Category: Special Report

  • Unlocking infrastructural devt with N11.56tr pension assets

    Unlocking infrastructural devt with N11.56tr pension assets

    Globally, infrastructure finance is an investment opportunity that pension fund managers with foresight hardly ignore. With N11.56 trillion assets in their coffers, Nigeria pension fund managers have great opportunity to invest in infrastructure for business and economic growth. For the Nigeria Sovereign Investment Organisation (NSIA), infrastructure financing  should be made attractive to enable pension fund managers, organizations and individuals invest and explore the huge business opportunities it presents, writes COLLINS NWEZE

     

    Identifying  sustainable investment and business opportunities has for decades  remained herculean task for fund managers.

    It takes a good fund manager to match the huge funds stacked in their vaults with investment opportunities spread across several sectors of the economy.

    From infrastructure funding, investment in education, manufacturing and even agriculture, there is always promising things to do with investors funds.

    But one that constantly stands out with huge opportunities for long-term returns is investment in infrastructure.

    Even Vice President, Prof. Yemi Osinbajo has spoken of the huge investment opportunity in infrastructure.

    He had declared that Nigeria would requires about $3 trillion to fund its infrastructure need in the next 30.

    Osinbajo spoke at a webinar that was organised by the Bureau for Public Enterprises (BPE) on improving the Nigerian infrastructure stock through Public-Private Partnership.

    He said: “Nigeria needs up to $3 trillion over the next 30 years to bridge the infrastructure gap. The federal government would have to spend the entire revised 2020 appropriation of N10.81 trillion continuously for the next 108 years or more on capital expenditure to meet that target.

    For him,  the traditional method of building infrastructure through budgetary allocations is inadequate and set to become harder because of increasingly limited fiscal space.

    One of the strong advocates for using pension funds for infrastructure financing is Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Organisation (NSIA), Uche Orji.

    The NSIA boss had clarified that infrastructure finance is an investment opportunity for pension fund managers to take part in.

    Orji, in a recent television interview, said all over the world, pension fund invest in infrastructure because such projects have long period of operation and is structured to provide a stable source of cash flow. It is something that should be interesting to pension fund managers.

    “So it is about looking at viable projects and structuring them in a manner that makes it investible for the pension fund managers to look at them and decide if they are to invest in them or not.

    “It is not abnormal but it is how it works all over the world. And the pension fund managers have said that they could invest 20 per cent of their funds, which means that there are investible projects for them.

    “But don’t forget that the pension fund does not belong to the government but to its contributors. It is peoples’ fund which their fund managers will take the decision to invest in it because their investment instruments includes infrastructure, fiscal instruments and equities etc.”

    Orji is not alone in believing that pension funds should be taken to finance infrastructure development in the country.

    He said that 2020 is ending well in terms of NSIA performance despite the COVID-19 pandemic. Orji said that on the domestic front, the COVID-19 adversely affected projects leading to delays in construction, commissioning and logistics. The Second Niger Bridge, Abuja-Kano roads and Lagos Ibadan expressway were all affected by the lockdown and restrictions on movements.

    He said: “We have come to realize that infrastructure deficits needs to be addressed.  We need to turn infrastructure  into investible assets. The Lagos-Ibadan Express Way is a phenomenal  asset that has revenue potential. Tolling, to concession rights, right of way monetization, media rights are opportunities to be explored by investors. But there is need to build the road properly, operate it properly and get people to pay for it. Same for Kano Abuja road,” he said.

    Obi said pension funds are to invest in such projects, NSIA will also invest, and individuals will invest.

    “For rail, we are not going to make money by charging fares, but by moving cargoes. We also have to turn the rail right of way into an economic corridor. These are things that will be structured and made investible, bonds will be issued around these projects and people will invest when the times are right for them. This is how how we intend to look at infrastructure, it is not just a social investment, but and economic investment,” he said.

    The Central Bank of Nigeria (CBN) is also making concerted efforts with other national institutions and the Federal Government to enhance the stock of infrastructure and boost national productivity.

    In collaboration with the Africa Finance Corporation, AFC, and NSIA, CBN floated an infrastructure development company known as Infraco Plc which is said to be world class.

    According to CBN Governor, Godwin Emefiele, the purpose of the company was to support the Federal Government in building transport required to move agriculture and other products to processors, raw materials to factories and finished goods to the markets.

    The Infraco Plc would be managed by an Independent Infrastructure Fund Manager, IIFM, that would mobilise local and foreign capital. The company would take off with a combined debt and equity capital of N15 trillion projected over five years.

    Orji said that Infraco is one of the major steps taken by Nigeria to make infrastructure attractive for investors.

    Also, recently, the President of the African Development Bank (AfDB), Dr. Akinwunmi Adesina, called on policymakers in Nigeria and other African countries to unlock over $1 trillion funds locked in pension and insurance assets to bridge the continent’s huge infrastructure deficit.

    Adesina said African countries must begin to move towards funding growth and development through available funds from pension and insurance.

    He added that African countries needed to reduce their debt burden to give more room for growth and development.

    He said: “African outstanding debt estimated at over $700 billion has been compounded by the rising share of commercial creditors who hold over $44 billion in Eurobond debt for 10 African countries while G20 initiative on debt service suspension has helped 22 African countries to access $5.2 billion in relief of payments.

    Other financial analysts agreed with him but also emphasised the need to guarantee the safety of the pension assets that would be taken to fund infrastructure project.

     

    The Director General of the Lagos Chamber of Commerce and Industry (LCCI), Muda Yusuf, considered the pension fund a suitable source of long termed finance for infrastructure finance that development finance institutions in Nigeria may not be able to supply.

    Yusuf said in other climes it is a usual practice to source long term finance from insurance firms’ life policy accounts.

    He said: “Pension fund is okay, but, and this is a very big but, it has to be subject to strict financial analysis so that whatever project it will be used fund will not be a threat to the contributors welfare.

    “So, it must be guaranteed by the government or some other institutions to ensure that nothing goes wrong. Because one of the major conditions in the management of the pension funds is the safety of the funds, which is even more important than the returns any investment from it will bring.

    For Professor of Economics, Akwa Ibom State University, Prof. Akpan Ekpo, pension funds could be invested in infrastructural projects.

    For him,  there must be a limit that could be invested so that pensioners’ interest will not be hurt. They cannot give out more than 10 per cent so that in the case there is a problem the pensioners will not suffer.

    “Pension money comes in trillions and 10 per cent can be sufficient at any point in time.

    Some countries that go beyond that already have buffer to protect the investments.

    “Most countries will put a limit so that pensioners will not suffer in case there is a problem with the investment. If you bring pension fund as a pool contribution from workers there must be a limit on how it will be invested in a manner that on retirement a contributor may share from the benefit depending on his/her PFA.

    “That is why it is important for the regulator to put a cap on the percentage of the pension contribution that will be invested on infrastructure. And I strongly advise that it will not be more than 10 per cent because of the risk that is involved.

     

    Pension assets investment 

     

    Acting Director-General of the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, confirmed that 65 per cent of the total pension assets were mainly invested in federal government’s securities as at September 30, 2020.

    Dahir-Umar gave the breakdown as follows: FGN Bonds got 57 per cent while seven per cent is invested in treasury bills, Sukuk Bonds received one per cent on pension fund investment while agency bonds and green bonds got less than one per cent.

    She added that the value of investments in FGN Bonds increased by N329.88 billion representing 5.23 per cent; FGN Sukuk by N9.16 billion representing 9.31 per cent), while investments in Treasury Bills decreased by N239.85 billion representing 23.51 per cent; Agency Bonds by N0.45 billion representing 4.07 per cent and Green Bonds by N1.55 representing 10.62 per cent billion.

    She also stated that some of the investment found their ways to the Nigerian Stock Exchange, whose All Share Index (NSE-ASI) rose by 9.61 per cent from 24,479.22 basis points (bps) as at June 30, 2020 to 26,831.76 bps as at September 30, 2020.

    Dahir-Umar explained that the value of the Treasury Bills declined due to maturities and reallocation to other asset classes, mainly FGN Bonds and money market securities.

    However, fears being entertained in certain quarters regarding the safety and security of the pension fund might be unnecessary due to an elaborate risk management that is built around the management of the fund in the guidelines for risk management framework for licensed pension operators in the country.

    The guideline acknowledged that a continuous process of effective risk management is critical to the safety and soundness of the operations of Pension Fund Administrators (PFAs) and custodians.

    Furthermore, Section 66 of the PRA 2004 required every PFA to establish risk management committee for the purpose of determining the risk profile of the investment under management with a view to providing advice on the management of associated risks.

    Consequently, licensed pension fund operators must develop, implement and maintain a sound and prudent risk management framework that comprises policies, procedures, and processes, appropriate to the nature, scale and complexity of their operations.

    According to PenCom, “these guidelines are therefore intended to serve as a guide to operators for developing an effective risk management framework for their operations.

     

  • Lonely world of rejected citizens   with learning challenges

    Lonely world of rejected citizens with learning challenges

    A fifty-year-old who cannot clean up during her period; children secluded in special homes or banished to villages because their parents thought they would never become useful adults: this is the world of most citizens with intellectual and development disabilities (IDD). Experts have urged the government to do more on inclusive education to secure their future, writes Deputy News Editor JOSEPH JIBUEZE

     

    Inclusive education specialist Mrs Nneamaka Mokwe-Ijiko received a call from a father whose daughter with a development disability needed help.

    But she was surprised to meet an adult who had spent her entire life in a “special home” and was used to a life of dependence.

    Mokwe-Ijiko
    Mokwe-Ijiko

    Mrs Mokwe-Ijiko said: “I got there expecting to see a six-year-old girl. Instead, I saw a 51-year-old woman who could not clean up herself during her monthly flow.

    “It took us one full year to teach her how to go from her house to her estate gate; how to clean herself up during menstruation; and how to bathe herself and wash her clothes.

    “During that period, she cried a lot because we were changing her routine.”

    According to Mrs Mokwe-Ijiko, there are many more Nigerians in the same situation: children who have been rejected or excluded by the society due to their disabilities.

    “The best way to help children with intellectual and development disabilities (IDD) become useful is to get to get them into a normal school setting,” she said.

     

    Understanding IDD, inclusive education

     

    According to the U.S. Centers for Disease Control (CDC), developmental disabilities are a group of conditions due to an impairment in physical, learning, language, or behaviour areas.

    These conditions begin during the developmental period, may impact day-to-day functioning, and usually last throughout a person’s lifetime.

    Some examples of more common developmental disabilities include attention-deficit/hyperactivity disorder (ADHD), autism spectrum disorders, cerebral palsy, fetal alcohol spectrum disorders, Fragile X Syndrome, Kernicterus, language and speech disorders, learning disorders, muscular dystrophy, tourette syndrome and vision impairment.

    However, most children with such disabilities, experts say, can still learn in regular schools and become productive adults.

    Renowned professor of special education, Florence Banku Obi, writes in the Journal of Education and Practice: “Inclusive education involves bringing together persons with disabilities and the non-disabled to study in the same classroom with adaptable facilities and equipment.

    “With this arrangement in place, the assistive technology becomes an unconditional requirement for children with special needs. It involves public and private programmes and laws.”

    According to the World Health Organisation (WHO), one billion people with disabilities in the world have the right to participate fully in their societies.

    The organisation said the government is obligated to ensure that such children do not suffer discrimination.

    “All children have the right to education. Clear policies on the inclusion of children with disabilities in education, accessible schools, appropriately trained teachers, specialised support for individual students, and the involvement of families and communities will help improve education for children with disabilities,” WHO said.

     

    The figures

     

    The National Population Commission (NPC) estimated in 2018 that no fewer than 19 million Nigerians live with disabilities.

    According to a report by EduCeleb.com, Nigeria has only 33,603 primary and secondary schools that can be described as inclusive even though they are not equipped to meet the needs of those with IDD.

    The report notes: “Describing schools as inclusive here is only because they have some population of special needs children.

    •Learning aids for early intervention

    “It does not mean that such schools have facilities that would take the peculiarities of special needs children into account

    “Based on our field experience reporting education across the country, we can attest that the ‘good’ classrooms in the Nigerian context do not necessarily take care of the needs of persons with disabilities either.”

    A diplomat, Prof. Tijjani Bande, in a presentation to a United Nations panel, said: “In Nigeria, more than 25 million people are estimated to be affected by one disability or another, out of which three million are critically disabled.

    “Extrapolation from this figure for children with special needs will result in an estimated population of 1.3 million, a very high number indeed.”

    According to the World Health Organisation (WHO) World Disability Report published in 2011, about 15 per cent of Nigeria’s population, or at least 25 million people, have a disability, a figure that may have risen nine years after the report.

     

    Scale of the problem

     

    Mrs Mokwe-Ijiko, who is the Programme Manager at Best Buddies Nigeria and President of Inclusive Education First Aid (IEFA) Africa, said some parents hide their children with special needs due to fear of stigmatisation.

    According to her, some worry that such children will be labelled “evil” by “our religious society”, especially in rural communities.

    She added: “There is little or no precise data to show the number of children and adults with IDD in the rural areas but there are many of them.

    “In the impoverished areas of Abule-Ado, during our IEFA project, we saw some children with Hydrocephalus and other challenges.

    “In Kano, we visited lots of schools and over a hundred parents who turned up had children with special needs.

    “When we visited Ekwulobia in Anambra State, we found parents who didn’t know how to help their children with IDD.

    “At Makoko, parents whispered to us to help them because some weren’t confident bringing their children out.”

    The situation, according to her, is not much better in the cities.

    She said: “Most of the parents are overwhelmed. Getting the right resources and therapy do not come cheap, with some families seeking spiritual help, miracles and alternative means to help their children.

    “Imagine what happens to parents who have children in rural areas. People with IDD in rural communities lack basic facilities for early intervention.”

     

    Abandoned kids

     

    Mrs Mokwe-Ijiko recalled an encounter with an ignorant mother who lost a child.

    “A parent confided in me during one of our projects that if she had known that there are ways she could help her child, she would not have left him in the village with her mother.

    “I told her it wasn’t too late and she responded sadly that it was. He had drowned! ‘How? Why? He had cerebral palsy. What was he doing in the river?’

    “I was blurting out so many questions at the same time but she explained that it was the belief in her mother’s village that her son was a snake and if left by the river, he would go back to where he came from.

    “I couldn’t imagine the agony of the little child before he drowned.

    “There are many children dumped, abandoned, neglected and killed in the rural areas.

    “That is why we expanded our approach from advocacy to teaching intervention skills.

    “If parents, grandparents and people in the rural areas are properly educated and shown exercises and interventions, children with IDD would not only survive but thrive,” she said.

    Asked if she was satisfied with policy implementation on inclusive education, Mrs Mokwe-Ijiko said without hesitation: “I am not satisfied. We can do more.”

    What exactly needs to be done? “Move children with IDD from segregated classes to inclusive classes,” she said.

    “Why can’t we give them opportunities to learn socially appropriate behaviours from their peers?

    “The goal isn’t just inclusion but Belonging – a system that doesn’t need advocacy anymore but recognises that we are all the same regardless of our challenges.

    “How can inclusion become the norm if the children still experience segregation in a school?”

    Mrs Mokwe-Ijiko said Nigeria also needs inclusive vocational hubs where adults with IDD can learn various vocations in an inclusive setting.

    “Imagine what they would learn from their peers.”

     

    Dealing with the challenges

     

    Mrs Mokwe-Ijiko urged the government to intervene to save the future of such children, especially in low-income communities.

    “We need more schools in the suburbs so that every child with IDD can attend an inclusive school, thereby reducing the number of out-of-school children with special needs,” she said.

    Caregivers also need a good education. She explains: “A lot of professionals need to move from just the book knowledge to real implementation.

    “Children with IDD will show you how to help them if only you can observe them and be involved in their daily lives.

    “Parents who are involved in their children’s lives see faster improvement.

    “You don’t have to be a special educator to help a child get inclusive education.

    “All you need is empathy, compassion, integrity and the willingness and determination to see a child with IDD excel; then you can learn from the experts and the child to provide that impact.

    “The more people in both the urban and rural areas who decide to truly help as volunteers, ambassadors and learning support assistant (LSA) the better our chances of providing effective inclusive education across the nation.”

    More importantly, inclusive education is critical for when parents of such children are no more, she noted.

    “I asked an audience of over 3,000 while facilitating during the Global Autism Convention in Bangalore India in 2011: ‘What will happen to your child with IDD when you die?’

    “The truth is that your child will learn with pain what you did not prepare them for, so be involved now while you’re alive.

    IEFA kit
    IEFA kit

    “That religious leader, family member and friend who is encouraging you to neglect or pray your child out of the special needs will not help your child when you are no more. Act now,” Mrs Mokwe-Ijiko advised.

    Inclusive education services provider, Eliakim Global Resources Limited, where Mrs Mokwe-Ijiko is the Chief Executive Officer, has integrated over 300 individuals with IDD.

    “We faced a lot of challenges from schools rejecting some of our children, so we had to home-school them first, teaching them the appropriate behaviours and basic independence before taking them back to school.

    “We started by teaching them basic functional life skills first, ranging from self-care to care of the environment, transition skills before soft and work skills.

    “We realised though that there are many children and adults with IDD who we have not reached and that is why we decided to start the Inclusive Education First Aid to reach the most vulnerable.

    “We designed the IEFA kit to help their families teach them various communication and behavioural skills.

    “We need more organisations and individuals with compassion to help us reach out to more out-of-school children with IDD in rural communities.

    “There are lots of children with IDD who become successful adults through inclusive education,” Mrs Mokwe-Ijiko said.

     

    A success story

     

    One of such success stories is Tobiloba Ajayi, a lawyer and inclusive education advocate.

    She was told during a university pre-admission interview that she may not survive the system because she had cerebral palsy.

    Years after graduating with a law degree, she was shocked that children with cerebral palsy continue to be excluded.

    Determined to help change the situation, she set up the Let Cerebral Palsy Kids Learn Foundation.

    She told The Nation: “I realised that the school system in Nigeria was actively excluding kids like me from the mainstream education system. That realisation was shocking.

    “It was scary to see that a condition that is the most common childhood disability in Nigeria was being made a reason to keep a child out of school, especially where the condition is not a cognitive impairment but primarily an orthopaedic impairment.

    “It was scary for me to see that these children, many like me, were not getting an opportunity to access education.

    “It was more pertinent that we fixed that system, that we gave children with cerebral palsy an opportunity to have a voice, an opportunity to learn among their typical peers, to be able to dream and envision their future and then have a voice in building it.

    “It was very important for me because I have seen the power of education in my life.

    “I started the non-profit in 2017 and so far, we have reached over 380 families directly and enabled about 80 children with cerebral palsy to access mainstream education.”

     

    More funding needed

     

    In the proposed 2021 federal budget, the education sector got one of the lowest allocations in a decade.

    Of the N13.08 trillion (about $36.3billion) budgeted for next year, N742.5 billion (5.6 per cent) was given to education.

    The Federal Ministry of Education got N65.3 billion; the Universal Basic Education, which supervises education at the primary and secondary levels, got N77.6 billion; N579. 7 billion was allotted for personnel cost, N35.4 billion for overhead cost and N127. 3 billion for capital expenditure.

    For context, California’s overall funding for all K–12 (from kindergarten to 12th grade) education programmes is $98.8 billion for 2020-2021, according to the state’s department of education.

    In 10 years, the highest Nigeria’s education sector got was 10.7 per cent in the 2015 budget.

    The effect is that due to poor funding of education in Nigeria, not much trickles down for inclusive education.

    “Go to any government public school that claims to do inclusion and you will be shocked,” said Opeoluwa Alonge, Executive Director of Best Buddies International, Nigeria, which consists of volunteers that create opportunities for people with IDD.

    To him, inclusive education is in a terrible state of neglect.

    He said: “Most government inclusive education centres or initiatives are rather seclusion centres. The framework of integration is omitted.

    “Any attempt or intervention in this space without integration into society is ignorance, ineptitude or share fraud, which are common.

    “Why educate without a vision of integration? Why empower a man or woman with knowledge, when no provision is made for the usefulness of the knowledge?”

    Alonge slammed “special homes” who do little to change the fortune of children with IDD.

    “Many of these so-called plans lack the requite sincerity to create a meaningful impact on the lives of people living with a disability.

    “A large chunk of them are business centres that require the absolute dependence of people living with a disability within their walls, all for continuous personal survival.

    “Others are what I usually call human zoos. They display fellow humans to others for sheer envelopes and peanuts so they can satisfy their false sense of ‘goodness’.

    “Thus, these centres need individuals with disabilities to be perpetually on display in their four walls to continue the business circle,” he said.

    Executive Director, Centre for Citizens with Disabilities, David Anyaele, also decried the poor funding of inclusive education.

    He said: “Inclusive education in Nigeria is poorly implemented. In particular, funding of inclusive education in Nigeria is very poor.

    “This is because states governments do not have value for the education of persons with disabilities.

    “As such, parents of children with disabilities struggle much more to send their wards to school due to minimal support from the state on inclusive education.”

    Anyaele said it was as if Nigeria was “founded” on the exclusion of persons with disabilities.

    This lacuna, he argued, has led to discriminatory practices by institutions of the state.

    Anyaele added: “Institutions initiate, plan, and implement policies on education with little or no consideration for the education of persons with disabilities.

    “Federal and state policies on the education of persons with disabilities in Nigeria are not implemented as it ought to be.

    “As such, the government applies a charity-based approach to the education of those with disabilities. What that means is that whatsoever they give you is what you take. It’s incredibly sad.”

    President, Association of Lawyers with Disabilities (ALDIN), Daniel Onwe, wondered whether there is even provision for inclusive education in the budgets.

    “Obviously, funding for inclusive education is not enough, if there is at all,” he said.

    He urged the newly-constituted National Commission for Persons with Disabilities (PwDs) to do more.

    “The Commission should do well not to confine its activities to Abuja, but should spread wide its tentacles across the country, including the rural areas,” he said.

     

    Wanted: inclusive education

     

    On January 23, 2018, President Muhammadu Buhari signed into law the Discrimination Against Persons with Disabilities (Prohibition) Act following nine years of relentless advocacy by disability rights groups and activists

    Ajayi is not satisfied with the implementation of the Disabilities Act. “No,” she said when asked if she was. “We would like to see more done. The Act gives the government five years to fully comply.

    “I will give them five years to see where they are in 2024, but for now, there is still a lot of ground to cover.”

    Anietie Ewang, Researcher, Africa Division at Human Rights Watch, believes the enactment of the Disabilities Act is only a first step in the fulfilment of Nigeria’s obligations under the United Nations Convention on the Rights of People with Disabilities (CRPD), which the country ratified in 2007.

    “Authorities should put effective measures in place for its (the Act’s) full implementation to ensure equal treatment and participation of people with disabilities across Nigeria,” she said.

    Prof Banku-Obi, while delivering the 92nd University of Calabar Inaugural Lecture titled: “From exclusion to zero rejects: a roadmap to inclusiveness,” said the future of children with IDD must be better secured.

    “The world over, children with disabilities live a life of marginalisation, labelling, discrimination, stigmatisation and exclusion.

    “They are seen and treated as unfit and the dregs of society.

    “Excluding children with disabilities from education mean that they have a near bleak future with very restrictive prospects for economic independence, thereby promoting a cycle of intergenerational poverty among millions of these children,” she said.

    The Lagos State Government says it has earmarked N500 million in its 2021 budget as disability fund.

    Addressing persons living with disabilities, Governor Babajide Sanwo-Olu said: “In the budget for next year that the House has just approved, we have earmarked N500 million for the disability fund.

    “We will sit with the Ministry of Youth and Social Development in the new year and we will agree with you on what areas we should apply the funds to.”

    Stakeholders will hope that part of the fund will go to inclusive education and that more states will follow suit.

  • Searching for water to prevent COVID-19

    Searching for water to prevent COVID-19

    Handwashing is one of the key ways of preventing the spread of COVID-19. This, however, is a challenge as a result of the scarcity of water in many parts of Nigeria. MOSES EMORINKEN examines this challenge

     

    AS of December 28, 2020, the World Health Organisation’s (WHO’s) dashboard showed that there have been 79,673,754 confirmed cases of COVID-19, including 1,761,381 deaths globally.

    The numbers, though staggering, remains the highest tally of global deaths ever recorded in the history of pandemics. Countries have suffered fatal blows in their economies, and most especially in their healthcare delivery systems.

    However, hope seems to have been rekindled with some big pharmaceutical companies like Pfizer and Moderna, having developed vaccines that are said to have efficacies up to 95 per cent to inoculate people from the deadly virus. Countries have now begun the frantic race to secure their space in the procurement chain of these vaccines.

    While those dramas unfold, the WHO, Africa Centres for Disease Control and Prevention (ACDC), Nigeria Centre for Disease Control (NCDC), and other relevant stakeholders have continued to re-echo that prevention remains the surest way to completely defeat the virus.

    Part of the non-pharmaceutical measures to prevent transmission of the covid-19 is regular handwashing with flowing water and soap. Ordinarily, this should not be a problem for Nigerians, given that the country is so blessed with water bodies from which to draw from.

    Also, in this new normal, Nigerians have now been educated on the benefits of handwashing. While travelling across cities, towns and even villages in the Federal Capital Territory (FCT), The Nation investigation showed that there seems to be some decent level of awareness regarding handwashing and hygiene. However, the big question remains – where is the water?

    The Federal Government’s advocacy on handwashing across the country is commendable. However, without proper provision of clean water and access to basic water facilities, will be tantamount to ‘pouring water in a basket,’ – null and void! This is the more worrying in the context of the covid-19 pandemic, with handwashing being a critical infection prevention practice.

    At least 167 million homes in Nigeria do not have access to handwashing facilities, and only 26.5 per cent of the population use improved drinking water sources and sanitation facilities if figures from the United Nations Children’s Fund (UNICEF) are to go by.

    Asides covid-19, a report by UNICEF states: “Poor access to improved water and sanitation in Nigeria remains a major contributing factor to high morbidity and mortality rates among children under five. The use of contaminated drinking water and poor sanitary conditions result in increased vulnerability to water-borne diseases, including diarrhoea which leads to deaths of more than 70,000 children annually before their fifth birthday.

    “73 per cent of the diarrhoeal and enteric disease burden is associated with poor access to adequate water, sanitation and hygiene (WASH), and is disproportionately borne by poorer children.”

    To corroborate the above, a report from WaterAid, an international non-governmental organisation, focused on water, sanitation and hygiene, stated that: “The importance of access to hygiene and clean water has been worryingly overlooked by world leaders in the current crisis. The Federal Government has been quick to promote hand hygiene and handwashing, but without acknowledging that this is shockingly still impossible for the 150 million people in Nigeria who lack handwashing facilities with soap, the 60 million people who lack access to basic water supply and for thousands of frontline health workers and their patients in clinics and hospitals.

    “95 per cent of all healthcare centres in Nigeria are at risk of becoming epicentres of the disease because of lack of access to combined water, sanitation and hygiene (WASH) services, putting the lives of doctors, nurses, midwives and patients at risk.”

    In a chat with The Nation, the Chairman, Medical Sub-Committee of the covid-19 Ministerial Expert Advisory Committee in Abuja, Dr. Ejike Orji, said: “I belong to the global handwashing community and sanitation for all. Without covid-19, 78 per cent of diarrhoeal diseases will be prevented if there is adequate and clean water that people can wash their hands with and drink. Handwashing has reduced diarrhoea diseases in the communities because now people are maintaining some level of hand hygiene. In my community, when people come, they bring a bowl of water to wash their hands but I said to them that once you do that you are carrying out the germs from your hands and putting them into that bowl and taking it up again. That is why we are now preaching that people should take a bowl and make a tap.

    “Coming back to whether we have water, do you know that it is now a global concern? It is a big global concern such that in a place like Australia they are already running short of water. In fact, in Australia, water is now marketed on the stock market. A country like South Africa rations water in some places like Cape Town. It is becoming a global phenomenon and the reason is that with the global climate change that is happening and increasing population, the search for water and the use of water has increased.

    “And because of the increase of the ambient temperatures in the world, water is evaporating every minute from the soil even though it is recycled. Most of it goes into the ocean and the ocean is very salty. For you to desalinate the ocean and use the water, the cost input is high.

    “People do not have enough to drink, and if they don’t have enough to drink, how can they even wash their hands? There should be a strategic attempt also to make sure that you get people to wash their hands, and that there is water for them to use to wash their hands. For me as a development expert, it is not as if we do not have policies. Some policies are not properly aligned and even when we have the policies, they are not properly implemented.

    “For Nigeria, I am even seeing a catastrophe coming in the future because instead of using public works water, we are using boreholes everywhere. Take for instance, in Gwarimpa, almost every house has a borehole, and everybody is feeding from the same artesian water basin. At a point, the water will finish and it will collapse. If you go to some parts of America – I think California, there is something they call sinkholes. Your house might be in one place and the next minute it sinks into the ground. That I can tell you that in the next 20 to 30 years, Nigeria will be having such problems until we address the proper use of public works water. I fear that in years to come the artesian water basin will dry up because the rate of use of the water will be more than the rate of replenishing of the water.

    “Meanwhile, there are proper dams that have been done and all we need to do is to regulate water to be able to get to every place. For Nigeria, we have everything in abundance but we need to manage it because of our population and we are in a population crisis. If we continue the way we are going, we will get to a point where we will also have a water crisis. For now, they can still use boreholes but the permanent thing will be to have a proper public works water department that will reticulate water.”

    We don’t have water, and buying water is now expensive, communities cry out

    Now that community members have been sensitized on the sundry benefits of handwashing, especially during the covid-19 pandemic, people are crying out that the public waterworks do not function and they have resorted to digging boreholes for themselves or buying water from local suppliers. Either way, there is a catastrophic cost from getting water.

    Speaking with The Nation, a resident of Nyanya, Abuja, Mr. Moses Nwachukwu, explained that the culture of handwashing is gradually dying because people cannot readily access water facilities.

    “Handwashing is a practice we were not used to before the advent of covid-19. But with covid-19, I think that consciousness was beginning to somehow gain ground, particularly as offices were forced to enforce it on their staff. Some of us imported that same practice into our domestic homes. But again, over time, with the relaxation of the lockdown, I think that culture is again dying. I think handwashing is a good practice to maintain and imbibe.

    “Where I live, there is the challenge of water supply because nothing flows into your tap. Even when we get from the water board, it is usually once in a long while. By implication, we usually need to buy water continuously. Assuming water flows and the Water Board gives water, practising handwashing under flowing water would be easier.

    “There are also the economic implications of buying water depending on the size of your household. The truth is that incomes are not increasing and the pandemic has rather eroded or reduced people’s incomes. People now have to buy water from local suppliers who use trucks with kegs of water, popularly called ‘meruwa’. A truck can cost N350. By the end of the week you’re spending close to N2,000 or more in one week just for water,” he said.

    Mrs. Adache, a Civil Servant who lives in Kuje, who spoke with The Nation, said: “Truly, covid-19 has made people pay more attention to washing their hands and in taking care of their health. People know that they have to wash their hands thoroughly before anything. The painful part is that the water is usually not available.

    “But for me, I draw water from the well but not from the taps because they are not available. The water we get from the well is not hygienic but since it is the only available source, then, that is what we have to use.”

    The Madaki of Karu, Alh. Ismail Musa Karu, in an interview with The Nation, said: “As a community leader, I keep enlightening my people about the reality of covid-19, and about the need to wash their hands with soap and water and wear their face masks properly because of their safety. Even in the mosques, no one can enter without wearing face masks and you know that you cannot pray without ablution which includes washing your hands.

    “The pumps from the water board does not rush every day, and that is the reason why I want to advise the government to help us to make boreholes. Boreholes can be made 2 metres away in the community. If the government does that, the people are going to be happy. This is important because if you rely on the pumps, we can stay a whole week without getting water. In my house I do not use the water board; I did my borehole and also made it accessible for people in my community to fetch for free. The House of Representatives member in the FCT, Zaphaniah Jisalo, has constructed twelve (12) boreholes around the Nyanya, Karu, Jikwoyi, Kpegi axis. I will encourage Chairmen and House of Representative members to do the same.”

    Failed promises, dry taps and pipes, and way forward

    In a bid to improve the access to water and water facilities, and revitalize the deplorable situation of the Water Supply, Sanitation, and Hygiene (WASH) sector, the Federal Government in 2018 declared a state of emergency.

    Two years down the line, the people’s pipes remain dry, their taps broken and hopes dashed from broken promises. This is evident by the 2020 report from USAID that revealed that only nearly 30 per cent of Nigerians have access to safe drinking water and adequate sanitation. This can potentially affect Nigeria’s aim of meeting the United Nation’s Sustainable Development Goals (SDGs) targets (6.1 and 6.2) for WASH by 2030.

    To solve this, the Federal Government is pushing very hard for the passing of the National Water Resources Bill.

    The controversial Bill which started in 2008 and predates the Buhari Administration, has been a source of debates. Some people believe it is ill-timed and will add to the hardship the common man is already facing during the covid-19 pandemic.

    However, the Minister of Information, Alh. Lai Muhammed, during a briefing, explained that the Bill, when it becomes an Act, will not only bring about the professional and efficient management of all surface and groundwater for the use of the people but will also amalgamate extant Water Resources Laws – the Water Resources Act, Cap W2 LFN 2004; the River Basin Development Authority Act, Cap R9 LFN 2004; the Nigeria Hydrological Services Agency (Establishment) Act, Cap N1100A, LFN 2004; and the National Water Resources Institute Act, Cap N83 LFN 2004.

    During an interview with OSRC TV, the Managing Director of Benin Owena River Basin Development Authority, Saliu Ahmed explained that although Nigeria cannot be categorised as a water-scarce country because of its clement weather and guaranteed rainfall, but must learn to manage its water sources.

    “Some countries may not have abundant water like Nigeria but they have learnt to manage their situation better. Israel, for instance, doesn’t have much of freshwater but they have managed to be able to undertake what is called desalination, that is, taking out the salt from the water and converting it to freshwater for use for their population. They have also learnt to be able to manage their wastewater to the point that no drop of water, even from your urine, is unaccounted for because it is converted and put to beneficial use as portable water in the homes or for irrigation.

    “For us in Nigeria, whereas we are not water-scarce, we need to manage our water resources much better. Much of the rain that falls in our country still run off as waste. Whereas it could be collected and managed for various uses industrial, domestic, irrigation etc.

    “We have to understand that water is not a social good and we have to pay for it. While paying for it, we must also demand good service. This is part of why the Minister of Water Resources, Engr. Suleiman Hussein Adamu has been driving what is now known nationwide as the Water Resources Bill. The Bill will ensure that water access for everybody is guaranteed. But for it to be guaranteed, it also means that government at all levels must learn to be responsible for its citizens. Where the government cannot, the private sector has to be involved to come and invest with a guarantee of good returns on their investment.

    “Some people say they cannot pay for public water supply which is portable but is spending so much money to drill boreholes, operate generators that pump the water out from the boreholes, build elevated tanks, and every home is practically having this.

    “But the public water supply is taking its source from a large body of raw water, treated and then reticulated to everyone so that in the comfort of your homes, you open your tap and you get what you want. But again, you must be conscious of the fact that because water is not a social good, if the supply to your house is metered, then you know that you cannot just open it up and it is flowing away like we do sometimes. Wasting the water means that we are depriving somebody else of that supply. Quite frankly, that is the future of potable water supply in our country.”

    Governments at all levels, therefore, have a responsibility to prioritize the provision of safe and flowing water to all Nigerian citizen, especially because it plays a critical role in handwashing, which remains key to halting the transmission of the covid-19 virus.

  • Putting a price on pollution

    Putting a price on pollution

    Climate change needs urgent action by all countries, and by all means. Rising concerns about climate change have led to the introduction of carbon policies around the globe. Putting a price on carbon is widely seen as the most cost-effective and flexible way to achieve emission reduction. Consequently, African governments are being pursued to imposing carbon tax imposed to reduce greenhouse gas emissions. South Africa has kick-started it. How will it impact on Nigeria’s agriculture if the government eventually introduces it to improve environmental sustainability? DANIEL ESSIET shares stakeholders’ concerns

     

    As the increasing restive public around the world are raising the pressure on governments to act more decisively to slow emissions amid evidence that catastrophic climate change is becoming an ever more real prospect, mitigation efforts have been gaining the most attention with measures designed to achieve net-zero carbon emissions by 2050.

    Governments want companies to be environmentally friendly and levy a fee on carbon dioxide (CO2) emissions, while international businesses are seeking partners with clean, dependable and energy-efficient production.

    For instance, the Green Economy Initiative of the United Nations Environment Programme (UNEP) has been working with developing and least developed countries to assist them in the formulation and implementation of policy reforms and investments that catalyse transitions to a green economy.

    This is to help put businesses on solid footing to meet the demands of a changing global economy, and to become more resilient, inclusive and sustainable – especially important as climate change challenges continue to grow.

    UNEP is currently running the Green Economy and Trade Opportunities Project (GE-TOP) to identify policies and measures that may act as facilitators and overcome hindrances to seizing trade opportunities arising from the transition to a green economy. The goal is to achieve minimum emission-reduction levels needed to keep the global temperature increase below 2°C.

    Other than this, experts have been crusading for governments to put a price on carbon to send a signal to companies and consumers to shift their production and consumption patterns.

    This has, however, proven an important source of government revenue.

    In 2019, alone governments globally raised $45 billion through carbon pricing.

    Namely, Mexico, Chile and Colombia, are using carbon pricing as part of a broader strategy to decarbonise their economies.

    The potential to create millions of jobs on the way towards a net-zero carbon economy is perhaps one of the most appealing reasons to focus on a green recovery.

    Analysts said carbon emissions reduction represents a major opportunity for countries to boost growth, reduce poverty, and broaden economic inclusion.

    Globally, there is consensus that Africa must join the rest of the world to facilitate compatible emission pathways, increase investment and innovation in clean technology, promote the achievement of the Sustainable Development.

    The United States-based Brookings Institute’s Research from the New Climate Economy report showed that bold climate action could deliver at least $26 trillion in global economic benefits between now and 2030.

     

    The case for carbon taxation

    Given the already-increasing tax rates, experts say the cost of carbon emissions will motivate urgent action among companies to reduce their emissions.

    According to the World Bank, there is a growing consensus that carbon pricing—charging for the carbon content of fossil fuels or their emissions—is the single most effective mitigation instrument.

    The World Bank also added that there are a total of 88 countries who intend to use a carbon tax to meet their Paris Agreement goals. This represents 56 per cent of global emissions.

    In particular, South Africa is the first country on the African continent according to Greenpeace, that has established a carbon tax. Companies which emit less pay less tax.

    Supporting this, Deloitte International South Africa in its report said placing a price on emissions would encourage cleaner practices. It noted that climate change was one of the most pressing issues of the time and as the 14th largest greenhouse gas emitter in the world, South Africa has an important role to play in trying to resolve it.

    While farming businesses would be exempt from the taxation of carbon emissions for the next five years, the government said farmers and associated producing in excess of 100 000t of GHG were liable for taxation. Grain South Africa had already implemented projects to determine the carbon footprint of grain production in South Africa. In Nigeria, a lot of advocates have emerged that are canvassing decarbonising or getting to net-zero carbon emission. They are calling on Nigerians to take advantage of renewable electricity, considered cheaper than fossil fuel to decarbonise electricity generation.

    Thereby, the Nigeria Country Director, Global Campaign group Power For All, Ifeoma Malo is campaigning for a shift to renewables as an efficient way to bring power to rural communities and help clean up a country with some of the world’s worst urban pollution rates. She believes it will contribute greatly to reducing the carbon footprint of growing energy demand by the urban population.

    Analysts said Nigeria was the world’s 17th biggest emitter of greenhouse gases in 2015, the second-highest in Africa after South Africa. Internationally, agriculture and livestock are said to be responsible for much of the greenhouse gas emissions experienced in some economies.

    A reduction in emissions from these activities, therefore, it is believed would help to meet climate change mitigation objectives.

    Scientists said carbon taxes are also effective at reducing the greenhouse gas emissions created by the destruction of tropical rainforests, making them even more critical to addressing the climate crisis.

    So far, Nigeria’s agriculture was responsible for 13 per cent of the country’s total emissions in 2014, largely as a result of the rearing of animals including cattle, sheep and goats.

    In its climate pledge, however, the government said it was determined to offset 74m tonnes of greenhouse gases every year by 2030.

    The Agriculture Promotion Policy for 2016-2020 reiterated the government commitment to promote climate-smart agriculture.

    Therefore, among industry players, the intersection of agriculture and environmental impact has been a topic of growing interest.

    Stakeholders have brought up farming in the context of climate during the recent debates.

    Sadly, agriculture in Nigeria has not been structured in a manner that makes it adapt to a variety of environmental conditions.

    As the climate crisis intensifies, Nassarawa based rice farmer, Rotimi Williams said farmers were vulnerable as it directly targets their livelihood.

    As with many policy issues surrounding climate change, Williams, would not want Nigeria to toe the line of South Africa to introduce a carbon tax as it will increase the burdens on farmers.

    He said farmers do not need any form of a carbon tax because they have been adhering to stricter conditions on carbon emissions in the production chain.

    Generally, experts believe this is a value to society of reducing GHG emissions.

    The question from an economic standpoint is whether the benefits of GHG emissions reduction offset the negative impacts on farmer’s welfare resulting from a carbon tax.

    One-off them is the Chief Executive, X-Ray Farms Consulting, African Farmer Afioluwa Mogaji, a believer in farming that is productive, sustainable and climate-friendly.

    After years of land degradation, he has seen many farmers struggled to grow enough food for their families. Some of them are now using a wide range of methods to increase the organic matter in soils.

    In the long term, he noted that a lot has to be done to improve the soil’s water absorption, nutrient supply and biodiversity, and help prevent erosion.

    According to him, better soils raise farm yields, improving food security and making agriculture more resilient to climate change.

    However, Mogaji told The Nation that farmers were more likely to make big efforts to cut carbon if there is a system in place to help them improve farm resiliency against severe weather events and increasing farm profitability.

    He said farmers need all the encouragement focus on “smart” farming and the latest technology, as agriculture is a key future growth engine to create jobs and improve food security.

    He believes there is a link between economic empowerment and sustainable and environmentally friendly agriculture. Mogaji wants the government to work with the agric sector to measure and reduce its energy costs and find ways to adapt to climate change. Increased temperatures are having a marked effect on productivity, and rising costs for producers in terms of more spraying and labour.

    At the global level, however, the Consultative Group for International Agricultural Research( CGIAR) research programme on Climate Change, Agriculture and Food Security (CCAFS) has warned that global carbon tax would increase undernourished by 80 to 300 million people.

    Scientists from the International Institute for Applied Systems Analysis (IIASA) and the CGIAR Research Programme on Climate Change, Agriculture and Food Security (CCAFS) explored how a global carbon tax together with land-based climate change mitigation options would affect the cost of major food commodities.

    To do this, they used established climate stabilisation scenarios for achieving 2 °C with the Global Biosphere Management Model (GLOBIOM), a partial equilibrium model that considers both biophysical and economic changes.

    Research showed that a $10 tax/tonne of carbon dioxide equivalent would achieve some mitigation cost-efficiently, and thus not raise food prices significantly.

    However, the study revealed that a higher carbon tax such as $100/tonne – which would be necessary if the global community employed carbon taxes as a principle mitigation tool – would cause steeper food price increases, in large part because of the wide extent of inefficient food production practices and the cost of shifting from these practices to more efficient production.

    It said: “Higher food prices would lead to more food insecurity and undernourishment in some countries. As long as current food production remains at low levels of productivity, the higher the carbon tax, the higher the food prices, and the more people who would experience food insecurity.”

    Researchers estimated that a uniform carbon tax could increase the number of undernourished people by 80 to 300 million in 2050.

    They found that the carbon tax would raise the price of most food commodities, but most significantly in emission-intensive beef, rice, and milk.

    While food prices would increase across the globe, the study revealed that prices would increase the most in Oceania, Southeast Asia, Sub-Saharan Africa, and South Asia due to emission-intensive agricultural production, emission-intensive diets, or both.

     

    Challenges

    Given the increased political interest in reducing the negative environmental impacts of agriculture, including by mitigating greenhouse gas emissions, various tax instruments are emerging to improve environmental sustainability. One of them is the Carbon Tax. This is because energy use emissions have various negative externalities, including environmental damage, negative health impacts, and climate change effects. As a consequence, countries are instituting taxes on energy use as a means of charging for these damages, with the additional effects of reducing emissions. Nigeria has the potential to cut a reasonable per cent of its annual greenhouse gas (GHG) emissions arising from agriculture and livestock. Analysts believe the potential reduction could be achieved cost-effectively by efficiently utilising fertiliser, adopting zero-tillage and managing water in cultivation. The implementation of these measures will require the collaboration of the government, private sector, and farmers.

    Climate change is threatening Nigeria’s food security with frequent dry spells, heat waves and erratic rainfall, adding to farmers’ woes.

    As Nigeria population continues to surge, experts said a lot must be done to double food production by 2050. Thus scientists and policymakers are faced with the challenge of meeting the growing demand for food whilst also reining in on GHG emissions.

  • Investors, depositors battle inflation with high yield assets

    Investors, depositors battle inflation with high yield assets

    The Central Bank of Nigeria (CBN) has for six years missed its six to nine per cent single digit inflation rate target. At 14.89 per cent in November, which is 32-month high, inflation upswing has  not only eroded savings account depositors’ interest income but triggered new wave of investments in alternative assets. Mutual Funds, Eurobonds and commodities markets are new choices for investors and savings account depositors seeking higher yields to protect their funds from inflation-induced capital erosion. Foreign investors are also buoyed by higher returns in Nigeria which remains an incentive for sustained capital inflows.  With Nigerian Treasury Bills (T-bills) yield now below one per cent per annum,  savvy fund managers, savers and investors need to work smarter to beat rising inflation with higher good returns on investments, writes COLLINS NWEZE

     

    Michael Mathew-Adams, a 45 year old Lagos-based civil servant has one passion that everyone around him identifies- saving his money in banks.

    Mathew-Adams tells everyone that savings deposit gives him the leeway to withdraw his funds at any time, earn interest with minimal bank charges. He not only has savings deposits in three commercial banks, but has opened one each for his wife, and four children.

    “I have come to realise that savings is the best way to preserve wealth. I am also encouraging my family members to imbibe the savings culture by saving for the rainy day,” he said.

    But all that changed after investment analysts from Afrinvest West Africa Limited explained to Mathew- Adams what he never imagined. They told him that whatever savings he  has in the last one year is being gradually eaten up by inflation.

    In an economy where banks pay savers 1.25 per cent per annum interest rate on savings deposit as against 14.89 per cent  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 represents 10 per cent of the 12.5 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, Mathew-Adams did not just move to Mutual Funds, where he earns over 8.5 per cent returns per annum, he has 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 Mathew-Adams 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 Federal Government of Nigeria (FGN) Savings Bonds (FGNSB).

    The attraction is 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 noted to investors, Stanbic IBTC Asset Management explained what rising inflation does to people’s income and savings.

    From L-R: •Emefiele, •Czartoryski, •Unegbu, •Yusuf, •Nzewi, •Finance Minister Mrs. Zainab Ahmed
    From L-R: •Emefiele, •Czartoryski, •Unegbu, •Yusuf, •Nzewi, •Finance Minister Mrs. Zainab Ahmed

    It said: “Nigeria’s inflation was at 14.89 per cent in November 2020, a 32-month high. The major trigger to the rise in inflation has been the closure of Nigerian land borders since August 2019, which affected the movement of goods. This was aggravated by 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 14.89 per cent between November 2019 and November 2020. That means a bag of onions that cost N100,000 in November 2019 increased by N14,890 in November 2020 to cost N114,890.

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

    As inflation rises, Mathew-Adams, 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 because their savings are gradually losing value.

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

    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 year 2020.

    “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 stabilization,” 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 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 growing proportion of their savings with Mutual Funds instead of banks despite the risk involved.

    Findings showed that Nigeria’s fund management industry is undergoing remarkable growth. Total assets under management (AUM) over the four years 2015 to 2019 more than doubled in inflation-adjusted terms and were up 305 per cent in nominal terms.

    The compound annual growth rate (CAGR) in total AUM from 2015 to 2019 was 22 per cent in inflation-adjusted terms and 42 per cent in nominal terms. It would be difficult to find a Nigerian industry that matches this.

    Aside 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.

    The Treasury Bill (T-Bill) auctions in October were oversubscribed by an average of 513 per cent and peaked at N821 billion on 28 November  2020. The 91-days, 180-days and 364 days T-Bills closed around 0.34 per cent per annum, 0.50 per cent per annum and 0.98 per cent per annum respectively at the last Primary Market Auction (PMA). Similarly, yields at the FGN Bond auction for November  2020 closed at 4.97 per cent per annum  and six per cent per annum for the benchmark 15-Year and 25-Year FGN Bonds respectively.

    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.

    The 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). Bonds are long-term debt obligations issued by private or public corporations to fund key projects.

    During the period between 2010 and 2019 the average Nigerian Treasury Bill yield was 14.7 per cent and this was, on average, 2.6 percentage points above the rate of inflation.  Savers and investors had it easy during this period; essentially all they had to do was to invest in Treasury Bills in order to beat inflation.

    Today, 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.

     

    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 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.

    Managing Director, Afrinvest Asset Management Limited, 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 dividend 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, 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.

     

    Stakeholders speak

     

    Managing Director, CardinalStone Partners Limited, 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. These set of investors are 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 said.

    According to Nzewi, authorities should embrace more pro-market paths to encourage foreigners to take on more naira risks. There should also 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.

    Breakdown of investment positions showed that 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 investors 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 that fixed income funds.

    “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-Bill 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 Treasury 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 the 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 investors 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 which 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 into year 2021, 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.

     

  • Nigerian youths are the big carriers of COVID-19 but the old are dying more

    Nigerian youths are the big carriers of COVID-19 but the old are dying more

    COVID-19 statistics show that youths are the big carriers of the virus in Nigeria, but the elderly are the ones being killed by it, writes GABRIEL OGUNJOBI

     Abiodun Kolawole, a student of Moshood Abiola Polytechnic (MAPOLY) is perhaps one of the rarest residents of Abeokuta, Ogun State who is yet to be gripped by the fear of the novel COVID-19 up to date. He would need more than the constant, untethered the rise in the number of COVID-19 cases in Nigeria as released by Nigeria Centre for Disease Control, NCDC to believe the realness of the killer virus let alone admit Nigeria has transited into the second wave may soon hit.

    “I have not seen anyone who had that virus around me nor has anyone died of it – God forbid! – except the ones the government tells us.”

    In contribution to that doubt, his friend, Damilare Obatola, both seated inside a POS outlet (for money transaction) at Computer Village of Oke Elewo, the commercial nerve of Ogun State capital, made a more befuddling comment.

    ‘You may want to talk about the death of Kashamu… I don’t believe he died of covid. I have seen him before and I know the disease wouldn’t have killed him’, he said.

    Contrary to Damilare’s perception, former Senator Buruji Kashamu representing Ogun-East senatorial district, died on August 8 of COVID-19 complications at the First Cardiology Hospital in Lagos.

    His death was announced by his former colleague in the Senate Ben Murray-Bruce.

    Already, 33 people had died of the virus in Ogun state as at the dusk of December 6, what the state’s Director of Public Health and Incident Manager, Dr. Festus Soyinka, described as ‘mild effects of the virus in Ogun state.’

    Added to this figure, a total of 35 people tested positive to Coronavirus across the state by the close of business on December 6 that these young Nigerians doubted the existence of the virus. The 35 people are the cumulative cases out of the  2,258 confirmed cases by the end of the 49th week.

    At the end of week 50 between December 7 and December 12, this newspaper found out that the cases in Ogun State had risen to 2328.

    The NCDC corroborated in its week 50 spreadsheet report for the COVID-19 cases that Nigeria has experienced a significant increase up to 47 per cent in the number of confirmed COVID-19 cases compared to week 49. Nigeria had a total of 61,992 at the end of week 49 but skyrocketed to 66,090 at the end of week 50.

    As if this never mattered to the residents, no single person at the computer village had face masks worn. Yet, all was, in fact, raucous, and bubbling up till Lafenwa market some few kilometres ahead with no attention to public health measures.

    Between half-knowledge and ignorance

    The manager of the small-scale business, Adewale Kolajo, cautioned that his boys’ disbelief should not be blamed on ignorance. According to him, their doubt found its strength in distrust in the  Nigerian government over the ill-management of the virus from inception.

    ‘I am educated and I have read about the workings of this virus. So, I know it is real’, he would stress.

    As convincing as his response was at the first presentation, the impression he later gave drew a line between the extent of his knowledge about the pandemic and unchecked myth.

    ‘However, the only reason the countries here are not recording massive numbers is because of our relatively hot temperature. Even before or without treatment, coronavirus will not survive above 30’, he said confidently.

    That belief is one of the fast-travelling rumours which the World Health Organization, WHO had demystified.

    Often said that ‘coronavirus is not heat-resistant and will be killed in a temperature of 26-27 degrees’, WHO established that evidence has so far shown that COVID-19 virus can be transmitted in all areas, including areas with hot and humid weather.

    In MAPOLY, Cinema, the culture is gone; remnant left is protocol

    Mapoly
    (Photo caption: Moshood Abiola Polytechnic entrance)

    This reporter headed to Adeola’s school to establish if he was only one of the few who take prevention with levity.

    Mapoly, like most public institutions, adhered to the guidelines upon reopening of activities.  In front of the mechanical engineering department – near the polytechnic’s entrance gate – a hand-washing basin and soaps can be visibly seen but people only stroll past, defeating the purpose of placing it there. Several corners within the campus including the Administrative structures with the Rector’s office, non-academic staff offices, stickers and banners informing about the importance of face masks are in the public glare.

    But, the zeal towards enforcement of these guidelines has dwindled.

    On Tuesday, December 8, which was the second day of the resumption for the second semester of an academic session, the students shook hands, hugged each other, and also troop into public transports without minding the possibility of the virus spreading.

    “Am I doing anything wrong here? It seems I am the only one wearing face masks”, this reporter said, intentionally starting a conversation inside a bus full-loaded of passengers.

    It was the driver who first answered.

    “We all know it’s just the protocol that remains.”

    One of two young women, who later alighted at the market junction within the campus, joined to say: “I also have mine in the bag. I still use it when I know I should”, as if being inside a fully-loaded bus isn’t one of those times.

    A similar attitude had been observed at the cinemas inside Nigeria’s former president, Olusegun Obasanjo Presidential Library, OOPL, in Abeokuta, on Saturday evening. At the entrance of the cinema, a  lady attendant would allow customers to donning your masks as they reconfirmed people’s temperature but upon entry, removal of the mask was “official” to many.

    On that particular night which the screening movie at 9 pm was ‘Citation’, even the attendant was visibly not wearing the mask.

    No Regards for COVID-19 protocols at Ibadan football centre

    Honorable Akin Alabi, representing Oyo state’s Egbeda/Ona Ara at the House of Representatives is a football enthusiast. One of his excitements – and his political magic wand at getting intimate with his constituents – is to relish both local matches and foreign matches with the youth.

    On June 20, he tweeted how intense he had missed doing so in spite of COVID-19 lockdown on social gathering. Assuming the lawmaker chose to return to do so anytime from now, he may not escape contracting the virus except he took extra precautions.

    Akin Alabi viewing centre
    (Photo caption: Akin Alabi has missed enjoying football with his people but even that may be risky for him now)

    As Arsenal, one of North London’s giant football teams, slugged it out with Tottenham Hotspur on Sunday, December 6, this newspaper was at the lawmaker’s favourite viewing centres in Ibadan to observe the level of compliance in a place largely dominated by youths.

    At the centre at stone-throw from Alabi’s family house in a Bokusoro Street of Gbagi, none of the viewers had masks with them, save one who had it just below the jaw. The immensely-full room also gave no consideration for the two-metre social distancing nor made provision for hand washing.

    So, for every goal attempt made by Tottenham against the soon-to-be relegated Arsenal, the prolonged shouts and chit-chats among viewers made the spread of COVID-19 seamless, if one of them had been an asymptomatic carrier.

    A peek into data revealed low testing capacity in Oyo state compared to its massive population. Up till week 50, the state had only tested 28,638 people and 3,760 were confirmed positive. 45 people have been recorded dead.

    Public health laboratories are said to have increased from 5 to 80 across the 36 states and FCT.

    Scary spike in Lagos – even the governor is not spared

    On December 12, Lagos State Governor Babajide Sanwo-Olu was announced to have contracted COVID-19.

    His infection was the latest among a number of Nigerian governors that have tested positive in the past, despite heading the epicentre of the virus in Nigeria.

    sanwo-olu
    (Photo caption: Governor Sanwo-Olu, though in isolation after contracting COVID-19, goes on night workout)

    Before Sanwo-Olu’s infection, social gatherings like markets, carnivals, clubs had been reopened. In the bustling city, many public means of transport have also  reverted to the old times of full-load passengers and fewer people now wear their face masks.

    The confirmed cases have surged to 24,952 from inception at week 9 to the end of week 50 on December 12. The active cases were 1282 while 231 people had died as of then.

    (Photo caption: How Ogun, Lagos and Oyo stand in COVID-19 record)

     

    The big carrier of COVID-19 vs vulnerable population

     

    Out of the 73,173 cases recorded as of December 13, the end of the 50th week, Nigerian youths account for a significant rate of those cases.

    According to data from the public health agency, between February 27, when the country recorded her index case and October 17, people between the age of 31 and 40 are more affected by the virus.

    (Photo caption: Data shows the youths between 21 -40 test more to the pandemic than others)

    At that time, 27 percent of 61,307 that got COVID-19 were between the age group 31 and 40. Others were spatially distributed across the remaining seven categories but the commission didn’t give the actual figures for each of the eight categories.

    However, from week 43, when NCDC began to publish the breakdown for the age groups, findings revealed that youths (between 21 and 40) tested positive more than other age groups.

    As of week 43, 6,864 infants less than 10 up and young ones of age 20 have tested positive. 29,393 youths between 21 and 40 tested positive to the virus while 22,928 adults between 41 and 70.

    By week 50 (between December 7 and 13), the numbers had greatly soared as 7686 children and teenagers, 31,152 youths and 24,262 adults had contracted the virus.

    ….but data says the old are dying more

    As of week 43 (between October 19 and 24),  28 children below age 21 had died of COVID-19 in Nigeria, 158 youths between ages 21 and 40 had also died while 942 people between 40 and 70 had died by that same time, making it a total of 1128 for the eight categories mapped out by NCDC.

    In the space of that week and week 50, (between December 7 and December 13), the death rate for children below 21 had only increased by two from 28 to 30. For youths between ages 21 and 40, it only increased by two persons too from 158 to 160 but it snowballed for adults between ages 40 and 70. 973 people between ages 40 and 70 had died by December 13, making a total of 1166 for the eight categories given by NCDC.

    (Photo caption: ALERT – COVID-19 death tolls on the adult population)

    In summary, 30 children below age 21 had died of COVID-19 as at the end of December 13, 160 youths between ages 21 and 40 and 973 adults between ages 40 and 70.

    Data corroborated the fact that although the youths test more to the virus, they quickly recover in spite of a strong immune system but the adults are more vulnerable to the grip of the killer virus.

    This investigation also abundantly established that the youths rove and interact in public places more where the chances of infections are high.

    Authorities, epidemiologists warn youths about rising figures

    In an exclusive response sent to this reporter via email, the NCDC Director-General, Dr. Chikwe Ihekweazu confirmed findings that the country has indeed recorded a surge in the confirmed cases among the youth especially between ages 21 and 30 in  the last few weeks, attributing the reason to increased social gathering and poor adherence to public health measures.

    He, however, admonished Nigerians to be more cautious of their activities and minimise travels.

    ‘While chances are higher that young people recover from COVID-19, they can transmit the disease to their parents and elderly, who are at risk of dying. We continue to appeal to young people across the country and every Nigerian to remain aware of the risks of the disease and especially its impact on the elderly.

    ‘Please avoid all gatherings especially when held indoors, avoid non-essential travel, remain in isolation if you suspect you have COVID-19 and get a test. The virus is still with us and we must take responsibility to avoid large gatherings, wash our hands regularly, maintain physical distancing of at least two metres when in public and importantly, wear a mask to cover your nose and mouth.’

    To survive the acute second wave of the pandemic, the Director-General also assured that the PTF on COVID-19 and NCDC will scale up risk communications within the societies.

    “We have continued to scale up our risk communications by providing advisories, guidelines, and other materials to various aspects of society.

    “We will continue improving the work we do, but our success is really dependent on collective responsibility by all Nigerians. The virus is still with us so we cannot go back to business as usual.

    “It is important to note that not every measure requires the government’s efforts alone. Several institutions have a role to play in ensuring adherence to preventive measures- business owners, religious leaders, traditional rulers, school heads among others’ he noted.

    Experts have attributed reasons for high infection of youths to socio-economic factors like large population in the country and employment as well as their availability to testing.

    “Everyone can be infected by the virus but the common reason for the prevalence among the Nigerian youth is because they are the ones who are testing more in spite of their large population’, said the Ogun state epidemiologist, Dr. Hakeem Yusuf.

    “By the way, our old people easily mistake the COVID-19 symptoms for malaria and unfortunately end up dying before reporting for the test.’

    Similarly, the state’s Director of Public Health and Incident Manager, Dr. Festus Soyinka established that the youths are the dominant working-class, hence their vulnerability.

    But, he raised concerns over the level of enforcement to COVID-19 guidelines by the Nigerian securities who should ordinarily be responsible for that.

    “It is not our work at the ministry of health to enforce compliance in public transport and public gatherings.

    “Now that the President has ordered the reopening of some land borders including that of Ogun State close Benin Republic, we are calling on securities to ensure travellers comply while going about their businesses in and outside the state.”

    Lagos Ministry of Health PRO Mr. Tunbosun Ogunbanwo advised the journalist to wait for the commissioner’s briefing or that of the governor as regards the recent development “in a matter of a few days”.

    On the evening of Friday, December 18, Governor Sanwo-Olu returned restrictions on worship centres, banning concerts, carnivals, and nightclubs.

    “The protocol of ‘No Mask No Entry’ must be enforced by all public places: offices, businesses, markets, shops, and so on.

    “All places of worship (Churches, Mosques, etc.) must ensure that no gathering exceeds two hours, and also that no gathering exceeds 50% of the maximum capacity of the venue.

    “A minimum of two meters’ distance should be maintained between seated or standing guests. “All guests and service providers at events must wear nose masks/coverings before entry”, he further warned.

    • This report was facilitated by the Wole Soyinka Centre for Investigative Journalism (WSCIJ) under its COVID-19 Reality Check project.
  • A brewing food scarcity foretold  by insecurity, climate change

    A brewing food scarcity foretold by insecurity, climate change

    Chad River Basin and Niger Basin areas are rich in diversity with a population of more than 160 million inhabitants. But the wealth of the area is facing many challenges in the face of climate change, insecurity and lack of resources to tackle the challenges confronting them. Assistant Editor BOLA OLAJUWON reports that food scarcity and more displacements are brewing in the areas

     

    UMAR Sa’ad is a farmer and fisherman, whose family members and generations had lived a few kilometres to the edge of receding Lake Chad Basin at Kanem Bol in the Republic of Chad for close to 130 years. He is about 60 years old and cried as he narrated the misfortune that befell the once productive area, no thanks to climate change and state of insecurity by activities of insurgents and Islamic militants.

    “We can’t go farms as we used to again. The land is no longer fertile. It’s now plausible for the youths in the area to join insurgents for easy money, collection of taxes from locals, transporters of goods and human traffickers than being a fisherman or a farmer, owing to the receding water and activities of insurgents against the people and themselves in the name of upholding their religious agenda,” Sa’ad told The Nation.

     

    The changing nature of Lake Chad region

     

    According to the Global Resource Information Database of the United Nations Environment Programme, Lake Chad is an extremely shallow water body in the Sahel. It was once the world’s sixth-largest inland water body with an open water area of 25,000 km2 in the 1960s. It shrunk dramatically at the beginning of the 1970s and reduced to less than 2,000 km2 during the 1980s, decreasing by more than 90 per cent of its area. To Sa’ad, so much has now changed in the basin area for the worst.

    A researcher with the Centre for Peace and Security Studies, Modibbo Adama University of Technology, Yola, Adamawa State, Saheed Babajide Owonikoko, said the Lake Chad origin is unknown, but it is believed to be a remnant of a former inland sea. It doesn’t drain into the ocean but it has shrunk by over 90% since the 1960s due to climate change, an increase in the population and unplanned irrigation. Given the rate at which the lake is disappearing, experts believed that in less than a decade, it may cease to be. This is already affecting farming and allied services in the area.

    “Four countries share borders within the water body – Nigeria, Chad, Niger and Cameroon – and have formed a political union, the Lake Chad Basin countries. Other countries indirectly connected to the lake are Algeria, Libya, Central African Republic and Sudan. Over 30 million people live around the lake,” Owonikoko said.

    For the surrounding countries, it’s a source of fresh water for drinking, sanitation and irrigation. It supports the livelihoods of farmers, pastoralists, hunters and fishermen. But, the Lake Chad region, however, is one of the most unstable in the world. According to the 2020 Global Terrorism Index report, countries of the region are among the 10 least peaceful countries in Africa. The countries in the Lake Chad region and the Niger Basin are inter-linked and facing similar challenges.

     

    The evil of climate change and insecurity challenges

     

    Like Sa’ad, members of the Regional Coordinating Unit of the Users of the Niger Basin Resources, a body representing the farmers and the villagers in the Chad and Niger Basin areas recently lamented the growing level of insecurity within the seven countries in the Sahel regions, who are members of the area. The body said the situation is threatening food security and the movement of people and goods.

    The waters of the Niger River, the Global Resource Information Database of the United Nations Environment Programme stated, are a prized asset for nine countries in West and Central Africa. A source of drinking water, irrigation, fish, hydropower generation, and transport – the majority of the Niger Basin’s 112 million population (estimated at 65 to 70%; World Bank, 2012) depends on this river.

    “We are convinced that the Niger Basin CRIP is an instrument that will lead to an improvement in the livelihoods of the population and that will help fight against poverty in the Niger Basin,” President, Regional Coordinating Unit of the Users of the Niger Basin Resources Nouradine Zakaria Toure said.

    Toure, who spoke at a meeting of the Technical Experts of the 39th Ordinary Session of the Council of Ministers of the Niger Basin Authority in Abuja, said seven of the nine countries that made up the authority are facing issues of insurgency. Countries in the Niger Basin area are Chad, Cote D’Ivoire, Niger, Mali, Benin, Cameroon, Burkina Faso, Guinea and Nigeria, with headquarters in Niamey, Niger Republic.

    Toure said: “Of the nine countries, seven of them are in the Sahel region and today, there is terrorism in all these seven countries. You can take the case of Mali, Chad, Niger and even Burkina Faso. Villagers in these areas have difficulties in selling our produce. Sometimes, we cannot even transport our cows because we have cows that have to move from Mali to Nigeria. We find it difficult because these people are usually attacked and their animals were stolen from them. Sometimes, people have to travel from the north to the south. For example, the Chairman of the National Coordination in Burkina Faso was killed when he was travelling.

    “These are issues we are facing, but whatever the issues, we are forced to live with them because we have to grow crops and have to move around. So, we have to fight against insecurity to survive because we cannot give up right now. We have to continue fighting to help the Niger Basin.”

    With the level of killings and attacks by insurgents, climate change and droughts in the area, farmers are leaving their primary means of livelihood. It is now easier for them to join insurgents like the Islamic State in West Africa or the Islamic State’s West Africa Province, formerly known as Jama’at Ahl as-Sunnah lid-Da’wah wa’l-Jihad and commonly known as Boko Haram – a jihadist terrorist organisation based in northeastern Nigeria, also active in Chad, Niger and northern Cameroon. Their activities are linked with similar Islamic organisations operating in Mali, Burkinabe Faso, Algeria and across West Africa and the Sahel. Nigeria is currently suffering from activities of bandits in the Northeast, Northwest and Northcentral.

    There was chaos recently when the new leadership of the Islamic State of West Africa Province (ISWAP) and members of the Shura council executed three top commanders, including the once most powerful jihadist warlord in-charge of all terrorists activities and operations along the Tumbus of Lake Chad axis for 4 years – Amir Baba Kaka.

    Many farmers have been killed as primary targets and in crossfires. On Saturday, November 28, 2020, about 43 farmers, who had gone to their farms during the current harvest season, were attacked by Boko Haram terrorists at Zabarmari, Borno State. They were tied up; their hands behind their backs; and one after the other, their throats were slit. The United Nations put the number of casualties at 110. Amnesty International said over 10 women and others were missing. The people of the area were so outraged that they refused to bury the dead. They asked that the Borno State Governor Baba Gana Zulum must show up to witness the tragedy that had befallen their community. Many communities have many such sordid stories to tell.

    In northeast Nigeria alone, the impact of the conflict on agriculture is estimated at $3.7 billion due to livestock losses and reduced agricultural production, destruction of irrigation and farming facilities, and the collapse of extension services, including veterinary health facilities, FAO said.

     

    Food insecurity

     

    According to the recent food security assessment by Food and Agriculture Organisation of the United Nations (FAO), more than 6.9 million people are currently severely food insecure in the affected regions of the four Lake Chad countries. The breakdown per country is as follows: Nigeria: 5.2 million people; Cameroon: 1.4 million; Niger: 134,800 and Chad: 123,300.

    Before the protracted, conflict-induced humanitarian situation, the region had struggled with local food and nutrition insecurity for decades. Staple food prices (cereals) in most markets have risen, compared with the previous five-year average. In Nigeria and the Niger, staple food prices have increased in the affected areas by 50 to 100 per cent, mainly due to insecurity and increased transport costs. According to the Cadre Harmonisé maps, the food security situation across the Lake Chad Basin will not improve in most regions and will worsen in others.

     

    Military response

     

    The Multinational Joint Task Force (MNJTF) and Nigerian Army have met several times to strategise to defeat Boko Haram terrorists in the Lake Chad region and Mandara Hills.

    The MNJTF is a combined multinational formation, comprising units, mostly military, from Benin, Cameroon, Chad, Niger, and Nigeria. It is headquartered in N’Djamena and is mandated to bring an end to the Boko Haram insurgency. The MNJTF member countries – Cameroun, Niger, Chad and Nigeria – have on several occasions neutralised many insurgents and destroyed their weapons during military offensives.

    Also, an international operation, coordinated jointly by the UN Office on Drugs and Crime (UNODC) and the international police organisation (INTERPOL) is disrupting trafficking networks that supply terrorist groups across West Africa and the Sahel, the UN agency claimed. The UN agency recently carried out Operation KAFO II targeted at smuggling hotspots in Burkina Faso, Côte d’Ivoire, Mali and Niger recently over seven days, resulting in the arrest of many suspected terrorists and the seizure of illicit firearms, ammunition and explosives.

    The lake area
    The lake area

    The European Union (EU) countries are also responding to France’s call for increased troop deployments in the region as a jihadi insurgency spreads across the Sahel. The United States has upped the billet of the U.S. Army Africa commander—which will merge with U.S. Army Europe—from a two-star to a four-star general. The change reflects the new emphasis that the U.S. Department of Defence is placing on The Sahel.

    From Nigerian angle, like other state parties, Chief of Army Staff, Lt.-Gen. Tukur Buratai announced the extension of Exercise Sahel Sanity to March 2021 to completely knock out bandits from the North West. Exercise Sahel Sanity is a real-time military operation inaugurated by Buratai in July to decisively deal with the menace of banditry, kidnapping, cattle rustling and other criminal activities in Katsina, Zamfara and Sokoto states. Buratai said the Army had been able to stabilise the security situation in the North West since the commencement of Ex Sahel Sanity in July. Other military operations – like Operation Lafiya Doyle – also continued to neutralise the Boko Haram/ISWAP elements in the Northeast and Northcentral of Nigeria.

    President Muhammadu Buhari advised African leaders on the need to implement arms control in the continent. Buhari spoke at the 14th extra-ordinary session of the Assembly of the African Union (AU) on “Silencing the Gun”, held virtually early December. He said: “The major challenge for Africa today is achieving a new trajectory of peace, security, stability and a conflict-free Africa, following threats of terrorist activities and other crimes across the continent.” He said the increasing number of peace agreements and their ongoing operationalisation in conflict situations around the continent demonstrated a resolve to chart a new course.

     

    FAO interventions

     

    The United Nations Food and Agriculture Organisation (FAO) said it was providing agricultural and livelihood assistance to host communities and displaced people in the Lake Chad Basin as a result of massive population displacements and insecurity that are putting livelihoods and food security at high risk.

    Specifically, FAO is providing critical agricultural and livelihood assistance to 92,000 people in the Lake Chad Basin and will reach an additional 123,200 people in the coming months with essential crops for the ongoing and upcoming agricultural seasons. Many of the farmers who will receive seeds didn’t plant in the past two years due to insecurity and the lack of agricultural inputs.

    Besides, FAO is increasing its field presence by setting up a field office in Maiduguri, northeast Nigeria, to ensure adequate monitoring of interventions. Enhanced efforts are being made to better assess the current needs and develop coordinated interventions, together with national authorities and other partners.

     

    International Crisis Group on countering violent radical messages and improved communication

     

    On arrested militants, International Crisis Group, in a report, stated that the screening process must be initiated to distinguish between real members of Boko Haram and those who were either at the periphery or even not associated with the group at all.

    “The latter should be released and integrated into broad community development projects targeting the youth. Following the recent initiative of the interior ministry in neighbouring Niger, Chadian authorities should elaborate a framework document for the treatment of surrendering insurgents and communicate it to its international partners.

    “To encourage surrenders, counter violent radical messages, improve communication by the authorities and allow local people to express their concerns, community radio stations should be supported and expanded. Most of these will necessarily operate at a local level, but consideration should be given to developing community radio stations with a remit to cover the whole lake area, to reflect the diversity and integration of the populations. Such radio stations, which could be based on existing initiatives in neighbouring countries, should broadcast in a wide and balanced range of local and national languages, and should include messages of peace, calls for surrender directed at Boko Haram members and information on other issues of lake-wide interest such as cattle prices,” the International Crisis Group said.

     

    Recharging of the basins and the need for financial resources

     

    A report of a seminar, “Adaptive Water Management in the Lake Chad Basin: Addressing Current Challenges and Adapting to Future Needs”, convened by the Lake Chad Basin Commission (LCBC) and the Food and Agriculture Organisation of the United Nations (FAO), indicated that research studies have shown that high evapotranspiration in the Lake Chad area involves not only surface water but also groundwater.

    The report mentioned the Lake Chad Basin Commission’s study of the possibility of adopting a surface water recharge system, through the transfer of some of the water from the Oubangui Basin to the Lake Chad Basin. Oubangui River is the second largest tributary of the Congo River (after the Kasai), with a length of 2400 km from the source (Uele River) to its confluence with the Congo River and a drainage basin of 644,000 km.

    The aim of the water transfer project, according to LCBC and FAO, is to construct a navigable channel using some inflows from Oubangui to supply Lake Chad with water. This arrangement will have multiple goals: to ensure river transportation to transfer goods from east to west across Africa; to produce electricity, and to develop irrigation and agro-industry in the region. In addition to its capacity for drought control in Chad, the gradual restoration of the level of Lake Chad will also serve as a barrier against Sahara desert encroachment.

    “The project can be used as a real impetus for the rehabilitation of fisheries and irrigated farming on the banks of the Lake and the Chari River, and it will help to connect LCBC countries to the two Republics of Congo by a navigable channel,” LCBC and FAO stated.

    While so much has been said about the water recharge, the cost implication is high and the UN and international community have been urged to fund the initiative to no avail. International conferences have also been held on the recharging options, but the international actors are yet to walk their talk.

    Federal Ministry of Water Resources Permanent Secretary Mrs Didi Walson-Jack, in an interview, said activities of the basin cannot be developed without the resources to do so. According to her, the Niger Basin Authority is a means of meeting the developmental challenges in the management of water resources within the basin but was quick to add that the delays associated with the payment of member countries contributions have been identified as one of the major constraints in the operation of the institution.

    However, military operations coordinated with peace mechanism, agricultural interventions by FAO, the basins member-states, the commissions and recharging of water of the Lake Chad are sacrosanct for the livelihood of the people of the area and peace for West Africa and the Sahel, or else scarcity of agricultural products, more displacements and violence are staring millions of people in the face.

     

  • Travails of Lagos farmers as climate change bites hard

    Travails of Lagos farmers as climate change bites hard

    Flooded farms and scorched crops are realities of farmers in Lagos. OMOLOLA AFOLABI examines their travails.

     

    The ride to Elder Ayodele Olowoake’s farm was a bone-cracking one-hour expedition from his hamlet in Igboye community, Epe, in Lagos State. Even more painfully memorable was the fracture it left on the reporter’s joint and bruises on Mr. Olowoake’s aging body, after a motorcycle accident from his spent machine.

    The farming community grapples with roads that are more appropriately described as footpaths as automobiles are greatly put at a disadvantage plying the routes.

    “I would have changed this bike for a new one but the proceeds from my farm was just enough to take care of my wife and also my children’s education until the rains stopped and dried up our usually bountiful harvest”.

    “The youngest of my children is in his final year. Daniel Olowoake is studying accounting at the Lagos State University, Ojoo, he is Mr. Olowoake’s 5th child. He however lamented how he can’t afford expenses for Daniel’s final year project, which is the concluding part of his undergraduate program because of this”, pointing calloused fingers at the 4 hectares expanse of land he cultivated in March 2020 with cassava, all of which are now withered and dried.

    Mr. Olowoake also said in his 4 decades of farming, he has never encountered such an enormity of drought.

    “Reason I again invested over N400,000 but look what came out of it”, he said lowering his towering mass to dig out another shriveled piece of cassava tuber, like a lifeless human body.

    The renowned poet Niyi Osundare’s, in “Kebuyeri”, one of his several lyrical and humorous poem where he describes the protagonist, in a rather exaggerated manner as “a man whose tears are as full as the rains of August”, this is a pointer to the consistent timeline of rainfall, which was surprising, disrupted this year.

    The planting season, which sometimes starts as early as April is usually deployed by farmers practicing mixed cropping. Maize, being a shallow-rooted crop is intercropped with cassava, a deep-rooted crop, this is done to optimize land and maximize yield.

    The rains stopped on the 9th of July, with a bit of drizzle on the 31st of July, ceasing all through again with very light drizzle on august 19th and 22nd and beginning again in September the 14th, heavily, making it approximately 56 days the rains ceased in the city of Lagos, of aquatic splendor too.

    Climate change: the culprit, humans: complicit

    Implications of climate change however resulted in the rains going into recess at a time it should come most regularly. Referred to as “August break” by farmers, this has consequently turned the usually “bumper” harvest unproductive, with barely enough to sell and very little to keep going afterward.

    Climate change has led to an increase in the risk of food insecurity for vulnerable groups, with Africa recording between 1-18% decreases in food production, says Agronomy Expert, Tanja Folnovic.

    The United Nations in its acknowledgment of the unprecedented food crisis, even worsened by the pandemic will be awarding this year’s Nobel Peace Prize to the World Food Programme, again, the first of its kind.

    The World Food Programme Since May 2015, has supported national and state emergency agencies and humanitarian partners to assist people displaced by conflict. WFP has been transferring operational know-how, providing technical support to strengthen food security data collection, enhancing the emergency response at displaced sites (including through food distribution), and providing safe and reliable air transport services to the humanitarian community.

    Drought and flood: Farmers say “It’s the Lord’s doing”

    Many farmers, the reporter discovered are oblivious of what is responsible for the change in weather. Mr.Olalere Shadeko, a farmer in Imota Farm Settlement referred to the situation as the “Lord’s doing” while disregarding any scientific evidence or explanation put forward by the reporter.

    Mr. Shadeko who religiously keeps a weather chart made with the improvised underside of old calendars showed the reporter, in a most instructive demeanor, details of fluctuations in weather conditions.

    “It is God that makes it rain when he pleases when he refuses to make it rain, it is his bidding too, we have no right as humans to question him or begin to look for an answer”, he said thoughtfully.

    The knowledge and awareness of a situation is the first step to finding a solution as it arms the people involved with the capability to resolve it. Lagos State farmers are however convinced that climate change is only a façade, thereby making them incapacitated to proffer solutions to the situation.

    Mrs Bose Oke is a 34- year- old widowed farmer and mother of two. Mrs. Oke’s only means of survival is the maize and cassava farm which she has invested a fortune and more in, but sadly turned out very little yield, also implications and result of the rains that stopped, just as above.

    “I can’t pay school fees of the older one, the younger one should resume school soon but, is it the buyers that patronized me on credit after buying the remnants of my farm produce that I would go and demand money from? She said, quite dejectedly, throwing away scorched maize ear while holding her toddler, tightly.

    Like other farmers, Mrs. Oke says her 34 years of farming experience have been without any weather glitches or fluctuations.

    Adding his voice, Mr. Taiwo Aderemi, the incumbent President of Imota Farm Settlement in Ikorodu area of the State. It is one of the 37 Local Council Development Areas of the state. The settlement was established in the year 1960 to encourage mechanized farming and investment in rural agriculture.

    “I have been living in this establishment for over 42 years now; this is what I can say for a fact. I happen to be one of the pioneers here who started this after leaving the College of Agriculture and Horticulture”.

    “I’ve never experienced such thing as the break in the rains especially between June and July, a period the rains get to the peak. What most people usually target is the August break but this year, we have experienced July,  August and, September breaks”.

    I have approximately 10 hectares of land for cultivation but nothing substantial came out of it, she disclosed with a somewhat teary countenance.

    “The private farms within the community use the irrigation system to substantiate and complement the rains. We however do not have access to that in our farm settlement. I tried to improvise the hose and the generator to make the farm produce but lack of power and the high cost of fuel are also making these efforts futile”, he said.

    According to Aderemi, several letters have been written several times to the Ministry on the need to ensure the provision of these very necessary facilities, but there has been no response from the quarters. Livestock farming also suffers as a result of this, the reporter observed.

    “They would say when they give farmers loans to help provide these, we squander it by using it to marry more wives, as a responsible father who is very satisfied with my family life and only interested in providing for the family and ensuring food security is ensured across Lagos, I wouldn’t even contemplate that”, vocal Mr. Aderemi, said, as he shrugged with indignation.

    2021: Food crisis still looms

    80-year-old Mrs. Latifatu Ipaye jocularly referred to the other farmers in Ikoga Community of Badagry as “the ones she weaned” in the business. The rotund woman is a mother of 5 and grandmother to many.

    She said 40 moderately sized cassava tubers were been sold for as low as 400 for over 3 years, a price which has been steady for over 5 years now but as of today,25 goes for #10000, “the “garri”, (term processed cassava is referred to in the local dialect) is depleted now”.

    “The cassava that is being planted are the ones we are harvesting now, this means we have much in our hands next year so right now, there is less output”  the octogenarian, with dentition, a little too white and surprisingly complete for her age explained.

    She explained that the final product costs  (three paint buckets) which go for 3500. Five years ago, it goes for #250, this is over a 100% increment in the market. She said farmers do not possess the purchasing power to afford some of the barest necessities but despite this, their resilience and commitment to keeping hunger at bay remain a strong motivation and a source of fortitude.

    According to the farmers, it’s the only means of livelihood. Mrs Ipaye’s situation was however not the drought but flood, she lamented how her cassava farm became a flooded wasteland when the rains came down in torrents, a sad reminiscent of scriptural times.

    “This food crisis will extend longer than 2020 as the situation we’ve got in our hands is quite dire, says The Chairman, National Programme For Food Security, Ipanla, Igboye community in Epe area of the state, Mr. Adedipo Oladele.

    “When the rains finally came, however, it came in excessive torrents, carrying a lot of our crops in its trail, the cassava was majorly affected as they are tuber crops, they started rotting due to the heavy moisture. In short, we have experienced both extremes of the weather; he narrated, at this point, a decomposing odor wafted into the reporter’s nostrils, for the first time, as if Mr.Oladele’s commentary invited it.

    “It’s been a very erratic and serious situation, I must say. This year, we don’t have much, after the rains stopped, the sun came out, scorching and it dried up most of the crops, it was burning as if it’s not going to end, so it has reduced our income”.

    “Their plight is that what they have planted and harvested in the previous planting season is what they are still living on, although we are replanting the crops, we are making fresh farms”.

    “The yield from the late maize all depends on the weather, the weather has changed because we don’t even know how to predict it anymore, whether or not it will be profitable is what we are going to do is to attempt, it is very erratic and serious, in totality. This year alone, we don’t have much, after the rains stopped, the sun came out scorching and it dried up most of the crops, it was burning as if it will never stop”.

    The farmers said even the diminutive harvest they could gather was stuck in the farms, as moving them to the markets and other places was an effort in futility because of the bad connecting roads, a situation, even worsened by the flood which has caused massive rifts on the dirt roads.

    “The yield from the late maize all depends on the weather, the weather has changed, we don’t even know how to predict it anymore, whether or not it will be profitable, what we are going to do is to attempt, we cannot stop”.

    Decrying the exorbitant rates at which loans are being given to farmers, Mr. Oladele said, “We try to assist our farmers in our little way, so the monies and loans, the loans we disburse here, we only charge 10% interest on the loans, we give out to farmers.

    The BBC reports that since March 2020, millions of Nigerians have been spending more money on food prices. It will be recalled that President Muhammadu Buhari placed a  prohibition of loans to farmers importing food or fertilizers, ”We will instead empower our local farmers”, he promised.

    Mrs Olaide Afolake is the Lagos State All Farmers’ Association Leader. The very vocal woman also attested to the farmer’s inability to access loans due to the exorbitant interest rate, especially for unforeseen circumstances such as the one they currently experience.

    According to her, after the fumigation process, the farmlands were prepared before the lockdown, so getting our farmhands to move here was a lot of work, she said as she stopped in mid-way in her speech to confirm if the recorder was capturing her every comment.

    Mrs.Afolake, who has been farming since 1990  said “We have spent over three million on this farm which is over 4 hectares of land, even for the maize. We have been processing loans for over 8 months now, at Bank of the Agriculture but we could not access it”.

    “The interest in a loan of #250,000  was 13% for a year but when we spoke against it, it was later reversed to 6% after the initial deposit of #50,000, this shouldn’t be. We do not have to go to such an extent for a loan in a bank that is supposed to adequately represent the interest of farmers”, she said as she offered the reporter a freshly harvested cucumber from the sack.

    “We farmers shouldn’t be suffering, we are the food baskets, no food, no nation, we have to come back to the roundtable with the government to discuss the way forward and we hope they can give us their listening ears, she added.

    Tighter access to credit for farmers and the complexities of loan repayment and limited access to farm inputs mitigate seamless agriculture practices among farmers, this, the reporter observed.

     Trends in weather and food prices

    According to Nigerian Meteorological Agency, the rainfall data in the year is estimated to be about 3000mm in the southwest of Nigeria for the year 2020 which is a little on the lower sides compared to what we obtained in the previous years where the agency predicted normal onset and cessation of rainfall.

    At Mile 12 market in Lagos, a bag of processed cassava (garri) goes is sold between #13,000 and #17,000 currently while 50 kg of maize is sold #13,500  which points at average annual food inflation rose from 9.02% in May 2015 to 15.70% in December 2016 and was as high as 20.32% in October 2017 and 20.25% in August 2017.

    The consumer price index has risen from 14.9% in February 2020 to 15.18% in June 2020 which indicates an increase to 17% by September 2020. This is a considerable rise from 13.9% in July 2019 and 14.09% in October 2019”.

    Government intervention

    “The government has put the Agricultural Credit Guaranty Insurance Scheme and other intervention project funds in place to alleviate the loss, it’s so much lip service as we all know how much money is budgeted for this but you see them giving farmers loans at double digits” added Mr. Bode Afolabi, the Secretary of the Association.

    “The end users have lost their purchasing power, the price of everything has skyrocketed. It is a problem all the way, many are very skeptical now when it comes to farming because we are not covered by insurance when things go awry and there is so much advertisement on funding but it hardly ever translate into actions”.

    In Badagry however, it was a different situation entirely, one would expect to see the usual dried, withered crops but the farmers had to contend with The rot of the cassava tubers were evident from the flooded farms, the tubers which didn’t develop as normal were adversely affected by the waterlogged farms.

    Called “garri” in the local dialect, the tubers were not only stunted but they were already decomposing, a result of the stagnant rainwater.

    “You see a lot of my cassava were lost to the flood, after the sun-dried them off, the other ones were completely swept off to other people’s farmlands, I couldn’t even get up to 10% of my overall investment”

    Mrs.Ipaye said in a distinct Eegun accent, as she sat down dejectedly on the farms, counting her losses, in retrospect.

    “Before now, we used to lament the bad roads and the cost of transportation from our farms to the markets, but right now, there is nothing to move or transport, it has been a sad, sad harvest”.

     Experts discuss way forward

    Mr.Alexander Akhigbe is the Chief Environmental Officer of the African Clean-Up Initiative. Speaking on

    the adverse implications of climate change on agriculture and food production, he said: “In Nigeria, our climate has been changing with much evidence in the increase in temperature, variable rainfall, flooding, and rise in sea level, especially in Lagos.

    Not to mention drought, desertification, and land degradation.  More frequent extreme weather events affected freshwater resources and loss of biodiversity and we can say that crop production which is one of the most vulnerable systems has been heavily affected by climate change.”

    According to him, climate change is perhaps the most serious environmental threat to the fight against hunger, malnutrition, disease, and poverty in Africa, mainly through its impact on agricultural productivity.

    “Unpredictable rainfall variation, heat stress, and drought can adversely affect food production and result in a food shortage crisis. These are two  statistics that summarize Nigeria’s food crisis. First, an estimated 46 million people lack access to food that is safe, cheap, and available to eat. Secondly, 44% of children under five are stunted. This is a life-long scar that affects their cognitive skills and development”.

    Responding to questions about the fear of farmers on food crisis which may linger on till 2021, he said “Yes, we can say their fears are valid because the August break which is characterised by a decline in the amount of daily rainfall for a number of weeks has made crop cultivation in the three geopolitical zones in the south and the North-Central Zone hampered just as predicted by Nigeria Meteorological Agency (NiMet)”.

    “Even agricultural scientists and economists said the situation underscored the reality of climate change, stressing that no part of the world is immune to its effects. Currently, if you notice the prices of food stocks have gone up because there are little or no farming activities in the previous months as a result of the change in our climate”.

    He however recommends that government can help drive the sector through consistent policies, robust funding, and infrastructure development.

    According to Mr.Akhigbe, the anticipated benefit from trade liberalization has failed to trickle down to the African farmer, coupled with the inefficient local marketing systems. He said “ In besides, the farmers should be enlightened in changing their farming practices such as bush burning, deforestation and, rain-fed agriculture and platforms to acquire requisite education, information, and training necessary to adapt to climate change should be accepted.

    “In addition, there should be an explicit national agricultural policy framework, adequate provision for irrigation, drainage, weather forecasting, and other agricultural technology infrastructure, an incentive for training in agriculture, participatory and on-going capacity building for farmers, drought resistant and short duration high yielding crops development, integration of indigenous and modern knowledge on climate change adaptation, strengthening of the extension services, and encouragement for the formation of all farmers”.

    Inflation rate at 13.71% and food inflation at 16.66% indicating that the purchasing power of consumers are consistently and rapidly declining on monthly basis, despite the income of most Nigerians pegged at a fixed level while others earning a lower income.

    After a careful comparison of the composite food index between September 2015 and September 2020, it was reported last month that food inflation increased by 110.5%, this shows that the purchasing power of Nigerians is constrained, as real income has reduced significantly, despite the 66.7% increase in the National minimum wage from N18,000 to N30,000.

    Published 2 months ago on September 16, 2020. Despite billions on agriculture, food inflation has gone up by 108% since 2015.

    Whilst the Nigerian economy has been ravaged by a very low oil price environment since it fell from over $100 per barrel in 2014, most of the reasons for the increase in the cost of living are partly attributed to some of the policies of the government.

    The United Nations has warned that the world stands on the brink of a food crisis worse than what the world has witnessed in the last 50 years, adding a note of warning to government to avoid disasters”.

    In November 2016, with support from UNICEF, WFP launched a joint Rapid Response Mechanism (RRM) to supply food, nutrition, and health support to people in hard-to-reach areas in Borno and Yobe states of Nigeria. The RRM includes extensive use of helicopters and the pooling of logistics and telecommunications resources across the humanitarian community.

    Samuel Ogunsola is the founder of Food and Genes Initiative and a volunteer with Sustyvibes, both climate and environmental advocacy Not-for-profits.

    Ogunsola lamented the global crisis maintains that it remains the most challenging environmental problem we face and according to him, mitigating the implications of climate change involves interventions that will address the root problems.

    “A large number of these interventions should involve formulating policies and creating innovative technologies especially the ones that will curb greenhouse emissions.

    Ogunsola recommends that policies that will boost aforestation and reduce the consumption of high energy products and the developments of natural carbon sinks such as forests, vegetation, and soils that can help absorb carbon dioxide and technologies that involve the use of renewable forms of energy will significantly help in mitigating climate change.

    Although the climate activist acknowledges that the Nigerian government might not be capable of adopting technologies used in other countries that are far into the climate change business, he, however, said climate-smart agriculture and investment in agricultural startups whose thrust is climate smartness are ways of ensuring

    All efforts to engage with the Ministry of Agriculture Spokesperson, Mr.Jide Lawal on efforts Lagos State Government is making towards cushioning the implications of climate change on farmers however proved abortive.

    • Support for this report was provided by the Premium Times Centre for Investigative Journalism (PTCIJ)’ through funding support from Ford Foundation.
  • Oyebade bows out of police

    Oyebade bows out of police

    Precious Igbonwelundu reports that despite the Coronavirus pandemic, dignitaries on Tuesday trooped out to honour Deputy Inspector General of Police (DIG) Adeleye Oyebade, who retired from service at the Police College, Ikeja, where his career began in 1986.

    Hundreds of ceremonially dressed policemen who filed out in columns thrilled the crowd that converged on the parade ground, Police College, Ikeja, to witness the pulling out ceremony of an unblemished senior officer, Deputy Inspector General of Police (DIG) Adeleye Oyebade, who was in charge of Research and Planning.

    Despite their masks neatly covering their nostrils and mouths, the excitement on the guests’ faces as the colour party, band and various parade platoons marched in sequence with synchronised steps and eyes-right, could be felt.

    Dignitaries at the ceremony included the Ooni of Ife, Oba Adeyeye Ogunwusi; Oba of Lagos Riliwanu Akiolu; General Overseer, Winners Chapel, Bishop David Oyedepo; Inspector General of Police (IG) Mohammed Adamu; former Ogun State Governor Ibikunle Amosun, Assistant General Overseer, Redeemed Christian Church of God (RCCG), Pastor Johnson Odesola, Senator Ganiyu Solomon and retired DIG Babatunde Ogunyanwo.

    Others are the Assistant Inspector General of Police (AIG) in charge of Zone II, Ahmed Iliyasu; Commissioners of Police in charge of Ondo (Bolaji Salami), Ogun (Edward Ajogun), Oyo (Joe Enwonwu), Edo (Johnson Kokumo), Lagos (Hakeem Odumosu) and Commandant, Police College, Ikeja, CP Olasupo Ajani.

    Cheers from the crowd followed the scintillating performance from the parade contingent whose display was capped with hearty cheers to DIG Oyebade- the reviewing officer.

    The outpouring of love towards DIG Oyebade from both the police and civilian community present at the field was not surprising. DIG Leye Oyebade as he is fondly called is a man whose sterling qualities distinguished him in service. His integrity, intelligence, diligence, discipline, honesty, exemplary leadership style, inclusiveness and above all, the fear of God in him were never in doubt.

    Little wonder, in their remarks, his bosses- IG Adamu and former IGs Musiliu Smith and Sunday Ehindero spoke highly of him Oyebade. Specifically, an excited Ehindero narrated how he trained Oyebade and about 70 others at the same premises 34-years-ago.

    “It is not a coincidence that it is in this college that we are conducting the pullout of Leye. He excelled during the training as the best all-round cadet and he was awarded a Sword of Honor,” said Ehindero amid cheers from guests.

    Recalling with nostalgia his words of advice to the cadets in 1986 to make a career of the police force and take a tide at the flood, Ehindero said “Leye Oyebade took advantage of the flood and high tide to make a fortune and career in the police force. In his career in the Nigeria Police Force, he held sensitive posts, including my PSO 2 when I was IG in 2005.

    “He was DCP State CID, Panti, Lagos; AIG in charge of Zone 11, comprising Ondo, Oyo, and Osun States; finally as DIG in charge of Research and Planning, Leye Oyebade took advantage of the current when it was useful, and made a successful career in the police force.

    “Today he is exiting the Nigeria Police Force after a successful career attaining the age of 60 years. I congratulate Leye and his family for a successful career in the Nigeria Police Force, leaving the police in one piece and not in pieces.

    •Senior officers pulling out Oyebade

    “Leye Oyebade DIG could say in the words of St Paul the Apostle, I have fought a good fight. I have finished my course; I have kept to the oath of allegiance, and I have kept to the faith. Fare thee well, Oyebade.”

    In his remarks, Smith, who’s the Chairman, Police Service Commission (PSC) also showered encomium and prayers on Oyebade, describing him with superlative words.

    He said: “Leye is close to us. He has been close to us because he happens to be a very, very sound officer. Not only knowing very well police duties, not only being a very good detective having commanded the CID Panti, but he also happens to be a good administrator; very good ambassador of the Force who has attracted a lot of good people to be close to the Force.

    “So, I want to use this opportunity to heartily congratulate him and the family. At least the family will now have Leye 100 per cent, not like 10, 20 per cent before. Let me advise you that as somebody who has done 35 years of solid service to our country, that as you come out, please you must slow down.

    “You slow down because you are not growing younger. I want to use this opportunity to wish you a very happy, very peaceful, and very successful after service life.”

    DIG Alkali told The Nation that Oyebade’s contributions to the development of the police were immense.

    He said: “I was sent by the IGP to represent him. DIG Oyebade is my colleague in the management team. He came into the management team before me.

    “He is an intelligent officer who has contributed immensely to all decisions that are taken by the management towards running the police force under the leadership of the Inspector General of Police, Mohammadu Adamu. I wish him all the best in his retirement.”

    CP Salami described  Oyebade as a good, thorough and professional man in all ramifications.

    Salami said: “I wish him peaceful retirement. We have been together for the 35 years that he served minus few months. Both of us started together in UNILAG. We stayed in the same room and we joined the police.

    “We appreciate God for his life and pray that life after retirement will be better than when he was in service. He is good, thorough, professional man in all ramifications.”

    Aside the police family, Oyebade received accolades from the General Overseer, RCCG, Pastor Enoch Adeboye through Odesola.

    Delivering the goodwill message, Odesola noted that while Oyebade is addressed as DIG in the police, to them he is Pastor Leye.

    “We know him as a pastor; and he functions in all areas as a pastor. We have seen him preached. He has functioned on the highest platform along with Daddy G.O. So, our Daddy is sending congratulations.

    “We want to congratulate you, Pastor Leye for working for this nation, serving your motherland and having good support here. We believe that the service to this land is a continuous one. Daddy asked me to tell you few things-

    “Number One: You need to stay connected to the source of your life. God is always the source of your life. He’s helping you to come to the earth to be a solution, not a problem; to be an answer, not a question.

    “Number Two: He asked me to tell you the word of God that he had taught you. But never leave your mouth, because the grass can wither, the flower can fade, but the word of God will stand forever. Number Three: Don’t forget to ask God anytime you are in a junction that you need a solution.”

    He also thanked the DIG’s wife, Adebimpe, and his mother, Mrs Yinka Oyebade, a celebrated retired police officer known as Mama Toyin of the Lagos Police Traffic Division in her heydays.

    Giving his valedictory speech, Oyebade characteristically thanked God for the grace to witness the ceremony organised by the police in his honour.

    He remembered his colleagues who paid the supreme price in the line of duty, sending love and prayers to their families.

    “I am elated and full of gratitude as today marks the end of a fulfilling career as a police officer. What more, it is also my 60th birthday! I would have served for 35 years on 1st of February 2021.

    “My enlistment in the Nigeria Police Force as a Cadet Assistant Superintendent of Police along with 106 other colleagues began here on February 1, 1986. I was 26 years old, young, energetic and full of dreams, aspirations and high hopes.

    “We all had ideas on how we would contribute in fighting crimes and how to make our society better. Our path was strewn with different challenges and obstacles but to God be the glory some of us surmounted while others were not so fortunate,” he said.

    Oyebade was not an accidental policeman. His sojourn to the police was well thought out and driven by a passion to serve. At the time his enlistment into the police came out, Oyebade said he already had an offer as a graduate lecturer but jettisoned it.

    “After bagging an Honours degree in Sociology from the foremost University of Lagos, my mind was made up that the police is the right place to deploy my knowledge and with conviction and passion, I joined one of the best police, if not the best police force in Africa.”

  • REA lifts FUAM with 24hours  electricity supply from 8.25mw solar

    REA lifts FUAM with 24hours electricity supply from 8.25mw solar

    After test-running the 8.25mw solar hybrid power plant project in the Federal University of Agriculture, Makurdi for 137 days, the Rural Electrification Agency (REA) has inaugurated the project to boost learning and research in the institute, reports JOHN OFIKHENUA

    It was a carnival of a sort when the Rural Electrification Agency (REA ) team arrived the Federal University of Agriculture, Makurdi (FUAM), Benue State, for the commissioning of the 8.25mw solar hybrid power plant project. While some of the elated state dignitaries said it has pushed darkness on the campus to history, others noted that it has brought unprecedented 24 hours daily electricity supply to the 13,000 staff and students of the university community.

    Present at the event were the Managing Director of the agency, Dr. Ahmad Salihijo Ahmad; Chairman, Senate Committee on Power, Senator Gabriel Suswan; Vice-Chancellor, Prof Richard Kimbir; Executive Director, Rural Electrification Fund, Dr. Sanusi Ohiare; Nigerian Electrification Project (NEP), Head, Project Management Unit, Anita Otubu; Tor TiVo, HRM, James Ayatse; among others.

    The project is under the Energizing Education Programme (EEP) of the REA initiatives. Ahmad on his own told the surging crowd at the university that the agency is implementing the initiative on behalf of Federal Government. The EEP, he said, “was designed to develop off-grid hybrid captive power solutions for the generation and provision of clean and sustainable power supply to 37 federal universities and 7 university teaching hospitals across the country. The programme was also targeted at rehabilitating existing electricity distribution infrastructure, providing designated street lighting for illumination and safety across campuses, as well as provision of a world-class renewables Workshop Training Center for each of the beneficiary institutions.”

    He explained that under the Phase 1 of the EEP, 9 Federal Universities were selected from the six (6) geo-political zones in Nigeria, with the Federal University of Agriculture Makurdi being the selection for the North Central Zone. Furthermore, according to hi, the Programme implementation was designed to incorporate gender mainstreaming through the Female STEM Internship Programme. The STEM Programme, from his explanation, was targeted at training 20 female students per university on the various components in the Engineering, Procurement and Construction chain of power plant deployment.

    Continuing, he said so far, two power plants have been commissioned under the EEP i.e. the 2.8MW captive solar hybrid power project at Alex Ekwueme Federal University, Ndufu-Alike Ikwo, Ebonyi State, on the 2nd of August 2019 and the 7.1MW captive solar hybrid project at Bayero University, Kano State on the 3rd of September 2019. Thus, this will be the third EEP Phase 1 site to be commissioned, with two others scheduled for commissioning in the coming weeks, he said.

    The FUAM Vice-Chancellor, Prof. Richard Kimbi had in his welcome address described the project as “consisting of a renewable energy workshop/training and solar-powered streetlights.” He noted that the institution, with a population of about 13,000 students and staff, is situated in the heart of the capital city. It has several faculties and research centres that are to benefit from the solar project.

    Speaking specifically on the FUAM project, the REA boss said “suffice to state that the project we are here to commission today has undergone the standard processes of design, construction and test-run. As part of the trial phase, the university has received power from the plant for a total of 137 days and is therefore fully set for an operation to deliver reliable power to the staff and students of this noble institution. The reliability of the power will not only drive conducive learning but also boost research and development. This, we believe is contributory towards the achievement of the goals set for the growth of Nigeria’s education sector under this administration’s Economic Recovery and Growth Plan.

    “Furthermore, the Workshop Training Centre was designed to train students and staff of FUAM on the theory and practice of renewable energy, towards the greater outcome of increasing the total number of Nigerians with standard knowledge of clean energy solutions as we move towards an off-grid renewable energy revolution in Nigeria’s power sector.”

    He congratulated the 20 Female STEM students of FUAM who successfully finished their internship program that ran through the construction phase of the project. Commenting on their internship, he said, the young and intelligent women showed remarkable resilience and passion for practical knowledge. Ahmad submitted that “It is my belief that as they graduate today, they will serve as beacons that will contribute to the advancement of the power sector in Nigeria.”

    He recalled that the COVID-19 pandemic and its attendant public health challenges stalled the completion of some minor components of the project as it restricted activities and movement of persons across the country for what seemed like months unending. Despite the pandemic, REA remained resilient towards ensuring that it kept to its mandate of delivering sustainable power and creating the platform for more jobs and knowledge transfer. Cheerfully, he said: “Hence, we are here today for this ground-breaking commissioning being an indicator for resilience, hard work and dedication on the part of all who in one way or the other contributed to the successful delivery of this project.”

    While the Nigerian Electrification Project (NEP), Head Project Management Unit, Anita Otubu, recalled that the Federal Ministry of Environment facilitated the Sovereign Green Bond in a bid to promote clean energy initiatives, Ahmad revealed that moving forward, the REA has secured funding from the World Bank and African Development Bank towards the implementation of Phase 2 and Phase 3 of the EEP respectively. These phases, according to him, will see to the design and construction of captive hybrid power plants across a total of 15 federal universities and two Teaching Hospitals and they will be implemented under the NEP.

    Charging the university community on the sustainability of the project, he told the management and students that the project is now theirs.

    Furthermore, he maintained that “This 8.25MW solar hybrid power project and its ultra-modern training facility are now yours, and I urge you to ensure it is sustained and used optimally, ensuring that energy efficiency in the use of power is held as a core principle while utilizing the infrastructure.”

    Meanwhile, Suswan told the gathering that the project will give the university 24 hours daily electricity supply. He described the EEP as a Programme which is an initiative of the Federal Government has provided a most veritable and robust platform for National Assembly to engage and collaborate with the executive in advancing the shared interests of providing efficient, competitive, and sustainable electricity to unserved and underserved people in Nigeria.

    Suswan pledged the desired legislative support for the project. He said the 9th National Assembly is excited to align itself with this project and is committed to continuing to provide any and every necessary support to ensure that the resources, enabling environment, and oversight is available to provide efficient, sustainable, and competitive electricity to unserved and underserved areas in Nigeria.

    The elated Benue State Governor, Sam Ortom this thoughtful project aligns with the Rural Electrification Agency’s mandate and Federal Government’s Next Level agenda to provide electricity access to rural communities, economic hubs, educational institutions and teaching hospitals as well as the entire unreached and underserved areas of the country.

    He said: “I am most humbled that such a laudable project was deployed in Benue State at this time, to provide a conducive and safe learning environment for the thousands of young people who are currently undergoing academic training, preparatory to taking over various sectors of society, towards the growth and development of the state.”

    However, he stressed that the benefits of clean, safe and reliable electricity will improve the quality of research, technical capacity, and improve the productivity of the entire management, staff and students of the institution. Ortom said: “Thus, the days of unreliable power supply within the university has come to an end and the students can heave a sigh of relief knowing that their campus environment is illuminated and that they can increase their study time as they prepare for the real world.”