Category: Special Report

  • What Gates Report tells us about our world

    What Gates Report tells us about our world

    The 2021 Gates and Melinda Gates Foundation Report, which is known as the Gatekeepers Report, shows that there are growing gaps in education, millions more people are living in extreme poverty, and more children are missing vaccines. Excerpts:

    Over the past year, it has been impossible to ignore stark disparities not only in who has gotten sick and who has died—but also in who had to go to work, who could work from home, and who lost their jobs entirely. Health inequities are as old as the health systems themselves, but it took a global pandemic to forcefully remind the world of their consequences.

    Millions more in extreme poverty

    For many, the economic impacts of the pandemic continue to be severe and enduring. We know we may seem like unlikely messengers on this topic—we’re two of the most fortunate people on the planet. And the pandemic has made that even more clear. People like us have weathered the pandemic in good shape, while those who are most vulnerable have been hit the hardest and will likely be the slowest to recover. An additional 31 million people around the world have been pushed into extreme poverty as a result of COVID-19. Although men are 70% more likely to die from COVID-19, women continue to be disproportionately affected by the economic and social impacts of the pandemic: This year, women’s employment globally is expected to remain 13 million jobs below the 2019 level—while men’s employment is largely expected to recover to pre-pandemic rates.

    Although variants threaten to undermine the progress we’ve made, some economies are beginning to recover, bringing with them business reopenings and job creation. But recovery is uneven between—and even within—countries. By next year, for example, 90% of advanced economies are expected to regain pre-pandemic per capita income levels, while only a third of low- and middle-income economies are expected to do the same. Poverty reduction efforts are stagnating—and that means nearly 700 million people, the vast majority in low- and middle-income countries, are projected to remain mired in extreme poverty in 2030.

    Growing gaps in education

    We’re seeing a similar story when it comes to education. Before the pandemic, nine out of 10 children in low-income countries were already unable to read and understand a basic text, compared to one in 10 children in high-income countries.

    Early evidence suggests that learning losses will be greatest among marginalized groups. Growing educational disparities were found in wealthy countries, too. In the United States, for example, learning loss among Black and Latino third grade students was, on average, double that of white and Asian American students. And learning loss among third graders from high-poverty schools was triple those of their peers in low-poverty schools.

    More children missing vaccines

    Meanwhile, global routine childhood vaccination rates fell to levels last seen in 2005. Between the start of the pandemic and when health services began to recover in the second half of 2020, more than 30 million children around the world missed their vaccinations—that’s 10 million more because of the pandemic. It’s possible that many of these children will never catch up on doses.

    But here, the data surprised us: A year ago, we had reported that the Institute for Health Metrics and Evaluation was estimating that vaccine coverage would drop 14 percentage points globally in 2020, which would have amounted to 25 years of progress down the drain. But based on more recent data, it looks like the actual drop in vaccine coverage—devastating though it was—was only half that.

    As we continued to sift through the data, it became evident that this was not a fluke: On many key development indicators, the world stepped up over the past year to avert some of the worst-case scenarios.

    Take malaria, for example, which has long been one of the world’s most deeply inequitable diseases: 90% of malaria cases are found in Africa. Last year, the World Health Organization forecasted severe disruptions to essential malaria prevention efforts that could have set progress back 10 years—and result in an additional 200,000 deaths from a preventable disease. That projection spurred many countries to action to ensure that bed nets were distributed and testing and antimalarial drugs remained available. Benin, where malaria is the leading cause of death, even found a way to innovate in the midst of the pandemic: They created a new, digitized distribution system for insecticide-treated bed nets, getting 7.6 million nets into homes across the country in just 20 days.

    They deserve the world’s gratitude.

    Of course, the full extent of the pandemic’s impact on the SDGs will take years to fully understand, as more and better data becomes available. And this data doesn’t diminish the very real suffering the pandemic has caused for people everywhere—far from it. But the fact that we can point to positive signs amid a once-in-a-generation global pandemic is extraordinary. With one hand tied behind their backs, countless individuals, organizations, and countries went above and beyond to innovate, adapt, and build resilient systems, and for that, they deserve the world’s gratitude.

    What the so-called miracle of vaccines shows us

    New vaccines usually take about 10 to 15 years to make. So, the development of multiple high-quality COVID-19 vaccines in less than a year is unprecedented.

    And it’s easy to see why that might seem like a miracle. But in fact, the COVID-19 vaccines are the result of decades of careful investment, policies, and partnerships that established the infrastructure, talent, and enabling ecosystem needed to deploy them so quickly.

    We have scientists around the world to thank for their years of foundational research. One researcher, Hungary’s Dr. Katalin Karikó, dedicated her career to studying messenger RNA, also known as mRNA. For years, her unorthodox ideas failed to gain broad support and funding, and many dismissed the idea that mRNA could be used to make vaccines and therapeutics. But Dr. Karikó persevered. Her story is emblematic of the many scientists whose discoveries—often years in the making—have made it possible for two highly effective mRNA vaccines to be developed in less than one year.

    It’s a gift that will keep on giving: There are already mRNA vaccine candidates in the development pipeline that could finally tackle some of the world’s deadliest diseases, from malaria to cancer.

    Of course, mRNA vaccines aren’t the only R&D success story to come out of this approach.

    The long-term promise of genomic sequencing

    By now, the whole world is keenly aware that SARS-CoV-2, the virus that causes COVID-19, has mutated into increasingly infectious and deadly variants, like delta, as it spreads around the world. Thanks to genomic sequencing—identifying the unique genetic makeup of a virus—scientists have been able to identify and track emerging variants.

    Historically, the majority of the genomic sequencing in the world has taken place in the United States and Europe. Countries without sequencing technology would send viral samples to labs in places like New York and London for genetic analysis—and they’d only get results months later.

    But for the past four years, organizations have been investing in building a genomic surveillance network in Africa, so countries on the continent could sequence viruses like Ebola and yellow fever. The Africa CDC established the Africa Pathogen Genomics Initiative, and when the pandemic hit, the nascent network turned its attention to SARS-CoV-2. The only reason the world knew that the more infectious and deadly beta variant had emerged in South Africa was because the country had invested heavily in R&D—in this case, pairing genomic sequencing capabilities with clinical trials and immunology studies. South Africa’s own Dr. Penny Moore was one of the first scientists to discover that a coronavirus variant identified in South Africa could circumvent the immune system.

    With this information, public health officials around the world could plan accordingly. And South Africa, which has also invested deeply in infrastructure to rapidly and effectively conduct clinical trials, could quickly adjust its vaccine trials. They began working to determine whether COVID-19 vaccines provided sufficient protection against the new variant that would soon spread everywhere.

    It’s insufficient for rich countries to be the only ones with the equipment and resources to sequence viruses.

    It seems obvious that in a globalized world, where people and goods move constantly across borders, it’s insufficient for rich countries to be the only ones with the equipment and resources to sequence viruses. But it took a pandemic to reinforce how important it is to support the ability of low- and middle-income countries to collect and analyze their own data—because it benefits everyone.

    And what’s particularly exciting about Africa’s genomic sequencing network is that the technology works for any pathogen: If the continent is able to keep building the network, it will soon be doing its own disease tracking for long-standing viruses like flu, measles, and polio.

    Scientific innovation, even at a record-breaking pace, isn’t enough on its own. The COVID-19 vaccines are an amazing feat of R&D, but they are most effective when everyone has access to them. The inequities of the past year remind us that this is far easier said than done.

    It’s up to people—from the halls of power to grassroots organizations and neighbourhood groups—to step up to fill the gaps. And this year, it was these dynamic human interventions, when met with previous investments in systems, in communities, and in people, that allowed the world to avoid some of those initial, worst-case predictions.

    Investing in systems

    As we write this, more than 80% of all COVID-19 vaccines have been administered in high- and upper-middle-income countries. Some have secured two to three times the number of doses needed to cover their populations, in case boosters are needed for increasingly infectious variants. Meanwhile, less than 1% of doses have been administered in low-income countries. These inequities are a profound moral outrage—and raise the very real risk that high-income countries and communities will begin to treat COVID-19 as another epidemic of poverty: Not our problem.

    The infrastructure needed to quickly manufacture an additional 15 billion vaccine doses cannot be set up overnight, or even in a year. But India provides an example of what happens when that infrastructure is built up over the long term.

    India has been investing in its health care manufacturing infrastructure for decades—since the country’s independence. The Indian government helped Pune, a city near Mumbai, become a major global manufacturing hub by investing in R&D capacity and local infrastructure, like electricity, water, and transportation. They worked with the World Health Organization to build a regulatory system for vaccines that upheld the strictest international standards for quality, safety, and efficacy. And they partnered with vaccine manufacturers in Pune and other hubs like Hyderabad and our foundation to develop, produce, and export vaccines that tackle the deadliest childhood illnesses, from meningitis to pneumonia to diarrheal diseases.

    Of course, simply having manufacturing capacity wasn’t sufficient to negate the crisis of COVID-19 in India—it’s just one piece of the puzzle—but it is a remarkable feat of progress that today more than 60% of all vaccines sold globally are manufactured on the subcontinent.

    We’ve also seen that countries that have strong government investment in health infrastructure are far better able to proactively track, and in many cases, contain the spread of COVID-19. Long-term investments in eradicating wild polio in lower-income countries have helped countries like Nigeria and Pakistan build one of the largest operational workforces in modern global health. Investing in polio eradication created infrastructure for outbreak response and vaccine administration—which made a critical difference in disease outbreaks from Ebola to COVID-19.

    That’s why long-term investments in health systems are so worthwhile: They are the foundation for emergency disease response. We might not have known which specific pathogen would lead to a once-in-a-generation global pandemic, but the tools to end the pandemic are largely the same as for polio or malaria or other infectious diseases: widespread testing and, when possible, fast and effective treatment and life-saving immunisation.

    Investing in communities

    Some of the most effective interventions we’ve been tracking have happened at a hyperlocal level, headed by leaders who have worked long and hard to earn the trust of their communities—something that cannot be built overnight or in the midst of a crisis.

    Women’s “self-help groups” are common across India as well as other parts of South and South-East Asia. For years, the Indian government and global partners have been investing in these small collectives of women who pool money and work to improve health, education, and other services in their villages.

    When COVID-19 arrived in Bihar, India, home to more than 100 million people, one local self-help group established trust with their neighbours by delivering meals and home-based health care to those who had fallen ill from COVID-19. When vaccines were ready for distribution in their community, these women became a source of information and guidance for those same neighbours who had concerns about vaccine safety. The Bihar government took notice of the work being done at the community level and declared March 8—International Women’s Day—a day to vaccinate women across the state. Nearly 175,000 women took the first dose of the vaccine that week. Building on that success, the government of Bihar is replicating the program, guided by the women of the self-help group.

    And in Senegal, community-based outreach has been key to delivering other vaccines, too.

    Senegal has been one of the success stories of routine immunisation coverage: Before the pandemic, children were immunised against diphtheria, tetanus, and pertussis at similar rates as children in the United States and other high-income countries. But when COVID-19 arrived, fear of infection and misinformation reduced the demand for these vaccines dramatically.

    Social distancing and school closures forced health workers to adapt their outreach strategies. Senegal trained health workers on how to resume immunization safely, while letting local officials adapt outreach strategies to meet local needs. Clinic staff now use immunisation records to identify children who are missing vaccinations and send text message reminders to their families. And they’ve made it easier for those families to respond: The country’s extensive and trusted cadre of community health workers are going home to home to deliver vaccines, and reopened clinics are providing greater flexibility for the location and timing for scheduling catch-up doses.

    In both these examples, solutions for the community came from within. The communities themselves led the way in developing innovative strategies to slow the spread of COVID-19 in ways that worked for their particular localities, and foundations and government partners lent their support. These investments in community building will be worth nurturing long after the pandemic is behind us.

    Investing in women and girls

    We’re seeing new innovations when it comes to how governments address crises, too. Of course, major policies often take years, decades even, to take root and make an impact. But once enacted and implemented, those policies can have far-reaching and long-lasting effects. In many ways, effective policymaking is the ultimate long-term investment.

    Consider the pandemic’s economic gender divide: Even though each country has its own unique story to tell, we’re seeing that in high- and low-income countries alike, women have been harder hit than men by the global recession that was triggered by the pandemic. But—importantly—data also show that the negative effect on women has been smaller in countries that had gender-intentional policies in place prior to the pandemic.

    That’s why we’re so encouraged to see governments around the world putting women at the centre of their economic recovery planning and policymaking. Pakistan expanded its Ehsaas Emergency Cash program to get money to poor households, with women making up two-thirds of the program’s intended recipients. Ehsaas provided emergency cash assistance during the pandemic to nearly 15 million low-income households—42% of the country’s population. And the effects will have a lasting impact: more than 10 million women being brought into the formal financial system for the first time.

    Argentina recently published its first budget with a gender perspective, directing more than 15% of public spending toward programs that target gender inequality. With guidance from a newly appointed director of economy, equality, and gender in the Ministry of Economy, they’ve adopted policies that support women and families, such as establishing 300 new public childcare centers in the country’s poorest neighbourhoods.

    And in the United States, the Hawaiian state government is putting women and girls—as well as Native Hawaiians, immigrants, transgender and nonbinary people, and people living in poverty—at the centre of its economic recovery efforts. The first gender-oriented economic recovery plan in the United States includes proven policies that support women’s long-term economic empowerment, such as paid sick days and family leave, universal childcare, and raising the hourly minimum wage for single mothers.

    We’re eager to see the long-term outcomes from these innovative approaches toward women’s economic empowerment. But even in this early phase, these are encouraging new models of policymaking. These policies won’t just make a difference in the short term; they’ll help ensure greater economic stability the next time a crisis comes around.

  • Africa leaders chart pathway for peace, COVID-19 at Dakar Forum

    Africa leaders chart pathway for peace, COVID-19 at Dakar Forum

    The International Forum for Peace and Security in Africa held at Abdou Diouf International Conference Centre, Dakar, Senegal explored ways to get Africa out of the grip of wars and COVID-19. ADEOLA OGUNLADE reports.

    The two-day event at the International Forum for Peace and Security in Africa held at the Abdou Diouf International Conference Centre, Dakar, Senegal had in attendance prominent African leaders, diplomats, development experts, civilians, military experts, journalists and other delegates around the world. Tagged: Challenges of Africa’s stability and emergence in a post-COVID world, the forum focused on peace and security. The 7th edition buttressed the impact the COVID-19 pandemic had on peace and security and post-COVID recovery.

    Among the participants are Senegalese President Macky Sall, South African President Cyril Ramaphosa, Nigerien President Mohamed Bazoum and Guinea Bissau President Umaro Sissoco Embalo. Also at the conference are the President of the European Council, Mr Charles Michel, the Chairperson of the African Union Commission, Mr Moussa Faki Mahamat and the Minister of the Armed Forces of the French Republic, Florence Parley.

    Sall said Africa must be resilient to combat the adverse effects of a dual health and economic crisis, climate change, the intensification of terrorist attacks and the resurgence of coups d’état.

    He noted that since 2014, the Dakar Forum has been held to diagnose the situation in Africa in order to contribute to the search for solutions to the ills affecting it.

    “This is why African leaders, senior officials, civilian and military experts are participating in this forum today, as safeguarding the continent’s peace and security is our mutual primary responsibility.

    “Security has no price. But it does have a cost. Faced with the rise of the terrorist threat, we need greater budgetary flexibility to enable our countries to provide themselves with the means to ensure a minimum of national defence, with well-trained and well-equipped armies.

    “We must also question the doctrine of peace operations in Africa. There are seven of them on the continent today: six deployed by the United Nations and one by the African Union in Somalia (AMISOM), which alone has more than 21,000 troops; the seven operations total more than 75,000 soldiers,” he said.

    Sall added that national responsibility, international solidarity and collective security mean that peace and security in Africa are integral to world peace and security.

    “We must, therefore, continue to identify the internal and external causes of conflicts on the continent and assess the effectiveness of national responses, peace operations and other mechanisms for the peaceful resolution of disputes,” he said.

    He called for a rethink of global economic governance to favour the conditions for financing Africa’s emergence.

    He called for reforms which should focus on relaxing rules for export credit loans, and lengthen maturity dates for financing development infrastructure projects.

    According to Ramaphosa, when the scientists in South Africa discovered the new COVID-19 variants- Omicron, immediately alerted the world but the punishment it got was a travel ban.

    He called for the review of the intellectual right by world power for African countries to be able to manufacture vaccines.

    He noted that the greed displayed by world powers is disappointing.

     Insecurity in the Sahel

    Bazoum said terrorism at work in the Sahel today is characterised by forms of organisation that are very similar to those observed in the guerrilla movements in Latin America in the 1960s and 1970s.

    “When I read the intelligence files on the organisation of these movements, I find a description of reality that reminds me of my reading of Régis Debray and Che Guevara. The terrorist bases are indeed organised on the model of the focos, as described by Régis Debray. This model, as you will recall, was not used in the wars of the national liberation movements in Africa, nor in the guerrilla wars attempted in Cameroon, the DRC and Niger in the early 1960s. It is surprising, to say the least, that this pattern of warfare should reappear more than 50 years later,” he said.

    He posited that the Sahelian terrorist movements benefit from conditions of access to financial resources unheard of for a rebellion. For almost two decades, northern Mali has been a lawless area where a criminal economy has developed around trans-Saharan drug trafficking to Europe and Asia. Local terrorist organisations, branches of ALQAIDA and DAESH, are linked to this traffic, which provides them with money.

    “The presence of numerous gold deposits in the area has encouraged gold panning activities under their control, which also allows them to increase their financial capacities.

    “But at the moment, much of their money comes from extortion, large-scale cattle rustling and the taxes they systematically impose on all the people in the vast areas they travel through on their motorbikes. Since the widespread use of these taxes and cattle rustling, vocations have increased and the number of young pastoralists joining the terrorist groups is growing,” he said.

    He called on the Sahelian states to set up a military strategy adapted to the challenges, consisting of the use of techniques and means to make war the least asymmetric possible. This is what Niger is trying to do, he said.

    “They also need more appropriate support from their partners, focusing on intelligence, air support and capacity building for their armies. On the subject of intelligence, the major mistake of the partners is their weak involvement in the fight against arms trafficking from Libya, which is the most important parameter in the prevalence of this terrorism,” Bazoum said.

    He stressed that the Sahelian countries need exceptional financial resources, access to which requires a deviation from the traditional financing rules established by the international financial institutions, without which their action will always be very inadequate.

    Role of the international communities

    The European Union Special Representative for the Sahel, Emanuela Del Re, said: “The growing insecurity is the core of the problem of the Sahel of which I am responsible somehow because I am representing 27 countries of the European Union (EU). This means that I represent the EU in cooperation with the Sahel Countries. We try to move the step forward for peace and above all stability within the Sahel countries.”

    Del Re said the EU has developed its latest strategy for the Sahel which was defined in April last year and it was mainly on the issues of how to solve the problem of security and development together because the two must go together.

    Re said: “The key issue here is governance. We have a lot of experience in this region because we are the main partners with the Sahel countries. We are aware of the problems and as well the opportunities that come from focusing on governance.

    “Governance is important because we have come to the conclusion that unless we have a solid welfare state and institutions that can resist attack and solve problems in remote areas, especially when small communities are victims of attacks. Unless we put in place governance and a welfare state, we cannot in any way succeed. This is the real solution for stable society, resilient society and the promotion of peace intending as a way of creating stability within the countries.

    “The Sahel is most important on the table of the EU. We believe that whatever happens in the Sahel has an impact on our society as well as the rest of Africa. In terms of military response to the problem of security, we have a training mission in Mali where Soldiers are being trained. We are investing a lot in military equipment, providing technical assistance, and training of the Police Force. There is a huge intense activity to fight terrorism under different point of view because we have integrated approach which is multi-dimensional and therefore, we don’t leave anything out. That is why we focus on civil society groups and research. Unless we start thinking of how to solve the problem of terrorism by acting on different front, we might win the battle but what we want to win is the war and obtains peace.”

    The State Minister for Foreign Affairs of Japan, Suzuki Takako, said Japan has been supporting Africa’s positive efforts to maintain and strengthen its peace and stability through TICAD, which is an inclusive platform that advances African ownership and international partnership.

    “NAPSA, a New Approach for Peace and Stability in Africa that we introduced in the last forum, is one example.

    “Japan has been promoting some specific projects under NAPSA, such as human resource development in the field of criminal justice for West African countries including the G5 Sahel, border control capacity enhancement to strengthen counterterrorist measures, and capacity building for PKO personnel in African countries through assistance for PKO training centres and the UN Triangular Partnership Project,” he said.

    Takako added:  “In response to the spread of the COVID-19, we will continue to implement measures to support African health systems in the medium and long term. The COVID-19 epidemic has had a tremendous impact on African economies and societies, and has highlighted a variety of development challenges. In order for Africa to build back better and enjoy prosperity, it is important to ensure regional peace and stability as a prerequisite. To achieve 2 this, employment and educational opportunities are also necessary to prevent young people from being inclined toward violent extremism. Japan is promoting NAPSA, which addresses such root causes of conflicts and terrorism.

    ECOWAS commitment toward the fight against insecurity

    Minister of Foreign Affairs Geoffrey Onyeama said the Economic Community of West Africa State (ECOWAS) has set up a $1billion Peace and Security Fund.

    “This fund was set up because we realise there is so much reliance on our international partners and their intervention is not sufficient enough to address some of the security challenges facing our sub-region and Nigeria is one of the first countries to contribute to the fund. We also put forward one of the ECOWAS committees, the idea of the ECOWAS force. Nigeria believes strongly in that idea of collective security. It is very much our policy. We are aware Nigeria is very active and present in a number of ECOWAS member’s states over the years in the area of security and we always believe that it should be done collectively,” Onyeama said.

    The Director of Policy at the Nigerian Defence Headquarters, Maj.-Gen. Usman Abdulmumuni Yusuf, said the Armed Forces of Nigeria in collaboration with some West African countries were doing so much to contain insurgency.

    He lauded their efforts so far, stating that the dynamics keep changing because of the ability of the insurgents to recruit from outside the borders and with different sources of financing which has kept them afloat.

    Gen. Yusuf noted that Federal Government was doing a lot to curb the major financial sources of the terrorist groups, while the Armed Forces in collaboration with other security agencies were working along the borders to militate against the importation of other fighters from other countries into Nigeria.

  • Agric: What Nigerians expect from Fed Govt this year

    Agric: What Nigerians expect from Fed Govt this year

    Nigeria’s food sector suffered a major setback in 2021. JULIANA AGBO writes on the expectation of Nigerians from the Federal Government in 2022 to address the challenges in the agricultural sector.

    As 2021 comes to an end, Nigerians are hoping for a better 2022 particularly in the food sector.

    Surviving 2021 alone is a testimony to many as prices of commodities increased above 100 percent due to myriads of challenges facing the food sector presently.

    How can we survive in 2022? This is the question many Nigerians are asking.

    Addressing the challenges in the food sector should be the first priority of the Federal Government in 2022, according to experts.

    However, improvement in the major areas of the agriculture sector will help bring down the prices of commodities across the country, experts and stakeholders in the agriculture sector added.

     

    Curbing insecurity

     

    It is no longer news that the emergence of insecurity in different forms has become a major threat to Nigeria’s food security.

    In recent times, farmers have become the main target for kidnapping by gunmen, bandits and Boko Haram across various geopolitical zones in the country.

    Insecurity issues in the country have led to a sharp rise in food prices owing to the substantial reduction in food production.

    Since July 2020, basic food items like beans, maize, wheat, soybean among others have seen major price increases respectively, thus, putting a lot of people at the risk of starvation.

    Halilu Ahmed, a farmer based in Kaduna State said the constant security challenges in the country have made farmers abandon their farms.

    Ahmed said many farmers in farming communities have relocated to the state capital and cities due to the brutality of criminals that always attack their farms.

    An Agricultural Economist, Hadiza Idris, who spoke to The Nation in an interview said many farmers are not willing to risk their lives by going back to the farms unless adequate security is assured.

    Idris said Nigeria’s food security is not guaranteed except the issue of insecurity is tackled by the Government at all levels.

    “We must secure our farms and produce food for Nigerians. If the banditry situation continues like this, there is no hope for farmers to go back to the farm and this will lead to another high cost of commodities in 2022”, she added.

     

    Addressing the plight of farmers

     

    Most farmers have continued to beg for the government’s attention in various areas, including improved seeds, mechanised farm implements, fertiliser at subsidized rates, proper and adequate storage facilities among others.

    National President of All Farmers Association of Nigeria (AFAN), Arc. Kabir Ibrahim said the inability of the genuine farmers to have access to government interventions has been the major challenge stagnating the growth in the agricultural sector while the political farmers smile to the bank.

    According to Ibrahim, the Anchor Borrowers’ Programme of the Central Bank of Nigeria (CBN) targeted at boosting food production and reducing poverty has not been getting to the genuine farmers.

    He warned that impostors and politicians should be prevented from hijacking the scheme meant for real farmers.

    He said: “Even though nobody will deny that the ABP has helped in a way, it should target the real farmers because we have seen some people who have been posing as farmers, but they are not the real farmers.

    “The money CBN churned out in Anchor Borrower has not been going to the right people”, he said.

    Furthermore, he said all the activities in the sector should include stakeholders, who are real farmers.

    Also, a maize farmer based in Kano Balarabe Musa called on the Federal Government to collaborate with more microfinance banks to facilitate access to credit for smallholder farmers timely and at the lowest interest rate.

    Musa said the agricultural sector if repositioned, will lead to an increase in production of agro-commodities by farmers, employment generation, contribute optimally to the nation’s Gross Domestic Product (GDP) growth and attract investors to the sector.

    He said: “Lack of adequate funding; high bank interest rates; lack of access to credit; youths lack of interest in farming activities must be converted by investing more in the sector in order to remain sustainable in the global market.”

     

    Full implementation of budget

     

    Stakeholders in the agricultural sector who expressed satisfaction at the proposed 2022 budget for agriculture, said the allocation will be adequate to address the challenges confronting agriculture if implemented fully.

    An Agricultural Economist, Professor Victor Okoruwa said the agricultural sector budget is still being confronted with late budget releases which often affect farming activities.

    Okoruwa, who is a Professor in the Department of Agricultural Economics, University of Ibadan, Oyo State, said budgetary allocations largely affect the practice of smallholder farming.

    He noted that early implementation will lead to a bumper harvest.

    “We expect full implementation of the agric budget and the earlier the implementation starts, the better for us”, he said.

     

     Timely distribution of inputs to farmers

     

    President of the Nigerian Agro Input Dealers Association (NAIDA), Kabiru Fara, said farm inputs are the bedrock of farming and early delivery of farming inputs should be encouraged.

    This, he said, would afford farmers more time to prepare their fields.

    Fara said inputs should not be distributed late if the government’s objectives of food self-sufficiency and exportation of farm produce are to be achieved.

    He noted that agricultural activities are time-bound and nature-dependent, especially in parts of the world where farming is mostly rain-fed.

    “Any attempt to ignore the time factor in farming will lead to poor harvest, low income for the farmers, and hunger and food insecurity in the nation”, he said.

    Furthermore, Fara noted that the planned reintroduction of the Growth Enhancement Scheme, which allows the Federal Government to subsidise agro-inputs by 50 percent, while the state governments and farmers share the burden of the remaining 50 per cent, will ensure that quality inputs are delivered at various centres with the farmers’ preference in consideration.

    “He said farmers would be happy as they would get quality inputs at an affordable price.

     

    Urgent implementation of agric Policy

     

    Currently, Nigeria does not even have an Agricultural Promotion Policy (APP) since the last one named: ‘Green Alternative’ expired in 2020.

    The Policy aims to increase agricultural production to meet the food needs of the country’s rapidly growing population.

    The National President of AFAN, who explained that the committee working on the APP has met in regards to the new policy, called for speedy implementation of the agric policy for farmers to thrive.

    He said: “We expect the new policy for agriculture to start working immediately after its implementation in early 2022 because it is long overdue.

  • Why 1m COVID-19 vaccine doses expired, by health minister

    Why 1m COVID-19 vaccine doses expired, by health minister

    By Kelvin Osa Okunbor, Oyebola Owolabi, Vincent Ikuomola, Frank Ikpefan, Moses Emorinken, Abuja

    Minister of Health Dr. Osagie Ehanire yesterday explained why one million doses of the donated COVID-19 vaccines given to Nigeria by some international donors expired and were eventual withdrawn from circulation.

    He assured Nigerians that there were no expired COVID-19 vaccines in circulation, stating that vaccines expiration was not limited to Nigeria.

    Ehanire stated these in Abuja while reacting to an online publication that nearly one million doses of COVID-19 vaccine had expired last month.

    The minister stressed that the best way to end such occurrences would be for the country to begin the production of its own vaccines.

    According to data from the National Primary Health Care Development Agency (NPHCDA), as of December 6, about 7,244,620 of total eligible persons had received their first dose. The data added that 3,811,693 had received their second dose – fully vaccinated.

    Ehanire said: “The attention of the Federal Ministry of Health has been drawn to reports circulating in the media to the effect that some Covid-19 vaccines had expired in Nigeria.

    “Nigeria has, of late, enjoyed the generosity of several, mainly European countries, who have offered us doses of COVID-19 vaccines out of their stockpiles, free of charge, through COVAX or AVAT facility. These donations are always acknowledged and thankfully received. However, some of them had residual shelf lives of only a few months that left us very short time, some just weeks, to use them, after deduction of time to transport, clear, distribute and deliver to users. If such vaccines arrive back-to-back or are many, logistic bottlenecks occasionally arise.

    “We appreciate the kind gesture of donors, but also communicated the challenge of short shelf lives, whereupon some manufacturers offered to extend the vaccine shelf life after the fact, by 3 months, a practice that, though accepted by experts, is declined by the Federal Ministry of Health, because it is not accommodated in our standards. Nigeria does not dispense vaccines with a validity extended beyond labelled expiry date. We continue to adhere to our rigorous standards.

    “Donation of surplus Covid-19 vaccines with expiring shelf lives to developing countries has been a matter of international discussion. Developing countries like Nigeria accept them because they close our critical vaccine supply gaps and, being free, save us scarce foreign exchange procurement costs. This dilemma is not typical to Nigeria, but a situation in which many low- and medium-income countries find themselves.”

    Ehanire added: “Nigeria has utilised most of the over 10 million short-shelf-life doses of COVID-19 vaccines so far supplied to us, in good time, and saved N16.4 billion or more than $40m in foreign exchange. The vaccines that expired had been withdrawn before then, and will be destroyed accordingly, by NAFDAC.

    “The Ministry of Health shares its experience with partners regularly and now politely declines all vaccine donations with short shelf life or those that cannot be delivered in time.”

    Pfizer, BioNTech vaccine neutralises Omicron with three shots

    BioNTech and Pfizer (PFE.N) said yesterday that a three-shot course of their COVID-19 vaccine was able to neutralise the new Omicron variant in a laboratory test and they could deliver an upgraded vaccine in March 2022, if needed.

    The German and U.S. companies said two doses of their vaccine resulted in significantly lower neutralising antibodies, but a third dose boosted those antibodies by a factor of 25.

    “The first line of defence, with two doses of vaccination, might be compromised and three doses of vaccination are required to restore protection,” BioNTech Chief Medical Officer Ozlem Tuereci said at a news conference.

    World’s biggest vaccine maker slashes jab production by half

    The world’s largest vaccine manufacturer, India-based Serum Institute, plans to reduce production of the AstraZeneca jab against COVID-19 by at least half, its chief executive said in a television interview.

    Serum Institute head, Adar Poonawalla, said the failure of the Indian government to place any new orders was the reason for plans to slash production.

    According to Poonawalla, the orders from the UN vaccine initiative were coming in very slowly.

    “I am going to be reducing the production by at least 50 per cent to begin with, going forward on a monthly basis, until the orders again pick up in India and the world,” he said.

    The company currently makes 250 million doses of the AstraZeneca vaccine every month.

    The shot is sold in India under the name Covishield.

    Saudi Arabia bans flights from Nigeria

    The Kingdom of Saudi Arabia has also shut its doors against Nigeria, following the report of the Coronavirus variant, Omicron, in the country.

    The Saudi Arabian ban is coming three days after the United Kingdom, Canada and other countries imposed ban on flights from Nigeria.

    The General Authority of Civil Aviation (GACA) in Saudi Arabia allegedly confirmed the development in a circular issued yesterday.

    The circular was signed by Assistant President for Economic Policy and Air Transport, Dr. Faisal Al Sugair, titled: ‘’Suspension of flights from and to the Federal Republic of Nigeria’’ and directed to airlines operating in the airports of the Kingdom of Saudi Arabia.

    The circular instructed the suspension of all incoming flights and entry to the Kingdom for non-nationals coming directly or indirectly from Nigeria, except for those who have spent a period of no less than 14 days in another country from which they are allowed to come.

    It was gathered that the Holy Land also issued a new travel protocol.

    According to the circular, home quarantine will be applied for a period of five days to Saudi Arabia citizens coming from Nigeria, provided PCR examination on the first day and the fifth day regardless of immunisation status.

    AU, IATA urge end to travel curbs on African nations

    The African Union (AU) has called for an urgent end to travel restrictions imposed on some of its member states, saying the measures effectively penalise governments for timely data sharing in line with international health regulations.

    The measures act “as a disincentive for information sharing in the future, potentially posing a threat to health security on the continent and globally,” the AU said in a statement.

    Also, the International Air Transport Association (IATA) yesterday called on governments to follow World Health Organisation (WHO) advice and immediately rescind travel bans that were introduced in response to the Omicron variant of the coronavirus.

    Lagos sets condition for social events

    Lagos State has clarified safety protocols to be adhered to before holding a party, especially in the wake of the fourth wave of the COVID-19 pandemic.

    A statement by the Commissioner for Information, Gbenga Omotoso, said it was necessary to clarify perceived ambiguities in the government’s stance on social events and gatherings during the yuletide, and spell out what is expected of event organisers and attendees.

    The statement reads: “All social events must be duly registered to obtain Event Safety Clearance from the Lagos State Safety Commission, website: www.lasgsafetyreg.com, prior to holding; and the guidelines set out below must be strictly adhered to.

    “Where possible events should be held in an outdoor space; occupancy limit at any event must not exceed 60 per cent of maximum design capacity of the event centre; all attendees of a social gathering are expected to present their vaccination cards or digital bar code page, showing at least first dose, but preferably double dose full vaccination. In unvaccinated people, a negative PCR test within 72 hours will be an exemption; and guests and service providers with high temperature (above 37.5) are to be politely turned back and referred to paramedics or the emergency response team on ground.”

    It added: “All guests and service providers at the event must wear a nose mask or face shield before entry; all guests and service providers must endeavor to wash their hands before entering the venue or use hand sanitisers after which temperature checks should be carried out; and hand sanitisers to be positioned at the entry point and different spots within the venue.

    “Notwithstanding the foregoing, it is also appropriate, at this moment, to request that we should all exercise a high degree of care and responsibility towards ourselves and loved ones during the festive season. Let us, as much as possible, endeavor to avoid huge gatherings and events during this period, as experience has shown that these events have the tendency to be super spreading events.

    “We wish you all a very festive and blessed holiday season ahead.”

  • Living off Lagos-Ibadan expressway

    Living off Lagos-Ibadan expressway

    The Redemption Camp and other communities off the Lagos-Ibadan Expressway have provided alternatives to the communities in Lagos. Many who live in them work in Lagos. As good as these communities are, they are not free from challenges, especially social amenities, writes BUKOLA OLAJIDE

    The residential community known as Redemption Camp is one of the safest places to find succor and rest in Nigeria. Over 30 years ago, the General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, said a hectare of land in that area cost only a thousand naira which enabled the church to purchase enough for their annual programmes and residential areas. Years later, the camp now sits on over 1,500 hectares of land.

    The initial challenges that were faced by residents such as lack of pipe-borne water, erratic power supply, sanitation, lack of motorable roads, and inadequate health care facility have been combatted by the throng of qualified professionals who happen to be members of the church too. However, events in the last eleven months have proven that there is no perfect human system. Having dominated the landscapes of the Lagos/Ibadan axis and its environs such as Shimawa, Ogijo, Likosi, and Ikorodu area of Ogun state, the camp management has been experiencing hiccups in the area of electricity supply to the community due to poor maintenance of the gas turbines earlier this year and recently, a prolonged acute low gas pressure from the Nigerian Gas Marketing Company Ltd. (NGMC).

    Despite the hitches, Redemption camp remains a haven of convenience for many people who got tired of the hustle and bustle of Lagos. One of such professionals is Mrs. Kayode Ladipo, a 79-year old great grandmother who started living in the Camp in May 2003. Having worked her way through from being a Sales Supervisor in 1974 to becoming an MD of Lisabi Mills in 1994, Ladipo shared how her busyness influenced the decision to finally settle in the Camp in 2003 until her retirement in December 2007. Recounting her initial experience, she said “Initially, I had a problem with water supply, but that was resolved. Then the traffic on the expressway became so bad that some residents moved back to Lagos. One has to think twice about going to Lagos. In fact, you only make a trip if it is absolutely necessary. The peaceful serenity endeared me to camp where we now enjoy lots of improvement on the regular power supply, more medical facilities, etc However, the prices of goods and services are a bit more expensive within the camp premises compared to  places outside.” She also complained about the internet connection not being as good as before.

    Meanwhile, for a man who was once Nigeria’s Ambassador to Germany and presently the Pro chancellor of Ekiti State University, Emeritus Professor Akinjide Osuntokun celebrates his late wife, Abiodun, for ensuring that they came into the camp which has now become a haven of comfort to him in his old age. “There is the peace of the Lord that passes human understanding which you can’t find in either of my Ibadan or Lagos houses. I am able to take long walks in the morning without fear of being kidnapped or run over by vehicles. Since I have been off and on in the camp for two decades, I think the utilities are better than anyone elsewhere. Although in recent times we have had problems with light and occasionally, with water supply. Well, the roads are also not as great as they used to be so, I will suggest that a general levy to fix the roads using interlock blocks will be in the right direction. Over the years, the camp has expanded in a big way and municipal facilities like schools, churches and supermarkets, and even a polytechnic have been established to replace the Redeemer’s University which has moved to Ede its permanent site.” However, Osuntokun is of the opinion that due to the camp’s serenity and controlled systems, young people may feel cut off from the happenings in the urban areas of the country. Only “fuddle duddles” like him would find it a perfect place to retire into.

    However, for an upwardly-mobile Folasade David who works as an Administrative Officer in Ikeja, Lagos, marriage brought her into the Camp; the only compensation she has for plying the bad Lagos-Ibadan expressway almost every day is that she comes back to meet a peaceful home after a long rough day in traffic. “Initially, I was sad about coming into the camp because I had heard about the terrible traffic, accidents, and undue stress on Lagos-Ibadan expressway. I was also unhappy that I would no longer socialize with my friends as before but after five years, I can boldly say I have experienced nothing but peace and joy. I go out at midnight for prayer walks without the fear of being robbed.  The camp generates its own electricity and water supply; has different shopping malls and supermarkets, major foodstuff markets, very good schools with international standards, and all major financial banks in Nigeria have branches on the camp. It’s a whole city on its own.”

    Anyway, as beautiful as residing in the camp is, it’s not the same experience for the residents who live off the Lagos-Ibadan expressway. The lack of efficient public transport and the growing number of personal cars on the road cause major traffic jams which hold people up for hours trying to get to and from work. There are many issues associated with the problem of transport, including growing health concerns and a loss of working hours due to the overwhelming time spent sitting in traffic.

    However, the Minister of Works and Housing, Babatunde Fashola, has explained in a recent report that the Federal government is collaborating with Ogun Government to secure the Right of Way (RoW) for the construction of flyovers and an interchange for decongestion on the Lagos-Ibadan expressway. The bridges are under construction at Makun, MFM, and Lotto (Mowe) areas on the Lagos-Ibadan expressway which accommodates over 40,000 vehicles daily

    Mrs. Oluwatosin Aladetuyi, who has been living in the Ibafo area for five years, has stated that the only beneficial advantage she has enjoyed living in the area is the close proximity to the Mainland/Island even though the expressway still poses a major challenge. She appeals to the Ogun state government to also look inwards and help combat the issue of poor topography, poor channeling of canals/drainages and lack of proper environmental management within the area.

    Another respondent, who lives in Oremeji area off the Lagos-Ibadan expressway, expressed his displeasure about some communities being handled in isolation and neglected by the local government. He proposed that every community in remote areas must be helped to attain an acceptable level of growth and made to enjoy every access to a good life. In addition, the state government should follow up on how well the local government of this axis has been able to discharge their duties.

    Mr. Adetunji Adeboyejo, a book publisher in Lagos who resides in Magboro, off the expressway, opines that his motivation for moving his family into that area is accessibility to Lagos. He however calls on the government to work on providing a constant power supply for the suburbs.

    While others are bothered about the bad road and inadequate power supply, Mrs. Olawumi Ateniola, who recently moved into the Arepo area as a new bride, lamented about the high cost of living in her area. She said “though I have easy access to my office in Lagos, the prices of goods and services are really on the high side here. Also, the government should please speed up the fixing of the roads in Arepo because the residents are not coping well with the floods when it rains.”

    Furthermore, the major challenge faced by the growing population in towns along the Lagos-Ibadan expressway is housing. With the rapid increase of people coming into these towns, the cost of rent has increased and privately-owned real estate companies sell at exorbitant prices thereby making land ownership unavailable to the average Nigerian. This problem extenuates the gap between the people who have and the people who don’t.

    Mrs. Tobi Sola-Abiola, an entrepreneur in the wellness and beauty line, who recently won a recognition award from the Ooni of Ife and resides in Opic, explained that her staying along the expressway is very strategic being the midpoint between Lagos and Ogun State.

    “When you think about the stress of traffic, you know that you cannot just show up at my door, and this gives me some level of privacy.”

    She believes that the role of the government cannot be overemphasized especially when the provision of infrastructure and youth empowerment is concerned.

    “I would rather put tar on the road as against interlocking that breaks off so easily. Being a social worker, I would also empower more youths in my community so that they can become useful to themselves and their future,” she added.

  • Nigeria’s long road to 5G deployment

    Nigeria’s long road to 5G deployment

    With the successful spectrum bid round for 5G deployment concluded, the race for deployment has started. With foreign exchange crunch which is the currency denominator in the telecoms sector, LUCAS AJANAKU writes on the long road to a 5G economy.

    Imagine a world of internet connection at a speed faster than that of lightening; speed 10 times faster than what is obtained in the fourth generation (4G) network; a world of interconnectedness where the Tv set, door, refrigerator, cars, and other home appliances are being controlled remotely from the mobile phone; virtual surgical operation and telemedicine being executed with clinical precision.

    These and many more are the endless promises of the world of 5G network, which is an advancement on the current 4G network being used largely in major cities of Nigeria. Experts say the 5G network is no longer a future technology, as it is being perceived in some quarters, but rather, a technology that will be accessible in the first quarter (Q1) next year ceteris paribus to drive efficiency in virtually every facet of the nation’s endeavours.

    The 5G stands for the 5th generation mobile network. It is a new global wireless standard after 1G, 2G, 3G and 4G networks. 5G enables a new kind of network that is designed to connect virtually everyone and everything together including machines, objects, and devices.

    Emerging 5G networks feature lower latency, higher capacity, and increased bandwidth compared to 4G. These network improvements will have far-reaching impacts on how people live, work, and play across the world. The emerging 5G networks feature higher capacity, and increased bandwidth compared to 4G.

    Benefits

    The Minister of Communication and Digital Economy, Prof Isa Pantami said 5G will be approximately 20 times faster than 4G. He said it will open many opportunities for businesses because of the quality of the service and at the same time, it will allow many devices to get connected meaning everything will be interconnected.

    In the area of security, he said it will promote remote surveillance whereby so many facilities such as robots get attached to the internet of things (IoT) and many more. “Operatives will be able to deploy it to have real-time communication including in remote areas where they cannot be physically present. It will help major companies, especially those that require very strong broadband to participate in the remote operation and many more including oil and gas, from discovery to production to refining. When it comes to individuals, it will help in telemedicine, telesurgery.

    The Chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), Gbenga Adebayo, agreed no less with Pantami. He said every layer of improvement in telecommunication has brought a difference in user experience and significant improvement in the quality of services delivered to the end-user. “The major advantage of 5G is that you have a high volume of data transfer between person to person and person to machine and the world today is talking about virtual reality, all these applications will ride on 5G. Electronic gaming, electronic sports, and e-commerce will be better with 5G. Big data, high data transfer, high speed of communication, high-quality communication will be guaranteed,” Adebayo said.

    He said connectivity will be enhanced by connecting the home to the office and the office to the devices such that one can open the window of the home from the office, operate the car remotely.

    The Nigerian Communications Commission (NCC) said Nigerians should expect gigabytes per second for smart cities, self-driving cars, robust telemedicine, and others with the deployment of 5G in the country.

    The Executive Vice Chairman of the commission, Prof. Umar Danbatta, gave the assurance during a webinar entitled: “Unlocking 5G potential in Africa” held on StreamYard.

    Danbatta emphasised Nigeria’s readiness to deploy 5G and highlighted some of the steps taken by the Commission towards deploying the technology in the country.

    He said Nigeria has continued to receive visitations by countries that wished to benchmark their operations, just as Nigeria has also visited other countries to explore how 5G and associated technologies can be deployed effectively because 5G technologies are not just valuable, they are so significant due to their derivable social and economic benefits.

    He said 5G will lead to gigabytes in a second, robust voice and real-time digital social mediation, massive IoT such as smart city and smart homes (connectedness of appliances and home security), pervasive 3D videos and Ultra High Definition screens, augmented reality, self-driving cars, industrial automation, high-speed trains, lifeline and ultra-reliable communications in telemedicine and natural disasters that will deliver successful services using critical applications.

    Executive Director, Centre for Cyberspace Studies (CCS) at Nasarawa State University, Keffi, Nigeria, Dr. Uche Mbanaso said Nigeria cannot be left out of the global transition of technology. Rolling out the 5G technology will enhance our digital economy stride and challenge the industry to key into the opportunity and harness the huge potential therein.

    An official of one of the major carriers in the country has however warned subscribers to be ready to pay premium charges for services. “You can see the excitement about 5G. Subscribers are complaining about fast data depletion with 3G, 4G. When 5G is eventually rolled out, its speed will deplete data and there will be more complaints,” he said on the sideline of the last 5G stakeholder forum organised in Lagos.

    Infrastructure

    While there’s generally a dearth of infrastructure in the telecoms sector in the country, Adebayo said the infrastructure that the telcos have to be deployed is good and ready to go and start up on 5G. “So we are very pleased about the trial that has been done, we are pleased about the approval of the policy. Today we are talking about the digital economy, mobile banking, all these services will run better on 5G more affordable, and have more latency.

    “What makes 5G better is the ubiquity and proximity of BTS to the user. “Many towers will come to the streets which will make it easier for people to connect and connect to other devices. That is the vitality of the 5G network cos it is a much higher frequency and has wavelength because of this wavelength, the BTS has to be very close. So you can see thousands of these BTS on the street, that is what enhances the speed and other benefits,” Adebayo said.

    Adebayo said the existing infrastructure will support 5G. “We are building backbone infrastructure across the country. A number of sites that were connected to microwave are now being connected to the network. Thankfully, the cost of RoW that used to be astronomically high in times past has now been significantly reduced.

    “The work to be done will be in the last mile that will connect homes to 5G, devices to 5G. In terms of the readiness of our national infrastructure, we are good to go. A number of the sites will be upgraded, in some cases, we will just put a new set of antennas by the street side to power community,” he said.

    But research has shown that the telecom sector, in its present state, will require a whopping N1.04trillion investment to bridge the existing deficit in infrastructure, especially, base transceiver stations (BTS) across the country.

    According to statistics released by the regulator of the telecoms industry, the NCC, BTS deployment in the country has risen from 30,000 to 54,460.

    This figure shows a deficit of 26,540 from the 80,000 BTS required for effective coverage of the country’s huge landmass.

    The BTS consists of 3G and 4G while fibre optic transmission cables expanded from 47,000km to 54,725km in the last five years, resulting in improved broadband/telecoms service delivery in the country.

    According to the former President, Association of Telecoms Companies of Nigeria (ATCON), Olusola Teniola, depending on whether it is 2G or 3G being offered by the BTS, the usual prices for an installed one is between $7,000 and $95,000. Therefore, at about $95,000 per BTS, this will amount to $2.52billion (N1.04trillion).

    The Chief Executive Officer of IHS, one of the leading tower services firms in the country, Sam Darwish, in 2012 had said more than $12.5 billion was required to build more BTS across the country while Adebayo had, in 2019, said it costs about N24, 750,000 to install a single BTS together with its tower, special antennas and two generators to power the station. He equated BTS with the artery in the human body system, responsible for pumping blood into the system as it allows subscribers to make and receive calls seamlessly.

    Prof Dambatta said infrastructure would be needed to support emerging technologies such as IoT as the country forges ahead with its digital economy drive.

    “3G, 4G going to 5G networks are going to usher this country into smart applications, the IoTs or the smart world and cities we are talking about. And of course, because of the additional burden on infrastructure, the present capacity of telecom infrastructure is grossly inadequate to cater to these additional platforms or services we talk about.

    “Therefore we will need between 70,000 and 80,000 base transceiver masts to be able to provide the effective capacity that is needed to deploy 4G going to 5G,” he said.

    He urged other approving agencies at all levels of government in the country to partner with NCC to bridge the digital divide. The United Kingdom (UK), with a population of 60 million people and about 250 land square meters already has close to 60,000 BTS.

    As of October 2021, mobile telephony subscribers stood at 229,582,206 million with teledensity standing at 100.5 per cent while active internet subscriptions of 198090 million and broadband penetration of 45.07 per cent.

    Quality of service (QoS) has remained a major issue in the telecoms sector over two decades after liberalisation while most of the major highways across the country remain blind to telecoms services because of the shortage of BTS, the International Telecommunications Union (ITU) says “provides the connection between mobile phones and the wider telephone network”.

    IHS Towers, arguably the largest mobile telecoms infrastructure provider in Africa, controls over 16,000 BTS belonging to carriers in the country including the 9,151 BTS it acquired from MTN and another 2,136 towers acquired from 9mobile. It is not clear if the parent company of Airtel Nigeria, Airtel Africa has finally sold its 4,500 towers across five countries of its operation as proposed by its CEO last year.

    Security implications

    The use of robots to perform telesurgery for instance has security implications. Looking at the country’s national security architecture, security is vital in the 5G rollout without security, safety and trust, there are going to be huge problems, Mbanaso said.

    “We should be worried about security, safety and trust cos we are going to be seeing more cybercrime because 5G opens our homes to be more connected cos it is only phones that are now connected and there’s this high level of cybercrimes. When everything at home is interconnected, we are going to have increased cybercrimes,” he said.

    He sought a cybersecurity framework dedicated to the 5G rollout cos it has enormous security issues. For instance, a counterfeit equipment replacement could cause colossal damage. Cyber-attacks do not discriminate.

    Panatami assured of the activation of sectoral computer emergency response and readiness unit under NCC which will be charged with the responsibility of monitoring potential attacks on the networks even before they take place.

    Working his talks, the Nigerian Computer Emergency Response Team (ngCERT), has since been inaugurated by the minister and has since swung into action.

    Just last month, ngCERT warned of the existence of Iranian cyber rogues known as Lyceum (also known as Hexane, Siamesekitten, or Spirlin) orchestrating cyberespionage in the African telecoms space.

    The group, it said, has been reported to be targeting telecoms, Internet Service Providers (ISPs) and Ministries of Foreign Affairs (MFA) in Africa with upgraded malware in politically motivated attacks oriented in cyberespionage.

    Adebayo however assured of the security of the network against any form of breaches. He said the most secured infrastructure in the country today is the telecoms infrastructure, no fears and concern over any attacks from cyberspace should be entertained.

    More BTS, health palava

    5G trial was done on Nov 26, 2019, in six locations with Abuja being the first. After the successful trial, the floodgate of concern was flung open over the health hazards of 5G deployment. The outbreak of COVID-19 and its linkage with 5G in 2020 made the government put everything on hold for engagement with the citizens and stakeholders such as the International Telecommunication Union (ITU) and the World Health Organisation (WHO) came out with a verdict that there was no adverse effect of 5G technology to human health.

    Adebayo said the radiation that will be emitted by 5G BTS will not be as high as the one emitted by the Tv sets at home.

    He said yes, 5G will be on a higher frequency and lower wavelength, there would require many more antennae but the size of the antenna will not be as massive as what we currently have. “So we will not find telecom antennas on the streets cos of 5G a number of antennas are a medium size that will sit on light poles, some will sit on rooftops. You will still see a lot of 4G sites that will support as off-sites,”he said.

    Will technology shake hands?

    According to Adebayo, all devices released by original equipment manufacturers (OEMs) in the last year or so are 5G-compliant. A lot of the Android phones in circulation are now ready to go on 5G technology. He said for individuals who might want to use 5G, they may need to change their devices but this might not happen for those who do not have a need for 5G. He said its machine2machine protocol, just programme the device to 5G. “As long as we have many countries roll out 5G when the volume increases, the price will drop. So I will not be surprised that in another year, we get a device that is as cheap as N10,000 that is 5G compliant,” he explained.

    Mbanaso said the devices will have backend compatibility meaning 5G could work with 4G in its environment. Adebayo agrees with him. He said a lot of the devices will still work but said the reality is that at some point, it will fade because we cannot be in 7G and still be talking about 2G. “We must accept that technology must have end of life and when end of life is here, it is a reality that will be. Culturally, therefore, we must start detaching ourselves from emotional attachment to phones,” he advised.

    He said Nigeria should step up domestic production of ICT software and hardware and stop being an import-dependent consuming country. To achieve this, he said tech hubs should be established for youths to produce locally. He said local production is not coordinated and urged an emphasis on research and development (R&D). He carpeted some of the players in the sector for preferring to sponsor vain pursuits such as BBNaija investing in R&D for brand visibility. He called for the commercialisation and valuing of what is produced locally

    5G spectrum bid

    The approval of the Federal Executive Council (FEC) of the National Policy on 5G Networks for Nigeria’s Digital Economy cleared the coast for 5G in the country.

    “The implementation of the National Policy is with immediate effect,” Pantami’s Technical Adviser, Dr. Femi Adeluyi said. “The National Policy has been developed over a period of two years, due to the need for extensive stakeholder engagement and the need to ensure adequate public awareness and sensitization.

    “The stakeholder engagement was thorough and multi-sectoral in nature.  It also took into account the report of the three-month 5G trials that commenced on the 25th of November 2019.

    “The report critically reviewed and studied the health and security implications of deploying 5G in Nigeria.

    “Leading international organisations such as the WHO and the ITU, an organ of the United Nations, has confirmed that the deployment of 5G networks leave no adverse health effect and are safe.

    “5G networks offer significant advantages over the current technologies. Some of its advantages include much lower latency, higher bandwidth, greater device density, longer battery life for nodes and greater network flexibility.

    “Several countries have already commenced the deployment of 5G and are enjoying its benefits.  These countries include the United States, United Kingdom, Republic of Korea, South Africa and Lesotho, to mention but a few.

    “The National Frequency Management Council (NFMC), chaired by Minister Pantami, will soon release spectrum to the Nigerian Communications Commission (NCC) for the Mobile Network Operators (MNOs) that meet all the required conditions.

    “The NCC, as the regulator of the telecommunications sector, will continue engaging stakeholders with a view to developing the regulatory instruments required for the successful deployment of the technology in Nigeria.”

    Subsequently, the 3.5gighertz (GHz) frequency was identified for early deployment of 5G in the country with a reserve price of N75billion  which was considered too high by the operators in view of the debilitating business operating environment prevalent in the country. While the operators had their say, the regulator had its way.

    After 11 rounds of bidding that lasted eight hours, Mafab Communications Ltd and MTN Nigeria Plc emerged as the two successful winners of the 3.5GHz spectrum auction for the deployment of 5G.

    The two winners emerged after a keenly contested auction conducted by the NCC, in collaboration with the Federal Ministry of Communications and Digital Economy and it took place at the Transcorp Hilton Hotel, Abuja on December 13, 2021.

    Three companies, namely MTN, Airtel and Mafab Communications Limited, had qualified for the auction, having met the requirements stipulated in the Information Memorandum (IM) for the spectrum auction. The three companies had also participated in a mock auction held on December 10, 2021, which served as a precursor to the Main Auction conducted on Monday, December 13, 2021.

    In an exercise that clearly demonstrated demand outstripping supply, with Ascending Clock Auction System adopted by the Commission, the three bidders participated in the intensely competitive auction bid.

    In the first round of the auction, the bid price was fixed at $199,374,000.00; $201,367,740.00 at second Round; $204,388,356.10 at third Round; $209,407,962.50 at fourth Round and $215,782,901.30 at the fifth Round.

    The auction prices increased progressively to $224,414,217.43 at the Sixth Round; $231,146,643.96 at the seventh Round; $240, 392,509.71 at the eighth Round; $251, 210,172.65 at the ninth Round; and $263,700,050.00 at the Round 10 of the auction exercise.

    The auction process reached its peak at Round 11 when the bid price graduated to $275,904,886.25 with all three bidders still actively participating. The Main Stage of the Auction, however, ended at the conclusion of the 11th Round, with Airtel listing an exit bid of $270,000,000, while MTN posted an exit bid of $273,000,000, giving way to the Assignment Stage. At this point, Airtel had dropped off from the race having posted a lower exit bid, thus leaving Mafab and MTN as winners of the two available lots.

    Prof. Danbatta recalled the processes and activities leading to the successful conduct of the auction. He said that the NCC published a public notice on its decision to award two lots of 100 megahertz (MHz) Time Division Duplex (TDD) available in the 3.5 GHz band through an auction process to support the delivery of ubiquitous broadband services for the deployment of 5G network in Nigeria.

    “Subsequently, an Information Memorandum was issued on November 10, 2021, in which Bid applications for the available spectrum lots were invited. By the deadline for receipt of applications on November 29, 2021, the Commission received applications from three licensed telecoms companies, viz: Airtel Networks Limited, Mafab Communications Limited and MTN Communications Nigeria Limited,” he said.

    “The auction held successfully today, Monday, December 13, 2021 at the Transcorp Hilton Hotel, Abuja with the three bidders competing for the available two slots. The Commission adopted the Ascending Clock Auction format which ended after Round 11 and proceeded to the Assignment Stage. It is my pleasure to announce that at the end of the auction, Mafab Communications Limited and MTN Communications Nigeria Limited emerged as provisional licence winners,” he said.

    Danbatta said the winning bid price for the auction is $273,600,000 for each lot of 100 MHz TDD and the provisional winners are expected to pay the Winning Bid price, less the Intention-to-Bid Deposit, by February 24, 2022.

    He expressed satisfaction that the auction process was efficient, fair, credible, well-organised and transparent and was designed to deliver the ideal outcome. Accordingly, Danbatta said the strongest bidders emerged provisional winners, raising substantial cash for the Federal Government.

    He congratulated the winners and thanked the Federal Government for its support and commitment to the deployment of 5G technology in Nigeria, which, he said, will bring substantial network improvements, including higher connection speed, mobility and capacity as well as low-latency capabilities to communications services in Nigeria.

    Enters Mafab Communications Ltd

    In the telecoms space, Mafab Communications Limited is not the first dark horse. In 2014, Bitflux Communications, a relatively unknown operator, defeated Globacom to emerge winner in the auction conducted to sell one spectrum slot in the 2.3GHz by the NCC.

    Again in December same year, after several failed attempts to sell off the government-owned Nigerian Telecommunications Limited (NITEL) and its mobile arm, M-TEL, the Bureau of Public Enterprises (BPE), y announced an unknown consortium, NATCOM, as the winner.

    NATCOM, a consortium of seven Nigerian companies offered to pay $252 million.

    Mafab is said to be bankrolled by Alhaji Musbahu Mohammad Bashir, a very quiet Kano billionaire.

    Mafab gave MTN and Airtel a good run for their money. Mafab’s relentlessness to go the extra mile in the auction made Airtel Nigeria apply for the Exit Bid at $270 million and drop out of the race.

    Sources say Mafab meant business and it is already in high-level discussions with international equipment vendors such as Huawei and ZTE about its 5G business plan.

    The company with its head office at No 8a Ibiyinka Olorunibe close, off Amodu Ojikutu Street, Victoria-Island, Lagos was incorporated on July 8, 2020 and licensed by the NCC to provide and operate local interconnect and international carrier services. According to the NCC, it operates under three licences: Interconnect Data Exchange (IDE); International Data Access (IDA), and Value Added Service (VAS).

    Mafab’s founder and chairman, Alhaji Bashir, is an engineer and a shrewd businessman. He is the chairman of Althani Group of Companies with diverse interests across the oil and gas, banking, insurance, real estate and telecom industries with head office at 12A Yalinga Street, Wuse II, Abuja, FCT.

    Alhaji Bashir is the chairman, Board of Directors of Salam Takaful Insurance as well as Cobalt International Services Limited, a pre-shipment Inspection Agent for dry goods and bulk liquid cargoes for oil and gas exports in the country.

    He is also a director on the Board of Jaiz Bank Plc, Bento Drill Nigeria Limited, Offshore Technologies International Limited, and Resource Capital Group. Alhaji Bashir worked with Hammad Development Facilities and Jadai Diversified Services.

    He has vast experience of more than two decades in general management, leadership, and engineering. He has attained several certifications from high-profile institutions such as American University, London, Harvard Business School, USA.

    Challenges

    The President of the Association of Telecommunications Companies of Nigeria (ATCON), Ikechukwu Nnamani, said Nigeria should not be left behind as far as emerging technologies are concerned.

    Acknowledging that 5G deployment is far more capital intensive than 4G and other lower technologies, he said the Senate had during a recent public hearing on the technology, expressed concern that the operators might pass the cost to subscribers.

    “There is no doubt that the operators are going to spend a lot of money to deploy 5G and they will need to recoup their investments from the service. The only way the cost can be lowered for the subscriber is for the telecoms regulator to make the 5G spectrum cost as low as possible,” he said.

    He, however, noted that subscribers, who may not be able to afford 5G service, would be able to continue using the current 4G and 3G services.

    According to him, just as the arrival of 4G did not end 3G and 2G, the launch of 5G in Nigeria will also not end other technologies. “The consumer will have the freedom to choose any technology they want as all will be running side-by-side,” he said.

    The Director, Technical Standards and Network Integrity (DTSNI) at NCC, Bako Wakil, had made Nnamani’s point clearer by explaining that the Commission had chosen the 3.5GHz spectrum band for 5G deployment because it allows other technologies to run concurrently.

    “We are not going to have a complete 5G network in Nigeria; the technology will work alongside 4G, 3G, and 2G,” he said.

    Operators within the broadband industry have urged governments across Africa to provide policy on infrastructure sharing in order to support the growth of internet connectivity amid ongoing 5G deployments.

    Speaking at the Africa Law Tech Festival 2021, Head of Innovation & ICT Strategy at Huawei Southern Africa, Dr. Bello Moussa, said infrastructure sharing can lower the costs of technology deployment for the 5G coverage in Africa, as well as the time it takes to complete deployments.

    “We have seen a lot of challenges in site acquisition and site deployment in 2G, 3G, and 4G era. This has hindered the development of mobile telecommunication and coverage. With the 5G we will need more sites, maybe three times the number of 2G and 3G.

    “There should be a tight collaboration between municipalities and telecom service operators. This will not only save time but also the cost of deployment. The savings will be transferred to the consumer enabling digital access,” Moussa said.

    Head of Legal and Regulatory at ATC Kenya, Lorna Nyandat added: “The government can help extend connectivity is by encouraging infrastructure sharing. It is something that is across most markets in Africa but it’s not as prevalent as it is in the west. In Kenya, we have guidelines on infrastructure sharing in particular the interconnection guidelines which encourages infrastructure sharing with both passive (not in use) and active infrastructure (in use).”

    Nyandat noted that active infrastructure sharing is not prevalent in Africa and urged governments to provide favourable policies.

    By far, the greatest challenge 5G deployment has now is how to source the cash to pay for licence fees in US dollars eraly next year and purchase equipment. MTN Nigeria may have to fall back on the cash it raised from the sell down to retail investors of over a 500million shares held by the Group in the local arm of the telecoms company. From every indication, it is still a long road to travel before getting to the Promised Land.

    “The Central Bank of Nigeria may have to wade in to bail yje operators out because the forex challenge is real and excruciating,” a financial analyst said.

  • Investors’ hunt for higher returns in double-digit inflation era

    Investors’ hunt for higher returns in double-digit inflation era

    The eight-month consecutive drop in the consumer price index which measures inflation is yet to reflect on the prices of goods and services as well as returns of investment for local and foreign investors. Inflation moderated for eight consecutive months, from 18.17 per cent in March 2021 to 15.4 per cent in November 2021 but consumers and investors have nothing to show for it. Prices of goods and services have skyrocketed in the same period inflation dipped while investors face low returns on investment, especially from their savings deposits. Alternative assets such as Mutual Funds, Eurobonds, commodities markets and T-Bills are top picks as investors and savers seek higher returns on investments in a low-yield year worsened by the Covid-19 pandemic, writes COLLINS NWEZE.

    For many years Ikenna Williams, a United States-based Nigerian investor, did not have to take risks to beat inflation.

    Williams earned yields on risk-free Treasury Bills (T-bills) that were comfortably higher than inflation.

    That was from 2010 to late 2019 when it was possible to hold risk-free T-bills and earn, on average, 2.67 percentage points above the inflation rate.

    All that changed when in 2020, as 1-year T-bills rates crashed from 5.40 per cent per annum in January to 0.15 per cent per annum.

    The crash in T-bills rates exposed Williams and other investors, local and foreign to higher risks and reduced returns.

    T-bills are short-term securities that help the government to raise funds and support monetary policy management of the Central Bank of Nigeria (CBN).

    To beat these lower returns on T-bills, Williams diversified his investments into equities, specialised products such as credit opportunity portfolios, US dollar investments and crypto-currencies.

    With the low-yield environment, savers and investors have to be a lot more subtle about what they invest in, also taking a degree of risk, whether that means investing in fixed income funds, credit solutions, balanced funds or equity funds.

    Another investor with Afrinvest West Africa Limited,  Robert Stevens-Adams, said inflation was his biggest worry in achieving superior returns. “I have put in place some of the building blocks of risk management. First, I examined, long-term equity market returns and compared these with long-term T-bills returns and decide where to put my funds,” he said.

    Likewise, Olufemi Babalola and his wife, Remi, had N1 million household savings ($5,022.60 at an exchange rate of N199/$1 in December 2015.

    To preserve their wealth, the couple agreed to invest in the equities market, starting on January 1,  2016, benchmarking the Nigerian Exchange (NGX) All-Share Index.

    Using the NGX All-Share-Index (ASI) as the benchmark, over a five-year and nine-month period, the investment earned, in nominal terms, 40.50 per cent making N405,024.04 (Compound Annual Growth Rate -CAGR +6.15 per cent). However, the investment earned -37.16 per cent in inflation-adjusted terms, losing N371,598.19 (a negative CAGR of 7.83 per cent).

    Not only has the effects of inflation wiped out the returns on the investment but the volatility of this nature often leads investors to lose faith in investment.

    “A compound annual growth rate of 6.15 per cent in our investment in no way compensates for the effects of inflation,” Babalola said.

    Other investors, passionate about savings because of the leeway to withdraw funds at any time, earn interest with minimal bank charges also now under severe risks.

    Peter Daniel, who not only has savings deposits in three commercial banks, but opened one each for his wife, and four children lamented his challenges in building sustainable wealth that beats inflation.

    “Before now, I believed that savings are the best way to preserve wealth. I was also encouraging my family members to imbibe the savings culture by saving for the rainy day,” he said.

    But all that changed after Daniel understood how inflation eats up interest on savings.

    In an economy where banks pay savers 1.25 per cent per annum interest rate on savings deposit as against 15.4 per cent November inflation rate, savvy savers and investors are divesting to alternative assets with higher yields to ward-off inflation-induced capital losses.

    The situation worsened after the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele directed deposit money banks to pay 1.25 per cent interest on savings deposit accounts.

    This is far below the 11.5 per cent Monetary Policy Rate (MPR)- the rate at which the CBN lends money to banks. The new rate was a reduction from 30 per cent of MPR which the CBN sustained for years.

    With these developments, Daniel did not just move to Mutual Funds, where he earns over 8.5 per cent returns per annum, he commenced a new campaign against savings deposits.

    First, he moved N1 million out of his savings accounts across the banks, invested 50 per cent in Mutual Funds and the other half in Dollar Funds.

    It is not just Daniel that is moving huge cash from savings accounts with banks to Mutual Funds. Many civil servants, private sector employees, and even commercial banks, now invest in Mutual Funds and other alternative assets.

    After a discussion with one of his closest friends, Stephen  Udom,  he agreed to invest 50 per cent of his savings in Mutual Funds, and the rest in the Federal Government of Nigeria (FGN) Savings Bonds (FGNSB).

    The attraction is the interest rate that is far higher than what any financial institution could offer for savings and enough to protect investors’ funds from inflation-induced capital losses.

    In an emailed note to investors, Stanbic IBTC Asset Management explained what rising inflation does to people’s income and savings.

    It said: “Nigeria’s inflation was at 15.4 per cent in November 2021, a 30-month high. The major trigger to the rise in inflation was the slowdown in economic activities due to the restrictions implemented to curb the spread of Covid-19.

    In practical terms, the prices of goods and services increased by 15.4 per cent between November 2019 and November 2021. That means a bag of onions that cost N100,000 in November 2019 increased by N15,400 in November 2021 to cost N115,400.

    Findings showed that when the demand for goods and services outweighs the supply, buyers become willing to pay higher prices. Also, when there is an increase in the supply of money, without a corresponding increase in output or productivity in the economy, it will lead to a rise in prices.

    As inflation rose, Daniel, Udom and millions of other Nigerians that kept their funds in savings accounts got poorer and may not be able to meet their daily obligations as their savings gradually lost value.

    Daniel said: “I have learnt to invest in alternative assets instead of saving my money in banks. I have also minimised idle cash by investing in financial instruments”.

    Former Director-General, Lagos Chamber of Commerce and Industry, Muda Yusuf,  said that structural factors which constrain productivity across sectors, especially the real sector, decline in agricultural output, exchange rate depreciation, higher energy costs, security concerns in key food-producing states and Covid-19 disruptions were major inflation drivers in recent years.

    “These structural-induced factors are beyond the control of monetary authorities and have made it increasingly difficult for the CBN to achieve its primary objective of price stabilisation,” he said.

    An economist and former President, Chartered Institute of Bankers of Nigeria, Okechukwu Unegbu, explained that inflation tracks the rise in the price of goods and services, which in turn shrinks the naira’s purchasing power.

    “When inflation rises, consumers can purchase fewer goods, input prices go up, and revenues and profits go down. As a result, the economy slows down until stability returns,” he said.

    The search for better returns on investment is universal. Foreign investors, hungry for higher returns also reckon that Nigeria with a potential yield above seven per cent, remains an attractive investment destination.

    For the Head Research at Coronation Asset Management, Guy Czartoryski, there is a paradigm shift in investment and savings decisions.

    The fund management industry, he said was fast rising with investors putting a growing proportion of their savings with Mutual Funds instead of banks despite the risk involved.

     

    Mutual funds step in

    The total Asset Under Management of the Mutual Fund industry stood at just under N1.6 trillion at the end of 2020, but this is just 14 per cent of the size of Nigeria’s Pension Fund industry.

    Moreover, the distribution of funds remains heavily weighted towards a small number of players. This suggests that some fund management companies may not have the asset base, and income flows, to support the development of the industry.

    Aside from Mutual Funds, many investors are seeing value in diversification, especially currency diversification. US dollar bonds funds, though not a large part of the industry’s overall AUM (10.4 per cent) have been growing quickly of late. The CAGR in US dollar bond funds (expressed in their Naira equivalent values) from 2015 to 2019 was 39 per cent in inflation-adjusted terms and 61 per cent in nominal terms.

    Czartoryski said Nigeria has left behind, in 2020, a 10-year period when yields on Nigerian Treasury Bills (T-bills) generally exceeded inflation, allowing fund managers to invest clients’ money in risk-free T-bills with little need for sophisticated risk management.

    “Banks benefited from this as the primary destination of savings, as did pension funds. However, the fall in T-bill rates over the past year, combined with a surge in the value of Federal Government of Nigeria (FGN) bonds, demands a new level of risk management. Investment risk is rising as yields fall, and fund managers and investors need to master risk management and learn the benefits of diversifying their investments across asset classes,” he advised.

     

    Sovereign Sukuk Offer oversubscribed

    More Nigerians also going for alternative assets including Nigeria’s Sovereign Sukuk Offer. The offer attracted over N865 billion subscriptions representing over 346 per cent oversubscription, the Debt Management Office  (DMO) Director-General Patience Oniha said.

    Nigeria’s N250 billion Sukuk Bond is a 10-Year Ijarah Sukuk due December 2031 and attracts a “Rental Rate” of 12.80 per cent Per Annum. The issuing houses for the Sukuk are Greenwich Merchants Bank Ltd, Vetiva Capital Management Ltd, and Stanbic IBTC Capital Ltd

    According to the DMO, N250 billion Sovereign Sukuk whose offer opened on December 16, 2021, closed December 23, 2021, with an unprecedented subscription level of over N865 Billion. This outcome represents a subscription level of 346 per cent.

    The DMO also reported that demand for the bond was from banks, fund managers, pension funds, as well as non-interest financial institutions, ethical funds, cooperative societies, and retail investors.

    Last year, in June, the DMO also said the result of the third Sovereign Sukuk for which it offered N150 billion to investors has attracted 446 per cent or N669.124 billion.

    “The increasing level of participation by a more diverse and larger number of investors is a confirmation that the DMO’s objectives of issuing Sovereign Sukuk to grow the domestic investor base and promote financial inclusion is being achieved.

    In addition, the high subscription level is proof of investors’ acknowledgment of the impact the $362.57 Billion Sovereign Sukuk issued between 2017 and 2020 has had on the development of road infrastructure in Nigeria.”

    Proceeds of the bonds are to be utilized for financing the rehabilitation and reconstruction of road projects across the six geopolitical zones and the Federal Capital Territory.

    An oversubscription of any sale of security especially government security indicates demand for government bonds remains high despite concerns about Nigeria’s high debt to service rations. Nigeria’s Sukuk Bond has a history of being oversubscribed.

     

    Dollar funds to the rescue

    Investors looking to diversify their portfolio and protect their wealth against the repeated depreciation of the naira through investment in dollar-denominated assets have also been given the US Dollar fund option.

    Afrinvest Asset Management Limited introduced to the investment market,  an open-ended mutual dollar fund which pays as much as 7.5 per cent interest per annum. The fund provides a significantly higher return compared to funds kept in a domiciliary account in Nigeria or current bank account in Europe or America.

    Afrinvest Asset Management Limited Managing Director Ola Belgore said: “The Afrinvest Dollar Fund was created to help investors achieve income generation, capital preservation and portfolio diversification in the short to medium term. It is designed to deliver significantly higher returns and dividends will be paid twice a year.” Nigerians will be able to invest in the fund with as little as $1,000.

    Stanbic IBTC Dollar Fund inaugurated by Stanbic IBTC Asset Management also aims to provide currency diversification, income generation, and stable growth in US Dollar.

    In emailed note to investors, the investment company said it seeks to achieve this by investing a minimum of 70 per cent of the portfolio in high-quality Eurobonds, a maximum of 25 per cent in short term US Dollar deposits and a maximum of 10 per cent in US Dollar equities approved and registered by the Securities and Exchange Commission of Nigeria.

    Savings depositors lose more income to banks

    Findings showed that bank customers are paying 36 per cent maximum lending rates for loans but getting an average of 1.15 per cent interest on savings deposits with their banks, the CBN data has shown.

    The report, released in furtherance of the CBN’s transparency and full disclosure stance showed that as of September 17, 2021, manufacturers pay a maximum rate of 36 per cent per annum for Stanbic IBTC loans, Heritage  Bank (35 per cent), Heritage Bank (35 per cent),  FCMB (30 per cent), Zenith Bank (30 per cent), Fidelity Bank (24 per cent) and Keystone Bank (34 per cent), among others.

    Heritage Bank however priced its agriculture and forest loans at 35 per cent per annum, followed by Keystone Bank (34 per cent),  Zenith Bank (30 per cent), Providus Bank (30 per cent), Sterling Bank (33 per cent), Polaris Bank (32.50 per cent) among others.

    Loans to the government were priced highest in the industry, with Union Bank collecting 49 per cent per annum maximum loan rate from its government customers followed by FCMB and Stanbic IBTC (42 per cent), Heritage Bank (41 per cent), Sterling Bank (33 per cent), Providus Bank (30 per cent), Wema Bank (30 per cent), Zenith Bank (30 per cent) among others.

    However, Ecobank, Access Bank, FCMB, Fidelity Bank, GTBank, Keystone Bank and Polaris Bank pegged their interest rate on savings at 1.15 per cent.

    Others that adopted the same of 1.15 per cent on savings deposits are Stanbic IBTC, Sterling Bank, Titan Bank, UBA, Union Bank, Wema Bank and Zenith Bank.

    Heritage Bank, however, pays 4.20 per cent, which is the highest interest on savings deposits on the reviewed date, followed by SunTrust Bank which pays 4.10 per cent.

    Ecobank pays 9.67 per cent for time deposit, others are Access Bank (9.52 per cent), Coronation Bank (8.55 per cent), Heritage Bank (13.88 per cent), GTBank (5.57 per cent), Keystone Bank, 8.22 per cent), Nova Merchant Bank (10.72 per cent), Rand Merchant Bank (8.85 per cent), Sterling (9.77 per cent). Others are Zenith Bank (4.72 per cent), Wema Bank (4.94 per cent), UBA (1.00 per cent) FCMB (0.25 per cent), among others.

    The CBN observed that despite the rise in lending rates, banks were paying less deposit interest to depositors with the rising spread between an average term deposit and average maximum lending rates.

    The spread gap indicated that customers are paying a far higher fee than they are getting from their banks.

    CBN Governor Godwin Emefiele noted the improvement in lending to the real sector following the introduction of the Loans-to-Deposit Ratio (LDR) in 2019.

    “Industry gross credit increased by N6.63 trillion from N15.57 trillion at end-May, 2019 to N22.20 trillion at end-July, 2021. The credit growth was largely recorded in manufacturing, oil and gas and agriculture sectors,” he said.

     

    Views from stakeholders

    CardinalStone Partners Limited Managing Director Michael Nzewi said foreign investors understand the problems in developing nations like Nigeria which require a premium for them to find their economy attractive.

    “Foreign providers of short-term capital usually require appropriate interest rate compensation or sufficient currency repricing to embark on investments in relatively risky climes. This set of investors is likely to weigh the Nigerian offerings (in terms of interest rates, currency, and overall reforms) vis-a-vis those of competing markets going forward. All considered we expect foreign investors to remain mostly averse to Nigerian risks this year,” he explained in an emailed interview response.

    According to Nzewi, authorities should embrace more pro-market paths to encourage foreigners to take on more naira risks. There should also be policies that will attract longer-term capital as opposed to fleeting hot monies. Promulgation and implementation of appropriate reforms, improvements in ease of doing business, provision of adequate infrastructure, and tilt to a more liberal currency regime are some measures that could be adopted.

    For Czartoryski, Mutual Funds are the next big thing in Nigerian finance. “If you had asked, 10 years ago, what was the next big thing in Nigerian finance. The correct answer would have been pension funds which have grown to over N10.58 trillion assets. But the correct answer to the same question today is Mutual Funds, which are set to grow to rival the pension funds in size in the years to come.

    And mutual funds will provide Nigeria with a pool of much-needed capital. The outlook for Nigerian savers and investors is undergoing a complete transformation.”

    He explained that part of the transformation that investors are experiencing has to do with risk. For instance, when investors bought T-bills they were buying essentially risk-free investments. And when they put money into savings deposits with banks, they had the implicit protection of the CBN and Nigeria Deposit Insurance Corporation, leading most investors to believe they held a guarantee.

    “With Mutual Funds the structure is different. A mutual fund is a collective investment scheme, meaning that investors own all the economics of the fund, less the fee charged by the fund manager. So, the economic structure is better than that of a bank deposit. However, mutual funds do not offer guarantees. So there is a scale of risk, starting with money market funds, moving on to fixed-income funds, then balanced funds and equity funds,” Czartoryski disclosed.

    He explained that as mutual funds grow, they will create a growing portion of the nation’s overall savings.

    “Mutual Funds stand in the middle between Treasury Bill returns which are low and savers’ desires for investment returns that beat inflation. That means that they will have to be active and will have to sweat their investments, whether those are government bonds, corporate bonds, or equities.  Remember that we are moving from an era when it was easy to beat inflation into an era when it will be difficult to beat inflation. There is a lot of work to be done,” he said.

    “We should not hold our breath for a return to double-digit yields from Nigerian Treasury Bills. The last communique from the Monetary Policy Council of the CBN made it clear that inflation is seen as a structural problem, rather than a problem that can be addressed with interest rates. At some point in the future, T-bills yields may need to back up, but the rise may be gradual rather than rocket-like. This is why a transformation in the way Nigerian savers invest is likely because there is no easy way back to T-bills that yield more than inflation,” he predicted.

    Aside, Mutual Funds, there are also Fixed Income Funds and infrastructure funds which are not as popular as Mutual Funds. At the half-year stage in 2020, 61 per cent of all Mutual Fund money was in Money Market Funds, 17 per cent was in Fixed Income Funds, 10 per cent in US Dollar Bond Funds, four per cent in Infrastructure Funds, and three per cent in Real Estate Funds.

    Those are the major categories. Where an investor puts his or her money depends on the currencies held (Naira or US Dollar) and the risk appetite desired.  Money Market Funds are generally a little safer than Fixed Income Funds.

    Financial pundits insist that the growth of the fund management industry presents several opportunities and threats. The opportunity is to participate in an extraordinary phase of growth as investors increase the proportion of their savings that they hold in Mutual Funds or other high yield assets.

    Another route to diversification is the Nigerian equity market, though many investors have reasonable doubts as to the equity market’s long-term performance.

    Still, there are pockets of value in the equity market which are worth exploiting, and there are number of listed companies whose long-term internal returns on equity (RoE) suggest positive long-term total returns.

    Looking forward to the year 2022, Yusuf predicted that headline inflation would remain elevated because the causative agents remain dominant. He said that a broad-based harmonisation of fiscal and monetary policies towards addressing the identified structural constraints will significantly help to moderate inflationary pressure in the medium term.

    For Czartoryski, Nzewi and other investment pundits, the rise of Mutual Funds calls for a new level of risk management across the sector. A rapidly-growing industry requires a high level of risk management if it is to maintain the confidence of investors.

    Overall, the Mutual Fund industry is taking off in Nigeria, with rapid growth recorded in recent years. Investors increasingly want to build their savings with professional Mutual Fund managers rather than saving their money in banks. Whichever option an investor chooses, what is important is a security of funds and good returns on investment that cancels Nigeria’s double-digit inflation rates.

  • Nigeria’s growing hunger crisis

    Nigeria’s growing hunger crisis

    With the steady hike in food prices, many Nigerians have been forced to skip meals and look for other means of survival. In this report, GRACE OBIKE compares food prices and how Nigerians are being affected by them.

    Eighteen-year-old Martha Samuel dropped out of school to help her family buy food and meet other needs. She buys a carton of sachet water for N200 direct from the factory which she then sells to customers at N20 per sachet Pre-pandemic, a sachet of water was selling for N5, it went up to N10 last year and has since shot up to N20 per sachet.

    Whatever little profit she makes goes towards supplementing the food costs for herself, her siblings, and their parents who were laid off during the pandemic and work odd jobs when they can get them.

    Most days, Martha sustains herself by sipping on a sachet of water. She forgoes having a meal during the day so that she can buy something for the family’s one substantial meal which they share in the evening.

    Martha is among the thousands of Nigerians who have had to cut back on their food intake as food prices continue to rise. According to the 2020 Global Hunger Index, Nigeria is ranked 98th out of the 107 countries among the ten hungriest countries in the world which include countries like Afghanistan, Haiti and Chad.

    Nigeria also performs poorly on the global Hidden Hunger Index— the measure of essential minerals and vitamins in food. These micronutrients deficiencies account for approximately 7 percent of the global disease burden. Mild to moderate deficiencies of micronutrients have detrimental effects on human functionality and productivity. Iron deficiency leads to impaired physical and cognitive development in infants and young children and decreased work productivity in adults.

    According to the Nigeria Bureau of Statistics, over 50% of all households reported cutting back on food between July and December last year due to falling wages and rising food costs. Around 20 % of Nigerians have lost their jobs according to a survey of 3,000 formal and informal sector businesses conducted by the National Bureau of Statistics and the United Nations Development Programme. This has pushed over 11 million people into poverty raising the number of people classified as poor to over 100 million. According to the NBS, the rate of unemployment is 33 % with youth unemployment being the highest —42.5%.

    A survey by the NBS indicated that an estimated 18% of all households in Nigeria have at least one adult who does not eat for an entire day at a time, compared with 6% who were going without a meal before the pandemic.

    The inflation averaged 17.42% between January and September 2021 with wide-ranging price increases across items such as cereals, meat, fish, and fruits accounting for nearly 70 % of the rise. The soaring costs of food have partly been blamed on the worsening conflict between farmers and herders in the Middle Belt states of Adamawa, Benue, Kaduna, Nasarawa, Plateau, and Taraba, the decade long Boko Haram insurgency in the north, a weakening Naira and high fuel prices.

     

    Overall inflation (interactive visual)

    In January 2021, a survey by the NBS found that 38 percent of households (44 percent in urban areas) – had reduced income for the period August 2020 to January 2021 compared to the same period a year earlier. Falling incomes, rising food prices, and the absence of government support combined to leave many people going hungry.

    Although food prices have been on the rise, a significant jump was recorded in 2019 when the government closed the land borders to curb dumping and discourage the importation of some food items, especially rice. Rice farmers in states such as  Ebonyi, Kaduna, Kano, Niger, Benue, Taraba, and Borno celebrated the border closure as they saw an upsurge in the sale of locally grown rice. However, the high cost of production means that the price of locally grown rice is more expensive than imported rice.

    Despite the re-opening of four border crossings in December last year, the prices of food are yet to stabilize and have been surging as import restrictions on staples such as rice remain.

    “Before the lockdown, a (50 kilograms) bag of rice was 18,000 Naira ($44), during the lockdown it was 22,500 ($55), and after the lockdown, it’s 25,000 ($61),” said mother of eight Hajara Suleiman.

    Hajara said her family has learnt to live without the three square meals because they have less than N1500 to feed the family of 10. “I used to make liquid detergent and sell in my neighborhood but after I gave birth to my last born three months ago, we had spent all our savings. My husband barely makes enough as a casual labourer to meet our food needs.”

    Hajara says sometimes her family only has a thin gruel of maize to eat as that is all they can afford.

    “At least during the rainy season, the children could feed on the cashews and mangos that are abundant in the neighbourhood. But now the season is over so we are back to eating the little that we can afford. Most times we eat tuwo (a staple made from maize) in the morning and night and drink water during the day to stave off hunger pangs,” she says.

    The price of medium size eggs remained steady at about N498 in January 2017 and had risen to N519 by December last year. Since January this year, the price of a dozen medium-size eggs has risen every month by between N6 and N15 to reach an average of N585.64. Consumers in Bayelsa state however are paying upwards of N736.47 for a dozen eggs.

    The price of rice, which is the most consumed food in Nigeria after eba, has been rising steadily to the current N546.71 for a kilo of imported rice. A kilo of local rice is even more expensive as it is retailing between N1,500 and N2,000.

    Five tubers are sold for more than N5,500 or N6,000 depending on the size of the tuber. The same set of yam was sold between N3,000 and N4,000 in May 2021. The price of a single tuber has also risen from N500 last year to between N1,000 and N1,200 in June this year.

    A mudu (the common unit of measure in which foodstuff is sold in markets across Nigeria) of beans is currently retailing for more than N900 up from N350 in July last year. The price of a kilo of bulb onions is now over N411 compared to N180 in July last year. The price of one mudu of garri, (cassava flour) , has gone up from N272 to N300; a mudu of maize which was last year selling at between N184 and N186 is now being sold at over N400. A kilo of tomatoes which sold for N284 last year is now selling at N1,000.

    A medium-sized Titus fish (Mackerel) is retailing for N1195 as of August 2021 compared to N1011 that it was sold for in December 2020.

    Fish seller, Rose Ojo is frustrated because her customers are blaming her for the price increase. “I get so discouraged because l am now buying a small carton of fish for N29,000 and have to mark up my prices if l am to stay in business. I am even celebrating that the price is down! It was N30,000 two weeks ago!

    Poultry farmer from the AMAC area council, Abigail Bako says she suspended her chicken rearing business and has now turned to rear goats after the price of chicken feed has made chicken farming unsustainable. “The price of a bag of chicken feed last year was N4,000 but by July, this year it went up to N6,500 for a 35kg bag. It has gone up further since July,” she says.

    With food priced beyond the reach of many, it is no surprise that millions of Nigerians are going to bed hungry and malnutrition is on the rise. The worst affected are children under the age of 5 years and pregnant women who are at risk of death. Nutrition-related factors are responsible for about 45 % of deaths in children under five years of age and anemia contributes to 20 % of maternal mortality. The gains made in reducing the rate of child and maternal deaths are likely to be lost.

    Maize and beans farmer in Niger State Bako Sule explained that the hike in food price is a result of the growing insecurity in major agrarian states that supply food to the entire country.

    According to him, farmers in states like Benue, Kaduna, Plateau, Niger, Zamfara, Sokoto, Borno, Yobe and some other states that have not been completely overrun by bandits, marauding kidnappers and Boko Haram have been displaced from their farms and the few left to farm in states that are presumed to be fairly safe are battling for their produce with herders.

    Bako who stated that things might get worse next year explained that the few of them left to farm have to battle herders, high prices of fertilisers, seedlings and a lot more.

    Public Health Nutritionist, Nutritional Epidemiologist and Senior Lecturer, Department of Public Health Faculty of Health Sciences, National Open University of Nigeria, Dr. Florence Uchendu explained that Nutrition is important for a pregnant woman because there is a nutritional requirement for a mother to successfully carry and deliver a baby, while the baby needs adequate nutrition to survive.

    She said a hungry mother will not have all the nutrients required to carry a baby which might lead to miscarriage or the delivery of an unhealthy baby, to a high mortality rate in both mother and baby.

    Nigeria has the second-highest burden of stunted children in the world, with a national prevalence rate of 32 percent of children under five. An estimated 2 million children in Nigeria suffer from severe acute malnutrition but only two out of every 10 children affected is currently reached with treatment. The most affected are children and pregnant women in the North West and North Central states, where a combination of long-running armed conflict and violence, disrupted livelihoods, reduced market access, localized food production shortfall and the impacts of COVID-19 on food supply chains has placed many at risk of death from hunger.

    A March 2021 report by the Food and Agriculture Organisation (FAO) had indicated that 600,000 children under 5 years were at risk of death from severe malnutrition if nothing was done. The report also indicated that over 123,000 pregnant or lactating women would also suffer from acute malnutrition.

    Fortunately, an organisation in Lagos state, the Lagos food bank, has been making attempts to save malnourished mothers, their babies, and hungry residents of the state.

    Founder/Executive Director, Lagos Food Bank Michael Sunbola explained that since the organisation began operation in 2015, it has not had the surge of calls and demands for food parcels like it has been having since the outbreak of the COVID-19 pandemic. He said that when they started, they were focused on slums but after the pandemic, they began receiving calls from regular and middle-income families in other parts of Lagos, and presently, the demand for food from them has increased by over 40% and they are forced to turn down a lot of people because they cannot sustain the demand.

    Sunbola said a lot of middle-income people now come to them regularly, some with their children tagging along and when they are unfortunately turned down, they beg for food to be given to their hungry children alone while they are left without.

    He said the organisation also embarks on school feeding programs and nutrition plans where children within the first 1000 days and pregnant women are given supplements and baby formula and with the pandemic and increase in nutritional needs they have gone as far as setting up nutrition hubs in communities.

    The founder added that so far they have handled over 1000 malnutrition cases and provided food parcels for over 1.7 million people all over Lagos and its environs.

    In Agege, a suburb of Lagos, beneficiary of the food bank Mary Daniels explained that she did not realise that she was malnourished when she was pregnant with her daughter until she visited the health center.

    “I heard of the Lagos food bank, got registered and got my card, they gave me nutrition supplements throughout my pregnancy and when I could not afford to go to meet them, I was informed of the outpost they created close to my place and I did not have any trouble accessing what I needed,” Maryl said.

    In an attempt to reduce hunger among its citizens, the federal government scaled up the existing cash transfer programme launched in 2016 that paid eligible households 5,000 naira (US$12) per month. The program made payments to almost one million households by June 2020 but that number had fallen to 400,000 deserving households by the end of last year.

    The 5,000 Naira ($12) cash transfers per month are way below the current national poverty line of 11,450 Naira ($28) per month and are not enough to guarantee an adequate standard of living for most people.

    The beneficiaries are selected from the National Social Register which currently has 30 million Nigerians from 36 states and the Federal Capital Territory representing seven million poor and vulnerable households.

    The limited amounts of assistance that people have received during the pandemic has led to questions about how the federal and state governments have been spending the funds dedicated to the Covid-19 response.

    With the present economy, it is clear that living off a conditional cash transfer of N5000 monthly will be impossible for an individual to talk more of a family, however poor or the environment they may live in.

    Breaking down the cost of living in the country, using the distribution of expenses, the website numbeo.com used the cost of items in restaurants, markets, cost of transportation, monthly utilities, sports and leisure, childcare, clothing and shoes, rent per month, salaries and finances to determine the actual cost of living and estimated that a family of four estimated monthly costs are $1,624 (N667,418) without rent, while a single person’s estimated monthly costs are $448 (N183,947) without rent.

    “We keep hearing rumors about the government sharing money and food, but I haven’t seen any in my area,” said Esther Adejumoke, a mother of seven from Lagos State, Nigeria, who lost her job as a shop attendant in early 2020 due to COVID-19 related closures. Although her employer has since re-opened the shop, Esther has not been able to return to work as the employer has opted to employ a relative. Esther joins the estimated 24 million people who are unemployed.

    A joint report by  three Nigerian nongovernmental groups on the distribution of food assistance in Lagos during the pandemic found that “politicians hijacked the packages at the local level” and there were “no objective criteria for identifying vulnerable persons.”

    In August 2020, a joint report by three Nigerian NGOs on the distribution of food assistance in Lagos during the pandemic found that “politicians hijacked the packages at the local level,” and that there was “no objective criteria for identifying vulnerable persons.”

    A new “rapid response” cash transfer program began in January 2021 and was intended to reach 1 million people nationwide, primarily in urban poor communities. The plan also included other measures to preserve jobs and income, such as payroll support and loans to micro and small businesses, although some of these programs focused on the formal sector and excluded informal workers.

    The implementation of the cash transfer programme has received widespread condemnation following claims that beneficiaries were being coerced into surrendering some of the money to officials managing the programme. Some of the officials were also demanding and accepting bribes to include undeserving people into the list of beneficiaries.

    Recommendations made to meet some of the shortfalls and address the criticism made about the way the social protection programme is being implemented include involving community-based organisations in establishing criteria for social assistance measures;  including an assessment of households’ access to food, water, basic shelter, and housing, sanitation, and essential education.

    Other recommendations also include breaking down any potential barriers that vulnerable communities, such as requiring the urban poor to have access to a bank account, telephone credit, or proof of residency before they receive assistance.

    The amount paid as cash transfers should also take into account the amount needed for the recipient household to achieve an adequate standard of living, with adjustments made for the cost of living in high-cost areas.

    One of the initiatives under this programme is the Home Grown School Feeding Programme (HGSF), which aims to deliver school feeding to young children with a specific focus on increasing school enrollment, reducing the incidence of malnutrition (especially among the poor and those ordinarily unable to eat a meal-a-day). Under the initiative, local women are employed as cooks and local farmers are contracted to supply the food and thereby stimulate economic growth. The programme is targeted at rural schools.

     

    Gender and nutrition

    The effects of the pandemic have exposed the existing flows in food systems, many of which stem from gender inequalities and unfair treatment of women and girls. Women and girls are the majority of food producers and food providers for their households, but their contributions are frequently unseen. Too often, women eat last and least.

    In Northeast Nigeria, women have lost access to the cash for work programs that allowed them to buy seeds and grow crops.

    Rising hunger and food shortages are also putting additional burdens on women, from mental health risks to gender-based violence.

    For hungry Nigerians like Martha, their biggest concern is to get food—any food for their families. Concerns about the quality of the food are far from their mind when they make their purchases. An estimated 85% of the foods produced in the country lack essential micronutrients which lead to weakened immune systems in the population. To address the hunger problem, the government has to ensure that everyone not only has access to food but to quality food.

    • This article was supported by the Africa Women’s Journalism Project (AWJP) in partnership with The ONE Campaign and the International Center for Journalists (ICFJ).
  • Pneumonia: A silent killer with no advocates

    Pneumonia: A silent killer with no advocates

    Despite the deadly nature of the disease, Nigeria is not paying enough attention to pneumonia. Because of lack of adequate attention to the killer disease, Nigeria may not achieve the Sustainable Development Goals (SDGs) 3.2 by 2030, which commits countries globally to end preventable deaths of newborns and children under five years of age, writes FRANK IKPEFAN.

    Nathan (surname withheld) had just celebrated his first birthday in July with other children in an orphanage home in the Federal Capital Territory, Abuja, with a glow. A month later, he fell ill and started coughing ferociously. For days, the coughing refused to stop.

    The mother, Christiana (surname withheld) in those few days battled to stabilise Nathan’s health. He would keep everyone up through the night. From coughing, the cold crept in, followed by vomiting. The child was restless. Nothing the young Nathan took stayed in his system.

    The mother applied different drugs as recommended by a pharmacist, the cough and cold wouldn’t go away. Running out of ideas on how to return the boy to good health, she phoned her mother who asked that the child be brought to her place.

    Off she went and with the help of her mother, they battled the fever together. “At some point, we wanted to rush him to the hospital in the estate when he started rolling his eyes in the morning. The cold had entered his system,” she told this reporter.

    After about a week, Nathan finally bounced back to his feet, running around the house again. “I was so scared of losing him to a cold that entered his body,” she said.

    Nigeria losing more children to pneumonia than other diseases

    Like Nathan, not all children in Nigeria survive child pneumonia after their first birthday.

    Globally, pneumonia remains the biggest infectious killer of children 935, 000. According to the World Health Organisation Global Health Observatory, more than half of all deaths from pneumonia are in five countries.

    The countries include India, Pakistan, the Democratic Republic of Congo, Ethiopia and Nigeria.

    According to the United Nations Children Funds (UNICEF), Nigeria loses over 120, 000 under-five children to child pneumonia annually.

    The organisation said Nigeria accounted for 17 – 19 per cent (with over 120, 000 deaths) of under-five deaths resulting from child pneumonia.

    Speaking at a two-day media workshop on child pneumonia, a public health expert, Dr Adamu Isah said that child pneumonia remained a silent killer of children globally.

    Dr Isah, who is the Chief of Party, Integrated Sustainable childhood Pneumonia and Infectious disease Reduction In Nigeria (INSPIRING) Project for Save the Children International, said: “Pneumonia is a leading killer of Nigerian children under five, with annual deaths estimated to be 127, 500.

    “The disease is killing more people, especially children, than other popular diseases like diarrhoea, sepsis, malaria and measles.

    Pneumonia: A silent killer with no advocates

    According to him, despite the deadly nature of the disease, Nigeria is not paying enough attention to pneumonia.

    Because of lack of adequate attention to the killer disease, Nigeria may not achieve the Sustainable Development Goals (SDGs) 3.2 by 2030, which commits countries globally to end preventable deaths of newborns and children under five years of age.

    Going by the goal, all countries are expected to reduce neonatal mortality to at least as low as 12 per 1, 000 live births and under-five – mortality to at least as low as 25 per 1, 000 live births.

    “Today, child pneumonia deaths are not falling fast enough to achieve SDGs 3.2 by 2030. To reach SDGs 3.2, Nigeria needs to prevent the deaths of -70, 000 children by 2030. Improving pneumonia outcomes is very critical to do so.

    “Pneumonia is a silent killer of children under the age of five but it doesn’t get the attention it deserves. 20 per cent of deaths coming from children under age five are coming from pneumonia.

    “If we don’t address pneumonia we are really going to have a dent in under-five mortality. It is an issue which we need to highlight. Those under one year seem to be more at risk of death. And they die at home as well. We have to drastically reduce the death of children especially in their first year of life if we are to reduce under-five deaths.

    “Today we are having 20 per cent of deaths due to pneumonia and we have to reduce it drastically. We should be reducing more than 70, 000 deaths if we are to achieve the target. We are not catching up. A lot of people don’t know much about pneumonia, including religious leaders.”

    How lack of oxygen, awareness are leading to more deaths of children from pneumonia

    Like Nathan’s mother, many parents don’t know the symptoms associated with child pneumonia.

    Speaking at the two-media workshop, a public health expert, Dr Abdullahi Namadi noted that there is a gap in knowledge about symptoms, prevention and treatment of the disease, especially by parents and some physicians.

    Namadi, who is the Director of Public Health at the Jigawa State Ministry of Health, said: “People usually refer to this kind of illness as a spiritual attack so they run to the traditionalists for treatment.”

    Namadi identified fever, restlessness and cough as the most common symptoms associated with child pneumonia.

    He added: “Lack of awareness is a serious challenge because it is key because people need to have the knowledge and understand the problem so they can take action.

    “One of the key things is that once a child is having fever, restlessness and cough – most likely the child has pneumonia and one thing with pneumonia is that the symptoms are not so specific because children with fever can also have malaria and causes of other illnesses.

    “In this case, it requires early presentation at a health facility so that the health workers can look clearly to know actually what the problem is. Sometimes, some children are being treated for malaria not pneumonia but at the end of the day, it is pneumonia that will end the life of the child.

    “Also, we need to train our health workers also to be able to detect when a child has pneumonia and treat the child accordingly.

    “But of course, the starting point is the community. People have to be informed about the signs and symptoms of pneumonia and what they should do and at what time because the people need to make a decision at the right time.

    “Sometimes we have a lot of delay at home where the parents start giving the child local medication until the condition deteriorates or sometimes the child is even gasping for air that is when the parents rush the child to a healthcare facility. In most cases, it is too late.”

    Many health facilities don’t have oxygen available

    Continuing, he said: “What compounds the problem in the treatment of pneumonia is that many of our health facilities don’t have oxygen facilities available and that is one thing that Save the Children is trying to address.

    “Once the child starts gasping for air, the key drug that the child needs is oxygen to save the life. Oxygen is a lifesaving drug and when we don’t have it in our healthcare facilities then it becomes a challenge.

    “In Jigawa State what we are trying to do is to have an oxygen policy. We already started the process and we have gone a long way in developing the policy. We are also using the national policy on oxygen as a guide. By the time our policy is available, we will have the opportunity to have a lot of oxygen in our healthcare facilities.”

    Fed Govt to scale-up services on pneumonia, childhood diseases treatment

    Despite a national pneumonia control strategy and implementation plan as part of renewed efforts to ensure the survival and well-being of Nigerian children, the disease still remains rampant, killing children annually.

    However, Minister of Health Dr Osagie Ehanire has assured of efforts by the Federal Government to scale – up critical services, interventions to protect children from pneumonia and other childhood diseases.

    He said through the Global Action Plan for the Prevention and Control of Pneumonia (GAPP) initiative, the Nigerian Integrated Pneumonia Control Strategy and Implementation Plan, critical intervention and services will be brought together to protect children from diseases.

    The minister, while expressing appreciation to development partners, urged them to continue to support the government, especially in setting-up human resources, staff accommodation, electricity and water supply in Primary Health Care (PHCs) to cater to the health needs and universal health coverage.

    According to the minister, the report shows that about 808,920 paediatric pneumonia associated deaths and more than 100 million childhood pneumonia globally, on an annual basis majorly from low and middle-income countries.

    Ehanire, while speaking recently at an event to mark the 2021 World Pneumonia Day in Abuja, added that three-quarters of global mortalities happen in 14 countries, including Nigeria, which has 162,000 under-five deaths annually.

    “If the current trend in pneumonia-related childhood mortality continues, especially with the advent of Delta variant of the coronavirus, the SDG under-five mortality reduction target of having less than 25 deaths per 1000 live birth will not be achieved.

    “Therefore, Nigeria needs to accelerate efforts towards reducing the burden of pneumonia and other childhood killer disease,’’ he said.

    According to Ehanire, the WHO report showed that malnutrition, indoor and outdoor air pollution, inadequate breastfeeding and lack of immunisation, rank highest among predisposing factors for childhood pneumonia.

    Also, Nigeria’s Country Representative at WHO, Walter Mulombo, stressed the need to highlight the causes of pneumonia and air pollution, appropriate treatment which will significantly reduce the number of deaths recorded due to its complication.

    Mulombo, represented by Technical Officer, Child and Adolescent Health in the organisation, Dr Joy Ufere-Isikima, stressed the need for the government to increase access to vaccines and scale up some of its programmes.

    He listed exclusive breastfeeding, nutrition, and access to vaccines as factors that will help prevent, protect and treat children from pneumonia and air pollution complications, as well as achieve universal health coverage.

    Save the Children International (SCI)’s Chief of Party for inspiring project, Dr Isah stressed the need for the dissemination and implementation of the National Pneumonia Strategy to reduce the rates of deaths connected to pneumonia and air pollution.

    Isah added that the organisation had so far supported over 64 PHCs in some states with pneumonia and air pollution intervention to reduce the risk and consequences of the diseases.

  • Harvest of deaths from fatal gas explosions

    Harvest of deaths from fatal gas explosions

    Like a dammed river suddenly losing its fetters, a gale of domestic gas accidents has rocked the country, leaving in its wake avoidable fatalities. LUCAS AJANAKU writes.

    She sat down under a canopy barley large enough to provide shelter for her and her protruding stomach. She gazed straight into the sky and hot tears dropped from her swollen eyes. Amarachi, a dealer in plastic chairs, buckets and other household utensils, along Apapa Oshodi Expressway, picked her phone and placed a call to Gbagada General Hospital Burns Unit where her childhood friend, Blessing (not real name), mother of three, was receiving treatment from the burns she suffered during a domestic accident in her kitchen.

    “Mama Ejima, please be strong. Don’t lose hope. God will heal you. You will not die in Jesus’ name. Cling to your creator,” Amarachi was heard encouraging her.

    According to her, the rumour mill had gone berserk that she too had passed on. Since visiting time for visitors at the hospital was still far, she had to call her husband and insisted she spoke with her directly.

    “She is my very close friend. She entered her kitchen and lit a stick of matches only for her and her friend to be enveloped in a huge flame. There must have been a leakage in her cooking gas called Liquified Petroleum Gas (LPG). While her friend died before help could come, she was rushed to Gbagada General Hospital. I am so sad because the family is struggling to make ends meet. The lady has a set of twins that are less than two years old. They had a child already before the twins came,” Amarachi said.

    As Nigerians were bracing for Christmas, residents of Ojekunle Street of Ladipo Market, arguably the largest in the country, were thrown into mourning, no thanks to a gas explosion that rocked a shop used by mechanics.

    “Four adults, comprising three males and one female, were recovered dead,” Southwest Coordinator, National Emergency Management Agency (NEMA), Ibrahim Farinloye said, adding that a 10-year-old boy who was rescued alive died on his way to the hospital.

    The fire broke out after a cylinder exploded at a gas shop in the densely populated Mushin area of Lagos.

    It was put out in about one hour and “we were able to rescue 10 people alive and they have been treated and discharged on the spot,” Director-General, Lagos State Emergency Management Agency (LASEMA) Olufemi Oke-Osanyintolu, said.

    The cause of the explosion is not known yet but authorities are suspecting one of the gas cylinders exploded as a result of a fire close to the gas shop and work being done on one of the cylinders.

    “Out of the four bodies (one was) a woman who was said to be frying (food items) while Sodiq (another victim) was operating on a cylinder,” Farinloye said.

    At the scene of the explosion, a crowd lined behind a barricade as rescue workers and some residents carried away the gas cylinders left within the premises while remains of the vehicles destroyed were packed at one corner.

    Balogun Mubaraq, a resident in the area, said many people with various degrees of burns were rushed to a local hospital.

    Johnson Omitola, a mechanic in the area, said one of those killed is a motorcyclist whose head was rudely chopped off as he rode past the scene. “It is sad that people died but the casualty figure would have been more than 50 had people fully opened their shops. Only the woman that sells akara was identified with her full body. There were shredded human parts littering the adjoining streets,” Omitola said, calling for strict regulation of gas retailing in the country.

    •Gas cylinders in the rubble

    The fire destroyed three shops, six shanties and about 12 vehicles, said Olajide Ogabi of the Lagos State Fire Service. He faulted the location of the gas shop within a residential area and along a power line and said the shop was once closed by the state government because of its location.

    Sometime on June 17, 2021, there was another gas tragedy. At about 10:32 pm precisely when people were returning home from work, an LPG tanker exploded at OPIC Plaza on Mobolaji Bank Anthony Way, beside the popular Lagos Sheraton Hotels and Towers, Ikeja.

    This unfortunate incident saw no fewer than 13 persons sustaining various degrees of injuries and about 25 cars destroyed.

    Farinloye said the explosion resulted in a fire outbreak that engulfed the premises of Ogun State Property Investment Company (OPIC) Plaza beside Sheraton Hotels, which houses different commercial outfits including a supermarket and a Chinese Restaurant. The fire was put out at about 12.30 am, through the efforts of five fire trucks from the Lagos State Fire Service and two trucks from the Lagos State Emergency Management Agency Response Unit. When the dust settled, the fire had considerably damaged both lives and livelihoods in the vicinity.

    Between 2016 and 2020 similar incidents happened in Abule-Egba, Ijegun, Ile-Epo, Oke-Odo, Baruwa, and Abule Ado, all in Lagos.

    In Baruwa, an LPG plant located along densely populated Candos Road, Baruwa, Ipaja-Ayobo, in Ipaja/Ayobo LCDA, suddenly exploded and engulfed the entire area, killing at least 13 persons. Several other persons were injured, while properties worth millions of naira were destroyed.

    There were, however, conflicting figures of casualties as government officials claimed that eight persons died, but an eyewitness claimed he saw about 13 charred bodies recovered from the scene of the fire.

    The casualties included women and children. One of the women, identified simply as Mrs. Adebowale, 55, died on the cenotaph of her late husband in front of their house.

    She was said to have died while trying to retrieve from the house the money she borrowed as loan from one of the microfinance banks.

    Other victims were 39-year old Olushola  Adeleke and his two-year-old son, Martial. An official of Independent National Electoral Commission (INEC) Adeleke had escaped the inferno but remembered promising Martial was still in the building. His bold attempt to rescue his beloved son proved futile as both were consumed by a huge pall of fire from the gas accident.

    Among survivors were a mother and two children who were taken to Gbagada General Hospital Burns Unit for medical attention.

    It was gathered that an LPG tanker was in the process of discharging its content at the Best Roof Gas Plant Station but unfortunately, the station’s generating set was running and in the process sparked which exploded and threw the discharging tanker across the road.

    Director-General, Lagos State Emergency Management Agency (LASEMA) Olufemi Oke-Osanyintolu, blamed the incident on negligence on the part of the operators.

    Giving the post disaster assessment of the explosion, he said a total number of eight bodies were recovered at the scene while 15 victims suffered major burns and have been transferred to Gbagada General Hospital Burns Unit.

    Similarly, he said 25 buildings were damaged during the explosion out of which 10 were severely affected.

    Also, 16 shops, a private school building and a hotel were razed while a Pentecostal Church, Folem was mildly affected.

    He urged residents to report dangerous practices within their neighborhoods to the  relevant agencies.

    Again, on Christmas Eve, there was pandemonium at the Ayobo Ipaja area of the state over a gas explosion that occurred in the area on Friday.

    The explosion, it was gathered, happened around 1 am.

    Details of the explosion were sketchy. Unconfirmed report stated that the Chairman of Ayobo-Ipaja Local Council Development Area (LCDA), Mrs Bola Shobowale, confirmed the development.

    Residents of the area took to social media. One of them, @IamHorlapo, posted, “A year ago, we woke up to a gas explosion in Baruwa. Today, it’s another Pipeline explosion in the same Local Government which has claimed life and property. God has mercy upon us in this community.

    @iamoliver_may22 added, “Guys, please. My street in Baruwa is burning. Guys, please send help to Baruwa… There is a gas explosion and there is a power line in that area.”

    These explosions and tragic deaths are coming at a time the Federal Government is stepping up campaigns on the need for Nigerians to drop kerosene and charcoal for gas as a cheaper and cleaner cooking fuel.


    •First responders and sympathisers after the fire has been put out at Ladipo Market

    Domestic LPG consumption

     Nigeria’s per capita consumption of LPG is still low when compared with the population.

    It is estimated that the country will be saving about $10billion yearly if 50 per cent of the populace embrace the use of LPG implying that there is correlation between its usage and poverty reduction.

    The World Bank Group’s Oil, Gas, and Mining Unit, Sustainable Energy Department, in its study on: The Role of Liquefied Petroleum Gas in Reducing Energy Poverty, said increasing household use of LPG is one of several pathways to meet the goal of universal access to clean cooking and heating solutions by 2030, as stated in the United Nations’ Sustainable Energy for All Initiative.

    The UN’ Sustainable Energy for All Initiative, launched in 2011, sets as one of its three objectives universal access to modern energy services—electricity and clean cooking and heating systems by 2030.

    The group said about three billion people rely on solid biomass or coal for cooking and heating, and smoke from such fuel use is estimated to cause four deaths every minute. Universal access will require a multi-pronged approach: advanced cook stoves for biomass and other solid fuels, natural gas for urban households in countries that have or are developing an extensive gas pipeline network, biogas, and LPG. The International Energy Agency (IEA) estimates that more than 40 per cent of households newly gaining access to modern household energy by 2030 in the universal-access scenario will do so by switching to LPG.

    The Federal Government’s priority objective is to attain five million metric tons (Mt) of LPG consumption next year, which puts the national consumption target at 83.33,000 MT monthly from 2018 to 2022 estimates.

    The defunct Petroleum Products Pricing Regulatory Agency (PPPRA) said Nigerians consumed 89,910Mt, of LPG in January 2020, 7.9 per cent above the national consumption target of 83,330Mt.

    It said over the past two years, domestic LPG consumption has steadily been on the upward swing.

     

    Punitive cost

     The World Bank group noted that global LPG prices have more than doubled in real terms in the last decade, increasing at an annual average rate of nine per cent since 2001. This rate of increase is much higher than that for household income in most developing countries. Prices are now sharply higher.

    “Even in an efficient market with light tax on LPG, cooking and heating water with LPG would require upwards of $15 every month at today’s LPG prices. As such, LPG is unlikely to be the fuel of the poor,” it said.

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) blamed the international cost of LPG and the interplay of foreign exchange (forex) for hike in cost and sought full domestication of the product’s market to guard against its volatility like oil prices.

    Its Executive Secretary, Mr Bassey Essien, in a statement, said the Nigeria Liquefied Natural Gas (NLNG) produces four million metric tons of gas yearly, but allocates 350,000Mt for domestic consumption.

    He said: “We, as marketers, are saying that NLNG and others producing LPG should domesticate it by dedicating sufficient quantity that will cover our domestic consumption.

    “We have watched the continuous spike in the price of cooking gas, moving from N4 million to N5 million for a 20MT truck to the current price of N5.3 million within a month interval.

    “The current high price of cooking gas is not traceable to marketers (plant owners) or terminal owners but rather to the vagaries of the international price of the commodity and interplay of foreign exchange rates.

    “Nigeria consumes about one million Mt of LPG yearly and 65 per cent of the products are imported by marketers.

     

     LPG retailers explain Ladipo fire

      The Liquefied Petroleum Gas Retailers (LPGAR) branch of National Union of Petroleum and Natural Gas Workers (NUPENG) said the explosion at Ladipo Spare Part Market, Lagos was caused by acetylene gas.

    Its National Secretary, Olukayode Solomon, in a statement, commiserated with the families of the victims of the explosion.

    He said the incident was not in any way related to LPG which is popularly called cooking gas.

    He said: “It is important to state clearly that the outlet in which the explosion occurred was specifically an acetylene gas outlet.

    “It is important to state clearly that the outlet in which the explosion occurred was specifically an acetylene gas outlet.

    “The explosions of these industrial gasses often cause wide scale destruction similar to military bombs unlike LPG explosion which often causes inferno.”

    According to him, damage arising from LPG explosions usually comes as a result of spread of its inferno based on the level of gas leakage and spread.

    “On the contrary, industrial gasses such as acetylene and oxygen usually pull down structures around the scene of the explosion because of the high pressure of the industrial gasses as well as the very heavy weight of the industrial gas cylinders.

    “Also, acetylene and oxygen gasses do not use the same cylinders used for LPG as exemplified by the type of cylinders that littered around the scene of the explosion yesterday.

    “It is equally important to note that acetylene and oxygen gasses are not derived from the same sources as LPG,” he said.

    He explained that acetylene was also not regulated by the same agency that regulates LPG.

    Mr Solomon noted that LPG was derived from petroleum and natural gas and regulated by the former Department of Petroleum Resources (DPR) now replaced with Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

    “The regulation of acetylene gas, oxygen gas and the other related gasses is presently located within the federal ministry in charge of industry.

    “These clarifications have become necessary to forestall further misrepresentation of facts whenever an explosion relating to gas occurs.

    “We equally use this opportunity to implore the media as a whole to always seek clarifications before publication.

    “This is because this particular misrepresentation has been a regular occurrence in the recent time,” he said.

     

    LPG marketers react

     Reacting to the spate of gas tragedies sweeping across the country, NALPGAM has called for improvement in the handling and distribution of LPG to ensure safety.

    Essien said there’s need to improve safety in handling and distribution of LPG.

    According to him, the frequency of explosions and fatalities was becoming worrisome, which is not good for the image of Nigeria and the gas business itself.

    “As an association, we have always tried our best to heighten the awareness on the safe handling of LPG at homes, at retail shops and in transit.

    “We have a training centre where we undertake training in collaboration with consultants to the Department of Petroleum Resources on the safe handling and trucking of LPG,” he said.

    He said the group was awaiting a comprehensive report of what led to the incident from the relevant authorities and would utilise its recommendations to enhance safety.

    Essien said while the Federal Government was working on encouraging more Nigerians to switch to gas as energy of choice, such incidents were capable of thwarting the efforts of the government.

    There was, therefore, a need for every operator to adhere to the safety measures put in place to safeguard the usage and distribution of LPG at all times.

    Essien said strict regulation and monitoring should be extended to inflammable products such as acetylene and other industrial gases. He warned that filling and retailing of industrial gases have to be strictly monitored.

    “Regulators should pay attention to the activities of practitioners dealing in acetylene and other industrial gases so as to check these recurrent incidences. Failure to do this and the frequent misrepresentation in the media attributing acetylene explosions to cooking gas will erode consumers’ confidence in the use of LPG and heighten the fear factor that cooking gas usage is unsafe,” he warned.


    • An emergency rescue operation official after the explosion

    Causes of LPG explosion

     An expert said an LPG explosion is almost always caused by the accumulation of gas leak in an enclosed space combined with an ignition source, not a propane-LPG tank explosion (gas cylinder explosion). The leak can be from the gas appliance or other source not involving the bottle.

    Medswift, a leading First Aid, Fire Safety & Occupational Safety and Health Trainers in Kenya, said gas leakage is fuel in its final stage of ignition and can cause a fire explosion if left unattended.

     

    Detecting gas leak

     Medswift said gas cannot be seen, but it can be smelt. However, there are other ways where a gas leak could be detected.

    “If your flame is orange or yellow instead of blue and leaves soot on your cooking appliances; listen to identify a hissing sound from your gas connection or the banner.

    “If you detect or suspect that there is a gas leak in your home. Take the following measures to mitigate the threat.

    “Turn off the gas supply to ensure there are no more leaks; open all doors windows and any ventilation to ensure fresh air circulation in the house.

    “Do not use electric devices such as laptops and phones. These things cause a spark which can cause the already leaked gas to ignite.

    “Do not smoke, or use any open flames such as a candle because it can cause the leaked gas to explode, hence causing a fire,” the group said.

     

    Averting gas leaks

     Prevention, it said, is better and easier than cure. So, conscious action must be taken to prevent gas leaks in homes.

    Medswift gives some tips that can be used to ensure that there is no gas leak in homes. Some of them are: ensure your burner is tightly secured; check your appliances for wear and tear and ensure that they are serviced regularly; and inspect the LPG pipes after every refill before using.

     

    Preventing cylinder explosion

     Domestic gas cylinder if not well handled can lead to fatal accidents such as explosions. Therefore learning how to prevent gas cylinder explosion is important. The following are safety tips that you can apply when handling gas cylinders.

    “Keep the gas knob out of reach for children when not using,; make sure that the kitchen or cooking area is well ventilated for a good flow of air in case of a gas leak; educate people around you on gas cylinder safety measures and how to use and handle gas cylinders; do not use Meko for long hours while cooking; LPG cylinders should be bought from authorized dealers only.

    “It’s vital to follow the guidelines and educate the elders and kids about the handling of LPG cylinders, preventive measures and do’s and don’ts in case of an emergency. However, there’s no need to be fearful of LPG cylinders as they are of high tenacity. It is by proper maintenance of gas appliances that LPG explosions can be averted,” Medswift said, warning that on arrival at an incident involving fire, stop, observe, think: do not enter the area. A minor fire can escalate in minutes to a serious blaze. Call for emergency help and wait for it to arrive.

     

    Official response

     The Lagos State government had set up a team to monitor outlets where gas is stored in commercial quantities and carry out a safety audit in the state. So far, 1,850 places were surveyed out of which 15 were closed for not complying with safety standards, according to Director-General, Lagos State Safety Commission, Lanre Mojola.

    In July this year, exasperated by the spate of gas explosions, particularly in Lagos, the Senate directed its Committee on Petroleum Resources (Downstream and Gas) to conduct an investigation into the remote and immediate causes of the explosion at the Ladipo Spare Parts Market, Mushin, Lagos. The Senate urged authorities to design a strategy to regulate the use of old gas cylinders, arguing that “the continued use of old cylinders can cause explosions especially in poorly controlled environments”.

    A committee was set up to investigate the incident and look at “what led to this,” Oke-Osanyintolu of the LASEMA had also said.

     

    NMDPRA

     Efforts to get the reaction of Nigerian Downstream and Midstream Petroleum Regulatory Authority (NMDPRA) were unsuccessful as calls put to Mr Elvis Duruji, one of its officials weren’t picked.

    The implementation of the Petroleum Industry Act (PIA) may have put spanners in the wheels of policing the industry.

    According to the Act, two regulatory agencies are to perform the duties of the defunct Department of Petroleum Resources (DPR), PPPRA and Petroleum Equalisation Fund (PEF). The new agencies are the Nigerian Upstream Regulatory Commission (NURC) and the NMDPRA.

    NMDPRA was created in August 2021 in line with the Petroleum Industry Act 2021 which provides legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry as well as development of host communities.

    Even before the creation of NMDPRA, policing the industry by the DPR was such a Herculean task as the agency was hampered in the discharge of its duties by manpower shortage. Under the old dispensation, the Lagos office of DPR had the mandate to police Ogun State too.  So it was hardly any surprise sharp practices continued to flourish in the downstream oil sector.

    A visit to the website of NMDPRA said it “is responsible for the regulation of the midstream and downstream petroleum operations in Nigeria which includes technical, operational, and commercial activities.

    Unfortunately, there was no information on subjects such as LPG Plant Licence; LPG Retailer (CAT D) Licence, Stock and Product Sufficiency Report, AQUILA Marketers’ Portal, Retail Outlet monitoring System (ROMS), LPG Depot License, Depot License, Downstream Remote Monitoring System (DRMS)/E-Station, Lube Oil Blending Plant (LOBP)m and Refining Plant License (RPL), which were all created.

    Others are Lube Storage and Sales License (LSSL), Petroleum Product Import and Export Permit system (IMPEX), Crude Oil Terminal Export Permit (COTEX), CNG Compression License, IMPEX Gas Permit, Gas Terminal Export Portal (GATEX), Network Code Electronic Licensing and Administrative System NCELAS. A click to any of these items led to nowhere.

    “Our site is undergoing a major upgrade,” offered elixir to the frustrations.

    Experts say to avert these gas tragedies, it is important to educate households on the need to gradually replace their metal gas cylinders with fibre cylinders, which is said to be fire- resistant. Also, the promise to phase out and replace the gas cylinders in circulation with more advanced ones should be hastened. According to findings, some households have been using the same cylinders for upwards of two decades. That is surely a disaster waiting to happen. Besides, the relevant authorities need to constantly sensitise operators of all gas retail outlets on how to operate their business with minimal risks to health, safety and environment (HSE).