Category: Special Report

  • It’s grass-to-grace story for Binta

    It’s grass-to-grace story for Binta

    She cut her entrepreneurial teeth from a humble beginning as a bread hawker, propelled by the life-changing Conditional Cash Transfer (CCT) of the Federal Government’s National Social Investment Programme (NSIP). Today, Binta Ismai’il is a proud owner of a thriving shoemaking workshop based in Abuja. Her inspiring grass-to-grace story, encouraged by the NSIP, going forward, could be the template for similar programmes aimed at enhancing and uplifting the living standard and livelihood of ordinary Nigerians. BOLAJI OGUNDELE writes.

    The owes her meteoric rise to fame and fortune to being a beneficiary of the life-changing Conditional Cash Transfer (CCT), an intervention programme under the National Social Investment Programme (NSIP) of the Ministry of Humanitarian Affairs, Disaster Management and Social Development. Today, Binta Isma’il, a hitherto obscure roadside bread hawker, is a proud owner of a thriving shoemaking workshop.

    Binta, a resident of Abaji Area Council of the Federal Capital Territory (FCT), is the new kid on the entrepreneurial bloc; her workshop, which is located in the same Abaji, serves as an employment outlet for apprentices and a profit-making venture for the owner.

    It is also an income stream for those workers who earn their daily bread from the workshop. “I used to hawk bread at Abaji market. However, since I started collecting this money, I used it to register my new place of work,” she said, pointing at her shoemaking workshop.

    Recalling with nostalgia how the CCT saved her life and improved her livelihood, Binta said: “I started benefitting from 2019 and it is the money that I used to buy these sewing materials and equipment that you are seeing in this shop.   

     “From the beginning, I enrolled and paid to learn the trade from the initial installment of the CCT that was paid to me, because at that time, I was hawking at Abaji market.

    “I was hawking bread on my head, but since I started receiving the CCT stipend, I used it to register and learned the shoemaking trade and also used the same money and purchased the materials that I’m using for sewing, including the machines and equipment that I’m using for the trade,” she emphasised.

    The CCT that propelled Binta to her current enviable status in the Nigerian entrepreneurial space is an intervention scheme under the NSIP established in 2016 by the Federal Government, under former President Muhammadu Buhari.

    The NSIP was aimed at addressing the immediate and long-term socio-economic imbalance and inequalities in Nigeria, alleviate poverty and stimulate accelerated economic growth for national growth and development. 

    The NSIP was strategically conceived, designed and tailored to provide safety nets to address the immediate and long-term socio-economic challenges faced by the poor and vulnerable in Nigeria.

    This was to bring succour and uplifting their living standard and ultimately accelerates rapid national development by enhancing their man power capability and up scaling their financial status through financial intervention in their businesses and other economic activities.

    Apparently worried by the growing poverty, inequality and poor living standards of the citizenry, which led to uncomplimentary poor living standard ratings of Nigerians by local and international institutions, the Federal Government had introduced poverty alleviation measures aimed at mitigating and squarely addressing the negative impact of these socio-economic imbalances on Nigerians, who unarguably, constitute the majority.

    This effort at uplifting the standard of living of the people and enhancing their socio-economic wellbeing was embarked upon by the government, despite failed attempts by successive administrations to address the nagging problem of excruciating poverty and poor living standards of majority of Nigerians.

    Indeed, the majority of Nigerians have been wallowing in poverty, despair and hopelessness, despite huge human and material resources that abound across the length and breadth of Africa’s most populous country.

    However, mindful of failure of past attempts by various administrations at different times, at addressing ravaging poverty among Nigerians, the Federal Government, under former President Buhari in 2016, established the NSIP.

    Records have shown that the NSIP is the biggest and most expansive social protection and poverty eradication programme put in place by any government in Nigeria in order to address poverty and enhance the living standards and condition of the people.

    Since its inception, the NSIP, which is domiciled in the Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development, has benefited millions of Nigerians and continues to benefit directly and indirectly many poor and vulnerable people through its programme’s different clusters.

    Many of its beneficiaries, who were hitherto poor or vulnerable, have been lifted out of poverty through the CCT. Many of them now own small businesses thus improving their quality of life significantly.

    Another component of the NSIP, which has greatly impacted positively on the lives of many Nigerians, especially the youth who direly needed a push to actualise their dream and unleash their potential, is the N-Power programme.

    The N-Power programme was aimed at providing Nigeria’s teeming youth with learning opportunities and job experience, as well as available income for start-ups of economic transformation initiatives for a more meaningful life and better living conditions.

    While examples abound of many beneficiaries of the NSIP, Binta stands out. Prior to becoming a beneficiary of the NSIP’s CCT, she was a roadside bread hawker who earned her living from the hazardous trade of street hawking.

    It is a known fact that street hawking is one of the major human capital development challenges militating against the personal development of its victims and constitutes a clog in the wheel of progress of developing nations including Nigeria.

     No wonder, the NSIP targets the disadvantaged and the most vulnerable members of the society such as the jobless and those who engage in petty trading and sometimes demeaning trades like street hawking.

    The menace of street hawking poses a major threat to young people, particularly the girl child, who, apart from being denied the opportunity to acquire education for personal and national development, also falls victims of various forms of abuse such as rape, which cases are on the rise with daily report of sexual exploitation of young girls.

    Therefore, the NSIP’s targeting of such unfortunate young girls gives hope to the hopeless and set the tune for national rebirth.

    In this regard, the selection of such beneficiaries like Binta, whose hawking experience couldn’t be different from that of many young girls roaming the streets, rekindles hope and inspires her to achieve her full potential and serve as role model for others as encapsulated in her testimony. 

    Binta, who has since been soaring on the wings of NSIP’s CCT intervention programme, was full of inspiration and admonition for those who engage in her former trade, which is not only demeaning to the women folk, but also detrimental to their physical, psychological, mental as well social well-being.

    Such detriments ultimately, hinder women’s personal growth and constitute major development challenge, which, if left unchecked, could spell doom for the particular individual and the nation as a whole.

    In the euphoria of her excitement, Binta has a piece of advice for prospective and fellow beneficiaries of the CCT programme. She admonished them to use the stipend by first enrolling to learn a trade of their choice and thereafter, save to secure a place such as a workshop.

    Indeed, a visit to Binta’s busy workshop shows how life-changing interventions like the CCT can turn dreams and aspirations into reality. She said from the time she started selling her products (showing off some bags from their hangers), the intervention has proved to be a clear testimony of a new lease of life for its beneficiaries.

    As enunciated by her testimony, the choice of Binta as a beneficiary of the NSIP’s CCT programme, indicates a programme with multiple benefits not only for the beneficiaries, but also for those who aspire for self reliance, economic independence and actualisation through personal development and exploit of their potential.

    Indeed, if previous programmes of similar aim with NSIP were executed in the manner the CCT was handled, the poor rating of Nigeria on development indices by both domestic and international institutions would have a far better one which the citizens would be proud of.

    This is so because the multiplier effects of the intervention resonate in many homes in Abaji, and beyond, which hitherto were either lacking in income or completely had no reliable, stable source of income for their sustenance. 

  • Making life bearable for sickle cell sufferers

    Making life bearable for sickle cell sufferers

    Judging by the excruciating pains sufferers of sickle cell disease (SCD) and the trauma their caregivers or parents experience, experts and stakeholders maintain that the Federal Government’s involvement in tackling the scourge should be improved upon and sustained. Associate Editor, EMMA ANYA reports

    Sickle cell is not a commonplace disorder.  Usually, its symptoms appear early in childhood and vary from person to person; from mild to life-altering or threatening.

     Experts reel off anaemia, jaundice, swelling of hands and feet, stunted growth and development, stroke, pain, infection, fatigue and pulmonary hypertension as some of the indicators.

     Caregivers of sickle cell sufferers have as much as traumatic experiences as those who are victims.

     Narrating her experiences in giving care to her child, Keside, Mrs Calista Oluchi said: “It could be a harrowing experience taking care of a sickle cell sufferer. Nearly at age two, my last kid began having a recurrence of illnesses. Often, he would bounce back within two days.

    “But one got me and my husband worried. The boy cried and shivered uncontrollably.

    “I dashed across to the home of a family doctor adjacent to ours.

    Immediately, the doctor came and examined Keside. He asked to know the genotype of my husband and I. ‘AS and AS,’ we said.

    “The doctor administered some drugs to him and advised that we took him to the hospital if we did not notice any sign of improvement in hours.

     “As the doctor made to leave, he said: ‘Your boy should be screened to determine his genotype in our hospital, the Federal Medical Centre (FMC).

     “To us, his advice sounded outlandish. When Keside was one and a half years, we had taken him to a popular laboratory in our neighbourhood.

     “He was screened and the result was AA.”

    Even though Keside’s health improved significantly after the doctor attended to him, Mrs Oluchi and her husband still headed for the FMC the following morning.

    Attendants at the FMC rescreened him for genotype. The result was stunning. Keside was SS.

     To make assurance a double, the couple presented him for another round of screening; this time, at a well-known laboratory close to the Lagos University Teaching Hospital (LUTH). There it was also reconfirmed.

     It was then that the couple was convinced that they have a huge challenge before them.

     Keside has grown into an adolescent; and at 16, he is alive and is coping, even though, according to his parents, each time he has a crisis, he experiences excruciating pains.

     Aside from the pain Keside undergoes any time he has a crisis, his mother stated that the financial implications are humongous.

     Explaining their trauma, Oluchi said: “As parents, we do not only suffer emotional pain, the financial implications of managing a sickle cell child is monumental. At home, we ensure that all essential/recommended drugs are available in our mini-pharmacy. This is whether or not our Keside is sick.

     “There are two significant incidents in the challenges we have faced managing our son. They remain fresh in our minds.

     “One was an admission period in LUTH. It had to do with blood transfusion. Prior to this, he had had four or five that went without a hitch. This particular instance was harrowing. Keside was on oxygen. At the same time, he needed blood. Non-medics and resident doctors were on strike. There was also blood scarcity. To worsen the situation, Keside’s blood group (B negative) is hard to come by.

    “For three days, we searched from public blood banks to privately-operated ones without success. On the fourth day, someone referred my husband to a blood bank at Adeniran Ogunsanya Street in Surulere, where luck smiled at us.

     “The snag, however, was that it was costlier but we had no choice. Our son’s life was more important than money.

     “My husband bought the required quantity and headed back to LUTH.

      “A consultant at the blood bank rescreened the blood and said that it had only two days to expire.

    “At this point, my husband panicked so much. Keside was in bed desperately in need of blood and the doctor was mentioning expiration.

    “Sensing my husband’s mood, the consultant tried to calm him down: ‘Let them go ahead with the transfusion but be sure you boost your son’s blood with blood tonic without iron and blended Kiwi,’” he advised.

     “After the transfusion was carried out, Keside started showing signs of improvement. Two days later, we were discharged.

     “The second time I will not forget was when my husband was away from Lagos. At 2:00 a.m., I called to inform him that

     Keside had another crisis. He was 700 kilometres away from us.

     “My voice conveyed the level of the crisis and my concern to him.

     “What could be done? Our oldest child, Justice, was nine years then. There was absolutely no way he could be left alone at home.

     “My husband directed that we should go the FMC. He knew it was risky but he assured me that God would take control.

     ‘Do not panic. Wake Justice and lay him in the back seat of your car to continue his sleep. Get Keside in the front seat and move,’ my husband said.

     Mrs Oluchi had no option but to move as her husband advised. She drove to the FMC Ebute Metta at that odd hour.

     Mrs Oluchi’s narrative formed part of the common threads that permeated the presentations and speeches by experts and guests at the June 19 World  Sickle Cell Lecture organised by Nigeria’s foremost sickle cell advocacy group, the Sickle Cell Foundation of Nigeria (SCFN).

     Experts have maintained that wrong diagnosis is the first problem encountered in taking care of a sickle cell sufferer. The second is the challenges of managing sickle cell disorder (SCD) persons. Others were late diagnosis, knowing your genotype before marriage.

     The experts that made the presentations were Professors Edamisan Temiye and Titilope Adeyemo of the Lagos University Teaching Hospital (LUTH), Idi Araba, Lagos.

    Sickle cell disorder in Nigeria

    Nigeria is said to be the epicentre of the life-threatening disorder globally. According to records, there are about 46 million sufferers in Nigeria.

     As far back as 2008, Nigeria was reported to be losing 100,000 infants to SCD yearly.

    Indices from the World Health Organisation (WHO) also showed that the country accounted for 75 per cent of infant sickle-cell cases in  Africa and about 80 per cent of infant deaths from SCD on the African Continent.

     Out of the 200,000 infants born with SCD yearly in Africa, Nigeria accounted for 75 per cent of the births.

     WHO said that sickle cell disorder is particularly prevalent in areas of high malarial transmission.

     “The mutant sickle-cell gene confers a survival advantage against malaria which explains the prevalence of the disease in Nigeria where malaria is endemic,” it added.

    In spite of the huge pains posed to people suffering from the disorder and the financial challenges faced by their parents, the Federal.

    The government’s involvement in tackling the scourge is more than lethargic. This leaves SCD sufferers and their parents on their own.

     Former President Mohammadu Buhari, in one of his interviews last.

      December told a story of how he lost two children to sickle cell. He described the experience as harrowing but made no reference to what his administration was doing to tackle the scourge.

     In May 2023, the immediate past Minister of Science and Technology Olurunimbe Mamora announced at a ministerial press briefing that the ministry had invented Nutraceuticals for the management of disorders such as sickle cell.

     This elicited joy from people living with SCD and their parents, but findings revealed that the drug, whose name Mamora did not mention, is still in the works.

     In countries where the scourge is far minimal than in Nigeria, SCD sufferers enjoy better health care at a near-free cost.

     Those in the United Kingdom, for instance, do not only get free drugs, they enjoy free Medicare and, therefore, live healthier and longer than their counterparts in Nigeria.

     Before this, the nearest contribution by the government toward tackling the disorder was the development of Niprisan by the National Institute for Pharmaceutical Research and Development (NIPRD).

    Niprisan, a phytochemical, was formulated from indigenous plants (Piper guineenses seeds, Pterocarpus Osun stem, Eugenia Caryophylum fruit and Sorghum bicolour leaves.

    But, Niprisan’s commercialisation was hampered by a lack of pharmaceutical capacity for drug formulation in the country.

    Sickle cell disease explained

     The Centre for Disease Control and Prevention has described SCD as a group of disorders that cause red blood cells to become misshapen and break down.

     With sickle cell disease, an inherited group of disorders, red blood cells contort into a sickle shape. The cells die early, leaving a shortage of healthy red blood cells (sickle cell anaemia) and can block blood flow; causing pain (sickle cell crisis).

    People who have sickle cell disorder inherit two faulty haemoglobin genes called haemoglobin S–one from each parent.

     Types of SCD

    There are several types of SCD. Some are HbSS, HbSC, HbS, , Hb HbSO and HbAS and HbSD. While HbSS and HbSC are common in West Africa, rare cases  as HbS, HbSD, HbSE, and HbAS and are not.

     The specific type of SCD a person has depends on the genes they inherited from their parents.

    HbSS

     According to health experts, people who have this form of SCD inherit two genes, one from each parent, that code for haemoglobin “S.”

     Hemoglobin S is an abnormal form of haemoglobin that causes the red cells to become rigid, and sickle-shaped commonly called sickle cell anaemia. It is usually the most severe form of the disorder.

       HbSC

     People who have this form of SCD inherit the haemoglobin “S” gene from one parent and a gene for a different type of abnormal haemoglobin called “C” from the other parent. This is usually a milder form of SCD.

     SCD crisis

    It is the pain that happens when blood vessels to parts of the body are blocked. The pain is usually extraordinarily severe and could last days or weeks. The four main types of crisis are aplastic, acute sequestration, hyper-haemolytic and vaso-occlusive.

     A sickle cell crisis is usually triggered by physical or psychological stress, cold weather, alcohol, tobacco products, loss of fluids (dehydration), infection, malaria parasites, and low blood oxygen (hypoxemia).

     Hypoxemia can result from very strenuous exercise, high altitude or certain medical conditions.

     People with SCD are prone to illnesses such as stroke and ulcers of the leg. The disorders also cause swelling of hands and feet, delayed growth and poor vision.

     Preventing SCD crisis

    To checkmate the SCD crisis, medical experts recommend a daily intake of easy-to-access drugs such as folic acid, paladin, B-Complex, Vitamin C, Niprosan, Jobylin and immune-boosters.

    Specialists also recommend that people with SCD make water their companion. Water, according to them, helps blood flow, thereby preventing the sickling of red cells.  Other liquids like juice that are rich in vitamins are also helpful.

     Fruits that are rich in minerals such as carrots, mangoes, apples and guava, among others also complement in preventing the crisis.

    One of the main problems of SS people is low blood counts. For people with AA and AS genes, the life cycle of their blood cells is over 100 days. But for SS people, it is only 20 or 30 days.

    While the full blood count of an AA or AS averages 36, for an AS, it is a maximum of 23. Because of their challenge with blood, it is highly advisable that they eat vegetable-rich meals, and take blood tonics without iron, beetroot and Kiwi regularly.

     It is also advisable that people with SCD should eat a lot of local beans called Olo by the Yoruba and sleep under the mosquito-treated net to prevent mosquito bites.

     The challenges of some SCD people are also compounded by ulcers and strokes.  For years now, SCFN is known to have taken the bull by the horn by ensuring that Nigerian children with SCD do not suffer a stroke as they grow. This is done by ensuring that those between two and 12 years undergo a screening process known as Trans Cranial Doppler (TCD).

     Managing SS crisis

     Most often, crisis sets in with joint pain, high temperature, headache, and other signs. When mild, home treatment can commence with the administration of painkiller drugs like Paracetamol or ibuprofen.

    Regular water intake is also very important. Close monitoring is essential.

    But, if the symptoms persist after some hours of home care, it is advisable that the person having a crisis be taken to the hospital for expert attention.

    Advances in the management of sickle cell disorder

     Professor Temiye, a Consultant Haematologist at LUTH listed blood transfusion, HydroxyUrea and BMT transplantation as some of the new advances in the management of SSD.

    Dr Sunil Gupta, a Haematologist and renowned Cable News Network (CNN)

     Health analysts said that low blood count occurs when a person has fewer red blood cells, fewer white blood cells, or fewer platelets in the body than what is typically considered to be normal.

     “In other words,” Gupta says, “the bone marrow of such an individual is not making enough of one type of a person’s blood cells.”

     A person with low blood count, otherwise known as Anaemia or cytopenia in medical terms, experiences tiredness, shortness of breath, fast heartbeat and weakness.

    For those with SSD, the symptoms are usually more severe. To quickly rescue such persons, blood transfusion is usually introduced.

     Transcranial Doppler Scan (TCD) which SCFN introduced recently in Nigeria, said Temiye, has helped to save many with SCD, especially the young from stroke.

     TCD scan detects  , air, hydrogen, carbon monoxide, nitrogen, sulfur dioxide, and many other compounds.

     It provides rapid, non-invasive, real-time measures of cerebrovascular function and can be used to measure flow velocity in the basal arteries of the brain to assess relative changes in flow, diagnose focal vascular stenosis, or detect embolic signals within these arteries.

     Temiye also provided insights into research breakthroughs in diets such as “Cajanus cajanb (…..) that have proven to contain abundant glutamine, alanine and phenylalanine with comparable effects on SCD with Hydroxy Urea.”

     Hydroxyurea, according to experts, does not only make red blood cells bigger, “it helps them stay rounder and more flexible and  less likely to turn into a sickle shape.”

    The drug, according to the experts, does so “by increasing a special kind of haemoglobin called haemoglobin F.”

    Haemoglobin “F” is also called foetal haemoglobin because newborn babies have it.

    Although Temiye believes in the effectiveness of HydroxyUrea in SSD treatment, he warned that it has serious negative effects on the liver and kidneys, if abused.

     To forestall, the negative consequences, he recommended dosage based on the age of a user must be strictly adhered to. He also admonishes every user to always stick to programmed liver and kidney tests as recommended by experts in the management of SSD.

     He also alluded to Gene therapy as yet advancement in the curative approach to SCD. 

    Gene therapy is “the introduction of normal genes into cells in place of missing or defective ones in order to correct genetic disorders.”

     The expert, however, noted that Gene therapy is accessible only to individuals with high income.

     He assured that there is the possibility of a definite cure for SCD through technological improvement in gene editing tools and stem cell harvesting as well as promising clinical trials.

     As of today, he said, the only cure for SSD is Bone Marrow Transplant

     (BMT); a procedure in which “bone marrow cells are collected from a donor’s bloodstream with a needle inserted into a bone; typically a pelvic bone.”

    Oftentimes, donors are usually direct siblings of persons requiring BMT.

     But some diseases such as multiple sclerosis, systemic lupus, chronic fatigue syndrome and fibromyalgia, can prevent one’s sibling from donating marrow or blood-forming cells.

     A donor’s age is also usually considered in carrying out BMT. If the age difference is much, it is not always advisable.

     However, a new SS drug is currently being used in the UK. The drug,

     ADAKVEO, a brand of crizanlizumab, was produced by pharmaceutical giant, NOVARTIS.

     It is expected that 5,000 people with SCD will be treated with ADAKVEO injection, over the next three years.

     Experts in Nigeria are however yet to queue into the usage of the drug, which is highly regulated in the United Kingdom.

    One of them told our correspondent that they were yet to embrace crizanlizumab in the treatment of crisis because “even in the UK, the long-term effect is still being studied.”

    Importance of early and accurate diagnosis of SCD

    Another expert, Prof  Adeyemo used some cases she personally handled to stress the need for would-be married couples to know their genotypes.

     Besides the deliberate decision to know one’s genotype, a number of opportunities do crop up, especially in gaining admissions into schools and employment, travelling and even during marriage counselling.

     In most of these instances, direct requests, she said, are made for would-be employees, admission seekers and about-to-wed persons to show proof of their medical fitness.

     Adeyemo lamented that most often, people fail to realise that complying with such requests could save them from negative health implications or even death.

     “Pre-school, pre-employment, pre-marital, pre-natal, community screening (outreaches),” she stressed, admitting however that  “there is yet the problem of misdiagnosis and genotype misidentification which have been very rampant as a result of lack of standards and quality control.”

     As Temiye, Adeyemo advised that SS screening should not end with one laboratory. According to her, the keyword is “repeat” the screening at a reputable health facility.

    Early management of their case is imperative for married couples who knowingly or unknowingly find themselves producing children with SS.

    Adeyemo advises that SCD children between the ages of two and five be made to undergo regular TCD screening to prevent them from being stroke-prone, having leg ulcers and kidney problems.

     “At eight to nine months of life, the kidney already shows signs of dysfunction (Sickle Nephropathy). Since SCD is a lifelong disorder, it, therefore, requires life-long comprehensive care,” she said.

    She also identified associated risk factors such as recurrent acute chest syndrome, Vaso occlusive episodes as well as severe anaemia as some of the challenges always faced by SS people.

     Adeyemo said that “protective factors have been found to be induction of foetal haemoglobin by hydroxyurea.”

     “It is possible to live full lives and enjoy most of the activities that other people do as an SS person. An SS person should need to learn how to stay as healthy as possible, and that starts with the early and accurate diagnosis of the disorder followed by being enrolled in an SCD care programme.”

     Adeyemo advocated that the unlisted be carried out,  especially by the government and regulatory agencies:

    •intensify national universal newborn screening programme advocacy

    •engaging regulatory bodies to ensure laboratories eliminate/minimize systematic errors by routinely calibrating their equipment using controls, maintaining instruments and equipment and comparing values, and compelling laboratory operators to train and re-training their scientists.

    Surviving and thriving with SCD

    Toyin Adesola, a warrior, radio host and emotional intelligence coach was diagnosed with SSD at age six.

     She is now 56 and has pushed through most of the pains associated with the disorder. Today, she moves with two mobility aids–a mini-electric bike and a walking stick.

    When you see Adesola, you notice a life of triumph – smile and hope radiating all over her.

     At the event, she told her story, including how her mother prayed for her to become a conqueror and warrior, a beacon of hope to others with SSD.

     Adesola’s key message was for those with SSD and their parents to “have positive mindsets tailored at conquering in the face of health challenges.”

     She also canvassed better healthcare and support from governments at all levels.

     Adesola also advised warriors to build “a support network within their families, friends and healthcare professionals.

     This, according to her, “will help them rise above the physical and emotional effects of the sickle cell disorder.”

    Stakeholders speak

    Eminent Nigerians that attended the SCFN event included Olorogun Sonny Kuku, Prof. Ibironke Akinsete and Founder of SCFN, Prof. Olu Akinyanju.

    Also in attendance were Ibijoke Claudiana Sanwo-Olu, wife of Lagos

     State Governor represented by Dr O.J Olunuga, medical director,

     Ebute-metta General Hospital; CMD of LUTH represented by the Chairman Medical Advisory Committee (CMAC), Dr Oshodi; World Health Organisation represented by Dr Memuna Esan; Pfizer Medical Director represented by Dr Chioma George, Global Action Network for Sickle Cell and other Inherited Blood Disorders (GANSID) represented by Mrs Lanre Ajayi and Permanent Secretary of the Federal Ministry of Health represented by Dr Deborah Odoh.

     Akinyanju, in his comment, stressed that SSD “is not something one should hide from the public. He pointed out that it was important to keep the “positive values of living above the myths around sickle cell.”

     While other guests, especially Kuku emphasised that sickle cell today is not a death sentence, Pfizer’s Medical Director stated that four million to six million people live with the disorder in Nigeria.

     The guest of honour, Prof. Akinsete lauded SCFN for sustaining the National Sickle Centre and contributing to research-making innovations.

     But Akinsete, who also pointed out that SCD was not a death threat, knocked the Federal Government for not doing much to tackle the scourge.

     She advocated Modern Comprehensive Care to drive the development of a holistic approach to management through medical and non-medical teams.

     Akinsete also stressed the need for a “concerted effort of both federal and state governments as well as international agencies to come up with a strategic plan for the management of SCD as well as financing.”

     Governments at all levels, according to her, should allot an appreciable percentage of budgets for the “creation of a comprehensive health care for those living with sickle cell disorder.”

  • APC crisis: Will the next chairman be ex-governor?

    APC crisis: Will the next chairman be ex-governor?

    With the current friction rocking the ruling All Progressives Congress (APC) in which the National Chairman of the party, Senator Abdullahi Adamu, and the National Secretary, Iyiola Omisore were forced to resign, Deputy Editor EMMANUEL OLADESU writes that stakeholders are worried that party has not been able to get its acts together.

    etween 2014 and this year, the All Progressives Congress (APC) has produced five chairmen. It underscored a sort of leadership instability. Four of them are former governors. One is a serving governor.

     The Progressive Governors’ Forum is a potent force in the party. The governors are party leaders at the state level. It is a very powerful force that cannot be sidelined in any critical party deliberations and decision-making.

    Today, apart from other governors in the Senate, President Bola Tinubu, Vice-President Kashim Shettima, Senate President Godswill Akpabio and Secretary to the Government of the Federation are former governors.

     Akande

       Following the fusion of the legacy parties-the defunct Action Congress of Nigeria (ACN), All Nigeria Peoples Party (ANPP), Congress for Democratic Change (CPC), new Peoples Democratic Party (nPDP) and a faction of the All Progressives Congress Grand Alliance (UPGA)-to form APC, Chief Adebisi Akande, former governor of Osun State, became the Interim National Chairman.

    His successors are Chief John Odigie-Oyegun, Third Republic governor of Edo State, Comrade Adam Oshiomhole, former governor of Edo State, Mai Mala Buni, governor of Yobe State who served as National Caretaker Chairman and Senator Abdullahi Adamu, former governor of Nasarawa State.

    Apart from Akande, the tenures of other chairmen were marred with crises of varying proportions.

    The former Osun State Governor vacated the interim leadership after laying the foundation.

       Odigie-Oyegun

    Despite the objection to Odigie-Oyegun’s bid by the CPC caucus, led by Muhammadu Buhari, apparently due to past disagreements when they were in the ANPP, the leaders of ACN insisted that he should succeed Akande.

     Under Odigie-Oyegun, the party was not in one accord. An early sign of discord was the mismanagement of the Kogi crisis. On the eve of the governorship polls, the candidate, former Governor Abubakar Audu, who was coasting home to victory, died. His running mate, James Faleke, was shoved aside. Before some top party leaders could even agree to campaign for the Audu/Faleke ticket, they demanded appearance fees.

     The political family battled with predictable constraints and self-inflicted wounds. For four years, the ruling party was beset with leadership failure due to inaction, aloofness, lip service to the cause of unity and personalisation of power by party officers.

    Many founding fathers had cried out over the style of the chairman, who they perceived as a divisive factor. There were protests over the obvious exclusion of the founding fathers from party affairs. Many members and followers were taken aback when the party could not hold its mid-term convention four years after.

     After winning presidential power, no concrete attempts were made to really embark on party reforms. The gulf among members of the defunct legacy parties was not closed. The chairman was not perceived as a symbol of unity.

     Not only did the APC fail the two critical tests of party supremacy and party discipline, after becoming a ruling party, it also failed to lay an example for smaller parties in crisis resolution.

     Also, the legislative/executive feud, the governor/senators face-off in some states and the governor/ministers tango in others, further reinforcing the protracted division. Although the APC had the majority in the National Assembly, passage of budgets was a herculean task.

     Many party officers also worked at cross-purpose at the national level. The National Executive Council (NEC) and National Working Committee (NWC) meetings were not held regularly. So weak were the party organs that they could not resolve the conflict between the presidency and the parliament, although the president and majority of legislators belonged to the ruling party. The APC Board of Trustees (BoT) was not constituted. The party caucus was helpless.

     Alarmed at the drift, one of the founding fathers, Bola Ahmed Tinubu, who is now president, cried out that the Odigie-Oyegun was not ready for the task of reconciling warring chieftains across the troubled chapters.

     When former President Buhari later asked the former Lagos governor to take up the assignment, Tinubu also said that Oyegun was trying to frustrate the process.

     To analysts, APC’s ratings had nosedived among Nigerians, because the party was in disarray. In lamentation, members started yearning for a credible and formidable alternative. After checkmating a tenure extension bid, the party organised a national convention.

     However, Odigie-Oyegun was brought back to head a committee that organised screening for presidential aspirants last year. The goal was to arrive at a consensus candidate. Tinubu objected to the idea, saying that he could only embrace the option if he would become the beneficiary.

      Oshiomhole

    Three candidates, namely former Governors Sunday Osunbor, Clement Ebri and Adams Oshiomhole were contestants. But, Oshiomhole, who was backed by Tinubu and other governors, was chosen after the other two stepped down.

     Oshiomhole came with a mission to reform the platform. But, his supporters-the governors-later turned against him because he stepped on their toes. He was accused of highhandedness.

     The former chairman also did not find it easy at home. His governor, Godwin Obaseki, turned the heat against him. The national chairman was suspended by his ward. The crisis reached a peak, following the affirmation of the suspension of the chairman by Justice Danlami Senchi of an Abuja Federal High Court. The court asked Oshionhole to step down, pending the determination of the substantive suit by the Edo State chapter seeking his removal.

     Oshiomole succeeded Odigie-Oyegun in July 2018. He inherited a platform where party supremacy and discipline had reached their lowest ebb.  Oshiomhole rubbed shoulders with opposition foes and positioned APC as a party to beat. But, he also demystified members who considered themselves demigods.

    A good illustration was his fight with the former governor of Imo State, Senator Rochas Okorocha, who wanted to impose a relative, Uche Nwosu, as governorship candidate.

     A similar drama unfolded in Ogun State when former Governor Ibikunle Amosun wanted to hand over the baton to one of his followers, Adekunle Akinlade.

     If Amosun had consented to a democratic primary and mobilised support for his anointed candidate across the three zones as an incumbent, Akinlade would probably have defeated Prince Dapo Abiodun at the primary.

    The chairman also made a concerted effort to pacify the Zamfara warlords, but without success. The crisis in Zamfara was a fallout of the rift between former Governor Abdulaziz Yari and Senator Kabir Marafa over party congresses. Oshiomhole’s attempt to resolve the feud only fetched him more animosity.

    According to observers, APC enjoyed a certain degree of decorum when Oshiomhole assumed the reins. Although he meant well for the party, he was misunderstood, majorly because as a combative labour leader and fighter, he could not adjust easily to political prevarication, diplomacy and condescension.

    To prove that the party was supreme, the former chairman wielded the big stick. He suspended Governors Amosun and Rotimi Akeredolu. It was unprecedented in APC.

    Oshiomhole attracted a mixture of commendation and condemnation while steering the affairs of the party. He was firm and assertive, unwilling to be subservient to the governors who loathed his style. He was effective and decisive. But, he was also accused of an overbearing attitude.

    Oshiomhole’s confrontational style attracted intra-party enmity and provoked onslaughts by foes. But, his exit in a controversial manner heralded an intra-party logjam.

     The ruling of the court that ousted him came ahead of the next NEC meeting, which should be presided over by Oshiomhole. Going by the constitution of the party, which stipulates that the National Deputy Chairman (South), Senator Abiola Ajimobi, should act as national chairman if there is a temporary leadership vacuum, the former governor, whose selection as deputy chairman had been approved was poised to fill in the seat.

     But, some members of the party endorsed the National Deputy Secretary, Victor Giadom to occupy the seat. The move sparked a constitutional row.

    Buni

    The crisis of succession was temporarily resolved through the setting up of a National Caretaker Committee. It was headed by former National Secretary and Yobe State Governor, Buni.

     The caretaker committee was mandated to reconcile aggrieved chieftains, conduct a party membership registration, organise a convention and persuade aggrieved chieftains to withdraw their cases in court.

     The cardinal decision on the caretaker committee was taken by the NEC, following the President’s proposal at a time the National Caucus was on the sideline. The setting up of the interim leadership may have been a sort of compromise to persuade the warring blocs in the ruling party to sheath their swords.

    The Buni-led Caretaker Committee was representative of the six zones. Buni, former national secretary of the party, was picked to head it because he had insight into the challenges confronting the platform. His selection was accepted by governors who wanted to exert their influence as a dominant bloc. Buni became an absentee governor.

    Other members of the committee were Osun State Governor Isiaka Oyetola (Southwest), former Senate President Ken Nnamani (Southeast), Stella Okorete (Women Representative), Governor Sani Bello (Northcentral), Dr James Lalu (representing physically challenged), and Senator Abubakar Yusuf (representing the Senate).

     Others were Akinyemi Olaide (House of Representatives), former governorship candidate in Bayelsa State David Lyon (Southsouth), Abba Ari (Northwest), Prof. Tahir Mamman (Northeast), Ismail Ahmed (Youth representative) and former Minister of State for Federal Capital Territory (FCT), Senator Akpan Udoedehe, a member of the board of Nigeria Television Authority (NTA), who is Secretary to the committee.

     Buni’s committee was given six-month tenure. Two years after it was set up, not all the motives for setting it up were achieved. Besides, the caretaker committee came under attack for nursing a tenure extension agenda.

    Adamu

      As the days of the caretaker committee were numbered, no fewer than 10 chairmanship aspirants sprang up. They were Senators Tanko Almakura, Sani Musa, Danjuma Goje, Modu Sheriff, George Akume; Abdulaziz Yari, Isa Yuguda, Salihu Mustapha, Sunny Moniedafe and Senator Abdullahi Adamu, who was President Buhari’s choice.

     The former President backed Adamu for the job as a reward for supporting him when he (Adamu) was in the Senate. Adamu’s support for Buhari even earned him a suspension from the Senate when Dr Bukola Saraki was Senate President. Once the President indicated his preference, other aspirants were persuaded to step down.

     As chairman, he was perceived as a Buhari man. His major task as party leader was to organise the presidential primary of the party. While the preponderance of opinion supported zoning, Adamu hurriedly summoned a meeting on the eve of the exercise to announce that the President had anointed Senate President Ahmed Lawan as a candidate.

     However, when governors stormed Aso Villa to verify, the President said he was not a party to the permutation.

     Recently, Adamu also objected to the choice of principal officers of the National Assembly endorsed by the party, describing the announcement as a rumour.

    Last week, the NEC and NWC refused to accept the auditor’s report, following the scrutiny of party finances in the last year.

    Already, Deputy National Chairman Senator Kyari is acting as chairman.

    But, who succeeds Adamu? Will he also be an ex-governor? Will the replacement come from Northcentral as Adamu or from another region?

  • Philanthropist lights up 62 Oyo communities

    Philanthropist lights up 62 Oyo communities

    Some communities in Ilaji in Olorunda-Ogunsola Local Government Area of Oyo State, including Idi-Obi, Kure, Jigan and their environs were seeing electricity for the first time in over 200 years of their existence. It took the efforts of the Chief Executive Officer of Ilaji Hotels and Sports Resort, Dotun Sanusi, to provide electricity for about 62 communities. TAYE ADISA reports.

    or hours on Monday, June 5, 2023, guests from far and near joined the people of Olorunda-Ogunsola as well as Idi-Obi, Kure, Jigan and their environs, in Oyo State, when Governor Seyi Makinde of Oyo State inaugurated the electrification projects embarked upon in the communities by a man that is filled with the milk of human kindness and a revered philanthropist, who is the Chief Executive Officer of Ilaji Hotels and Sports Resort, Dotun Sanusi.

     The road leading to the community, the venue of the event, was literally shut as a huge crowd made their way to the site of the transformer installed by the philanthropist as his contribution to the social well-being of his people. The people that made up the huge crowd were there to behold a spectacle and catch some fun which rarely has been experienced in the community at least for a very long time.

     As electricity came alive when the governor switched on the transformers, the people burst into uncontrollable excitement. There was heavy drumming, singing, trumpeting and breathtaking dance steps by cultural dancers who thrilled guests who had gathered before the arrival of the dignitaries.

     The different talking drums of local drummers of Ilaji released deafening sounds in the effusive eulogistic oration of the man they fondly referred to as Ilaji, even though he originally is the Mogaji (family head) of Ile Olugbade in Ibadan. He also doubles as the Apesinola of Ibadan land.

     To signpost their happiness, residents of the affected communities trooped to the venue in numbers and in colourful attire of the day-an Ankara aso ebi. They danced, dined and wined as they marvel at what one of them called the unrivalled generosity of the Ilaji owner.

     It was all glamour and show of opulence, as an estimated crowd of  20,000 that included the governor’s entourage, traditional rulers, leaders of thought in the communities, community and religious  leaders, members of the benefiting communities, friends and  well-wishers gathered to witness a rare act of charity and benevolence  by one of their own.

     The weather was clement as if nature was exultant with the Mogaji’s magnanimity. It also depicted a natural endorsement of the act of  charity as the sun shone brightly out of the azure sky.

    It could be understood why the people made merry till late into the  night. Many of the communities were seeing electricity for the first  time in over 200 years of their existence. So, for them, it was  welcome to the modern world.

    Chief Abiola Adewale, the Akeweje of Akanran, a retired school  Principal, who supervised the power projects on behalf of Dr Sanusi,  said that the people of Akanran Local Government Area cannot but be  grateful to Baba Ilaji (Sanusi) because he has always come to their  aid.

     He said: “In 2018, the entire Akanran community was thrown into  darkness when electrical equipment was vandalised at Olorunsogo.

     Darkness enveloped the few Akanran that had electricity at the time,  extending to Olorunsogo in Ibadan.

     “We had met a contractor who gave a bill of N70 million and when we  met with Dr Sanusi, he asked whether we wanted money or the power  project. We told him we wanted electricity restored. The following  day, he bought 189 electricity poles and other materials and, within a  short while, the light was restored.”

    That project, according to Chief Adewale, covers Alagbaa; Akanran  Village; Lanlehin; Oluku; Owanran; Alatise and Okugbaja villages.

    Apparently impressed by the speediness with which Dr Sanusi handled the Akanran-Ibadan power problem, the community, again, through Chief Adewale, approached him with a list of communities, many of which have  never seen electricity in over 200 years.

    Two projects were immediately agreed upon, leading to the execution of  the Olorunda-Ogunsola and the Idi-Obi, Kure, Jigan and their environs’  power projects with the electrification of two 300 KVA transformers  installed by Dr Sanusi.

     Adewale listed the communities that would benefit from the   Olorunda-Ogunsola power project  include Aare Alaasa Village,  Oniyangi, Ori Okiti, Ogunniran, Elesu, Daleko and Olubokun. The second  300 KVA transformer fixed for Idi-Obi, Jigan and Kure communities also  covers Alaago, Maye, Akuukutan, Adeitan, Isokan, Seriku, Ashipa,  Ekerin and Idi Ogun villages.

    “Many of these communities have never seen electricity since their  existence,” Chief Adewale said. According to him, the twin electricity  projects have potentially turned around the fortunes of the Ona-Ara  Local Government Area socially, economically and politically.

    “More markets will open; more event centres and more businesses will spring up. It will increase the tax collectable by the local  government and Oyo State. And to land owners, this is a period of  economic boom. The value of land has already increased from N200, 000  to N600, 000 per plot, unlike before when we used to sell an acre for  N150,000.

    “A lot of people prefer to come here and stay rather than stay in the  town and we also know that the power projects will reduce security  threats,” the community leader said.

     He said upon the completion of the twin projects, Dr Sanusi has also  kick-started efforts to electrify more villages located within Ona-Ara  and Ido local government areas of Ibadan land.

    The communities, according to him, include Bioku Alaadun, Tai Village,  Modina, Thy Will (Alaafia loju), Ifetola, Gbeleyi, Alagbaa-Mayo,  Ojugbode, Laduntan and Ifedapo in Ona Ara, while Lasokun-Apata in Ido  Local Government Area has also been listed. “In all, we are targeting  15 transformers for these communities,” he said.

    The Baale of Olorunda-Ogunsola Community, Chief Oluranti Aremu, with  147 villages under his control, said that the communities will ever  remain thankful to Dr Sanusi, whom he called Baba Ilaji, for turning  around the living standards in his area.

    He said: “What we can say is that Baba Ilaji has renewed our lives.

    Ona Ara to d’otun (Ona Ara has been turned around). Before now, the  people of Ona-Ara were regarded as not indigenous to Ona-Ara and only  as farmland.

     “We never had industries here, but with the coming of Ilaji,  everything has changed. We used to only cultivate cassava, maize and  pepper. Now, we have different lifestyles here. There is no difference   between Ona-Ara and the main city.”

    He said that Dr Sanusi has also touched the lives of the people in  different ways, including maintaining the only access road to the  area. “There was a time when the Olorunsogo-Akanran Road was only  accessible by motorcycles and bicycles. Dr Sanusi came to our rescue  and stabilised the road. He spent several millions of Naira doing that  for years. We are thankful to him,” he said.

    On the impact of the electricity projects on the well-being of the  people, Chief Aremu said: “The electrification projects made us happy.

    We have been waiting for years. Our artisans, including rewires,  welders, and others, have all become okada riders. But now, they have started repairing their shops and now businesses such as cold room can even spring up.”

     A representative of the Ori-Okiti Community in Olorunda, Mr. MutiuJimoh, also thanked Baba Ilaji. “Ona-Ara ti d’otun niyen. We thank  God,” he said in a mix of Yoruba and English languages, adding,  however, that the electricity projects were not the only way Dr Sanusi  has touched the lives of the people.

     He added: “Dr Sanusi has remained the lone star around here with  unequalled philanthropy. He always carried out repair works on the  Olorunsogo-Amuloko-Akanran Road before the state government recently  awarded the contract for the construction of the road.”

     But what drives the man who is already becoming popular as today’s  Idameji Ibadan ti won n pe lenikan (One man equal to half of Ibadan  land)?

    The late Ilorin-born Mohammodu Odolaye Aremu popularised the “idameji  Ibadan” concept in his music when he eulogised the late strongman of  Ibadan Politics, Alhaji Lamidi Adedibu.

    According to Odolaye Aremu, in recent history, only two Ibadan sons  have held Ibadan city (state) spellbound, with their control of  politics, power and money. The duo of Adedibu and Alhaji Abdulazeez  Arisekola-Alao were so recognised by the man I will call a poet,  spoken word exponent and musician.

    He, however, declared that Adedibu was the “Idameji Ibadan ti won n pe  lenikan” (one man who is equal to half of Ibadan land).

    Today, not a few who are knowledgeable about the goings on in Ibadan  land and, by extension, Oyo State, would agree that the pedigree of  the Ilaji owner is fast equaling the status of that heraldic emblem as  modelled by Odolaye Aremu.

    Above all, his trade name is Ilaji (half). His touch is visible in  every aspect of Ibadan (Oyo State) life. His Ilaji Resort is always a  beehive of activities, hosting the high, the mighty and the  not-so-high. It is also a tourist location of choice and a sports  complex nurturing youths for all kinds of sports. He is a businessman, an educationist and a top player in the oil industry.

    He is a Mogaji, a high-ranking Chief of Olubadan; he is home with the  traditional institution, Muslims, Christians and traditionalists. He  says he has not joined politics but politicians won’t leave him alone.

    The need to help people live a good life, he says, is the driving  force behind his numerous activities, as he adds that what is today known as Ilaji was originally Oloyo Village in Akanran.

     “Ilaji is the trade name of my mum who hails from Ile Ilaji in the Idi  Arere area of Ibadan,” he said.

    Yes, he agreed, his philanthropy has cost him a fortune. Electrifying  over 62 communities, and maintaining access roads and such efforts  have cost him over N500 million, between 2017 and 2023.

    That notwithstanding, nothing, he said, will deter him from doing more for the people.

    •  Adisa contributed this piece from Ibadan, Oyo State.
  • Not yet uhuru for N24b Ibadan-Osogbo via Iwo road project

    Not yet uhuru for N24b Ibadan-Osogbo via Iwo road project

    Nine months after Oyo and Osun state governors jointly kicked off the reconstruction of the Ibadan-Iwo-Osogbo Road, hopes of commuters, transporters and residents of communities on the routes remain dashed. While the Osun State Government abandoned the project, its Oyo State counterpart has been undertaking the project at a slow pace. Southwest Bureau Chief BISI OLADELE, TOBA ADEDEJI (Osogbo) and YINKA ADENIRAN (Ibadan), capture how stakeholders’ hopes are being dashed and the ill-feelings attending both governments’ seeming failure

    When former Osun State Governor Gboyega Oyetola and his Oyo State counterpart Seyi Makinde jointly flagged off the reconstruction of Ibadan-Iwo-Osogbo Road on October 28 last year, not a few residents and other stakeholders commended them. This was because of the relevance of the road to the economic development of both states.

    The 91-kilometre-long road connects Ibadan with Osogbo through Iwo and also opens access to other towns such as Ede, Ejigbo, Awo and Ile-Ogbo. The fact that both governors decided to cooperate on the reconstruction of the road despite their political party differences also earned them the commendation of residents and other stakeholders.

    Read Also : Breaking: INEC declares APC’s Gboyega Oyetola winner of Osun poll

    The project, therefore, did not only bring smiles to the faces of residents, but also raised their hopes. And their hopes and excitementwere accentuated by the governors’ promise to deliver the road in 18 months.

    Since the road became impassable in the early 1990s, the Federal Government did not bother to rehabilitate it. The implication is that travellers from Lagos to Ibadan opted for the longer route of Ibadan-Gbongan-Odeomu to access Osogbo.

    Those travelling further to towns such as Offa, Erin-Ile and Ijagbo from Lagos and Ibadan had no options but to follow the longer route or face Ilorin, another longer route, to access their destinations.

    Though the Ibadan-Iwo portion was manageable for the 30 years that motorists were traumatized on the route, the Iwo-Osogbo axis, which is in Osun State, was totally impassable. This informed motorists’ decision to opt for the Ibadan-Gbongan-Odeomu-Osogbo route.

    However, robbers took over the road, torturing a few motorists that had no option but to ply it based on their destinations. The Ibadan axis of Ibadan-Iwo axis has been almost fully built up as the capital city expands daily on all sides.

    Since 1993 when signs of abandonment of the road began to manifest, Ibadan has expanded by over 15 kilometres along the road to Iwo. The resultant effect of population increase is high pressure on the Ibadan axis of the road.

    Patching of the portion has been undertaken many times, including carrying out a dual carriageway of the road by the administration of former Governor Rashidi Ladoja. But, it never solved the problem outright. It was obvious that only a reconstruction or large-scale rehabilitation was needed to make the road suitable and long-lasting.

    The above factors were reasons the two governors decided to make history by jointly reconnecting the two states for huge economic benefits. But the change in government in Osun State negatively impacted this noble goal.

    The Osun section of the road, which is 55 kilometres long, was awarded for N11.3 billion, while the 36-kilometre Ibadan-Iwo axis was awarded by the Oyo State Government for N12.5 billion.

    Checks by The Nation on the road recently revealed that the Osun State section of the project has been abandoned for months. It was gathered that Oyetola’s administration had mobilised the contractor with 30 per cent of the cost before he left office on November 28, last year.

    The contractor moved to the site and commenced work from the Osogbo end of the road. The road is yet to be fixed from Dele-Yes-Sir to some parts close to Ede Junction, but the section from Ede Junction to Awo Junction has been rehabilitated.

    The contractor seemed to have abandoned his equipment at Kibiti Village, though the road has been scrapped and graded for rehabilitation. At a village close to Iwo via Oriolowo Farms, there were heaps of granite on the road which were meant for the construction of culverts, among others.

    Culverts have been completed on the portion of the road close to Iwo, but work is yet to commence on the main road. The portion of the road at Asamu Village has also been abandoned after it was graded and there were heaps of granite on the road.

    Similarly, the Odo-Oba axis in Iwo, which links Oyo State, has been abandoned. Though the contractor has sand-filled some waterlogged areas of the road, the axis is not very motorable despite the work done.

    Rehabilitation of the road stopped months after the administration of  Governor Ademola Adeleke commenced. Sources close to the contractor hinted that work might not continue on the road because of the change of government and the fear that he may not be paid by the present  administration if he continues with the rehabilitation.

    In a chat, the Oluwo of Iwo, Oba Abdulrasheed Akanbi, lamented the abandonment of the road, especially the axis that links Oyo State with Osun. He warned that political considerations should not be the reason to stop the project.

    Oba Akanbi said: “Work has stopped on the road. I don’t know what happened. I have mobilised my subjects to return to the road as we used to do before for repair but it is not enough. It seems that they are working on the road from Osogbo to Iwo, but they have left the portion that links Osun with Oyo. The portion of the boundary with Oyo State is the worst.

    “I plead with the government to ensure that they complete the road.

    They should not stop rehabilitation of the road because of politics.

    Iwo is the most marginalised community in the whole of Osun State because nothing is coming here at all.

    “Nobody is trying to help us, only our road is like ‘we don’t care about Iwo.’ It is like we are being dealt with intentionally. I don’t know why. It seems we are just unlucky and nobody wants to do anything for us.”

    Efforts to get reactions from the Spokesperson of the Osun State Governor, Olawale Rasheed, failed. He promised to respond to our inquiries which he never did.

    In the same way, residents along the Ibadan portion of Ibadan-Iwo Road are currently groaning because of the pains inflicted by the slow pace of work on the project.

    Since the contractor moved to the site, the company has been doing a scanty job, touching several aspects of the road reconstruction but never completing many. The idea, it was learnt, was to maintain a presence on the road to create the impression that the government was faithful to its promise.

    Yet, nine months after the commencement of work, no portion of the road has been fully completed. Breaking of bridges and closing of a  lane at some portions is worsening the experience of road users who go and return to work daily. They are telling tales of woes, blaming Governor Makinde for the poor execution of the project.

    The Chairman of Sule Kokoko Landlords’ Association, Mr. Olalere Akinlolu, whose large community perches behind Oyo State Hajj Camp,

    Olodo, believes that the governor deceived them to get their votes in the March 18 governorship election by his promise to deliver the road on schedule.

    He told The Nation that Makinde, during his campaign in January and February, gained massive support of people living along the route by his promise but that he has reneged on his promise of the road project after winning the election.

    Akinlolu said: “It seems our governor deceived us to get our votes for his re-election. That is the way we view him now in our community. He promised that the road would be completed in 18 months, but nothing meaningful has been done.

    “When the election was three weeks away, we began to see workmen on site; we didn’t know that he wanted to use it to get our votes. After the election, we just discovered that the project was terribly slowed down. The condition of the road is terrible now.

    “The contractor has been on and off. What they are doing now is patching the road. We are going through hell right now, particularly because of the rains. The work is going on too slowly, and we don’t know why. There is no sign that the road will be ready in nine months’ time.”

    Akinlolu appealed to Makinde to pay closer attention to the project by relieving the pains of hundreds of thousands of residents using it.

    “We appeal to our governor to, please speed up work on the road project. Let him fulfil his promise so that people will take him seriously next time,” he said.

    The Nation, however, gathered that the slow pace of work by the contractor was due to poor funding.

    When contacted, the state government said the idea of abandoning the Ibadan-Iwo-Osogbo Road project would not arise in any circumstance, expressing commitment to the successful completion of the project because of its benefits to users.

    Makinde’s Chief Press Secretary (CPS), Mr. Sulaimon Olanrewaju, made the clarification while speaking to The Nation. He said although the road is a Federal Government one, Governor Makinde as well as his Osun State counterpart, Ademola Adeleke, were committed to seeing the project through within the shortest possible time.

    Olanrewaju said the recent downpour has led to a slow pace of work on the project site. He further explained that the contractor handling the project has moved tractors and other earthmoving equipment to the site and had commenced work with the digging of drainage of the Iwo-Road, Monatan axis down to Iyana Church-Olodo area but has experienced a slow pace due to the rains.

    He appealed to the residents in the axis to exercise patience, assuring that palliative work will commence soon in order to ease the hardship of motorists. His words: “The road is a federal road, but last year, the governments of Oyo and Osun states agreed to fix the road.

    “So, we are already working on that. If you go on that road, you will  see that some parts of the roads are already being worked on. Already, the drainage systems are being fixed. Caterpillars and earthmoving equipment and tractors have been mobilised to the site.

    “All we are waiting for is for the rain to recede. Once the rains go down, work will commence on the road in earnest. So, I plead with our people to exercise patience. Later in the year, hopefully, by September or October, work will resume and before long, that project will be completed.”

    On palliatives to ease hardship experienced by road users, the CPS said: “Efforts are on to make the road passable in order to reduce the pains of road users on the axis occasioned by the downpour. I’m sure that soon, something will be done to make the road more accessible pending when the main work will commence.

    “That the project will be abandoned is not an option for Governor Seyi Makinde. The governor, just like his counterpart in Osun State, is concerned about what will benefit the people of the state. Yes, the motorway is a federal one, but those plying it are indigenes of Oyo and Osun states, among others. So, they have agreed to work on it.”

    The contractor handling the Oyo State axis of the project, Peculiar Ultimate Concerns Limited, moved to the site in February. When The Nation visited the site on Iwo Road, Ibadan en route Iyana-Church, Olodo, Lalupon-Ejioku to Erunmu axis, it was observed that preliminary works had begun in major parts of the road.

    As at the time of the visit, badly-damaged parts of the stretch had received some palliative measures. Stone-based works have been done around Foodco, Vanguard, Monatan, Owu Crown, 7Up, Iyana Church, Olodo, Ejioku, Lalupon and Erunmu, among other parts of the Ibadan axis of the road.

    The Nation also observed that drainage, culverts and kebbs have been laid on major parts of the flood-prone axis of the road.

    Additionally, Atlantic carpet, a 6-by-4 cover, is also being worked on at Olodo to help channel heavy water flow that had led to flooding of the axis over the years.

    A motorist, Kola Adebiyi, commended the government for the idea to dualise the road, especially the Olodo part that leads to Erunmu. He said years of untold hardship caused by the terrible state of the road had led to the underdevelopment of areas along that axis despite its large population.

    A commercial cab operator, Mr. Bolaji Adeeyo, said the hardship being experienced as a result of ongoing road projects must be addressed. He lamented that it’s even more painful to stay in traffic for long at a time the price of fuel is now between N500 and N550 per litre. Stakeholders in the two states are hopeful that the two governors will fulfil their promise to deliver the project in the next nine months.

  • Setting a new benchmark in education standard

    Setting a new benchmark in education standard

    Many have decried the country’s deteriorating education standard – a crisis traceable to many factors, including poor funding and lack of planning or bad implementation of plans. But the situation appears to be changing in Nasarawa State where renewed zeal on the part of the state government is gradually changing the fortune of the state’s education status. LINUS OOTA reports

    The deteriorating quality of education in Nigeria is known to everyone. But this appears unacceptable in Nasarawa State where the state government has put forth some modest interventions in the education sector.

     In the last four years, education sector has experienced a major improvement in terms of improved funding for schools, supply of modern learning facilities and renovation of schools. On assumption of office in 2019, Governor Abdullahi Sule, in his declaration speech, emphasised his determination to reposition the education sector. “Not only would there be the provision of facilities or an atmosphere that is conducive to teaching and learning, but there must be qualified teachers that would mean our schools which are in dire need of teachers to fill in the deficit of staff,” he said.

     With the firm belief that education is not only the best legacy to bequeath to the children, but one of the strongest tools to end poverty and hunger, the state government has vowed to always invest heavily in education at all levels and also provide an enabling environment for private operators to thrive and make the system an all-inclusive one. To this end, the state government constituted a committee that is saddled with the responsibility of conducting a baseline survey of all primary and secondary schools.

     The Prof Mohammed Isa Kida-led committee did what many described as a thorough job and presented a report which revealed some of the immediate, short and long-term requirements of the state’s 1, 391 primary schools and 419 secondary schools made up of 19 junior secondary schools and 320 senior secondary schools out of which 29 are boarding. Specifically, the committee said about 90 per cent of the schools are comatose.

     Disturbed by this damning report, Governor Sule declared a state of emergency in public schools and extended an invitation to philanthropists and other public-spirited individuals to collaborate with the state government in addressing the rot in the education sector. The state government then articulated a development agenda in which basic education was given special attention in view of its critical role in societal growth and development. The state government drafted an Education Development Plan (EDP) geared towards providing a fertile ground for the administration to establish its vision and mission in turning around the education sector.

     Four years down the line, the state has achieved what many other states can only dream of, especially in the basic education sub-sector. In pursuit of his avowed commitment to the provision of an improved learning environment to boost basic education, Governor Sule approved and released the state matching grant to access the Universal Basic Education (UBE) intervention funds from 2019 to date.

     Determined to reposition primary education, considering the fact that it remains the bedrock upon which the secondary and tertiary levels stand, the state government ensured that the sector is accorded top priority. To this end, the state ensures prompt payment of counterpart funds to enable the state to access the Universal Basic Education funds. The state government released 2016, 2017, 2018, 2019, 2020, 2021 and 2022 counterpart funds and hence has the needed funding from the Universal Basic Education Commission to embark on massive construction, renovations, remodelling and building of more classrooms and provision of instructional materials.

     In the circumstances, the state government has made some giant leaps, including the fact that 62 projects were completed, 197 classrooms built and no less than four perimeter fences constructed in primary schools using the 2016 UBE intervention fund (3rd and 4th quarter).

     Furthermore, the 2017 UBE intervention fund was also used to construct no fewer than 222 projects, all of which have been completed, with no less than 553 classrooms provided, 14 perimeter fences constructed, 36 toilets built, 50 hand-pump boreholes provided to consolidate the fight against open defecation and to strengthen hygiene. Additionally, 1,200 units of furniture comprising metal and wood were provided to ease learning for the pupils.

     The 2018 UBE intervention fund was judiciously utilised as 153 projects were completed with 542 classrooms provided, in addition to 60 toilets and 18 hand-pump boreholes sunk and 50 perimeter fences constructed with 16,000 units of furniture provided. The state government used the 2019 UBE intervention fund to provide 342 projects, 780 classrooms, 52 toilets, 25 boreholes, and 10,000 units of furniture provided. Expectedly, the 2020, 2021 and 2022 UBE intervention funds were judiciously used to consolidate on its determination to provide basic infrastructures across its schools.

     During the past four years (2019-2023), the state has remained committed to boosting education through improved budgetary allocation to the sector. In 2020, the state budgeted N26.3 billion for education. The amount was increased to N35.4 billion in 2021, while in the 2022 budget, the administration earmarked N31. 9 billion for the sector. In the 2023 budget, the state government had to jerk up the budgetary allocation for the education sector to N37. 43 billion. Adequate provisions were made for the training and retraining of teachers; just as the state has continued to collaborate with other development partners such as the Global Partnership on Education (GPE) that are working to advance education in the state.

     In the past four years, about 1,876 teachers have been trained in digital literacy. Apart from manpower development, the government has been making a mark in the area of aggressive renovation of and provision of teaching and learning materials. The evidence of the key interventions is found in the renovation of many primary and secondary schools, payments of scholarship allowances, the release of huge sums of money for boarding school feeding programs, promotion of over 10,000 teachers and engage over 5,000 teachers.

     There is also a renewed focus on renovations, expansion and provision of tools and other equipment to technical colleges in the state as demonstrated by the utilisation of the UBE intervention funds and the state budgetary allocation to the education sector. It is also on record that the state government is collaborating with UNICEF on a back-to-school initiative, a special project for which the pilot phase is being implemented in 370 primary schools in Lafia and Nasarawa local government areas. There is also an emphasis on training and retraining of teachers as exemplified by the frequent capacity-building workshops, some of which were done in collaboration with development partners.

     “In our commitment to provide an environment conducive to teaching and learning, our administration sustained the payment of counterpart funds to UBEC, which facilitated the construction of more classroom blocks, rehabilitation and equipping of primary and junior secondary schools in the state. In furtherance to the administration’s belief in education as the transformative tool of the individual and overall societal development, the government formalised the appointments of the 2,250 engaged teachers, while over 3,000 teaching and non-teaching members of staff were recruited for secondary and tertiary institutions.

    “The screening exercise for the recruitment of another batch of the 1,000 teachers is ongoing. Our efforts and investments have culminated in providing an environment conducive to teaching and learning, including infrastructure, improved conditions of service and industrial peace for all our tertiary institutions to provide quality education to all students. The state government has done its best within the past four years to strengthen all tertiary institutions in the state to continue to deliver on its mandates. Education remains crucial to prosperity from generation to generation,” the governor said recently.

    The state government said evidence has shown that all these efforts have yielded tremendous results using improvement in the performance of public school students in the state in WASSCE from less than 45 per cent to 85 per cent within the past four years of his administration and also its zero target projects on out-of-school-children, and good welfare package for teachers, among others as yardsticks. The ultimate goal of the administration is to ensure that all students in Nasarawa State received a quality education in an environment conducive to teaching and learning.

     In order to ensure academic activities at the Nasarawa State University are not brought to a halt due to strike actions as a result of non-payment of salaries, the state government has taken over the responsibility of paying the salaries of members of staff of the university. To improve the availability of technical and medical manpower in the state, the government has approved the establishment of two faculties at the state university in Keffi: the faculty of engineering and the faculty of medical sciences. The administration equally donated N20 million to facilitate the eventual take-off of the faculty of engineering of the Nasarawa State University in the 2020/2021 academic session.

    The government said that the establishment of the faculties of health sciences and engineering would assist in providing the needed manpower to develop the state in those vital areas. Other interventions in the education sector include payment of bursary allowances to students, and the upgrade of the College of Agriculture Lafia to the College of Agriculture, Science and Technology. During the period under review, a lot of students of Nasarawa origin were awarded scholarships to study at the Zaria Academy, while others were to study for higher education at the International University of Africa, Sudan.

     The immediate past commissioner for education in Nasarawa State (2019-2023), Hajia Fati Sabo, said that the number one service on the priority list of the state government is to render to the people the provision of a quality and value-driven education system. She said that the state government, in the past four years, strongly believed that making the education sector the number one priority, adding that the education sector has been repositioned not only to be about learning outcomes where students strive just to pass examinations, but how to prepare them well with the right knowledge and skills that will enable them to overcome the odds and make a great impact even before graduation.

     “The administration has demonstrated commitment to fulfilling the promises with such indices as yearly increase in budgetary allocation; completion of outstanding projects to the highest possible standards; investing in new schools; construction of new school buildings and upgrade of existing ones; and integrating technology into teaching and learning processes. The massive human and capital infrastructural development embarked upon by the administration could not be glossed over. The governor’s passion in the education sector is visible and can be seen also by the expansion of the state University in Keffi. I’m glad you know that the governor is working in the education sector as well.

    “Apart from the transformational innovation, the administration has also prioritised teachers’ welfare by improving their welfare. With the priority the Governor has given the education sector in his first tenure, there is no gainsaying that the governor would do more in his second term so that Nasarawa State becomes the best in Northern Nigeria,” she said.

  • Brain drain: Niger’s health system on crutches

    Brain drain: Niger’s health system on crutches

    Brain drain has impacted negatively on Nigeria’s health system. The loss of highly skilled healthcare professionals to institutions outside the shores of the country has resulted in the shortage of doctors, nurses and other healthcare workers. This has given rise to reduced access to quality healthcare for many Nigerians. This has also contributed to the country’s high maternal and child mortality rates. In this report, JUSTINA ASISHANA examines how this has affected health service delivery in Niger State.

    Patients who patronize general hospitals across Niger State face longer waiting hours before they are attended to by doctors. This is because hundreds of physicians, nurses and other health workers have left the country in search of greener pastures. Those who have left the state’s health sector in the past five years have not been replaced by the state.

     In most of the hospitals, patients would wait for hours on end without being attended to by medical personnel.

     Wasted man-hours are not the only issue experienced by patients. Some of them have suffered the consequences of a lack of doctors, which led to death.

     The scarcity of doctors affects everyone, irrespective of their social standing. One such case is the accident involving a former Commissioner and Chief Press Secretary to the former Niger State Governor, Danladi Ndayebo, and a Special Assistant to the Senate President, Mohammed Isa. The two were involved in an accident along Minna-Suleja Road on November 6, 2022, and sustained serious injuries.

     Reports have it that the duo died due to what relatives said was medical negligence. Admitted to the hospital at 9.30 p.m., the victims were not attended to until 12 hours later when, at the intervention of a former Secretary to the Niger State Government, Kuta Yahaya, they were taken to the emergency unit.

     In a petition dated November 22, 2022, the family of the late Danladi Ndayebo, through their lawyer, Mohammed Maude, said that the members of staff of the hospital left him unattended to for 12 hours after he was admitted to the emergency unit of the hospital, adding that he died without any form of treatment administered on. His colleague who was in the same accident ward with him died a few days later at an Abuja hospital where he had been transferred for medical treatment.

     A few of the hospitals boast of modern equipment donated by companies in the oil and gas industry (NNPC, Chevron, IPPG and PETAN) as part of the COVID-19 Intervention in Niger State. But, even where the equipment is available, there are limited or no skilled personnel to operate the equipment. This is what happened to Ndayebo. The hospital he was taken to has x-ray machines and a scanner which would have helped in determining the nature of the injuries he suffered and would have informed the medical intervention required.

     However, there was no one to operate these machines and he was left unattended to for hours.

     Lack of equipment is a common problem in most hospitals but even where such equipment exists; it might be of no use because there are no trained personnel to man them. This is why patients still have to go to private hospitals and laboratories to access and use such equipment.

    Impact of brain drain on health services

    There is no recommended World Health Organisation (WHO) doctor-to-patient-ratio, but the Nigeria Medical Association (NMA) said that Nigeria has a doctor-to-patient-ratio of 1:5,000. But in Niger State, the doctor-to-patient-ratio is 1:20,000, according the Executive Medical Director of the Niger State Hospitals Management Boardthe Executive Medical Director of the Niger State Hospitals Management Board, Dr. Ibrahim Abdullahi.

     Last year, NMA expressed concern that the doctor-patient ratio is getting worse. The inadequate supply of skilled human resources presented a serious obstacle to the provision of effective health services and created a serious manpower crisis in most health facilities in the country.

     The Association, which is the umbrella body for practising doctors, said that the lack of trained personnel had placed undue stress on the existing health workers, exposing them to overwork. The shortage of skilled health workers has worsened the already poor doctor-patient ratio, while the nurse-to-patient ratio in Nigeria is 1:1,660.

     The National Association of Nigeria Nurses and Midwives (NANNM) has also stated that between 2017 and 2022, 57,000 nurses migrated from Nigeria for greener pastures abroad. The majority of Nigerian physicians want to emigrate and top among the reasons for leaving the country are poor remuneration, rising insecurity and inadequate diagnostic facilities.

    The Hospitals Management Board said that only a few of the doctors who leave resign formally as the majority of them leave without notifying the Board.

    The Commissioner of Health, Niger State, Dr Muhammed Makunsidi, said that 3,000 health workers, including medical doctors, pharmacists, nurses, laboratory scientists and midwives have left the state government-owned hospitals to seek employment in other states in Nigeria or outside the country.

    Our members collapse at work-NANNM

    While patients complain of the poor services being rendered at healthcare centres, nurses and midwives complain of being overburdened with work which has seen several of them collapse while on duty. In order to resolve this issue, hospital administrators have resorted to merging wards for the remaining members of staff to cope.

     For example, at the General Hospital Sabon Wuse, the female and paediatric wards have been merged so that the few nurses available can cope with the number of patients.

     Due to the shortage, a nurse in Niger State is performing the duty of five nurses, according to the Niger State Chairman of NANNW, Anna Simon.

     Simon stated that from 2015 to 2023, more than 400 nurses had left Niger State. Some left for abroad or other states in Nigeria, while others have either died or retired.

     She said that in 2016, there were about 1,000 nurses. But currently, there are less than 600 nurses working in the state government-owned hospitals, even as she added that no efforts are being made to fill the vacant positions.

       Push and pull factor

     Simon and the Niger State Chairman of NMA, Yusuf Muhammad, conceded that the main reasons their members were going abroad or other states to work were pay, insecurity, and lack of equipment and infrastructure.

     Muhammad said that the N5, 000 paid to health workers for hazard allowance was a pittance compared to the work they do. The last salary review was in 2010 when health workers were given a 180 per cent salary increment to boost their standard of living.

     Announcing the increase at the time, the then state’s Commissioner for Health, Mohammed Sani Adamu, said the money was to be paid out in instalments with 70 per cent of the money being paid out immediately, while the rest was to be paid out in phases. Since then, there have been no salary increments and health workers who have received promotions do not get pay increments.

     In 2016, then Governor Alhaji Abubakar Sani Bello declared a state of emergency in the health sector, lifted a ban on employment and approved a 100 per cent increase in pay for all health workers. But this has not stemmed the tide of skilled personnel leaving the state.

     On average, entry-level salaries for doctors vary depending on the state. Medical doctors earn between N150, 000 and N200, 000. Registrars earn between N220, 000 and N300, 000; Senior Registrars, between N260, 000 and N470, 000, and Consultants, between N450, 000 and 800,000.

     Under the current Consolidated Medical Salary Structure (CONMESS) agreement, which took effect in April 2019, the least salary a medical staff working in the Federal Public Service can earn under the new minimum wage is N1,667,601. This salary scale applies to the members of the medical staff at Level 1 Step 1.

     On the other hand, the highest-paid member of the medical staff will earn N8,517,892. This applies to the very senior and experienced medical staff at Level 7 Step 9.

     Niger State is one of five states in the country where doctors and other health workers are being paid at the same level as those working for the Federal Government.

     Despite this and other measures aimed at encouraging doctors to remain in the state, the exodus of its trained medical personnel continues.

     While doctors in Niger State have incomes that match those employed by the Federal Government, their salaries still compare poorly against what doctors in the countries many of them emigrate to earn.

     Demands for better salaries and working conditions have led to frequent industrial actions which regularly disrupt health services.

     On May 17, doctors began a strike to demand the immediate payment of the 2023 Medical Residency Training Fund (MRTF), tangible steps on the “upward review” of the CONMESS and payment of all salary arrears owed its members since 2015.

     They also want the immediate massive recruitment of members of clinical staff in the hospitals and the abolishment of the bureaucratic limitations to the immediate replacement of doctors and nurses who had left the system.

     Besides salary, insecurity is another reason for the mass exodus of health workers from Niger State to other states in Nigeria or abroad. Doctors, nurses, and pharmacists have been killed or abducted and held for ransom by bandits who have taken over 12 local government areas in the state, leading to thousands of people being displaced and hundreds dead.

    ‘We are working hard to address the trend’

     Coincidentally, at the time the UK imposed the ban on the recruitment of health personnel, the Nigeria House of Representatives passed the Medical and Dental Practitioners Act (Amendment) Bill, that, if enacted into law, will compel medical and dental graduates trained in Nigeria to offer five years of compulsory service in Nigeria before being granted a licence to practise. They can then move abroad if they wish.

     The bill has been rejected by the doctors who have gone to court to challenge it, saying it contravenes their fundamental human rights of movement and association.

     The doctors claimed that the bill would not stem the brain drain unless the government addresses the challenges such as poor working conditions, lack of medical equipment and facilities, and insecurity. The revocation of the Bill is among the demands they made during the recent strike action.

     The Executive Medical Director, Niger State Hospitals Management Board, Dr Ibrahim Abdullahi, said while the state could not stop skilled health workers from leaving the state’s health system, it was committed to improving their working conditions and welfare.

     “We are currently paying salaries on the same level as the Federal Government,” he said.

     The state is also committed to recruiting more specialists to increase the current 33 specialist doctors. Other plans include having the state university accredited to establish a medical course and a teaching hospital and the hiring of 400 additional health workers and 450 midwives.

      On when this will take effect, Abdullahi was non-committal about when the medical personnel would be hired as these were just proposals.

     Efforts by the government to upgrade health facilities and improve access by residents will amount to nothing if doctors and other skilled health personnel continue to exit for better opportunities in Nigeria and abroad. Until the state stops this trend, it will not be able to meet its goal of providing adequate resources for effective and efficient healthcare delivery.

    • This article was produced as part of the Aftershocks Data Fellowship (22-23) with support from the Africa Women’s Journalism Project (AWJP) in partnership with The ONE Campaign and the International Centre for Journalists (ICFJ).

     

  • DisCos push for tariffs hike unsettles manufacturers

    DisCos push for tariffs hike unsettles manufacturers

    In 2022 alone, an unstable and unfairly priced electricity supply forced manufacturers to spend a whopping N144.5 billion on self-generated electricity. This was about an 87 per cent increase from the N77.22 billion splashed on the same expenditure head in 2021 and with a shortage of electricity supply said to be resulting in an economic loss estimated at N10.1 trillion annually, or two per cent share of Nigeria’s GDP. The Federal Government, with its plan to hike electricity tariffs by 40 per cent from July 1, may have touched the raw nerves of electricity consumers. Assistant Editor CHIKODI OKEREOCHA examines why manufacturers, businesses, organised labour and Nigerians are kicking.

    Stakeholders in the Nigerian Electricity Supply Industry (NESI), including manufacturers and other private sector operators, organised labour, and indeed, Nigerians were literarily over the moon with excitement following the June 9 signing of the Electricity Act 2023 by President Bola Tinubu.

     Their excitement was understandable. For one, the stakeholders saw the Act as an all-inclusive framework which will serve as a guide to the decentralisation of the power sector in order to encourage private investment and build a competitive electricity market.

    Under the Electricity Act 2023, which replaced the Electricity and Power Sector Reforms Act 2005, states, private companies and individuals are now legally permitted to generate, transmit and distribute electricity.

     The Act also said without a license, but an undertaking, any private individual or company is empowered to generate not more than 1MW (Megawatt) of electricity in aggregate at a location.

    The Act, which gladdened the hearts of electricity consumers, also said subject to the determination of the Nigerian Electricity Regulatory Commission (NERC), private individuals or companies can sign an undertaking to distribute electricity of not more than 100 Kilowatts in aggregate at a location.

    It further said power generation licensees are obligated to meet renewable energy generation as prescribed by the NERC. NERC will only surrender regulatory responsibilities to states with established electricity market laws.

     An obviously excited and expectant Director-General of Manufacturers’  Association of Nigeria (MAN), Segun Ajayi-Kadir said the Electricity

     Act 2023, if well implemented, promises to be a major game-changer for the manufacturing sector.

     While noting that the Act will address the numerous constraints within the power sector, he added that it has favourable implications for the manufacturing sector, including reduced cost of alternative energy, competitive and lower electricity tariffs and improvement in the inflow of Foreign Direct Investment (FDI).

     Other expected mouth-watering deliverables, according to Ajayi-Kadir include an increase in Internally Generated Revenue (IGR), improved infrastructure and less tax burden on manufacturers, more investment in renewables, backward integration and energy security. 

    The possibility of a stable power supply and proper planning that will translate to improved performance of the manufacturing sector and, by extension, the economy, based on the Act also buoyed the hopes of private sector operators.

     But those were as far as excitement and expectations encouraged by the  Act goes. They appear to have been shorty-circuited by widespread panic and outcry, forced by the latest development in the electricity supply industry namely, a proposed 40 per cent upward review of electricity tariffs from July 1, 2023.

    The crux of the matter is that while the envisaged turnaround in the fortunes of stakeholders in the industry, propelled by the Electricity

     Act 2023 was in line with the current administration’s optimistic beginning, the planned 40 per cent tariff hike from July 1, 2023, may have put such optimism in the cautious mode.

     President Tinubu had, during his inauguration on May 29, announced a number of fiscal and monetary policy changes and decisions, including the immediate stoppage of the fuel subsidy regime and the unification of the hitherto multiple Naira exchange rates, among other fiscal and monetary policy measures.

     However, while these policy changes, including the June 9 signing of the Electricity Act 2023, resonated with manufacturers in particular and the business community in general, the proposed 40 per cent upward review of electricity tariffs from July 1 has not gone down well with private sector operators, including organised labour.

    The stage for what may become a major confrontation among the  Federal Government and manufacturers, including private operators, the labour movement and civil society was set when the NERC reportedly confirmed that a review of the Multi-Year Tariff Order (MYTO) was ongoing and will be implemented from July 1.

    According to a NERC senior official, the Commission is mandated to review the tariff twice a year. It is statutory. Until the outcome, which one cannot presume, I cannot say it will be an upward or downward review as it could go either way.

    The major determinants of the review, The Nation learnt, are mostly inflation rate, the Naira/Dollar exchange rate, and the price of gas.

     However, much as stakeholders across the electricity value chain are on the same page on the need to urgently salvage the country’s beleaguered power sector, especially the electricity supply industry, they argued that doing so through an increase in electricity tariff at this time is tantamount to overkill; that is it’s a bitter pill to swallow by struggling private sector operators and Nigerians generally.

     Why manufacturers, businesses are kicking

       Ajayi-Kadir put the grouse of manufacturers and other private operators’ planned tariff hike in perspective when he lamented that in the last eight years, electricity tariff has been increased by 186 per cent, noting that the fact that the government itself is owing N75 billion in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.

     He, therefore, said it was highly concerning for manufacturers to witness the electricity tariff skyrocketing beyond the present embattling high prices, starting July 1.

     “A 40 per cent hike at this time is simply outrageous. As a matter of fact, a further rise in electricity tariff could lead to several unsavoury consequences,” he said.

     For instance, the MAN D-G, in a statement, which was made available to The Nation at the weekend, said a higher electricity tariff will directly increase the cost of production for manufacturers.

     “Already, we have energy constituting between 28-40 per cent in the cost structure of manufacturing industries. You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery and chemicals manufacturing,” he said.

     Manufacturers’ profit margins, Ajayi-Kadir also warned, will reduce.

     According to him, a spike in the electricity tariff will erode the profit margin of manufacturers and reduce their ability to expand operations and create new jobs.

     That is not all. The MAN D-G also raised the alarm over the high probability of activities paralysis.

    “This is a definite possibility among Small and Medium-sized Enterprises (SMEs) which are unable to accommodate the higher price,” he said.

    The government’s collectable revenue, he further said, will also take the hit. This is so because the hike in electricity tariff will reduce manufacturers’ profitability and, by extension, the quantum of taxes and fees payable to the three tiers of government.

     “Manufacturers remain the largest income taxpayer in the country.

     Therefore, in the event of poor income generation due to high costs of production, the government purse will suffer,” Ajayi-Kadir stated.

     He also said with the increased cost of production that will come with the tariff hike, manufacturers will ultimately pass on the additional cost to consumers of their products, and this will increase the cost of locally made products in the market and complicate the rising inflation rate.

     Also, an increase in electricity tariff will reduce the purchasing capability of consumers, and one of the resulting effects will be a fall in demand and a recession of manufacturing activities over time.

     The MAN boss also warned that the sector’s competitiveness will definitely worsen.

    He said: “The high cost of products will make locally-produced items less competitive when compared with imported alternatives.

     “This is also true of exports, as Nigerian products may find it more difficult to penetrate foreign markets. Such a move will restrict our export earnings because it will be impossible to compete with counterparts in the global trading environment.”

     The high probability of outward investment is also a source of worry for manufacturers.

     According to Ajayi-Kadir, some manufacturing industries may consider shifting production to other economies with lower electricity tariffs and guaranteed availability.

     Economy hobbled by N10.1trillion yearly loss to electricity shortage

    Much of the fears currently being expressed by manufacturers and other businesses over the proposed 40 per cent increase in electricity tariff stemmed from the huge financial toll the crisis in the electricity supply industry has been taking on them and the economy generally.

     According to Ajayi-Kadir, the absence of a stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers. The worrisome development, he said, compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources.

     He, however, expressed regrets that the available alternative energy sources such as diesel have become expensive, with manufacturers spending, on average, N144.5 billion on sourcing alternative energy in 2022 alone.

     This was up from N77.22 billion spent in 2021, translating to about an 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year.

     Manufacturers also lamented that the shortage of electricity supply has been taking a huge toll on the economy, with an annual loss valued at about N10.1 trillion or two per cent share of Nigeria’s Gross Domestic Product (GDP).

     The Association lamented that the unfavourable situation in the power sector has positioned Nigeria among the worst countries to do business in, with a rank of 171 out of 190. This is also one of the prominent reasons for the relocation of some MAN members to some countries where the electricity supply is relatively stable.

     Before news of the upward adjustment in electricity tariff filtered in, manufacturers were optimistic that if fully implemented to the letter, the new Electricity Act 2023 will see a drastic fall in the cost of alternative energy they incur, and this will, in turn, boost their profit margin.

     MAN, as an advocacy Association, has always pushed for the need to charge cost-reflective electricity tariffs to avoid extortion of its members hence, they envisaged that the new Act will usher in a regime of competition and lower electricity tariffs.

     “It is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff, considering the healthy price competition it will bring between the states and private investors,” Ajayi-Kadir had said.

     Sadly, however, his excitement and expectations, including those of other private operators, organised labour and Nigerians generally, may be short-lived if the government goes ahead to implement the proposed plan to jerk up electricity tariff by as much as 40 per cent effective July1.

     Rather than increasing the tariff on a mere 4,000MW to meet all revenue needs of stakeholders in the electricity supply industry, manufacturers said they expect that the Federal Government and the

     NERC will ensure improvement in electricity generation, transmission and distribution, leading to adequate and reliable electricity supply.

     “The government should ensure that, at least, 90 per cent of electricity consumers are metered to ensure consumption reflective electricity bill payment and formulate electricity policies that will aid investment in the energy industry to increase generation capacities that will usher in large-scale production of electricity and ensure effective implementation of the recent Electricity Act (2023),” manufacturers demanded.

    Organised labour also kicks

    The planned hike in electricity tariffs has also not gone down well with Organised labour. The Nigeria Labour Congress (NLC) has cautioned the Federal Government to pull the breaks on the proposed hike, warning that if implemented, it will increase the burden on Nigerians.

     The NLC President, Comrade Joe Ajaero, in a statement last week, hinged the labour movement’s opposition against the move on the recent removal of petrol subsidy and the unification of the Naira exchange rates, which, according to him, put many Nigerians under intense financial pressure.

      Comrade Ajaero said: “The plan to increase electricity tariff by 40 per cent by July 1 is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones. “The massive increase is explained away as a response to the over 100 per cent increase in the pump price of premium motor spirit (PMS).

     Even with details revealing a movement in inflation from 16.9 per cent to 22.41 per cent (threatening to needle 30), and a shift in the exchange rate from N441 to N750, Ajaero said the NLC believes that these figures are not just for this “reckless proposed tariff increase.

    “The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic. The service providers, in spite of sundry support, have not been able to meet the threshold of 5,000 megawatts,” Ajaero said, adding that “coupled with this, there have been surreptitious increases without notice in violation of statutes.”

    The NLC President also drew attention to what he considered the inherent risk in the new regime of tariffs. According to him, there is no control, implying that by August, consumers will pay new rates. Besides, when other products or service-rendering entities come up with new prices or rates, the ordinary Nigerian would have been badly hit.

     Ajaero said the rate at which proponents of the tariff increase are going is “highly combative and combustible” “….the market economies which the market fundamentalists seek to emulate have in place socio-economic safeguards which we do not have.

     “In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety,” the labour unionist said.

     Will the government heed the advice of organised labour, manufacturers and other concerned electricity consumers and shelve the implementation of the proposed tariff hike? Will manufacturers’ call for the diversification of energy sources and intensifying infrastructure investment in the power sector hit the right chord in the eras of the authorities?

     Rather than go ahead with the planned tariff hike, will the government, working with the NERC, eradicate outrageous bills by closing the metering gap through the liberalisation of ultimate users’ access to effective mass metering?

     Also, will the administration ensure the connection of all consumers to the electricity grid to avoid free-riding and unfair charges on the few connected consumers, while working on efforts to increase the electricity supply base in order to distribute the total cost among a high number of consumers at a much-lower unit cost?

     More importantly, perhaps, will the government engage in extensive and intensive consultations with all stakeholders, particularly the manufacturers and focus on measures that will salvage the sector and halt the trend of the shutdown of factories, knowing the implications and the multiplier effects on employment and the economy?

     While answers to some of these questions are in the realm of conjecture, they are pertinent, particularly for the manufacturing sector, which, at present, is the engine of growth, but is still struggling due to an inclement production environment.

     Therefore, the consensus of manufacturers and other private operators and Nigerians is that care should be taken to avoid introducing burdensome measures that will further strangulate the manufacturing sector and the whole economy.

  • Manufacturers, businesses fret over proposed hike in electricity tariff

    Manufacturers, businesses fret over proposed hike in electricity tariff

    In 2022 alone, an unstable and unfairly priced electricity supply forced manufacturers to spend a whopping N144.5 billion on self-generated electricity. This was about an 87 per cent increase from the N77.22 billion splashed on the same expenditure head in 2021 and with a shortage of electricity supply said to be resulting in an economic loss estimated at N10.1 trillion annually, or two per cent share of Nigeria’s GDP. The Federal Government, with its plan to hike electricity tariffs by 40 per cent from July 1, may have touched the raw nerves of electricity consumers. Assistant Editor CHIKODI OKEREOCHA examines why manufacturers, businesses, organised labour and Nigerians are kicking.

    Stakeholders in the Nigerian Electricity Supply Industry (NESI), including manufacturers and other private sector operators, organised labour, and indeed, Nigerians were literarily over the moon with excitement following the June 9 signing of the Electricity Act 2023 by President Bola Tinubu.

     Their excitement was understandable. For one, the stakeholders saw the

     Act as an all-inclusive framework which will serve as a guide to the decentralisation of the power sector in order to encourage private investment and build a competitive electricity market.

    Under the Electricity Act 2023, which replaced the Electricity and

     Power Sector Reforms Act 2005, states, private companies and individuals are now legally permitted to generate, transmit and distribute electricity.

     The Act also said without a license, but an undertaking, any private individual or company is empowered to generate not more than 1MW (Megawatt) of electricity in aggregate at a location.

    The Act, which gladdened the hearts of electricity consumers, also said subject to the determination of the Nigerian Electricity Regulatory Commission (NERC), private individuals or companies can sign an undertaking to distribute electricity of not more than 100 Kilowatts in aggregate at a location.

    It further said power generation licensees are obligated to meet renewable energy generation as prescribed by the NERC. NERC will only surrender regulatory responsibilities to states with established electricity market laws.

     An obviously excited and expectant Director-General of Manufacturers’  Association of Nigeria (MAN), Segun Ajayi-Kadir said the Electricity

     Act 2023, if well implemented, promises to be a major game-changer for the manufacturing sector.

     While noting that the Act will address the numerous constraints within the power sector, he added that it has favourable implications for the manufacturing sector, including reduced cost of alternative energy, competitive and lower electricity tariffs and improvement in the inflow of Foreign Direct Investment (FDI).

     Other expected mouth-watering deliverables, according to Ajayi-Kadir include an increase in Internally Generated Revenue (IGR), improved infrastructure and less tax burden on manufacturers, more investment in renewables, backward integration and energy security. 

    The possibility of a stable power supply and proper planning that will translate to improved performance of the manufacturing sector and, by extension, the economy, based on the Act also buoyed the hopes of private sector operators.

     But those were as far as excitement and expectations encouraged by the  Act goes. They appear to have been shorty-circuited by widespread panic and outcry, forced by the latest development in the electricity supply industry namely, a proposed 40 per cent upward review of electricity tariffs from July 1, 2023.

    The crux of the matter is that while the envisaged turnaround in the fortunes of stakeholders in the industry, propelled by the Electricity

     Act 2023 was in line with the current administration’s optimistic beginning, the planned 40 per cent tariff hike from July 1, 2023, may have put such optimism in the cautious mode.

     President Tinubu had, during his inauguration on May 29, announced a number of fiscal and monetary policy changes and decisions, including the immediate stoppage of the fuel subsidy regime and the unification of the hitherto multiple Naira exchange rates, among other fiscal and monetary policy measures.

     However, while these policy changes, including the June 9 signing of the Electricity Act 2023, resonated with manufacturers in particular and the business community in general, the proposed 40 per cent upward review of electricity tariffs from July 1 has not gone down well with private sector operators, including organised labour.

    The stage for what may become a major confrontation among the  Federal Government and manufacturers, including private operators, the labour movement and civil society was set when the NERC reportedly confirmed that a review of the Multi-Year Tariff Order (MYTO) was ongoing and will be implemented from July 1.

    According to a NERC senior official, the Commission is mandated to review the tariff twice a year. It is statutory. Until the outcome, which one cannot presume, I cannot say it will be an upward or downward review as it could go either way.

    The major determinants of the review, The Nation learnt, are mostly inflation rate, the Naira/Dollar exchange rate, and the price of gas.

     However, much as stakeholders across the electricity value chain are on the same page on the need to urgently salvage the country’s beleaguered power sector, especially the electricity supply industry, they argued that doing so through an increase in electricity tariff at this time is tantamount to overkill; that is it’s a bitter pill to swallow by struggling private sector operators and Nigerians generally.

     Why manufacturers, businesses are kicking

       Ajayi-Kadir put the grouse of manufacturers and other private operators’ planned tariff hike in perspective when he lamented that in the last eight years, electricity tariff has been increased by 186 per cent, noting that the fact that the government itself is owing N75 billion in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.

     He, therefore, said it was highly concerning for manufacturers to witness the electricity tariff skyrocketing beyond the present embattling high prices, starting July 1.

     “A 40 per cent hike at this time is simply outrageous. As a matter of fact, a further rise in electricity tariff could lead to several unsavoury consequences,” he said.

     For instance, the MAN D-G, in a statement, which was made available to The Nation at the weekend, said a higher electricity tariff will directly increase the cost of production for manufacturers.

     “Already, we have energy constituting between 28-40 per cent in the cost structure of manufacturing industries. You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery and chemicals manufacturing,” he said.

     Manufacturers’ profit margins, Ajayi-Kadir also warned, will reduce.

     According to him, a spike in the electricity tariff will erode the profit margin of manufacturers and reduce their ability to expand operations and create new jobs.

     That is not all. The MAN D-G also raised the alarm over the high probability of activities paralysis.

    “This is a definite possibility among Small and Medium-sized Enterprises (SMEs) which are unable to accommodate the higher price,” he said.

    The government’s collectable revenue, he further said, will also take the hit. This is so because the hike in electricity tariff will reduce manufacturers’ profitability and, by extension, the quantum of taxes and fees payable to the three tiers of government.

     “Manufacturers remain the largest income taxpayer in the country.

     Therefore, in the event of poor income generation due to high costs of production, the government purse will suffer,” Ajayi-Kadir stated.

     He also said with the increased cost of production that will come with the tariff hike, manufacturers will ultimately pass on the additional cost to consumers of their products, and this will increase the cost of locally made products in the market and complicate the rising inflation rate.

     Also, an increase in electricity tariff will reduce the purchasing capability of consumers, and one of the resulting effects will be a fall in demand and a recession of manufacturing activities over time.

     The MAN boss also warned that the sector’s competitiveness will definitely worsen.

    He said: “The high cost of products will make locally-produced items less competitive when compared with imported alternatives.

     “This is also true of exports, as Nigerian products may find it more difficult to penetrate foreign markets. Such a move will restrict our export earnings because it will be impossible to compete with counterparts in the global trading environment.”

     The high probability of outward investment is also a source of worry for manufacturers.

     According to Ajayi-Kadir, some manufacturing industries may consider shifting production to other economies with lower electricity tariffs and guaranteed availability.

     Economy hobbled by N10.1trillion yearly loss to electricity shortage

    Much of the fears currently being expressed by manufacturers and other businesses over the proposed 40 per cent increase in electricity tariff stemmed from the huge financial toll the crisis in the electricity supply industry has been taking on them and the economy generally.

     According to Ajayi-Kadir, the absence of a stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers. The worrisome development, he said, compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources.

     He, however, expressed regrets that the available alternative energy sources such as diesel have become expensive, with manufacturers spending, on average, N144.5 billion on sourcing alternative energy in 2022 alone.

     This was up from N77.22 billion spent in 2021, translating to about an 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year.

     Manufacturers also lamented that the shortage of electricity supply has been taking a huge toll on the economy, with an annual loss valued at about N10.1 trillion or two per cent share of Nigeria’s Gross Domestic Product (GDP).

     The Association lamented that the unfavourable situation in the power sector has positioned Nigeria among the worst countries to do business in, with a rank of 171 out of 190. This is also one of the prominent reasons for the relocation of some MAN members to some countries where the electricity supply is relatively stable.

     Before news of the upward adjustment in electricity tariff filtered in, manufacturers were optimistic that if fully implemented to the letter, the new Electricity Act 2023 will see a drastic fall in the cost of alternative energy they incur, and this will, in turn, boost their profit margin.

     MAN, as an advocacy Association, has always pushed for the need to charge cost-reflective electricity tariffs to avoid extortion of its members hence, they envisaged that the new Act will usher in a regime of competition and lower electricity tariffs.

     “It is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff, considering the healthy price competition it will bring between the states and private investors,” Ajayi-Kadir had said.

     Sadly, however, his excitement and expectations, including those of other private operators, organised labour and Nigerians generally, may be short-lived if the government goes ahead to implement the proposed plan to jerk up electricity tariff by as much as 40 per cent effective July1.

     Rather than increasing the tariff on a mere 4,000MW to meet all revenue needs of stakeholders in the electricity supply industry, manufacturers said they expect that the Federal Government and the

     NERC will ensure improvement in electricity generation, transmission and distribution, leading to adequate and reliable electricity supply.

     “The government should ensure that, at least, 90 per cent of electricity consumers are metered to ensure consumption reflective electricity bill payment and formulate electricity policies that will aid investment in the energy industry to increase generation capacities that will usher in large-scale production of electricity and ensure effective implementation of the recent Electricity Act (2023),” manufacturers demanded.

    Organised labour also kicks

    The planned hike in electricity tariffs has also not gone down well with Organised labour. The Nigeria Labour Congress (NLC) has cautioned the Federal Government to pull the breaks on the proposed hike, warning that if implemented, it will increase the burden on Nigerians.

     The NLC President, Comrade Joe Ajaero, in a statement last week, hinged the labour movement’s opposition against the move on the recent removal of petrol subsidy and the unification of the Naira exchange rates, which, according to him, put many Nigerians under intense financial pressure.

      Comrade Ajaero said: “The plan to increase electricity tariff by 40 per cent by July 1 is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones. “The massive increase is explained away as a response to the over 100 per cent increase in the pump price of premium motor spirit (PMS).

     Even with details revealing a movement in inflation from 16.9 per cent to 22.41 per cent (threatening to needle 30), and a shift in the exchange rate from N441 to N750, Ajaero said the NLC believes that these figures are not just for this “reckless proposed tariff increase.

    “The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic. The service providers, in spite of sundry support, have not been able to meet the threshold of 5,000 megawatts,” Ajaero said, adding that “coupled with this, there have been surreptitious increases without notice in violation of statutes.”

    The NLC President also drew attention to what he considered the inherent risk in the new regime of tariffs. According to him, there is no control, implying that by August, consumers will pay new rates. Besides, when other products or service-rendering entities come up with new prices or rates, the ordinary Nigerian would have been badly hit.

     Ajaero said the rate at which proponents of the tariff increase are going is “highly combative and combustible” “….the market economies which the market fundamentalists seek to emulate have in place socio-economic safeguards which we do not have.

     “In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety,” the labour unionist said.

     Will the government heed the advice of organised labour, manufacturers and other concerned electricity consumers and shelve the implementation of the proposed tariff hike? Will manufacturers’ call for the diversification of energy sources and intensifying infrastructure investment in the power sector hit the right chord in the eras of the authorities?

     Rather than go ahead with the planned tariff hike, will the government, working with the NERC, eradicate outrageous bills by closing the metering gap through the liberalisation of ultimate users’ access to effective mass metering?

     Also, will the administration ensure the connection of all consumers to the electricity grid to avoid free-riding and unfair charges on the few connected consumers, while working on efforts to increase the electricity supply base in order to distribute the total cost among a high number of consumers at a much-lower unit cost?

     More importantly, perhaps, will the government engage in extensive and intensive consultations with all stakeholders, particularly the manufacturers and focus on measures that will salvage the sector and halt the trend of the shutdown of factories, knowing the implications and the multiplier effects on employment and the economy?

     While answers to some of these questions are in the realm of conjecture, they are pertinent, particularly for the manufacturing sector, which, at present, is the engine of growth, but is still struggling due to an inclement production environment.

     Therefore, the consensus of manufacturers and other private operators and Nigerians is that care should be taken to avoid introducing burdensome measures that will further strangulate the manufacturing sector and the whole economy.

  • Manufacturers, businesses fret over proposed hike in electricity tariff

    Manufacturers, businesses fret over proposed hike in electricity tariff

    In 2022 alone, an unstable and unfairly priced electricity supply forced manufacturers to spend a whopping N144.5 billion on self-generated electricity. This was about an 87 per cent increase from the N77.22 billion splashed on the same expenditure head in 2021 and with a shortage of electricity supply said to be resulting in an economic loss estimated at N10.1 trillion annually, or two per cent share of Nigeria’s GDP. The Federal Government, with its plan to hike electricity tariffs by 40 per cent from July 1, may have touched the raw nerves of electricity consumers. Assistant Editor CHIKODI OKEREOCHA examines why manufacturers, businesses, organised labour and Nigerians are kicking.

    Stakeholders in the Nigerian Electricity Supply Industry (NESI), including manufacturers and other private sector operators, organised labour, and indeed, Nigerians were literarily over the moon with excitement following the June 9 signing of the Electricity Act 2023 by President Bola Tinubu.

     Their excitement was understandable. For one, the stakeholders saw the

     Act as an all-inclusive framework which will serve as a guide to the decentralisation of the power sector in order to encourage private investment and build a competitive electricity market.

    Under the Electricity Act 2023, which replaced the Electricity and

     Power Sector Reforms Act 2005, states, private companies and individuals are now legally permitted to generate, transmit and distribute electricity.

     The Act also said without a license, but an undertaking, any private individual or company is empowered to generate not more than 1MW (Megawatt) of electricity in aggregate at a location.

    The Act, which gladdened the hearts of electricity consumers, also said subject to the determination of the Nigerian Electricity Regulatory Commission (NERC), private individuals or companies can sign an undertaking to distribute electricity of not more than 100 Kilowatts in aggregate at a location.

    It further said power generation licensees are obligated to meet renewable energy generation as prescribed by the NERC. NERC will only surrender regulatory responsibilities to states with established electricity market laws.

     An obviously excited and expectant Director-General of Manufacturers’  Association of Nigeria (MAN), Segun Ajayi-Kadir said the Electricity

     Act 2023, if well implemented, promises to be a major game-changer for the manufacturing sector.

     While noting that the Act will address the numerous constraints within the power sector, he added that it has favourable implications for the manufacturing sector, including reduced cost of alternative energy, competitive and lower electricity tariffs and improvement in the inflow of Foreign Direct Investment (FDI).

     Other expected mouth-watering deliverables, according to Ajayi-Kadir include an increase in Internally Generated Revenue (IGR), improved infrastructure and less tax burden on manufacturers, more investment in renewables, backward integration and energy security. 

    The possibility of a stable power supply and proper planning that will translate to improved performance of the manufacturing sector and, by extension, the economy, based on the Act also buoyed the hopes of private sector operators.

     But those were as far as excitement and expectations encouraged by the  Act goes. They appear to have been shorty-circuited by widespread panic and outcry, forced by the latest development in the electricity supply industry namely, a proposed 40 per cent upward review of electricity tariffs from July 1, 2023.

    The crux of the matter is that while the envisaged turnaround in the fortunes of stakeholders in the industry, propelled by the Electricity

     Act 2023 was in line with the current administration’s optimistic beginning, the planned 40 per cent tariff hike from July 1, 2023, may have put such optimism in the cautious mode.

     President Tinubu had, during his inauguration on May 29, announced a number of fiscal and monetary policy changes and decisions, including the immediate stoppage of the fuel subsidy regime and the unification of the hitherto multiple Naira exchange rates, among other fiscal and monetary policy measures.

     However, while these policy changes, including the June 9 signing of the Electricity Act 2023, resonated with manufacturers in particular and the business community in general, the proposed 40 per cent upward review of electricity tariffs from July 1 has not gone down well with private sector operators, including organised labour.

    The stage for what may become a major confrontation among the  Federal Government and manufacturers, including private operators, the labour movement and civil society was set when the NERC reportedly confirmed that a review of the Multi-Year Tariff Order (MYTO) was ongoing and will be implemented from July 1.

    According to a NERC senior official, the Commission is mandated to review the tariff twice a year. It is statutory. Until the outcome, which one cannot presume, I cannot say it will be an upward or downward review as it could go either way.

    The major determinants of the review, The Nation learnt, are mostly inflation rate, the Naira/Dollar exchange rate, and the price of gas.

     However, much as stakeholders across the electricity value chain are on the same page on the need to urgently salvage the country’s beleaguered power sector, especially the electricity supply industry, they argued that doing so through an increase in electricity tariff at this time is tantamount to overkill; that is it’s a bitter pill to swallow by struggling private sector operators and Nigerians generally.

     Why manufacturers, businesses are kicking

       Ajayi-Kadir put the grouse of manufacturers and other private operators’ planned tariff hike in perspective when he lamented that in the last eight years, electricity tariff has been increased by 186 per cent, noting that the fact that the government itself is owing N75 billion in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.

     He, therefore, said it was highly concerning for manufacturers to witness the electricity tariff skyrocketing beyond the present embattling high prices, starting July 1.

    Read Also: NLC urges FG to shelve electricity tariff hike

     “A 40 per cent hike at this time is simply outrageous. As a matter of fact, a further rise in electricity tariff could lead to several unsavoury consequences,” he said.

     For instance, the MAN D-G, in a statement, which was made available to The Nation at the weekend, said a higher electricity tariff will directly increase the cost of production for manufacturers.

     “Already, we have energy constituting between 28-40 per cent in the cost structure of manufacturing industries. You can imagine the impact on manufacturing industries that are energy-intensive such as metal processing, heavy machinery and chemicals manufacturing,” he said.

     Manufacturers’ profit margins, Ajayi-Kadir also warned, will reduce.

     According to him, a spike in the electricity tariff will erode the profit margin of manufacturers and reduce their ability to expand operations and create new jobs.

     That is not all. The MAN D-G also raised the alarm over the high probability of activities paralysis.

    “This is a definite possibility among Small and Medium-sized Enterprises (SMEs) which are unable to accommodate the higher price,” he said.

    The government’s collectable revenue, he further said, will also take the hit. This is so because the hike in electricity tariff will reduce manufacturers’ profitability and, by extension, the quantum of taxes and fees payable to the three tiers of government.

     “Manufacturers remain the largest income taxpayer in the country.

     Therefore, in the event of poor income generation due to high costs of production, the government purse will suffer,” Ajayi-Kadir stated.

     He also said with the increased cost of production that will come with the tariff hike, manufacturers will ultimately pass on the additional cost to consumers of their products, and this will increase the cost of locally made products in the market and complicate the rising inflation rate.

     Also, an increase in electricity tariff will reduce the purchasing capability of consumers, and one of the resulting effects will be a fall in demand and a recession of manufacturing activities over time.

     The MAN boss also warned that the sector’s competitiveness will definitely worsen.

    He said: “The high cost of products will make locally-produced items less competitive when compared with imported alternatives.

     “This is also true of exports, as Nigerian products may find it more difficult to penetrate foreign markets. Such a move will restrict our export earnings because it will be impossible to compete with counterparts in the global trading environment.”

     The high probability of outward investment is also a source of worry for manufacturers.

     According to Ajayi-Kadir, some manufacturing industries may consider shifting production to other economies with lower electricity tariffs and guaranteed availability.

     Economy hobbled by N10.1trillion yearly loss to electricity shortage

    Much of the fears currently being expressed by manufacturers and other businesses over the proposed 40 per cent increase in electricity tariff stemmed from the huge financial toll the crisis in the electricity supply industry has been taking on them and the economy generally.

     According to Ajayi-Kadir, the absence of a stable, effective and fairly priced electricity supply in Nigeria has been a long-standing challenge for manufacturers. The worrisome development, he said, compelled many manufacturing industries to supplement the unreliable electricity supply with alternative energy sources.

     He, however, expressed regrets that the available alternative energy sources such as diesel have become expensive, with manufacturers spending, on average, N144.5 billion on sourcing alternative energy in 2022 alone.

     This was up from N77.22 billion spent in 2021, translating to about an 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year.

     Manufacturers also lamented that the shortage of electricity supply has been taking a huge toll on the economy, with an annual loss valued at about N10.1 trillion or two per cent share of Nigeria’s Gross Domestic Product (GDP).

     The Association lamented that the unfavourable situation in the power sector has positioned Nigeria among the worst countries to do business in, with a rank of 171 out of 190. This is also one of the prominent reasons for the relocation of some MAN members to some countries where the electricity supply is relatively stable.

     Before news of the upward adjustment in electricity tariff filtered in, manufacturers were optimistic that if fully implemented to the letter, the new Electricity Act 2023 will see a drastic fall in the cost of alternative energy they incur, and this will, in turn, boost their profit margin.

     MAN, as an advocacy Association, has always pushed for the need to charge cost-reflective electricity tariffs to avoid extortion of its members hence, they envisaged that the new Act will usher in a regime of competition and lower electricity tariffs.

     “It is of great delight that this new Act fits like a glove as it will help actualise a cost–reflective tariff, considering the healthy price competition it will bring between the states and private investors,” Ajayi-Kadir had said.

     Sadly, however, his excitement and expectations, including those of other private operators, organised labour and Nigerians generally, may be short-lived if the government goes ahead to implement the proposed plan to jerk up electricity tariff by as much as 40 per cent effective July1.

     Rather than increasing the tariff on a mere 4,000MW to meet all revenue needs of stakeholders in the electricity supply industry, manufacturers said they expect that the Federal Government and the

     NERC will ensure improvement in electricity generation, transmission and distribution, leading to adequate and reliable electricity supply.

     “The government should ensure that, at least, 90 per cent of electricity consumers are metered to ensure consumption reflective electricity bill payment and formulate electricity policies that will aid investment in the energy industry to increase generation capacities that will usher in large-scale production of electricity and ensure effective implementation of the recent Electricity Act (2023),” manufacturers demanded.

    Organised labour also kicks

    The planned hike in electricity tariffs has also not gone down well with Organised labour. The Nigeria Labour Congress (NLC) has cautioned the Federal Government to pull the breaks on the proposed hike, warning that if implemented, it will increase the burden on Nigerians.

     The NLC President, Comrade Joe Ajaero, in a statement last week, hinged the labour movement’s opposition against the move on the recent removal of petrol subsidy and the unification of the Naira exchange rates, which, according to him, put many Nigerians under intense financial pressure.

      Comrade Ajaero said: “The plan to increase electricity tariff by 40 per cent by July 1 is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones. “The massive increase is explained away as a response to the over 100 per cent increase in the pump price of premium motor spirit (PMS).

     Even with details revealing a movement in inflation from 16.9 per cent to 22.41 per cent (threatening to needle 30), and a shift in the exchange rate from N441 to N750, Ajaero said the NLC believes that these figures are not just for this “reckless proposed tariff increase.

    “The issue of capacity to pay and quality of service delivery is not only germane but superior to any rationalisation by market logic. The service providers, in spite of sundry support, have not been able to meet the threshold of 5,000 megawatts,” Ajaero said, adding that “coupled with this, there have been surreptitious increases without notice in violation of statutes.”

    The NLC President also drew attention to what he considered the inherent risk in the new regime of tariffs. According to him, there is no control, implying that by August, consumers will pay new rates. Besides, when other products or service-rendering entities come up with new prices or rates, the ordinary Nigerian would have been badly hit.

     Ajaero said the rate at which proponents of the tariff increase are going is “highly combative and combustible” “….the market economies which the market fundamentalists seek to emulate have in place socio-economic safeguards which we do not have.

     “In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety,” the labour unionist said.

     Will the government heed the advice of organised labour, manufacturers and other concerned electricity consumers and shelve the implementation of the proposed tariff hike? Will manufacturers’ call for the diversification of energy sources and intensifying infrastructure investment in the power sector hit the right chord in the eras of the authorities?

     Rather than go ahead with the planned tariff hike, will the government, working with the NERC, eradicate outrageous bills by closing the metering gap through the liberalisation of ultimate users’ access to effective mass metering?

     Also, will the administration ensure the connection of all consumers to the electricity grid to avoid free-riding and unfair charges on the few connected consumers, while working on efforts to increase the electricity supply base in order to distribute the total cost among a high number of consumers at a much-lower unit cost?

     More importantly, perhaps, will the government engage in extensive and intensive consultations with all stakeholders, particularly the manufacturers and focus on measures that will salvage the sector and halt the trend of the shutdown of factories, knowing the implications and the multiplier effects on employment and the economy?

     While answers to some of these questions are in the realm of conjecture, they are pertinent, particularly for the manufacturing sector, which, at present, is the engine of growth, but is still struggling due to an inclement production environment.

     Therefore, the consensus of manufacturers and other private operators and Nigerians is that care should be taken to avoid introducing burdensome measures that will further strangulate the manufacturing sector and the whole economy.