The Nation Newspaper

Category: Special Report

Why Tinubu must stand firm on tax reform bills

Emmanuel Umohinyang, a seasoned social commentator, human rights activist and lawyer, played a pivotal role in the success of the All Progressives Congress (APC) during the 2023 presidential elections. As the Convener of the now-defunct Re-elect Buhari Movement (RBM), he was at the forefront of mobilising support for President Bola Tinubu’s victory at the polls. In this interview, Umohinyang reflects on the performance of the Tinubu administration, concluding that the opposition to tax reform bills stems largely from a lack of critical thinking and mental laziness among those criticising the proposals before the National Assembly. The human rights activist also shares his thoughts on various contemporary national issues. Associate Editor ADEKUNLE YUSUF brings excerpts:

I can say the government has done fairly well. Let me also say it has been a bumpy road. The government started with polices that successive administrations have been running away from. If you knew Tinubu as governor of Lagos State, he took some of the toughest decisions ever taken by his predecessors. In fact, he made nonsense of the Federal Government led by then President Olusegun Obasanjo. One of these was the ocean surge at the dreaded Bar Beach which the Federal Government was using to milk the treasury of the country back then. They used to sand fill the place every three weeks and shortly after, the ocean comes to clear everything. It was Bola Tinubu’s initiative to involve construction giants to deal with the issue by creating wave breakers.

Today, you can attest to what Ahmadu Bello Way has become, a place liveable by Nigerians and foreigners, unlike in the past. Yes, the Tinubu administration started with some very stringent policies that have not made the administration popular in the eyes of Nigerians. One of these is the removal of petrol subsidy which he announced on the first day of his inauguration and the forex equalisation where the official and black markets were merged. Naturally, those two policies will affect the purse of the common man. And the president had said if he had any other option, he would have taken such option. I also remember the issue of fuel subsidy removal had always been unpopular. In 2012, I was one of those who occupied Ojota against the (Goodluck) Jonathan administration. People have always mistaken that protest against the issue of subsidy. We never protested against removal of fuel subsidy; we protested against the corruption embedded in the subsidy regime, wherein many of those importers were doing round tripping in connivance with corrupt Customs officials at the ports.

Unlike in the past, governors are now going home with billions of naira as monthly allocation. If we had a well-structured system at the state and local government levels, the humongous resources available to them today would have impacted the people, but the Federal Government then had also been extravagant buying aircraft, yacht and exotic vehicles. I think the misconception has always been what people want to hear. I am not aware that there is any budget of the Federal Government that the issue of yacht was ever referred to and people must come to understand that what was presented was a yatch that was propagated by the Naval authorities and people claimed the president wanted a yacht for his comfort. That is not true. It was part of the equipment the Navy needed to function. People have also made reference to the presidential jet. I think the president was not really interested in any presidential jet. It is because of the state of the available aircraft. The aircraft are what you will not even want your enemy to fly in. It is a case of having many aircraft with none in a flying state. What he did was to sell some of the aircraft to buy a replacement. What was even procured was not a brand new aircraft. It was not even his desire to buy another aircraft. No citizen in the world wants to hear that his president died in an aircraft. I think these are security issues, and you must safeguard the sovereignty of your country. The president represents that sovereignty.

His views on some reform policies that have brought economic hardships

Honestly, I am one of those who have seen pain in the lives of Nigerians. So many Nigerians are struggling to feed on a daily basis. This is reality. I have visited the markets myself and I have also shared what the government should do in the New Year. I think Mr. President is working on that. We also cannot do without the partnership of the state governments and the local governments. Now that the local governments are operating with full autonomy, one is expecting them to key into the drive of the Federal Government in reducing anguish, pain and poverty in the lives of our people. The issue of hardship is real, the issue of poverty is real, the issue of suffering of Nigerians is real. The government is doing everything to take them out of pain. Insecurity is expensive because it requires a lot of money to contain. What is most important is the judicious use of available resources because there is no substitute for human life and the president has a constitutional duty to maintain lives and property. So, anything the government of Bola Ahmed Tinubu will do to protect the lives of Nigerians, he will do, no matter the cost; no matter what it will take.

Insecurity and the capacity of government to win the war

How we address the issue still goes down to the issue of agriculture. The government must be deliberate. The federal and state governments must be intentional about it and sufficient funds must be put in place to drive those mechanised processes. If not, it will be a case of removing fuel subsidy and leaving a vast majority of Nigerians in a basket of poverty. This is what the government must do, and do it deliberately and intentionally, to take the people out of poverty and return them to winning ways.

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A recent report indicated that the payment of ransom to kidnappers and bandits hit the trillion of naira mark as a sign that a lot still has to be done in the area of security in the country. Insecurity is a universal concept. There is insecurity in Benin, Niger, Ghana, Togo and Cameroun. Nigeria is surrounded by countries with very porous borders. However, we are working with our partners in these countries to see to it that these issues are addressed. You can agree that the issue of Boko Haram has been brought to minimal and controllable level. Banditry has also been tackled. I have always said that insecurity is not something you address over the shelf. The cost of one bomb is over $200,000 and so if government drops four of these bombs, which is close to the budget of a state.

Opposition to the Tax Reform Bills

I think the resentment has to do with knowledge gap. There is a misconception from some of our brothers from the North. It is not the North as a region because those resisting the bills are minute in number, powerful though. The tax reform is targeted at improving the life of the common man, whether in the South or the North. A lazy governor will definitely resist such. Why? It is because the tax reform is premised on hard work of individual states. If you are bringing so much to the table, that reform favours you, but for governors who want to go to Abuja for allocation and go back home and relax without doing anything. Such governors will not be happy. When you look at the context of those tax reform bills, you will see that they speak positively to the average man on the streets. It has taken the yoke of tax from him and placed the benefits on hardworking sub-regional governments. The tax is more about where the product is consumed, not about where the product is produced. It will trigger states to work more on consumption level in their states.

The poor are being exempted from paying tax. Where is the problem coming from? The majority of poverty index come from the North. Why are they saying the tax reform bills are anti-North when the poor will not be taxed? And the rich are the ones to pay tax. It is a case of taking from the rich to service the poor. But the rich are trying to revolt against the poor by driving the wrong narrative that the tax reform bills are anti-North. And they are trying to do this because they know that most of their followers will not have the luxury of time to look at the bills. But I am also happy that some of leaders from the North are now trying to drive the right narrative.

Why government can’t allow illegal modular refineries

Per adventure you have not seen what they call an illegal modular refinery is all about; it is nothing near a refinery. It is just somebody boiling oil using firewood and I am sure you can’t put such a thing in your car. I know you will not want to do that. When people are saying encourage them or legalise them (illegal modular refineries) to address the high cost of petrol, it is like saying legalise illegality. And as soon as you do that, you have opened the flood gate for theft of crude. It will be ridiculous of government to do that. People are saying why is the government damaging them (illegal refineries)? Before you know it, the corruption you are trying to solve will overshadow it.

I am not one of those people who want to smooth-talk a government that is not performing; I am not in that category. The late Chief Gani Fawehinmi taught us to stand for what is right, even if it means standing alone. Even when we are supporting a government, when that government is not doing well, we will say it. And we will say it openly and confront the government with it; we don’t need to hide behind something to say it; we must say it openly. Are we happy with what is happening? No, we are not. But we are seeing that there is a renewed hope, which is achievable if we can be patient with this government.

I fell in love with the (Muhammadu) Buhari administration not because he was going to do everything perfectly. By the way, perfection belongs to only God. What I have told the President is that, and he has accepted, is that the assets and liabilities of the Buhari administration are part of his own administration. All he needs to do is to ensure that what were those pitfalls the Buhari administration made that he can avoid. I think President Tinubu should sustain emphasis on roads construction and rehabilitation and rails because we need to open up more states. That is why I am happy with the Lagos-Calabar that he is doing. The Sokoto, Badagry, Jebba roads and many more the administration is doing. He must also avoid the mistake of Buhari, which is giving people assignment and going to sleep. That is why we have the Emefieles of this world who ran riot with public fund.

What will make him to withdraw his support for President Tinubu

The very minute the Bola Ahmed Tinubu administration deviates from the people-oriented programmes and policies it has started, I will withdraw my support. As long as his administration continues to pursue policies that can help to build a prosperous future for Nigeria and Nigerians, I will continue to support him and I have no regrets about it.

January 16, 2025
Niger leverages digital innovation in social intervention

When the Jonathan administration introduced the Bank Verification Number (BVN) on February 14, 2014, it was said to be a game changer in preventing financial fraud. Little did people, especially the rural dwellers, realise that lack of it could prevent people from being beneficiaries of government’s social interventions. JUSTINA ASISHANA reports

Despite the Niger State Government’s commitment to lift citizens of the state in terms of providing social intervention, a 50-year-old Munirat Hamisu, a petty trader in Tegina in Rafi Local Government Area of Niger State feels unhappy. Hamisu is not happy that she has not benefited from an ongoing social intervention programme launched by the state government.

The Niger State Community Action Recovery and Economic Stimulus (NG-CARES) Result Area 3 Platform programme launched in 2023 is under the state’s Small and Medium Enterprises (SME) Agency.

Its main purpose is to help micro; small and medium businesses grow and attain sustainability.

Managers of the programme, a World Bank-supported initiative, are now using digital platforms to distribute financial grants to the over 20,000 direct beneficiaries, with nearly ₦3 billion disbursed so far.

But for Hamisu to benefit, she needed to have a Bank Verification Number (BVN). “It is not as if I do not want to benefit from the programme as I know some people who have benefitted, and I know what N50, 000 would do for my business, I currently do not have a BVN because I do not have a bank account. I am seriously not inclined to do all these banking things as we do not have banks in this area unless you go to Kontagora or Minna. I prefer keeping my money with me,” she said.

Lawal Mukar, who charges phones and sells recharge cards in Mariga Local Government Area, is one of the beneficiaries of the programme. But, he recounted how challenging it was for him to open an account in order to benefit from the programme.

“The N50, 000 went a long way to help me. Imagine that I miss the opportunity just because I do not have a BVN and a bank account. I was able to buy another board with switches for my phone-charging business and buy recharge cards for sale. I now have enough capital and extra money to take care of my family,” he said.

In Nigeria, digital payments continue to grow at a rapid pace and are on track to replace cash as the norm for daily payments. In its bid to encourage people to get a national identifier, federal and state governments are now using digital payment systems to distribute funds and social benefits.

The benefits of the BVN

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The Bank Verification Number was introduced in 2014 to curb financial fraud and improve accountability within the banking system.

The NG-CARES programme’s use of BVN as a unique identifier prevents duplicate payments and creates a digital footprint for beneficiaries. This digital identity infrastructure isn’t just about preventing fraud – it’s laying the groundwork for beneficiaries to access other financial services in the future.

“This requirement for a BVN is a double-edged sword,” Tunde Akande, a financial analyst said.

“On one hand, it ensures that funds go to legitimate beneficiaries. On the other, it excludes those who are most vulnerable—people the programme is supposed to help,” he added.

The Director-General of the Niger State Small, Medium and Microfinance Agency, Ahmed Shu’aibu Gwada, who spoke told The Nation that anyone who registers and does not input his or her BVN would not get the fund.

This requirement has created a natural pathway for informal business owners to enter the formal banking system.

“Honestly, if one registers and one ddidn’t have an account number, one can’t get funds. This is because the funds must be traced to you. Anybody that you see who has received this money applied and passed through that stage must have an account number.

“The reason for demanding the BVN is to ensure that there is no double-dipping. This means that one person cannot use two different accounts to get the benefit as one’s BVN is linked to all of one’s accounts.

“One person cannot get it twice, wherever you are in the state, as long as you have gotten it, you can’t get it twice. That is why the system makes use of the bank verification number. The moment you are deemed qualified, you’ve got the money; you cannot get it again.

“Every applicant must have an account number. If one doesn’t have one, as one applies, we encourage one to go and have one. It is because the payment must be made through one’s account so that it can be traced to one. There’s no form of table payment. Table payment is not encouraged in this system,” he said.

Digitising access to financial empowerment

Unlike the previous interventions that involved traditional methods that rely on manual applications, the NG-CARES programme is fully digitised.

The applicants are made to register online by providing detailed information about their businesses, which the system uses to categorise them into appropriate grant tiers. Amounts range from ₦50,000 to ₦600,000, depending on business size and operational needs.

The digital approach is not only more efficient but it also eliminates barriers such as favouritism and corruption.

“The system is open,” Gwada said. “You apply, move through the stages, and if you qualify, you are paid directly into your account.”

Gwada explains that the digital application system ensures fairness and accessibility, removing bottlenecks such as favouritism or corruption.

“It is a system that is open,” he said. “Applicants move from one stage to the next until they get to the final stage. This approach is not only transparent but also inclusive.

“People apply online, though we have been able to guide them through some of these business centres around. We have also tried enlightened owners of the business centres so that when people approach them to help them to register online; they can do it for them such that they will be able to pass through the different because there are different stages. “So, people apply online, and when they do, it is the information they supply during the registration that naturally takes one to the category of the amount of money one gets as a support.”

The programme’s backbone is a digital application system powered by the Bank of Industry (BOI), which serves as a technical partner and financial intermediary. This digital infrastructure marks a decisive shift from traditional table-payment systems that often breeds corruption and inefficiency.

Reaching the unbanked

Approximately 40 per cent of Nigerians remain unbanked, according to data from the World Bank. These are primarily rural dwellers, women, and low-income individuals who lack access to banking services due to distance, illiteracy, or distrust of financial institutions.

According to the MD/CEO of the Nigeria Inter-Bank Settlement System (NIBSS) Premier Owoh, 64 million people have enrolled for the BVN as of October last year.

However, the exclusion of unbanked individuals from the NG-CARES programme has become a source of concern for activists and development experts as they believe that several people in the rural areas who need it would not benefit because they are not banked.

“What we’re witnessing is systemic discrimination against the rural poor,” said Hafsat Ibrahim, a Social Policy Advocate.

“If the government wants to uplift these communities, it must address the root causes of financial exclusion instead of relying solely on cashless systems,” Ibrahim said.

For women in rural areas, the challenges are even more pronounced. Many are discouraged from opening bank accounts due to cultural norms or lack of identification documents. The disparity may widen the gender gap in access to financial and social support systems.

The SME agency states that it has set up community-level desk officers in local government secretariats and enlisted community representatives identified as ‘pointers’ to ensure that those in rural areas can access the programme while awareness is being created through media campaigns in Hausa, Nupe, and Gwari to further broaden outreach to non-English-speaking populations.

“We’ve consciously targeted cooperatives in rural areas, to ensure that every ward is represented in our statistics,” Gwada noted.

Beneficiaries without bank accounts are encouraged to open them, with the Bank of Industry acting as the technical partner for disbursements.

“The disbursement process involves partners such as BOI, which is our technical partner. The money is not with the SME agency. The monies are warehoused with the Bank of Industry. They are the ones that deploy the software that we are using for the application, for the processes, and even the disbursement. Ours is to monitor and ensure that things are moving fine.

“But, at the end of the day, we are the ones to finally give the approval that those who have scaled through can be paid based on the approval of the state government. So, the monies are paid by the Bank of Industry. One cannot get paid if one doesn’t follow the process of application, nomination, vetting, and all that. So, we don’t pay directly,” Gwada said.

Digital payments do not only enable transparency but also brings the unbanked into the financial system. This requirement ensures that funds are traceable and prevents duplicate applications, a problem that often plagues traditional programmes.

Experts argue that the government must find a middle ground to ensure transparency and inclusiveness. Solutions could include mobile money platforms, which allow individuals to access financial services without traditional bank accounts, or community-based registration centres to help rural dwellers obtain BVNs.

“There needs to be a deliberate effort to bridge the gap between the unbanked and financial systems,” said Akande. “The government should collaborate with financial institutions and civil society groups to develop solutions that are innovative and accessible.”

Fatima Abdullahi, a widow and mother of three, shared her frustration: “I don’t have a bank account because the nearest bank is two-hours drive away. Now, I can’t access the funds to buy seeds for the planting season. How will I feed my children?”, she queried.

This report is produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.

January 14, 2025
Cross River’s journey to economic development, by Otu

When Bassey Edet Otu assumed power as the Governor of Cross River State, he promised to put the people first in all journeys towards a prosperous and glorious future. The governor spoke with journalists in the state’s developmental drives, encompassing road construction, educational transformation, welfare programmes as well as the economy. interview with journalists. Associate Editor ADEKUNLE YUSUF was there.

When we came in as a government, infrastructure has been a focus for us and, to some extent; we have tried to make sure we fix all the loopholes in that sub-sector.

In that aspect, we have done quite a number in the state capital with a focus now in the Central Senatorial District covering Yakurr and Ikom, as well as in the Northern Senatorial District also covering Ogoja and Yala. Our intention is to open up the major roads that would lead to where we have agricultural produce, and where there are major commercial activities.

Industries

We inherited industries built by the immediate past administration. We are reviewing the statuses and concessionaire agreements. We know that there were some hiccups, most of them financial. We have tried to bridge the finances by ensuring that we are good in terms of venture capital to support some of the concessionaires, especially where it was discovered that some were not strong enough.

One of the industries we were sure not to allow any hiccups stall its operations was the Calabar Pharmaceutical Company (Calapharm). We have brought some experts in the pharmaceutical industry to take a second look at the set up. We are optimistic that once they get all their certifications from the different regulatory agencies, they will begin to roll out.

Interventions in agric sector

We recognise the fact that the state has a comparative advantage in agriculture, including but not limited to food and cash crops, aquaculture, poultry and animal husbandry. So, it is only proper that the sector receives adequate attention.

We are already harvesting our rice. We are also into cocoa and cassava, for which the Federal Government is willing to partner with us. We are looking to populate all the agro-value chains. We have restructured the sector for maximum outflow of benefits. We have done a number of soil inspections and investigations, and have gotten digital reports. We have over 200 Cross Riverians sent out for training and as they come back, we will fix them up.

We are addressing our food security challenge proactively. We are very passionate about agriculture and we will deliver.

Education

We inherited a moribund state library. And as a state desperate to reposition our educational system, there was an urgent need to change the ugly shape of our library to enhance not only research but also to improve the reading culture in our people.

Generally, we have restructured our educational institutions in a way that we would be able to produce professionals in terms of middle level manpower. My administration has been able to ensure that we enrolled about 16,000 of our students for the West African Examination Councils fully paid for by the government and amounting to over half a billion naira. Even in our medical schools, we have begun to set up programmes that will rearrange that sector.

In terms of creating an environment conducive to teaching and learning, we put in about three billion naira last year, and this year we have increased it to about seven billion naira to ensure that we revive all our schools. We have provided more than enough chairs. Our population is also multiplying daily.

The civil service

This administration has keyed into the 70, 000 minimum wage, despite the burdens we are carrying at the moment. We have placed a lot of priority on the civil service. We are introducing training and other things to make sure that we have top-class civil servants that are able to deliver on their mandate. Promotions were not done in many years, we did it, paid arrears, and outstanding gratuities are being paid in phases to boost their morale.

Re-establishing clean and green environment

As a government, we have been intentional in our effort to reclaim our clean-and-green status. We are also sparing no effort to take the state to its pristine condition and where it was as the cleanest in Nigeria.

Our ranking as 5th on fiscal performance Index by Budgit

Achieving this feat was not by magic. It was by deliberate dint of hard work and fiscal responsibility on the part my administration. We have been working very hard to make sure that we tidy up our financial records and make sure that we are clean.

We are also doing quite well in terms of our Internally Generated Revenue IGR. We are almost done with automating our tax system. We have straightened out financial system.

The Bakassi Deep Seaport

High-powered projects such as the Bakassi Deep Seaport take time to get it on stream. My predecessor had a deep vision in initiating the project. Upon my assumption of office, I made an unwavering commitment to ensure its realisation. The actualisation of the project will be based on public private partnership (PPP). This is one project that is capable of bolstering the state’s economic prosperity.

Work is currently going at the site and we are doing our best to ensure that by the time full activities resume, we would have the capacity to keep the project going.

Transportation

Mobility is a challenge to the people of Cross River State, especially given the deplorable state of federal roads. That is why the idea of a rail line to link the north to the state capital was a welcome one. We have studied the feasibility and the company investing in the railway project has just completed the survey and resumption of payment of compensation would commence soon.

Security

Safety is a paramount need of the people of at all times, especially in the face of crime-related challenges such as robbery, kidnapping and the like. People will always feel quite safe and secured as far as this government is concerned. We have invested quite a lot to ensure that the state is safe for everybody. All of the prevalent security issues before now have all been dealt with. When you go to hitherto volatile areas such as Bakassi, Akpabuyo, Ikom, and so forth, people now sleep more peacefully and in some places, people stroll out in the middle of the night.

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Obudu Ranch, Airport

The Obudu Ranch Resort is one of the most popular places in Cross River State. Its serene ambience has been compared to what obtains in Europe, hence its reference as the ‘Switzerland of Nigeria. The establishment of a cargo airport by the last administration will put the ranch in the eyes of the world the more.

So far, we have spent well over eight to 10 billion naira in terms of investments in the airport. We were almost done when it was discovered that there was water seepage when the inspectors came.

For the Ranch, it is now looking better but not the standard we expect. The challenge has to do with the airport and the road. We are looking to sort these out as soon as we can. We have some of the biggest hospitality institutions that would be coming on board. We have gotten some funds to ensure uninterrupted electricity.

Resurrecting Tinapa

We have done a lot of underground work for Tinapa, with regard to having AMCON relieved of the asset. Our offers have been accepted, the funds are ready. It is just the Central Bank that is still ensuring that due process is complied with. But Tinapa is already within our purview. We are trying to add a Trade Zone to make it more active. We already have a textile factory coming up there and some entertainment facilities on the other side. I believe that Tinapa would become active not too long from now.

Final words

I want to assure Cross Riverians that we would continue to do our very best. Though it is not my style to blow my trumpet, I believe we have made quite a difference and people will see the difference as we continue to go along. Our revenue streams have increased. Our GDP has gotten better; we have added to all areas you can think off, even our health. We are actually making visible progress. All we want from the people is prayers, and for us to keep loving one another and believing that we can be greater together.

January 9, 2025
BOI’s capital raising ignites hope for industrial financing

The €2 billion fundraise at BOI will enhance its interventions, deepen developmental impact, bridge Nigeria’s $35 billion annual funding gap, and support critical infrastructure financing, reports Assistant Business Editor, COLLINS NWEZE

The international financial markets continue to play a crucial role in mobilising funds for private institutions to achieve their operational objectives. For the Bank of Industry (BOI), a significant milestone was reached in 2024 when it successfully raised €1.879 billion to support critical infrastructure projects. This fundraising is one of the largest amounts ever secured by a Nigerian or African development finance institution (DFI). This funding is not only set to bridge Nigeria’s $35 billion annual development financing gap but also plays a pivotal role in advancing the BOI’s Strategic Plan for 2025-2027.

A key focus of this plan is to significantly expand BOI’s financing across various sectors to address Nigeria’s pressing developmental needs. The funds raised will strengthen the bank’s capacity to fulfil its mandate effectively. Through this fundraising, BOI aims to tackle the infrastructure challenges that elevate the cost of doing business for manufacturers in Nigeria. Given that infrastructure finance requires long-term, high-value funding, this new capital will be instrumental in supporting sustainable development and improving the business environment across key industries.

The historic success of this transaction has bolstered confidence in BOI, enhancing its capacity to access additional sector-specific funds. This includes financing targeted at vulnerable sectors such as gender, youth, MSMEs, agriculture, and ESG (Environmental, Social, and Governance) initiatives, among others. With this newfound financial flexibility, the bank is better positioned to programme and fund impactful projects that will drive Nigeria’s long-term industrial development. The breadth and scope of funding now available to BOI provide the bank with the opportunity to pursue transformational projects more effectively.

From a risk management standpoint, these funds will aid in mitigating credit risk, facilitating longer payback periods, and leveraging strategic partnerships to de-risk lending to sectors like MSMEs and gender-focused initiatives. This will expand access to finance for underserved segments of the economy. Moreover, this funding will strengthen BOI’s liquidity by establishing a robust funding base to support its financing operations. It will also contribute to stabilising inflation, foreign exchange, and overall economic conditions. The capital raised will support the implementation of internal strategies, including digital transformation, and further solidify BOI’s reputation as a trusted partner with a proven track record as an impact investor.

Additionally, Green, Climate, and Environmental Financing have become central to BOI’s new strategic focus. The €1.879 billion raised will enable the bank to deepen its engagement in these vital areas. Experts argue that leveraging private capital for public infrastructure needs reduces the financial burden on governments while promoting greater efficiency and fostering innovation within the economy.

Performance indicators

The year 2024 will be remembered as the most successful in the Bank of Industry’s (BOI) 65-year history, marked by several unprecedented milestones. The newly raised funding will significantly bolster the bank’s balance sheet, increasing it by an impressive N3.3 trillion, bringing the total to a projected N7.1 trillion, up from N3.9 trillion in 2023. These remarkable achievements highlight BOI’s ability to play a crucial role in addressing Nigeria’s industrial financing challenges.

Boasting a track record of sound management, BOI has consistently earned investment-grade ratings from Fitch and Moody’s since 2015. This ongoing recognition underscores its reputation as one of Nigeria’s best-managed government institutions, reflecting the strength of its governance, financial management, and the global confidence in its development mandate. The €1.879 billion syndication not only attracted exceptional interest from a diverse range of international institutions across various countries but also saw the participation of over 10 new international investors, particularly from the Middle East and Asia. This overwhelming demand underscores BOI’s growing reputation as a trusted partner in driving Nigeria’s industrialisation and economic transformation, while also highlighting its increasing appeal to investors from emerging markets.

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According to analysts, BOI’s successful raise of €1.879 billion in 2024 is a clear reflection of the strength of its financial standing. The 187.9% oversubscription of the syndication underscores the effectiveness of the innovative financing structure, which featured a dual-layer guarantee model, leveraging support from the Africa Finance Corporation (AFC) and the Central Bank of Nigeria (CBN) to optimize risk-sharing. This strategic structure enabled BOI to secure interest rates significantly lower than those typically applied to Nigerian debt instruments, resulting in an estimated savings of 3.6% annually (or approximately N295.7 billion over the three-year tenor). These favourable terms will reduce borrowing costs for the real sector, making Nigerian businesses more competitive.

Key milestones achieved through BOI’s landmark fundraise include it being the largest single transaction in the bank’s 65-year history, the largest deal ever completed by a Nigerian development finance institution, the largest deal by any Nigerian financial institution, and the largest transaction by any African development finance institution, thus setting a new benchmark. Olasupo Olusi, the Managing Director/Chief Executive Officer of BOI, highlighted that the favourable pricing and terms of the raise will ensure the availability of much-needed low-interest, long-tenure funds for Nigeria’s expanding private sector, in alignment with the vision of President Bola Ahmed Tinubu.

Olusi further emphasised that the bank’s expanded balance sheet will strengthen its ability to intervene and operate more effectively, enhancing its developmental impact. It will contribute significantly to addressing Nigeria’s annual development financing gap of over $35 billion, support the implementation of BOI’s Strategy for 2025-2027, and bolster the bank’s capacity to fulfil its mandate.

What the funding means for MSMEs

This significant influx of capital is earmarked for lending to Micro, Small, and Medium Enterprises (MSMEs), a sector that plays a critical role in Nigeria’s economic development. In a statement, BOI announced that the new funds have substantially strengthened the bank’s balance sheet, boosting it from N3.9 trillion in 2023 to a projected N7.1 trillion by the end of December 2024. The syndication attracted considerable interest from a broad range of international investors, with over 10 new participants, particularly from the Middle East and Asia. This strong engagement underscores BOI’s reputation as a trusted partner in Nigeria’s industrialisation journey and highlights its growing appeal to investors from emerging markets.

The syndication was oversubscribed by an impressive 187.9%, showcasing the innovative financing structure achieved through a dual-layer guarantee mechanism. Supported by the Africa Finance Corporation (AFC) and the Central Bank of Nigeria (CBN), this mechanism enabled BOI to secure interest rates significantly lower than those typically associated with Nigerian debt instruments. This translates to savings of approximately 3.6% per annum, or an estimated N295.7 billion over the three-year tenor.

The bank emphasised that these favourable terms will reduce borrowing costs for the real sector, enhancing its competitiveness. Financial analysts regard this achievement as a testament to BOI’s sound management and its consistent investment-grade ratings from Fitch and Moody’s since 2015. These accolades reinforce BOI’s reputation as one of Nigeria’s best-managed government institutions, reflecting its high standards of governance and financial stewardship. Additionally, President Tinubu’s inclusion of BOI in his New Year message as a key promoter of the National Credit Guarantee Company (NCGC) will allow the bank to more securely deploy the substantial resources it continues to mobilise from international financial markets. By sharing risks with the NCGC, BOI will be able to guarantee loans, particularly to MSMEs, under the new scheme, facilitating greater disbursement of loans to Nigeria’s private sector.

According to President Tinubu, the National Credit Guarantee Company (NCGC)—which is expected to begin operations before the end of the second quarter—is a partnership involving various government institutions, private sector entities, and multilateral organisations. The President emphasised that this collaboration will strengthen confidence in Nigeria’s financial system, expand access to credit, and support underserved demographics such as women and youth. Ultimately, it will drive economic growth and improve living standards across the nation.

As one of the major promoters of the NCGC, BOI will be able to deploy the substantial resources it continues to mobilise from international financial markets with greater security by sharing risks with the NCGC. The guarantee of BOI loans, particularly to MSMEs, under the new scheme will allow the bank to safely disburse more loans to Nigeria’s private sector. “In this new year, my administration will further consolidate and increase access to credit for individuals and critical sectors of the economy to boost national economic output. To achieve this, the federal government will establish the National Credit Guarantee Company to expand risk-sharing instruments for financial institutions and enterprises.”

The National Credit Guarantee Company (NCGC)—which is expected to begin operations before the end of the second quarter—is a partnership involving government institutions such as the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Authority, and Ministry of Finance Incorporated, along with private sector entities and multilateral organisations. This initiative will bolster confidence in Nigeria’s financial system, expand access to credit, and support underserved groups such as women and youth. It will drive economic growth, re-industrialisation, and enhance living standards for the Nigerian people.

Commitment to gender equality

The National Credit Guarantee Company (NCGC)—which is expected to begin operations before the end of the second quarter—is a partnership involving government institutions such as the Bank of Industry, Nigerian Consumer Credit Corporation, the Nigerian Sovereign Investment Authority, and Ministry of Finance Incorporated, along with private sector entities and multilateral organisations. This initiative will bolster confidence in Nigeria’s financial system, expand access to credit, and support underserved groups such as women and youth. It will drive economic growth, re-industrialisation, and enhance living standards for the Nigerian people.

Olusi believes that the formal adoption of the WeFi Code in Nigeria marks a significant step in BOI’s shared commitment to advancing gender equality, economic empowerment, and financial inclusion for women-led enterprises. As a key champion of this initiative, BOI remains unwavering in its dedication to empowering women-owned Micro, Small, and Medium Enterprises (WMSMEs). The bank is focused on providing the resources, access, and opportunities necessary for these businesses to succeed. Women are the backbone of many industries across Nigeria, driving innovation and economic growth.

However, the barriers they face in accessing finance have often hindered their full potential. Through its dedicated Gender Desk, BOI offers tailored support to address these challenges. As of December 2023, the bank has financed 833 women-owned or women-led businesses, disbursing N99 billion to help them thrive. Looking forward, BOI recognizes the critical need to prioritize gender development and has made gender one of its six key thematic areas of focus. “To this end BOI has developed a comprehensive gender strategy that will shape our efforts over the next few years. As part of this bold vision, we are committed to allocating at least 15 per cent of our risk assets to WMSMEs, a clear demonstration of our resolve to expand financial access and foster the growth of women entrepreneurs nationwide in line with President Tinubu’s Renewed Hope Agenda,” he said.

Olusi explained that through the We-Fi Code, BOI is taking decisive steps to dismantle the barriers women face. By leveraging data and bringing together key stakeholders, the bank aims to ensure a more equitable distribution of financial resources. “This initiative aligns with Nigeria’s National Financial Inclusion Strategy and reinforces our goal of closing the gender gap in access to finance. We are proud to be part of this transformative movement, and I thank our collaborators—the CBN, the Development Bank of Nigeria, and all stakeholders—for their dedication to this cause. Together, we are creating lasting change for the prosperity of our nation,” he said.

January 3, 2025
Inside the plight of Bayelsa’s oil-producing communities

Located in the heart of Nigeria’s Niger Delta, Bayelsa State epitomises a paradox of wealth and hardship. Despite its abundant oil reserves that drive the national economy, local communities endure crippling poverty, environmental degradation, and a host of socio-economic challenges. The impact of oil extraction is profound, leaving behind a legacy of ecological damage and human suffering. IBRAHIM ADAM explores the deep-rooted systemic issues plaguing the state, from environmental crises and health emergencies to the erosion of cultural vitality

Bayelsa State’s oil-producing communities are now at a crossroads despite President Bola Ahmed Tinubu’s pledge to sustain its collaboration with the state government, so as to address oil spills and gas flaring in the Niger Delta region.

In a new report titled “On-the-Spot Assessment of Oil and Gas Exploration Activities in Bayelsa State, Nigeria,” the Human and Environmental Development Agenda (HEDA Resource Centre) takes a look at the untold challenges facing communities in Bayelsa.

The report noted that the challenges are immense, but so are the opportunities for transformation, even as it stated that it is imperative for all stakeholders’ the government, corporations and communities to work together to build a sustainable future.

Some resident’s view aptly captured the above observation when he said: “We want a life where we can thrive without being poisoned by the wealth beneath our feet.”

Environmental catastrophe

Despite the immense wealth generated from oil exploitation, the report highlights the severe challenges confronting Bayelsa’s communities. Environmental degradation has reached alarming levels, with relentless oil spills contaminating water sources, farmlands and the air. The health consequences are devastating, as residents are exposed to hydrocarbons associated with cancer and chronic illnesses.

A resident of Sagbama Local Government Area who didn’t want his name mentioned expressed despair over the situation. He said: “Our waterways are polluted, farms destroyed and our health is worsening. The government and companies seem indifferent to our plight.”

The socio-economic impact is equally harrowing. Traditional livelihoods such as fishing and farming have been decimated. In communities such as Brass and Nembe, fishermen now struggle to find aquatic life in waters once teeming with biodiversity.

One of the residents of the area remarked: “Oil pollution has destroyed the water’s ecosystem. Everything is gone.”

Adding to their woes, the report emphasised on lack of transparency on the part of International Oil Companies (IOCs) that exacerbates the crisis. The unclear handling of asset divestments and environmental obligations often leaves communities marginalised. Insufficient remediation efforts and poor accountability have further deepened public mistrust, leaving Bayelsa’s residents feeling abandoned in the face of mounting challenges.

Communities in health crisis

Access to healthcare remains a critical challenge for many communities in Bayelsa State. In Kolokuma/Opokuma, residents unanimously reported suffering from severe health effects without adequate medical support. The report underscores the urgent need for establishing well-equipped health centres and implementing regular medical monitoring to ease the growing health burden on affected populations.

The health impact of oil exploration on Bayelsa’s residents is staggering. A sobering 79 per cent of residents reported health issues directly linked to oil pollution. Contaminated water and air have exposed them to harmful hydrocarbons, fueling a rise in cancer cases, respiratory illnesses, and congenital deformities.

Gas flaring compounds the crisis, significantly contributing to respiratory problems. A mother from Nembe voiced her concern: “Our children often complain of stomach pains. We’re unsure if it’s the water, fish, or air causing it.”

These findings paint a harrowing picture of the toll oil exploration takes on the health and well-being of Bayelsa’s communities, highlighting the pressing need for systemic interventions.

Socio-economic dislocation of livelihood

The HEDA report paints a grim picture of how oil-related environmental damage has devastated traditional livelihoods in Bayelsa. Farming and fishing, once the backbone of local economies, have been reduced to shadows of their former selves. Farmers report drastically diminished crop yields, while fishermen struggle with waterways polluted beyond recovery, leaving fish stocks severely depleted.

This environmental and economic collapse has driven many into poverty, with some turning to illegal artisanal refining just to survive. A farmer from Ekeremor lamented: “Our lands used to be fertile before oil came. Now, production is low, and we barely get by.”

The socio-cultural fabric of these communities has also suffered significant strain. Corruption and internal conflicts, fueled by the oil industry’s pervasive influence, have eroded trust and traditional values. Once dedicated to community development, youth leadership roles have become entangled with oil-related interests, deepening divisions and weakening communal bonds.

The report calls for urgent community empowerment initiatives to restore traditional livelihoods and rebuild trust, offering a pathway to resilience and unity for Bayelsa’s embattled communities.

Broken system of corporate, government responsibility

Both International Oil Companies (IOCs) and the government agencies have fallen short in addressing the environmental and social toll of oil exploration. The report reveals that over 57 per cent of residents believe the government fails to hold IOCs accountable, while a staggering 90 per cent see no tangible benefits from the Environmental Remediation Fund.

Frustrated by the lack of support, residents of Southern Ijaw pleaded: “We need the government to help us with healthcare, education and farming.”

The communities also criticised lack of transparency in IOC operations. Asset divestments are seen as poorly communicated, with minimal efforts to involve the people most affected.

One resident voiced his frustration: “Oil companies don’t take us seriously; they destroy our environment and force us to travel miles just to fish.”

This absence of clear communication has left communities feeling excluded and powerless in decisions that shape their lives. The report urges stricter regulatory enforcement and greater transparency to rebuild trust and ensure that communities are no longer sidelined in critical matters.

Voices from community leaders

Discussions with community leaders and key stakeholders revealed ongoing struggles, including crumbling infrastructure, limited healthcare access, and a lack of adequate socio-economic support. Participants stressed the urgent need for comprehensive environmental remediation and stronger accountability from both the government and International Oil Companies (IOCs).

One participant expressed the dire reality: “Fish from our rivers taste like kerosene. We are dying slowly.”

Another voiced concern over the militarisation of the region: “Surveillance personnel harass us regularly, making us feel unsafe in our own homes.”

The discussions also brought to light the human rights abuses tied to oil exploration. They emphsised that they frequently faced harassment and intimidation from security forces employed by IOCs; compounding the struggles of already vulnerable communities.

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The report calls for immediate action to address these human rights violations, emphasising the need to protect and empower affected populations.

$12b needed to clean up Bayelsa oil spill

The Bayelsa State Oil and Environmental Commission has emphasised that a staggering $12 billion is required to remediate the damage caused by oil pollution in the southern part of the state over the next 12 years.

In a recent report, the Commission placed significant blame on Shell and the Italian oil giant, Eni for being major contributors to the region’s widespread contamination. The investigation, initiated in 2019, relied on forensic evidence, blood samples from affected residents, and corporate data to build its case.

The report shows that the findings are alarming, with toxic pollutants in the soil, water, and air, as well as in the blood of local residents, were found to be many times above safe limits. These toxins have been linked to severe health risks, including burns, respiratory issues, and heightened cancer rates.

A Shell Petroleum Development Company spokesperson declined to comment on the findings, claiming the company had not seen the final report. Meanwhile, an Eni representative attributed the spills to theft, sabotage and illegal refining activities, emphasising that the company is committed to addressing all spill incidents. The spokesperson added that “Eni conducts its activities according to the sector’s international environmental best practices, without any distinction on a country basis.”

However, the Commission’s findings pointed at poorly executed oil company-led cleanups have often exacerbated contamination, further polluting the soil and groundwater. Gas flaring, a routine practice in the region, has also compounded the health risks for local communities.

Using a United Nations cleanup model first employed in Ogoni land over a decade ago, the Commission calculated the immense cost of restoring Bayelsa’s environment. The report highlighted that the region, once home to one of the world’s largest mangrove forests teeming with ecological diversity, is now one of the most polluted places on Earth.

“At least $12 billion is needed to clean up the soil and drinking water, reduce the health risks to residents, and restore the mangrove forests essential for flood prevention and ecological balance,” the report emphasised.

Bayelsa to sue oil companies for decades of environmental pollution

The Bayelsa State Government has resolved to sue the IOCs operating in the state over oil pollution that has persisted for more than six decades. Governor Douye Diri made this announcement while addressing the State Executive Council meeting in Yenagoa, where the final report of the Bayelsa State Oil and Environment Commission was presented.

He said: “After a review of an advance copy of your report, I can affirm that it captures the essence of our trials while outlining a hopeful pathway towards resolution. Your insights will serve as a beacon, guiding us towards actionable solutions and inspiring us to restore dignity and opportunity to our people.”

The governor described the report “An Environmental Genocide: Counting the Human and Environmental Cost of Oil in Bayelsa, Nigeria,” as deeply alarming.

He was encouraged by the revelation that in most industrialised countries, two principles “polluter pays” and “no fault liability” are foundational to regulating extractive industries.

He explained: “These principles mean that those who own and operate facilities are responsible for the damage caused by their pollution, even if they are not at fault.”

Governor Diri also indicated the government may pursue legal action outside Nigeria. He emphasised that “the perennial excuse by the IOCs that nearly ‘90 per cent of leaks are due to sabotage’ would not find accommodation in foreign jurisdictions. This is why we are pleased that this commission has strengthened our capacity to litigate anywhere in the world,”

The governor quoted parts of the report, which highlighted that Bayelsa bears 25 per cent of Nigeria’s oil pollution. He cited a study estimating that in 2012, oil spills in Nigeria, particularly in the Niger Delta, caused over 16,000 additional neonatal deaths, saying: “Even one life lost to accommodate the greed of oil exploration is one death too many.”

Diri also pointed out the severe oil contamination in Bayelsa: “It has been so heavy that, according to estimates, as much as one and a half barrels of oil have been spilled in Bayelsa for every man, woman, and child living in the state today. The stark reality is devastating: every Bayelsa resident is affected, our lives perpetually endangered. The brutal implication: we are either already dead or waiting to die.”

The report also highlighted the significant oil revenue generated from Bayelsa’s production. Since 2006, oil from the state has generated over $150 billion for the Federal Government, with an average of $10 billion in government revenues per year.

Path to redemption

The HEDA report noted that immediate and sustained action is critical to address the challenges faced by Bayelsa State’s oil-producing communities. It calls for a comprehensive remediation effort, demanding that International Oil Companies (IOCs) clean up oil spills and restore the environment, with the report noting that: “adequate compensation for affected communities is non-negotiable.”

The report further urges the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce stricter compliance with decommissioning standards to ensure regulatory effectiveness.

In addition, HEDA highlights the importance of community empowerment programs, which should focus on rebuilding traditional livelihoods and offering alternative employment opportunities. A key recommendation is the: “training in renewable energy skills to open new economic pathways,” equipping the communities with the tools to transition to sustainable and profitable industries.

The report also calls for the establishment of healthcare facilities to provide care for pollution-related illnesses, emphasising that addressing the long-term health crisis is a priority.

“These efforts must be complemented by regular health monitoring programmes to safeguard the well-being of affected populations,”

Transparency in IOC operations is another critical point of the report, which advocates for the adoption of “clear communication strategies for asset divestments” and actively involving communities in decision-making processes. This, it argues, would help to build trust and accountability between the corporations and the communities they impact.

HEDA also stressed the role of capacity-building initiatives in raising awareness about environmental rights and strengthening community-led monitoring mechanisms. These initiatives are crucial to empower communities to actively engage in environmental stewardship and advocacy.

The report further underscores the importance of anti-corruption measures, including the use of technologies like blockchain, to ensure transparency, integrity, and accountability in oil operations, while preventing resource misuse and promoting sustainable practices.

Collectively, these measures outline a comprehensive framework for remediation, health intervention, community empowerment, and systemic reforms. Through collaboration between stakeholder’s government, corporations, and communities Bayelsa State can chart a path toward environmental restoration, socio-economic resilience, and a more equitable future.

December 27, 2024
Unlocking the untapped N30trn potential of Nigeria’s livestock sector

Nigeria’s livestock sector presents a unique opportunity for transformative growth, with the potential to drive economic development, enhance food security and create significant employment. By embracing innovative strategies, private sector investments and robust regulatory frameworks, the industry can overcome current challenges and emerge as a leading player in both local and global markets. In this special report, DANIEL ESSIET delves into the key opportunities, challenges and initiatives that could unlock the sector’s full potential for sustainable growth.

The livestock industry on a global scale presents significant opportunities for foreign investment and business ventures. According to Statista, a prominent business intelligence organisation, the value of the global meat industry, estimated at $897 billion in 2021, is forecasted to grow to $1,354 billion by 2027. Indeed, the industry plays a crucial role in the agricultural landscape of nations, significantly contributing to economic growth and employment generation.

In Nigeria, the livestock sector currently contributes 17 per cent to the agricultural gross domestic product (GDP), 5 percent to the national GDP, and accounts for 36.5 percent of protein consumption. The industry offers a diverse array of products, including pork, poultry, eggs, beef, and milk, and provides substantial income-generating opportunities across the value chain, employing 33 percent of the population, which translates to approximately 4.6 million households. Nigeria is home to a wide variety of livestock, including cattle, sheep, goats, poultry, and pigs. There is considerable potential to access international markets by meeting global standards for meat and dairy production.

With a population of over 200 million people, demand for animal protein is on the rise. As urbanisation increases and the middle class expands, the demand for meat and dairy products is expected to continue growing. The Nigerian livestock industry is valued as a N30 trillion national asset, with a projected growth rate of 1.2% year-on-year through to 2026. However, the sector currently faces significant challenges that hinder its growth and stability. Climate change is a major obstacle, altering environmental conditions and affecting livestock productivity. Additionally, navigating various regulations related to origin traceability and food safety remains complex and burdensome for producers.

Rising costs of domestic animal feed are a critical concern, driving up production expenses and reducing profitability for farmers. Livestock diseases exacerbate the situation further, negatively impacting animal health, productivity, and access to markets. The spread of disease, coupled with inadequate infrastructure and limited technical knowledge—particularly in areas such as water supply services, veterinary care, and market integration—makes it increasingly difficult to manage these health risks effectively.

These combined challenges expose livestock producers and traders to heightened risks, threatening the sustainability of the industry and its ability to meet demand for food and other products. Moreover, the reliance on imported raw materials for animal feed, including maize, wheat, and cereals, has contributed to escalating production costs due to rising prices. This surge in costs has significantly eroded the earnings of businesses and cooperatives, causing many prominent local companies to fall behind their international counterparts. Addressing these issues requires comprehensive solutions that enhance resilience to climate change, streamline regulatory compliance, reduce feed costs, and improve infrastructure and expertise in disease management.

According to projections from the Food and Agriculture Organisation (FAO), Nigeria’s population is expected to grow rapidly and undergo substantial demographic changes, with estimates suggesting it could reach nearly 400 million by 2050. Nevertheless, Nigeria’s strategic location offers significant advantages, positioning it effectively to meet both regional and global demands for livestock products.

President Bola Ahmed Tinubu has emphasised the importance of the livestock sector in Nigeria, recognising it as a key driver of income and economic development. With a diverse range of indigenous livestock breeds catering to a variety of consumer preferences, both domestically and internationally, he highlighted that the sector holds considerable potential to boost the nation’s economy. At the recent two-day Consultative Workshop on Livestock Reforms held at the State House Conference Centre in Abuja, the President assured Nigerians that his administration would not repeat the mistakes of previous governments, which overlooked the livestock value chain. He stressed that the sector offers numerous opportunities for generating income and enhancing national prosperity.

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Mr President has underscored the need to reposition the sector strategically to ensure it plays a central role in achieving national goals such as food and nutrition security. He also stated that his government will avoid dependence on dairy imports. He pledged a robust framework to stimulate prosp The livestock sector is critical, and we will give it all it needs to bring value to our country. Stakeholders, I assure you that you will not regret the collaboration and investment in this sector. It is about time that we do it right,” he said.

He stated that Nigeria’s collective mission is to transform the livestock sector from its current subsistence model into a thriving, commercialised industry erity in the sector, saying his government will revamp and reposition the industry to create employment and attract foreign direct investment. “The livestock sector is critical, and we will give it all it needs to bring value to our country. Stakeholders, I assure you that you will not regret the collaboration and investment in this sector. It is about time that we do it right,” he said.

He stated that Nigeria’s collective mission is to transform the livestock sector from its current subsistence model into a thriving, commercialised industry. The sector, he added, must make a substantial contribution to Nigeria’s Gross Domestic Product (GDP) while providing decent jobs and sustainable livelihoods for the country’s growing population. He further highlighted that with 563 million chickens, 58 million cattle, 124 million goats, 60 million sheep, and 16 million pigs, Nigeria is the leading livestock producer in West Africa. “Yet, despite this vast resource, we face stark realities,” he lamented. “Our annual production of animal-source foods, like milk at 0.7 billion litres, meat at 1.48 million tonnes, and eggs at 0.69 million metric tonnes, falls far short of our needs. Our per capita consumption levels—8.7 litres of milk, 9 kg of meat, and 3.5 kg or 45 eggs per year—are troublingly low compared to global averages. These are 44 litres of milk, 19 kg of meat, and between 160 and 180 eggs per year. “What is more worrisome to me is the average milk yield by cow breeds managed by our pastoralists: it is a mere 0.5 to 1.5 litres per day, compared to a global average of 6.6 litres per day. We can do much better!” Tinubu lamented further.

He noted that the long-term neglect of the livestock sector has placed a heavy burden on the country’s import bills, with milk and dairy products alone accounting for $1.2 to $1.5 billion annually. To place Nigeria’s livestock sector on a path towards sustainable development and greater economic contribution, the President has established a special Ministry of Livestock Development. The creation of this dedicated ministry is seen as a pivotal step toward addressing the challenges confronting the country’s livestock sector. Its primary role will be to oversee and facilitate the sustainable growth of the industry, ensuring that it contributes significantly to the nation’s economy. With the resources that will be allocated to it, stakeholders believe the newly established ministry will be able to implement a range of focused policies and investments. These will target key areas such as productivity, trade and value addition, climate adaptation and mitigation, as well as improving governance within the sector.

One of the key figures is the former Speaker of the House of Representatives, Yakubu Dogara. Dogara emphasised the importance of focusing on increasing the self-sufficiency of beef production within the livestock sector. He believes that by doing so, Nigeria can reduce its reliance on beef imports and better meet the growing domestic demand for beef. Speaking at a town hall meeting on “Tax Reform Bills: Charting the Way Forward,” hosted by a national television station, Dogara acknowledged that President Bola Tinubu has taken a significant step in addressing the challenges facing the livestock sector.

His words: “There is no northern leader of my lifetime that has done what the President has done for the North with the creation of the Ministry of Livestock Development. This is a sector with a global market size with potential for diary, beef. In the next three years, the value of the industry will rise to $2.5 trillion. If in the North we are able to organise ourselves, in such a way they we can capture just 5 per cent of the global market size in terms of dairy and beef production, that gives us $250 billion; we don’t need VAT from any state in Nigeria to survive. The North can survive on its own. We are the most endowed part of Nigeria.”

He stated that the livestock sector holds vast potential, emphasising that its growth would play a crucial role in strengthening the national economy. Dogara’s vision for creating a robust livestock sector, one capable of driving economic growth, providing more jobs, and improving food security, aligns with the goals set by the Minister of Livestock Development, Idi Mukhtar Maiha, as outlined in his remarks upon assuming office on November 4.

The Minister reiterated his determination to chart a new path for the sustainable development of the livestock sector, focusing on policies and initiatives that will foster growth and address existing challenges. He posited: “As you are aware, livestock is not just a sector; it is a way of life for millions of Nigerians and a vital component of our food security, rural development, and cultural heritage. Our mission, therefore, is not just to grow this sector but to transform it into a sustainable, resilient, and inclusive ecosystem for the private sector actors to thrive. As a practicing livestock farmer, I am not oblivious of the challenges facing this sector. From limited and high cost of quality feed to disease outbreaks, farmer-herder’s conflicts, over grazing, ageing stocks, climate change, limited access to credit facilities and modern technologies and inadequate infrastructure just to mention but a few.

“These are significant hurdles, yet I believe they are not insurmountable. This journey will require smart work, collaboration, and innovative thinking. I am confident that with the experience and expertise within this Ministry, we can make significant strides towards unlocking the true potential in the livestock sector in no distant time. One of my top priorities is to ensure that our policies and programmes empower stakeholders within the sector, from smallholder farmers to large-scale producers. We shall work to create an enabling environment that allows for investment, climate smart livestock farming, modernization and commercialisation.”

The Ministry aims to attract private sector investment to establish commercial farms, tanneries for the export of processed hides and skins, breeder stock, poultry abattoirs, and other related enterprises. The minister reiterated that the goal is to create a solid foundation that will prepare the country to become a global leader in the livestock sector through private sector-led growth. Nigeria boasts approximately 415 identified grazing reserves, covering a total of 4.3 million hectares, all located in the northern states. However, only about 141 of these reserves are officially gazetted and legally secured. This presents both opportunities and challenges in terms of securing grazing areas for pastoralists. In addition, there are emerging clusters of agro-pastoralists in southern states, including the Iseyin-Igangan axis in Oyo State, the Adada-Nkpologu-Adani-Iggah axis in Enugu State, and the Awgu-Nkanu-Abakaliki axis in Ebonyi State. Analysts believe the existence of these clusters reflects the growing presence of livestock farming beyond the traditional northern regions, highlighting the expansion of agro-pastoralism in southern Nigeria. This shift represents an opportunity to diversify and expand the scope of livestock production across the country, although it also presents challenges in terms of infrastructure and resource management.

The Chairman of the Board of Trustees of the Federation of Agricultural Commodities Association of Nigeria (FACAN), Dr. Victor Iyama, emphasised that revitalising Nigeria’s livestock industry requires a systems approach. He noted that engaging small-scale livestock producers from all parts of the country is essential for ensuring the industry’s sustainable growth. Key components of this revitalisation, according to Dr. Iyama, include improving animal breeding, enhancing production systems, and addressing challenges related to land, water, and grazing management across the major regions of the country. Drawing on the success of Australia, he suggested that the establishment of large and medium-sized ranches and dairy farms across Nigeria could be pivotal in transforming the country’s livestock industry into a more sustainable and profitable sector. He reiterated that the involvement of small-scale livestock producers is crucial to creating a critical mass that will drive the industry’s long-term success.

The immediate past Director of the African Union Inter-African Bureau for Animal Resources (AU-IBAR), Dr. Nick Nwankpa, emphasised the significant role that extensive livestock production industries play in Nigeria’s economy. He believes that continuous improvements in animal husbandry and production efficiencies could greatly benefit the livestock sector. A key approach to achieving this growth, according to Dr. Nwankpa, is the establishment of large and medium-sized ranches and dairy farms focused on producing weaners, in-calf heifers, and young breeding bulls. These initiatives, he and other stakeholders assert, would not only provide stock for new start-up farms but also promote the genetic upgrading of indigenous animals.

Udeme Utuk, a prominent livestock expert, is at the forefront of advocating for the sector’s potential. Sharing Dr. Nwankpa’s optimism, Utuk believes that the livestock industry—particularly dairy farming—has the capacity to significantly increase Nigeria’s annual milk production. This, in turn, could play a key role in strengthening the nation’s economy, particularly through improved production efficiency and greater market competitiveness.

At its optimal levels, Dr. Nwankpa pointed out, the livestock sector could support greater employment, foster entrepreneurship, provide high-quality food, and generate income—provided operators have access to adequate information on markets, technology, research, support services (including livestock-related technical skills), and finance for the production of animals and plants for human use. Among the key recommendations for developing Nigeria’s livestock sector is the establishment of regional dairy development centres, which would greatly benefit milk production and value addition in the country. AU-IBAR has maintained a valuable partnership with the Food and Agriculture Organisation (FAO) to explore avenues for better collaboration and coordination with the Ministry of Livestock Development on critical issues related to the livestock sector, animal health, agriculture, and sustainable development. The key priority areas and strategies include enhancing animal health, promoting sustainable livestock production, and improving disease control. In collaboration with AU-IBAR’s Resilient African Feed and Fodder Systems (RAFFS) and the Africa Pastoral Market Development Platform (APMD) projects, the FAO is working closely with the Federal Government to enhance livestock productivity, boost trade, and improve the livelihoods and resilience of pastoralists across the country.

At the First APMD Analytics and Implementers Engagement Workshop in Abuja, the Director of AU-IBAR, Huyam Salih, emphasised the importance of implementing the Africa Pastoralist Market Development (APMD) initiative. She stated that the initiative represents a collective commitment to transforming Africa’s pastoral sector. Salih highlighted that the primary goals of APMD include boosting livestock productivity, improving the livelihoods of pastoralists, and promoting regional cooperation across the continent. Represented by the Project Coordinator of APMD, Prof. Ahmed Elbeltagy, the Director explained that the platform embodies “our aspiration to elevate the role of pastoralism in inclusive economic growth, sustainable development, and enhanced livelihoods.”

She added, “Pastoral livestock plays a pivotal role in Africa’s social and economic fabric, providing food, income, and security for millions of people. However, the sector continues to face challenges, including climate change, limited market access, and policy gaps. The implementation of the APMD Platform will allow us to overcome these barriers. By fostering collaboration and embracing innovation, we can unlock new pathways for sustainable growth. This analytics and iimplementers’ workshop marks an essential step in developing the detailed implementation plan and strengthening pastoral communities and stakeholder’s contribution to the process of sector transformation.” Stakeholders have called for the establishment of dedicated zones to enhance livestock breeding, within a comprehensive development plan aimed at transforming the sector. This plan, driven by private sector-led growth, seeks to cultivate a vibrant industry capable of meeting local demand, securing a larger share of livestock exports, meeting international quality standards, and achieving double-digit growth by 2025. There is an increasing demand for effective regulatory frameworks that ensure transparency and accountability in livestock production practices.

One such advocate for change is the Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya. She has been at the forefront of efforts to implement innovative strategies that tackle the challenges facing livestock production in the state. In Lagos, she has worked closely with various stakeholders to promote accountability in the transportation of livestock, both within the state and to other regions. This collaborative initiative has led to the development of detailed guidelines for the safe handling of animals during transportation, ensuring their well-being throughout the process.

Overall, the livestock industry faces a variety of challenges, but also significant opportunities for expansion, particularly in areas such as cattle breeding and beef production. A key focus is the establishment of nursery stables for distributing high-grade cows to farmers, alongside breeding centres equipped with top-quality bulls to improve the genetic stock. These centres would offer artificial insemination services, enabling farmers to enhance their herds and boost productivity.

The private sector, especially large and medium-sized farms, has substantial potential to increase beef production. However, farmers require targeted support to realise this potential fully. This includes technical advice to guide best practices, alongside financial assistance to purchase essential resources. Access to credit for buying seeds, fertilisers, livestock buildings, and cattle is crucial to enabling farmers to improve their productivity and efficiency. With these measures in place, Nigeria’s livestock industry could make significant strides towards becoming a key player in both local and international markets.

In conclusion, the livestock sector in Nigeria stands at a pivotal crossroads, with immense potential for growth and transformation. By harnessing the collective efforts of stakeholders, including government bodies, the private sector, and local farmers, the industry can overcome its current challenges and realise its full potential. Strategic initiatives, such as the establishment of breeding zones, the creation of breeding centres, and the promotion of transparency in production practices, are crucial to positioning Nigeria as a global leader in livestock production. With targeted support in areas like infrastructure, technical expertise, and financial resources, the sector can not only meet domestic demands but also expand its footprint in international markets. If the right measures are taken, Nigeria’s livestock industry has the capacity to become a key driver of economic growth, job creation, and food security, paving the way for a prosperous and sustainable future for all stakeholders involved.

December 26, 2024
PoS platforms to the rescue of Niger, Sokoto rural communities

In many rural areas in Nigeria, poor network connectivity and the lack of bank services hinder efficient financial transactions. The situation has forced people to often depend on Point-of-Sale (PoS) platforms to meet their financial needs. In this report, JUSTINA ASISHANA explored the impact of such a payment system in some communities in Niger and Sokoto states.

Limited access to banks

In the Lavun Local Government area of Niger State, there is only one bank, the United Bank for Africa (UBA), which is located at the local government headquarters, Kutigi.

The local government, which has about 13 communities, relies on PoS services for their financial transactions. They are also able to send and receive money from different parts of the country, buy mobile data and transact business.

Travelling to the bank incurs significant transportation costs, making banking often unattractive.

Haruna Mohammed from Danchitagi Community said PoS payment systems have come in handy.

“We appreciate the PoS operators much because they help us. We are too far from the bank. If you want to go to the UBA, which is about 75 km away from here, we pay about N3, 000 to N4, 000 for transportation.

“Without the PoS operators, we would not have been able to survive financially in this community. Our relatives outside the community can send us money and we receive it from the PoS operators,” he said.

In Sokoto State, several of the banks are in the centre of the town which is between 50 and 75 kilometers from several communities in Sokoto’s main town.

Usman Alerio from Gagi Community said when it comes to financial transactions; going to the PoS operator is easier for them in the community than going to the banks.

“It is close to us and it serves us. It is easier than going to the bank. It reduces the cost of transportation. It favours me. In this community, there are no banks nearby. Most of the banks are in the centre of the city, PoS is better than going to the banks,” he said.

Read Also; How to tackle corruption, by President Tinubu

A 72-year-old Yusuf Muhammad, in the Tamadi Community in Sokoto State, said that his three children live outside Sokoto, and he has been able to benefit from the services of PoS operators as he had not stepped into banks after he opened his account, but could receive the money his children sent to him through the PoS operators.

“I don’t bother to go to the bank. As far as my ATM card is still valid and I know my PIN, I can withdraw my money from the PoS people. It is easy and better for me,” he said.

Denis Felix in Tamadi Community said that services from the PoS operators are fast and easy since there is no bank in his community.

“To access a bank, you may have to transport yourself from Tamade to the town which will cost about N2, 000. I prefer to go to the PoS operators. I also go to the bank once in a while,” he said.

Impact on daily lives

PoS services are integral to the economic activities of these communities. In areas such as Rigi Sambo and Tudun Wada, they support business transactions and personal financial needs, including receiving money from relatives. Without PoS service, many residents say they would face significant hardships.

PoS services help in bridging the financial digital divide as they connect remote communities to digital payment ecosystems, fostering financial inclusion and economic growth. PoS technology streamlines transactions and boosts local enterprises.

PoS is working to close the financial exclusion gap in communities that might have been left behind in the digital revolution.

Challenges with PoS systems

Despite their reliance on PoS machines, residents highlighted the need to improve network connectivity and reduce failed cash transactions and cash availability.

Residents and PoS operators alike face challenges. Poor network connectivity often disrupts transactions, leaving customers with debits that do not reflect on one of the parties’ systems.

Abdullahi Musa from the Jima Community said that using PoS services becomes frustrating when there are failed transactions.

“There are times that you want to withdraw money, it will debit your account, but on the PoS, it will show as unsuccessful. It has happened to me several times. Sometimes they tell me to wait for 24 or 28 hours, when it would be reverted but after waiting without it being reverted, I have to go to the bank to file a complaint so that I can be reimbursed,” he said.

Adejo Joseph, a PoS operator in the Tudun Wada Community in Sokoto, noted that these days, there is cash scarcity and a lack of adequate network connectivity, which sometimes makes it difficult for him to conduct transactions.

“You know, these days, even in banks, you cannot withdraw a certain amount, but from us, the withdrawal limit is addressed as the people can get more money from the PoS services. Another challenge we face includes declined transactions where the customer is debited but we are not credited. Sometimes, it becomes very rowdy. Telling them that they will need to make a complaint at the bank is challenging. Also, network problems from network providers and from the banks are often frustrating,” he said.

The Central Bank of Nigeria (CBN) in 2018 directed all banks to refund all failed electronic transactions within 24 hours, but several people who spoke to our correspondent said their monies were not refunded until they went to the banks to make complaints.

Solutions

Ubanjin Ahmed, a financial expert in Minna, said that PoS services have increased financial inclusion down to the last mile customer regardless of geographical location, adding that the coming of PoS operations to communities has helped in fostering digital financial inclusion and that the PoS terminals encourage seamless cashless transactions, boosting digital public goods (DPG) adoption.

While speaking to MFWA DPI Journalism Fellows during its training in Abuja, the Head of Digital Skills and Services in the Nigeria Communications Commission (NCC), Hauwa Wakili said that broadband penetration is still at 42 per cent as of October 2024; saying that NCC is working to achieve a national broadband plan of 70 per cent by 2025.

She said that sometimes lack of connectivity is caused by vandalism which is a big menace in the telecom sector.

“Sometimes, when we experience this lack of connectivity, it is as a result of activities of vandals; not vandalism only on fiber cuts, but also vandalism on base stations and vandalism on towers. That is how bad it is.

“It is so rampant. We experience about 24,000 fibre cuts in one year; which makes it 65 fibre cuts in a day. One fibre cut in a state could affect another or even regions. It could have a ripple effect in regions. And so, you have that downtime,” she stated.

She said that the fibre cuts also affect the quality of service, even as she lamented that it has been increasing over the years and it is a very big challenge for the telecoms industry and consumers who use telecoms services as several of them would not be able to transfer or receive money or engage in any financial transactions when this fibre cuts occur.

• This report is produced under the DPI Africa Journalism Fellowship Programme of the Media Foundation for West Africa and Co-Develop.

December 24, 2024
The budget: A deep vision for economic transformation

President Bola Ahmed Tinubu has presented the 2025 budget to the National Assembly. Beyond the usual budgetary details, the President earmarked 52 per cent of non-debt spending for infrastructure, writes ASSISTANT EDITOR NDUKA CHIEJINA.

The N49.8 trillion budget for next year highlights a commitment by the Tinubu Administration to drive economic transformation. The financial estimates focus on capital expenditure.

A significant sum of N16 trillion, representing 52 per cent of non-debt spending, is allocated to capital projects. This shows the government’s resolve to tackle structural inefficiencies, boost productivity, and foster inclusive economic growth.

The budget prioritises transformative projects across transportation, energy, healthcare, and education sectors. The investments in the sectors are essential for reducing transaction costs, streamlining logistics, and facilitating the efficient movement of goods, services, and people.

Moreover, enhanced infrastructure creates a fertile ground for economic expansion by attracting domestic and foreign investments. It also spurs productivity across key sectors, such as agriculture, manufacturing, and technology, thereby unlocking the full potential of Nigeria’s economy.

By emphasising infrastructure development, the budget serves as a blueprint for fostering sustainable growth, addressing long-standing structural challenges and positioning Nigeria as a competitive global player.

This capital-intensive approach reflects government’s recognition that robust infrastructure underpins economic resilience. The targeted investment is designed to yield long-term benefits for businesses and individuals, from improved transportation networks that lower logistics costs to better energy systems that power industries.

Thus the budget sets the tone for a decade of transformative progress, firmly placing Nigeria on the path to inclusive prosperity.

Infrastructure as catalyst for industrial growth and job creation

The budget recognises the indispensable role of reliable infrastructure in driving industrial growth and fostering economic diversification. By prioritising investments in transportation networks and energy supply, the government aims to eliminate logistical bottlenecks, promote inter-regional trade, and enhance industrial integration. These envisioned strategic improvements are critical for facilitating agricultural and mining activities and attracting manufacturing investments.

These investments will drive value chain development, expand production capacities, and significantly boost Nigeria’s overall economic output.

Read Also: Tinubu’s vision for the livestock sector will unlock vast potential – Minister

Improved transportation networks, such as roads, railways, and ports, are essential for ensuring the smooth movement of goods and raw materials across regions, thereby connecting producers to markets more efficiently.

Likewise, investments in energy supply—particularly through renewable and alternative energy sources—will reduce business production costs, ensuring a stable power supply for industries and households. These are expected to create a more conducive environment for domestic and foreign investors, fostering industrial growth and strengthening Nigeria’s global competitiveness.

Furthermore, capital projects stand out for their labour-intensive nature, especially in the construction and infrastructure sectors. From road construction to the provision of energy plants, these initiatives will generate immediate employment opportunities, driving household income growth and stimulating local economies across the nation.

Construction jobs provide short-term relief and serve as a gateway to long-term career opportunities. Workers engaged in such projects acquire new skills in engineering, logistics, and project management, enhancing their future employability.

By coupling infrastructure development with job creation, the budget promotes a sustainable cycle of human capital development. As more Nigerians access skills training and employment opportunities, the workforce becomes better equipped to contribute to the nation’s industrial and economic transformation.

This dual impact—strengthening infrastructure while empowering individuals—positions the budget as a decisive tool for tackling unemployment, poverty reduction, and fostering inclusive growth in the long term.

Through these targeted investments, the government demonstrates its resolve to address systemic inefficiencies and unlock Nigeria’s full industrial potential. By doing so, the budget lays the groundwork for an economy that is resilient, diversified, and inclusive, driven by robust infrastructure and a skilled workforce.

Multiplier effects of capital expenditure and human capital development

The increased allocation to capital expenditure in the budget is designed to unleash a multiplier effect on the economy. Payments to contractors and workers engaged in infrastructure projects translate directly to higher disposable incomes, driving increased household consumption and aggregate demand. This surge in spending invigorates economic activities across ancillary sectors such as retail, services, and transportation.

As economic activity intensifies, businesses in these interconnected sectors experience increased patronage, which, in turn leads to higher production levels and expanded employment opportunities. This self-reinforcing cycle of economic expansion underscores the significance of a robust capital expenditure in stimulating not only immediate growth but long-term economic stability.

By prioritising infrastructure investments, the government is setting the stage for sustained development that benefits industries and individuals.

Equally transformative are the budget’s allocations to social infrastructure, particularly in healthcare and education. Improved healthcare facilities—ranging from modernised hospitals to accessible clinics—contribute to a healthier population.

A workforce unburdened by frequent illnesses is more productive, reducing absenteeism and improving outputs across all sectors. Moreover, better healthcare infrastructure minimises economic losses associated with high out-of-pocket medical expenses, freeing up resources for savings and investments.

Similarly, the focus on educational infrastructure serves as a cornerstone for enhancing human capital development. By expanding access to quality education, the government is equipping citizens with the skills and knowledge needed to thrive in a dynamic global economy. Investments in classrooms, laboratories and teacher training create an environment conducive to learning, fostering a skilled and competitive labour force essential for economic diversification and global competitiveness.

The intersection of infrastructure development and human capital investment shows a strategic approach to economic planning. By addressing both physical and social deficits, the budget will ensure that economic growth is inclusive, sustainable, and rooted in the empowerment of Nigeria’s greatest resource—its people.

With healthier, better-educated citizens, the nation stands poised to reap the dividends of a productive workforce capable of driving innovation, entrepreneurship, and industrialisation.

This dual approach will not only address immediate challenges but position Nigeria for long-term economic resilience. By prioritising capital expenditure with direct benefits for both physical and social infrastructure, the government is crafting a vision of shared prosperity that aligns with its overarching goal of national transformation.

Addressing regional disparities and accelerating economic diversification

The budget employs focused capital expenditure as a pivotal strategy for addressing Nigeria’s persistent regional disparities. By channeling funds into underdeveloped areas, the government aims to stimulate local economies, attract businesses, and ensure equitable development across the country.

Improved infrastructure in these regions—ranging from better roads and energy supply to modernised healthcare and educational facilities—has the potential to invigorate local economic activities and integrate these areas into the broader national economy.

This approach holds significant promise for reducing socio-economic inequality, which has long plagued the nation. Enhanced connectivity between rural and urban areas will foster inter-regional trade, expand markets for local producers, and provide communities with access to essential services. Over time, this integration will help balance the scales of development, creating opportunities for underserved regions and contributing to a more inclusive economy.

In parallel, the 2025 budget’s emphasis on economic diversification reflects a clear commitment to reducing Nigeria’s over-reliance on volatile oil revenues. By prioritising investments in non-oil sectors, the government is laying the groundwork for a resilient economy driven by diverse revenue streams. In particular, investments in agricultural infrastructure—such as irrigation systems, storage facilities, and processing plants—are expected to significantly boost productivity, enhance food security, and create value-added agricultural products.

Moreover, the development of industrial parks and export-processing zones stands out as a cornerstone of the government’s diversification agenda.

These hubs are designed to attract both domestic and foreign investors by providing favourable business environments with reliable infrastructure and streamlined regulatory processes. By fostering industries such as manufacturing, technology, and agro-processing, these zones are expected to enhance Nigeria’s non-oil exports, contributing to foreign exchange earnings and reducing the nation’s vulnerability to global oil price shocks.

This shift toward a diversified economy will not only strengthen economic resilience but create job opportunities across a broad spectrum of industries. A thriving agricultural sector, for instance, will support value chains that include transportation, packaging, and retail. Industrial parks will foster innovation and technological advancement.

By addressing regional disparities and accelerating diversification, the budget positions Nigeria for sustainable and inclusive growth. The targeted investments aim to unlock the potential of every region, ensuring that no part of the country is left behind in the pursuit of economic transformation.

Through these initiatives, the budget underscores a vision of shared prosperity that aligns with national and global development goals.

Leveraging infrastructure for economic resilience and tackling challenges

The government’s focus on infrastructure development is a strategic move to position Nigeria as a competitive destination for both domestic and foreign investments. Enhanced infrastructure significantly lowers operational costs for businesses, creating an environment that fosters private sector participation—an essential driver of sustained economic growth.

Reliable roads, power supply, and efficient logistics systems reduce overhead expenses, streamline operations and improve the ease of doing business.

Infrastructure-led development also plays a critical role in building economic resilience. By diversifying the economy and enhancing productivity, this approach equips Nigeria to better withstand external shocks such as global market fluctuations or disruptions in oil revenue. A more stable and diversified economy not only ensures sustainable growth but fosters long-term stability, enabling the country to weather economic uncertainties with greater confidence.

Challenges and panacea

While the ambitious focus on capital expenditure promises substantial benefits, it is not without risks. Challenges such as corruption, inefficiencies, and delays in projects’ execution could undermine the effectiveness of investments. To safeguard the anticipated outcomes, robust monitoring mechanisms are imperative. These mechanisms must ensure transparency, accountability, and adherence to projects’ timelines and budgets. The government must also strengthen institutional frameworks to combat corruption and enhance efficiency of public spending.

Debt servicing, which is projected at N16 trillion, represents another critical challenge. Striking the delicate balance between borrowing for growth-oriented projects and maintaining fiscal sustainability is essential to avoid excessive debt accumulation. Borrowing must be strategically targeted toward high-impact projects with measurable economic returns.

Additionally, exploring innovative financing models, such as public-private partnerships (PPPs) and concession arrangements, can help reduce debt burden while ensuring infrastructure development.

Large-scale spending, if not carefully managed, could also trigger inflationary pressures that may destabilise the economy. Monetary authorities must work closely with fiscal policymakers to implement measures that mitigate inflation risks. Strategies such as phased project implementation, prudent fiscal management, and leveraging domestic resources can help stabilise prices while sustaining economic growth.

In the face of these challenges, government’s proactive planning and commitment to transparency will determine the ultimate success of the 2025 budget.

By addressing these risks head-on, Nigeria can maximise the transformative potential of its infrastructure investments, fostering an economy that is not only inclusive and competitive but resilient and sustainable in the long term.

December 20, 2024
State-by-state report on CNG initiative

Reports by The Nation correspondents across some states and the Federal Capital Territory(FCT) show that some do not have Compressed Natural Gas (CNG) conversion centres or refill stations.

The states are Delta. Kwara, Jigawa, Adamawa, Plateau, Niger, Imo, Enugu, Akwa Ibom, Benue, Osun   and Borno.

However, many of them indicated interest in keying into the Federal Government initiative. Borno opted for Electric Vehicles(EVs) and tricycles.

Oyo, Ogun, Ondo, Rivers, Edo states and FCT have conversion and refill plants.

• FCT

A few months ago, the Federal Government   distributed 64 CNG buses to the FCT Administration as part of Nigeria’s 64th Independence Anniversary celebrations.

A transporters, Oladele Abiodun, told The Nation that there were only four conversion/ refill centres in the FCT.

Abiodun, who lamented that there were few   CNG centres in the territory, called on the Federal Government and FCT Administration to establish more.

He said those who have converted their vehicles   always queue for hours to buy CNG.

A civil servant ,who pleaded anonymity, told our correspondent that he spends over four hours at the stations to buy gas.

• Osun

Commissioner for Information and Public Orientation,   Kolapo Alimi confirmed to The Nation that the state has no conversion/refill centre. He added the   Federal Government   has provided the state with no free CNG buses.

The commissioner appealed to Federal Government to redeem its pledge of providing   conversion centres and buses to ease the hardship faced by residents.

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Alimi said: “There is no single CNG conversion centre in the state neither do Federal Government provide the vehicles promised. The only thing that is on ground to ease hardship over transportation is Imole bus provided by Governor Ademola Adeleke for workers, students, and residents.’’

• Ogun

The state blazed the trail with the rollout of 17 CNG-powered buses on October 30, 2023.

Sources close to the transport ministry revealed that   31 vehicles have been converted to CNG so far out of   60 free conversion kits received from the Federal Government.

There are three conversion centres   operated by the Nigeria Gas Transport Solution Ltd (NGTSL) in the state’s Public Works Agency; Next Gen Limited in Abeokuta and another in Mowe – Ibafo corridor.

There are also three CNG refilling stations – Green Fuel at Obada in Abeokuta; Gasco Marine also at Obada and another at Mowe/Ibafo.

• Oyo

The Federal Government which delivered 20 CNG buses to the state commenced the first phase of free vehicle conversion in Ibadan, the state capital on September 15.

Seventy vehicles have so far been converted in the state.

First Vice-Chairman of the state’s Park Management System (PMS)   Ademola Adeoye said the CNG initiative was well received by PMS members

He, however, said others have not been able to convert their vehicles due to many reasons, including lack of funds.

Pointing out that there were no enough conversion centres in the state, Adeoye called on the government to consider opening more

He said: “Over 70 of our commercial vehicles has been converted as of Friday. But there are no enough conversion centres in the state. Only three conversion centres were recommended by Federal Government for the state.”

• Ekiti

Commissioner for Infrastructure and Public Utilities Mobolaji Aluko said the government has shown significant commitment to the CNG initiative

Aluko stated that the Federal Government unveiled seven conversion centres in the state which are already using CNG to power its independent power plant.

He added that the state has received 15 CNG buses from the Federal Government under the Presidential Compressed Natural Gas Initiative (PCNGi) to enhance public transportation in the state.

• Enugu

The government is presently constructing a massive CNG mother station with a capacity to serve the entire Southeast.

It is also plans to build ancillary daughter stations that would look like filling stations.They will be fed by the mother station to be located at Ugwu Onyeama.

The Nation also gathered that some private firms in the state had already taken the lead in training interested technicians on how to convert vehicles from PMS to CNG.

Commissioner for Transportation Obi Ozor had two months ago said the government had taken steps to introduce CNG buses as part of the efforts to preserve the environment and also make transportation affordable for citizens.

Ozor added that the state was playing its part to not only invest more in buying CNG buses, but supporting private sector investment in the transportation space.

• Rivers

It was gathered that some CNG-powered vehicles had been sent to the state government by the Federal government.

Efforts to confirm the development yielded no positive results as the Commissioner for Information, Mr. Joseph Johnson,   neither responded to telephone calls nor replied to a text message sent to him.

But a source   in Port Harcourt   said some CNG-powered vehicles were sent by the Federal Government to the   state

There was, however, no evidence to show that the vehicles had been deployed for use in the state

Our source said plans had been concluded by the government to open two CNG refill stations and two conversion parks in the state capital.

He said: “   The stations will be launched in Port Harcourt and we are launching a refuelling unit alongside. Rivers State is going to have a micro refuelling unit at Stadium Road and in Government Reservation Area(GRA).

To increase the availability of CNG centres, the Portland Oil and Gas recently opened such centre to facilitate conversion at the Onne Oil and Gas Free Zone in the state.

• Ondo

The use of CNG- powered vehicles is yet to take firm root in the state due to the absence of conversion workshops and plants.

The Nation gathered   that one plant   being constructed in the state is 90 percent completed.

Lafbart Innovations and Consulting limited was granted licence to undertake the conversion of PMS-powered vehicles to CNG in the state.

Special Adviser to Governor Lucky Aiyedatiwa on Transport Olugbenga Omole said the state’s 2025 budget made provision for the purchase of CNG-powered vehicles.

Omole added the state was yet to receive CNG-powered buses from the Federal Government.

• Kwara

The government last week received 20 CNG vehicles from the Federal Government last week.

A member of the Road Transport Employers Association of Nigeria (RTEAN), who did not want his name in print, said:   ‘NURTW and RTEAN members attended the ceremony as observers.”

• Niger

The state which has no conversion/refill centre, procured 200 CNG buses this year.

The buses are currently parked at the Trade Fair Complex in Minna.

Governor Mohammed Bago had during the presentation of the state’s budget for next year to the   House of Assembly, said his government earmarked N10 billion for modern bus terminals and CNG stations across the state.

He assured that the 200 CNG buses would soon be put to use.

Bago also revealed that his government was planning to distribute 1,000 electric tricycles to ease movement in the state.

• Plateau

In Jos,   Commissioner for Transport Davou Gyang said the primary barrier to implementing the CNG initiative in the state was an insufficient number of refill stations.

Gyang told The Nation that a private firm,   Greenville Energy, which built a CNG station in Nasarawa State, is to set up one in Plateau at no cost.

He said: “We have not given them(Greenville) the go-ahead because having a conversion centre without refill stations is as good as not achieving anything.

‘’There has been no significant uptake or conversion of local vehicles to CNG due to the lack of refill infrastructure.

“We are also having discussions with the National Institute of Transport Technology (NITT) to identify a temporary site for vehicle conversions to CNG.

‘’ They have built a CNG station in Nassarawa State and currently building another in Kaduna. Plateau has yet to receive any single CNG vehicles. We have the intention of converting the Plateau Riders vehicles to CNG.’’

• Imo

Transport Commissioner Chika Abazu said Governor Hope Uzodimma   tasked his ministry to create a comprehensive CNG strategy

He said: “The plan capitalises on the state’s rich natural gas resources, aiming to generate jobs, slash transportation expenses, and stimulate economic growth.

‘’We have started key components construction which include building three main CNG stations and associated smaller stations and vehicle conversion centres.

“This infrastructure will enable widespread CNG vehicle adoption, providing drivers with lower fuel costs and environmentally friendlier transportation.’’

He added that Mashati Energy was committed to establishing a major CNG facility and conversion centres in the state.

• Akwa Ibom

The state government is yet to make a decision on whether or not to key into the CNG initiative.

Governor Umo Eno had earlier said his administration was understudying the workings of the CNG, especially as it pertains safety.

Information Commissioner Ini Ememobong said that the governor was, for now, more concerned with ensuring availability of fuel in the state

His words: “The governor sometimes ago said he was still understudying the workings of CNG and was particularly concerned about how safe it is.

“I am not aware if he ( governor) has changed his mind. Whatever decision he takes is in the best interest of the people.

“Again, the governor is concerned about the issue of having enough refilling depots across the state.”

• Benue

The commissioner for Transport , Renewable Energy and Power   Omale Omale said the state was currently working to have an energy and power policy.

Omale said the ministry already had an energy data for the state.

He, however, stated that the state had long ago keyed into the CNG concept but, unfortunately, did not have the support infrastructure for it to thrive at the moment.

“Benue has keyed into the CNG concept. It is deployed in some states for test running, but unfortunately, Benue is not among the pilot states,’’ the commissioner added.

• Borno

Dauda Ilya,   special adviser to Governor Babagana Zulum on Media, said the government was focusing on

Electric Vehicles (EVs) as part of the transportation overhaul for Maiduguri and surrounding areas.

Stating that the government welcomed the CNG initiative, he cited difficulties in establishing conversion plants, and securing proper storage facilities as hindrances.

His words: “Borno State Government is investing in electric buses and cars to revamp the transportation system in Maiduguri metropolis and its environs. This shift towards EV technology is seen as a practical and sustainable solution to addressing local transportation needs.

“Notable investments in EV technology include the 2024 purchase of 30 Changon E-Star electric vehicles, 500 Phoenix VH100 electric tricycles, and other electric vehicles for the Baga community.

“The government also procured electric vehicle charging terminals across Maiduguri Metropolitan Council (MMC) and Jere Local Government Area (LGA), offering highly subsidized charging rates to alleviate the economic burden on residents.”

• Edo

The CNG is being embraced by motorists with more conversion centres seen in Benin and its environs.

Although, many residents were discouraged by the October 16 explosion of a CNG-powered car in Ikpoba Hill, findings showed that they had changed their minds.

The state however has not received any CNG vehicle from the Federal Government.

• Delta

The government has commenced preliminary implementation of the   policy   with Governor Sheriff Oborevwori’s approval of the construction of conversion. Refill stations across the three senatorial districts.

Transport Commissioner Onoriode Agofure    explained that the government was mindful of the hardship citizens endure due to the high cost of transportation.

He appealed for patience, noting that the government was committed to providing lasting relief to stakeholders in the transport sector.

• Jigawa

In Jigawa State, there is no conversation centre

However, the state Executive Council has approved N117,109,070 for the establishment of a pilot training centre at Dutse Skills Acquisition Center in Limawa.

Information and Sports Commissioner Sagir Musa said this is in line with Governor Umar Namadi’s administration’s commitment to reducing the suffering of the people.

• Adamawa

The CNG has not been deployed in Adamawa State by the Federal Government. But the state government, however, runs a mass transit scheme with vehicles that run on gas.

The Chief Press Secretary to Governor Ahmadu Fintiri, Mr Humwashi Wonosikou, said the state has no CNG-run vehicles from the Federal Government.

December 16, 2024
Assessing CBN’s economic policies powering naira’s rebound

Over the past year, the Central Bank of Nigeria (CBN) has introduced crucial reforms aimed at unifying the country’s exchange rate, eliminating distortions and restoring market transparency. This policy shift has enabled the apex bank to clear outstanding foreign exchange obligations, boosting the confidence of businesses—from manufacturers to airlines—to plan and invest strategically. Assistant Business Editor COLLINS NWEZE reports that the naira’s ongoing rally is the result of a series of sweeping reforms across the financial sector, setting the stage for a more stable and investor-friendly economic environment.

The naira’s ongoing rally in both official and parallel markets highlights the success of financial sector reforms driven by the Olayemi Cardoso-led Central Bank of Nigeria (CBN). This rally reflects months of innovative policies, culminating in the implementation of the new Electronic Foreign Exchange Matching System (EFEMS) on December 2. EFEMS tackles long-standing challenges of market opacity and inefficiency by enabling seamless trading and ensuring consistency among participants. As a result, the naira appreciated significantly against the dollar across all market segments. At the parallel market, it traded at N1,530/$, while at the Nigerian Foreign Exchange Market Window (NAFEM), it exchanged at N1,535/$, breaking key resistance levels in the Nigerian Autonomous Foreign Exchange Market.

At the 2024 Chartered Institute of Bankers of Nigeria (CIBN) dinner on November 29 in Lagos, Central Bank Governor Olayemi Cardoso expressed optimism that the measures introduced under his administration would soon yield tangible benefits for Nigerians. Acknowledging the economic pressures from rising inflation and currency depreciation, Cardoso reassured that the CBN’s strategic interventions were designed to address these challenges head-on.

Since assuming office in September 2023, Cardoso has focused on stabilising the exchange rate, curbing inflation, strengthening banks’ capital buffers, and fostering a business-friendly environment. To achieve these goals, the CBN has implemented key measures, including tightening liquidity conditions by raising the Monetary Policy Rate (MPR) by 850 basis points to 27.5% and the Cash Reserve Ratio (CRR) by 12.5 percentage points to 45%. Additionally, the Loan-to-Deposit Ratio (LDR) was reduced by 15 percentage points to 50%, allowing for better financial stability.

These decisive steps have contributed significantly to the ongoing naira rally, with the local currency gaining strength across various market segments. The reforms are a testament to the CBN’s commitment to fostering a more resilient and sustainable financial ecosystem for Nigeria. This was followed by the apex bank’s pegging of the initial FX cash pulling for International Oil Companies (IOCs) at 50 per cent of available proceeds, while the remaining cash balance is only accessible after 90 days. The apex bank’s approved expenditure plans for the IOCs include settlement of Petroleum Profit Tax, royalty, domestic contractor invoices, cash call and domestic loan principal and interest payment. Other approved expenditure plans include transaction taxes- including Nigeria Content Development levy, education tax and forex sales at the Nigerian Foreign Exchange Market.

The apex bank also rightsized the number of BDC operators to enhance regulation and re-commence periodic FX sales to them at a discounted rate. The CBN’s policy that limited PTA and BTA settlement to electronic channels to prevent round-tripping was also a masterstroke that supported the naira rally. Before now, many FX sold the travellers were in most cases, diverted to other uses. Besides, the CBN under Cardoso also initiated banking industry recapitalisation to strengthen capital buffers for banks and redefined Net Open Position ceiling for banks (25 per cent short and zero per cent long on foreign currency) to unlock FX liquidity.

On recapitalisation of banks, Cardoso said: “This strategic move ensures that banks are well-capitalized, enabling them to take on greater risks, particularly in underserved markets. With stronger capital bases, banks can provide more loans and financial products to Micro Small and Medium Enterprises (MSMEs), rural communities, and other vulnerable segments that have previously struggled to access formal financial services”.

Cardoso said the recapitalisation policy not only strengthens financial stability but also serves as a catalyst for inclusive growth. “By enabling banks to extend more credit to MSMEs, we enhance job creation and productivity. Furthermore, with increased capital, banks can invest in technology and innovation, crucial for driving digital financial services such as mobile money and agent banking. These technologies are key to breaking down geographic and economic barriers, bringing financial services to even the most remote areas,” he added.

Views from other stakeholders

Analysts at Commercio Partners said Nigeria’s financial landscape has seen significant developments with the CBN introducing revised guidelines to enhance transparency and governance in the foreign exchange market. These guidelines emphasize ethical practices, real-time reporting, and regulated interbank trading while mandating compliance from banks, dealers, and BDC operators. Separately, the naira has appreciated steadily, supported by increased dollar inflows and the launch of the EFEMS, which has boosted market confidence by facilitating transparent and efficient FX transactions.

Managing Director, Afrinvest West Africa Limited, Ike Chioke said the recovery could be attributed to improved market confidence following the successful launch of the EFEMS designed to promote trading transparency. “Also, the liquidity supply boost provided by Nigeria’s successful pricing of $2.2 billion in Eurobonds earlier last week significantly boosted the exchange rate position against the dollar. We anticipate the Naira to regain more ground against the dollar this week, driven by aforementioned factors,” he said.

Chioke, listed other key policies of the apex bank that supported naira rally as the clearance of the $7 billion FX backlog and resumed sales of Open Market Operation (OMO) bills to Foreign Portfolio Investors (FPIs) at market reflective rates. He said: “Besides, the CBN Removed limits on rates quoted by International Money Transfer Operators (IMTOs) to incentives using the official channel for FX settlement. Eliminated the N2 billion ceiling on allowable interest-bearing deposits by DMBs at the Standing Deposit Facility (SDF) window. The apex bank also committed the Nigeria National Petroleum Corporation Limited (NNPCL) to domicile a significant portion of revenue flows and other banking services with the CBN to enhance reserves accretion”.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, said the move helped to ease pressure at the retail end of the FX market while applauding the extension of BDCs’ recapitalisation to June 3, 2025. He said: “The CBN is willing to partner with BDCs to ensure that the recapitalisation process is seamless. We are sending a message of unity, collaboration and opportunities to ABCON members to continue to strive to ensure they meet the new capital requirements.”

Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said the CBN’s decision to allow IOCs operating in Nigeria to sale 50 per cent of bulk FX proceeds at domestic forex market helped in increasing forex availability in the market, thereby aiding in exchange rate stabilization. He had predicted rightly that the impact will be more pronounced towards the end of the year.

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Michael Adigun, a Lagos-based, entrepreneur, said that the stability in exchange rate has already started to have positive impact on the prices of goods and services. “For instance the price for international school fees has dropped by 10 per cent; cost of medical tourism reduced by 15 per cent and prices of air fares for local and international trips dipped by 15 per cent”. Another Abuja-based civil servant, Stevens Okoye said: “The current developments in the foreign exchange market has started reigning in inflation as prices of most necessities are becoming relatively lower in the market. In a most serious note, the positive impacts include also heighten confidence of the public in the local currency as it eliminates currency substitution behaviour which hitherto being adding pressure on our local currency.”

Okoye said what is needed is to continually support the CBN policies, to further attract more benefits to businesses and economy. Also, the easing of capital control measures, including the timely facilitation of over $9 billion principal capital & dividend outflows by qualified investors, and the reversal of the 2016 ban on access to FX in the official market for importers of 43 essential items headlined the multiple steps taken thus far by the CBN to restore foreign investor confidence and foster an environment conducive for businesses to thrive.

Upon assuming office in October 2023, the apex bank leadership prioritised reforms to rebuild Nigeria’s economic buffers and strengthen resilience. Inflation, which had surged to 27 per cent, was one of the most pressing challenges, partly driven by excessive money supply growth. While the Gross Domestic Product (GDP) growth had stagnated at a meagre 1.8 per cent over the previous eight years, money supply expanded rapidly, averaging about 13 per cent growth annually. “This imbalance not only fuelled inflation but also contributed to a significant depreciation of the naira. As we all know, inflation creates uncertainty for households and businesses, acting as a silent tax by eroding purchasing power and driving up living costs,” Cardoso said.

The apex bank boss revealed that the nation was also grappling with a fiscal crisis, marked by unsustainable deficit financing through the CBN’s Ways and Means advances, which had reached an unprecedented N22.7 trillion by 2023—equivalent to almost 11 per cent of the GDP. In addition, quasi-fiscal interventions by the CBN, totalling over N10 trillion, undermined market confidence and weakened the effectiveness of our policy tools. These actions shifted focus away from CBN’s primary responsibility—maintaining price stability. “They compromised transparency by bypassing essential oversight mechanisms, which are vital for accountability. Moreover, they strained monetary stability, contributing to inflationary pressures and market distortions,” he said.

“Under my leadership, we have taken decisive steps to move away from these practices. We have ended years of fiscal deficits financed through CBN’s Ways and Means advances, reinforcing our commitment to price stability and promoting fiscal discipline,” Cardoso stated.

Continuing, Cardoso said: “Our tight monetary policy stance has altered the previous dire trajectory, and we expect a downward trend in 2025. Inflation remains unacceptably high, but the signs are encouraging, particularly given that the full effects of monetary policy typically take six to nine months to impact the consumer sector. Our commitment is unwavering: we will prioritise price stability until its benefits are felt by every Nigerian.”

December 10, 2024