The Nation Newspaper

Category: Special Report

  • Forging a new path for ECOWAS

    Forging a new path for ECOWAS

    Amid recent geopolitical turbulence, a pivotal gathering of experts and stakeholders convened in Lagos last Monday, organised by influential organisations including the Civil Society Legislative Advocacy Centre (CISLAC), West Africa Civil Society Forum (WACSOF), and Transition Monitoring Group (TMG). Against the backdrop of Niger, Mali, and Burkina Faso’s withdrawal from the Economic Community of West African States (ECOWAS) and the indefinite postponement of elections in Senegal, the gathering aimed to navigate the pressing issues facing the region. With a shared commitment to fostering regional stability and democratic governance, participants deliberated on strategies to ensure the speedy restoration of democratic rule in the affected countries. In this special report, Associate Editor ADEKUNLE YUSUF encapsulates the profound insights and resolutions emanating from the gathering

    As a pivotal regional force for economic, social, and political advancement, the Economic Community of West African States (ECOWAS) is being severely tested. In recent years, political turmoil and security crises within some member states have shaken the foundation of the bloc’s commitment to growth and unity. Since August 2020, the region has been plagued by a flurry of coups, undermining democratic governance and disregarding constitutional norms. To confront these formidable challenges head-on, a coalition of civil society organisations (CSOs) across West Africa, including prominent bodies such as the West African Civil Society Forum (WACSOF), Civil Society Legislative Advocacy Centre (CISLAC), Transition Monitoring Group (TMG), West Africa Network for Peacebuilding (WANEP-Nigeria), Nigeria Network of NGOs, and Human and Environmental Development Agenda (HEDA), convened for an interactive meeting to address the pressing issues affecting ECOWAS and regional integration in West Africa. It was a platform for dialogue and collective action to navigate the turbulent landscape facing the region.

    The meeting, convened in Lagos on Monday, February 5, 2024, delved deep into the current state of affairs within ECOWAS and the way forward. With mounting concerns over escalating instability and the looming specter of potential disintegration, participants fervently discussed the urgent measures required to safeguard the regional bloc’s integrity. Acknowledging ECOWAS’s pivotal role as a beacon for regional integration in Africa, experts underscored the significance of the organisation’s achievements. Notable milestones include the facilitation of free movement of persons, the implementation of trade liberalisation schemes, and, most notably, the establishment of a Customs Union. The landmark entry into force of the Common External Tariff (CET) in 2015 stands as a testament to ECOWAS’s commitment to fostering deeper integration within the region.

    Advocacy for a more  integrated West Africa

    In his opening remarks, Auwal Ibrahim Musa Rafsanjani, the Executive Director of CISLAC and Chairman of Transition Monitoring Group, emphasised the critical need for a more integrated West Africa in combating the scourge of violent extremism, terrorism, and other trans-border crimes plaguing the ECOWAS region. Highlighting the pivotal role of regional cooperation in addressing these pressing challenges, Rafsanjani underscored the significance of measures implemented by the Community to promote collaboration among member states on criminal matters. He cited examples such as the protocol on mutual assistance on defence matters and the convention on small arms and light weapons, which have significantly bolstered regional efforts to combat terrorism and crime. Rafsanjani stressed that a united ECOWAS is essential in the fight against terrorism and organised crime in the region, underscoring the imperative of solidarity and collective action to safeguard peace and stability across West Africa.

    “As civil society organisations in Nigeria and the West African region, we are resolute in working to ensure ECOWAS stays focused on promoting genuine democratisation processes in the region. It is against this backdrop that this CSO interactive meeting is holding to put out a common position which emphasises more political, economic and security stability for West Africa. On this note, CSOs urge politicians in the region to desist from truncating democracy at the detriment of the people. It is disturbing to see the trend of events where politicians abuse democratic processes and ascribe to themselves arbitrary powers over constitutional governance. These trends are against the critical pillars of ECOWAS Vision 2050.

    “In line with this, the CSOs in Nigeria and West Africa condemn the indefinite postponement of the February 25, 2024 election in Senegal without consulting widely with the people. This type of action is viewed as an abuse of power and must be rejected in the region as it is the type of undemocratic behaviour capable of instigating a military junta. It is therefore important for the government of Senegal to immediately fix a new date for the election to be held. CSOs working in Nigeria and other parts of West Africa are interested in ensuring economic development that is capable of reducing the poverty and infrastructural deficit in the region. Therefore, we will continue to support regional stability to boost the economic viability of West Africa.”

     Rafsanjani further underscored the far-reaching implications of recent regional events, cautioning that their ripple effects could potentially destabilise the peace and economy of numerous countries within the ECOWAS region. Emphasising the paramount importance of dialogue in resolving disputes, he reiterated the imperative for ECOWAS to refrain from resorting to the use of force, aligning with the operational guidance outlined in the Protocol on Non-Aggression. He emphasised the collective responsibility of every ECOWAS member state to not only belong to the community but also actively implement measures and mechanisms aimed at achieving the critical objectives of economic and social prosperity for every citizen. Looking ahead to the realisation of ECOWAS Vision 2050, which prioritises the transition from an ECOWAS of States to an ECOWAS of the People, Rafsanjani underscored the necessity of activating the National Focus Pe rsons of ECOWAS.

    ECOWAS Vision 2050 explained

    Speaking on ECOWAS Vision 2050, Solomon Adoga, TMG’s Senior Programme Officer, provided insights into its inception, highlighting its evolution from an assessment of ECOWAS Vision 2020 with stakeholders represented. Adoga emphasised the remarkable success of the ECOWAS integration process, noting its status as one of the most successful among all Regional Economic Communities (RECs) in Africa. Originating in 2007, ECOWAS Vision 2020 aimed at eradicating poverty, consolidating regional peace and security, and promoting sustainable social and economic development. Anchored on the slogan ‘moving from an ECOWAS of States to an ECOWAS of Peoples’, the vision was structured around five pillars: peace and security, good governance, development of regional resources, economic and monetary integration, and promotion of the private sector.

    While ECOWAS made significant advancements in various areas, including regional integration, peace and security, economic cooperation, and infrastructure development, Adoga acknowledged shortcomings in peace, security, and stability, citing examples such as Cote d’Ivoire, Mali, Guinea, Guinea Bissau, Burkina Faso, and Niger. Transitioning to ECOWAS Vision 2050, titled ‘ECOWAS of the Peoples: Peace and Prosperity for All’, Adoga outlined its five pillars: Pillar 1: Peace, Security, and Stability, emphasising the need to strengthen human security through sustainable initiatives to address multidimensional security threats; Pillar 2: Governance and Rule of Law, focusing on establishing and enhancing the functionality of strong and credible institutions to uphold fundamental rights, democratic governance, and justice delivery; Pillar 3: Economic Integration and Interconnectivity, aiming to enhance trade, market integration, and the achievement of economic and monetary union, in addition to facilitating the free movement of people and goods; Pillar 4: Transformation, Inclusive, and Sustainable Development, centered on improving living conditions through quality education, job creation, especially for youth and women, and enhancing resilience to public health challenges.

    “This pillar is also based on the structural transformation of economies driven by the digitalisation of the economy, entrepreneurship, science and technology and structuring investments in growth sectors. And lastly, pillar five has to do with social inclusion. This pillar places the ECOWAS citizens, mainly women, children and youth, and all vulnerable people (including people with disabilities and the elderly) at the heart of development and the integration process. By 2050, ECOWAS will have to meet the challenges of social cohesion among its people, create the conditions of a sense of belonging that is characteristic of Community citizenship that would foster the emergence of a cultural identity based on shared values,” Adoga said.

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    Chiemelie Ezeobi, Group Features Editor at THISDAY, underscores the ECOWAS SSRG’s mission to strengthen states’ abilities in addressing security threats and providing justice services. Despite ECOWAS initiatives like peacekeeping forces, Ezeobi highlights persistent issues like coups. She identifies barriers to ECOWAS unity such as mistrust and high travel costs, stressing the importance of regional integration for economic progress. Drawing from personal experiences, Ezeobi emphasises the need for effective communication and coordination in joint security efforts.

    The way forward

    Speaking on the pivotal role of civil societies in West African regional integration, Kop’ep Dabugat, the General Secretary of the West African Civil Society Forum (WACSOF), stressed that while regional integration initiatives were historically state-driven, recent developments in the ECOWAS revised treaty of 1993 underscored the importance of meaningful civil society engagement. Dabugat outlined key dimensions introduced by the revised ECOWAS treaty, including fundamental principles guiding integration such as non-aggression among member states, maintenance of regional peace and stability, and promotion of human rights and democratic governance. He noted  the treaty’s emphasis on issues of peace, security, and stability, which were absent in earlier versions, as well as the introduction of new community institutions like the Community Parliament, Economic and Social Council, and Community Court of Justice.

    In a comprehensive communique issued at the conclusion of the event, the stakeholders highlighted critical concerns regarding recent developments in the West African region, particularly the withdrawal of Mali, Burkina Faso, and Niger from ECOWAS. They emphasised that such withdrawals would significantly impede the progress made in peace, security, and economic cooperation within the region, especially in combating terrorism and promoting regional integration. The stakeholders expressed deep apprehension about the potential ramifications of these withdrawals, noting that they could exacerbate existing security challenges, increase corruption and illicit activities, and undermine democratic principles across West Africa. They underscored the urgent need for dialogue and reconciliation, urging ECOWAS to convene an emergency summit to address the situation comprehensively.

    Moreover, the stakeholders called for concerted efforts to ensure the restoration of democratic governance in the affected countries and emphasised the importance of free, fair, and credible elections. They advocated for ECOWAS to review and strengthen its protocols on good governance to prevent electoral manipulation and unconstitutional changes of government. In alignment with the ideals of ECOWAS Vision 2050, the stakeholders proposed various measures to enhance the organisation’s effectiveness and accountability, including the transition to elective representation in the ECOWAS Parliament and the operationalisation of consultative mechanisms at the national level. Additionally, they urged civil society and media to actively engage in peace-building efforts and support democratic processes in the region.

  • Climate change: A growing threat to people and the planet – A look at drought in Osun village

    Climate change: A growing threat to people and the planet – A look at drought in Osun village

    In the heart of Osun state, there’s a small village called Arinkinkin, tucked away in Irewole Local Government Area. This is a place where farming is everything. For generations, the villagers have relied on their crops—yam, maize, cassava, and groundnuts—to make a living. But recently, something has been changing. The land, once so fertile, is now struggling to give back what it used to. And it’s all because of a long, relentless drought.

    The farmers’ struggles

    Chief Taiye Alabe, the village head, has seen it all in his years of farming. But this? This is different. “We used to farm all year long. Now, the land won’t give us anything,” he says, worry in his eyes. His farm, like the others, has been hit hard by the drought. Without rain, the crops simply don’t grow, no matter how hard they try.

    Even the rivers and wells, which once offered water in abundance, have dried up. “We’re in trouble,” says Chief Yahaya Rufai, the Oluode of the village. “The soil’s so dry, the rivers barely have water anymore. The wells we used to rely on can’t even give us enough to drink.” For the people of Arinkinkin, it’s not just about losing money—it’s about losing everything.

    Mrs. Adigun, a farmer in her 60s, can’t remember a time when it was this bad. “The rains used to come on time, and when they did, they stayed for a while. Now, they’re late, and when they do come, it’s either too much or too little,” she explains, holding her hoe tightly in her hands. “This year, I’ve lost more than I care to count. I don’t know how much longer I can keep going.”

    Iya Olobi, a widow who’s lived in Arinkinkin all her life, is just as worried. “The farm is all I’ve got. Without it, I don’t know what I’ll do,” she says, staring out at her empty fields. “If things don’t change soon, we’ll lose everything.”

    A bigger problem

    Arinkinkin is just one example of a larger problem. All over the world, climate change is making life harder, especially for those who rely on farming. Droughts are happening more often, and they’re lasting longer. According to the World Meteorological Organization, droughts have increased by 29% since the 1980s. In places like Nigeria, the dry seasons are getting longer, making it harder to grow crops and find enough water.

    Africa, in particular, is feeling the heat. The Food and Agriculture Organization warns that climate change is already reducing crop yields, hurting livestock, and making water even harder to find. This puts millions of farmers at risk, just like the ones in Arinkinkin.

    What’s happening to the planet?

    It’s not just people who are suffering—our planet is too. Climate change is speeding up deforestation, raising carbon emissions, and pushing wildlife to the brink. The United Nations says more than a million species are at risk of disappearing because of what we’re doing to the planet.

    The land in Arinkinkin is a perfect example. The rivers are drying up, the soil is cracking, and what used to be lush and full of life is now barren. It’s a harsh reality for the people who’ve depended on it for so long.

    The call for help

    The villagers of Arinkinkin are pleading for help. They’re asking the government to step in and provide solutions that will help them now and in the future. Chief Alabe says they need better ways to manage water, especially during the dry season. “We need reservoirs, boreholes—anything that will give us water throughout the year,” he says, his tone firm but hopeful.

    Chief Rufai agrees, adding that farmers need more support to adapt to these changes. “We need training on how to grow crops that can survive these tough conditions. We also need better seeds and fertilizers,” he suggests.

    The villagers are also asking for financial help to recover from the crops they’ve lost. They need the government to invest in things like flood control systems and better water management, so they don’t have to keep fighting against nature alone.

    What can be done?

    There’s no quick fix to the problem, but experts agree we can start by making small changes that add up. In villages like Arinkinkin, solutions should focus on conserving water and using farming practices that can stand up to the changing climate. The African Development Bank recommends using drought-resistant crops and smart irrigation systems to help farmers weather the storms.

    On a larger scale, there is an urgent need for action. That means reducing greenhouse gases, shifting to renewable energy, and protecting the forests. The world’s wealthier countries should also help the communities that are most vulnerable to climate change, like those in Arinkinkin, with the resources they need to adapt.

    In conclusion

    As the people of Arinkinkin wait for relief, their story is a reminder of the bigger picture. Climate change is no longer something happening “out there”—it’s here, right now, affecting real people and their livelihoods. But there’s hope. If we work together—governments, communities, and organizations—we can find solutions. Time is running out, but we still have a chance to make a difference before it’s too late.

  • Revelry as Sanwo-Olu renews social contract with Lagosians

    Revelry as Sanwo-Olu renews social contract with Lagosians

    In a resounding display of transparency and citizen engagement, Governor Babajide Sanwo-Olu recently hosted the first town hall meeting of 2024. This event, centered in the largest senatorial district of Lagos, brought Sanwo-Olu to the forefront as a fellow townsfolk, positioning the citizens as stewards of progress. Amidst the lively discourse, Lagosians seized the opportunity to articulate the challenges faced by residents, while eagerly listening to the government’s initiatives aimed at enhancing their lives. As Lagos, the economic powerhouse of Nigeria, grapples with a myriad of needs and a population exceeding 20 million, the meeting addressed critical issues such as special status for the state, state police, infrastructure development, healthcare and social welfare. Associate Editor ADEKUNLE YUSUF reports

    Town hall meetings, the heartbeat of democratic engagement, illuminate the path forward, fostering unity in diversity and steering the collective destiny toward shared aspirations. In these communal gatherings, the pulse of the community quickens and the vibrant tapestry of diverse perspectives unfolds. Participants, representing the kaleidoscope of local life, converge to share aspirations, air concerns and sculpt the collective destiny. Within the walls of a town hall, democracy dances in lively discourse as the people transform into active citizens, with their voices resonating through the hallowed halls, stitching the fabric of shared responsibility. It is a democratic alchemy where ideas, both grand and humble, meld into actionable initiatives for the benefit of all.

    Motivated by the desire for inclusive governance, the administration of Governor Babajide Sanwo-Olu took a significant step by organising its inaugural town hall meeting in 2024. The event, held at the iconic Balmoral Convention Centre in Ikeja, served as a platform for residents in the Lagos West senatorial district, the largest in the state. Governor Sanwo-Olu assumed the role of a fellow townsfolk, bridging the gap between leadership and citizens who, in turn, were acknowledged as stewards of progress. The town hall, an epitome of egalitarian engagement, unfolded as a stage for civic participation on Thursday, January 25. The well-attended gathering transformed every expressed sentiment into a stroke on the canvas of communal governance, vividly portraying the Lagos landscape with the colours of participatory zeal.

    In his opening remarks, the Commissioner for Information and Strategy, Mr. Gbenga Omotoso, highlighted that the town hall meeting was a reflection of the open-door policy embraced by the administration of Governor Babajide Sanwo-Olu and his deputy, Dr. Kadri Obafemi Hamzat. He highlighted that although Lagos West Senatorial District led the way, subsequent town hall meetings in other senatorial districts would provide opportunities for government officials to engage with the public, present reports of stewardship and assure stakeholders that, despite any challenges, the state remains on a steady course. This approach, he added, underscores the leadership’s commitment to listening to feedback and implementing necessary actions for the betterment of the state.

     “The philosophy of the Sanwo-Olu/Hamzat Administration is that for democracy to maintain its essence, the active involvement of the people in governance must be encouraged and, indeed, deliberately courted. This is because the citizens are the bedrock of democracy. It is, therefore, in furtherance of this principle that we are gathered here today to further promote our agenda of running an all-inclusive government through the instrumentality of the THEMES Plus Agenda – the six-pillar development plan of the administration,” Omotoso said.

    The town hall meeting served as a crucial platform for Lagosians, particularly from the Lagos West Senatorial District, to voice the challenges confronting residents and to gain insights into the government’s initiatives aimed at enhancing their quality of life. The significance of the meeting is deeply rooted in the state’s status, not only within Nigeria but also in West Africa. Lagos, being the nation’s economic capital, boasts an estimated population exceeding 20 million, presenting a multitude of needs and challenges. With a Gross Domestic Product (GDP) of $130 billion, the state ranks as the fifth-largest economy in Africa. Given its mega city status and economic importance, citizens expressed the view that Lagos merits special recognition in the federation. Specific expectations included advocating for state police, establishing a state-owned airline, improving the road network, and involving traditional rulers in advisory councils within the state.

    Lagosians also emphasised the importance of creating a department for early intervention for children born with disabilities and advocated for physiotherapy units in all primary health sectors. They called for the establishment of an ultra-modern library and encouraged initiatives supporting research and learning among the youth. Bishop Stephen Adegbite, representing the Lagos State Christian Association of Nigeria (CAN), stressed the need for the Lagos State Traffic Management Authority (LASTMA) to diligently enforce traffic rules, especially against commercial transporters who often flout regulations. He further highlighted the potential use of abandoned federal government buildings to address accommodation challenges in the state.

    Oba Kabir Shotobi, the Ayangburen of Ikorodu, stressed the need for urgent action against insecurity in the state. He pointed out that if Lagos had its police force, criminal activities would be minimised. Oba Shotobi underscored that the state has the capacity to ensure the security of its residents, urging the push for state policing to further enhance safety and reduce criminal activities in the region. He said: “The state can ensure the security of the residents. We are always number one and we should push for state policing.”

    Expressing gratitude for the unique privilege of providing an account of stewardship to Lagosians during the second term in office, Governor Sanwo-Olu acknowledged God’s grace in overcoming challenges and securing victory through the popular mandate of the people. He reflected on the tough journey, which recently concluded at the Supreme Court, highlighting the resilience and support from Lagosians that led to the successful outcome.

    “We have not rested on our oars since you the good people of Lagos State gave us the mandate to oversee the affairs of the state for another four years. I often like to describe this second term as our season of doubling. We want to move twice as fast as we did in the first term, and accomplish twice as much. Of course, our T.H.E.M.E.S+ development agenda will continue to guide and propel all that we do for the progress and development of Lagos State. As a government, our commitment to the well-being of citizens and growth of our state is resolute and unwavering. We remain dedicated to the successful implementation of pivotal projects,” Sanwo-Olu said.

    Governor Sanwo-Olu highlighted significant progress in transportation infrastructure, especially with the successful launch of the first phase of the Blue Line in the Lagos Rail Mass Transit. The ongoing work aims to complete the second phase, extending the rail line from Mile 2 to Okokomaiko during his administration. Additionally, the governor announced the imminent formal launch and commencement of operations for the Red Line, connecting Oyingbo to Agbado, with stops at Iju, Agege, Ikeja, Oshodi, Mushin, and Yaba expected within the next few months.

    “In the last two months, we have commissioned the Ikeja, Yaba and Oyingbo Flyovers’ component of the Red Line project. These flyovers have been built to significantly reduce the risk of accidents and collisions between trains and vehicles. They will also resolve vehicular congestion and delays along the Red Line corridor, and allow free movement of traffic.

    “The Opebi-Mende-Ojota Link Bridge and other arterial roads connecting the bridge will also be ready for commuters by the Second Quarter of this year. Upon completion of the link bridge, major traffic issues along the Opebi-Allen axis will be solved as alternative routes will be available for motorists travelling from Toyin Street, Allen Avenue, Ikeja and Maryland to Ojota enroute Lagos Island. It will also decongest traffic on Kudirat Abiola and Mobolaji Bank Anthony Way. We are improving traffic management for a more exciting commuter experience in Lagos and we are making access to modern infrastructure seamless. As a result of the ongoing construction of Opebi-Ojota-Mende bridge, over 100 Nigerian engineers are gainfully employed. Students from various universities, and members of the National Youth Service Corps (NYSC) are also on-site, learning practical aspects of their courses, such as Geology and Civil Engineering,” he added.

    Emphasising that these projects are geared towards enhancing connectivity between communities and ensuring a more efficient public transportation system, the governor announced plans to introduce electric buses for passenger operations later this year. This initiative follows the successful completion of a proof of concept validating the feasibility of non-combustible engines as a sustainable alternative to traditional fuel-powered vehicles. “Also, in the first quarter of this year, we will take delivery of an additional 100 units of Compressed Natural Gas (CNG) buses from the Federal Government for deployment on defined routes. The goal is to raise the fleet to about 1,000 units before the end of 2024. Rest assured that Lagos is making steady progress in its zero-carbon programme with the objective of becoming an emission-neutral city by 2050.

    “Our project financing plan for construction of the Fourth Mainland Bridge is being finalised. When completed, the project will be one of the longest bridges in Africa, providing a much-needed alternative to existing routes while also opening up new parts of the metropolis. Plans are also in top gear on the Lekki International Airport, which is expected to take pressure off the Muritala Muhammed International Airport.  It will sit on 5,000 hectares of land in the fastest-growing industrial zone in West Africa today, and is expected to cater to about five million passengers annually, traveling within and outside Nigeria,” he said.

    Additionally, the governor highlighted the inauguration of the 1.6km Babs Animashaun Road in Surulere, a reconstruction project led by the Chief of Staff to the President, Mr. Femi Gbajabiamila. The road, transformed from a single lane to a dualised four-lane carriageway, features two bridge components. This upgrade is expected to enhance traffic connectivity and reduce travel time from Surulere to neighboring Ikate and Orile areas.

    Underscoring the benefits of healthcare, Governor Sanwo-Olu noted his participation, alongside the Chief of Staff, in the commissioning of the three-storey, 80-bed Femi Gbajabiamila General Hospital situated at Iyun Road in Aralile Community, Surulere. He highlighted that this hospital, now under state government management, will supplement the existing healthcare facilities in Surulere and its environs. The addition of this facility is expected to enhance the capacity and overall quality of medical services provided by the  state. He said: “We are building the largest children hospital in West-Africa: Massey Street Hospital, and also a 500-bed Mental Health hospital in Ketu-Ejinrin Epe. Plans are also ongoing to establish a Medical University in collaboration with Federal Ministry of Health. The approval process is already underway and being fine-tuned with the National Universities Commission (NUC). The medical institution is anticipated churn out 1,500 personnel yearly to enhance capacity in medical services.”

    MSMEs play a pivotal role in fostering economic development and prosperity by serving as the backbone of any economy. Their significant contributions include job creation, generating employment opportunities that are vital for a thriving economy. Recognising the importance of MSMEs, the government said it has actively promoted vocational and skills acquisition as a pragmatic strategy to alleviate poverty and enhance financial sustainability. This approach aims to empower individuals with the necessary skills and knowledge, enabling them to participate actively in the economy, either as entrepreneurs or skilled workers. By fostering a conducive environment for MSMEs to flourish, according to Sanwo-Olu, the government strives to create a robust economic ecosystem that not only supports business growth but also addresses broader issues such as poverty alleviation and social protection. This commitment underscores the understanding that a thriving MSME sector is integral to achieving sustainable and inclusive economic development, he said.

    “This administration will not hold back investment in these programmes, believing firmly that lifting people out of poverty and setting them on the path to prosperity is the cardinal objective of government. A few days ago, beneficiaries of the Micro Enterprise Support Initiative, mainly youths, were empowered at LTV Blue Roof in Agidingbi with various start-off equipment that will aid their trade. Our 18 vocational centres have graduated over 16,000 youths. The graduands took vocational training in 19 skill development centres across the five traditional divisions in Lagos.

    “The course fees were borne by the state government. The initiative was targeted at empowering the grassroots, while giving young people an opportunity to discover their innate potential for economic independence. The life skills, would, no doubt, help the beneficiaries become self-reliant, just as their entrepreneurial abilities would be enhanced and make them contribute to the economic growth of the state,” he explained.

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     In a bid to mitigate the impact of fuel subsidy removal on the citizens, Sanwo-Olu highlighted that the government has allocated a significant sum of N50 billion for social protection in the 2024 budget. This allocation, which has been approved by the State House of Assembly and signed into law, aims to provide a safety net for vulnerable members of the society and alleviate the economic burden on the populace. Shifting focus to the tourism and entertainment sector, the governor stressed the commencement of the Lagos Film City project. This initiative marks the foundational step towards creating a vibrant ecosystem encompassing creative cinematography, tourism, leisure, entertainment, and educational opportunities. The Lagos Film City is envisioned to become a hub for cultural and artistic expressions, contributing to the growth and dynamism of the state’s cultural landscape.

    He said: “The project, being sited on 100-hectares of land in Ejinrin town in Epe Division, will open a vista of economic opportunities to talented youngsters in the culture and entertainment sectors. It will position Lagos continentally and globally as a destination for filmmakers and producers who want a custom-built location where they can deliver world-class films. Recent feats of Funke Akindele and her colleagues like Toyin Abraham and Mercy Akhigbe, among others, have shown that with the right environment, our young people have the wherewithal to catalyse artistic activity and economic prosperity in Lagos and Nigeria.

    “This massive potential in the creative sector is what underpins the Public-Private Partnership (PPP) deal that we reached with a consortium of entertainment investors, facilitated by Del-York Group, to develop the one-stop campus for learning, film production, post-production, visual effects, and other ancillary services that support the filmmaking process. Ogidi Studios and EbonyLife Cinema deserve special mention, as part of the indigenous entertainment partners working to bring our vision for the film industry to reality. Our eyes are on every sector of the economy. We are determined to seize every opportunity that exists, and leave behind a legacy of transformed infrastructure, social wellbeing, and economic prosperity.”

    In addressing security concerns, Governor Sanwo-Olu shared his satisfaction with the notable decline in bank robbery incidents in the state. According to the latest report from the State’s Security Trust Fund (LSSTF), Lagos has achieved a significant milestone by not recording a single incident of armed robbery targeting financial institutions for the fourth consecutive year. This achievement represents the longest period without such incidents over the last two decades, reflecting the success of security measures implemented to safeguard banks and financial establishments in the state.

    His words: “This feat was achieved through continuous review and fine-tuning of the state’s security architecture. Let me specially thank all our security agencies for the cooperation and dedication that has helped deliver this commendable outcome. In order to consolidate on our gains in the sector, we recently held the 17th Town Hall Meeting on security organised by the LSSTF, where stakeholders in the security circle, citizens and private sector donors met to evaluate issues relating to safety in Lagos.

    “The Security Trust Fund has consistently funded operations of security agencies across communities to ensure quick response to threats and crimes. This year, through the LSSTF, we will provide 300 additional patrol vehicles for our security agencies. In furtherance of our administration’s commitment to the security of lives and property of the people, we recently commissioned the newly-constructed Police Area “M” Command (Phase III & IV), Idimu, Lagos. Our administration pledges to continue to pursue policies and actions that will foster a safe and secure Lagos.”

    Governor Sanwo-Olu emphasised the importance of civic responsibility, declaring a firm stance against the disregard for the law. He highlighted that adherence to the rule of law is paramount to prevent chaos and disorder in Lagos, underscoring the commitment to maintaining a society where law and order prevail. He said: “I therefore implore each and every Lagosian to play their part in respecting and obeying the laws of the land. From paying our taxes, to obeying traffic rules, to disposing of our waste responsibly, to speaking up when we see other people breaking the law. These are all attitudes and habits that we must imbibe on this journey to a Greater Lagos.

    “On our part as government, we will continue to strive to make it easier for you to be law-abiding. We recognise that it is not enough to say the laws must be obeyed, we must also ensure that the laws are clear, fair and just. We have a duty, as government, to make it easier for taxes to be paid, and for waste to be properly disposed. If we want Lagosians to take our ‘Say Something If You See Something’ campaign serious, then we must make it easy for them to make reports, and we must guarantee quick and efficient responses. This is the beauty of a functioning society, everyone has a part to play, and everyone playing that part responsibly makes life easier and better for all. Together, we must play our part in achieving a truly Greater Lagos.”

     In response to the deluge of questions, observations, and commendations from participants, the governor emphasised that it is the constitutional responsibility of the members of the National Assembly to advocate for the special status of Lagos. In his words: “State policing is an ongoing conversation at the federal level, and we are not giving up on it, but we need to have it in mind that we are a federation and there must be a negotiation. Nobody can just make a pronouncement, there have to be constitutional changes for it to happen. We will continue to push it forward. Regarding insecurity, we are putting our destiny in our hands, we are supporting all the existing security architecture we have in the state. We have a functional Neighbourhood Watch, which is about 6,000-7,000 men, who are in the nooks and crannies of the state. We also want to increase the number because we have seen the efficiency and benefits of their work. We will fashion additional ways to ensure that we have a regular dialogue of information and engagement with traditional rulers.”

    Addressing the role of LASTMA, the governor affirmed that the agency would persist in upholding high standards and discharging its responsibilities impartially. In response to a query from Pa Muhammed Hassan, a former Permanent Secretary and retired Auditor General for Local Government in the state, regarding the establishment of a state-owned airline akin to Ibom Air owned by the Akwa Ibom State government, Sanwo-Olu disclosed that the plan has been in development for several months, with the state currently finalizing the financing model for the project. According to the governor, what the state is waiting for is the Federal Government’s approval and operational contingency for the airline.

    He said: “Over the last five months, Mr Deputy Governor and I have been working to put a concise plan together for the establishment of an airline, but we did not make the plan open because of the need to get adequate knowledge about the operational procedures of airlines. The business plan is viable and there is no issue about financing. The conversation has gone to an advanced stage but we need to get the proper information on operations before we go ahead to implement the plan.”

    The governor announced that the groundbreaking ceremony for the construction of the Fourth Mainland Bridge is scheduled to take place before the end of April. He outlined that the construction would occur in phases and revealed that the state government has undertaken substantial groundwork for the proposed new bridge. Sanwo-Olu mentioned that the government has reached the final stages of the construction planning, acknowledging that a few buildings would need to be demolished during the construction process. He assured that the owners of the affected properties would be duly compensated. He said: “Our project financing plan for the construction of the Fourth Mainland Bridge is being finalised. When completed, the project will be one of the longest bridges in Africa, providing a much-needed alternative to existing routes while also opening up new parts of the metropolis.”

    The governor revealed plans for the state government to receive an additional 100 units of Compressed Natural Gas (CNG) buses from the Federal Government in the first quarter of the year. He emphasized the intention to deploy these buses on designated routes, aiming to expand the fleet to around 1,000 units by the end of 2024. Sanwo-Olu highlighted the steady progress in Lagos’s zero-carbon program, with the aspiration to transform into an emission-neutral city by 2050. In addition, the governor affirmed the commitment to promoting vocational and skills acquisition as a practical strategy to alleviate poverty and enhance financial sustainability. He emphasized the administration’s dedication to investing in these programs, considering the upliftment of people from poverty and guiding them toward prosperity as a fundamental government objective. “There is no gainsaying that Micro, Small and Medium Enterprises (MSMEs) are the backbone of any economy, contributing to economic development and prosperity in many ways, chief among which is job creation of employment opportunities for people.”

    The event was also marked by the expressions of gratitude from beneficiaries of the state government’s programs aimed at addressing the specific needs of vulnerable residents. Mr. Abiola Adepoju, representing the Lagos State shoemakers’ association, shared his testimonial during the event. He commended the governor for providing the opportunity to participate in the 2022 skill capacity program for artisans and tradesmen. Adepoju expressed his appreciation, stating, “This capacity building is an eye-opener and has helped me in the area of expansion. The training has equally expanded my understanding of handling my business dimension better than before. I have three students undergoing training free of charge. I appreciate the state government.”

    The event witnessed heartfelt testimonials from beneficiaries, reflecting the positive impact of the state government’s programs on their lives. Mrs. Kehinde Agiri, a single mother of three and a member of the Lagos State Catering and Decoration Association, shared her story: “Though I was into catering, through the program of the state government, my business has upgraded. Since 2022, the Lagos State Government has empowered me with tools for my business. Now I am a professional caterer and also train people. I can take care of my children by myself.”

    Odeyale Tolulope, a single mother with a son diagnosed with a hole in the heart, expressed gratitude for the governor’s help through civic engagement. However, she mentioned her ongoing challenges and the need for additional assistance for her son, as she feels left alone. Uche Goodson, a native of Delta State, shared, “I graduated from the higher institution with distinction but decided to do handwork. The government had a package for me, which turned out to be an oven. This transformed my life around, and today, I am an employer of labour.”

    Akanimodo Bukola, from Ikoyi Obalende, spoke about her experience: “I used to have a group that takes care of physically challenged people, but now I am also physically challenged. Civic engagement took my case to the governor, and I was given a grant to help my disability. The governor gave me hope to live and continue to do the work I do for the people.”

    In his closing remarks, Governor Sanwo-Olu promised to rededicate himself to the promotion of the greatness of Lagos through people-focused policies. Highlighting the promising future amid prevailing challenges, the governor affirmed the commitment to addressing the present difficulties. While acknowledging the existing challenges, he said the administration remains dedicated to transparent communication and active engagement with Lagosians, aiming to provide a clear vision for navigating towards the bright and prosperous future ahead.

  • Russia is backing erring nations, says Akinyemi

    Russia is backing erring nations, says Akinyemi

    Nigeria’s former Minister for Foreign Affairs, Prof Bolaji Akinyemi, said yesterday that Russia has a hand in the Burkina Faso, Niger Republic, and Mali’s sudden announcement of departure from ECOWAS, as Russia is seeking to weaken ‘western influence’ in Africa. Akinyemi, in a television interview, said that he sees ‘the hand of Russia’ in what he described as a crisis that had befallen ECOWAS.

    The former minister said, “I think Russia is emboldening these three countries to break up ECOWAS as part of the attempt to weaken what one will call the western influence in this part of the world. And yet, Russia has not shown that it has the capability to help these three countries to combat the jihadists, the Tuaregs, the ISIS who are running wild in the Sahel.” He added that ECOWAS is being turned into a confrontational field between Russia and the United States, as he said that it was significant that the withdrawal statement came after the U.S. Secretary of State, Blinken, left Nigeria. The former minister said: “The reason I call it a crisis is because these three countries, in terms of landmass, that’s about half of ECOWAS. So, we’re not dealing with just a little hiccup on our hands.

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    “They’ve levelled charges against ECOWAS that it is being tele-guided by foreign powers. You know the power that they are referring to, and presumably, the fact that our president goes to France and he is in France at the moment kind of reinforces this fear in their minds that the ECOWAS policies are actually French policies. Number two, they say that the sanction is creating terrible economic situations for the people, whereas, they expect us to step in and help them confront the jihadists. Of course, I don’t expect us to do that when they are still under suspension. We’re going to need some clever steps, diplomatically on this matter, and I think that ECOWAS needs some fast-thinking to make sure that this situation does not get out of hand.”

    He added: “They said they’re leaving immediately. ECOWAS protocol says one year, that you give one year’s notice, and that during that one year, you carry out all your responsibilities, but the guys say they’re leaving immediately. Are you going to force them to stay, or are you going to use this confused situation to bring a palliative into this situation? I don’t believe that what is happening is going to be solved easily simply because we now have this confrontation between Russia and the Western countries and NATO, we should have that at the back of our minds.”

  • Burkina Faso, Mali, Niger and challenge of withdrawal from ECOWAS

    Burkina Faso, Mali, Niger and challenge of withdrawal from ECOWAS

    The capability and unity of the Economic Community of West African States (ECOWAS) have been put to the test as coup leaders in Burkina Faso, Mali and Niger quit the sub-regional group, following protracted disagreement over its rejection of military rule in West Africa. The three nations have joined forces to resist economic sanctions and potential military action by the other 11 countries within the bloc. Assistant Editor BOLA OLAJUWON looks at the issues surrounding the announcement and implications for the regional body.

    The Economic Community of West African States (ECOWAS), also known as CEDEAO in French and Portuguese, is rated by the international community as an example of well-integrated regional body in Africa. It is also considered one of the pillar regional blocs of the continent-wide African Economic Community (AEC). The regional political and economic union of 15 member-states was established on May 28, 1975, with the signing of the Treaty of Lagos. Its initial mission was to promote economic integration in the region.

    The member-countries comprise an area of 5,114,162 km2 (1,974,589 sq. mi), and have an estimated population of over 424.34 million. The goal of ECOWAS is to achieve “collective self-sufficiency” for its member states by creating a single large trade bloc by building a full economic and trading union to raise living standards and promote economic development. ECOWAS’s fundamental principles rely on equity, inter-dependence, solidarity, co-operation, non-aggression, regional peace, promotion of human rights, and economic and social justice.

    Its protocols and plans include the ECOWAS Free Movement of Persons, Residences and Establishment Protocol and the Ecotour Action Plan 2019–2029. The Free Movement of Persons Protocol allows citizens the right to enter and reside in any member state’s territory, and the Ecotour Action Plan aims to develop and integrate the tourist industry of each member state. The regional body also serves as a peacekeeping force in the region, with member states sometimes sending joint military forces to intervene in the bloc’s member countries at times of instability or unrest.

    A new storm

    As some members of a civil society organisation were canvassing the establishment of ECOWAS an ti-terrorism task force to tackle escalating threat of terrorism across West African region, a major crisis hit the 49-year old body on Monday. Three member countries – Burkina-Faso, Mali and Niger – which are affected by pervasive terrorism owing to attacks by militants in the Sahel, quit the sub-regional group, following protracted disagreement over ECOWAS rejection of military rule in West Africa.

    However, ECOWAS claimed that it was yet to get notification about the withdrawal announced by governments of the three countries. The three Sahel nations said in a joint statement on state televisions that they had made a “sovereign decision” to leave ECOWAS “without delay.” The juntas said they have “decided in complete sovereignty on the immediate withdrawal of Burkina Faso, Mali and Niger from the ECOWAS,” alleging that the bloc has “moved away from the ideals of its founding fathers and pan-Africanism” after nearly 50 years of its establishment.

    The statement added: “Furthermore, ECOWAS, under the influence of foreign powers, betraying its founding principles, has become a threat to its member states and its populations whose happiness it is supposed to ensure.” Military coups were common in Africa during the Cold War, and now seem to have returned. Between January 2020 and August 2023, there were five attempted and nine successful coups – the last being the military takeovers in Niger (July) and Gabon (August). Nearly 20 per cent of African countries have experienced coups since 2013.

    Most recent coups have happened in West Africa, especially in French-speaking countries. This has alarmed the ECOWAS, which hurriedly convened summits on the issue in February 2022 and July 2023. As in Mali, ECOWAS countries have imposed sanctions on Niger and threatened to intervene militarily to dislodge the coup leaders if they fail to reinstate deposed president Mohamed Bazoum. And as with Mali and other cases, experience shows that sanctions alone cannot deter overthrows – the root causes must be addressed.

     Struggling with jihadist violence and poverty, relations between the regimes and ECOWAS have been ruptured, following the coups took place in Niger last July, Burkina Faso in 2022 and Mali in 2020. The three countries were suspended from ECOWAS, with Niger and Mali facing heavy sanctions. They have hardened their positions in recent months and joined forces in an “Alliance of Sahel States.” The French military withdrawal from the Sahel – the region along the Sahara desert across Africa – has heightened concerns over the conflicts spreading southward to the Gulf of Guinea states – Ghana, Togo, Benin and Ivory Coast.

    The prime minister appointed by Niger’s military regime, Ali Zeine, Thursday blasted ECOWAS for “bad faith” after the bloc largely shunned a planned meeting in Niamey. Niger had hoped for an opportunity to talk through differences with fellow states of ECOWAS which has cold-shouldered Niamey, imposing heavy economic and financial sanctions, following the military coup that overthrew elected president Mohamed Bazoum.

    The bloc, in a statement on Monday, said it was yet to get any official or direct notification from the three countries. The statement reads: “The attention of the Commission of the Economic Community of West African States (ECOWAS Commission) has been drawn to a statement broadcast on the National Televisions of Mali and Niger announcing the decision of Burkina Faso, Mali and Niger to withdraw from ECOWAS. The ECOWAS Commission is yet to receive any direct formal notification from the three member states about their intention to withdraw from the community.

    “The ECOWAS Commission, as directed by the Authority of Heads of State and Government, has been working assiduously with these countries for the restoration of constitutional order. Burkina Faso, Niger, and Mali remain important members of the community and the authority remains committed to finding a negotiated solution to the political impasse. The ECOWAS Commission remains seized with the development and shall make further pronouncements as the situation evolves.”

    The beginning of tense ties

    In the last four years alone, there have been seven military coups in West and Central Africa. Four of the countries experiencing coups are members of ECOWAS, a regional organisation set up to promote stability and cooperation. In August 2020, a group of Mali’s colonels led a coup against President Ibrahim Boubacar Kaita. In 2021, the military led a second coup against the interim president Colonel Bah Ndaw. Guinea experienced a coup in 2021, Burkina Faso in 2022, and most recently, Niger met the same fate when General Abdourahmane Tchiani seized power in July. Outside of West Africa, Chad and Sudan also experienced military coups in 2021.

    The original member-states – Benin, Burkina Faso, Cabo Verde, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo – wanted a large trading bloc that would facilitate self-sufficiency and cooperation among its member states as well as tackle political and economic tensions that often threatened their progress and stability. Before the current trend of instability, large-scale conflicts had decreased and coup d’états had become less frequent throughout the 48 years of the group’s existence. But, lack of good governance has bred long-festering grievances, frustration, extremism, violent insurgencies and communal conflicts.

    However, recognising a connection between the economic prospects of individual states and political stability and security in the region, ECOWAS formed a peacekeeping alliance, the Economic Community of West Africa States Monitoring Group, in 1990. The monitoring group established a toolbox of responses for “extra-constitutional changes” in member states. These tools include sanctions, membership suspension, and the deployment of peacekeeping forces in accordance with ECOWAS Revised Treaty.

    Owing to intransigence of the coupists in Niger Republic, ECOWAS heads of state met and the bloc’s chairperson, Nigerian President Bola Tinubu, in accordance with ECOWAS Revised Treaty, declared that “no option is taken off the table, including the use of force as a last resort.” ECOWAS leaders had, after their meeting, renewed in strong language their condemnation of the military coup and of the junta’s detention of President Bazoum. The group called for his reinstatement in power and “a quick restoration of constitutional order.”

     ECOWAS had expressed zero-tolerance for coups and condemned them as an illegal usurpation of power that rarely benefits the people or the country where coups have taken place. The leaders’ summit underscored “the determination of the ECOWAS Authority to keep all options on the table for the peaceful resolution of the crisis,” while saying that a “standby force” should be prepared for use “to restore constitutional order.” The statement gave no indication of the conditions under which any use of force would be considered.

    The bloc vowed to enforce its sanctions, including the closure of borders with Niger, and economic and financial sanctions on the country. It also will maintain travel bans and a freezing of assets “on all persons, or groups … whose actions hinder” peaceful efforts to restore Bazoum to power. But despite ECOWAS leaders’ warning to Niger coupists, Mali and Burkina Faso offered statements of support for Niger’s junta.

    Why ECOWAS took a harder line against the coup leaders in Niger

    ECOWAS recognises the coup in Niger is an existential challenge not only to the political integrity of Niger, but to the security, political, and economic stability of the Sahel region, Coastal West Africa — and to ECOWAS itself. The group’s leaders know that the coup organisers in Niger were probably influenced by the success of the coups in Mali and Burkina Faso. They know that West Africa is at a tipping point. They know that other states in the region are facing serious economic and political problems and are vulnerable to internal instability. ECOWAS leaders, especially in the region’s four most important states (Nigeria, Ghana, Ivory Coast and Senegal) recognised that they have to take a firm stand. Failure to take strong action against Niger could energise other soldiers in West Africa to act unconstitutionally. The African Union (AU) also suspended Niger from all its activities following the military coup there and told its members to avoid any action that might legitimise the junta.

    Tinubu

    Weak enforcement of sanctions

    After the hardline position taken by Nigeria-led ECOWAS’ leadership, politicians, especially from Northern Nigeria, were introduced into the regional body’s stance with the claim of age-old relationship between the North and Niger. The role played by Northern rulers also reduced the stance of the regional body. Some politicians also lashed in on the matter by accusing President Tinubu of playing hardline position on the Niger issue, forgetting the principles set out in the AU Solemn Declaration on Security, Stability, Development and Cooperation in Africa adopted in Abuja on 8 and 9 May 2000 and the Decision AHG. DEC 142 (XXV) on the framework for AU’s reaction to unconstitutional change of government, adopted in Algiers in July 1999. The framework specified sanctions to punish unconstitutional change of government as well as suspension from the organization.

    Also, the changing global order has created an enabling environment for the recent spike of takeovers in Africa’s ‘coup belt’ – with Russia and newly assertive middle powers like Wagner offering themselves as partners to putschists. As the United States retrenches to pursue its strategic competition with China, its capacity to invest seriously in both strategic imperatives and values-led foreign policy objectives is coming under strain. With the essential taking precedence over the good, upholding democracy in Africa has slipped down the list of America’s strategic priorities.

    Africa’s own system for deterring takeovers has also weakened considerably. The African Union’s enforcement of its coup-prohibiting rules grew increasingly inconsistent during the same period, during which time it began to enforce only selectively, due to the whims of powerful AU member states. This started with the coup in Mauritania in 2008, and was followed by Abdel Fattah el-Sisi’s post-coup election in Egypt, and more recently by coup in Sudan. Russia, to a greater degree – places serious political and financial capital behind their engagement as well as no-questions-asked security support to the coup leaders in the Sahel. This creates outsized impact compared to the mid-level Western official engagement and more conditional provision of financial and security support.

    Russia now creates an enabling environment for West Africa’s autocrats by making their international and African-regional isolation impossible. ECOWAS also has a history of suspending and sanctioning member states, only to then readmit and allow them to participate in ECOWAS activities so long as they fulfilled the requirements of holding a “democratic election.” ECOWAS is credited by many with enhancing economic growth and cooperation in the region. However, it has fallen short in addressing challenges to democracy and governance. Economic sanctions, especially those imposed by countries with their own economic challenges and needs, simply do not have enough leverage to sway a leader vying to seize power for non-economic reasons. Additionally, deterrence can only work when tools are applied consistently and predictably. Despite numerous instances of insecurity and instability, ECOWAS has only sent a peacekeeping force seven times since it was created. Even with the recent spate of coups, the last time ECOWAS deployed a security/peacekeeping force was in 2017. That was in The Gambia, and the coup ended without violence. Like many multilateral organisations, ECOWAS operates largely by consensus—something hard to achieve when it comes to sanctions and military deployment across state lines.

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    Also, the military rulers in the three countries had accused France of tele-guiding the ECOWAS leaders on sanctions and military options. France, a former colonial power which sees itself as a military power in the region and has intervened militarily in the troubled Sahel, faces growing anti-French sentiments across the region. Although Paris still maintains a military presence in Cote d’Ivoire, Senegal, Gabon, Djibouti, and Chad, many see 2023 as the year that marked a significant shrinking of France’s hold on its African allies.

    Other analysts’ perspectives

    An Associate Professor and the Acting Director of Research and Studies Department at the Nigerian Institute of International Affairs (NIIA), Efem Ubi, yesterday recalled that he asserted in a recent paper published by Financial Nigeria that if ECOWAS intervened militarily in any of the three countries, it would be its end.

    I think the issue of military coups has not been handled rightly by the bloc,” Ubi said.

    He said the sanctions placed by ECOWAS on the three countries only affect the citizens and not the coup plotters. “ECOWAS has to look at the root causes of the problem of coups in West Africa. I have said on many occasions that root causes of military takeover have not been addressed. What I think ECOWAS should do is to embrace more diplomacy. It’s the military option that has degenerated to this point. They should find a way of discussing with the countries and bring them back on board. The best way is to manage the problem through dialogue,” he said.

    However, former Vice Chancellor of Federal University Oye- Ekiti, Ekiti State, Prof. Kayode Soremekun, said the three countries have done what they think is in their interests. According to him, ECOWAS should use persuasive diplomacy. “The three countries should also not be carried away by the euphoria of the movement. I hope they are not being edged on by external forces. Russia is showing keen interests in the region. I hope this is not a funeral song of ECOWAS being sung. Therefore, Nigeria and others should bring them back into the fold.”

    But, a one-time Ambassador to Belgium, Prof. Alaba Ogunsanwo, said it was not the first time that a country would withdraw from ECOWAS. According to him, Mauritania, which was part of the countries that signed the ECOWAS Treaty in Lagos in 1975, gave one year notice in 1999 that it was leaving the organisation. “It left and it has not come back. These three countries – Mali, Burkina Faso and Niger – are landlocked, which means it will be difficult for them without the ECOWAS neighbours interacting with them. Before ECOWAS was established, the three countries were interacting with eachother.

    “Because they are under suspension, other ECOWAS countries can say they are rejecting their withdrawal. They can also say we will only accept your withdrawal when you return to civilian rule and the civilian governments can now say they are leaving ECOWAS. The situation is different from Mauritania, which said it would prefer to join the Maghreb Union. In ECOWAS, like other international organisations, individual countries can decide to join or not to join, depending on the calculations of the interests belonging to the organisation. The three as sovereign states can say they are withdrawing from ECOWAS.

    “And ECOWAS can say you are the one who will suffer. Let’s see how you will survive. And ECOWAS can punish them more. I also know that some people would say let ECOWAS go and use force. But because ECOWAS is an international organisation, it should just allow erring members to go because they are sovereign countries. They may suffer from more sanctioning and when they learn their lessons; they can come back.”

    A former Permanent Secretary, Ministry of Foreign Affairs, Ambassador Bulus Lolo, described the decision of the three West African countries as a new development, which is not unconnected with the current political situations in the three countries. Stressing he was not surprised by their actions, he, however, said it is a storm in teacup that would soon fizzle out the former Permanent Secretary said: “They are sending a signal, but the point is that they will be isolated as they are now. Down the road, they will be the one who will later want to seek readmission.”

     He also asked rhetorically: “Where are they going to? After the present leadership, what will be the future of the countries?” Lolo said no democratic government would want to follow their path of action.

  • Achieving more inclusive financial solutions with Fintechs

    Achieving more inclusive financial solutions with Fintechs

    The demand for smart and innovative solutions that facilitate seamless digital transactions has become more critical. How tech companies navigate and meet these expectations hinges on their profound understanding of marketplace challenges, combined with their astute ability to stay ahead of the curve through predictive intelligence and product engineering, writes Assistant Business Editor COLLINS NWEZE

    Michael Stevens, 30, was leaving home for work when his smartphone beeped with a familiar Facebook message alert. It was a reminder for him to send monthly allowance to his 80 year-old mother living in Ijebu Ode, Ogun State.

     His wife, Victoria, had reminded him the previous night of the allowance and how badly his mother needed the money to pay her medical bills. Two payment options came to his mind. The first was to pay through internet banking platform of a commercial bank. The other options were to use Zest QR Codes, Quickteller or Paga network.

     Few minutes later, he went for the Zest QR Codes option. Zest is a platform orchestrator connecting businesses and lifestyles to payments. It is the fintech subsidiary of Stanbic IBTC Holdings Plc. Fintechs, such as Quick-teller, MoniDey, Baxi, PocketMoni, Unified Payments, Paga, Remitta and Cellulant, are now part of the financial system, offering banking services to both the banked, underbanked and unbanked.

     In the Fintech space, Zest has a mission to revolutionise the e-payment sector and boost e-commerce penetration. Positioned to become the leading end-to-end fintech services provider, the visionary leadership of Ifeoluwa Adekunle-Yusuf, Zest Vice President, Products and Engineering, guides the company’s technological advancements. Zest is a solutions-driven platform with a mission to reshape the e-payment landscape. Recently, the company unveiled a bouquet of revolutionary product offerings in key cities such as Lagos, Port-Harcourt, Kano, and the Federal Capital, Abuja. These offerings are meticulously designed to meet the e-payment needs of consumers, businesses, application developers, and other fintech service providers. Zest is primed to introduce game-changing innovations that will simplify the way businesses operate and enable individuals to navigate the financial landscape with ease.

    Customisable solutions for every business

    Zest is aiming to catalyse the next wave of growth in the financial services sector, benefiting businesses, consumers, and technology enthusiasts alike. One of Zest’s key strengths is its ability to provide product design and development services tailored to the unique needs of each business. It is meticulously crafted to manage advanced software, optimising daily transaction volumes.

     The platform offers customisable product offerings for e-commerce stores at no charge, providing increased visibility through the Zest marketplace, the central hub for all sellers. This commitment to customisation and ease of use sets a new standard for e-payment solutions. Zest executes a resolution-driven platform orchestration strategy that serves consumers, businesses, and application developers. This approach eliminates barriers and simplifies the process for businesses looking to establish their online presence and for other fintech service providers.

     By providing multiple payment rails through a unified gateway that includes cards, USSD, QR codes, and account-based payments, Zest offers unparalleled flexibility. Equipped to manage payments in over 40 different currencies, Zest is a global solution. Consumers can easily download the app from both the iOS and Android stores. The bank-agnostic app provides various payment options, including cards, USSD, and wallets.

    Innovative product design

    Ifeoluwa Adekunle-Yusuf, the Vice President of  Product and Engineering at Zest, with her exceptional skills and insights, leads a team that crafts products that meet businesses’ needs for innovative payment solutions with a flawless user experience. She is vast in digital payments product development, business expansion, and market penetration, with a deep understanding of the intricacies of payments and card scheme connectivity.

     Driving Zest to emerge as the preferred end-to-end fintech services provider for businesses and individuals and to offer product design and development services tailored to the unique needs of each business, Ifeoluwa embodies the essence of professionalism. Her background is in products and engineering, with extensive knowledge in MSO setup, MID configuration, and technical implementation. Ifeoluwa holds various certificates in Product Management, Fraud Management, Agile, Business Analysis, and Process Management. Her proficiency in Secure Payment Gateways and digital skills further underscores her commitment to excellence.

     Zest translates business requirements into innovative product solutions through a logical and organised approach. With the spirit of innovation and change that defines Zest, it seeks to continually improve smart payment options, integration, and e-commerce functionality. Zest enhances payment options, makes integration seamless, and makes e-commerce platforms more efficient. As technology continues redefining how we conduct financial transactions, Zest is a shining example of innovation with a purpose, creating customised solutions, enhancing the user experience, and breaking down barriers in the fintech landscape.

     Understanding Nigeria Fintech industry

    According to McKinsey & Company report, banking in Nigeria remains an attractive sector, with over $9 billion in value pools, but despite high levels of competition, the vast majority of consumers are underserved. Lack of access to services, especially in rural areas, issues of affordability, and poor user experience all contribute to the frustration consumers experience right across the customer spectrum.

    This has created an opening that Fintechs have been quick to take advantage of, with many stepping up to develop enhanced propositions across the value chain to address pain points in affordable payments, quick loans, and flexible savings and investments, among others. One of the significant trends in Fintechs is the increasing adoption of mobile payments, which offers convenience for users to make transactions from their mobile devices. This service has bridged gaps in financial inclusion by providing basic banking services even in remote areas where traditional banking may not be accessible.

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     At the same time, a youthful population, increasing smartphone penetration, and a focused regulatory drive to increase financial inclusion and cashless payments, are combining to create the perfect recipe for a thriving fintech sector. Nigeria is now home to over 200 fintech standalone companies, plus a number of fintech solutions offered by banks and mobile network operators as part of their product portfolio. Between 2014 and 2019, Nigeria’s bustling fintech scene raised more than $600 million in funding, attracting 25 percent ($122 million) of the $491.6 million raised by African tech startups in 2019 alone—second only to Kenya, which attracted $149 million.

     Fintechs capitalisation in Nigeria

     The Central Bank of Nigeria (CBN) set N2 billion capital benchmarks for firms involved Fintechs and payment operations. Those in the top category, dealing with switching and processing, as well as mobile money operation, will have a N2 billion shareholders’ funds unimpaired by losses. According to a document conveying the guidelines, six categories of payment operators were newly approved by the CBN. They include those involved in switching and processing,  mobile money operators, Payment Solution Services (PSS), Payment Terminal Service Provider(PTSP), Payment Solution Service Provider (PSSP) and Super Agent licenses respectively.

    The top category will escrow refundable N2 billion into a CBN account. The payment must be made in full single lump sum. Escrowed funds are to be invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly. For PSS, the CBN said an escrow of refundable N250 million must be deposited with the CBN, while for entities applying for the three licences will e: PSSP – N100 million, PTSP – N100 million, and Super Agent – N50 million.

    The same conditions as the first category apply but with varying amounts. “All written applications should be addressed to the Director, Payments System Management Department, Central Bank of Nigeria, Abuja, accompanied by evidence of payments of application fee and other documentary requirements,” the CBN said.

     For all of the aforementioned licences, the apex bank said all applicants would be required to pay an application and licensing fee of N100,000 (non-refundable) to the CBN, while a licensing fee of N1 million is to be paid before the issuance of the final licence, if successful. Analysts insist that Nigerian fintechs do not pose any challenge to top-tier banks across the country. According to industry experts, rather than compete, Nigerian fitechs should collaborate with Nigerian top-tier banks.

    According to them, Nigerian banks have strong balance sheets and a dominant financial position in the market and what is needed between both is collaboration rather than competition. They explained that Fintechs should leverage the backend infrastructure of traditional bank’s IT when they roll out new products and services considering the regulatory cost which might be expensive or difficult to meet but are already embedded in banking infrastructure.

    Global Fintech industry

    Financial technology has advanced quickly since the advent of the internet and mobile devices. Fintech currently refers to a broad range of technological advancements in personal and business finance, as opposed to its original meaning, which was the employment of computer technology in the back office of banks or commercial firms.

    Fintech has been known in various forms since the very beginning of the 20th century, at that time we could witness the first innovative solutions implemented with the help of Fintech such as the first Automated Teller Machine, online banking, or platforms such as PayPal. Fintech provides many payment solutions. Plenty of firms from the Fintech sector are offering various financial services such as credit card payments, debit card payments, digital wallets, bill payments, merchant cash advances and other similar banking services.

     All from above, payment solutions have a statistically significant positive effect on customer experience, what increases comfort in use of financial technology. Nowadays, innovative payment methods, such as biometric characters, are implemented to slowly replace cards, telephones, smartwatches, mobile devices, ECT.

    IBAS World is currently working on developing a method enabling digital payments even without biometric signs. Both the Internet of Things (IoT) and Blockchain have had an impact on the world of financial solutions.

    Leading countries in the Fintech space

      Since 2012, the UK’s Fintech sector has received over $2 billion in venture financing and over £100 billion through mergers and acquisitions from financial services firms. The UK has one of the most technologically advanced financial services industries in the world as a result of these investments. The UK government also makes significant investments in the Fintech industry through funding programs and regulatory changes that make it easier for fintech businesses to operate. It can be said that basically, investment drives economic growth.

     Currently, there are over 2,500 companies in London offering products or services created using financial technology. Thanks to innovations, UK obtain higher economic growth. Examples of FinTech companies on the UK market include Hydr, FreshPay, Triple Tied Out or CostTracker. The US has a robust financial technology ecosystem. FinTech services have been simplified by companies like Stripe, Coinbase and Robinhood

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     It plays a key role in the US economy, as evidenced by more than 50 per cent shares in the global Fintech market. Fintech has been seamlessly integrated into the financial activities of the United States.

     As a result, all financial services have adopted and use Fintech in the form of, for example, loans, savings, personal finance and insurance. The United States is recognised as an attractive hub for Fintech financing and investment.

  • Overcoming challenges dragging down the naira

    Overcoming challenges dragging down the naira

    In recent years, Nigeria has grappled with a myriad of challenges that have left a significant imprint on its economy. From the scarcity of the naira to a substantial depreciation of the local currency, surges in inflation figures to the imprudent printing of nearly N24 trillion through Ways and Means, the macroeconomic landscape has been under threat. Amidst these setbacks, however, there were notable bright spots. Domestic oil production, as per the OPEC survey, rose to 1.41 million barrels daily. The equities markets exhibited a stellar performance last year, recording a remarkable 45.9% surge, the highest since 2020. Furthermore, Moody’s upgraded its outlook for Nigeria from stable to positive. Assistant Business Editor COLLINS NWEZE writes that this collection of milestones underscores the resilience of the domestic economy against formidable odds and reflects the commitment of the Central Bank of Nigeria (CBN) to effect positive change, exemplified in the ongoing settlement of FX Forwards.

    This is not the best of time for the naira, inflation and other microeconomic indicators. The naira has remained under pressure, falling to an all-time low of N1,350/$ at the parallel market. Inflation also rose to 27-year high at 28.92 per cent in December. Unfortunately, these statistics were foretold by people that gauged the state of the economy earlier on.

     Few weeks into the life of the present administration, former Central Bank of Nigeria (CBN) Governor, Prof. Charles Soludo, gave a prophetic insight into the state of the economy inherited by President Bola Tinubu. Soludo, now Governor of Anambra State, talked about the breach of the CBN Act 2007, in assessing the Ways and Means. He narrated how the previous CBN leadership freely printed the naira that was not backed up by any productive activities. At the end, he liked the economy to a “dead horse standing.” “From the microeconomic point of view, the present government inherited dead economy,” Soludo declared.

     Unfortunately, and as predicted, nearly eight months down the line, the Soludo’s “prophecy” has played out in key segments of the economy. At the Investors and Exporters window – the official market – the local currency traded at N930 to a dollar, creating N420 per dollar premium between the official and parallel markets. This depreciation marks the lowest the naira has come to since October 26, 2023, when it reached N1,300 against the dollar on the parallel market. Aside naira crash, inflation has also continued to rise in recent months.

     Consumer inflation rose for the 12th straight month in December to 28.92 per cent year on year from November’s 28.20 per cent, the National Bureau of Statistics (NBS) said. It was the highest inflation rate in more than 27 years as surging food prices exacerbated a cost-of-living crisis. Nigeria’s inflation figure has not climbed this high since mid-1996. The food inflation rate, which accounts for the bulk of the inflation basket, rose to 33.93 per cent in December from 32.84 per cent a month earlier. The statistics office said prices rose for a broad range of food items, including bread and cereals, oil, fish, meat, fruit and eggs.

     Analysts say higher fuel prices and a weaker naira have also stoked price pressures. Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said inflationary pressures are unlikely to abate soon. He said the impact of naira depreciation and removal of petrol subsidy will continue to push inflation figures up in the medium to long term.

     Soludo had predicted what is happening. “I am the Governor of the Central Bank and I met the exchange rate at about N138/$. The rate moved down from N138/$ to N120 to N118/$ and actually came down to N112/$ before the global financial crises of 2008 and 2009. And I met $8 billion as external reserves, and built it to all time, almost $63 billion that we had. In spite of payment of $12 billion in external debt, and going through the worst financial crisis in history, I still left behind $45 billion. So, I have seen it up, and seen it down.”

     Continuing, he said: “We must realise where we are coming from; we sat here in this country and saw monetary authorities, literary printing money, illegally printing money. I superintended the drafting of the 2007 CBN Act, which had an explicit clause that prevents the Central Bank from recklessly granting Ways and Means to the Federal Government. We explicitly put it into law, that you cannot grant more than five per cent of the previous year’s actual revenue as Ways and Means.

     “That so granted, must be retired at the end of the year, in which it is granted, and when the Federal Government fails to retire the fund, the Federal Government is forbidden advancing Ways and Means.  By that law, I do not think there was a time that the Ways and Means would have been more than N250 billion at a point in time. As a Governor, I insisted that we must remain within the ambit of the law. But we sat and saw the Central Bank, brazenly, and illegally violating that Act year in year out, and kept printing money illegally,” he stated.

    New Naira Notes

     Former CBN Deputy Governor Operations, Tunde Lemo, agreed with Soludo. Lemo said inflation was being fuelled by rapidly growing CBN’s Ways and Means worth N24 trillion. He spoke at the seventh Financial Markets Dealers Association (FMDA) Annual Conference held in Lagos. Lemo, who spoke on the “Role Central Bank in Macroeconomic Stability & Financial System Supervision,” disclosed that Ways and Means grew from N239 billion in 2013 to N24 trillion in 2022.

     He further linked high inflation to structural factors such as infrastructural deficit, high logistic costs and exchange rate depreciation. Lemo said the ongoing foreign exchange reforms, which paved the way for a fully liberalised FX market, is laudable, but more efforts should be geared toward improving FX availability to reduce the rate of currency depreciation and inflation pass-through. “Good as forex liberalisation may seem, care should be taken to prevent foreign exchange crisis because of forex liquidity scarcity. CBN should also watch the activities of forex speculators. Nigerian naira is not internationally convertible. CBN should therefore use “Managed-float” for its forex management,” Lemo advised .

     Continuing, he advised the apex bank to drop its quasi-fiscal activities and focus on price stability. He said the overarching purpose of the central bank’s financial system supervision is to establish and maintain a stable and well-regulated financial system. “The central bank notably uses prudential and macro-prudential regulations to ensure financial stability as these regulations are instrumental in maintaining the stability and resilience of the financial system,” he stated.

     According to him, the regulations include capital adequacy requirements, liquidity requirements, risk management practices, stress testing, and credit and market risk management. Lemo advised that the CBN should continuously care for the domestic financial system stability and interact with the macroeconomic stability conditions of the country. For instance, the Federal Government is envisaging achieving a US$1 trillion economy by 2030; hence, the financial system needs to be prepared and buoyant enough to meet the liquidity needs of this envisioned economy.

     “The CBN Governor addressed this at the Chartered Institute of Bankers of Nigeria (CIBN) dinner on November 24 that banks will be required to raise additional capital to finance the march to $1 trillion economy. It is, therefore, imperative that the CBN collaborates with the fiscal authorities to achieve its price and financial stability objectives,” Lemo said.

    The collaboration, he advised, should be such that one jurisdiction recognises the limits of the other to allow more room for operational independence. Continuing, Lemo said: “Nigeria’s external reserves have not been sufficient to curb the weakening of the naira. There was a rapid depreciation of the official exchange rate from N157.31/US$1 in 2013 to N253.49/US$1 in 2016. This led the CBN to introduce certain measures that restrict the buyers of about 40 items from access to foreign exchange at the official market.

     This attempt led to the short-term devaluation of the exchange rate to N305.79/US$1 in 2017. The COVID challenge and significant shortfall in government revenue encouraged CBN to embark on massive intervention funding.

     “The intense defence of the naira by the CBN using external reserves helped to stabilize the exchange rate between 2017 and 2019. Moreover, the post-COVID-19 period was characterized by the insensitivity of external reserves to rising oil prices and further currency devaluation. This quasi-fiscal activity fuelled inflation and has been consistently criticised by International Monetary Fund and other development partners.”

    Steps to rescue economy

    Against all odds, President Tinubu courageously started series of bold reforms many considered long overdue. The reforms were unveiled and their implementation took off immediately. Ranging from subsidy removal to some “housecleaning” at critical institutions to exchange rate unification, tax reforms and transparency in government.  Exchange rate reforms directed by President Tinubu saw the Central Bank of Nigeria (CBN) unifying all multiple rates into the Investors and Exporters (I&E) forex window.

     The policy saw the apex bank collapse exchange rates – the International Air Transport Association (IATA) rate, parallel market rate, Interbank Exchange Rate and Bureaux De Change (BDC) rate – into the I&E window. By that singular move, dollar applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance, and Small and Medium Enterprises (SMEs) are processed through the I & E window – where rates are determined by market forces. The operational changes to the foreign exchange market also include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.

     Chief Executive Officer, Ministry of Finance Incorporated, Dr. Armstrong Takang, said the Federal Government took the right step by instituting forex reforms and freeing forex previously used to defend the naira. Speaking at the unveiling of the Nigerian Banking Sector Report titled: “Getting Nigeria to Work Again!” in Lagos, he said government had in the past, lost so much forex trying to defend the naira. Defending ongoing reforms in the forex market, Takang, who represented Minster of Finance & Coordinating Minster of the Economy,

    Wale Edun, said the implementation of the ‘willing buyer, willing seller’ model has preserved forex for the economy.

     He said that in its effort to unlock forex liquidity, the Federal Government is encouraging people with genuine forex to bring them back home for investment in the domestic economy. On his part, Managing Director, Afrinvest West Africa Limited, Ike Chioke, advised monetary and fiscal authorities to rethink their anti-inflation strategies to holistically addressing the ugly narrative of surging inflation rate. He explained that both the monetary and fiscal authorities have mainly been fixated on the control of money supply and selective tax reliefs.

     “In our view, an effective strategy for taming the high inflation rate would be one that addresses structural bottlenecks (notably, insecurity and infrastructural gaps), improves ease of doing business, and incentivizes large-scale local production of agriculture and manufactured goods alongside effective liquidity management and proper anchoring of market yields to the Monetary Policy Rate (MPR).

     “In all, we stress that failure to stem the surging inflation tide in the near term would result in a contagion financial sector crisis and by extension, derail other segments of the economy from the growth path, given banks’ pivotal role as an economic bridge between the supply and demand segments of the economy,” he said.

    Traders on the Nigerian Exchange (NGX) trading floor, Lagos
    Traders on the Nigerian Exchange (NGX) trading floor, Lagos

     According to the report, Nigeria’s fiscal deterioration has continued unabated. After hitting the N70 trillion mark in 2022 due mainly to the N23.7 trillion addition from securitised Ways & Means liabilities, the total public debt profile nudged higher to N87.4 trillion in the first half of last year. “This, in addition to underwhelming revenue performance in first half of 2023 (actual revenue, N4.1 trillion, underperforms pro-rata target by 26.5 per cent, and 99 per cent of it, N4 trillion was used to servicing debt) has further put Nigeria on the cusp of insolvency.

     “Against this backdrop, the new administration of President Bola Tinubu has introduced some policy measures to assuage the fiscal pressure, notable amongst which are the “partial” removal of subsidy payment on Premium Motor Spirit-PMS,  the increase in education tax by 50 basis points to three per cent, and the introduction of a 7.5 per cent Value Added Tax on diesel,” the report said.

     Despite these measures, Afrinvest said it does not see a quick fix to the fiscal pressure in the near-term, given increasing internal and external pressure points on the economy and the time lag required for policy reforms to manifest gains. Besides, the Federal Government has equally approached the World Bank for $1.5 billion budgetary support loan to boost dollar liquidity and support naira’s recovery.

     Minister of Finance and Co-ordinating minister for the Economy, Wale Edun, said although the loan request is currently at the discussion level, government is confident it will be approved. The fund is also expected to help the country ease a severe dollar shortage that has contributed to the naira’s steep decline. “We’re hoping to get $1 billion or $1.5 billion from the World Bank” for budgetary support, Edun said on Wednesday in a Bloomberg Television interview. “It is a matter of discussion at the moment, but we think we will get the support because we are continuing with our reforms.”

     But a lack of dollars in the domestic market means there’s a backlog of demand from companies who want to convert naira into the US currency to repatriate profits and pay bills. That’s pushed activity into the unofficial market, where the naira changes hands at much weaker levels against the dollar. Edun said the central bank puts the current backlog at about $5 billion, following efforts to pay it down, and he voiced confidence that it could be cleared easily if steps to lift oil revenue and mobilize dollars already in the economy succeed.

     “There is actually liquidity within the banking system and there should be a way of getting the banks to actually help with that backlog, either on a spot or a forward-rate basis,” he said. “We believe that if we coral the dollars that are available, we can pay down that backlog almost in one fell swoop.”

    The government expects oil production to ramp up to 1.78 million barrels per day, from about 1.49 million barrels last month, which should help fire up the economy and bolster its coffers. Domestic refining of crude is meanwhile expected to resume this year at the state-owned refinery in Port Harcourt, and from the Dangote refinery in Lagos, which will reduce gasoline imports and help ease the currency squeeze.

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     “The priority is to stabilise the naira, that means getting in the additional liquidity – number one from oil revenue,” Edun said. “We’re also looking to make sure we tap Nigerian savings, in particular domestic dollar savings both inside and outside the formal market. There’s a lot of cash in the Nigerian economy.”

    CBN steps in

     The CBN never stood idly watching the naira slide into oblivion. The regulator took certain stringent measures, including imposing some currency control measures to save the naira. CBN Governor, Olayemi Cardoso, admitted that a thorough assessment of the economy revealed significant challenges, including high and rising inflation, inadequate foreign exchange supply, depreciation of the exchange rate, limited external reserves, weakened output, and high unemployment.

     These challenges, he said, have led to increased interest rates, discouraging investments in productive activities. Within the banking system, high inflation has affected asset quality and solvency ratios. Additionally, the persistent depreciation of the naira poses a significant risk for domestic banks with foreign exchange exposures. “I want to assure you that while it is indeed a formidable challenge, it is not insurmountable. With the right policy measures, we can overcome these obstacles and pave the way for progress and prosperity. I am confident and optimistic that by taking appropriate corrective actions and strategic steps, we can restore macroeconomic stability and address fundamental flaws,” he said.

     Cardoso explained that the removal of petrol subsidy and the adoption of a floating exchange rate, among other government policies, are anticipated to have positive effects on the economy in the medium-term. These measures, he said, are expected to enhance investor confidence, attract capital inflows, stimulate domestic investment, and ultimately improve the level of external reserves. Additionally, they are expected to contribute to the stabilization of the domestic currency.

     Cardoso disclosed that the monetary authority is taking measured and deliberate steps to send the right signals to the market and achieve our 26 mandate. “To ensure stability, curb speculation, and restore confidence in the foreign exchange market, we have initiated the payment of unsettled forward foreign exchange obligations, and these payments will continue until all obligations are cleared. This intervention has already had a positive impact on liquidity and has led to a significant appreciation of the exchange rate at certain points.”

     In fulfilment of its commitment to eliminate the backlog of pending matured foreign exchange in Deposit Money Banks (DMBs), the Central Bank of Nigeria (CBN) has disbursed approximately US $61.64 million to foreign airlines through various banks. This initiative is part of the CBN’s efforts to decrease its remaining liability to the airlines. This information was confirmed by the Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, in Abuja.

     Mrs. Sidi Ali further disclosed that, in the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost $2 billion. This underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market. According to her, these payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate. It is anticipated that this initiative by the CBN should provide a considerable boost to the naira against other major world currencies and further increase investor confidence in the Nigeria economy.

     More so, part of the ongoing move to stabilise the naira was the CBN lifting of a ban on transacting in cryptocurrencies. It insisted that global trends had shown a need to regulate such activities. The regulator had in February 2021 barred banks and financial institutions from dealing in or facilitating transactions in crypto assets, citing money laundering and terrorism financing risks. Subsequently, the Nigeria’s Securities and Exchange Commission (SEC) in May last year published regulations for digital assets that signalled the country was trying to find a middle ground between an outright ban on crypto assets and their unregulated use.

    CBN Director, Financial Policy Regulation, Haruna Mustapha, announced regulation of the activities of virtual asset service providers (VASPs), which include cryptocurrencies and crypto assets. The latest rules spell out how banks and financial institutions (FI) should open accounts, provide designated settlement accounts and settlement services and act as channels for forex inflows and trade for firms transacting in crypto assets.

     Mustapha, however, warned that banks and other financial institutions were still prohibited from holding, trading or transacting in cryptocurrencies on their own account. The next was CBN’s lifting of forex restrictions on 43 items from accessing dollars from official window and promise to intervene in the forex market from “time to time.” Items affected include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics among others.

     It said: “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.”

    Views from stakeholders

     Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, said the administration has undertaken some very important corrective reforms which should be applauded.  These were the commitment to exchange rate convergence and the removal of fuel subsidy.  These were inevitable reforms necessary to fix damaging distortions in the economy. He said: “We have seen intense inflationary pressures,  spiking operating costs for businesses and severe negative impact on citizens welfare.  The severity of the impact was beyond expectations. This therefore underscored the imperative of an expeditious response from the administration to address the social outcomes of the reforms.”

     Yusuf said the commitment to fiscal and tax reforms are also laudable.  Former Registrar, Chartered Institute of Bankers of  Nigeria (CIBN), Dr. Uju Ogubunka, said the government should listen more to the people. He said the President’s courageous decisions on subsidy removal, exchange rate reforms are commendable, but there is need to consider their impact on the populace. He said the government should take a review of the policy impact, and see if they meet expectations, otherwise they should be re-engineered.  He called for greater reassurance on forex and other policy reforms for Nigeria to attract foreign investor participation.

     President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said opening up the diaspora remittances collection points to more players will deepen dollar inflows to the economy. “I advise the president to ensure that Nigeria’s forex sources are diversified through the grant of an autonomy to the BDCs to be readmitted into the frame and legislation of the apex bank foreign exchange policies as agents of Diaspora remittances and cash imports through the banks,” he said.

     Former Central Bank of Nigeria (CBN) Governor, Muhammadu Sanusi II said, said rate at which the naira exchanges against dollar is not as important as the stability of the naira at official and parallel markets. He advised the apex bank to pay more attention to achieving exchange rate stability for the growth and development of the businesses and economy. Sanusi, who was the 14th Emir of Kano, spoke on the theme: Impact of Forex Policies in the Nigerian Economy” in a conference organized by Financial Markets Dealers Association in Lagos.

     He said the primary task of CBN is to provide exchange rate stability, not growth but should create environment that supports growth. He said: “There is nothing we are facing today, that was not foreseen. Exchange rate should be predictable. The rate at which the naira exchanges to dollar is irrelevant, what is key is the stability of the exchange rate.”

     Sanusi said although the CBN does not generate dollar, it should create an environment that attracts dollar investment into the economy. Conclusively, Lemo advised that good as forex liberalisation may seem, care should be taken to prevent foreign exchange crisis because of forex liquidity scarcity. CBN should also watch the activities of forex speculators.

     “Nigerian naira is not internationally convertible. CBN should therefore use “Managed-float” for its forex management,” he advised. The managed-float system allows the CBN to occasionally intervene in the forex market at a period of intense volatility, even though the market operations are left to market forces. That option will save the naira from the current rapid depreciation witnessed in both official and parallel markets.

  • ‘Nigeria pays lowest salary to lecturers in West Africa’

    ‘Nigeria pays lowest salary to lecturers in West Africa’

    Within the realm of academia, Prof. Clement Olusegun Olaniran Kolawole stands out as a luminary, actively shaping the educational landscape with his profound expertise in Language Education, Reading, Curriculum and Instruction. Currently serving as the Acting Vice-Chancellor of Trinity University, Yaba, Lagos, Prof. Kolawole’s journey is a testament to a life devoted to scholarship and leadership. A distinguished fellow of the Centre for Peace and Conflicts Studies (CEPACS), he is an illustrious member of various esteemed organisations, including the Curriculum Organisation of Nigeria (CON), Reading Association of Nigeria (RAN), and the International Reading Association (IRA). Beyond his impressive academic pursuits, Prof. Kolawole has demonstrated exemplary leadership in academic circles locally and internationally. In this interview, the seasoned scholar x-rays the state of university education in Nigeria and other issues. He spoke with Associate Editor ADEKUNLE YUSUF

    Assessing the state of university education in Nigeria

    University education in Nigeria is not in the best shape at the moment, going by the fact that certain things that are basic to a smooth system are not there. For instance, our tertiary institutions are not being properly funded by the owners:  the state governments, the government at the federal level, private individuals and agencies, because these stakeholders that I have just mentioned do not realise the enormity of the roles that the university plays in the social economic development of the nation. The university is the hub where research activities that engender development (scientific, technology, infrastructure and human capacity development etc.) take place; everything takes place through theory and practice in the university system. What we do in the university system is to actualise some of these findings to position us.

     So, because those in government are not aware of this, they are playing lip service to university funding. So, you get to most universities, you wouldn’t find the wherewithal, the infrastructure, office space, laboratories, top- notch and functioning libraries (both virtual and physical) and even the whole environment sometimes calls to question whether we are serious about university education. The idea of asking private individuals to come on board is an excuse on the part of the government to address its failure because if the government were to be doing what was necessary, private individuals have no business in university education because it is a social responsibility that the government owes the people. But because funding is not adequate, the university system in Nigeria pays the lowest salary to academic staff even in West Africa. So it is not a place where the best people can be attracted; the best researchers even today – our first-class students – do not want to stay because once they know the salary that is attached to it, they prefer to go into ICT, oil or the banking sector where they can make more money.

     Because there is no money, the infrastructure facilities that we need are not in place; we cannot attract global best practices; we cannot replicate them; we cannot bring quality scholars; even those that are home-grown that are doing their best are leaving in droves because we use our salaries to run the system. For example, I can tell you that in the last 10 years, the government has owed university lecturers what is called earned academic allowances. These are the allowances that they ought to have paid for the extra work that we are doing because we don’t have adequate human power; it is not that the adequate human power to be employed is not existing but the government has not recruited them into the system. So we do much more than we are supposed to do; so the government came up with the offer to pay for the extra work that scholars are doing. For me, as I’m speaking with you, the government is owing me over 10 years’ accumulative annual academic allowance. That is in the millions as an individual. So, most of our colleagues are leaving into other areas in other countries where their values will be appreciated and they will get things that are commensurate with their work. All of these problems I have mentioned, like I said in the beginning, the government has not demonstrated that it understands the value of the university education in the developmental trajectory of the country, and that is quite unfortunate.

    How to handle financial autonomy for the universities

    It is very easy. Easy because the government must come to the reality of the fact that it can’t eat its cake and have it. The government must face the reality that it cannot have it both ways. If there’s a challenge in adequately funding universities, and the government acknowledges this by granting full financial autonomy, it implies that universities can seek funding, operate independently, and adhere to guidelines. Granting full financial autonomy means universities have the opportunity to manage their affairs within regulations, including the flexibility to address challenges, and the government cannot simultaneously restrict their ability to charge tuition.

     So, once you grant full financial autonomy, you have given them the opportunity to fend for themselves as much as possible within regulations and spend the money to take care of their challenges. Recently, there was an argument as to universities paying 40% of the IGR to the government, which was nonsensical. Thank God the government woke up and realised there was no point. You have not funded universities adequately, you also want to take 40% from the little they are able to put together from municipal services. Where is the money coming from? It is like robbing Peter to pay Paul.

     Universities consume a lot in research and so they need money. Cleaning the campuses, there is a lot of money that goes into it; faculties, residence, buying the reagents in the laboratories, stationary and everything that it requires; universities should have money to meet those demands and once those demands are met, our universities will begin to be stable and run smoothly. For now, we are only on the basics.

    On incessant strikes by ASUU

    Until recently, I was an active member of ASUU. The agitations that ASUU engages in most times have put some sanity on the part of government; otherwise government wasn’t willing to do anything. But unfortunately, ASUU is misunderstood because most times we ourselves also under-report ourselves. As we also say in ASUU congress, for example, academic staff cannot go on total and indefinite strike going by the nature of what we are employed to do – research, teaching and public engagement. You can’t go on strike on public engagement and research, but you can suspend teaching. We have told our union to tell government that we are suspending teaching; that’s one of the most important aspects of our work. Once you suspend teaching, all students will go away but research goes on; community engagement goes on. By the time we tell government that we are on total and indefinite strike, that’s why government can do shakara that they do to us and stop our salary.

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    So, we also misinform the public and misrepresent ourselves. I have always said it in the congress of ASUU, “Tell government that we are withdrawing from teaching, a component aspect of our services.’’ If you do that, you will pay me for research and community engagement because each time we say we are going on strike we normally declare, we do research to improve our quality, to improve our visibility and improve the scope of knowledge. We do community engagement; we serve our communities; we serve committees of the university; we serve our students, and we write letters of reference for our students for job prospects and post-graduate studies outside this country and those things cost money and time.

     What government should have done is to cultivate ASUU. Let me give you an example of the TETFUND. It is the initiative of ASUU in 1996; ASUU already has packaged something about two years ago on how government can tap from technology service providers to get good money to fund education but for some personal reasons or ego, instead of sitting down with ASUU and ask how it is possible without creating problem. ASUU would offer suggestions and government can tap from it, but they missed the opportunity. So if the government sees ASUU as a partner in progress, some of the problems we have, we will not have it.

    How TSA ruins the university system

    TSA is not good for the university system. Universities are set up to do research and when you do research, you are free to look for funding anywhere globally. Most times we appeal to international donor agencies like MacArthur and others. When they give you money, you go there to argue out what you want to do, the time, the implication and the total package. So once you get the grant, the time begins to run; there are equipment you need to buy; there are some you need to import; there are some you need to create and there are people you need to employ, pay and things you need to do periodically. Usually, before TSA, when the money comes, it comes to the account of the university; the money will not be given to the individual for accountability sake because the name of the university is involved. So the university monitors how the money is spent. Once the principal investigator wants to use money, he or she will apply and it is processed by the bursary and the money is realised so that the work can be done. But TSA came and put everything together. So, once such money comes, it goes straight to the CBN; it became herculean to access. Before it became a public knowledge, dollar was no longer available in the CBN because the dollar was used for something else. Meanwhile, the person to whom you signed an agreement to carry out a research is waiting for progress report; he or she is waiting for the progress of the work to be done, while the money to be used to carry out the research can’t be accessed. The equipment you want to buy because prices vary; it is not stable. You may have quoted 5 dollar before and before you know it, it may be 10 dollar and you can’t go back to the funder. So, TSA made that basically impossible. There were several agencies that threatened to blacklist Nigerian universities that took their money and didn’t deliver. In blacklisting the university, they are also blacklisting the scholar that is involved but when they discovered that it was not a lie, that the government policy has made that impossible, most of these donors backed out.  And they went to other countries where researches can be done timeously and values can be added. Meanwhile, ASUU told government not to do it, that it is a minus to; it will destroy scholarship, destroy the stability of the university system but the government didn’t listen. Government can’t run university the way it runs ministries; that’s a mistake the government is making.

    Benefit Nigeria can drive from technology

    What the university exists to do is to advance knowledge, scholarship and make society better. There is nothing that is happening globally that didn’t start from the university system. If you go to Silicon Valley, Massachusetts, Oxford, Harvard and all those Ivy League universities, it is research. We have been told that some of the things going on in technology today started from campuses of universities and so back in Nigeria, our people have the knowledge base, the technical knowhow and what is required is to put some of these things together, but they are not given adequate support. There is nothing wrong in government saying, this is what we want to do, can you think it out for us and tell us how to go about it. That is what universities should be doing, but government doesn’t engage universities because some people in the ministries are in one corner trying to cut corner, with profit from the policy at the expense of the larger society. If the government puts its money where its mouth is, we will move faster than we are moving now. There is no aspect of human existence that the university scholars can’t research into but the government doesn’t give us the opportunity and the conducive atmosphere to run the way we are supposed to run. Many of our colleagues leave government universities to private universities and private universities are flourishing because proprietors release money timeously. You see them regularly monitoring what goes on and they want to satisfy their clients. Why is it that the federal government is not doing that? There is no country that can develop outside its universities. If Nigeria wants to fully develop, it should go back to its tertiary institutions where research drives development.

  • Positioning Nigeria as drug ingredients production hub

    Positioning Nigeria as drug ingredients production hub

    In the expansive landscape of Africa’s pharmaceutical sector, with an estimated market value of $30 billion, Nigeria currently holds a meager 1.5 per cent share, a figure poised to dwindle further due to the cessation of operations by some pharmaceutical companies in the country. However, a promising shift is on the horizon with a $23 million private-sector investment, supported by the European Investment Bank (EIB), in a state-of-the-art facility established by Emzor Pharmaceuticals, a homegrown drug manufacturing firm. This strategic investment has the potential to position Nigeria as a pivotal hub in sub-Saharan Africa for the production of Active Pharmaceutical Ingredients (API). Such a transformation holds the promise of reversing the current trend, offering not only affordable medications and high-quality drugs but also contributing to increased employment opportunities and various other benefits for the Nigerian populace. Assistant Editor MUYIWA LUCAS reports

    During the 2022 Nigeria Economic Summit Group (NESG), the Health Policy Commission (HPC) painted a stark picture in its white paper titled “Enhancing Local Production of Medicines and Vaccines in Nigeria,” highlighting the potential challenges the country may face in this crucial area.

     “Given its large market size, Nigeria has the potential to become a major player in the manufacturing and supply chain for pharmaceutical products in Africa. However, Nigeria still relies heavily on foreign supply of medicines and vaccines, with imports accounting for 70 per cent of local drug consumption. Nigeria also imports most of the Active Pharmaceutical Ingredients (API) needed for local production,” an extract from the white paper read.

     Statistics from the 2023 edition of the Africa Pharmaceutical Market Outlook underscores the concerns raised by the HPC regarding the state of pharmaceuticals in Nigeria. The figures reveal that out of Africa’s estimated $30 billion pharmaceutical market, Nigeria accounts for only 1.5 per cent, placing it behind Morocco (1.6 per cent), Algeria (1.9 per cent), Egypt (2.6 per cent), and South Africa (3.9 per cent). The 2023 Africa Pharmaceutical Market Outlook delves deeper into the condition of the Nigerian pharmaceutical industry, emphasising a stark contrast. While South Africa relies on local sourcing for approximately 80 per cent of medicines, leveraging advanced technical infrastructure and ample skilled manpower for API synthesis, Nigeria, in contrast, sources only 25 per cent of its drugs locally. This striking discrepancy persists despite Nigeria hosting around 150 pharmaceutical manufacturers, the highest number in sub-Saharan Africa.

     The developments in the first half of 2023 seem to be impacting the pharmaceutical sector, adding strain to an economy attempting to regain equilibrium after years of stagnation. The surge in foreign exchange rates, coupled with the persistent power challenges — forcing companies to allocate over 40 per cent of their overhead costs to purchase diesel for industrial operations — has intensified the business landscape, turning it into a survival test for enterprises.

     In a notable example, last August, GlaxoSmithKline Consumer Nigeria Plc, the country’s second-largest drug producer, made a significant announcement to halt its operations. This decision stemmed from the termination of exclusive marketing and distribution agreements by the company’s UK parent. According to a statement released on the Nigeria Exchange, GSK Plc, which holds a majority stake in the Nigerian unit, conveyed its intention to appoint third-party distributors for selling prescription medicines and vaccines within the country. Additionally, GSK’s consumer-health arm, Haleon Plc, expressed its intent to terminate the distribution agreement with GSK Nigeria in the coming months and appoint a third-party distributor. GSK outlined plans for an accelerated cash distribution and return of capital to minority shareholders.

     While the company did not explicitly state the rationale behind its decision, GSK Nigeria had earlier acknowledged challenges in sustaining the supply of its pharmaceutical and vaccine products in the country. This struggle was attributed to a shortage of dollars necessary for importing crucial ingredients.

     On November 8, 2023, another significant development unfolded as Sanofi, a French pharmaceutical multinational, discreetly disclosed its withdrawal from operations in Nigeria. The company revealed its decision to appoint a third-party distributor to manage its commercial portfolio of medicines starting February 2024. Annocing the decision, Sanofi’s General Manager (general medicines) and Country Lead, said: “This strategic move is driven by our commitment to continually improve access to our medicines and to better serve our patients and the Nigerian health system.” However, the company’s numbers indicate that it’s been struggling to keep its margins in Nigeria.

    Upping the ante?

    For a long time, leaders in the pharmaceutical sector have persistently emphasised the crucial need to prioritise drug security in the country, particularly at a time when healthcare is becoming increasingly inaccessible to many Nigerians. The exorbitant cost of active pharmaceutical ingredients (APIs) poses a significant challenge for the industry, exacerbated by the escalating exchange rates against the naira, ultimately influencing the pricing of finished pharmaceutical products. An active pharmaceutical ingredient (API) serves as the fundamental component of both over-the-counter (OTC) and prescription medications, playing a pivotal role in producing their intended health effects. In instances where a prescription drug has a generic version, its name corresponds to its API.

     Currently, a staggering 90 per cent of the required Active Pharmaceutical Ingredients (APIs) for local industries are imported, placing the industry in a precarious situation due to the challenging task of securing adequate foreign exchange for these essential components. Data from the National Agency for Food and Drug Administration and Control (NAFDAC) reveals a notable surge in the value of imported finished drugs, such as artemether/lumefantrine, escalating from N6.4 billion in 2018 to N12.1 billion in 2021. Similarly, imports of finished drugs, including sulfadoxine and pyrimethamine, witnessed a significant growth from N453 million in 2018 to N1.3 billion in 2021.

     However, a transformative shift is on the horizon with the imminent completion of a $23 million two-phased API production plant by Emzor Pharmaceuticals, located in Sagamu, Ogun state. Upon completion, this facility is poised to generate 400 metric tonnes of APIs annually. The project is financed through a €13.85 million loan from the European Investment Bank (EIB). Emeka Okoli, Chairman of Emzor Pharmaceutical Industries, clarified that the €13.85 million loan from the European Investment Bank covers 60 per cent of the ambitious project. This project will initially concentrate on four anti-malaria APIs: artemether, lumefantrine, sulfadoxine, and pyrimethamine. Future phases will expand into three more areas, ultimately creating over 500 jobs.

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     This substantial volume of APIs, equivalent to approximately 200 large shipping containers, has the capacity to produce millions of medication doses. Notably, this initiative is a significant shift for a country that heavily relies on importing over 90 per cent of its APIs. Industry stakeholders express relief as Emzor’s venture into APIs signals a promising future for enhanced local drug production and broader raw material markets within the industry. Furthermore, local production of these APIs eliminates one commercial transaction, ensuring that profits remain within the value chain. This positions Nigerian drug manufacturers with a competitive edge against finished imports, primarily sourced from India and China.

    At full operating capacity, Okoli sees local production growing significantly cheaper than imports. “Not only are you saving on your input cost because you are doing it yourself, you are not paying a foreign person profit on that aspect of your production. The Nigerian market is more than we can produce. We enter the market completely with imports from India and China as competitors,” he said. 

    Okoli emphasised another noteworthy advantage of local API production—the ability to cater to the needs of smaller manufacturers who may not afford large consignments, which are often the minimum requirement for foreign orders. Locally, these smaller entities can secure as little as two tonnes of APIs, fostering inclusivity in the industry. Arthur Delor, the Investment Officer from the European Investment Bank (EIB), explained that the bank provided Emzor with the means to proactively combat the high prevalence of malaria in Nigeria, a country with the largest burden and records of deaths globally due to this disease. He expresses optimism that fortifying a consistent supply of APIs within the country will elevate manufacturing standards, leading to increased job opportunities and employment prospects for Nigerians.

     “We are very excited about this operation and are confident that the development of this facility will bring many benefits to Nigerians and the broader African pharmaceutical sector, as it will contribute to reducing import dependency and ensuring a local and more resilient supply of high-quality competitively priced anti- malaria API,” said Delor.

     Frankline Keter, the Chief Executive Officer of Active Pharmaceutical Ingredients For Africa (APIFA), a non-profit organisation based in Kenya, focused on assisting local producers in investing and expanding their operations, emphasised that the collaboration with Emzor aligns with the goal of enhancing access to quality and affordable medicines for people across the continent. “What we are trying to do with Emzor together with the support of EIB is to build another supply chain centre globally. The issue is not just about the self-sustainability of Nigeria but about Africa becoming a centre of the supply chain so that we can take care of our needs in case of any challenges and things can move from here to Asia and Europe as well,” Keter said.

     Keter recalled that at the onset of the COVID-19 pandemic, the disruption in the supply chain of essential raw materials led Nigeria, along with many other African nations, to rely on aid for access to life-saving vaccines. This situation underscores the importance of backward integration, particularly in critical stages of production like Active Pharmaceutical Ingredients (API), to achieve self-sufficiency. Local industry operators, speaking on the matter, lauded Emzor for its bold and courageous investment, especially at this crucial juncture in the economy. They foresee the investment breathing new life into the local pharmaceutical industry and positively impacting the entire industrial landscape of Nigeria. Overall, the outlook appears promising, positioning Emzor as a potential new giant in the West African health sector.

  • Why Nigerian judiciary is weak, by Agbakoba

    Why Nigerian judiciary is weak, by Agbakoba

    A former Nigerian Bar Association (NBA) president, Dr Olisa Agbakoba (SAN), yesterday called for a holistic reform of the judiciary, which he described as weak.

    He faulted the continued exclusion of the Bar and the academia from appointments to the Bench, saying a law was needed to make their nominations mandatory.

    “They (the judiciary) have created a mafia by blocking the Bar and the academia,” Agbakoba said at a briefing in Lagos on “governance strategies for President Tinubu”.

    The senior advocate called for a “legitimate” constitution to be prepared through the involvement of the “original owners” of Nigeria.

    According to him, the 1999 Constitution lacks acceptability because it was imposed on the people.

    “The problem with the Constitution is that it lacks legitimacy, validity and is not autochthonous,” he said.

    He also believes it was important to redefine the co-existence of the ethnic groups.

    The SAN said: “Government needs to resolve critical national questions. Are we a country, state, or nation? Do we intend to live together as one country and how?

    “Once these questions are answered, it will set the stage for a new political arrangement that can be articulated in a new Constitution.

    “Government can engage sub-national ethnic leaders (Ohaneze, Arewa, and Afenirere). They have national appeal and can provide alternatives

    “The current National Assembly has powers to facilitate this process under the Constitution.

    “National Assembly can adopt wholesale constitutional replacement as suggested by Prof. Nwabueze under sections 4(1) and 315(1) (a) & (4) of the 1999 Constitution.

    “Massive devolution of powers from the Federal to state governments is needed. Strengthen institutions that support democracy. Guarantee local government autonomy.”

    Agbakoba, who said Nigeria’s governance structures are weak, stressed the need to strengthen them through critical laws and policies.

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    On the judiciary, he said: “Expunge outdated laws from our statute books, using the Rwanda model.

    “Unbundle Nigeria’s unitary judicial structure to create federal, state, and local government court systems to decongest the judicial roadblock.

    “Legislate on justice administration especially qualification for appointment and composition of courts. This is not new.

    “The Federal High Court, Court of Appeal Act and Supreme Act already have provisions relating to qualification for appointment and composition of courts.

    “The Court of Appeal Act, for instance, provides that appeals from the Customary Court shall be heard by not less than three Justices of the Court of Appeal learned in customary law. 

    “Nothing stops the National Assembly from including in the Act that the Supreme Court shall be composed of Justices from bench bar and academia.” 

    Agbakoba said President Tinubu has set a very ambitious goal to grow Nigeria’s GDP to $1 trillion in seven years.

    He added: “The President has also taken tough decisions towards market correction like removal of fuel subsidies, floating the naira, and liberalising the foreign exchange market. This is a huge task.

    “To achieve these goals requires massive legislation and executive action.

    “Two countries that achieved major turnaround by enactment of major legislation and executive are the U.S. (Franklin D. Roosevelt’s New Deal) and UK (Margret Thatcher’s Big Bang).

    “The primary tool Tinubu needs is governance. Governance is a critical tool in development planning. It is the equivalent of a building plan.”