlines,” he said. “This initiative is progressing well, and we expect tangible results soon, which will enable our airlines to expand their fleets.”

    However, the proposed fleet policy has faced criticism from some sector experts. Engr. Cyril Obuah, former Director at Azman Air, argued that raising the minimum fleet requirement to six aircraft for start-up airlines would discourage investment and could prove counterproductive. Obuah pointed out that many of Nigeria’s past and present airlines, including ADC, Kabo, Afrijet, Belview, Slok, and Azman Air, started with fewer than three aircraft when the country’s economy was not as challenging as it is today. He argued that the collapse of many defunct carriers was due to a poor economy, exchange rate volatility, and corrupt leadership, rather than mismanagement, as often claimed. Obuah stressed that the NCAA should focus on encouraging the government to support the growth of more airlines, particularly after the failed attempt to launch Nigeria Air, the planned national carrier. He warned that the new regulation could lead to increased unemployment, particularly for aviation professionals, as many would struggle to find work under the new fleet policy.

    He further contended that flight delays and cancellations are not necessarily caused by the number of aircraft in a fleet. “The NCAA is already dealing with many aviation professionals who are unemployed,” Obuah said. “This new law will only worsen the situation. The NCAA alone cannot absorb all these jobless professionals. Instead of implementing policies that harm the economy, we need laws that will stimulate growth.” He concluded, “Delays and cancellations are not solely due to the number of aircraft an airline operates. There are many other factors. This law, in my opinion, will be regretted.” Capt. Mohammed Badamasi, a former pilot with the defunct national carrier Nigeria Airways, also urged the NCAA to reconsider the new regulation, despite the challenges faced in the past.

    Badamosi emphasised that the NCAA should focus on monitoring airlines to ensure they operate within the limits of their fleet size and avoid overextending by flying more routes than they can handle. He also criticized the NCAA for not consulting stakeholders before formulating the regulation, pointing out that it could face challenges in the National Assembly. “Why is it that the NCAA is no longer engaging with stakeholders to brainstorm on issues like this before enacting a regulation that affects the entire industry?” Badamosi asked. “Rules should not be made to make life difficult for those who are meant to follow them. If the NCAA is unwilling to correct this mistake, can’t it be challenged in the National Assembly?”

    Meanwhile, Frank Oruye, an aviation stakeholder, shifted some of the blames for the industry’s challenges to Nigerian airline operators. He suggested that the minimum fleet requirement for start-up airlines should be four aircraft to increase their chances of survival. Oruye also critiqued Nigerian investors for their tendency to operate independently, rather than pooling resources to build a more robust industry, like how European airlines collaborate. He explained: “New national airlines have been created all over Africa, each operating only a few aircraft—often less than what a single European airline would own. Europeans, however, pool resources for maintenance, aircraft specifications, and spare parts procurement, benefiting from economies of scale. African airlines, on the other hand, tend to add just one, two, or three aircraft, contributing to GDP and profits in Europe rather than to the African continent.”

    In contrast, Group Capt. John Ojikutu (rtd) supported the new regulation. He suggested that airlines unable to meet the six-aircraft minimum could opt for charter operations. Ojikutu further recommended that airlines partner or interline with each other, thereby reducing delays and cancellations, and suggested that some airlines collapse due to mismanagement and corruption. “No, it was not a bad economy that led to the collapse of early airlines—it was poor management,” Ojikutu asserted. “It wasn’t the exchange rate either, but institutional corruption. Take a look at airlines such as Kabo, Okada, DAS, Gas and others. They flew over 2,000 sorties for the Economic Community of West African States Monitoring Group (ECOMOG), earning $50,000 to $120,000 per sortie, depending on the aircraft used. Airlines such as ADC with just four aircraft, carried an average of 25,000 passengers monthly. The real issue was poor management and corruption, not the economy.”

    Despite the challenges, there is optimism in the horizon. The recent signing of the Cape Town Convention Protocol on Mobile Asset Protection offers a new avenue for Nigerian carriers to secure aircraft leases. This breakthrough was highlighted during a high-level meeting at the Aviation Economic Conference in Dublin, where Afreximbank expressed its readiness to support aircraft financing for Nigerian airlines. Afreximbank’s commitment to supporting Nigerian carriers came after a positive discussion led by Mr Keyamo. Helen Brume, Afreximbank’s Director and Global Head of Project and Asset-Based Finance, underscored the bank’s 30-year track record in promoting African trade and its experience with airlines such as Arik Air, Kenya Airways, and TAG. Brume highlighted the importance of aviation infrastructure in improving the competitiveness of African carriers.

    Afreximbank also announced the launch of a leasing subsidiary, with plans to deliver 25 aircraft for dry leasing to African airlines.

    This initiative aims to enhance the operational capacity of Nigerian airlines, particularly for domestic and Bilateral Air Service Agreement (BASA) routes. Praising Nigeria’s progress, Lereece Rose, Senior Director of Finance at Boeing, noted that Keyamo had significantly raised the country’s score in the Cape Town Convention, from 49.5% to 75.5%. This achievement reflects Nigeria’s commitment to fostering a favourable environment for aircraft financing and leasing.

    Keyamo reaffirmed the government’s dedication to facilitating partnerships that will enable Nigerian operators to access financing solutions, thus stimulating growth in the aviation sector, and improving service delivery on both domestic and international routes. To ensure these discussions result in actionable outcomes, a committee has been established to guide the collaboration. The partnership with Afreximbank marks a promising step forward for Nigeria’s aviation sector, signalling the potential for transformation and growth.