The Nation Newspaper

Category: Special Report

  • Biden rejects coups in Africa, backs AU, ECOWAS

    Biden rejects coups in Africa, backs AU, ECOWAS

    United States President Joe Biden has rejected coups in Africa, voicing his support for the African Union (AU) and the Economic Community of West African States (ECOWAS).

    He spoke against the backdrop of recent coups in Niger and Gabon at the 78th Session of the United Nations General Assembly (UNGA 78) in New York, Tuesday.

    Biden called for international cooperation to tackle global challenges, stressing that countries across the world share a common future.

    He said: “The United States seeks a more secure; more prosperous and equitable world for all people because we know our future is bound to yours.

    Read Also: TUC demands quick action on post subsidy removal palliatives for workers

    “Let me repeat that again: We know our future is bound to yours. We will not retreat from the values that make us strong. We will defend democracy, our best tool to meet the challenge that we face around the world.

    “Let’s do this work together. Let’s deliver progress for everyone.

    Similarly, South African President, Cyril Ramaphosa called on the global community to work with the African Union to end conflicts across Africa.

    He said: “The global community needs to work alongside the African Union to support peace efforts in the (Democratic Republic of Congo), in Libya, Sudan, Somalia, Mali, Central African Republic, South Sudan, North Mozambique, the Great Lakes region, the Sahel, Nigeria and the Horn of Africa.”

  • Nigeria more ready for business now, Tinubu tells ExxonMobil

    Nigeria more ready for business now, Tinubu tells ExxonMobil

    President Bola Tinubu yesterday said Nigeria has never been more ready for business than now, saying the country is no longer settling for crumbs and leftovers on the investment agenda of the world’s most prolific energy conglomerates.

    According to a statement  by his Special Adviser on Media and Publicity, Ajuri Ngelale, President Tinubu spoke when he hosted a delegation consisting of the global leadership of an Oil & Gas transnational giant, ExxonMobil, in New York on the sidelines of the United Nations General Assembly (UNGA).

    President Tinubu, who was once an executive in Mobil Oil Nigeria, before the 1999 merger, which resulted in ExxonMobil, told his guests that “Nigeria has never been more ready for business than it is now.”

    President Tinubu said following an illustrious private sector career as a professional accountant in the oil and gas industry, he has proven his capacity to take difficult decisions as President and is best prepared to solve problems and crush all bottlenecks standing in the way of new and large-scale capital flowing into Nigeria’s oil and gas industry.”

    Read Also: Impeached Ogun council boss lied against me – Abiodun

     “The knotty issues require direct supervision on my part. Despite many contending obligations, I will sit down and oversee the process of removing these encumbrances to job and wealth creation for the Nigerian people.

    “We know the industry. We grew up in it. We are positioned to solve the problems, and we are pragmatic, and we will solve the problem,” the President firmly assured.

    ExxonMobil President of Global Upstream Operations, Liam Mallon, assured President Tinubu that he is aware of the new and personal commitment that the President is bringing to bear on behalf of Nigeria and is well placed to reciprocate the President’s efforts with new investment as he pledged new production of nearly 40,000bpd in its Nigerian operations in phase one of a new investment push in Nigeria.

    “What you told us was that your team would collaborate with us, and that has proven true. We have made significant progress since we last met. We are growing our production, and we are working hard on expanding in the deep-water production. We appreciate your efforts, and we will respond in kind. The time is right. Thank you for your leadership,” the ExxonMobil President stated.

  • First Lady, governors’ wives move to address ‘Japa syndrome’

    First Lady, governors’ wives move to address ‘Japa syndrome’

    • Nigeria to pursue advocacy against TB, AIDS among children

    The First Lady, Mrs. Oluremi Tinubu has called on the Diasporas to contribute their quota to the “Renewed Hope Agenda” of President Bola Tinubu’s administration.

    She also called on  youths to have hope in the efforts of the current administration to deliver on the dividends of democracy and provide for their basic needs.

    According to the UN, in 2022, 26,400 Nigerian citizens requested asylum abroad while 27,000 Nigerian citizens were recognized as refuges and granted protection in 2022.

    Mrs. Tinubu made the call on Monday at the New York 2023 Nigeria Economic Growth and Trade Summit with the theme,” Stemming Migration Flows by Providing Basic Needs’’, at Nigeria House in New York.

    The UN correspondent of the News Agency of Nigeria (NAN) reports the summit was organised by the Nigeria Governors’ Wives Forum on the sidelines of the 78th session of the UN General Assembly (UNGA).

    The first lady said while migration could offer new opportunities and experiences, it also presented risks and challenges that could manifest in brain drain.

    Read Also: TUC demands quick action on post subsidy removal palliatives for workers

    “The brain drain phenomenon, where highly skilled individuals leave their home country for supposedly better prospects abroad, is a concern for many African nations, depriving them of their expertise and talents needed for sustainable growth.

     Also in attendance were the first Ladies of Lagos State, Mrs. Ibijoke Sanwo-Olu;   Borno, Mrs. Falmata Zulum and Kogi, Hajiya Rashidat Yahaya Bello.

    Mrs. Tinubu has also assured global agencies that Nigeria will vigorously pursue its advocacy against tuberculosis and AIDS among children at all levels of governance in the country.

    The First Lady, who gave the assurance while speaking at the side event organised by Concordia at the ongoing 78th United Nations General Assembly (UNGA) in New York, said Nigeria has no reason to have high statistics of prevalence in both areas.

    The First Lady spoke at the two separate sessions on the importance of innovation towards achieving an AIDS-free generation and health standards and investment towards effectively financing the eradication of tuberculosis.

  • Ramaphosa calls for diplomacy to ‘silent gun’ in Africa

    Ramaphosa calls for diplomacy to ‘silent gun’ in Africa

    South African President Cyril Ramaphosa has called for diplomacy to address military takeovers on the African continent.

    Ramaphosa made the call in his statement to the General Debate of the 78th Session of the General Assembly at the UN headquarters yesterday in New York

    Ramaphosa, who was the first African leader to address the gathering, drew the attention of the global community to the recent military takeovers in some Africa countries.

     “As the global community, we must ensure the essential qualities that define our humanity are evident in the institutions that manage the conduct of international relations.

    “We require institutions that are inclusive, representative, democratic and advance the interests of all nations.

    “We require a renewed commitment to multilateralism, based on clear rules and supported by effective institutions.

     “This is the moment to proceed with the reform of the UN Security Council, to give meaning to the principle of the sovereign equality of nations and to enable the council to respond more effectively to current geopolitical realities,’’ he said.

     He said that his country was pleased that the Common African Position on the reform of the Security Council was increasingly enjoying wide support.

    Read Also: Impeached Ogun council boss lied against me – Abiodun

     He said this process should move to text-based negotiations, creating an opportunity for convergence between member states.

     “We must ensure that the voice of the African continent and the global South is strengthened in the United Nations and broader multilateral system.

     “All the peoples represented here in this United Nations had their origins in Africa.

     “In Africa, they developed the tools and capabilities to spread across the world and achievable remarkable feats of development and progress.

     “In spite of its history, in spite of the legacy of exploitation and subjugation, in spite of the ongoing challenge of conflict and instability, Africa is determined to regain its position as a site of human progress,” Ramaphosa said.

     The Southern African President said that the African Continental Free Trade Area was creating a wider seamless trading area of low tariffs and accelerated interconnectivity.

     Through it, he said, African countries were mobilising their collective means and resources to achieve shared prosperity.

     “Through the African Continental Free Trade Area, African countries are establishing the foundation for a massive increase in trade, accelerated infrastructure development, regional integration and sustainable industrialisation.

     “As the global community, we have the means and we have the desire to confront and overcome the enormous challenges that face humanity today.

     “As the nations gathered here in this General Assembly, let us demonstrate that we have both the will and the resolve to secure a peaceful, prosperous and sustainable future for our world and for the generations that will follow,’’ he said.

     Ramaphosa further said Africa was warming faster than the rest of the world, noting that of the 20 climate hotspots in the world, 17 were in Africa.

    “Centuries after the end of the slave trade, decades after the end of the colonial exploitation of Africa’s resources, the people of our continent are once again bearing the cost of the industrialisation and development of the wealthy nations of the world.

    “This is a price that the people of Africa are no longer prepared to pay. We urge global leaders to accelerate global decarbonisation, while pursuing equality and shared prosperity.

    “We need to advance all three pillars of the Paris Agreement – mitigation, adaptation and support – with equal ambition and urgency.

    “African countries, alongside other developing economy countries, need increased financial support to both implement the 2030 Agenda and achieve their climate change goals in a comprehensive and integrated manner,’’ he said.

    The South African President said that they needed to operationalise the Loss and Damage Fund for vulnerable countries hit hard by climate disasters, as agreed at COP27.

    “Africa has embraced this challenge. Africa is determined to deploy smart, digital and efficient green technologies to expand industrial production, boost agricultural yields, drive growth and create sustained employment for Africa’s people.’’

  • ‘For Africa, we do not wish to replace old shackles with new ones’

    ‘For Africa, we do not wish to replace old shackles with new ones’

    Text of an address delivered by President Bola Ahmed Tinubu at the general debate of the 78th session of United Nations General Assembly in New York yesterday

    THIS is my first address before the General Assembly. Permit me to say a few words on behalf of Nigeria, on behalf of Africa, regarding this year’s theme.

    Many proclamations have been made, yet our troubles remain close at hand. Failures in good governance have hindered Africa. But broken promises, unfair treatment and outright exploitation from abroad have also exacted a heavy toll on our ability to progress.

     Given this long history, if this year’s theme is to mean anything at all, it must mean something special and particular to Africa. 4

      In the aftermath of the Second World War, nations gathered in an attempt to rebuild their wartorn societies. A new global system was born and this great body, the United Nations, was established as a symbol and protector of the aspirations and finest ideals of humankind.

     Nations saw that it was in their own interests to help others exit the rubble and wasteland of war. Reliable and significant assistance allowed countries emaciated by war to grow into strong and productive societies.

    Read Also: TUC demands quick action on post subsidy removal palliatives for workers

    The period was a highwater mark for trust in global institutions and the belief that humanity had learned the necessary lessons to move forward in global solidarity and harmony. 5

     Today and for several decades, Africa has been asking for the same level of political commitment and devotion of resource that described the Marshall Plan.

     We realize that underlying conditions and causes of the economic challenges facing today’s Africa are significantly different from those of post war Europe.

    We are not asking for identical programs and actions. What we seek is an equally firm commitment to partnership. We seek enhanced international cooperation with African nations to achieve the 2030 agenda and Sustainable Development Goals. 6

    There are five important points I want to highlight.

    First, if this year’s theme is to have any impact at all, global institutions, other nations and their private sector actors must see African development as a priority, not just for Africa but in their interests as well.

    Due to both longstanding internal and external factors, Nigeria’s and Africa’s economic structures have been skewed to impede development, industrial expansion, job creation, and the equitable distribution of wealth.

    If Nigeria is to fulfil its duty to its people and the rest of Africa, we must create jobs and the belief in a better future for our people. 7

    We must also lead by example.

     To foster economic growth and investor confidence in Nigeria, I removed the costly and corrupt fuel subsidy while also discarding a noxious exchange rate system in my first days in office.  Other growth and job oriented reforms are in the wings.

    I am mindful of the transient hardship that reform can cause. However, it is necessary to go through this phase in order to establish a foundation for durable growth and investment to build the economy our people deserve. 8

     We welcome partnerships with those who do not mind seeing Nigeria and Africa assume larger roles in the global community.

     The question is not whether Nigeria is open for business. The question is how much of the world is truly open to doing business with Nigeria and Africa in an equal, mutually beneficial manner.

     Direct investment in critical industries, opening their ports to a wider range and larger quantity of African exports and meaningful debt relief are important aspects of the cooperation we seek.

    Second, we must affirm democratic governance as the best guarantor of the sovereign will and well-being of the people. Military coups 9 are wrong, as is any tilted civilian political arrangement that perpetuates injustice.

    The wave crossing parts of Africa does not demonstrate favour towards coups. It is a demand for solutions to perennial problems.

      Regarding Niger, we are negotiating with the military leaders. As Chairman of ECOWAS, I seek to help re-establish democratic governance in a manner that addresses the political and economic challenges confronting that nation, including the violent extremists who seek to foment instability in our region. I extend a hand of friendship to all who genuinely support this mission.

     This brings me to my third crucial point. Our entire region is locked in protracted battle against violent extremists. In the turmoil, a dark channel of inhumane commerce has formed. Along the route, everything is for sale. Men, woman and children are seen as chattel.

    Yet, thousands risk the Sahara’s hot sand and the Mediterranean’s cold depths in search of a better life. At the same time, mercenaries and extremists with their lethal weapons and vile ideologies invade our region from the north.

    This harmful traffic undermines the peace and stability of an entire region. African nations will improve our economies so that our people do not risk their lives to sweep the floors and streets of other nations. We also shall devote ourselves to disbanding extremist groups on our turf. 11

     Yet, to fully corral this threat, the international community must strengthen its commitment to arrest the flow of arms and violent people into West Africa. 30. The fourth important aspect of global trust and solidarity is to secure the continent’s mineral rich areas from pilfering and conflict. Many such areas have become catacombs of misery and exploitation. The Democratic Republic of the Congo has suffered this for decades, despite the strong UN presence there. The world economy owes the DRC much but gives her very little.

     The mayhem visited on resource rich areas does not respect national boundaries. Sudan, Mali, Burkina Faso, CAR, the list grows. 12

    The problems also knocks Nigeria’s door. Foreign entities abetted by local criminals who aspire to be petty warlords have drafted thousands of people into servitude to illegally mine gold and other resources. Billions of dollars meant to improve the nation now fuel violent enterprises. If left unchecked, they will threaten peace and place national security at grave risk.

    Given the extent of this injustice and the high stakes involved, many Africans are asking whether this phenomenon is by accident or by design.

    Member nations must reply by working with us to deter their firms and nationals from this 21st century pillage of the continent’s riches. 13

    Fifth, climate change severely impacts Nigeria and Africa. Northern Nigeria is hounded by desert encroachment on once arable land. Our south is pounded by the rising tide of coastal flooding and erosion. In the middle, the rainy season brings floods that kill and displace multitudes.

    As I lament deaths at home, I also lament the grave loss of life in Morocco and Libya. The Nigerian people are with you.

    African nations will fight climate change but must do so on our own terms. To achieve the needed popular consensus, this campaign must accord with overall economic efforts. 38. In Nigeria, we shall build political consensus by highlighting remedial actions which also promote 14 economic good. Projects such as a Green Wall to stop desert encroachment, halting the destruction of our forests by mass production and distribution of gas burning stoves, and providing employment in local water management and irrigation projects are examples of efforts that equally advance both economic and climate change objectives.

    Continental efforts regarding climate change will register important victories if established economies were more forthcoming with public and private sector investment for Africa’s preferred initiatives.

     Again, this would go far in demonstrating that global solidarity is real and working.

    15 CONCLUSION

    As I close, let me emphasize that Nigeria’s objectives accord with the guiding principles of this world body: peace, security, human rights and development.

    In fundamental ways, nature has been kind to Africa, giving abundant land, resources and creative and industrious people. Yet, man has too often been unkind to his fellow man and this sad tendency has brought sustained hardship to Africa’s doorstep.

     To keep faith with the tenets of this world body and the theme of this year’s Assembly, the poverty of nations must end. The pillage of one nation’s resources by the overreach of firms and people of stronger nations must end. The will of the people 16 must be respected. This beauty, generous and forgiving planet must be protected.

     As for Africa, we seek to be neither appendage nor patron. We do not wish to replace old shackles with new ones.

      Instead, we hope to walk the rich African soil and live under the magnificent African sky free of the wrongs of the past and clear of their associated encumbrances. We desire a prosperous, vibrant democratic living space for our people. 46. To the rest of the world, I say walk with us as true friends and partners. Africa is not a problem to be avoided nor is it to be pitied. Africa is nothing less than the key to the world’s future.

  • Manufacturers rue disappointing Q2 performance

    Manufacturers rue disappointing Q2 performance

    Amidst a challenging operating environment characterised by unfavourable macroeconomic indicators, the manufacturing sector witnessed a significant underperformance during the Second Quarter of 2023 (Q2 ’23). This decline was primarily attributed to the gradual recovery from the cash constraints stemming from the naira redesign policy, escalated energy and transportation costs, and, to some extent, the abrupt elimination of fuel subsidies. Nevertheless, a series of complementary policy interventions, introduced concurrently with the fuel subsidy removal towards the quarter’s end, offer potential for revitalising the sector’s lacklustre performance. Assistant Editor CHIKODI OKEREOCHA reports

    The performance of major indicators of the Nigerian manufacturing sector in the Second Quarter of 2023 (Q2 ’23) was less than sterling. Nearly all the indicators that measure the health of the manufacturing sector such as capacity utilization, sales volume, volume of production, manufacturing employment, production and distribution costs, manufacturing investment, and cost of shipment etc. underperformed in Q2’23.

     For instance, to the chagrin of real sector operators particularly manufacturers and the current administration’s economic managers hoping to leverage a vibrant manufacturing sector to put the economy on the recovery path, capacity utilization in the manufacturing sector nosedived by 5.6 per cent in the quarter under review from five (5) per cent contraction witnessed in the preceding quarter.

     Manufacturers’ sales volume also plummeted by 6.3 per cent in Q2 ’23, against the 13 per cent contraction witnessed in the preceding quarter. Volume of production equally contracted by 6.1 per cent from a contraction of 13 per cent recorded in the previous quarter, while manufacturing investment dipped further by 5.6 per cent in the second quarter of 2023 from three (3) per cent contraction recorded in the preceding quarter. The unfavorable changes in the sector’s performance indicators, said to have been largely caused by the slow recovery from the cash crunch that came in the wake of the Central Bank of Nigeria (CBN) Naira Redesign Policy, including high cost of energy and transportation cost, also forced manufacturers’ production and distribution costs to escalate by as much as 17.3 per cent in the quarter under review.

     Production and distribution costs, however, witnessed a slowdown from the 24 per cent increase witnessed in the preceding quarter (i.e. Q1 ’23). Cost of shipment also rose by 14.3 per cent in the second quarter of 2023, though it witnessed a slowdown from the 20 per cent increase recorded in the first quarter of this year. The CBN had under its national currency redesign policy mopped up over 70 per cent of cash in the economy, causing an unprecedented and protracted cash crunch which crippled economic activities in the country and posed major existential threat to most Nigerians, particularly manufacturers who were left agonising over a more than 25 per cent dip in sales of manufactured products, according to the Director-General of Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir.

    To further highlight the severity of the hardship foisted on manufacturers by the policy, and how the slow recovery from the cash crunch it induced largely contributed to the underperformance of key manufacturing indicators in Q2 ’23, the special focus in the Manufacturers CEO Confidence Index (MCCI) for the Second Quarter (MCCI Q2 ’23) was titled ‘How Naira Scarcity Took Toll on Manufacturing Businesses.’

    The MCCI is an index created by MAN to measure changes in quarterly pulsation of manufacturing in relation to movement in the macro-economy and government policies. The Index is, therefore, a barometer used by MAN to aggregate the views of CEOs of manufacturing companies on changes in the economy. MAN, in the MCCI Q2 ’23, released last week and made available to The Nation, said the naira redesign and the new cash withdrawal limits by the CBN resulted in the scarcity of both old and new naira notes across all banking halls and electronic payment channels in the country which took a heavy toll on manufacturing businesses.

     According to the MCCI report, the prolonged cash crunch impacted negatively on manufacturers by limiting their working capital, thus halting their business operations. It also said it crushed the consumer patronage of manufacturing firms and escalated their volume of inventories, especially for retail goods. “By exposing the highly cash-based distributive trade sector to great risk, the economic crisis had severe consequences on the manufacturing value chain and cost of logistics,” Ajayi-Kadir said. The Association also lamented that the naira scarcity clearly wiped out numerous small and medium manufacturing businesses whose transactions were cash-based, especially those within the agro-allied industries who regularly deal with local farmers in remote towns where no formal banking was in sight.

    Read Also: Why I won’t sit in my office expecting quality projects, by Momoh

     He argued that the country’s transition to a cashless economy requires no urgency or policy aggressiveness considering that a lot of progress has already been made. According to him, “A comparative analysis of the country’s cashless status has shown that while the ratio of cash to Gross Domestic Product (GDP) in Europe, U.S. and South Africa are respectively about 10 per cent, six per cent and 3.5 per cent, Nigeria’s ratio is impressively below 1.5 per cent.”

     The MAN D-G, therefore, said achieving a full cashless economy should not be the pressing issue when there are tougher challenges of insecurity, exchange rate volatility, skyrocketing inflation, energy disruption, over bloated fiscal debt, dwindling foreign reserves, business collapses and daily divestments. However, the cash crisis wasn’t the only factor responsible for the underperformance of the manufacturing indicators in the quarter under review. High energy and transportation cost, lingering forex scarcity and continuous depreciation of the naira also left manufacturers bleeding and limited their capacity utilisation with the importation of non-locally produced critical input becoming a nightmare.

    There was a global energy crisis which began in the aftermath of the COVID-19 pandemic in 2021, with much of the globe including Nigeria facing shortages and increased prices in oil, gas and electricity markets. The crisis was caused by a variety of economic factors, including the rapid post-pandemic economic rebound that outpaced energy supply.

    The Consumer Price Index (CPI), which is the main economic indicator that tracks inflation rate and cost of living, also escalated. Manufacturers’ access to Foreign Exchange (forex) was also difficult, even as exorbitant and multiple taxes, high lending rates, persistent and pervasive insecurity, and the domino effects of the lingering Russia-Ukraine war took heavy toll on manufacturers’ operations.

    The abrupt removal of fuel subsidy towards the end of the second quarter of 2023 was also an issue, as it immediately led to a steep increase in fuel prices across the country by over 200 per cent. This, in turn, pushed up inflation and impacted businesses and households, with costs of transportation as well as basic food items well above the reach of many Nigerians.

     Ajayi-Kadir also said despite the recent unification of the forex windows by the current administration, the exorbitant premium that persists between the official and parallel exchange rates have further stalled manufacturing operations.

    With the unfavourable changes in the manufacturing indicators in Q2 ’23, the Aggregate Index Score (AIS) of MCCI declined to 52.7 points in the second quarter of 2023 from 54.1 points obtained in the first quarter of 2023. The index score of the current quarter, though below that of the previous quarter, indicates that manufacturers generally showed resilience and retained confidence in the economy.

    However, across sectoral groups, operators in Motor Vehicle and Miscellaneous Assembly with an index score of 46.7 exhibited further loss of confidence as they fell below the 50-point benchmark. These operators were adversely affected by the exorbitant new premium rate for motor insurance and the abrupt subsidy removal which significantly worsened sales performance and increased the consumer’s preference for fairly used vehicles as a result of low purchasing power. Similarly, among industrial zones, activities in Abuja (40), Rivers/Bayelsa (40.5), Cross-Rivers/Akwa-Ibom (45), Kano (46.2), Kaduna (47.8) and Oyo/Ondo/Ekiti/Osun (48.6) were depressed by the high-cost operating environment in the second quarter of 2023 as underlined by their index scores which fell below the benchmark points.

    Ajayi-Kadir said it is expedient that the government strives to ensure the harmonisation of fiscal and monetary policies that will pave the way for a stable macroeconomic environment needed to promote productivity in the manufacturing sector and improve the ease of doing business.

    “The abrupt removal of fuel subsidy without appropriate palliatives is already beginning to wane on the confidence of Nigerians in this new administration,” Ajayi-Kadir said, adding, “No CBN forex intervention will be effective without boosting the level of liquidity and transparency in the official forex window.”

     The MAN chief, however, noted that the introduction of the Forex Price Verification System Portal was laudable, pointing out that it will improve transparency.

    He said more needs to be done to increase the forex liquidity, especially by intensifying efforts to encourage the inflow of foreign investments, promoting export in productive industries as well as encouraging local sourcing and local patronage.

     These, according to him, require bridging the huge infrastructure gap, especially as it relates to customs, transport and power which are of utmost concern to the manufacturers; complete reformation of the power sector through the Electricity Act 2023 in order to end erratic supply of electricity. He also said boosting public-private investment in renewable energy, backward integration and local sourcing of raw materials in order to create a highly competitive and self-sufficient manufacturing industry have never been this compelling.  Ajayi-Kadir said: “No CBN forex intervention will be effective without boosting the level of liquidity and transparency in the official forex window.”

  • Expectant passengers excited by train e-ticketing

    Expectant passengers excited by train e-ticketing

     The imminency of e-ticketing on the Lagos-Ibadan Standard Gauge by the Nigerian Railway Corporation is exciting many passengers who had patiently waited for its launch, writes ADEYINKA ADERIBIGBE

    The Nigerian Railway Corporation (NRC) had tried to warn members of the public to beware of the whims of fraudsters who had opened a fake website to lure innocent passengers “to buy tickets” on the Lagos-Ibadan speed train online. Its message was clear: e-tickets are not ready.

    But for Abdullateef Sanni, the warning could only mean one thing: The corporation is almost ready to launch electronic tickets and save Nigerians the agony of buying train tickets only onsite. Indeed, the same week, before it was alerted of the antics of the fraudsters, the Corporation’s managing director Fidet Okhiria had confided exclusively that e-ticketing may commence on the western speed train service by month’s end.

     For Sanni, the move is undoubtedly in the right direction if painstakingly implemented.

    Better than horrific traffic

       Many travellers who opted for the Lagos-Ibadan Train Service (LITS) to beat the ‘mad’ traffic on the Lagos-Ibadan Expressway readily agreed with Sanni. Like him, they held that it is high time e-tickets were introduced on the corridor to join the flagship, Abuja-Kaduna Train Service (AKTS), where the cashless system has been in operation since 2018.

     He said he can’t wait for when cash transactions would give way for the cashless option that has been on the card since 2021 when the project was commissioned by former President Muhammadu Buhari, as obtained on the AKTS.

    Alhaja Morufat Ajimole, another regular train traveller said the cash transaction at times resorts to avoidable conflicts between ticketers and passengers over change unavailability.

     Travellers believe introducing e-ticketing on the Lagos-Ibadan route will reduce conflicts as it would reduce human interference and boost revenue generation of the nation’s frontline railway corporation.

     E-ticketing on the three networks – Abuja-Kaduna, Itakpe-Warri and Lagos-Ibadan is projected to generate about N140 billion yearly to the coffers of the Corporation.

     The Corporation’s Managing Director Engr Fidet Okhiria confided that e-ticketing would commence on the Lagos-Ibadan line before August ending.

    How to use e-ticket

     How do you use the E-ticket? Okhiria said the first step is to download the NRC SafeTrain App either from the Apple Store, for iPhones or Playstore for Android Smartphones or download the Nigerian Railway Corporation E-ticketing address https://nrc.tps.ng/register where you can sign up for the train ride. The first thing you’ll need to do is fill out the online form to generate a profile. This will entail filling in your title, first and last name, your user name, your E-mail, and password, gender, identification type, and National Identity Number, then you click on sign up to onboard your data on the corporation’s database.

     A regular or frequent traveller may do well to download the App, while the casual user may just use the link to secure his ride and revisit it anytime he has any need to use the train again.

     The journey

       E-ticketing was one of the cardinals for former Minister of Transportation Mr Rotimi Amaechi, who apart from supervising the construction and delivery of the Lagos-Ibadan train service and the route’s control centre, initiated the electronic ticketing of the Abuja-Kaduna route in 2019. Moves to do the same on the Lagos-Ibadan became more invigorated after the route was delivered in June 2021 when the government began shopping for firms to handle the electronic ticketing.

    Read Also: One bags first class as 18 Edo IDPs graduate from varsity

      Amaechi said the automation will enhance efficiency, save time, and promote accountability which would boost the government’s income.

     In November 2021, about 24 companies bid for electronic ticketing solutions for the Lagos-Ibadan and the Warri-Itakpe train services.

     The project, which is on a Build, Operate and Transfer (BOT) business case also received the nod of the Infrastructure Concession Regulatory Commission (ICRC).

    There were 11 companies for the Lagos-Ibadan rail service and 13 companies for the Itakpe-Warri route.

     Assuring Nigerians, the Director of Operations Niyi Alli said at the end of the entire process, four bidders would be chosen; one preferred bidder and one reserved bidder each from the two lots. He stated that passengers would have value for money at the end of the day.

    Three years later, electronic ticketing seems set to berth on the Lagos-Ibadan corridor, while work is on to flag off a similar initiative on the Itakpe-Warri corridor.

     The NRC Managing Director, Fidet Okhiria, told The Nation that the e-ticketing platform would soon go live by August to bring new travel experience to passengers.

     He said the Ministry had selected a preferred vendor for the corridor and in the coming days, passengers would be able to download the app either from PlayStore for Android/Smartphones or devices or Apple Store on I-Phones, register on the app and could buy and secure space on the train.

    The President of the Chartered Institute of Transport Administration (CIOTA) Nigeria’s foremost transportation institution Prince Segun Ochuko Obayendo commended the Corporation for onboarding the e-ticketing services as a value-added service to train passengers.

     Obayendo noted that he looked forward to the seamless implementation  of the new option said he is excited that train passengers would now have the opportunity to buy and book train service from anywhere, including the comfort of their homes, while the opportunity is now available for electronic payments that would reduce the incidences of cash transaction thereby promoting transparency, and boost revenue.

    He said the online payment would put paid to racketeering, adding that it certainly would boost the confidence of train riders.

     Adenusi wondered why it took the Federal Government which had the obligation to repay the China EXIM Bank the loan secured to execute the project over three years to pick a vendor for electronic ticket vending on the 156 km LITS.

    He said Nigeria wasted over 60 years underdeveloping its railway capacity thereby ensuring that at least two generations of Nigerians existed that never knew the relevance of rail transportation to the entire transport mix, adding that countries like China, Singapore and other Asian Tiger countries are developing new kilometres of rail networks yearly all in the name of unlocking their economy and providing options to move their people, goods and services.

     He challenged the new Tinubu administration to provide new leadership and reposition the transportation that is capable of giving the railway its pride of place as the mass mover of people, goods and services.

    What is e-ticket?

    E-ticket is a paperless electronic document used for ticketing purposes, such as air or train fare. They contain information such as the customer’s name, train number, seat number, and other relevant details about the purchase which are stored in a database and can be printed out at home or the ticket counter where its validity would be confirmed and access given.

      The easiest and quickest way which ensures a paperless transaction ensures that you can show your E-Ticket directly to the driver or the ticketer on your smartphone or device when boarding. You can also print the ticket to make validation easy.

     E-ticketing offers the traveler many advantages including security, flexibility, cost and convenience and this is what Nigerians thirst for and would want the Federal Government to give them on the LITS train service.

     Okhiria said that with the concessionaires’ approval, online ticketing on LITS and IWTS is around the corner.

  • Delays, controversies over Auditor-General appointment

    Delays, controversies over Auditor-General appointment

    Almost one year after the retirement of the Auditor-General for the Federation (AGF), Adolphus Aghughu, appointing a replacement has not been possible due to acrimony among directors. The appointment of one of the directors in the interim has not gone down well with some stakeholders, who claim the process contravened public service rules, reports TONY AKOWE.

    The retirement of the immediate past Auditor-General for the Federation (AGF), Adolphus Aghughu threw up an intense competition among directors in the office for the coveted seat.

     Prior to his retirement, there have been moves to outdo one another by some of the directors with claims and counter-claims of who is senior among them who can oversee the office.

     Aghughu’s exit in September 2022 paved the way for the appointment of Andrew Onwudili to oversee the office, even though records show that he was not the most senior director; having been employed two years after three of the directors, making him the fourth in line.

     Before the emergence of Onwudili, the Federal Civil Service Commission had commenced the process for the appointment of a new Auditor-General with an in-house advertisement.

     The Nation learnt that the initial idea was to get the Auditor-General from among the directors in the agency. But one year after the process began, there appears to be a deadlock as the commission has not been able to come up with a candidate who will be appointed by the President and confirmed by the Senate.

     Section 86 sub-section 1 to 3 of the 1999 Constitution as amended provides modalities for the appointment of the AGF.

    The section states that “the Auditor-General for the Federation shall be appointed by the President on the recommendation of the Federal Civil Service Commission subject to confirmation by the Senate. (2) The power to appoint persons to act in the office of the Auditor-General shall vest in the President and (3) except with the sanction of a resolution of the Senate, no person shall act in the office of the Auditor-General for a period exceeding six months.”

    Read Also: CSOs urge Tinubu to appoint new auditor-general

    But the process has been bogged down by controversy regarding seniority among some of the directors in the agency. While some of them have been involved in the selection process, two others have been excluded.

    The Nation observed that the struggle for the position appeared to have started long before the occupant of the office vacated it as five of the Directors started struggling for seniority despite the provisions of Public Service on seniority in the public service.

    A letter from the Office of the Head of Civil Service of the Federation dated February 9 2021, with reference number HCSF/PSO/152/II/150 addressed to the Director of Audit overseeing the Office of the Auditor-General for the Federation tried to set the records straight about seniority among the directors.

     The letter drew attention to the provisions of the Public Service Rule 020106 which states that “seniority in any department shall be determined by the entry/the assumption of duty certified by an authorised officer as reflected in the appropriate register.”

     In line with the provision, the letter which was signed by Babura in the USA, the Director in charge of Employee Mobility in the OHCSF listed the officers in accordance with their seniority level as Isiuku Julius Michael, Mrs Ogundowo Addition Oluseyi, Mrs Ugwu Ngozi Eucharia, Onwudili Ogochukwu and Gbayan Shirts Gabriel. It also stated that “with the above clarification, this matter would be laid to rest and allow for a good and harmonious working relationship devoid of rancour among the directors and other members of staff in the Office of the Auditor-General for the Federation.

      The letter from the Head of Service was prompted by a letter from the Office of Auditor-General seeking intervention on the determination of seniority among the directors.

     The letter reads: “I am directed to request your kind intervention on the resolution of the seniority challenge encountered by the under-listed directors in the Office of the Auditor-General for the Federation. The Human Resources Department had received complaints that they were not placed properly on the office nominal roll. Efforts to internally address the issue seem not to be satisfactory. Accordingly, it will be appreciated if the OHCSF can intervene to resolve the matter.”

     However, in another letter reference with reference number HCSF/ALSO/ODD/E&WP/64421/166 dated July 18, 2022, and signed by the Director, Organisation, Design and Development in the OHCSF, B. O. C. Omogo, the earlier list was completely turned round. The letter reads: “I am directed to refer to your letter ref no GEN/EMAD//CORR/2020/55 dated March 28, 2022, on the above subject and convey the reviewed seniority list among the five directors in your office as follows: Andrew Ogochukwu Onwudili, Shirts Gabriel Gbayan, Adeoti Oluseyi Ogundowo, Ngozi Eucharia Ugwu and Julius Michael Isiuku.

    “In arriving at the reviewed list, the parameters outlined below were taken into consideration. (a) date of present appointment; (b) career progression; (c) date of assumption of duty and (d) date of first appointment.

     “This letter, therefore, supersedes our earlier letter ref. UCSF/PSO/152/II/15 and dated February 9 2021 on the subject.”

    A look at the Public Service Rules revealed that the only criterion for determining seniority in service is the date of employment and assumption of duty.

     However, the nominal roll of the office of the Auditor-General for April 2021 sighted by The Nation revealed that while Mrs Ogundawo was first employed in the service on September 26, 1990, and confirmed two years later, the Director overseeing the Office of the Auditor-General, Andrew Onwudili was employed on July 27, 1992, and confirmed two years later. Also, another director in the OAUGF, who was excluded from the process of appointing a new Auditor-General, Mrs Eucharia Ngozi Ugwu was employed on November 11 1990 and confirmed two years later.

     Also, Shirwa Gabriel Gbayan was captured in the nominal roll as having been employed into the service on August 24, 1992, and confirmed two years later in 1994; while Julius Isiuku (he retired from service in December 2022) was employed on January 13 1989 and confirmed two years later.

    The Nation also sighted two different memos from the Federal Civil Service Commission on the list of directors qualified to participate in the selection process for the position of Auditor-General with the names of the two women missing.

    It was also learnt that, in its last days in the 9th Assembly, the Public Accounts Committee of the House of Representatives invited the Head of Service of the Federation, Folashade Esan to explain why it should issue two separate letters on the same issue.

      Although the meeting between the Committee and the Head of Service took place, Oke, who headed the committee, said the best thing to do was to interface with the Minister of Justice and the Attorney-General of the Federation regarding the lingering controversy surrounding the seniority of top officials on the director cadre in the OAGF. Oke had said at the meeting with the Head of Service who was represented by a Director that “there is no provision for the office of the Auditor-General of the Federation to be run by a Director. It is illegal. The Director currently occupying that office cannot fulfil the constitutional roles of the Auditor-General of the Federation.

     “We have a backlog of audited accounts of the Federation for the years 2020, 2021 and 2022, which are yet to be laid before the National Assembly due to the absence of a substantive Auditor-General of the Federation to sign them.”

     In a petition to the Public Accounts Committee of the House of Representatives, dated February 3, 2023, Mrs Ogundowo alerted that her name was omitted from the list of eligible directors to be considered for accreditation exercise for appointment as Auditor-General for the Federation.

     She said the omission of her name was based on an unsubstantiated report of the EFCC.

     She said: “I humbly write to draw the attention of the PAC Committee to the process undertaken by the Federal Civil Service Commission midwifing the appointment of the next Auditor-General of the Federation. Having been screened by the DSS, and ICPC, it is shocking to note that the Commission (the EFCC) made an incorrect allegation on my account of income flowing into the account from a business “Satisqua Table Water Enterprises” on which I was not invited to explain but reported upon. For this kind of screening held in high esteem, it would be fair and just for the Commission to be specific on the income inflow traced to my account and seek further clarifications before drawing conclusions.

    “It is against this background that I am here seeking clarification and clearance from the Economic and Financial Crime Commission (EFCC), copy of the registered business name is attached to this application. Your prompt intervention on this would be highly appreciated, please.”

    She also wrote to the Head of the Civil Service of the Federation seeking intervention “in a case of serious misconduct levelled against me by the Auditor-General for the Federation, Adolphus Aghughu.”

     The letter was dated June 28 2022, a few weeks before Aghughu retired as Auditor-General.

    According to her, she was accused of contravention of the Office of the Auditor-General for the Federation’s Communication Policy; Falsification of Records; Unauthorised disclosure of official information; and any other act unbecoming of a public officer. According to her, issues raised in the query were in respect of seniority of Directors of Audit which she said started in 2020 but laid to rest in line with Public Service Rules (PSR) 020106, vide letter no. HCSE/PSO/152/150 dated February 9 2021.

     In the petition, she said that “at an emergency top management meeting held on June 17 2022, the AGF presented a version of the seniority list different from the one approved by the OHCSF. This he had shared on the WhatsApp Platform of the Colleges of Directors and also acknowledged to have approved.

     It is on this same Platform that I shared a copy of the seniority list I came across, particularly when the AGF had become inaccessible to most of his lieutenants (we the directors).

     This is supported by the fact that he shouted at me and instructed his security personnel to walk me out of his office in March 2021. The WhatsApp Platform for the Colleges of Directors was created to disseminate information among the directors and also for interaction as is applicable in other MDAs.

     Contrary to an allegation of circulating a fake nominal roll to the National Assembly, I wish to state that I am not aware of the existence of such in the National Assembly or any other government agency. It may interest the HCSF to note that one of the ‘fake’ nominal rolls, as alleged by the AGF was placed on the official notice board by the AGF himself.

     The HCSF may also wish to note that many versions of the fake nominal roll are in circulation and that all these versions, which are at variance with what was approved by the OHCSF, placed Mr Onwudili Andrew Ogochukwu, a Director of Audit, ahead of me as my senior, even though this is far from the truth.

     I assumed duty on September 26 1990, while he assumed duty on July 27 1992.  Both of us attained our present post of Director of Audit on January 1, 2017. 

    Mrs Ogundowo alleged in the petition that “there is a plot to disenfranchise me from participating in the selection process for appointment of a new AGF, which is why I am being victimised. This, I believe, is to enable Mr Onwydili to take over after the exit of Mr Aghughu who will be exiting the service on September 7 2022 since the most senior Director of Audit, Mr Isiuku Julius Michael, will also exit the service in December, 2022.”

     She made reference to the fact that the ground for Onwudili to take over as the most senior director may have been laid for him earlier when he was placed above her during their promotion exercise.

    She said: “My claim above is further supported by the fact that, upon our promotion to the post of directors in 201 7, Mr Onwudili was placed on SGL 17 step 10 and my good self on SGL 17 Step 8. We were both on the same step (GL 16 before our promotion to the post of Director).

     I wonder why he was given accelerated incremental steps. It is on the strength of this that I am inclined to conclude that there is a conscious attempt to prevent and disqualify me from aspiring for the post of the AGF, which I am entitled to, just like any other Director of Audit in the Federal Civil Service.”

     Continuing, she claimed that “in my 32 years of active and dedicated service (now 33), I have not received any warning or query. I am a loyal and committed civil servant with a high premium on value addition in the discharge of my official duties or any responsibilities assigned to me.”

     The Association of Retired Staff of the Office of the Auditor-General for the Federation have tried to intervene and ensure that justice is done to all those concerned. The association writes two separate petitions to the House of Representatives and the Federal Civil Service Commission.

      In the letters signed by the Chairman and Coordinator, Alhaji Taiwo Lawal, the association said though some of the actions taken since August 11, 2022, were found to be just, fair and acceptable, the Commission suddenly tainted the process “with the unjust removal of the two topmost Directors of Audit from the list of qualified Directors of Audit for accreditation exercise despite the fact that these female Directors of Audit met all the required conditions laid down by the commission.”

     In the letter to the House of Representatives, the Association said its desire was to see a level playing ground for all the Directors of Audit in all the processes for the appointment of the next Auditor-General for the Federation.

     It added that “Mrs Adeoti Oluseyi Ogundowo and Mrs E. N. Ugwu were both promoted Directors of Audit on January 1 2017, but the FCC dropped their names from the list of aspiring Directors of Audit for accreditation exercise that was hurriedly fixed for Friday, January 20 2023.”

     In the second petition to the Civil Service Commission, the association said that “being a critical stakeholder in the growth and development of our former office has been keenly watching and observing the process undertaken by the Federal Civil Service Commission in the appointment of Auditor-General for the Federation.”

      According to them, following the retirement of the former Auditor-General, the association supported the idea of not leaving a vacuum and having someone from within the office emerging as a replacement. It said it felt elated when the commission issued an internal advertisement and also circular requesting qualified directors to submit relevant briefs through the Human Resources Department.

     According to the Chairman, on January 13 2023, the Federal Civil Service Commission, through its circular with ref. no FCSC/CHMN/RAG/023/1I/126 and signed by Ogaba Ede (Director of Appointment and Recruitment) on behalf of the Chairman requested 10 Directors of Audit that have a minimum of one year and above before retirement to re-submit their CVs, briefs, certificates, personal and confidential files, and others to the Commission on or before January 17 2023.

    With the reduction of minimum years to retirement to one year and above, the Commission had widened the space and extended participation to earlier screened-out Directors of Audit.

    However, the Association observed that three names of suitably qualified Directors of Audit that were earlier screened and met all the requirements, including more than two years and above before retirement, were not included.

     The Directors of Audit are Mrs Adeoti Oluseyi Ocundowo FCNA. — promoted in 2017, Mrs Eucharia Ngozi Ugwu FCNA, mni. – promoted in 2017 and Mr Shakaar Chira Kantiyor FCNA promoted in 2021.

      The omission did not provide reason(s) for the non-inclusion of their names on the list. This Association was of the opinion that these three Directors of Audit must have been screened and hence there shouldn’t be a need to re-screen them for accreditation.”

     The association also said that “on January 18 2023, the Federal Civil Service Commission, through its Circular no. FCSC/CHMN/RAG/023/II/127 and signed on behalf of the Chairman by Ogaba Ede (Director of Appointment and Recruitment) released list of 11 Directors of Audit for accreditation exercise fixed then for January 20 2023.”

      It further said that “this Association was founded to protect the interest of serving and retired members of staff of Office of the Auditor-General of the Federation at all times and in all places. Consequently, the Association is not happy to confirm that, the two topmost female Directors of Audit that seem to have met all necessary requirements for accreditation were dropped.

     “Also of note was the inclusion of one of the three serving Directors of Audit (Mr Shaakaar Kantiyor Chira FCNA) —promoted to Director of Audit on January 1 2021, that was among three earlier screened but not added to the list requested for as per letter Ref. no. FCSC/CHMN/023/1/126 of January 13 2023.”

     It asked the Commission to be “gender-sensitive by bringing these two experienced female directors that were promoted in January 2017 up to the accreditation list and allow them to partake fully in the remaining exercise for the appointment of Auditor-General for the Federation.” They also want the two female Directors of Audit to be officially told the justifiable reason why their names were not included in the accreditation list.

     In a letter dated May 31 2023, the immediate past Chairman of the House of Representatives Committee on Public Accounts, Oluwole Oke informed President Bola Ahmed Tinubu of the infractions existing in the agency which is supposed to audit all government assets and accounts and present reports to the National Assembly.

    Incidentally, by the provisions of section 85 of the 1999 Constitution as amended, all audited reports are to be submitted only to the National Assembly.

      Oke, whose committee has oversight function over the agency for four years, drew the attention to developments within the Office of the Auditor-General for the Federation bothering on constitutional infractions on the appointment of a substantive Auditor-General of the Federation.

     He accused the Office of the Civil Service of the Federation and the Federal Civil Service Commission of ignoring the provisions of the public service rules by appointing a junior director to oversee the Office of the Auditor-General of the Federation. This decision also contravened the provisions of section 86(3) which requires a resolution of the Senate for anybody to act in the Office of the Auditor-General of the Federation.

     In a petition with reference no HR/ PAC/SC05/9NASS/66/206, Oke said the Head of Service contravened the provisions of the Constitution which states that no one should occupy an office in acting capacity for more than six months. As a result of the development, he said, several annual audited reports of MDAs have not been submitted to the National Assembly because the person acting as the Auditor-General lacks the power to sign the reports.

     The Nation investigation revealed that the last audited report of the government expenditure submitted to the National Assembly is the 2019 report, while the 2021 and 2022 annual reports are still pending. He said the working of the Public Accounts Committees in the National Assembly has been hampered by such delays.

     He said: “The position of the Auditor-General of the Federation became vacant on September 7 2022 after the retirement of the then substantive Auditor-General of the Federation, Mr Aghughu Adolphus.

     Contrary to the practice within the Public Service, which is that the most senior official is required to assume the role of the Head of the Institution in an acting capacity, the number three director (Mr Andrew Onwudili) with less than two years to serve was imposed on the Office and designated as the “Director Overseeing the Office” by the Head of the Civil Service of the Federation.

     This practically upturned the seniority nominal roll of the Office and created severe animosity and apathy within the Office. In addition to the above, Section 86(3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended) requires that a public official heading a position can act only for six months and another person can be appointed in an acting capacity.

     However, the Director  Overseeing the Office has acted beyond the required six months, which is a gross violation of the Constitution. The implication of this is that actions taken by him are both illegal and unconstitutional.

     In addition, the Annual Audit Report “for various ministries, departments and agencies (MDAs) which is due for “submission to the National Assembly, has not been signed and cannot be laid before the National Assembly.

      The Director Overseeing the Office lacks the constitutional capacity to sign these reports; hence, it has created a backlog, which is affecting the performance of Committees within the National Assembly.”

     Oke further said that “based on my personal inquiry and review of the situation, I noticed that one Mrs Oluseyi Ogundowo is the most senior director within the office and should have assumed the role of Acting Auditor-General.

  • Dust over relocation of foreign airlines

    Dust over relocation of foreign airlines

    The relocation of over a dozen foreign airlines from the dilapidated old terminal of the Murtala Muhammed International Airport (MMIA) to the new facility at the Lagos Airport is not boding well for passengers processing their flights from the nation’s premier gateway. Aside the inconvenience of leaving their homes at least three hours before the scheduled time for departure, overburdened conveyor belts, succumbing to unprecendented surge in passenger numbers and uncoordinated procedures by aeronautical authorities, travelling through the new international terminal is becoming nightmarish, writes KELVIN OSA OKUNBOR.

    These are not the best of times for passengers processing flights out of the country through the new terminal of the Murtala Muhammed International Airport  (MMIA), Lagos.

    Reason: Airlines, passengers and other airport users are having a raw deal adjusting to the pains in the hurried relocation of processing flights from the new facility.

    Though the Federal Government had given up to October 1 for the foreign airlines operating from the over four decade-old facility to move to the new infrastructure,  a recent fire outbreak from the basement of the MMIA has altered the narrative.

    Only last week, the Federal Airports Authority of Nigeria  (FAAN) effected an accelerated implementation of the Federal Government’s directive forcing dozens of carriers to commence processing of passenger flight procedures from the new facility.

    But, the hurried arrangement  has not been without the anticipated hiccups as passengers continue to lament harrowing experiences using the new facility.

    FAAN had in a notice informed passengers that flights precessing had moved from the old terminal to the new facility, urging them to leave their places of abode at least three hours before their departure time to complete check-in and other procedures in  time.

    This arrangement has not gone down well with many passengers, who have raised concerns over the failure of the airport to ramp up its facilities ahead of the anticipated surge.

    Before the recalibrated passenger facilitation procedure, only six  carriers – Air Peace,  Qatar Airways,  ASKY Airlines,  South African Airways and African World Airlines  (AWA) – were processing flights from the new terminal.

    The new terminal has not been put to optimal use because of inadequate space to construct avio-bridges that could accommodate bigger aircraft.

    Despite the obvious error in construction design in putting in place such a modern facility without consideration for avio- bridges for wide-body aircraft, the Minister of Aviation and Aerospace Development Mr Festus Keyamo said plans were afoot to procure shuttle buses that would convey passengers from the new facility to board at the airside.

    The Minister recently said: “We have to find a way to use the new terminal. Like in many other countries, we have to get emergency procurement to buy big buses and move passengers to where the big planes can stop for both arrivals and departures so that Nigerians can have some form of comfort.

    “The long-term plan is that, we are going to find a way to build avio-bridges for the big aircraft coming in and that means some of those private hangars will have to go for public purpose, we have to relocate them so that we can have a beautiful, functional gateway to Nigeria.”

    Read Also: Nigeria eyes $40b airports’ digital advertising value chain

    To drive this however, British Airways, Virgin Atlantic Airways, KLM/Air France,  Lufthansa German Airlines,  Ethiopian Airlines, Egypt Air. Royal Air Maroc, Air Cote D’Ivoire, Rwand Air, Delta Airlines and others last week commenced processing of passenger at the new terminal.

    While many industry watchers described the relocation as good,  others said the government needed to put some things in place before implementing the directive.

     The former President, Aviation Safety Round Table Initiative  (ASRTI), Dr Gbenga Olowo commended the Federal Government for the development,  but urged the Federal Government to move regional flights from the Murtala Muhammed International Airport to the Murtala Muhammed Airport Terminal Two  (MMA2).

    Olowo said Keyamo’s directive was appropriate.

    But an industry player, who pleaded not to named in print, said the absence of buses to connect passengers from the local to the international terminal could stall the proposal.

    Worried over the development, the Federal Government set up a task force to address challenges arising from the relocation.

    To lead the task force, the government selected Hassan Musa, a retired permanent secretary and former Director, Air Transport Management; Adebayo Oladipo, the General Manager, Aerodrome, Nigerian Civil Aviation Authority (NCAA);   three Special Assistants to the Minister of Aviation and Aerospace Development, namely, Mr. Collins Mukoro, Mrs. Uyoyou Edhekpo, and Mr. Henry Agbebire.

    It would be recalled that during Minister’s inspection of the Lagos Airport last week, he had given October 1 as deadline for the movement.

    However, the management of FAAN altered it when the fire broke out. It, however, pleaded for the public’s understanding of the situation.

     “The statement reads: “We urge passengers and other stakeholders to be patient and bear with us as the inconvenience caused will soon be resolved. Your understanding plays a vital role in making this transition smoother for everyone involved.

    “The primary objective of this task force is threefold, namely, to resolve passenger Concerns. The task force will work diligently towards resolving all concerns raised by passengers regarding congestion, discomfort, and related issues stemming from terminal relocation.

     “We are committed to ensuring that every passenger’s voice is heard and addressed promptly.

     The task force is also to work minimise discomfort: Our focus dwells on minimising any form of discomfort during this transition period. Efforts will be made in streamlining processes at both terminals while closely monitoring operations 24/7. Measures such as enhanced signage, dedicated support staff, improved communication channels will be implemented proactively.

     “Effective Public Communication: We pledge transparency throughout this process by providing regular updates on progress made in addressing concerns arising from airline relocations. FAAN aims at improving public relations strategies through various channels including online platforms and customer service helplines so that you stay informed about developments firsthand.

     “The Minister, however, extends his deepest regrets over the inconvenience caused and assures all travellers that we are fully committed to resolving these concerns promptly.

     “We pledge our commitment to passenger comfort, safety, and overall satisfaction during this transitional period.”

      There have been complaints of passengers missing their flights because of hitches in check-in, among others.

     Investigations indicate that many passengers missed their connection flights as the majority of the airlines left Lagos late, including British Airways, Air France KLM and Qatar Airways, which left four hours beyond their schedule.

     An airline official described the situation as chaotic because the new terminal had not seen  such upsurge in passenger movement to the extent that travellers found it difficult to identify the check-in counters of their airlines.

    There was also baggage belt malfunctions at the new terminal, which exacerbated the challenge.Though  the new terminal has state-of-the-art facilities, it is smaller than the old terminal tiriggering congestion, forcing passengers to spill outside the terminal. Travellers with big luggage found it difficult to move their luggage to the checking, a source said.

    Also, the facility has only one main entrance gate and passengers have to use escalator to climb to departures, which made movement sluggish, especially during peak hours.

    An official of the airport authority said: “The airlines actually knew what to do but the terminal was small compared to the old one and that is  what made passenger processing difficult, as check in took longer time and some passengers found it difficult to locate their airlines.

     “It was difficult for passengers that have many luggage because they have to wait for the lift but those with lighter bags use the elevator. But things got better at getting better, we hope it will continue to improve.”

    An official of a foreign carrier,  who declined to named in print, called on the Federal Government to address the challenges emanating from the use of the new terminal comprehensively.

     The official said: “The main issues are:  space constraint. The terminal does not have the capacity to accommodate the number of passengers that they’re forcing into space.”

  • Growing concerns over declining rice production

    Growing concerns over declining rice production

    Food security is essentially defined as the state in which all essential food staples, particularly rice, are accessible and affordable. Rice used to be the cheapest dietary staple, often labelled as the sustenance of the masses. However, in recent times, the cost of rice has soared to an extent where it’s no longer associated with just the poor, as general scarcity of food has become widespread. This crisis is exacerbated by various detrimental factors affecting the agricultural sector, including stiff competition from inexpensive imports, adverse impacts of climate change, and lack of mechanised farming. Rice yields remain notably low while its supply chain faces a fresh threat from perennial shortage of paddy, DANIEL ESSIET reports

    There are rising concerns over the inability of Nigeria to retain its position as Africa’s largest rice producer. This is because farmers struggle to produce enough to meet the needs of Nigerians. According to research by Statista, rice production in Nigeria amounted to around 8.3 million metric tons in 2021, making the country the leading rice producer in Africa. 

    Indeed, the industry has experienced rounds of good planting and harvesting from quite a lot of paddies in the past years, with attractive market prices encouraging farmers to increase rice acreage. Following this, rice production in Nigeria increased from 325,000 tons in 1969 to 5.1 million metric tons in 2019; growing at an average annual rate of 8.76 per cent. This is according to data from the Food and Agriculture Organisation (FAO). In spite of this, rice prices have soared in almost 23 years as a result of insecurity and dry weather that threaten production. The combined effects of climate change, conflicts and economic shocks have pushed rice prices upwards, leaving millions of people extremely vulnerable as a result of low purchasing power. The consequences of surging rice prices have made it become a daily struggle to put enough nutritious food on the table.

    Timeline of increment in rice prices

    There has been a massive rise in the price of rice from about N8,500 per bag of 50 kilogrammes in 2015 to roughly N45,000 per bag this year. Analysts are already predicting that a bag of rice could hit N60,000 next month. In 2000, a 50kg bag of rice averaged ?2,500. In 2014, according to the National Bureau of Statistics, a 50kg bag of rice averaged ?10,000. At the end of June 2020, a 50kg bag of rice cost ?26,000.

     Ordinarily, the rising price should get more farmers to expand planting areas to make more money. However, the President of the Young Rice Farmers’ Association of Nigeria, Rotimi Williams, told The Nation that, while higher grain prices should encourage rice producers, the costs of key inputs to boost rice yields have been on the rise. This is besides extreme weather that has affected cropping patterns. Williams has had to spend thousands on different fertiliser, diesel and water, among others to produce rice on a paddy.

     Sometimes, he and other rice farmers have been constrained by droughts and heavy rains which flood the fields. His concern is that the threat to rice production also comes at a time when the country is already grappling with soaring food costs. The Flour Milling Association of Nigeria Agronomist, Ahmed Tijani, said farmers in the Northern Nigeria were experiencing unprecedented changes in rainfall patterns, droughts and extreme heat. According to analysts, increased demand and supply gaps can lead to high rice prices in the medium and long-term periods.

     According to the President of the Federation of Agricultural Commodity Association of Nigeria (FACAN), Dr. Victor Iyama, there ought to be multiple strategies introduced to achieve specific self-sufficiency targets.  This, he indicated, should prompt the re-evaluation of existing policies to provide high priority for the development of the agricultural sector, especially rice and other staple foods. Therefore, the government should continue to strengthen the rice sector through various initiatives and strategies, where the key focus is on the improvement of research and development of existing infrastructure to boost rice yield.

    Read Also: Sahara Group calls for price differentiation for gas exports

    Stakeholders proffer solutions

    The Group Chief Executive of AFEX Commodities Limited and past Chairman of Smallholder and Agri-SME Finance and Investment Network (SAFIN), Ayodeji Balogun, believes that only increased private sector engagement in rice farming and staple foods reserve systems can support the government effort to ensure food supply chains. According to him, the introduction of the warehouse receipts system, which his organisation is driving, would help to mitigate the shortage of working capital loans faced by rice processors, wholesalers and retailers.

     Nigeria now accounts for 70 per cent of Africa’s milled rice production growth over the past decade. Milled rice production was estimated at five million metric tons last year. Analysts expected it to grow at 10 per cent by 2025. This notwithstanding, the quantity of unprocessed rice produced outnumbered that of milled rice. As elsewhere, the persistently high cost of transportation has pushed up production expenses beyond expectations. Farmers attributed the price hike to an increase in transportation costs after the removal of the fuel subsidy on May 29 2023; coupled with the escalating expenses associated with acquiring foreign exchange.

     Explaining the increase in rice price, the President of the All Farmers’ Association of Nigeria (AFAN), Ibrahim Kabiru, said the high price of inputs such as seed, fertilisers and other chemical inputs such as herbicides, labour and transportation costs for moving the commodity from the farm to the processing mills have been some of the major challenges responsible for hike in price. Due to transportation hikes along the production routes, smallholder farmers have struggled to increase production in a cost-effective manner with the key inputs continuing to rise. The result is a shortage of rice, even for rice processors and millers.

     The impact has been massive with stakeholders identifying insufficient supply of rice as the major factor responsible for the high cost of local rice. Another contributing factor to the hike in prices of rice is insecurity; local producers have been scaling down production while local traders are holding onto their stocks. This coincides with the lean months of July and August when there were less harvest. Stakeholders have also identified insufficient paddy rice and poor irrigation as another factor hindering all-year-round farming. Rice millers have attributed the hike in rice prices to the scarcity of paddy in the open market.

     The report reveals that many rice mills have been forced to shut down operations due to paddy scarcity and the high cost of production. In response to this, the Chairman of the Northern Chamber of Commerce, Industry, Mines and Agriculture, Alhaji Dalhatu Abubakar, alerted that scarcity of raw materials is forcing millers to shut down operations. He explained that the implication of scarcity of paddy was the current increase in the price of parboiled rice, which, he noted, would further increase the activities of smugglers. He expressed his fear that food insecurity might reach its worst level in the country if the scarcity of paddy, a major raw material for the production of finished rice persists. Abubakar stressed that several millers had cut down production hours from 24 to 12, even as they sacked factory workers.

     Williams also attributed the scarcity to insecurity issues that have been forcing many farmers to abandon their farmlands. He further linked the scarcity to the coup in the Niger Republic, which, he noted, had put a halt to the importation of paddy from countries within the West African sub-region. Sadly, the report said mills have been receiving wet paddy to enable them to meet up with market demands.

    Interested parties express fear about food crisis

    While rice-producing states such as Kebbi and Jigawa have become beehives of activities as millers were rushing to access paddy, the price has jumped to more than N450,000 per ton for the paddy with moisture. A ton in early June 2023 was sold at N330,000. Analysts fear a possible food crisis as a bunch of problems threaten to disrupt the supply of paddy.

    Experts say that if Nigeria fails to introduce a proper action plan to tackle the paddy shortage, the situation could become disastrous. The low output, according to them, may cause further upward pressure on inflation and downward pressure on the economy. As rice is one of the country’s staple foods, it points to further pressure on a country already struggling with its worst economic crisis in modern times, including runaway inflation and growing levels of malnutrition. Analysts are worried that a drop in rice production will complicate the country’s inflation fight.

     Following the Federal Government’s ban on importation of rice in 2019, the Republic of Niger has banned the re-­exportation of rice from the country. The Nigerian government closed some of its borders to prevent the smuggling of banned goods into the country. This, however, didn’t stop traders from neighbouring countries from using the Niger Border to smuggle imported white and parboiled rice into Nigeria. The closure of the border months ago was a mixed fortune for the smugglers who smuggle rice and other items into Nigeria.

    Eko Rice as elixir?

     Lagos State invested in the construction of a 32-metric-ton-per-hour rice mill, with the hope that it will produce 115,200 metric tons of milled rice yearly. At the beginning of the year, the state launched Eko Rice in various sizes, including 50kg bags. So far, the supply of paddy has affected the rice processing at the facility.

     On why there is scarcity of Eko Rice, the immediate Special Adviser to the Governor on Agriculture and Rice Mill Initiative, Mr Oluwarotimi Fashola, said: “The problem now is the challenge of paddy supply. Everybody knows that there is no paddy in the market. Eko Rice has been in the market since January. It has been sold in commercial quantities since the beginning of the year. We are in August; it has been in the market since January.”

     Early this year, the Lagos State Government said it would need about N100 billion annually to purchase paddy for the Imota Rice Mill in the Ikorodu area of the metropolis. Fashola said this huge amount of money might not be taken from the government’s coffers because of other items begging for attention, but the capital market would be a good avenue to source such funds. According to him, this is why the state government has agreed to partner with the Lagos Commodities and Future Exchange (LCFE) and other key capital market operators to provide sustainable finance to the commodities ecosystem through the generation of tradable financial instruments.

     Fashola said: “Imota Mill will require over 200,000 tons of paddies annually. It is not cheap. In Nigeria as of today, that is going into almost N100 billion, and N100billion of taxpayers’ money being taken from the government funds will not be the easiest to do in any financial year. However, with the partnership with the commodities exchange, we can maintain the flow of paddy to the mill. If the mill continues to run, we have a comparative advantage of having a good price, and at the same time, the finished rice becomes available in the market.”

     According to analysts, one of the key challenges the mill will be grappling with is raw material, paddy rice to service the mill. Without enough supply of paddy to feed it, analysts believe the facility is going to be underutilised, which will lead to waste. They urged Lagos to concentrate more on how to directly get the raw materials, not contracting it to other states, which have their own problems. They cited the logistics to bring the paddy rice to Lagos from other states which will push up the cost.

     In response, the government has empowered about 800 rice farmers to grow more paddy rice. The immediate State Commissioner for Agriculture, Ms Abisola Olusanya, explained that the state government’s strategic intervention was informed by the need to boost activities of rice farmers in the state. “It is expected that if these farming techniques are adopted by the farmers in the next planting season, it will result in an increase in paddy production to an expected average yield of four tons per hour,” she said.

    Continuing, she said: “Due to the fact that the state has limited agricultural cultivable land area, and with the increasing rate of small and large-scale rice mills across the country, there is a strain on the state getting a constant supply of paddy to feed the mill. The government has trained rice farmers in Ikorodu, Epe, Badagry, Gboyinbo, Idena, Obada, ItoIkin, and Ise to bridge the rice demand deficit of residents and the Federal Government’s current ban on rice importation.”

    The threat of drought

    Any prolonged drought may lead to a shortage in rice supply if adaptation methods to raise production are not taken. Several state governments have initiated plans to introduce drought-resistant seeds. However, the seeds can be costly for poor farmers to access. Internationally, several factors are contributing to the steep rise in rice prices. These include drought and other bad weather. Many rice farmers are turning to more lucrative cash crops; hence reducing the quantity of land devoted to production of the grain.