The Nation Newspaper

Category: Special Report

  • Niger coup: Jigawa, Katsina border towns grapple with starvation, stagnation

    Niger coup: Jigawa, Katsina border towns grapple with starvation, stagnation

    Several communities on the Nigeria-Niger Republic border are currently gripped by uncertainty and fear of imminent war, with unbridled starvation and deprivation staring the residents in the face. In this report, AUGUSTINE OKEZIE and AHMED RUFA’I examine the dire situations in some of these communities

    Already, the border communities have begun to experience severe hardships because of the economic sanctions imposed on the Niger junta by the Economic Community of West African States (ECOWAS) leaders. Movements across the borders and within the communities have remained grounded to a halt, even as socio-economic activities and Cross-border trades, among others have been paralysed; with trade and commerce the worst hit.

     Our correspondent who visited the border towns of Magama Jibia, Dankama and so on, reports that the people living in those areas are perpetually in fear of the unknown, and are experiencing starvation as well as crippled economic activities. Disenchanted by the development, residents of the Jibia-Magama Border Community in Katsina State have decried the decision of ECOWAS leaders to invade Niger to restore democracy.

     According to them, the shutdown of the border has crippled their socio-economic activities in the area, making the youth jobless and encouraging street begging as the best option to survive the hardship. The resolution by the ECOWAS leaders has affected the livelihood of the Jibia-Magama Border communities; with many of them living in doubt of what may happen in future.

     The Nation also observed that the Jibia-Magama Border has been shut down and that no vehicular movement is allowed in or out of the area, while several trucks were seen parked along the roads. According to our correspondent, individuals were seen on foot crossing to a nearby town to attend a local market in Dan Isah Community in the Nigerien territory. Also, local traders have devised means to manoeuvre their way into local markets to buy and sell just to survive the hardship caused by the border closure and fuel subsidy removal that has skyrocketed prices of commodities.

     Although security operatives have mounted roadblocks on some of the illegal routes to check the excess of such movement, people still find their way into the communities and hinterlands because they can’t withstand the indescribable hardship. Alhaji Abubakar Magama, a resident in the local hinterlands told The Nation that they are not happy with the decision to close the border, which has rendered their youths jobless and terrified, causing hatred between them and the neighbouring Nigerien citizens.

    He said: “We don’t know anything about subsidy before except now. All we knew then was that Nigeria had available cheap foodstuff, but the reverse is the case. No Nigeria can boast of eating one square meal a day or feed a visitor because of the hardship we face.

    “The closure of the border has made things more difficult for us. We want the government to tell us if we are part of Nigeria or Niger Republic?”

     Currently, a dark cloud of war is gathering over the Niger Republic. This followed growing chances that the armies of the ECOWAS member states might invade the Niger Republic soon. The current situation is sending shivers down the spines of many Nigerians living in communities along the Niger border. They are, indeed, apprehensive that if ECOWAS goes ahead to declare war on Niger, they too would be gravely affected.

     According to them, going to war against Niger is needless; even as they maintained that Nigeriens are not just their neighbours, but also their brothers. Therefore, any war in Niger, they said, is akin to war against them because they share not only boundaries with them but also cultural and socio-economic ties. Instead, they advised ECOWAS  to employ dialogue in resolving whatever issues they had with the junta that ousted President Bazoum.

     The Niger challenge began on July 26, 2023, when the world woke up to the news of a military takeover led by a certain Abdourahamane Tchiani. The Army General sacked the country’s constitutionally elected President, Bazoum, and has placed him under house arrest since then. Since the Niger crisis began, ECOWAS, under the chairmanship of President Bola Ahmed Tinubu has been voicing its displeasure at the development, stating that it would have none of the coup plotters’ acts. It wants Gen. Tchiani to stand down and hand power back to Bazoum.

    Read Also; PEPC: Why Atiku, Obi may fail on appeal by Clarke

     But that is a tale the Tchiani team and a cross-section of Nigeriens don’t want to listen to. So, they have remained unyielding. Left to them, ECOWAS’ demands were merely gaseous. Therefore, at the moment, the Nigerien coup plotters are resisting ECOWAS and calling their bluff. They have even called out the vocal ones among them to first remove the timber in their own eyes before turning to Niger.

     Earlier, the ultimatum ECOWAS handed down to the new Nigerien military authorities to hand over power had ended without any impact. “They are calling on the governments of ECOWAS member states to avoid war between the Niger Republic and ECOWAS which will have detrimental effects on both sides who are brothers.”

     Nigeria Customs and border communities

    The Nation recalled that at a recent visit to Jibia Magma Border Town in Katsina State, the Acting Comptroller General of Nigeria Customs Service (NCS), Bashiru Adewale Adeniyi vowed to enforce the official directive of President Tinubu regarding the closure of Nigeria–Niger Border in compliance with ECOWAS mandate. Adeniyi, who began the unscheduled visit at Illela in Sokoto State and arrived at the Customs Border Station, Magama – Jibia, Katsina State, told reporters at a stakeholders’ meeting at the event that his men will comply with the Federal Government’s directive on the total blockade of Niger Border with an unwavering mission in mind which is to help secure peace, security, trade and good governance across the African sub–region. The Customs boss further vowed in a speech that the operatives of the Customs and other sister agencies would keep the Nigeria–Niger Border closed down as ECOWAS and other world leaders push for the return of democratic governance in the French-speaking neighbouring country.

     In an impassioned address made against the backdrop of Tinubu’s recent emergence as ECOWAS Chairman barely weeks after his inauguration as Nigerian President, Adeniyi described Tinubu as not only an asset to ECOWAS’ quest for free movement of goods, trade and people across the sub–regional body but also a testament to the ECOWAS leader’s enduring commitment to trade and commerce. The Acting CGC, after addressing members of Jibia stakeholders and reporters further commended the total blockade of all border posts and other entry or exit points in the affected states until another directive to reopen the border is given.

     He was accompanied on the tour by top brass of the service, including the Katsina Customs Area Comptroller, Mohammed Nurudeen Musa. The major impediment to the enforcement of the Presidential directive however, as envisaged by opinion moulders in the state remains the perennial misunderstandings and clashes between men of the Nigerian Customs Service and their host communities at the border areas which had often hindered the implementation of government economic policies and programmes.

     Most political and economic watchers in Katsina State strongly believe that the successful enforcement of the Federal Government’s directives and policies, including the present one, requires cordial bipartisan relationship among the Nigerian Customs Services, the host communities and the businessmen that ply the routes. Meanwhile, the Katsina State Governor, Mallam Dikko Radda has expressed concern over the poor relationship between personnel of the Nigeria Customs Service (NCS) and the Jibia business community. He urged them to harmonise their economic partnership for economic growth in the border area.

     At a town hall meeting with the Jibia business community and Nigerian Customs to renew efforts in ensuring sustainable peace in the area, the governor urged the Customs Service to ensure more surveillance on the border between the Magamar Jibiya-Niger, instead of focusing on Katsina-Jibia Road where the movement of goods is mainly for local consumption. The governor also pleaded with traditional rulers, members of the business community as well and security personnel in the area to work together to ensure peace and harmonious co-existence in Jibia and its environment. Jibia has been a border town between Nigeria and Niger Republic and it has experienced a series of misunderstandings between the Nigeria Customs and the business community that often resulted in loss of lives while chasing smugglers along the area.

    Customs boss seeks cooperation of border communities during visit to Katsina

    The Acting CGC assured that the decision to close the borders was a temporary measure taken in response to current events in Niger. He emphasised that the closure affects multiple borders within the ECOWAS region and that the Nigeria Customs Service will work to sensitise the affected communities to the reasons behind the decision. Responding, the Katsina State Deputy Governor, Farouk Lawal expressed his support and congratulated the Acting CGC on his appointment, wishing him a successful tenure.

     During the visit, the Acting CGC also assessed the level of compliance with the border closure order at the Customs Katsina-Jibia Outstation. He interacted with the residents of the border area and stakeholders, urging officers to sensitise the communities to the rationale behind the closure. The stakeholders present at the meeting assured the CGC of their compliance and support throughout his tenure, as they understand the importance of maintaining a stable and secure atmosphere for meaningful economic development in the country.

    Katsina residents condemn war with Niger

    In Katsina State, Nigeria shares two prominent border posts with the Niger Republic, namely Jibia in Jibia Local Government Area and Kongalam in Mai’Adua Local Government Area. The two border posts exclude several other illegal routes designated through which residents of the border communities conduct their social and economic activities.

     Several Nigerians living at the borders do not envisage any ECOWAS war with the Niger Republic. “There isn’t going to be any war,” Umar Sale, a resident of Jibia told The Nation during a chat. This is because we are brothers and sisters with our neighbours in Niger Republic.”

    Apprehension among residents of Dan Isa, Jibia

    Despite the aura of mixed optimism in Katsina, not a few residents of Dan Isa, a semi-urban settlement near Jibia have remained apprehensive several weeks after the military putsch in Niger Republic as well as the threats of an imminent war. Most shops in the area have been shut, businesses grounded for lack of goods because of the closure of the borders.

     “If there is war, we are likely going to suffer some of the effects,” Saidu Mohammed, a resident said. Mohammed also feared that “this is a border town which Nigerian troops will go through to prosecute the war. And the ones from Niger Republic will also come here; then we will be caught in the middle.”

    ‘Nothing can separate us from the Nigeriens’

    However, despite that economic activities are grinding to a halt along the Nigeria-Niger Republic border due to the sanctions imposed on the military junta by ECOWAS, smuggling activities have surged at an alarming rate. This illicit trade involves numerous parties from both the formal and informal sectors. The situation in the border communities of Jigawa State, situated between Nigeria and Niger, is particularly dire. Virtually no one has been spared from the adverse consequences of the border closure and the sanctions imposed on Niger Republic as a result of the military coup in the country.

     Women, children, youth, and men are already experiencing the repercussions of these sanctions, with hundreds of them losing their jobs and sources of livelihood. The Niger military junta has significantly bolstered security along their border, preparing for any potential ground attack from ECOWAS and aiming to prevent any crossings into their country. Meanwhile, Nigerian security forces have closed the main border entry points and conducted round-the-clock patrols on pedestrian routes to ensure that neither goods nor people pass through.

    The border communities around Maigatari and Babura in Jigawa State view the sanctions on Niger as a collective punishment, as they consider the people of Niger to be their blood brothers, business associates, and good neighbours. They have also voiced strong opposition to ECOWAS’s threat of using military force to reinstate a constitutional government in Niger, deeming it illogical and unnecessary. “If ECOWAS used military force against the juntas, it would be a single action with too many unending consequences and we would be the first casualties,” said border communities.

    The local population is deeply concerned about the potential prolongation of the situation, fearing it could lead to an increase in criminal and terrorist activities in the area. They are particularly worried about their young men, who, due to losing their businesses as a result of the sanctions, might be tempted to join such groups. There’s also apprehension about the influx of weapons, akin to what occurred in Libya and Afghanistan. The imagined border between Nigeria and Niger is incredibly porous. These communities share virtually everything in common, including farmlands, markets, intermarriage, culture, tribe, and religion. Some communities even have their graveyards on the Niger side, and vice-versa.

     As the situation intensifies, it has become apparent that the local population is increasingly involved in smuggling activities. The secretary of the association of cattle sellers Maigatari Market, Alhaji Muhammad Duwa said the removal of fuel subsidy has affected their business and now with this crisis and the subsequent sanction imposed on Niger Republic, everything has been crippled in their market and the area.

     “Today we are no longer what we were in the past; the sanction has disconnected us from our main business partners. Niger people brought livestock to our market and in retune they buy foodstuffs and other essential commodities from us, but the sanction has completely cut off the transaction. We are all in a critical situation. Anything affecting Niger affects Nigeria; they are suffering from sanctions as it is biting harder on us. We are calling on the Nigerian President to put the interest of Nigeria first before that of ECOWAS. He should not allow the use of military power, because Nigeria will suffer the consequences more than any other West African country. What the Niger military did is wrong, and I am sure they have no peace of mind now; so let us not repeat the same mistakes by using military force to crash them. This will not solve the problems,” Duwa stated.

     Ali Dan’uku, a commercial truck driver residing in Maigatari Town in Maigatari Local Government Area of Jigawa State revealed that he and his four children relied on the truck as their primary source of livelihood. However, with the sanctions imposed on Niger Republic, they have all become redundant, and the routes they have traversed for over 15 years are now closed. He explained, “I have only ever visited Kano and Kaduna states in Nigeria, but there isn’t a single state in Niger Republic where I haven’t delivered goods. Our border communities have stronger commercial ties with Niger than with Nigeria.

     In Babura, the hometown of the Defence Minister, Alhaji Mohammed Badaru Abubakar, the local people expressed concerns about the actions of the federal government. They called on the federal government to reconsider its decision without further delay. Those who spoke to our reporter emphasised that they did not support the military junta in Niger, but they were more concerned about their social and economic lives, as well as the well-being of ordinary people in the Niger Republic who were also suffering due to the sanctions. Reports from the area indicate that smuggling activities are on the rise, with many people engaging in this illegal trade either because their legitimate businesses were affected by the sanctions or because smuggling has become more lucrative.

     Another individual, one of the motorcyclists involved in the smuggling operation, volunteered to speak to our reporter but requested not to have his name or picture published. He said: “Frankly speaking, we are pleased with the current situation. It has relieved us of the hardships we endured due to the fuel subsidy removal, which caused serious difficulties. Before this, many of us couldn’t afford to eat three meals a day. Sometimes, not even one meal every day, and we barely made ends meet. With the current development, we are now able to buy enough food for our families and even save some.”

  • Malnutrition: Stakeholders call for more robust food fortification laws

    Malnutrition: Stakeholders call for more robust food fortification laws

    Nutrition plays a pivotal role in bolstering productivity and fostering economic prosperity. Nevertheless, the escalating rates of malnutrition and micronutrient deficiencies within Nigeria are raising concerns about their potential to undermine productivity and jeopardise the nation’s economy. In response to these concerns, a collaborative roundtable event hosted by the Civil Society Legislative Advocacy Center (CISLAC), the Nigerian Economic Summit Group (NESG), and E-Health Africa convened stakeholders. Their collective call to action implored the government to vigorously enforce food fortification policies through legislation, with the aim of reversing this troubling trend. Associate Editor ADEKUNLE YUSUF reports

    As far as public gatherings go, this particular meeting stood out as a resounding success in terms of attendance. All attendees, evidently impassioned, echoed a singular sentiment: bolstering nutrition holds the key to lowering the societal disease burden. An equally pressing need was underscored – the imperative of disseminating awareness regarding the significance of food fortification, a catalyst that could stimulate demand for fortified food products to the advantage of the entire populace.

    Convened as a follow-up to a recent event on the issue, this meeting drew assembly of key stakeholders. Among the participants were representatives from health and food regulatory bodies, legislators, nutrition experts, prominent food producers, civil society organisations, and a cadre of journalists hailing from diverse media outlets who dissected the issues under the theme, “Fortifying Nigeria’s Future: Interface Session with Stakeholders (State and Non-state Actors) Towards Promoting Fortification Compliance and Workforce Nutrition.” The venue was the Mariott Hotel, nestled in the heart of Ikeja, the capital of Lagos State, where stakeholders undertook a comprehensive evaluation of the progress achieved thus far, identified the prevailing challenges, and collectively crafted a comprehensive communiqué delineating their observations and recommendations.

    Fueled by a growing concern over malnutrition’s debilitating impact on Nigerians, particularly the youth and the nation as a whole, the Civil Society Legislative Advocacy Centre (CISLAC), in collaboration with the Nigerian Economic Summit Group (NESG) and e-Health Africa, organised the roundtable to sound a wake-up call to Nigeria’s policymakers about the country’s deteriorating malnutrition crisis. According to organisers of the event, the primary objective was to heighten awareness surrounding the imperative of fortification compliance and bolstering workforce nutrition in Nigeria. It was driven by a shared belief between the organisers and the media that endorsing healthier dietary practices can play a pivotal role in shaping public opinion and catalysing policy transformations conducive to food fortification and enhanced nutrition standards in Nigeria.

    In his inaugural address, the Executive Director of CISLAC, Auwal Musa Rafsanjani, emphasised that Nigeria currently grapples with a severe nutrition crisis. This crisis forms the backdrop against which the organisers’ intervention must be understood, as they advocate for food fortification as a potent means to elevate nutrition standards, invigorate public health, and enhance the nation’s overall prosperity. In his address, Rafsanjani revisited a concern he had expressed back in May this year by drawing the participants’ attention to the persistent and severe nutrition crisis that Nigeria, as a nation, continues to grapple with. This crisis, he stressed, underscored the urgent need for the intervention advocated by the organisers: the adoption of food fortification as a proven strategy for enhancing not only nutrition and health but also the nation’s overall prosperity.

    Read Also: Nigeria recorded surge in malnutrition cases in last five years, says USAID

    Citing data from the National Demographic and Health Survey (NDHS) for 2022, Rafsanjani highlighted some alarming statistics. He noted that 44.1% of children under the age of 5 in Nigeria were stunted, signifying chronic malnutrition. Although this figure represented a slight decrease from 46.0% in 2018, it remained unacceptably high and raised concerns about long-term health and developmental repercussions. Additionally, he pointed out that 20.3% of children under 5 were wasted, indicating acute malnutrition—a life-threatening condition. Furthermore, the NDHS reported that 18.7% of Nigerian adults were overweight, with 4.4% classified as obese. These rates had increased from 17.4% and 3.4%, respectively, in 2018. Rafsanjani emphasised that overweight and obesity were significant risk factors for chronic diseases such as heart disease, stroke, type 2 diabetes, and certain types of cancer. He asserted that addressing these health challenges necessitated effective and sustainable food fortification compliance and workforce nutrition initiatives in Nigeria.

     Rafsanjani underscored the importance of organisations taking workforce nutrition seriously to enhance their employees’ productivity through the implementation of relevant measures. He advocated for food fortification as the established path forward, characterising it as a simple, cost-effective intervention for incorporating essential nutrients into commonly consumed foods among large populations. He also pointed out that the Nigerian government had developed regulations and mandatory food fortification policies in 2009 and 2019, respectively. These policies aimed to promote food fortification and were overseen by three key agencies—NAFDAC, FCCPC, and SON— all represented at the event. Rafsanjani acknowledged the agencies’ efforts in implementing and monitoring compliance with these policies, highlighting that more progress needs to be made.

     According to him, food fortification is a proven way to improve nutrition and health as it prevents micronutrient deficiencies, such as anemia, vitamin A deficiency, and iodine deficiency. Although adults spend more than half of their active hours of the day at work, the workforce is vulnerable to malnutrition, he added. “Workers who are not getting the nutrients they need are more likely to be sick, less productive.  This can have a significant impact on the economy. To ensure a healthy workforce, he suggested that employers should provide their workers with the nutrients they need, as fortification can help to reduce absenteeism, increase productivity, and improve safety.”

     He appealed to the media to help in raising awareness of the importance of food fortification and workforce nutrition as the media plays a critical role in shaping public opinion and influencing policies, adding that by focusing on the issue, the media could attract the attention of policymakers to it and save millions of Nigerian children from the pangs and pains of malnutrition. Given the persistent challenge of malnutrition, the interface session became essential for organisers and participants to collectively brainstorm on further steps. This was despite the government’s endeavours to achieve a well-nourished population through regulatory and mandatory food fortification policies. In closing, Rafsanjani issued a rallying cry: “We need to work together to ensure that all mandatory food vehicles (local and imported) sold in Nigeria are fortified with essential vitamins and minerals. We have a number of challenges to overcome, but I am confident that we can achieve this goal if we work together.”

     During the Interface Session facilitated by Senator Ibrahim Yahaya Oloriegbe, Health System Consultant and immediate Past Chairman Senate Committee on Health, various speakers and stakeholders addressed critical issues related to food fortification and workforce nutrition. Goodwill messages were delivered by Mr. Laoye Jaiyeola, the CEO of NESG; Dr. Michael Ojo, Country Director of GAIN; House of Representatives members Dennis Idahosa and Amos Magaji; and Mr. John Uruakpa from the Federal Ministry of Health. Presentations centered on the monitoring of compliance, the status of food fortification, and challenges faced by regulators. Representatives from key agencies such as the National Agency for Food and Drug Administration and Control (NAFDAC), the Standard Organisation of Nigeria (SON), and the Federal Competition and Consumer Protection Commission (FCCPC) shared their insights. In addition, Toju Ogele, the Programme Manager of E-Health Africa, delivered a presentation on data from other studies regarding the status of fortification compliance.

     Senator Oloriegbe highlighted the direct relationship between proper nutrition and optimal productivity, asserting that the nation’s economic prosperity hinged on addressing this issue. He called on the media to fulfill its role as an “opinion moulder” by actively seeking information and knowledge on nutrition, advocating for improved nutrition practices, and disseminating information to the public. He defined nutrition as the science of food in relation to health and malnutrition as the absence of proper nutrition. He underscored that the nation had reached a crucial juncture where enacting a law to enforce compliance with food fortification policies and urging companies in the sector to prioritise effective workforce nutrition programs was imperative.

     He further explained, “You may have food but cannot eat, and you can eat but have no food to eat. If you consume food that your body cannot process, it is essentially equivalent to being susceptible to malnutrition. We need legislation that obliges nutritional companies to provide nutrition for their workforce because currently, it is optional. Such a law should mandate compliance with food fortification and the promotion of workforce nutrition in Nigeria.”

    Oloriegbe stressed the interconnectedness of various aspects of nutrition, including the health of pregnant women and infants, and the well-being of the workforce. He expressed concern over the more than two million malnourished children under the age of five in Nigeria and called for swift action from the government and all stakeholders in the food and fortification sector to address this issue. He also advocated for the right to proper food intake among workers in the food and fortification industry, emphasising that individuals without access to good nutrition were more prone to illness and unproductivity.

     In his address, Magaji, Chairman of the House of Reps Committee on Health Institutions, emphasised the importance of political will in enforcing food fortification and workforce nutrition policies. He advocated for legislation to ensure compliance and urged authorities to prioritise the health of the Nigerian population and the nation’s economic development; while Idahosa, Chairman of the House of Reps Committee on Healthcare Services, stressed the need to raise awareness about food fortification and its benefits, with a focus on generating demand for fortified food products. He highlighted that the challenge was not a lack of work plans or laws but the need to strengthen regulations for enforcement.

     For Uruakpa, Director of Micronutrient Deficiency Control at the Federal Ministry of Health, there is compliance at the regulatory level, but issues usually arise when products reach the market. He noted that some industries cut corners, and effective monitoring and enforcement were essential. Mr. Jaiyeola, CEO of NESG, emphasised the importance of nutrition-sensitive policies and programs to address malnutrition’s underlying determinants, including poverty and food insecurity. He stressed the need to improve access to high-quality diets, such as fortified food products, to enhance immune functions and cognitive skills.

     The Country Director of GAIN, Dr. Ojo, discussed the organisation’s efforts over its 21-year history to combat malnutrition, acknowledging the existence of a comprehensive national food fortification programme but noted that it could be more effective in delivering micronutrients to vulnerable populations. He highlighted that the programme could be improved to the point where consumers do not need to question whether their food is fortified. If all commonly consumed foods are fortified as required, the system will naturally deliver the necessary micronutrients to the population.

     “We have inspired wider national and global action by influencing government policies with evidence and learning from practice. We have catalysed alliances and facilitated public and private sector engagements and investments in the transformation of food systems so that they deliver healthier diets, especially for the most vulnerable. GAIN has evolved its work in Nigeria over the years. We started life in Nigeria firmly focussed on Large-scale Food Fortification (LSFF) – a proven, cost-effective, and scalable intervention to deliver essential nutrients to people through commonly consumed staples and condiments.

     “However, as our understanding of the drivers of malnutrition evolved, we have engaged more and more with tackling the root cause of all forms of malnutrition – diets (or unhealthy diets) – by focussing on food systems and how they can be transformed. In spite of that evolution, LSFF still remains a significant part of our work in Nigeria. We have a comprehensive and mature national food fortification programme that is subscribed to by the private sector, largely understood by the population, with established regulatory structures and oversight with SON, NAFDAC and FCCPC.

     “But there is a gap. The programme is not as effective as we would expect to be in delivering micronutrients to vulnerable population. The good thing about LSFF, if done properly, is that people don’t even need to think about whether the food is fortified. These are foods that people commonly consume (wheat, maize, oil, salt, sugar, etc). If all food is fortified as they should, the system simply delivers the micronutrients! We have done fantastically well with iodine deficiency. But we know that deficiencies of vitamin A, B-vitamins, zinc and iron remain at alarming levels in some of the critical populations – children under 5, adolescents and Women of Reproductive Age (WRA).

     “We have a few beacon companies performing extremely well. There are many others however who are not complying, and by so doing, securing undue advantage over those that comply but more importantly shortchanging Nigerians by delivering supposedly fortified foods without the fortification or at lower levels than required. Another reason is that regulatory oversight is not as rigorous as it should be, just as there are unnecessary overlaps in responsibilities, which places undue burdens on business and reduces the overall effectiveness of regulation.”

  • Tinubu: Tackling challenges of first 100 days

    Tinubu: Tackling challenges of first 100 days

    Much was expected of President Bola Tinubu, following his inauguration on May 29. How has he been able to grapple with the mounting challenges? Deputy Editor EMMANUEL OLADESU examines the steps taken so far by the administration to fulfil its campaign promises in the last 100 days.

    The first 100 days have been devoted to laying a strong, solid and sound foundation by President Bola Tinubu,  who is conscious of the enormity of challenges and weight of responsibility on the shoulder of his young administration.

    Nigerians are in a hurry. They want quick solutions to pressing issues that have confronted the country for decades. They want magic from the three-month old administration. Thus, there is gap between expectation and reality.

    It has been a learning process for an outstanding politician and statesman, whose last outing as an elected public officer at the cenre was 30 years ago, when he was just settling down as a senator.

    Certain right steps have been taken to advance the cause of democracy and good governance by the President. Not unexpectedly, some avoidable mistakes may have been made. But, generally, the administration has been bold and courageous to take decisive steps, thereby stepping on some toes.

    Power did not land on the palm of Asiwaju Tinubu on a platter of gold. Neither did he inherit an economically buoyant country. He had inherited a country on the edge, which should be pulled from the brink it had been boxed by some inactions of preceding regimes and unresolved challenges of insecurity, economic quagmire, depleting foreign reserve, soaring national debt, outstanding labour disputes and disunity in the country.

    In a bid to bridge the loopholes and checkmate revenue loss due to fuel subsidy, the Federal Government drew the curtains on the regime of subsidy. The measure, which was grossly misunderstood, has unleashed temporarily hardship which the umbrella labour union, the representative of less than 10 percent of the entire population, has amplified as a prelude to an unwarranted strike.

    The highlights of activities in the first 100 days include the inauguration of the President, where he reiterated in his inaugural speech his patriotic duty of fostering national unity, salvaging the economy and restoring security.

    The President and Commander-in-Chief of the Armed Forces, Tinubu, took the mantle from his predecessor, Muhammadu Buhari, at the Eagle Square in Abuja, the Federal Capital Territory (FCT), on May 29.

    It was an impressive ceremony witnessed by statesmen, diplomats and other world figures. But the euphoria quickly gave way for serious work.

    Obviously, President Tinubu applied for a tedious job, which has taxed his competence and experience as a patriot, democrat and strategist.

    Read Also: I will not fail Nigerians – Tinubu

    Adorning his characteristic national outlook, the president assured the people of inclusiveness. “I will be president of all,” he said, adding: “Whether from the winding creeks of the Niger Delta, the vastness of the northern savannah, the boardrooms of Lagos, the bustling capital of Abuja, or the busy markets of Onitsha, you are all my people. As your president, I shall serve with prejudice toward none, but compassion and amity towards all.”

    Consistent with his campaign promises, Tinubu laid out some programmes he would pursue in the maiden address to the nation. He spoke on his plans for the economy; business and foreign exchange; agriculture, jobs, power supply, security and, the matter of the moment -fuel subsidy removal.

    The president, in the speech titled: ‘A new deal for Nigeria,’ described the peaceful transfer of power as an evidence of political stability, which he would build upon. He paid tribute to his predecessor, Buhari, saying that history will be kind to him.

    Conscious of the nature of Nigeria, particularly its cleavages, he promised to unify. The country is big and there are peculiarities dictated by its ethnic composition. Therefore, in utter sensitivity to these differences, Tinubu promised to consult widely, mend fences, pursue a healing process, and foster good governance based on the rule of law.

    Shortly after the change of baton, it was reported that intense bargain-hunting for Nigerian equity rallied the stock market to a net capital gain of N1.51 trillion, its highest in a day in two and half years. The Naira was also said to have recorded a marginal gain while the benchmark index for the stock market, the All Share Index (ASI), posted an average return of 5.23 per cent, its highest gain since November, last year. It has paled into artificial growth.

    During the campaigns, Tinubu, like his rivals-Atiku Abubakar of the Peoples Democratic Party (PDP) and Peter Obi of the Labour Party(LP)-had alerted Nigerians that his administration will halt fuel subsidy. In fact, Buhari had set May as the terminal date for the regime of subsidy that had only benefitted few rich Nigerians. Reiterating his determination to do away with subsidy, Tinubu said “subsidy is gone.”

    Mixed reactions have trailed the announcement. It provoked a national debate. Some stakeholders were not comfortable with the manner of announcement. Others said there was nothing wrong with the emphasis, so that Nigerians could embrace the reality.

    The president received the applause of economic experts. But, the pronouncement was trailed by uproar among workers and the masses. The attempt to resist the removal began instantly. Unpatriotic petrol dealers deliberately hoarded fuel to inflict pain on innocent Nigerians. Loading of product temporarily stopped at depots. The price of fuel also went up. Many feared the impact on vulnerable members of the society.

    Today, petrol pump price is between N573,000 and N600,000. It has led to high cost of living

     But, justifying the removal, Tinubu said fuel subsidy has increasingly favoured the rich more than the poor, adding that it can no longer justify its ever-increasing costs in the wake of drying resources.”

    On the gains of subsidy removal, which all and not few will enjoy, the president said: “We shall instead re-channel the funds into better investment in public infrastructure, education, health care and jobs that will materially improve the lives of millions.”

    Unlike his predecessors, Tinubu broke with the tradition of instant announcements of appointments, particularly of immediate aides, including the Chief of Staff, Secretary to Government of the Federation (SGF), and media aides. The delayed appointments gave room for speculations. Some people invaded the unregulated social media with fake news, lying that certain persons had been appointed as aides.

    Also, analysts chided the president, saying that he could not really hit the ground running.

    But the effect was felt. As the controversy over fuel subsidy persisted, there was no official aide on ground until Tinubu’s Special Adviser during the campaigns, Mr. Dele Alake, who later became Special Adviser on Information,  Strategy and Special Duties, and much later, Minister of Solid Minerals Development, came on air to make certain clarifications. Later, Group Managing Director of the Nigeria National Petroleum Corporation (NNPC) explained to reporters in Abuja that the removal was non-negotiable, if Nigeria was to be pulled back from bankruptcy. He said the Federal Government owed NNPCL N2.8 trillion – being money spent on subsidy.

    On Friday June 3, President Tinubu made some appointments.  In a statement by the Director of Information, Aso Villa, Abiodun Oladunjoye, he appointed House of Representatives Speaker Femi Gbajabiamila as Chief of Staff, Senator Hassan Hadejia, former Deputy Governor of Jigawa State, as Deputy Chief of Staff, and George Akume, former Minister of Special Duties and governor of Benue State as Secretary to Government of the Federation.

    Later, the list of some aides were leaked to the media. However, the announcement of a chief media aide was delayed. Much later, Ajuri Ngelale was named Special Adviser to President on Information and Strategy.

    A day after his inauguration, Tinubu resumed office in Aso Villa. Vice President Shettima, who had resumed earlier on that day, led the Villa Staff and security men to welcome him.

    During the first week, the presided waded into the face-off between the Economic and Financial Crimes Commission (EFCC) and the Department of State Services (DSS) over the disputed Ikoyi office. He instantly directed DSS operatives to vacate the disputed office immediately.

    On Thursday of his first week in office, the president met with the Progressive Governors’s Forum, led by Imo State Governor Hope Uzodinma. It was at the meeting that concensus was proposed for the election of National Assembly presiding and principal officers.

    On Friday, three prominent PDP stalwarts, Oyo State Governor Makinde, former Rivers State Governor, Nyesom Wike, and ex-Delta State Governor, James Ibori, visited the president. Details of their discussion were unknown.

    As the president settled down, the case arising from the February 25 poll began at the tribunal. It is noteworthy that the litigation has not been a distraction. The counsel to Tinubu is led by Chief Wole Olanipekun (SAN). In the court of public opinion, the president has also condistently defended himself, insisting that he won in a poll that was substantially free and fair.

    But, President Tinubu has had to contend with threats of strike by Labour over the high cost of fuel due to subsidy removal. The patten of threats paled, in part, to war mongering and underscored the style of current union leadership, particularly its aloofness to regular dialogue and inclination towards showmanship. On June 5, reason prevailed and the Nigeria Labour Congress (NLC) suspended its strike. This week, the nation has another warning strike to contend with on the same vexed issue.

    Tinubu, who is national leader of the ruling All Progressives Congress (APC) has not abandoned party affairs. In the interest of proper synergy between the Executive and Legislature, the party brokered a deal for consensus candidacy for National Assembly presiding and principal officers. That led to the emergence of Chief Godswill Akpabio as Senate President and Tajudeen Abbas as House of Representatives Speaker. So far, relations between the two organs of government have been cordial. There is collaboration that is not targeted at tampering with the principle of separation of powers and its accompanying checks and balances.

    Also, following consultations with the APC governors, the National Executive Committee (NEC) of the party approved the nomination of Alhaji Abdullahi Ganduje and Senator Ajibola Basiru as national chairman and national secretary, following the resignation of Senator Abdullahi Adamu and Senator Iyiola Omisore.

    On June 8, President Tinubu met with governors and emphasised that they should work together to promote federalism and national unity. This is significant. He acted from the vantage point of experience, having been oppressed before by federal might when he was governor of Lagos State.

    On June 10, Central Bank Governor Godwin Emefiele was suspended by the president. He is currently facing charges for alleged money laundering and terror financing. His deputy, Folasodun Sonubi, was appointed as acting governor.

    In his first June 12 message to the nation, President Tinubu, a chieftain of the National Democratic Coalition (NADECO), urged Nigerians to rise in defense of democracy. He also promised judicial reforms.

    The presidential searchlight was beamed on the Economic and Financial Crimes Commission (EFCC). Its chairman, Abdulrasheed Bawa was detained after his indefinite suspension. Many Nigerians have criticised his continued detention without trial.

    In June, the Federal Government put the proposed census on hold, saying that it is not feasible this year.

    Critical appointments made by the President included those of Mallam Nuhu Ribadu(National Security Adviser), Kayode Egbetokun (Police Inspector General), Gen. Taoreed Lagbaja (Chief of Army Staff), Real Admiral Emmanuel Ogalla (Chief of Naval Staff), and Air Vice Marshall Hassan Abubakar.

    For tertiary students, the president unfolded student loans aimed at aiding indigent students. It is not grant, but money that will be paid once they start working. But, academic unions look forward to the resolution of issues that have led to the disruption of the academic calendar.

    President Tinubu’s handling of foreign relations has been commended, although observers expressed reservation about his hasty proposal of military action for the resolution of the Niger mess.

    As Chairman of the Authority of Economic Community of West African States (ECOWAS), he has become a curator for democracy. But it is gratifying that the Senate rejected the Federal Government’s plan for military action and called for a political solution. The dialogue process is still on.

    The President was at New Global Financing Pact Summit in Paris, France in June. When he returned to Nigeria, he headed to Lagos, his cradle, where he met leaders of the APC family. Hosted by Governor Babajide Sanwo-Olu,  his predecessors-Babatunde Fashola and Akinwunmi Ambode-were present.

    The following week, the Federal Government directed that the plan for electricity tariff hike should be postponed.

    The report of the 50-member European Union Observer Group on the 2023 poll was rejected. Many Nigerians believe that 50 observers were inadequate to really monitor the exercise across 36 states and Federal Capital Territory (CT).

    The economy has received greater attention. To ease hardship, regimes of tax were suspended in critical sectors, including telecommunications. Also, the Federal Government announced subsidy palliatives-12 million poor households are to get $800 million cash, and N8,000 per family for six months.

    More relief packages were released to cushion subsidy pain. These include N75 billion for 75 big enterprises, N225 billion for medium and small scale enterprises and 200,000 metric tonnes of grains to households across 36 states.

    Many have hailed the administration over the reforms aimed at ending the yearly loss of N20 trillion to tax evasion and weavers.

    The disclosure of N1.83 trillion as subsidy windfall in two months has also elicited commendation.

    If the loopholes are bridged and more money saved, government will have more resources for great capital projects.

    President Tinubu went to Kenya for the fifth African Union mid-year coordination meeting in Nairob, where he urged African leaders to uphold democracy and stand firm against coups.

    On July 19, N1.959 trillion allocation was shared to federal, states and local governments by the Federation Account Allocation Committee (FAAC).

    On July 28, Tinubu announced the appointment of the first batch of ministers. Before the announcement, he had hired special advisers, few of who later made the ministerial list. The second list of ministers was released on August 3.

    The ministerial list met the criteria of gender balance and youth inclusion, geographical spread, religious and ethnic balancing. It was a blend of politicians and technocrats. The ministers parade intimidating credentials.

    That Gbajabiamila, Olubunmi Tunji-Ojo and Dave Umahi, who were members of the National Assembly, have moved to the executive organ means that the electoral commission will later conduct by-election to fill the vacancies.

    Before their swearing in, portfolios were assigned to the nominees after the screening hurdles. But, some critics complained that it took Tinubu almost three months to appoint ministers, despite his promise to hit the ground running.

    But, certain processes were not tidy. Strange names appeared on the ministerial list. It caused commotion in Kano, where former Governor Ganduje, said the woman picked from the state was not a popular choice. She was eventually dropped after she had passed through screening.

    Due diligence was also absent in the nomination of Mallam Nosiru El-Rufai and Mrs Stella Okotete, who were not confirmed by the Senate.

    Appointments could have been more tidier. The reversals conveyed an impression of non-acclamatisation.

    Criticisms trailed the reassignment of portfolios to ministers, barely a week. To some, the president may have approved the swap to avert some future problems. To others, the reversal meant that the president did not do his scrutiny of some of the nominees very well. There were allegations of undue manipulation and shoddy politics surrounding the inclusion of certain nominees on the list. It is debatable.

    The controversy over whether a youth corps member, Hannatu Musawa, can be Arts and Culture minister has fizzled out.

    But, last week, there was a row over the composition of Niger Delta Development Commission (NDDC) board. Following protests, two names were dropped.

  • Renewed hope and commonsense revolution 

    Renewed hope and commonsense revolution 

    GBADE OGUNWALE reviews the first 100 days of President Bola Tinubu’s assumption of office and the expectations of Nigerians

    President Bola Tinubu was sworn-in as President and Commander-In-Chief of the Armed Forces on May 29, 2023. He has spent 100 days in office. The “100th Day In Office” was coined by President, Franklin Delano Roosevelt who served as the 32nd American President from 1933 until his death in 1945. Roosevelt’s 100th day in office fell on June 12. Yes. June 12 of 1933. It’s a mere coincidence of dates with 50 years interval. But the date – June 12 of 1983, still rings loudly in Nigeria’s checkered democratic journey. Roosevelt, in a radio broadcast to mark his 100 days in office, had sounded rather reflective: “We all wanted the opportunity of a little quiet thought to examine and assimilate in a mental picture the crowding events of the hundred days which had been devoted to the starting of the wheels of the New Deal”, he had said in his opening address. That fabled 90-year-old tradition, which was a creation of Roosevelt’s imaginative mind, has retained a symbolic significance across lands and climes to date. The period is now considered a benchmark for assessing salient actions and decisions taken by an incumbent President. For President Tinubu, this is no time for trumpet blowing neither is it for rolling out the drums in celebration. Rather, it’s time for deep reflections on the state of the nation at the time he took the reins of leadership and what the picture looks like 100 days into his tenure. Tinubu was a national leader of the All Progressives Congress (APC), then in opposition. He had lamented the grim state of affairs in the country way back in 2015 under the watch of PDP’s Dr Goodluck Jonathan. The Jagaban had

    offered a cocktail of recipes on the way forward in an address he delivered at the 7th Annual Bola Tinubu Colloquium at Eko Hotel, Lagos on March 25, 2015. That historic address, entitled; Common Sense Revolution: The People’s Time Has Come, has, ironically, become a reference material for his own administration. It will also remain a reference material for politics and governance in decades to come. The situation in the country today calls for critical ruminations over the prescriptions offered by Tinubu in his 2015 document. Alas, the grim situation over which Tinubu lamented at the time, is today, far grimmer than it was then. The then opposition leader had stuck out his neck and reputation for then candidate Muhammadu Buhari of the APC. Unfortunately, Buhari, through his many acts of commission and omission, ended up driving the country almost to a point if no return in his eight years as President. Not a few event watchers believe that the former Lagos State Governor deliberately foisted a Faustian  bargain on the nation with that choice. However, many others believe that he made a pig in the poke purchase. The preponderant opinion, is that he staked his bet on the wrong horse. And the country is back to the starting point. This piece shall focus mainly on the theme of Tinubu’s 2015 document, which has turned out to be more relevant today than it was at the time.

    Hear him: “Common Sense Revolution speaks to the need to elect patriotic leaders that can give hope to our best aspirations as a nation and people. It speaks to how we must elect thinkers and doers to work together to bring about a beautiful revival of the national spirit and the good fortune of the people.

    “It takes us to a place where luck, good or otherwise, is insufficient. We must move forward with conviction, courage and creativity to mould a better nation out of the clay we now hold in our hands.

    Read Also: I will not fail Nigerians – Tinubu

    “We must bring forth relief to the hard-pressed among us. For example, we have to finally end the sad chapter that Boko Haram has written in our history.

    “We must fight them boldly yet wisely. We must rebuild the afflicted areas in a way that extremism may never take root again. If this requires revamping our fighting forces, so be it. A few “Buhari Battalions” and “Osinbajo Brigades” (now Tinubu’s battalions and Shettima’s battalions) will do in months what the whole of Jonathan’s army could not do in six years. 

    “Some say we need a Marshall Plan to rebuild the region. They are correct in approach but mistaken in name. We shall establish a “Buhari/Osinbajo Plan” (now Tinubu/Shettima Plan) and it will work.

    “There is too much poverty in the land. We need a government that will improve the social safety net to help those who, through no fault of their own, cannot help themselves.

    “Pay the pensioner! Feed the hungry and care for the sickly! And improve the nutritional values of our school children. We will domesticate this economy to bring about recovery.

    …”Our APC Government will use its fiscal and monetary space to jumpstart the economy. Economic history tells us that countercyclical policy is the best remedy to what we face. To the present (past) government, such talk is revolutionary. To me, it is common sense.

    “Last, we must reform governance. Opaque budgets must be made transparent. NNPC, which today makes more money than we are told and other revenue-making bodies will not maintain two sets of books, one for public consumption and a secret one to show where the money really went. 20 billion dollars – enough to fund government for a year – shall no longer disappear as if by magic!

    “We fight no one and hate no one. We are all Nigerians. However, some things we do to each other must stop. We are better than how we seem and how the nation now performs. We must commit ourselves to our better nature that we may enjoy a better nation. This does not require any special genius. All it requires is the common sense to recognise we share a common fate and destiny. In your hands and actions lies so much of my future and in my hands, lies much of yours.

    …”The only violence that is to be done is to violence, injustice and poverty themselves.

    “At its essence, a common sense revolution is a call to return to a level of decency in the relationship between government and the governed, between each one of us and his neighbour.

    “This implies that the society in which we live is a far distance from the society that should exist. A revolution in mind, spirit and action is needed to close this gap between what is today and what ought to be.

    …”Briefly, these are the tenets of a common sense revolution. We need this bold approach because too much has gone wrong for too long.

    “Now is the appointed time to rise up and work together to build a new country. A new day for a better Nigeria is possible”. These are some key excerpts from that timeless document”. Quite a brilliant exposé.

    Now it’s time for President Tinubu to wholly own the concept, words and letters of his common sense revolution. Now, the cobbler has taken hold of the last. President Tinubu now has the opportunity to steer his brand of revolution in a direction he believes it should go.

    Tinubu’s policy actions and decisions so far, seem to resonate with his avowed governance perspectives. With a single whiff, he outlawed the Frankenstein monster called petrol subsidy minutes after his inauguration on May 29. It was followed by the abolishment of the dual exchange rate regime. This has led to the floating of the Naira and merging the exchange rate market. Then the suspension of the almighty erstwhile “sole proprietor” of the Central Bank of Nigeria (CBN), Godwin Emefiele. Meffy’s iniquitous policy choices damaged the nation’s monetary system for nine years. Emefiele has since been holding useful discussions with government investigators and security agencies over his stewardship as CBN Governor. The President has issued four Executive Orders guiding operations in the business and financial sector. They are: The Finance Act (Effective Date Variation) Order, 2023, which has now deferred the commencement date of the changes contained in the Act from May 28, 2023 to September 1, 2023. This is to ensure adherence to the 90-day minimum advance notice for tax changes as contained in the 2017 National Tax Policy; The Customs, Excise Tariff (Variation) Amendment Order, 2023. This has also shifted the commencement date of the tax changes from March 27, 2023 to August 1, 2023 and also in line with the National Tax Policy: An Order suspending the five percent Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products; Suspension of the newly introduced Green Tax by way of Excise Tax on Single Use Plastics, including plastic containers and bottles; and Order suspending Import Tax Adjustment levy on certain vehicles, to create a business-friendly environment. The President, on July 13, declared a state of emergency on food security with immediate effect. By this, all matters pertaining to food and water availability and affordability, as essential livelihood items, have been brought within the purview of the National Security Council. On July 20, the National Economic Council (NEC), rolled out palliative plans to cushion the effects of subsidy removal on Nigerians. Part of the plans was a N5 billion grant to each of the 36 states and the Federal Capital Territory. So far, each state has received N2 billion of the sum. The package also includes cash award policy for civil servants, payment of outstanding liabilities to civil servants, special funding for the growth of the Micro, Small and Medium Enterprises (MSMEs). Also for immediate implementation is the Energy Transition Plan. This will see a shift from reliance on petrol to cheaper and more environment friendly Compressed Natural Gas (CNG). Eventual use of electric cars in not so distant future are also on the cards. On Tuesday, August 8, the President inaugurated the Presidential Committee on Fiscal Policy and Tax Reforms. The committee is charged with effective revenue generation strategy and raising the tax-to-GDP ratio from single digit, to above 18 percent in three years among other responsibilities. It is also charged with the job of freeing taxable Nigerians, especially low and middle income earners from the current suffocating multiple tax regime. The committee, headed by a taxation expert, Taiwo Oyedele has already hit the ground running. However, Nigerians still look up to their President for effective policy changes in the nation’s oil sector. Many believe that the government should let go of the nation’s four moribund refineries and take steps to recover the billions of dollars purported to have been spent on them by successive administrations. More importantly, Nigerians expect the Tinubu administration to urgently work towards local refining and end the shame of petrol importation. According to village analysts, it amounts to collective foolishness explaining to Mama Vero that her community sells all its yam tubers to far flung communities only to turn around and buy pounded yam from the buyer communities at exorbitant prices. They ask if it is not foolisher explaining to the villagers that the reason for the kobo-wise-naira-foolish transactions, is that the community’s  mortar and pestle at home are broken beyond repairs. “Or how else does one explain the nonsense in the sense of our leaders who export crude oil and spend the proceeds on high-cost petrol imports”, asked a village analyst. In the Nigerian situation, no amount of palliatives can take the heavy yoke of high petrol prices off the people’s already bent shoulders while importation continued. Nigerians are looking up to their President to tackle this contradiction to drive home his common sense revolution.

    Indeed, this is quite a testy job for President Tinubu and his team of cabinet ministers, advisers and policy executors. For the President, it’s a job requiring a great deal of grit and guts. And gumption too. It also demands a blend of emotional intelligence and rational anger. The rules are quite straightforward. For him to succeed, he must attune himself to an impartial credo of no-friend-no-foe when dealing with observed cases of tardiness among his appointees. Whatever is sauce for a foe (if any) should also be sauce for a friend in equal measures.

    He must learn to imbibe the shrewd wit of the Jew and be able to dispense justice like Themis in matters affecting members of his team. The President must listen more to Nigerians than to his praise-singing party men and women who will always applaud even if their man commits murder. He must grow a skin thicker than the crocodile’s to enable him deflect descructive criticisms as they come. Tinubu must learn to be deaf to the hullabaloo of sniggering voices around his person and office. Those asking for sanits to lead them are looking in the wrong places. The President is no saint.

    He does not pretend to be one. The “saints” of his critics’ fantasies can be found only in cemeteries. This reality they choose to spurn. There is nowhere in the world where preferred “saintly” leaders are recruited from cemeteries. For all they care, Nigerians are more interested in a leader that can deliver on his mandate. A leader that can guarantee and protect their rights and human freedoms. A leader that can guarantee the security of their lives and property at all times. A President who will not discriminate against them on account of their ethnicity, religion or socioeconomic status. A leader with a free spirit that embraces  all without regards to race or creed. Nigerians, in their millions, will naturally go for a leader that shows a capacity to slake their hunger. Above all, the streets are more interested in having a leader that can turn their economic fortunes around for the better, even if his acronym sounds like the bat. Yes. BAT! Humans everywhere in the world, have their lives tied directly to the economy, private or public. This fact loudly resonates with James Carville’s 1992 famous quip: “It’s the economy, stupid”. Carville, a political strategist, had handled former US President Bill Clinton’s successful presidential campaign that eventually unhorsed then incumbent, George Bush. President Tinubu has just spent 100 days of a total of 1461 days he had in his first tenure. It’s just like yesterday. Ticktock, ticktock, ticktock…time is fast ticking for the remaining 1361 days. Can Mr President hear the sound of the clock? Time flies! 

  • Monotony of strike threats

    Monotony of strike threats

    Today, President Bola Tinubu is celebrating his first 100 days in office. The leadership of the Nigeria Labour Congress (NLC) has also chosen today to commence a two-day warning strike in preparation for a total shutdown of the economy, which will commence in 21 days.

    The NLC announced its decision to go on the two-day warning strike at the end of its National Executive Council meeting of the NLC, which was held in the early hours of Friday, September 1, 2023.

    A communiqué released by the NLC and jointly signed by its National President, Joe Ajaero, and Secretary, Emmanuel Ugboaja, said the decision followed the “failure of the Tinubu-led Federal Government to dialogue and engage stakeholders within the organised labour on efforts to cushion the effects of the removal of subsidy on Premium Motor Spirit (PMS) popularly known as petrol on the poor masses.”

    The organised labour had in August staged a one-day protest which grounded activities in major cities across the country. Experts believe that this renewed threat by labour to embark on a two-day warning strike will further impact negatively on the fragile economy and increase hardship on vulnerable Nigerians.

    The Federal Government had after that incident rolled out several palliative measures to cushion the biting effect of subsidy removal. It has rolled out various measures, including thousands of bags of rice, grants to businesses, N5billion subventions to the 36 states and Abuja, but the NLC remains unimpressed and unpacified.

    Beginning of FG/Labour dispute

    The relationship between the President Bola Tinubu-led Federal Government started on rocky note, even before the president entered the walls of the Presidential Villa. In fact, the turbulence erupted just minutes after the president took his oath of office and announced an end to the subsidy regime on petroleum products.

    On that sunny day of May 29, the President declared at the Eagle Square: “subsidy is gone” to signal the end of a regime many Nigerians believed had drained the country’s resources for decades. The declaration not only led to an increase in the pump price of petrol, but it opened a new front in the war between the government and organised labour in the country.

    Read Also: I will not fail Nigerians – Tinubu

    Many Nigerians, including Peter Obi, presidential candidate of the Labour Party in the February election, which the NLC supported, believed that it was time to end the subsidy regime that had only benefited a few rich individuals. The decision to remove the controversial subsidy regime was an albatross left behind by former President Muhammadu Buhari, who did not make provisions for the multi-billion-naira expenditure in the 2023 budget.

    The leadership of organised labour argued otherwise, citing its economic impact, especially on Nigerian workers. It was the view of the NLC that subsidy on petroleum products should remain until the federal government is able to fix and bring the nation’s moribund refineries back on stream. The hope that the much-touted Dangote Refinery would bridge some gaps in premium motor spirit (PMS) supply has not materialised with the firm missing the August date for its products to hit the market.

    Thus, it was no surprise that the labour centre commenced agitation once the president made the comment ending the fuel subsidy era without the local capacity of Nigeria to refine petroleum products. The labour union described the decision as “hasty” adding that the government didn’t “consult it and other critical stakeholders before the decision was made.”

    Strike threat

    The organised labour has since engaged in a war of words and shows of might to compel the government to rescind its decision. It cited the economic hardship that the move has unleashed on Nigerians due to galloping inflation sparked and rising transportation and other cost of living. 

    In its bid to avert a shutdown of the nation’s economy in June, the government rushed to court to obtain an order halting the planned strike. The presiding judge, Olufunke Anuwe, on 5 June, restrained the NLC and the Trade Union Congress of Nigeria (TUC) from embarking on the strike action that was slated to commence on 7 June.

    After initial concerns that the union would disobey the court order, it bowed to reason and shelved the strike. This paved the way for further negotiations with the government team led by the Chief of Staff to the President, Femi Gbajabiamila. The talks, which centered around how to ameliorate the impact of the policy, have failed to assuage the unions, which continue to push for return to the status-quo-ante in pump price.

    The NLC, again, renewed its threat to embark on strike, after a further hike in the price of petrol pump price occasioned by the failing Naira against other international currencies. Reacting to the threat, the Justice Ministry, on 26 July, warned the labour unions its planned strike would amount to contempt of court in view of the subsisting court order obtained in June.

    Nationwide protest/contempt of court suit

    Undeterred by the threat, the NLC, in collaboration with its affiliate unions and civil society allies on August 2 staged a one-day nationwide rally to protest the “biting hardship in the country.” They said talks with the government have not yielded any positive results.

    The protest, most remarkable in Lagos and Abuja, was in defiance to the Ministry of Justice stance, which then approached the industrial court to commence a contempt suit against the labour leaders that same day.

    On 3 August, the NLC issued a communique, suspending protests, citing the intervention of President Tinubu. It however condemned the contempt suit initiated against its leaders.

    FG terminates law suit

    To facilitate a return to the negation table, the government terminated the contempt suit. The withdrawal of the suit was one of the conditions given by the NLC in its communique issued on August 2 to avert an industrial action on August 14.

    The Solicitor-General of the Federation and Permanent Secretary, Federal Ministry of Justice, Beatrice Jedy-Agba, had said the action violated the 5 June order of the National Industrial Court in Abuja, which, according to her, barred the organised labour from embarking on any form of “industrial action.”

    However, in announcing the termination of the contempt suit, Mrs Jedy-Agba cited the intervention of President Tinubu in a letter addressed to the lawyer to NLC, Femi Falana.

     “Upon the intervention of His Excellency, President Bola Ahmed Tinubu and the decision of the labour unions to call-off their industrial action after meetings with the President and leadership of the National Assembly, this Ministry did not proceed further with the contempt proceedings, which would have required the issuance of Form 49 within two days of the issuance of Form 48.

     “It is self-evident that the non-issuance of Form 49 as of 4th August 2023, renders the contempt proceedings inchoate. You may therefore wish to advise or guide the labour unions on the practice and procedure of contempt proceedings, particularly to the effect that the issues or concerns raised by NLC in its communique on the proceedings, have been overtaken by events,” Mrs Jedy-Agba’s letter to Mr Falana read in part.

     ‘Why we resorted to contempt suit’

    But in the letter terminating the contempt suit, Mrs Jedy-Agba said her ministry initiated the contempt proceeding because of “the need to safeguard the integrity of the court and prevent avoidable service disruption or damages to public facilities.”

    She remarked that the organised labour, despite the correspondences she had exchanged with their lawyer, had gone ahead with the protest, causing disruption of work and destroying the gate of the National Assembly in Abuja

     “The foregoing prompted the Ministry to initiate contempt proceedings by filing Form 48 on the same 2nd August 2023 in accordance with Section 72 of the Sheriffs and Civil Process Act and Order 9 Rule 13 of the Judgement (Enforcement) Rules. It is trite that issuance of Form 48 is just the starting point in contempt proceedings which will only crystallise upon the issuance of Form 49 and the consequential committal order,” she wrote.

    Renewed strike notice

    Despite having a “fruitful discussion” with President Tinubu on August 2, where the president made some commitment, the NLC has once again renewed its threat to commence a strike on Tuesday.

    While listing some of the other reasons why it would mobilise its members for the nationwide shut-down, the centre accused the police of laying siege to the national headquarters of the National Union of Road Transport Workers, alleged exploitation of the rights of workers in Imo State, interference in trade union matters by the Abia State Government, proposed demolition by the new minister of the Federal Capital Territory, Nyesom Wike, among others.

    On the resolutions it took, the NLC NEC resolved, “To embark on a total and indefinite shutdown of the nation within 14 working days or 21 days from today until steps are taken by the government to address the excruciating mass suffering and impoverishment being experienced around the country.

     “To commence a two-day nationwide warning strike on Tuesday and Wednesday, the 5th and 6th of September, 2023, to demonstrate our readiness for the indefinite strike later in the month and to also demand that the state vacates the illegally occupied National Headquarters of the National Union of Road Transport Workers.

     “To embark on a mass protest and rally in Imo State within this month of September 2023 in preparation for a major shutdown of the state to compel the state government to stop the abuse and violation of the rights and privileges of workers and trade unions in the state.

     “To begin the shutdown of the operations of Air Peace Airline and other companies in the aviation sector that are involved in serial violation of the rights of workers in the sector.

     “To call on communities around the nation to stop taking laws into their hands but report to the authorities for amicable resolution any matter involving members of the Amalgamated Union of Food Stuffs and Cattle Dealers of Nigeria which is one of our affiliates.

     “To demand that the new Minister of the Federal Capital Territory desist from threatening poor masses in the FCT with demolition of their properties built from their years of toil but should focus more on making houses available to the people.”

    Can Lalong stop the strike?

    With organised labour mobilising its members for a showdown with the government, the focus has shifted to Minister of Labour and Employment, Simon Lalong on how he would handle the labour leaders.

    On assumption of office on August 21, Lalong pledged to resolve all pending labour disputes by working closely with the two labour centres – the NLC and the TUC.

    The minister also promised to address with strong determination the new minimum wage and other palliatives arising from the removal of fuel subsidy.

    He had said: “On the relationship with the organised Labour, the Government through the Ministry shall work closely with the NLC, TUC and their affiliates towards not only ensuring that all pending industrial disputes are settled amicably, but also addressing with strong determination the new minimum wage and other palliatives arising from the removal of fuel subsidy.

    “I use this opportunity to specially convey the appreciation of Mr. President to the organised labour and Nigerian workers in general for exercising tremendous understanding and patience with the current situation. The Government does not take this for granted and Mr. President has directed that we move on with negotiations to arrive at amicable resolutions that will make our workers overcome the current pains.”

    Will Lalong be able to stop the planned strike or will the government resort to another court order? Nigerians are watching.

  • Forces against manufacturing sector’s productivity, competitiveness

    Forces against manufacturing sector’s productivity, competitiveness

    Clobbered by lingering scarcity of Foreign Exchange (forex) and continuous depreciation of the Naira, which made the importation of critical input a nightmarish experience for manufacturers, the manufacturing sector’s performance in the first quarter of 2023 was everything but inspiring. Added to these, the nationwide cash crunch forced by the naira redesign policy and other familiar challenges, manufacturers literarily bled profusely in the quarter under review. To boost the sector’s productivity going forward, they are now calling for harmonisation of fiscal and monetary policies to pave the way for a stable macroeconomic environment. Assistant Editor CHIKODI OKEREOCHA reports.

    The real sector, particularly manufacturing, is widely acknowledged as the economy’s growth engine; because of its dominant transmission link to the overall economy, the manufacturing sector is credited with having the greatest capacity to create jobs, revive the economy by contributing immensely to the Gross Domestic Product (GDP) and also setting the path to inclusive and sustainable development.

     Sadly, however, efforts to rev that engine of economic growth and ultimately, unleash its capacity to offer these mouth-watering deliverables have continued to be undermined by Nigeria’s unstable macroeconomic environment, resulting, predictably, in the poor and uninspiring showing of key manufacturing indicators in successive quarters.

     Unsurprisingly, virtually all the key performance indicators of the manufacturing sector including capacity utilisation, production and distribution cost, volume of production, investment, employment, sales volume cost of shipment and others remained troubled in the First Quarter of 2023 (Q1 2023).

     The protracted nationwide cash crunch foisted on various economic actors following the implementation of the Central Bank of Nigeria (CBN) currency redesign policy in the first quarter of the year also contributed largely to the manufacturing sector’s underperformance.

     The protracted cash crunch caused by the policy, which the Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said was “a consequence of huge capacity gaps in monetary policy formulation and management,” forced many operators in the informal sector to shut down, with corresponding job losses in hundreds of thousands. Millions of Nigerians also slipped into penury.

    Manufacturers’ production and distribution costs also took the hit, escalating by 24 per cent in the quarter under review. This was much higher than the 19 per cent increase witnessed in the preceding quarter. Production volume also contracted by 13 per cent against the one per cent growth recorded in the previous quarter.

     Manufacturing investment dropped by three per cent in the first quarter of 2023, from a two per cent increase recorded in the preceding quarter that is Q4 2022. The same for manufacturing employment which reduced further by three per cent in the first quarter of 2023 from two per cent contraction recorded in the preceding quarter.

     Manufacturers’ sales volume also plummeted by 13 per cent against the stable record witnessed in the preceding quarter, while the cost of shipment rose by as much as 20 per cent in the first quarter of 2023.

     This was a slowdown from the 22 per cent increase recorded in Q4 2022.

     The aforementioned depressing figures were contained in the Manufacturers’ Association of Nigeria (MAN) Chief Executive Officers (CEO’s) Confidence Index (MCCI) for the First Quarter of 2023 released by MAN, last week and made available to The Nation.

     The MCCI is an index created by MAN to measure changes in the quarterly pulsation of manufacturing activities 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.

     The MCCI has a baseline index of 50 points, which suggests a stationary point in the economy. Therefore, any index point above 50 points indicates that manufacturers have confidence in the economy and improvement in manufacturing performance, while any index point below 50 points indicates otherwise.

     But as it turned out, the Index Score (IS) of MCCI declined to 54.1 points in the first quarter of 2023 from 55.0 points recorded in the fourth quarter of 2022.

     In other words, the Index Score (IS) of the first quarter of 2023 nosedived to 54.1 points, which is 0.9 points less than the 55.0 points recorded in the last quarter of 2022. Commenting on the MCCI Q1 2023 Report, the Director-General of MAN, Segun Ajayi-Kadir said although the quarter recorded marginal contraction in IS, the performance indicated that manufacturers maintained their confidence in the economy since the index remained above the 50-point benchmark.

    Read Also: LG poll: Outcome of results reaffirms PDP dominance in Edo, says Obaseki

    The MAN D-G, therefore, did not mince words when he said: “Tackling the challenges of the manufacturing sector must be at the front burner of the new administration. The President Bola Tinubu-led administration must exhibit his articulate reasoning and compassion to act differently by hitting the ground running with a value system that can rescue manufacturers from these inflictions.”

     He even put forward a number of recommendations, which, according to him, hold the prospect of rescuing the struggling manufacturing sector.

     Some of the recommendations include prioritising forex availability, and electricity supply to the industry, reducing the number of taxes payable by sectors, improving the availability of local raw materials, improving access to credit by industries, and stabilising the macro-economy, among others.

    How harsh macroeconomic environment hobbled manufacturers

     Interest rates charged to manufacturers by the commercial banks appeared to have undermined the sector’s productivity, with only 20.3 per cent of CEOs of manufacturing companies interviewed agreeing that bank lending rate improved in the first quarter of 2023 as against 30.4 per cent that agreed in the fourth quarter of 2022, for instance.

     The Nation also learnt that while credit to the public sector has soared over the years, credit support for the private sector in general and manufacturers in particular, has been abysmally low.

     Even when credit is available, it is usually on short-term tenure which does not adequately support the medium to long-term gestation required in the manufacturing sector.

     Indeed, the absence of economic infrastructure especially electricity supply contributes significantly to the high-cost operating environment which obstructs the development of manufacturing in Nigeria. Despite being a major component of successive administrations’ promise of economic prosperity for Nigerians, they have evidently failed to turn around the fortunes of the power sector.

     For instance, electricity distribution in Africa’s largest and most populous economy has continued to hover around 4,000 Megawatts (MW).

     Expectedly, this has been taking a huge toll on manufacturers and other business operators across sectors, manifesting in rising costs of production.

    While electricity takes only about 10 per cent of production cost in some other countries, it gulps between 40 and 50 per cent of Nigerian manufacturers’ cost of production, and this has forced many factories to curtail output or even shut down.

     MAN brought this reality nearer home when it lamented that as of the second half of 2022, manufacturers’ expenditure on alternative energy sources stood at N76.7 billion.

     According to the Association, the N76.7 billion spent on alternative energy sources increased from the N45.04 billion recorded in the corresponding half of 2021, indicating a N31.66 billion or 70 per cent increase over the period.

    It also increased by N8.9 billion or 13 per cent when compared with N67.8 billion was recorded in the preceding half.  A survey of the manufacturing sector by MAN for the second half of 2022 indicated that a huge expenditure was incurred on the procurement of diesel, gas, generators and spare parts, inverters and UPS, and others.

     As if this is not enough to strangulate manufacturers, their activities continued to suffer due to the persisting scarcity of forex and unfavourable Naira exchange rate parity. The lingering forex scarcity and continuous depreciation of the Naira have left manufacturers bleeding and limited their capacity utilisation.

    Operators rattled by multiple taxes, unfavourable policies, others

    In the quarter under review, multiple taxes, charges, and levies ranked top in order of severity of major challenges tossed on manufacturers’ paths. This was accordingly followed by inadequate power supply, low patronage/poor sales/low purchasing power, unavailability of raw materials/delay in receiving imported raw materials/high cost of raw materials and scarcity of forex/high exchange rate/poor allocation of forex.

    Nigeria’s bloated N77 trillion debt also

     It wasn’t for nothing that Nigeria’s rising debt profile was the special focus of the MCCI Q1 2023 Report. Titled “MAN at the Receiving End of National Debt Crisis,” MAN drew attention to the fact that in the absence of commensurate infrastructural development and significant success in poverty-reduction and industrialisation programmes, Nigeria’s debt profile, which has ballooned to over N77 trillion has become a source of worry.

     The Association said as of December 2022, the country’s total debt had escalated to N46.25 trillion, marking about a 17 per cent surge from the record of December 2021, noting that while domestic debt stock accounted for 59.6 per cent of the total debt, external debt stock contributed 40.4 per cent.

     MAN, however, said the country’s debt profile has ballooned to over N77 trillion following the approval of the securitisation of the Ways and Means advances.

    The Association expressed worries that the huge debt profile may leave the new administration to continue the borrowing spree or incapacitated to provide critical infrastructure needed to boost the manufacturing sector and kick-start the recovery of the economy.

     According to Ajayi-Kadir, rising domestic debt was highly crowding out private investment in the manufacturing sector by reducing credit availability and forcing a hike in lending rates.

    He also lamented that external debts were mostly serviced in foreign currencies; hence high demand for foreign currencies further depreciates the naira and makes the importation of non-locally produced critical inputs costly for manufacturers.

    Higher debt repayment requires increased revenue

      Ajayi-Kadir further said the government has continued to breed a harsh business environment by its indiscriminate imposition of high and multiple taxes on manufacturers, all in a bid to generate revenue. “A major point of reference is the recent exponential hike of the excise duties on beverage and tobacco goods,” he said.

     The MAN D-G also said huge public debt led to low foreign investment and foreign capital inflow which worsens the forex scarcity.

     The immediate past National President of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ide J. C. Udeagbala, could not agree less with Ajayi-Kadir on the need to widen the tax net as opposed to increasing taxes.

     Udeagbala counselled all levels of government, especially the legislative and the executive branches to consider other sources of funding, such as a preference for an increased tax base over increased taxes, and also leverage public-private partnerships for tax credits spread over time.

     He pointed out that while a pro-debt argument that Nigeria’s public debt is relatively sustainable at 25 per cent of her GDP, “it is now generally accepted that the current levels of debt service payments are considerably high and unsustainable given dwindling government revenues.”

     With regard to the lingering shortage of forex, the former NACCIMA boss said the government should look to non-traditional sources of forex such as foreign direct investment and remittances from Nigerians in the Diaspora.

     Members of the OPS and other businesses have also intensified their advocacy around the need for strict implementation of the Voluntary Assets and Income Declaration Scheme (VAIDS) through the Federal Inland Revenue Service (FIRS) including identifying and amending the loopholes in the country’s tax laws in order to reduce tax revenue leakages.

     Other recommendations put forward by operators include ensuring the rehabilitation of local refineries and removing the humongous annual subsidy in phases while ensuring they are backed with appropriate palliatives for households and businesses; ensuring proactive judicial investigation into allegations of oil theft and stamp duty fraud.

     They have also called on the government to embark on mechanisms that promote coordination and confidence among creditors in order to be granted the opportunity for debt restructuring; prioritise debt management and transparency to control risks and reduce the need for restructuring.

     Will the current administration, working with the OPS members particularly manufacturers, address the identified challenges holding the manufacturing sector down from living to its billing as the economy’s growth engine? Will it muster the necessary political will to implement recommendations tabled before it by industry operators and experts?

     While the administration may have put the right foot forward when, from the onset, it declared the obnoxious fuel subsidy regime over and also unified the exchange rates to allow the floating of the Naira, among other fiscal and monetary policy measures, the consensus of operators and experts in diverse sectors is that sustainability and diligent implementation are key to the success of the administration’s renewed push to remake the economy.

    Manufacturers’ Challenge                                                                                                    Ranking

    Multiple taxes/charges/levies/unfavourable government

    policies/same tax policy for local producers and importers                                                        1st

    Inadequate power supply/unstable power supply/frequent power outage                                 2nd

    Low patronage/poor sales/low purchasing power                                                                       3rd

    Unavailability of raw materials/delay in receiving imported raw materials/high

    cost of raw materials                                                                                                                 4th

    Scarcity of forex/high exchange rate/poor allocation of forex to the economy                             5th

    high cost of diesel/energy/gas                                                                                               6th

    High cost of production/high inflation/high operating cost                                                             7th

    Naira scarcity /cash crunch                                                                                                           8th

    Over-regulation by government  agencies                                                                                        9th

    High cost of transportation/high cost of logistics/increase in

    cost of distribution                                                                                                                  10th

    Foreign  competition/high importation                                                                                           11th

    Corruption                                                                                                                         12th

    Insecurity problem/political instability                                                                                   13th

    Gridlock at the national ports                                                                                                       14th

    High cost of credit/inadequacy of loanable funds                                                                           15th

    Shortage of skilled labour/moral value                                                                                            16th

    Poor road infrastructure / Multiple check point                                                                              17th

    Scarcity of genuine machine parts/high cost of maintaining machines                                         18th

    Production of sub-standard goods / smuggling                                                                           19th

    High inventory of unsold manufactured goods                                                                              20th

  • Residents at risk of epidemic as hawkers flood Lagos Island with contaminated water

    Residents at risk of epidemic as hawkers flood Lagos Island with contaminated water

    • Most labels on sachet, bottled water fraudulent – Nutritionist  

    • We’re already supplying potable water to parts of Lagos Island – LWC

    For ages, many parts of Lagos Island have lacked access to potable water in spite of being surrounded by the sea and the lagoon. Manufacturers of myriads of sachet and bottled water are said to be feasting on this by flooding the area with their products. Tanker drivers whose source of water and hygiene of their tanks cannot be ascertained are also not left out. They are all ‘cashing out’ on the communities where clean water is gold. Experts are of the view that water sold in the area should frequently be subjected to tests to save the people from being exposed to needless health crises, INNOCENT DURU reports.

    Bassey, a resident of Lagos Island has a challenge getting clean water from his borehole. The water from the borehole, like many others in the area, contains large quantity of iron. He cannot use it in its natural form for any of his domestic needs.

    After some time of growing grey hair over the challenge, he devised a means to get around the problem.

    Explaining the strategy that he adopted, Bassey said: “I have what I call a ground tank. I pump water into a ground tank and leave it for a day for it to settle.

    “When it settles, I will pump it into the tank at the top. With that, I would have clean water.

    “With that system in place, I have been able to live in the place for about eight years without having challenges with water.”

    Good as his strategy appears, Bassey can only use the water to cook. “I can’t drink it,” he said. “We take bottled water in the house to avoid water borne diseases.”

    But the bottled water brand that Bassey prides to be very safe may not be safe after all. A water facility operated by a woman suspected to be an agent of the manufacturer of the bottled water was recently found to be adulterating the product.

    She was said to be refilling dispenser bottles of the product with content from public sources.

    Lagos State officials who visited the facility on inspection mission discovered that there was no proper storage system for the water, adding that the products were also displayed outside in an unfavourable condition.

    Many of such adulterated packaged water are feared to have found their ways to the Island where clean water is a great treasure.

    “We really have a huge problem with clean water. At times, some water may be clean but it would not be drinkable. So, bottled water is what we consider as truly drinkable here,” Lizzy, another resident said.

    “We take bottled water in my house to stay away from water borne diseases, but the truth is that you don’t know how good the so-called bottled water is.

    “It is just that you at least have some hope that it is better than consuming the confirmed polluted groundwater.”

    Asked if she fears some top brands of bottled water could be adulterated, Lizzy said: “Nothing is impossible in Nigeria, especially here in Lagos. One cannot vouch for all these things they sell all over the place as safe bottled water.

    “It is just that many people believe that bottled water is rarely adulterated unlike pure water that anyone can do at the back of his house.

    “That is why you find that the bottle water business is thriving here.  Some people buy tens of packs to keep in their houses because the water they have in their houses is not drinkable.

    “Some are not even fit for cooking. They are only good for flushing the toilet and for some other uses.”

    Mike Owhoko, publisher of Media Issues, an online newspaper, in a recent write up, raised the alarm about how Lekki and its environs have been flooded with myriads of bottled and sachet water, some of which he said have predisposed the people to diseases.

    His words: “Lekki residents are exposed to water-related diseases engendered by sub-standard and unregulated sources of water supply.

    “Increasing cases of dysentery and diarrhoea-induced pathogenic bacteria infections have sparked concerns on public health in the area.

     “By Lekki, I mean the geographical area straddling between Tollgate and Victoria Garden City (VGC).

    “Despite its aquatic location bordered by the sea and the lagoon, clean water is hard to find due to its peculiar topography.”

    Regrettably, Owhoko said, “This has encouraged all manner of water merchants, using boreholes, tanker trucks and bottled water with questionable hygiene conditions lacking the capacity to pass purity test, to flood the area with their products.

    “Ajah, an area adjacent to Lekki, has a good water table with a thick protective layer.

    “This has led to the emergence of water vendors who use trucks/tanks to deliver and sell water to Lekki residents.

    “Notwithstanding, there are concerns about hygiene.

    “These tanker trucks are seldom washed and are prone to contamination. Some of these trucks have been in operation for over 10 years, yet operators do not deem it fit to wash them, thereby exposing residents to infections.

    “Besides, in the course of dispensing water, tanker trucks pollute the environment through the generation of noise and carbon monoxide, causing health hazards.

    “This leaves Lekki residents helpless, confining them to bottled water, which they believe are reliable. But they are wrong!

    “The risk of contamination in bottled and sachet water is also high due to adulteration and imitation fueled by greed.”

    Continuing, he said: “There are so many bottled water brands in circulation, all contending to capture the Lekki market share. “Those who believe their brands lack the capacity to compete resort to producing counterfeit by faking notable brands already enjoying market patronage.  That is why at party venues in Lekki, empty bottles of consumed water of big brands are quickly taken away by quacks for recycle.

    “Despite a lack of full-proof purity, Lekki residents believe they are better off with bottled water than drinking directly from boreholes and tanker trucks. This desperation to consume any water in bottle has exposed residents to unprepared risk.

    In what appears to be a corroboration of Owhoko’s remarks, Nollywood actor, Uti Nwachukwu, not too long ago took to his  social media handle to narrate his ordeal after consuming some bottled water.

    Uti said he started stooling after consuming the water and blamed his incessant stooling on the amount of chemical contained in the table water.

    Writing on his twitter handle, the actor said: “Dear bottled water companies, please what have you started adding to your water? If I wanted to projectile poop six-seven times a day, I’d have bought slimming tea!

    “What’s all this? It can’t be only me! And it’s the biggest brands! Two of them now! Fix it so that I don’t call your names!

     “I knew there was a problem when I was pooping steady and it was smelling of chemicals, like sanitizer, or alum or something! I stopped the first one and the stooling ceased.

    “Took the second one and there were no issues. I bought a small bottle and it was worse! This one came with abdominal discomfort, acid reflux, and yes, watery stool with that same chemical/alum aroma.

    “So now, I can only vouch for one brand that’s currently safe to consume. Who checks the standards of these things we put in our bodies?

    “Reputable brands like these are causing harm! Who even knows the effects on our organs? I’m tired!”

    Some respondents to his tweet are of the opinion that the actor might have taken adulterated bottled water.

    “Maybe one … has started making the adulterated version. Who knows,” a Nairaland user who identified himself as SportsHD said.

    Our reporter, who spent some time in a hotel at Jakande area, said apart from drinking purpose, he was compelled to get a bottled water pack to brush his mouth because he couldn’t manage the water in the hotel.

    He said: “When I entered the hotel, I went to use the restroom. I was shocked at what I saw. The water in the toilet was brownish and I thought someone used it and did not flush.

    “I decided to flush it, but what came out was not different from what I thought was urine.

    “It was at that time that it dawned on me that that could be the nature of the water in the environment.

    “I was more dazed when I tried to brush and bathe. The water that came from the tap was smelly and I quickly turned off the tap. 

    “I rushed to the reception to complain but all that the front desk person could do was to apologise. She said it was not their fault that that is how their water is.

    “I had to ask them to get me better water to bathe because there was no way I could have bathed with the smelly water.

    “To save himself from a health crisis, I went to buy a pack of bottled water. It was brisk business in the area. Everybody in the hotel was going to get bottled water even for brushing.

    “Nobody cared about the brand as long as it was bottled. The other alternatives you have are to either buy pure water or get a keg to buy from the community.”

    Banana Island is the least place one would expect to hear that unsafe water is obtainable. This is owing to the class of people residing in the neighbourhood. But there, the Lagos State Water Regulatory Commission (LSWRC), also recently sealed the Banana Island Property Owners Resident Association (BIPORAL) Water Treatment Plant for failing to meet the required safety and quality standards.

    Tests conducted by the LSWRC revealed that the water quality of the plant was unsafe for consumption and required improved treatment.

    There are feelings that water could easily have been packaged by any manufacturer for the public on mere assumption that water from such an environment will always be hygienic.

    Tanker driver, sachet water merchants also ‘cashing out’

    Aside from bottled water manufacturers, sachet water producers and people vending water with tankers are also having a good share of business in the area.    

    James, a resident of First Gate area of Jakande, said he buys water from water tankers but the hygiene and quality of the water cannot be ascertained.

     “We don’t have good water at all.  Our water is not drinkable. We don’t even use it to cook,” James began the chat with our correspondent on note of lamentation. 

    “We can only use it to wash and flush the toilet. The water ordinarily stains the toilet but we always use strong toilet soaps to keep it clean. We can’t use it to wash white clothes,” he added.

    Asked where he gets water to attend to other needs, James said: “We buy water from vendors most often. They hawk the water in tanks. That is the kind of water we use to cook. A Jerry can of 25 litres is N200.

     “I have a big drum that I fill with water worth N2,000. I do this every week. Our water here in Jakande, as bad as it is, is far better than what some people have in their areas. “The water in some communities is so bad that even if you put alum in it, the quality will not improve.”

    Godonu, a resident of Oke Ira, told our correspondent that he uses pure water to cook because the water around him is smelly. 

    “The water smells, and many atimes, I buy sachet water to cook. If there is no money to buy sachet water, we would go to Oke Ira Nla to buy water.

    “We always manage the water we buy for cooking and drinking while we use the smelly one for bathing.

    “We don’t feel comfortable using such water to bathe, but since we don’t have an alternative, we have to manage what is available.

    “We always endure the foul smell.”

    Godonu’s neigbour, Elizabeth, spoke of how the polluted water they were using before caused the children to have rashes. 

    “The place we were fetching water from before has spoilt. The water was always brown and also causing rashes for the children.

    “If you saw the bodies of our children before now, you would wonder where they came about rashes. The water was responsible for it.

     “The water that we are using now is clean but it is smelly. We only use it to bathe.

    “Before we use the water to bathe, we would fetch it into a container for some time for fresh air to blow the horrible smell away. You just have to do that if you want to at least manage to enjoy your bath.

    “Some people are still complaining that this present water is causing itching for them. But the complaints are not widespread like when we were using the other water.”

    Even though the present water is clean, Elizabeth said, they cannot use it to cook. “No, we don’t. It is not good to use smelly water to cook what one eats.

    “We always cross to the other side of the road to buy the water that we drink.

    “A regular big plastic paint costs N100.  I spend an average of N300 on water every day. This is really affecting me financially because in a month, I spend nothing less than N10,000 to buy just water. How much do I make from my petty business in a month?

    “If I don’t buy the water to attend to domestic needs, it will have ripple effects on me and the family, and this includes health issues that N10,000 may not be able to take care of.”

    Another resident, who gave her name simply as Lydia, said she had rashes all over her body when she newly arrived in the area.

    She said: “My body reacted negatively to the water. In fact, I never knew that the water in this area is terribly bad until I came here.

    “I resorted to using pure water but the truth is that you cannot ascertain if the water is free of contamination or not. You only use it because they say it is pure water and truly it does not have colour, and does not smell like the ground water.

    “Another way out when there is no money to spend on pure water is to buy water in gallons.”  

    Writing on Quora, an online platform, a dietician and nutritionist, Muhammad Haseeb, said tanker water may be susceptible to contamination from various sources. If the water source or the tanker itself is contaminated, it can introduce harmful microorganisms such as bacteria, viruses or parasites into the hospital’s water supply. These contaminants can cause water borne diseases and infections, particularly in immune-compromised patients.

    H added: “Tanker water may carry water borne diseases such as cholera, dysentery, typhoid or hepatitis A. These diseases can spread rapidly within a hospital setting, especially if the water is used for drinking, hand hygiene or medical procedures.

    “Patients, staff and visitors with weakened immune systems are particularly vulnerable to such infections.

    “Tanker water quality may also be compromised by chemical contaminants. Industrial pollutants, pesticides, heavy metals or disinfection byproducts can find their way into the water supply.

    “Prolonged exposure to these chemicals can lead to various health problems, including gastrointestinal issues, liver or kidney damage, neurological disorders, or even an increased risk of cancer.”

    If inadequately disinfected, the nutritionist said, “tanker water might not undergo adequate disinfection processes compared to the water supplied through a municipal system.

    “Insufficient disinfection can lead to the survival of pathogens in the water, increasing the risk of infectious diseases.

    “Hospitals require a high level of water quality and disinfection to maintain a safe environment for patients, staff and medical procedures.

    “The quality of tanker water may vary depending on the source, transportation and storage conditions.

    “Lack of control over the water supply can result in inconsistent quality, making it difficult to ensure reliable and safe water for hospital operations.

    “This inconsistency can impact patient care, hygiene practices, and medical equipment maintenance.”

    Another nutritionist, Seun Obembe, says relevant government agencies need to conduct regular tests on packaged water “because there is what we call alkaline water and acid water.

    “Most of the water labels are just information fraud. I am in Kaduna right now and most of the water I have tested here are apologies.

    “That is why there is an epidemic of typhoid and ulcer.  The government should test this water and do the right thing.

    “Let’s check it clinically. What is chlorine overdose, because they use chlorine inside the water?

    “The recommended allowance for water in a day is two litres.  How many sachets produce two litres? And then check the content of chlorine in them. That one is detrimental to health.

    “All these things have to be regulated. The government needs to do more work. They should encourage more scientists.

    “They should bring more dieticians and nutritionists on board. It is when there is an outbreak that they will start looking for researchers to bring out papers.”

    On the use of polluted water by the people, Obembe said: “When you say it is contaminated water, then it is detrimental to the health of the users. Even when you use it to bathe, the pores on the skin will definitely open and allow bacteria to go into the body.

    “People who are obese are prone to sickness because all these microorganisms hide inside them. So when there are issues in the body, all those pathogens that have been hiding inside the body will come out to strike.

    We’re already supplying water to parts of Island – LWC

    Regional Business Manager of the Lagos State Water Corporation (LWC), South South Lagos, Mrs Adewumi Folake, said the corporation was working on making clean water available on the Island.

    She said: “Presently, water is getting to Adeniji, Idumagbo, and Iduganran. We are working towards building up our pressure so that the supply will get to many more places on the Island.

    “LWC is working towards that. We have a pipeline network on the Island.

    “Our water supply is coming from the Mainland. The Ajiyan and Iju water works are supplying the Island. We are sure that the challenge of clean water will soon come to an end when we complete our works.

    Corroborating Mrs Adewumi’s remarks, the Public Relations Officer of LWC, Mrs Kehinde Fashola, said residents of Island and Lagos in general should rest assured that there would be abundant water supply in the state.

    “The present MD is doing what one can imagine. He is working towards installing water in every household in Lagos State.

    “A lot of rehabilitation is already going on at our mini and macro water works. All hands are on deck to make sure every household has water in Lagos.

  • Can Adelabu power Nigeria to prosperity?

    Can Adelabu power Nigeria to prosperity?

    As new regime began in federal ministries after the swearing-in of new ministers on Monday August 21, 2023, attention has shifted to new helmsmen for delivery of services aimed at meeting high expectations of Nigerians. Having endured epileptic power supply for decades, all eyes have now turned to Chief Adebayo Adelabu, who is the new minister of power. Southwest Bureau Chief BISI OLADELE examines the challenges before the new power minister and how his knowledge, experience and political will can help him birth a new dawn in Nigeria’s power sector.

    The 45 newly sworn-in ministers promised to bring a positive change to Nigeria when they assumed their new roles last week. They all said it will not be business as usual in their pledge to bring the Renewed Hope agenda of President Bola Tinubu to reality. Ranking next to insecurity is epileptic electricity supply in the country. Both challenges affect every Nigerian – rich, poor, urban or rural dwellers, communities, business owners and employees. Nigerians have also endured years of unfulfilled promises in both sectors as things sometimes went from bad to worse. But Adelabu, a finance expert, banker and politician, just promised to turn things round for all categories of Nigerians.

    Current power situation in Nigeria

    Quoting 2021 data of the United States Agency for International Development (USAID), energypedia.info says power generation in Nigeria is mainly from hydro and gas-fired thermal power plants, with the hydro plant providing approximately 2,062 megawatt (MW) and the gas-fired 11,972MW. Solar, wind and other sources such as diesel and Heavy Fuel Oil (HFO) constitute the remainder with 2,350MW, it posits. 

    Despite the huge population, which is estimated to be about 200 million, and its classification as the largest economy in sub-Saharan Africa, limitations in the power sector have continued to constrain Nigeria’s growth. The country is endowed with large oil, gas, hydro and solar resources, and it has the potential to generate 12,522 MW of electric power from existing plants. On most days, however, it is only able to distribute around 4,000 MW, which is grossly insufficient for a country of 200 million population. 

    While also featuring on a radio programme in Ibadan, the Oyo State capital at the weekend, Adelabu corroborated the above data, disclosing that though about 11,000 megawatt of power is being generated, only about 8,000 MW is being successfully transmitted while the distribution companies purchase just half of the quantity transmitted, leaving the other 4,000 MW wasted. Consequently, factories and other businesses, homes and social service providers such as hospitals and schools are left to grapple with power shortages. To shore up power supply, individual businesses, homes and other organisations provide their own power through electric generators, solar and other sources. Experts estimated individual power generation in Southwest Nigeria to be 20,000 MW, costing a whooping N34 billion daily in year 2022.

    For manufacturers in the country, most factories are producing far below capacity due to power shortages. Artisans are unable to maximise their potentials due to the same challenge while the service providers such as hotels, recreation centres, supermarkets, restaurants are forced to charge higher prices due to the high cost of providing power.

     The Nigerian power sector experiences many broad challenges including the political will to enforce electricity policies, regulatory uncertainty, gas supply shortage, transmission system constraints and distribution inefficiency. Government investments have also been over-concentrated on power generation and transmission with the distribution section of the chain faltering. All these, and others, have kept the sector from reaching commercial viability. In 2O10, the Nigerian Bulk Electricity Trading Plc (NBET) was established as a credible off-taker of electric power from generation companies. By November 2013, the privatisation of all generations was complete. There are currently 23 grid-connected generating plants in operation in the Nigerian Electricity Supply Industry (NESI) with a total installed capacity of 11,165.4 MW and an available capacity of 7,139.6 MW. Most generation is thermal-based, with an installed capacity of 9,044 MW (81% of the total) and an available capacity of 6,079.6 MW (83% of the total). Hydropower from three major plants accounts for 1,938.4 MW of total installed capacity (and an available capacity of 1,060 MW).

    Read Also: JUST IN: Sanwo-Olu, Obasa meet Lagos GAC over rejection of 17 commissioner-nominees

     In a 2011 presentation, titled “The Demand for Residential Electricity in Nigeria” by Musibau Babatunde and Isa Shauibu, the scholars said actual electricity supply has been significantly less than load demand, for instance in 2014 and 2016, the actual supply lagged behind the power demand by 21,639MW and 23,401MW respectively, representing about 15 per cent and 17 per cent of power availability. Thus, there is no corresponding increase in electricity generation as population increase as shown in 2014 where country’s population increased to 165 million but the total available power generated stood at 3,795MW.

     They posited that Nigeria was one of the most underpowered countries in the world, with actual consumption 80 per cent below expectations based on population and income levels. To plug the gap, they also pointed out that self-generation of electricity in Nigeria was extremely prevalent – a situation they said implied a huge unserved demand. There has not been any significant improvement in power supply from 2011 till date.

     While some Nigerians believe that suppliers of electricity generators have constituted themselves into a cartel, frustrating government efforts at improving power supply in the country, The Nation’s research further revealed that government has made a little progress in boosting power generation and transmission though disproportionate to the humongous investments on them, the distribution aspect of the supply chain is currently the rot that makes the entire chain stinks. For instance, the Federal Government has spent billions of dollars in setting up new plants, overhauling existing plants and procuring expensive equipment for generation and transmission, the 2013 privatisation of the distribution arm to private companies was badly undertaken.

     The research shows that many of the promoters of the companies that bought the distribution companies were either politicians or people of national influence but whose companies did not have the required financial muscle to invest in the distribution arm. The financial strength presented to the government was loan denominated in dollars. After paying the government for the purchase, they had nothing left to invest in power infrastructures such as transformers, electric poles, lines and metres.

    Till date, many of them are struggling to repay the loans which have been worsened by the skyrocketing foreign exchange rate.  All they do is to struggle to make loan repayment (some have become insolvent in the face of rising exchange rate), race to offset running cost and concentrate on profit. The goal of bringing in private companies (DISCOS) to run the distribution aspect of the supply chain would have been achieved if the Federal Government had sold to genuine investors who have the funds to invest.

    The latest development in the sector is the Electricity Act 2023. The new Act, signed into law by the immediate past president Muhammadu Buhari, moved electricity services from the exclusive to the concurrent list. The Act now allows subnational governments to participate in the entire supply chain. Within one week, however, Adelabu, a finance expert, has demonstrated a grasp of the claws gripping the sector. Showing an understanding that the problem is deep and multifaceted, he has refrained from making a definite promise on the improvement to expect under his leadership. Instead, he has set up a team of experts to review the problems and prospects in the sector to enable him develop a practical approach to solving the problem.

    Must-do for Adelabu

    For the new minister to succeed, he has to leverage on the Electricity Act 2023 by developing new policies that will support and fast-track the right investments in the power sector. Since supply gap is clearly wide, and the sector proves to be profitable, investors from around the world will be willing to invest in Nigerian power sector. But the policies must be right and attractive. The Federal Government power policies must not hinder investments in the sector.

     The minister will also need to establish a robust relationship with the states who now have the power to relicense electricity service providers at the entire supply chain. As it is, states are at liberty to work with existing DISCOS. They may need to re-licence them under new terms. They will also bring in investors in power generation just as they want to explore other sources of power generation such as solar and other renewable energy sources. The minister needs to operate with the states as collaborators, not as competitors in order to maximise the new electricity governance system.

     We are expected to see small power stations servicing specific communities. Southwest states are already collaborating on this and results may be seen in the next 18 months if they sustain their zeal and commitment to the project. As generation and distribution increase in the states, they will all count for the overall national output, while employment and wealth creation will be on the increase.

     Adelabu will need to work closely with the Ministry of Justice to ensure that the Federal Government does not impede investments in the sector, encourage it to maintain rule of law and also work hard to reduce bureaucratic bottlenecks. Many countries have automated services, but Nigeria is still moving at a snail speed in this. Adelabu will need to work with relevant ministries to ensure that all roadblocks are removed on the way of investments flowing into the sector to boost power supply and create wealth for millions of Nigerians across the 36 states.

      As he rightly pointed out in his last interview, the most important thing is for Nigerians to have access to stable supply of electricity in their offices, homes, schools and factories. Any effort geared towards achieving this must be properly supported by the minister regardless of its source anywhere in Nigeria. The minister needs to pay a closer attention to the distribution arm of the supply chain. As it is, that arm may need reacquisition and refinancing as well as proper metering system to make it profitable for investors and boost consumers’ confidence in using and paying for electricity use. There may also be need for national grid concessioning, progressive licensing regime and captive power generation. All these will help in overhauling the aged power infrastructures and bring investments in new types of power sources such as modular power plants.

     As pointed out by an energy law expert Prof. Yemi Oke of the University of Lagos,  success in the new regime requires that states must also provide enabling environment for investors, offer incentives, allow small investors who can build small power stations to take care specific communities or factories, enact laws that will regulate electricity service chain, introduce proper metering system and obey the laws to boost investors’ confidence, cooperate with the Federal Government and leverage on regional advantage.

     Bringing into office years of experience and accolades for performing as a successful banker and finance expert, Adelabu is expected to apply his expertise and experience to facilitate the right investments and add new feathers to his cap of successes as power minister. From his days in commercial banks to his service as deputy governor of Central Bank of Nigeria (CBN), Adelabu has had some experience in power financing. Now that he came to man the power ministry at a time the sector is being transformed, and with immense finance ingredients, Adelabu is expected to demonstrate capacity and competence in bringing smiles to the faces of Nigerians through significant improvement in power supply and cementing the foundation for abundant power supply in the long term.

  • BRICS: Nigeria better off as non-aligned nation, says Okechukwu

    BRICS: Nigeria better off as non-aligned nation, says Okechukwu

    The Director-General of Voice of Nigeria, (VON) Mr. Osita Okechukwu yesterday gave kudos to President Bola Tinubu for rejecting the country from joining the BRICS economic group. The founding member of the ruling All Progressives Congress (APC) said the President deserves the commendation of all Nigerians for not applying to join the emergent grouping.

     At the 15th BRICS Summit in South Africa, the bloc admitted Argentina, Egypt, Saudi Arabia, UAE, among other intending developing countries into its folds, thus fuelling speculations that Nigeria’s application was rejected for not meeting some crucial membership criteria. But, in a statement made available to newsmen in Abuja, Okechukwu declared that Nigeria is better off maintaining her decades-old diplomatic standpoint as a non-aligned.

    Read Also: Six countries join BRICS as summit ends South Africa

     He noted that he was thrilled when the Vice President, Senator Kashim Shettima, recently cleared the air and said, “So far, we have not applied for the membership of BRICS. And it is majorly informed by the fact that my principal, President Bola Ahmed Tinubu, is a true democrat that believes in consensus building.” The APC chieftain argued that Nigeria is better maintaining her age-long diplomatic policy and standpoint. According to him, “Whereas one has nothing against Brazil, Russia, India, China nor our brothers South Africa that make up the BRICS; however Nigeria stands to benefit hugely if we maintain our age-old standpoint of multilateral diplomacy.”

     He pointed out the worldview origin of BRICS, saying, “records have it that to spur economic development outside the Breton wood system, the BRICS, a bloc comprising Brazil, Russia, India, China and later South Africa, was formed. Ironically, the acronym was coined in 2001 by Goldman Sachs and 2006, the bank opened an equity fund for investors in the BRICS. The group had since established New Development Bank (NDB).”

     On the proposal that Nigeria’s membership of BRICS has economic growth as the main goal, Okechukwu argued that whilst economic growth is important, it should not be at the expense of Nigeria’s cherished freedom and rule of law, which the leadership of the bloc abhors. “Whilst one agrees that BRICS may engender economic growth; however neither the West nor Russia or China is father Xmas. Therefore, our destiny is in our hands. And most importantly, we cannot gloss over our cherished freedom and rule of law which may be in jeopardy in the BRICS alliance. Otherwise, at the last count, the New Development Bank (NDB), a multilateral lending institution set up in 2014, based in Shanghai, had $25bn in recorded assets in 2022, less than a tenth of the World Bank’s total, and not much economic growth was stimulated,” Okechukwu explained.

     Accordingly, he appealed to President Tinubu to maintain Nigeria’s multilateral diplomatic strategy, which allows Nigeria today and in the future to operate and relate freely with all blocs and ultimately guide jealousy our national interest.

  • ‘Tinubu’s economic reforms are in overall interest of Nigerians’

    ‘Tinubu’s economic reforms are in overall interest of Nigerians’

    In this interview, the Special Adviser to the President on Revenue, Mr. Zaccheus Adedeji, explained that the focus of President Bola Tinubu’s administration is economic reconstruction of Nigeria. To achieve sustainable prosperity Nigerians desire, he said the government has been working at growing the economy, ultimately trying to raise the nation’s revenue, eradicating culture of borrowing to finance public spending, repositioning the economy to make life better for Nigerians and laying the foundation for a prosperous future for all. BOLAJI OGUNDELE brings excerpts:

    Strategies for attracting foreign direct investment/ensuring conducive environment for businesses  

    Mr. President‘s philosophy is that we should not tax investment, but returns on investment. We should not tax production but consumption. We should not tax poverty but facilitate prosperity and share it by way of fair and progressive taxation. This is the reasoning behind Mr. President’s recent remark that this government will tax fruits not seeds. The market-friendly disposition of this administration is already creating excitements in the capital market with over 20 per cent growth this year to date and best performance in 15 years. We are also working on reforms to create more jobs and entrepreneurship opportunities in the digital economy, especially for our teeming youth.

     We recognise that Nigeria cannot continue to rely on the oil and gas sector as the mainstay of the economy, especially with the uncertainties around global oil prices, which usually create shocks in the economy whenever the price crashes like we experienced from 2014 till 2018 when the price started rising again above $50. President Tinubu promised to build a more vibrant and more prosperous economy and this he is set to achieve by ensuring other sectors of the economy like agriculture, solid minerals, maritime, retail, hospitality, tourism and professional services, and others perform optimally.

    Read Also:Rep backs Tinubu’s policies for oil, gas sector

    The first 100 days in office and managing the pains of fuel subsidy removal?

    I know it is symbolic to assess the performance of a new administration within the first 100 days, sometimes even for a shorter period. However, for this government, it is not simply about the present moment or what the President has done within the short term of being in office; it is more about the medium to long term vision of how he wants to reposition the economy and make life better for Nigerians. We are laying the foundation for a prosperous future. You will agree with me that even though the foundation is the most important structure of a building, it is not always the prettiest. Once the house begins to take shape, the beauty will not only be apparent for all to behold, but also it will provide the much-needed shelter to shield the occupants from bad weather and other unfavourable external conditions.

     We have done a lot that I am proud of within the short period. These include addressing some critical concerns of the private sector regarding pressing tax issues, removal of wasteful subsidy on PMS to create fiscal headroom and limit excessive borrowing, forex reforms to address market distortions, just to mention a few. So, overall I can say that we are on track and moving in the right direction.

     You will recall that Mr. President signed some Executive Orders on the 6th of July, which reversed the tax increases on manufacturers, and suspended the excise tax imposed on Single Use Plastics, which would have affected mostly SMEs and potentially trigger higher prices and further inflation. The Orders also deferred the commencement date of various changes introduced via the Fiscal Measures and Finance Act 2023 in order to give individuals and businesses reasonable time to adapt to the changes without major disruptions to their operations and livelihoods. The removal of wasteful subsidies on PMS and forex have stopped the haemorrhage on our treasury and will ensure that government is on the path to sustainable financing with less dependence on CBN overdraft for public finance. While some of these measures have unfortunately created short term pains for many people, we are confident that Nigerians will start to reap the benefits sooner rather than later. In addition to the various interventions by the federal and sub-national governments, more initiatives are being worked on in consultation with key stakeholders, which are expected to have positive and more fundamental impacts on the people.

    Steps to diversify Nigeria’s revenue sources and reduce dependence on oil

      We believe that Nigeria is blessed if only we can improve our policy environment and enhance the efficiency of both the private and public sectors. This is one of the reasons why Mr. President recently approved the setting up of a Presidential Fiscal Policy and Tax Reforms Committee with eminent Nigerians from all spheres of the society to, not only advise government on the necessary reforms, but also support with the implementation. Ultimately the outcome of the committee’s work, along with other policy actions of the government will result in productive diversification of the economy, government revenue sources and foreign exchange earnings.

     PMS and forex subsidies were not only wasteful, they promoted inefficiencies in our resource management and created economic distortions making it difficult to attract both domestic and foreign investments. By removing the subsidies, government at all levels will have less need to keep borrowing to fund public spending while the savings will be channelled towards infrastructure and social services to reduce multidimensional poverty and build a competitive economy. For any economy to be productive, you need critical infrastructure that supports business growth and improves quality of life, especially roads, power, rail, broadband, pipelines etc. These are heavy and capital projects that only government can mostly provide. Investors will go to a place where they don’t have to worry about all of these. For ease of doing business and to make our economy more competitive, government will need to spend more on these areas. The government will re-invest the money saved from fuel subsidy to grow the infrastructure stock of the country and fund social services in education and healthcare. We want to make sure our public schools and public hospitals are up to standard and can meet the need of Nigerians and affordable too as against the more expensive services they get from patronising private schools and hospitals.

     The crux of the agenda of this government is economic prosperity, which is inclusive and sustainable. Nigerians trust Mr. President based on his pedigree, which was the main reason they voted for him as President. You will also agree with me that Mr. President has made his appointments based on competence with a good number of technocrats appointed to manage various aspects of the economy. Even the politicians that have been appointed by Mr. President are those with proven records of performance. So I can say that we are moving in the right direction and making progress. I am confident that Nigerians will begin to see the benefits of this administration’s policies sooner rather than later. The future is very bright. President Tinubu is guiding us through a challenging time and in the last 100 days in office, he has demonstrated that the confidence Nigerians reposed in him has not been misplaced.