Category: Special Report

The Agricultural Credit Guarantee Scheme (ACGSF) Amendment Act assented to by President Muhammadu Buhari increased the share capital of the fund from N3 billion to N50 billion. The new scheme is in line with Central Bank of Nigeria’s (CBN’s) move to increase lending to the agricultural sector and support increased food production. The fund provides a guarantee for bank loans for agriculture and boost lending to agriculture. Financing of production farm machinery, production equipment, processing, storage and transportation are now allowed under the amended ACGSF Act, writes COLLINS NWEZE.

Before now, farmers were the least that banks would consider for loans. Such loans, if approved, were deemed lost from the outset, especially when advanced to smallholder farmers.

Today, the story is different. Both the smallholder farmers and established ones can take a shot at bank loans. Also, lenders, which previously saw agricultural loans as high risk, are now seeing the potential of how much a well-priced credit can add to their balance sheets and profitability. The amendment of the Agricultural Credit Guarantee Scheme (ACGSF) Bill raised share capital of the fund from N3 billion to N50 billion, a step that allowed more farmers to access agricultural loans.

A breakdown of the ACGSF Amendment Act 2019 shows that the sharing ratio is Federal Ministry of Finance (60 per cent) and Central Bank of Nigeria (40 per cent). The maximum for a non-collaterised loan under the scheme is now N100,000.00, the maximum amount for collaterised loan granted to individuals, cooperative societies and corporate entities is now N50 million, up from N10 million.

Also, complete Agricultural Value Chain financing is now allowed as well as the financing of production farm machinery, production equipment, processing, storage and transportation.

This Act amends the ACGS Fund Act Cpa. A11, Laws of the Federation Nigeria 2004, to enhance capital base, expand coverage of the scheme, increase the size of the loanable fund, increase membership and give more powers to the board.

Further details of the ACGSF showed that the amended section 2 of the Principal Act enacted by the National Assembly of the Federal Republic of Nigeria, now requires that the Minister shall appoint a chairman, a representative of the Nigerian farmers, a representative of the Federal Ministry of Finance, and a representative of the Federal Ministry of Agriculture. The fund was increased from N100 million to N50 billion, which may be increased by such amount the Board may determine and that amount shall be contributed in a proportion as the board may prescribe. President Buhari signed and certified the ACGSF Bill into law.

CBN Governor Godwin Emefiele identified agriculture financing as the way forward for the economy. He explained that part of its developmental role, the CBN has in collaboration with the Federal Government established the ACGSF for promoting agricultural enterprises in Nigeria.

The fund, he added, will complement other special initiatives of the apex bank in providing concessionary funding for agriculture.

According to Emefiele, “there was no need to allocate scarce forex to rice importers when vast amounts of paddy rice of comparable quality produced by poor hard-working local farmers across the rice belts of Nigeria are wasted, and farmers are falling deeper into poverty at a time the government exports their jobs and income to rice-producing in overseas countries.

“A few decades ago, Nigeria was one of the world’s largest producers of palm oil but, today, we import nearly 600,000 metric tonnes while Indonesia and Malaysia combine to export over 90 per cent of global demand.

“Under these circumstances, I believe it is appropriate, and in fact, expected, that the CBN contributes to protecting the jobs and incomes of local farmers, using some of the same principles Western economies use to justify the protection of their farmers through huge subsidies.”

Noting that agriculture remained the largest employer of labour, the CBN chief said the sector contributes about 24.2 per cent of the country’s Gross Domestic Product (GDP).

Emefiele described as unacceptable that the greatest share of the demand for forex goes directly to importing agricultural produce.

He said: “So, the CBN has both a direct and indirect rationale to ensure that this sector is revived in a significant way. In this regard, we are gratified that the CBN’s Anchor Borrowers’ Programme (ABP), together with other initiatives like the CACS and Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), are proving to be successful in several states.”

He explained that in Kebbi State alone, over 78,000 smallholder farmers cultivate about 100,000 hectares of rice farms. It is expected that over one million metric tonnes of rice will be produced in that state alone this year.

Bankers’ Committee and Agric Financing

The CBN and commercial banks, under the aegis of the Bankers’ Committee, restated their commitment to expanding bank lending in agro-business to discourage importation of goods that can be produced locally.

The bankers also stated their resolve to explore large corporates as anchors to lend to participants across the value chain to improve the capacity of Nigeria’s agro-businesses to create sustainable jobs and inclusive growth.

The bankers affirmed their commitment to financial deepening of the economy, improving financial access to key sectors of the economy, innovative solutions for the critical finance of generation, provide finance for small and medium enterprises, among others.

“We note that four basic commodities that are consumed by Nigerians – rice, wheat, fish and sugar jointly account for a significant amount of the country’s annual import bill. We are convinced that the nation can produce these consumables in required amounts to meet our domestic consumption needs. With its attendant impact on Gross Domestic Product (GDP) and job creation, agriculture remains a critical focus sector of the financial system,” the Committee added.

Stakeholders speak on agricultural potential in the economy

The Group Chief Executive Officer (GCEO) of Ecobank Transnational Incorporated (ETI), Ade Ayeyemi, has said Nigeria can feed Africa’s estimated 1.2 billion people if it harnesses the gains of the agricultural value chain.

According to him, success in Nigeria’s agricultural sector means the reduction in the demand for foreign exchange to import food items into the country and the development of the agribusiness value-chain with a resultant effect in the creation of a new breed of entrepreneurs as well as jobs for the teeming population.

Ayeyemi spoke at the Ecobank Agribusiness Summit in Lagos. The summit had its theme “Unlocking Productivity and Investment Opportunities Across Nigeria’s Agribusiness Value Chain”

Also speaking, Minister of Agriculture and Rural Development, Mohammed Nanono affirmed that the administration of President Mohammadu Buhari is committed to finding a lasting solution to issues bothering on food security affecting the country.

He stressed on the need for viable synergy and collaboration between relevant stakeholders in the agricultural sector, to further promote its contribution to the Gross Domestic Products (GDP) of the country.

“Nigeria’s potentials and prospects make the agricultural sector a pilot for economic stabilisation, diversification and growth in the country. Indeed, the sector is a major contributor to the national Gross Domestic Product (GDP), contributing about 27 per cent to the GDP and the biggest in job creation in the non-oil sector”.

Nanono disclosed that the Federal Government has also earmarked N600 billion to enhance farmer access to agricultural financing in the country. He said that about 2.4 million farmers were targeted to benefit from the interest-free facility, designed to encourage the application of modern technologies in rice and cash crop cultivation.

Nanono said the initiative would support farmers to achieve improved productivity, enhance self-sufficiency and food security in the country. He said: “We have commenced farmer registration exercise to capture their information, number of farmlands and locations.

“Also, the beneficiaries will be monitor to ensure effective utilisation of the facility, and mobilise participation in subsequent programmes.”

ACGSF’s Linkage Banking Initiative

Through the ACGSF Self-Help Group Linkage programme, farmers are encouraged to form themselves into groups of between five and 15 based on common purpose (informal and informal). The groups are encouraged to undertake regular savings with a partner bank of their choice. After operating such savings for six months, they could then apply to the partner bank for a loan. The amount saved provides part cash security for loans to saving groups.

Bank loans to the groups are normally in multiples of the balance in their savings account at the time of the application for the loan. The group savings security would not be drawn on until the loans are fully repaid. The aim of the Self-Help Group Linkage Banking is to inculcate the culture of savings and banking habit in-group members as well enable them to build up resources for financing their farm projects without recourse to bank borrowing on the long run.

Understanding the ACGSF Amendment Bill

The ACGSF Amendment Bill, sponsored by Senator Andy Uba, a representing Anambra South senatorial district, was targeted at improving the prospects of commercial agriculture as an integral contributor to the Nigerian economy. This it seeks to do by expanding the capacity to guarantee credit facilities extended to Nigerian farmers, and making the regulation of such finances in consonance with international best practices.

Furthermore, the new Act will facilitate better management of agricultural funds, enhance greater transparency, promote export business and safeguard the delivery of dividends to Nigerian farmers.

Uba disclosed that the law would drive the course of Nigeria’s economic diversification.

Analysts said that with the signing of the ACGSF bill into law, the Federal Government is reiterating its commitment towards repositioning the agricultural sector and enhancing its overall contributions to the government’s overall earnings.

He was a terror, but his killing on a day he was to embrace peace has raised eyebrows. The late Terwase Akwaza, popular known as Gana, graduated from being a bully to freedom fighter and ultimately a gang leader with a wide territory, write UJA EMMANUEL and SANNI ONOGU

Terwase Akwaza, popular known as Gana in mind, did not see death coming. But, on Tuesday evening, troops of Operation Whirl Stroke waylaid his convoy on Katsina-Ala- Gboko federal highway and shot him dead.

Born 40 years ago in Mbayongo, Shitile Kpav, Katsina-Ala Local Government Area in Benue State, Gana dropped out of primary school. He could hardly speak good English.

As a child, he lived in his home town, Gbishe. From tormenting and bullying other children, he grew into a militant and from his Mbayongo clan, the late Gana spread his tentacles to three local government areas: Ukum, Katsina-Ala and Logo.

Initially, he was believed to have a mystical power given to him by his kinsmen to defend his community against external aggression or invaders. He defended his people against herdsmen. His community shared boundaries with Taraba State and the neighbours were always taking up arms against each other. The late Gana later became big-time militant and recruited boys in the three local government area.

He acquired sophisticated weapons and his gang members were said to have been involved in criminal activities like kidnapping, murder and armed robberies.

His gang members made life unbearable for his people and those who plied the federal highway between Katsina Ala – Takum and Katsina-Ala – Zakibiam – Wukari in Taraba.

Ukum, Logo and Katsina-Ala local government areas that made up Sankera are known for massive yam production, but the activities of Gana led to the yam markets in these areas being deserted. His group sacked markets officials and assumed control, collecting levies and taxes in the markets.

Igbo traders relocated, motorist avoided roads in Sankera, schools, hospitals and business were grounded.

Things worsened when some of his gang members parted way with him and formed their terror group.

The late Gana and his gang were fingered in every criminal activity in the Sankera axis.

When he was declared wanted, nobody was able to arrest him. Many attributed this to his supernatural power to appear and disappear. The police, soldiers and Air force attempted to apprehend him but failed.

In 2015, Governor Samuel Ortom granted him amnesty and he surrendered massive arms and ammunition alongside his gang members who denounced criminality.

The late Gana was given a contract by the Board of Internal Revenue Service (BIRS) for him to eke out a livelihood.

Few months after he repented, he was accused of killing Mr Denen Iguana, the governor’s aide on security. Attempts to bring him to answer questions on the killing of Iguana failed. He parted ways with Ortom and returned to the trenches. A 10 million bounty was placed on his head for anyone with information that may lead to his arrest.

Last week, Ortom visited Ukum and Katsina-Ala local government areas to inaugurate projects. During the visit, elders and stakeholders in Sankera axis pleaded with Ortom to grant the late Gana and his gang members another amnesty which he obliged.

uesday was set for the most          wanted criminal gang leader to surrender at the Government House, Makurdi. He and his gang members assembled at the Katsina-Ala township stadium and were being conveyed to Makurdi before soldiers mounted a roadblock at a place called Maseje between Ameladu and Yandev roundabout in Gboko Local Government Area and whisked him away. He was later killed.

Ortom yesterday expressed shock the way Gana was killed by soldiers. He said he was waiting for an explanation from the Commander of 4 Special forces Command in Doma, Nassarawa State, Maj.-Gen. Moundhey

Gadzama Ali before he would know what to say.

Former Governor of Benue State and Senator representing Benue North East, Gabriel Suswam, yesterday condemned the late Gana’s killing.

Suswam, in a statement in Abuja, called for a Judicial Commission of Inquiry to unravel the circumstances that led to the death of Gana.

He urged the people of the state to remain calm saying this is a “time to heal and not war.”

Suswam, who is the Chairman Senate Committee on Power, in his statement titled: “A Time to Heal” said: “At times of uncertainties and crisis, it is incumbent on statesmen to stand out and douse situations especially those that threaten the good order of society.

“The role of elders at times like this is not to inflame passions or fan the embers of hate but to heal all wounds. We are at such a critical juncture in our existence in Benue State.

“The events of September 8, 2020 in my senatorial district where repentant criminals who had surrendered after extensive persuasions were singled out and killed extra-judicially leaves a sour taste and has opened a gaping wound that requires all efforts to heal.

t is no secret that my senatorial district has been traumatised and the people terrorised by activities of criminal gangs led by Mr. Terwase Agwaza alias Gana, for many years.

“The consequences of this endless terrorism have been a steady decline of economic and social activities leaving a once prosperous people pauperised.

“Markets no longer attract traders, schools are closed and farmlands abandoned. Politics in the area has become a war with uncontrolled proliferation of dangerous weapons.

“No responsible leader will idly stand by and watch his community become a theatre of war and a gangster’s paradise.

“It is with this solution mindset that traditional rulers, clergymen and elders of the area decided to utilise means of constructive engagement and dialogue to ensure that youths of the area do not become tools for the destruction of that society.

“The Benue State government along with the security agencies have long desired for a return to normalcy, peace, prosperity and security of the area.

“We have all been in agreement that the continuous existence and activities of gangs are an ill wind that blows no one any good.

“That is why some leaders were mandated to reach out to these outlaws to persuade them to drop their arms and channel their energies towards the rebuilding of our thoroughly battered community.

“We were all excited to see the dreaded Gana come out of hiding to the warm embrace of our traditional rulers, clergy and political leaders at a public function at the Akume Atongo Stadium in Katsina-Ala.

“Our joy was multiplied when we saw him along with his militia surrender arms and publicity renounce a life of crime.

“Our revered King extracted a pledge from him never to turn his kingdom into a wasteland.

“Those present at this forum heaved a great sigh of relief with the thought that finally, a life full of uncertainty has come to an end.

“I was totally dumbfounded to learn that while Gana was on his way to Makurdi, the state capital, to present himself to the governor who was waiting, his long convoy that included political leaders, traditional rulers, clergymen and security agencies was ambushed by allegedly armed soldiers and he isolated and taken away.

“In the midst of the confusion, pictures began to circulate on social media of the bullet-ridden body of Gana with a rifle callously placed on his side.

hile I have been consistent in condemning the reign of terror he unleashed on his community, I cannot in good conscience as a lawyer of over three decades and a senior parliamentarian accept cold-blooded extra-judicial murder of an unarmed person as a solution to our security problems.

he lessons of the Boko Haram escalation after a similar murder of its leader are still here with us.

“If this method is accepted as a norm in our country, there will be no need for laws and courts.

“We stand to benefit more by subjecting suspects to due process of the law. Information extracted from a living Gana would have helped security agents get to the root of activities of criminals.

“By this Gestapo style execution, we have missed an opportunity to learn vital lessons about the structure of crime in the area.

“Even war criminals captured alive are entitled to certain rights. The claim that Gana was killed in a gunfight needs further explanation because those who accompanied him and who watched him being taken away, including his Local Government Chairman, do not believe he was in possession of any arms.

“An independent judicial commission of inquiry will unravel facts of the matter to serve as lessons for the future.

“It is unfortunate that this event has escalated tensions in the area and that is why I am using this opportunity to plead with all elders and community leaders to rein in their youths and avoid deterioration of an already bad situation.

“This is a time to heal and not war. This is a time to hold each other to our common values as human beings.

“This is a time to rebuild our fractured society. This is a time to rally together as brothers and say Enough is Enough.”

There is tension in Sankera axis as many are afraid that his gang members may avenge his brutal killings.

The Federal Government may have fallen into a booby trap over the award of Customs modernisation project, with a risk of paying $2.5b as litigation fees. MUYIWA LUCAS examines a report by the House of Representatives Joint Committee on Finance, Customs and Excise and Public Petitions.

The Federal Government is facing the risk of paying $2.5b as litigation fees if it goes ahead to implement the $3.1m Customs Modernisation contract .

The Federal Government may have ignored a piece of advice by “the Solicitor General of the Federation to the Minister of Finance urging it to consider the strength and weakness as well as litigation fees of $2.5billion and lengthy time frame of embarking on this case and how that may affect the ultimate goal of government for revenue generation

“On the other hand, the Presidency through the office of the Chief of Staff to the President issued a letter dated 17th September, 2019 engaging the consortium titled Presidential Initiative on Customs Modernisation  to carry out the same project awarded to Messrs Adani Mega Systems Limited/ Webb Fontaine seven months after they were engaged by CBN- CISS

“It is the opinion of the Committee that the Presidency was not duly informed of the existing contract agreement and litigations filed by Messrs Adani Mega Systems Limited/ Webb Fontaine.”

The report revealed that Federal Government acted in breach of an earlier contract award terms with Messrs Adani Mega Systems Limited/ Webb Fontaine consortium that must have responded to a June 20, 2016 advert.

Also revealed in the report is the ongoing litigation instituted by the consortium earlier given the job in a suit challenging the cancellation. The suit which was filed in December 2018 at the Federal High Court Abuja with suit No FHC/ABJ/CS/850/2017 will likely stall the recent award of the contract to another consortium.

The House of Representatives Joint Committee report which was jointly signed by James Abiodun Faleke, Chairman Finance; Jerry Aguigbo, Chairman Public Petitions; Yuguda Hassan Kila, Chairman Customs; Lawali Ibrahim, Clerk to Committee on Finance and Aliyu Maccido, Clerk to Committee on Customs revealed that the controversial cancellation and re-award of the contract took place during the time of the late Chief of staff to President Muhammadu Buhari, Mallam Abba-Kyari

The Federal Executive Council (FEC) recently announced the approval of $3.1 billion for the ‘complete’ automation of the Nigerian Custom Service (NCS).

“The main objective of this project is to completely automate every aspect of the customs business and to institutionalise the use of smart and emerging technologies that will enhanced the statutory function of the Nigerian Customs Service in the areas of revenue generation as well as trade facilitation and enhancement of security,” Minister of Finance and Budget Planning Zainab Ahmed told journalists shortly after FEC meeting in Abuja.

Ms Ahmed said the project, to be delivered by Messrs E. Customs HC Project Limited, would be financed by sponsors “who will in return look over the investment in the concessionary period of 20 years” while it has the potentials to generate up to $176 billion for the country.

“So this investment of $3.1 billion is broken down into capital investment of $1.2 million which will be done in three phases over 36 months by these investors and $1.1 million is our projection of the operational cost over the 20-year period of the implementation of this project.

Maritime lawyer Emeka Akabogu faulted the award as lacking in legal backing and transparency.

He said: “When the Federal Executive Council of the country has given its seal to a project such as this, I would assume that it has been given a 360-degree consideration, particularly relating to viability and value for money.

“There is no doubt that the country needs end-to-end customs modernisation, but it must be guided by the very reason for which it is needed, which is transparency and trade facilitation.

“Transparency will determine if the scope of the project justifies the investment. I certainly feel that the stated cost is not just high, it is mind-boggling. Automation will certainly involve new technology and innovation, but it is not rocket science. The project being contemplated will probably incorporate complete automation of data submission and verification processes for cargo clearance in a formalities single window.

“For increased assurance, it may be carried on block chain technology and even involve deployment of smart contracts. I absolutely subscribe to it as it will resolve the current issues which bedevil import clearance efficiency, including extortion by customs and under-declaration by importers. But it will not cost $3.1bn and does not need a 20-year concession.”

He noted that the more important element, which no reference was made to, is ensuring that the legal framework to drive the initiative is in place.

“Even though Nigeria is signatory to the Trade Facilitation Agreement, it is not implementing most of its highlight provisions which could greatly alleviate the challenges in the immediate term and which don’t need expenditure of ridiculous sums to achieve.

“One of the reasons is that the TFA provisions have not been given legal recognition in the CEMA. A draft of a new CEMA incorporating provision to facilitate compliance with the TFA was developed some years ago, but was not conclusively taken through to enactment.

“Any investment in customs modernisation without starting from the legal framework and policy quick-wins will be cosmetic and self-defeating. I advise we start from that point and from there define the technology requirements to facilitate compliance which will be the basis for a procurement such as has been done. We have put the cart before the horse,” he added.

On October 10, last year, House Committee on Public Petitions Chairman Jerry Alagbaoso moved a motion that the deal be investigated. He had submitted that there are some foreign companies who are very eager to sponsor, finance and provide technical services to what they call the modernisation of Customs, albeit, without recourse to the National Assembly.

“My motion is on the need to investigate the curious concession proposed arrangement between the consortium Bionica Technologies West Africa Limited, who are the sponsors; Bergan Security Consultants and Suppliers, who are co-sponsors, African Finance Corporation, who are lead financiers and Nigeria Customs Service and Infrastructure Concession Regulatory Commission (ICRC) for the customs modernisation project.”

The African Finance Corporation (AFC), which is to be the financier of the project, according to Alagbaoso, will result in a 20-year concession and frittering away of funds in the CISS account domiciled with the Central Bank of Nigeria ( CBN).

Alagbaoso added that in the 1990s there were efforts to modernise the customs by the United Nations Conference on Trade and Development (UNCTAD), which pioneered the process of Automated Systems for Customs Data (ASYCUDA), leading to the installation of ASYCUDA++ and training of customs officers for three years. Besides, he said the House was aware of various customs modernisation projects in the past.

“The House is also aware that the Federal Government agreed to engage former pre-shipment companies for valuation and classification of goods, hence some service providers namely Webbfontaine, Cotecna, SGS and Globalscan were engaged for that purpose.

“This contract was to last for seven years, from 2005 to 2012 when the service providers handed over to Nigeria Customs Service. By 2011, one could say the positive effects of this included a competent and committed workforce for Nigeria Customs Service, personnel understanding of the new process and benefits to stakeholders.

“It resulted in the collection of proper revenue due, elimination of corruption and other benefits. The House notes that with these put in place, there exists a one-stop-shop which allows all trade transactions to be conducted through a single system domiciled with the customs

“For example, all other government agencies like NAFDAC, SON and the rest have dissolved into a single platform with the Nigeria Customs Service.

“In 2011 there was an illegal concession between the Federal Ministry of Finance and a company with inadequate capital base called Single Window System and Technologies, signed in secrecy during the government transition period and this responsible house of representatives had a public hearing and stopped it to save Nigeria billions of Naira Vide the votes of Wednesday, 13 July 2011.

“In 2017 another move for customs modernisation was made by the Technical Committee on the Comprehensive Import Supervision Scheme, purported to be acting on behalf of the Federal Government called Adani Systems Nigeria Limited to modernise, maintain, develop the scanning of goods in the country in line with the pre-shipment inspection act for a period of 25 years.

“Again the attention of Controller General of Nigeria Customs Service was drawn to this and the concession was stopped.

“Curious that in September 2019, another concession, which will last for 20 years is being suggested to Nigeria Customs Service, Infrastructure Concession Regulatory Commission, Federal Ministry of Finance, Federal Ministry of Budget and Planning, Federal Ministry of Justice and this agreement is for pro-rata sharing of one per cent Comprehensive Import Supervision Scheme and a $300m investment.

“Worried that billions of Naira will be frittered away from the account of the one per cent Comprehensive Import Supervision Scheme with the Central Bank of Nigeria, regarding the cost of this latest customs modernisation by different parties involved.

“Further worried that there is no difference in substance,  scope and the structure between the failed concession attempts of 2011, 2017 and this 2019.

“There is already a national single window platform in the Nigeria Customs Service and officers of the service is performing beyond expectations, collecting duties in billions of the naira on a daily basis.

“The Federal Government is being misled by advice on this one per cent Comprehensive Import Supervision Scheme, which has accumulated in billions of naira in the Central Bank of Nigeria.

“A motion for CBN to account for this money was moved in the 8th Assembly, the House, therefore, resolved to mandate the committee on finance, customs, public petitions, committee on agreements to expose the foreign and local collaborators involved in this project either as sponsors, co-sponsors, financiers and others.

“Mandate the CBN to account for the funds between 2012 and now and urge all parties involved to maintain status quo until the outcome of the public hearing and report back in three weeks

“Three or four foreign companies are bringing their selfishness into our national agenda.  The fact that it failed in 2011, 2017 there is no way it cannot fail in 2019,” Alagbaoso said.

With experts expressing the fear that obesity could undermine 100 per cent effectiveness of likely COVID-19 vaccines, MOSES EMORINKEN reports that such individuals should be part of the phase three vaccine trials to ensure that the dose being recommended will work well in their systems.

Pandemics are not new occurrences. Throughout history, many diseases have broken out, even as they have ravaged humanity, crippled economies, altering social interactions, and sometimes threatening to end an entire civilisation.

However, man has risen to the challenge posed by some of these diseases, by developing either a cure or vaccine to inoculate the public from their deadly claws.

Coronavirus, although not a new entrant in the elite league of diseases has shot a new strain of virus called SARS-CoV-2 into prominence and was first reported to the World Health Organisation (WHO) on December 31, 2019, in Wuhan, China.

Since then, many countries have been greeted to a rude awakening of the COVID-19 disease, especially the rate of fatality–such as never been witnessed in the history of pandemics.

Schools, malls, cinemas, relaxation centres, religious institutions, to mention but a few were shut down. It was no longer business as usual.

Lockdown, shutdown, testing, sanitising, symptomatic, asymptomatic, isolation, quarantine, and so on became the popular buzzwords around the world.

The Nigeria Centre for Disease Control (NCDC), being the apex agency in Nigeria saddled with the responsibility of maintaining the public health sanity and curtailing unforeseen epidemic spread in the country consistently echoes that until a vaccine for COVID-19 is developed and circulated, Nigeria’s only hope remains strict adherence to non-pharmaceutical safety measures such as maintaining corporeal distance, avoiding large gatherings, wearing of face masks, and practising good hand hygiene.

As at the time of this report, in Nigeria, at least 50,000 people had been infected and nearly 1,000 had died. Therefore, it seems salvation hinges on a vaccine.

However, one annoying epidemic that not only pre-dates COVID-19 but has been known to undermine the effectiveness of vaccines generally developed, is obesity.

Scientists are in agreement that vaccines developed to protect the public from known diseases such as hepatitis B, rabies, influenza, and tetanus, have been less effective in obese and overweight individuals. They, therefore, are not so optimistic that when a vaccine for COVID-19 is developed, it would be any different.

“Obesity can undermine the 100 per cent effectiveness of likely COVID-19 vaccines,” Prof. Alash’le Abimiku, the Executive Director, International Research Centre of Excellence (IRCE) – an arm of the Institute of Human Virology Nigeria (IHVN) said.

“It is possible and that is why it is important to include such individuals in at least the phase three part of the vaccine trials to ensure that the dose being recommended will work well in these individuals.

“Just as we reduce doses of drugs and vaccines for children; it is possible that the dose or the frequency of vaccination may need to be increased for obese individuals.

“Our immune system works best when we are healthy. So, even for those that are not obese, the ability of their body to mount up a good immune response is optimised or increased when they are healthy: well-rested, exercise and eat well, stay hydrated and so on.

“During clinical trials when the vaccine is tested, it is usually done at different doses to find out the dose that works best in the normal individual. The dose may not be enough for the obese person due to the additional mass. So, it is necessary to include such individuals in clinical trials to ensure that the vaccine dose is adequate also for them as a vaccine should cover all individuals for all of us to be safe.”

X-raying Nigeria’s BMI

Nigeria being the giant of Africa must thread with caution, especially when it concerns its weight – body mass index (BMI). An overweight giant, they say, becomes a burden to itself.

The WHO defines obesity as a body mass index (BMI) of 30 kg/m2 or more. Also, a 2016 data from WHO showed that 26 per cent of Nigerian adults were either obese or overweight.

Children are not left out, as a report by the United Nations Children’s Fund (UNICEF), revealed that in Nigeria, 49 per cent of children below five years of age is not growing well (they are stunted, wasted or overweight).

The rate of obesity in the country, although not as alarming as it is in some developed countries, such as the United States of America, however, demands some level of attention.

Health experts say it seems as though, as the fight against undernutrition is intensified, more and more people, especially women and children, are becoming “over-nourished.”

In a chat with The Nation, the Director of Nutrition, Federal Ministry of Health, Dr Chris Isokpunwu said: “The trend we see in women is that the rate of obesity and overweight is increasing as undernutrition is decreasing. We are beginning to find a shift in women who are overweight and obese. It is as if more and more women are getting out of under-nutrition, while some more are becoming ‘over-nourished.’”

Continuing, he said: “Studies have shown that the effectiveness of vaccines is lower among obese people compared to the general population. Obesity, in this case, means people with a body mass index of 30 and above.

“There are a lot of speculations around it and one of them is that the adipose tissues (fatty tissue) tend to attack the antigens and so make them unavailable for the development of antibodies.

“There is also the other side to it because most vaccines are given intramuscularly, that is, into the muscle or under the skin. It may actually be deposited in the adipose because of the thickness of the skin and the fact that the needle may not get deep down into the muscle. So, they will not even get into the system for antibody development.

“People with comorbidities were most of the casualties around the world, even in Nigeria. Comorbidities such as hypertension and diabetes, among others, are higher among obese people. Therefore, that is already among the high risk that we have.

“Another thing is that obesity itself is now classified as a disease, and it is a chronic one and it is already a predisposing factor.”

How obesity weakens the immune syste

According to the Head of Department of Dietetics, Federal Medical Centre, Jabi, Abuja, Dr. Cosmas Ugwu, in respect to obesity and COVI-19, all of us should know that obesity has a very big impact in our lives as far as health is concerned.

“The WHO reported that 60 per cent of obese people died from COVID-19.

“Towing the line of biochemistry, obesity deranges a lot of metabolism in the system. There is a particular hormone called leptin, which controls a lot of metabolisms, and reduces the function of antibodies in the system. A situation whereby the immune system is diminished, the system cannot work and there is no drug that will be able to handle it.

“Under that condition, at times, that leptin may become resistant and most of the hormones such as the cytokines – which is the major chemical messenger in the system will be giving the wrong information. Even the drugs the patient will use will not be getting to the root of the problem. In that case, you now know that obesity will have a very big adverse effect as far as COVID-19 is concerned.

“Many of those that are obese also have many chronic diseases already, of which we know that obesity is the major vector that disseminates diseases such as diabetes, high blood pressure, cardiovascular diseases, cancer, kidney problems and stroke.

“All these non-communicable diseases and metabolic syndromes which are already on the ground will compound the issue.

“In the same manner, obesity reduces the immune system. Therefore, diseases such as COVID-19 that are infectious will have their way, and now undermine and cripple the entire system.”

Ugwu added: “If a vaccine is developed, and the whole system is not working properly, or some of all the hormones are not functioning well, then they cannot coordinate. The activities of those hormones will still be deranged. There will be no bearing and the whole thing will collapse.

“Although plus or minus, there may be some positivity, but what we should fight first is reducing obesity, which is a major culprit.

“Between the range of between 1.9 and two billion people in the world are obese, and Nigeria as we are, we don’t have statistics so much. But all things being equal, we know that not less than 30 to 40 per cent of Nigerians are obese, including children and adults.”

Charting the way forward

Obese people with a body mass index of 30 or more, known as morbid obesity, are a risk factor for COVID-19.

According to a study carried out in China, and published by the National Centre for Biotechnology Information, heavier patients afflicted with COVID-19 were more likely to die than leaner ones.

“My advice is for people to eat right and ensure that there are adequate nutrients in foods consumed. People should eat more fruits and vegetables; the reason being that it helps to build immunity, strengthen immune capacity and of course, people need that immunity to be able to resist the effects of COVID-19 infection.

“Eating right also ensures that one’s weight is appropriately distributed. People should cut down on calories and engage in an active lifestyle, and also be involved in physical exercises. Exercises don’t have to mean going to the gym or carrying weight. One will be surprised how effective dancing for 30 minutes every day can be on one’s weight,” Isokpunwu said.

Ugwu said: “The only way out is for us to go back to nature by finding our bearing to the common foods that are within reach. Instead of going for all the luxurious foods, we buy from supermarkets, the natural foods in our homes can solve our problems. All refined foods are the major causes of obesity.

“If you watch very closely, most of these refined foods and bottling companies that are producing juices and drinks are the major contributors of this obesity. Many people are literally taking a lot of empty calories.

“Some obese people may even come to the hospital to reduce the level of weight and obesity, but there are still some other hidden factors biochemically that may hamper that if they don’t meet experts or good dietitians. In fact, many people and even hospitals do not know the importance of dietitians.

“Even without COVID-19 vaccines, obese individuals should lose weight and exercise and sleep well for their own general wellness. Our immune system works best when we are healthy. So, these individuals should do what they know they must do – that is, lose weight, exercise, eat nutritious food, sleep well, stay hydrated, and reduce stress,” Prof. Abimiku added.

While the federal government may be commended for bringing down the rate of cross border activities through its border closure in the last one year, the average businessman and communities in the affected border towns are continually praying for the lifting of the closure due to its attendant hardship on socio-economic activities at the border settlements, report, MUYIWA LUCAS, ADAMU SULEIMAN, YINKA ADENIRAN and AUGUSTINE OKEZIE, after a tour of the country’s four border posts affected by the closure

NOTHING could have been more devastating to Kenneth Agwu, a middle-aged Nigerian trader who plied his trade between Nigeria and Benin republic. For Agwu, the event of August 20, 2019, has remained a game-changer for his business and continued survival.

Agwu, who traded in second-hand clothing materials, was on his way from his business trip to Cotonou, Benin Republic, only to be refused entry into Nigeria at the Seme Border. Reason: the Nigerian border with the Benin Republic and three others out of the country’s six geo-political zones had just been closed to trade movement.

The closure, which was announced under the codename: Ex-Swift Response, was announced by the Comptroller General of Customs, Hameed Ali, a retired army colonel. The move was part of efforts to tackle smuggling and associated corruption, including spurring the domestic agricultural industry and combating the fight against crime and insurgency.

Counting the gains

For Minister of Information and Culture Lai Mohammed, the closed border has drastically reduced incidents of cattle rustling, kidnapping, armed banditry and other forms of insecurity in the Northwest.

“The drill has drastically curtailed the inflow of arms and ammunition. Bandits and terrorists are finding it hard to procure arms and ammunition, hence we have recorded a reduction in cases of cattle rustling, kidnapping and armed banditry, which were predominant in the Northwest,” he said, while leading a Federal Government delegation on a visit to Sector Four (Northwest) of the Border Drill, last December.

That is not all. He also disclosed that the smuggling of petroleum products, which had also been prominent through the borders in the Northwest, had been curtailed due to the closure of filling stations along the border.

The Nigeria Customs Service (NCS) has also said the closed borders have been a blessing to the Service and the country at large. For instance, within two months of commencement of the exercise, the Joint Border Operation Drill, Sector 3, said it has recorded gains by improving security and economy of the country in less than two months of the inauguration. Sector three of the task force covers Benue, Kogi, Kwara and Niger states of Northcentral.

The customs also claimed huge success from the border closure, announcing daily revenue of N7 billion revenue from a previous N4.5 billion daily revenue.

The President of National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, thinks that while the border closure is against international treaties and protocols Nigeria entered into willingly, the action has proved to be the most potent approach to tackling the several years of massive smuggling of goods from Nigeria’s neighbouring countries into Nigeria and smuggling of Nigerian fuel to those countries.

Low business activities

Visits by The Nation to the various border communities affected by the closure reveal that the communities are now a mere shadow of their former selves. Across the four border towns closed, commercial activities are at its lowest ebb- a sharp contrast from what obtained a year ago. Small and middle-level businesses and owners are still feeling the heat caused by the closure.

For instance, activities at the popular Illela border, which separates Nigeria and the neighbouring Niger Republic in the eastern axis of Sokoto State, have not been the same since the closure of borders a year ago. The effect is felt more with those dealing in local ‘household’ items. At the Illela International Market, commercial activities have become a shadow of its former self. The peak period of the market, which used to be on Sund

ays when traders from both the Niger Republic and Sokoto State converge for business activities, is no longer the same- a direct effect of the border closure.

Jibia Traders who ply Katsina –Jibia road for their businesses lament the huge extortion of money from them, which they claim at times run as high as N25,000 per vehicle, by men of Nigerian Customs service stationed at the various checking points on the Jibia-Katsina road.

The Leader of the traders Association and former President of the National Association of Katsina State Students, Comrade Nasiru Almustapha Danye Jibia, while answering questions on the impact of the b

order closure on their economic lives, said the harassment of the Nigerian Customs Service personnel operating along Katsina- Jibia road have shut up the cost of operating business in the area. He said businessmen and women in the town are facing hurdles after hurdles from the Customs officers stationed on the road.

He said: “Any businessman taking his goods to Jibia from Katsina would tell you that he has to part with a huge sum of money because the Customs officers would unnecessarily ask for a bribe before they allow you to pass with the goods.

“We don’t know if there has been any new law that bans doing business in our town because it’s a border town but even if there is a law, the people should have been informed.”

Increased smuggling

While strict compliance appears to reign at the main border posts, businesses still thrive at some bush paths and sundry illegal entry points, w

here unscrupulous security operatives work hand-in-hand with smugglers to bring in contraband goods into the country.

Although official border posts are shutdown, nothing seems to have stopped as movements of goods and services through illegal routes created by smugglers in collaboration with some security operatives have continued to thrive.

For instance, when The Nation visited the Katsina State border with the Niger Republic, smuggling activities are still going on though through illegal routes every day. An Immigration official told The Nation that there are over 1000 illegal routes in the state, with more created each day. Goods worth millions of naira are smuggled into and outside Katsina State daily.

There are four recognised border posts with the Niger Republic – Magama in Jibia, Kongolom in Maiadua, Babban Mutum in Baure and Dankama in Kaita local government areas of the state. Of the four, however, the busiest and crime-prone is the Magama – Jibia. Commuters and smugglers use several sandy roads passing through rocks and farmlands to ferry people and contraband items across the border.

A visit to Kongolom and Magama Jibia borders by one of our correspondent showed that though the borders have been barricaded, with officials turning back vehicles and motorcycles, at the border in Magama Jibia, people and vehicles were moving unhindered to access the neighbouring Faru and Dan Isa towns in the Niger Republic. Settlements like Bayan Bariki, Government Day Secondary School, Magama, Dan Arau, Rainin Wayo, Alele, Korama, Gadirge, Sabon Garin Magama, Makada and Mai Dabarau, all in Jibia Local Government Area, have become common routes for smuggling activities. At Kongolom, Maiadua Local Government Area, most smugglers of rice use local routes from Maimaje, Botsotsuwa, Tsatsumburum and Yekuwa settlement, all in the Niger Republic use motorcyclists for passage.

Survival strategies

For now, with commercial activities grounded in these towns, survival has become challenging for the inhabitants. The Nation gathered that some members of the border communities are now being enlisted as informants and agents by smugglers to facilitate their illegal businesses, especially of rice.

“Things are becoming extremely difficult for impoverished Nigerians to feed. We need robust policies that can practically change the narrative to better local production of rice while the government softens alternative measure to ensure availability of the commodity,” a trader in the Seme town, Ramota Oseni, said.

A resident of Illela, who simply identified himself as Mallam Sheu, told this reporter that to survive the hardship arising from the situation, “we are forced to be involved in the smuggling business which pays more; though, it has reduced but not stopped. When the borders were not closed, things were going on smoothly without hitches. I have children and two wives that I have to feed. I can’t sit without sourcing for what to eat. It is not easy”.

In the border towns of Katsina State, the youths are also smiling to the bank daily from their illicit trading activities. Big-time smugglers and businessmen often engage youths to operate. The youths, locally known as “Rai Banza,” are paid N1, 000 to ferry a bag of rice across the border. Others get the same amount to move it from Jibia town to Katsina metropolis. They operate on motorcycles and are sometimes seen in large numbers or individually, passing through longer routes to evade Customs officers. Instead of going through the Jibia-Katsina road, they move to Batsari Local Government before linking Katsina to deliver the rice.

Security personnel, including soldiers, policemen, Customs and immigration officials, according to residents, continue to smile home with money after their operations at the 13 checkpoints from Jibia to Katsina metropolis.

A motorcyclist involved in smuggling activities said those of them engaged in the business understand the risks and dangers, though their only problem is when the security operatives refused to cooperate with them at the checkpoints.

He said: “Unless one refused to pay the bribe for each category of items or when it is time for the officials to sacrifice you as a scapegoat, they will arrest you in the name of smuggling.”

Security personnel

A source in Seme border town told The Nation that “some of the security personnel are compromised due to their familiarity with some of the smugglers. We know some of them who can easily be compromised and we bribe them to sail through. Though, we have paid agents too who inform us of the presence of security personnel on certain routes.”

Similarly, residents of Oyo border town, Saki, said the border closure has presented a huge opportunity for security operatives to line their pockets at the expense of the country’s desire to either encourage local production of rice and other commodities, as well as having bumper revenue.

In recent times, a series of clashes had erupted between suspected rice smugglers and security operatives who were accused of engaging in double-dealing with smugglers. According to sources, rather than close the border in line with government directives, the security operatives collect money from the rice dealers and allow them to bring the commodity into town, which accounts for why imported rice is still abundant in the market.

In the last couple of weeks, at least three people have died and property destroyed on account of violent clashes and reprisal attack between residents of Saki and members of the Joint Task Force attached to the region. In the most recent fracas in the area, at least two residents and one customs officer lost their lives on account of supposed border safety activities.

“The whole community is in a sombre mood as we speak. Yes, on a good day, imported rice is contraband but notwithstanding there are no serious jobs for the teeming youths in the whole region. That is the business that many people survive on. I have my first and second degree but nothing to use it for in this region. Almost all the people engaging in smuggling in Saki area are all graduates and the least of them have their NCE certificate but there is no alternative in the whole region, most of them felt that is the only business for survival,’ a source said.

Response

NCS Oyo/Osun Command’s Public Relations Officer (PRO), Mr Abiola Abdullahi-Lagos, said the command was not aware that its officers were receiving a bribe to aid smuggling.

He said “As far as we are concerned, the management is not a party to that, we do not have hand in that and we are not even in the know of such. Oyo/Osun Area Command is an enforcement area and we are trying our best to see that we enforce the law to the letter.”

He said the operatives and men of the Command remain committed to their duties of securing the borders from illegal activities.

Officials at the Sokoto Area Command of the service, which comprised Sokoto, Kebbi and Zamfara states, declined to comment on the issue.

The Public Relations Officer, Nigeria Customs Service, Katsina Command, Isah

Danbaba, refused to respond to The Nation’s enquiries, saying only the PRO, Customs Headquarters, Abuja could speak on the issues.

Rising concerns

But, despite the closure, Nigerians are worried that contraband goods still litter the country’s local markets. Besides, the humongous seizures being declared regularly by the Customs call for concern. Similarly, a Nigerien reportedly carrying a sack got trapped in a flooded canal which almost drowned him along the border coast in Gada local government area of Sokoto state. After he was rescued, the residents discovered that the sack he was carrying contained three arms, leading to an irate mob snuffing life out of the man whom they suspect to be a runner for bandits.

Can it, therefore, be said that the security reasons cited for the border closure have been achieved? The recent query by President Muhammadu Buhari to security chiefs on how terrorists in the North East get a supply of arms and ammunitions despite the closure of the nation’s borders with neighbouring countries remains a sore point in the closure.

By Kelvin Osa Okunbor, Precious Igbonwelundu and Mike Odiegwu, Port Harcourt

The Quorum Aviation Bell 206 helicopter, which crashed in Lagos on Friday, flew in from Port Harcourt to position itself for prospective hire and reward otherwise known as charter.

The chopper was flown by the late Captain Chika Prudence Ernest. The Flight Engineer was Clement Ndiok. On board with the duo was Macaulay Brownson, an aircraft fitter.

The six-seater chopper was one of the aircraft in the fleet of Quorum Aviation Limited owned by Mr Abiola Lawal.

Quorum Aviation Limited (QAL) is an Aviation and Logistics air transportation company. The company operates both Rotary (Helicopters) and Fixed Wing.

Lawal, aka Mr Boku, runs an integrated travel and destination management company.

Quorum Aviation was incorporated in 2011 as an indigenous Aviation Logistics company. The company was set up to pursue opportunities in the Rotary business primarily for oil and gas clients as well as VIP charter services.

The company was awarded the Air Operator’s Certificate (AOC) in 2018 to engage in commercial Aviation services.

‘We have valid air operators’ certificate, insurance cover’

Quorum Aviation Limited on Sunday said the helicopter had Air Operators’ Certificate (AOC) and insurance cover.

The airline, in a statement, said:  “All our certificates and approvals are current and valid as issued by the authorities following due process.”

A letter by Director, Operations and Training, NCAA, Capt. Abdullahi Maikano Sidi and dated August 2, 2020, shows that the airline’s AOC is valid till November 20, 2020.

The statement went on: “For the avoidance of doubt, Quorum Aviation Limited is a responsible corporate entity that adheres to and complies with all the rules and regulations pertaining to the aviation industry as laid-out in the Nigerian Civil Aviation Regulations (NCAR).

“The company has all the requisite certificates and approvals obtained through a very rigorous process, including inter alia an Air Operator Certificate (AOC), Certificate of Airworthiness (COA) and Insurance. All our certificates and approvals are current and valid as issued by the authorities following due process.”

Pilot breathed for two minutes after crash, says witness

One of the witnesses of Friday’s helicopter crash said the pilot, Captain Ernest Chika, breathed for about two minutes after he was pulled out of the ill-fated chopper.

Mariam Olugbile, a resident of 2, Gafari Balogun Street, who said she was one of those who pulled all three occupants from the crashed helicopter, told The Nation yesterday that Chika stopped breathing two minutes after they brought him out.

She added that the helicopter hovered for some time before crashing into the fence of 16A Salvation Road.

Olugbile said people were initially scared to move close to it for fear of explosion.

“I was the one who called 112 immediately it happened. It happened at exactly 12pm but the LASEMA people got to the scene around 12:20 pm. Before they arrived, NEMA officials and one LASTMA officer were already here.

“But when the helicopter crashed, a lot of people rushed near but were afraid of going closer because of an explosion. I gathered courage and moved closer and some other people joined me. That was how we knew they were three people inside.

“The pilot was still breathing. We brought him out and he breathed for two minutes before he stopped. There was an old man beside him who was not breathing when we brought him out. Also, the third man was still alive and we heard he later died in the hospital,” she said.

Friends pay tribute to pilot

A female Facebook user, Shantel Zere Alphonsus, who seemed to have shared a relationship with the late pilot, mourned his sudden exit.

She said: “It is hurting, the pains are much Chika. This is not what you promised me, not this way. I am so helpless. What a harsh way to go. I can’t question God. I pray for your soul, our creator knows best.

“Chika, words can express the pains I am feeling. You promised to come and see me in Jos when you returned from your journey to Lagos just to receive shocking news that you were in a helicopter crash. My goodness! I can’t believe this is happening to me.”

Another friend of the late pilot, Naomi Lengmang, shared an encounter with the late pilot.

She said: “You showed me the cruise button on my Toyota Jeep and taught me how to use it. You made my driving easier, and fun. Missing you son! May God comfort your Mum and Chinwe.”

Timeline of helicopter crashes

2011:

A Nigerian businesswoman, her personal assistant and their Filipino pilot were killed in a helicopter crash in. Josephine Oluwadamilola Kuteyi chartered a helicopter to travel from the commercial capital of Lagos to the central Nigerian city of Ilorin in Kwara State. Kuteyi ran a business in the town of Bacita about 124 miles (200 kilometers) away from Ilorin.

The helicopter hired from OAS helicopters crashed in a hilly area outside Ife-Odan in Osun state about 71 miles (115 kilometers) away from its final destination killing all three occupants.

August 31, 2012:

A Deputy Inspector-General of Police, John Haruna, and three others died in a  helicopter crash in Kabong area of Jos, Plateau State. The AIB released a report  which indicated the medical certificate of the pilot of the Bell 427 Helicopter, with registration number 5NPAL, had expired as of the time of the accident, while the co-pilot was not ‘type-rated on the helicopter.’

The helicopter belonged to the Special Task Force, one of the teams in charge of security in Plateau State.

Akin Olateru, AIB commissioner, also said that the cause of the accident could not be decided due to the investigation that uncovered chains of differences and non-compliance with the Nigerian Civil Aviation Regulations.

On December 19, 2012:

A Nigeria Navy helicopter crashed on Saturday at Okoroba Village, in Ogbia Local Government Area of Bayelsa. Other victims of the crash were the governor of Kaduna State, Patrick Yakowa, and four others on board. The six occupants of the chopper were found dead.

On July 14, 2014:

A Nigerian Air Force Mi-35 Helicopter on a training mission has crashed, the Defence Headquarters said. The helicopter crashed due to technical fault at a location South of Bama, Defence spokesperson, Chris Olukolade, said.

On November 10, 2014:

A military helicopter on surveillance mission has crashed in Damare, a suburb of Girei Local Government Area of Adamawa state. A resident, Jamilu Inuwa, said he saw the chopper go down. “The helicopter crashed in Damare,” he said. “I don’t know if it is a military plane or not.”

On August 12, 2015:

A chartered Bristow helicopter, with registration No. 5NBJQ, flying from Port Harcourt to Lagos crashed into Lagos lagoon in the Oworonshoki axis of the city.

On February 2, 2019:

An Augusta AW139 Helicopter, under management by Caverton Helicopters, was involved in a mishap on landing in Kabba, Kogi State as a result of unusual weather conditions.

The helicopter, which belonged to Caverton, was ferrying Vice President Yemi Osibanjo.  Nigerian Civil Aviation Authority (NCAA) on February 3, 2019 began probe into the crash landing of a helicopter conveying Vice President Yemi Osinbajo in Kabba, Kogi State.

The NCAA said the investigation was being conducted by the Accident Investigations Bureau (AIB), the statutory agency saddled with the task of investigating such serious incidents and accidents.

Nigeria is looking forward to mining dislodging oil as a major revenue earner. Consequently, the Ministry of Mines & Steel Development is offering various mouth-watering fiscal and regulatory incentives to woe investors. The incentives, industry stakeholders say, could make Nigeria a global destination of choice for investors in mining, if sustained. Assistant Editor CHIKODI OKEREOCHA reports

The last couple of months have been particularly demanding for the Minister of Mines & Steel Development, Olamilekan Adegbite. The prevailing economic realities caused by the double shocks of the COVID-19 pandemic and revenue shortfall resulting from the crash in oil prices have put him on his toes, as the search for a sector with the potential to reboot the economy appears to focus on the mining sector.

The devastating impacts of the deadly COVID-19 virus and dwindling oil prices have forced a strategic refocus on other sectors considered as high growth sectors particularly mining. Consequently, Adegbite has rolled up his sleeves and gone to work to further open the mining sector to increased trade and foreign investments.

Nigerian Geological Survey Agency (NGSA) Director-General Dr. Abdulrazaq Garba said: “The mining sector is all about data, quality data for investment decision making. The process of mining or extraction of what is in the earth crust requires understanding of how the earth crust preserves these mineral commodities.”

NGSA is a parastatal under the Ministry of Mines and Steel Development. It is the nation’s custodian of all geosciences information. Established in 2006, the Agency’s statutory role is to provide relevant and up-to-date geosciences information necessary for economic development.

Garba told The Nation that a bankable geosciences data in the mining ecosystem is private sector-driven, because “There is a limit to government spending on mineral resources evaluation and exploration.”

He, however, said NGSA strives to provide beyond the basics, offering several layers of information required to boost investors’ confidence in the nation’s mining space.

Garba added that the Agency was developing a state-of-the-art infrastructure that will make accessibility to geosciences data much easier than it used to be in the past for the exploration of the vast mineral resources within the country.

The NGSA boss also said the minister has been supportive of the sector through the promotion of the National Integrated Mineral Exploration Project (NIMEP), standardisation of NGSA laboratories, good governance and institutional reforms in the mining sector, among others.

NIMEP is the Federal Government’s flagship rapid response to the dearth of investible geoscience data in the mining sector.

“We are continuing to upgrade and expand our data base to de-risk the Nigerian mining jurisdiction to make our potentials more palatable to investors,” Adegbite told The Nation.

The NGSA, which coordinates the NIMEP project, is also said to have undertaken additional ground investigations nationwide to upgrade the national minerals data base to a more investible level.

Also, all existing geological data are being archived in a digitalisation program handled by the British Geological Survey (BGS). The BGS was engaged by the ministry to build a national electronic geo-data archiving management system (Nigerian Geo-data Centre) at the NGSA.

Making mining more business-friendly

As part of efforts to make mining more business-friendly and attract investors, the ministry under Adegbite’s charge has put in place a regime of transparency and accountability in the issuance of mining licenses.

For instance, the “first-come-first-serve” and non-discretionary granting of mineral titles policy of the Mining Cadastral Office (MCO) now ensures the issuance of six types of licenses and permits to cover all activities from exploration to mineral production, as well as granting of licences between 30 – 45 days using transparent rules and regulations.

“The recent establishment of the Investment Promotion and Mineral Trade Department, to address investment opportunities and competitive pricing of the entire supply chain, is indicative of our zeal and preparedness to welcome global investment partners,” Adegbite said.

Wooing investors

Going by the avalanche of fiscal and regulatory incentives put in place by the Federal Government, through the ministry, to de-risk the sector and woo investors, mining looks good to attract the required investment that will enable it put the economy on the path of sustainable recovery post-COVID-19.

For instance, by the provision of Section 25 of the Mining Act, operators are granted exemptions from paying custom/import duties on imported plants and machinery.

The Act also gives allowance to a firm to set up a tax deductible reserve for environmental protection, mine rehabilitation, reclamation and mine closure costs. In other words, money for environmental remediation will be tax free.

The minster, who made this known at the “2020 Mining in Indaba”, Cape Town, South Africa, also said mining firms would enjoy an accelerated capital allowance of 95 per cent on qualifying capital expenditure incurred in the year in which the investment is made, as well as tax holidays of between three and five years.

Adegbite added that firms may benefit from waiver of applicable royalties, even as there is the assurance that corporate income tax in the sector will range from 20 to 30 per cent. This, according to experts, is quite competitive in the international market.

Similarly, where a holder of a mineral title earns foreign exchange from the sale of its solid minerals, it may be permitted by the Central Bank of Nigeria (CBN) to retain a portion of same for use in acquiring spare parts and other input required for mining, which otherwise would not be available without the utilisation of such earnings.

Some legislation also provides for other forms of irresistible benefits, particularly to foreign investors, in that they protect their investments from expropriation. For instance, Adegbite said under the new legislation, there is room for 100 per cent ownership of mineral properties.

What this means is that prospective foreign investors, most of who have been holding back for fear of having their lawful and legitimate enterprises nationalised, can heave a sigh of relief, as their investments will no longer be taken away from them.

It is easy to see why making mining more business-friendly to attract investors has become one of Adegbite’s major preoccupations. For one, Nigeria’s stock of mineral resources is widely credited with having the capacity to kick start a boom in the mining industry and by extension, the economy.

Beyond oil and gas for which Nigeria is highly ranked and known for globally, huge deposits of solid minerals abound in the country.

Officially, there are 44 different mineral types that occur in commercial quantities in more than 500 locations across the 36 States and the Federal Capital Territory (FCT).

Already, seven of these minerals have been tagged as strategic for immediate development. They include Coal, Iron Ore, Bitumen, Gold, Limestone, Lead/Zinc, and Barite.

These minerals were designated as strategic because of their potential to make significant contributions to Nigeria’s economic development. But these strategic mineral assets are available across the country as proven reserves.

Besides, despite having a history of mineral production, Nigeria, essentially, is still widely considered a Greenfield, which means that appropriate investments are required to unlock its full potential.

This must be why Adegbite has been partnering with a broad spectrum of stakeholders in the industry to deepen the reforms he outlined when he was appointed Minister in August 2019 and also foster a conducive ecosystem for private sector participation and growth. And the result of the partnership, as well as presentations made at various international mining fora may have started manifesting.

For instance, National Steel Raw Materials Exploration Agency (NSRMEA) Director-General Umar Albarka Hassan said the on-going NIMEP exploration projects on gold, iron ore, lead-zinc ores, barite and other precious metals have generated so much interest amongst international mining investors.

While noting that reports of these works are being awaited with keen interest, Hassan told The Nation that this is in addition to the exploration works on bauxite, silica sand, manganese and chromite being carried out by NSRMEA, Kaduna, towards the sourcing of raw materials for Ajaokuta Steel plant in particular and other local steel plants.

He listed other activities carried out to include facilitation of sustainable mine development and operations, which culminated into the development of the first large scale gold mine in Osun State by Thor Exploration, the Canadian firm that was granted license to mine gold in Nigeria through the Segilola Gold Project in Ogun State, south west Nigeria.

There is also the commencement of formal artisanally-mined gold purchase scheme and refining through the Presidential Artisanal Gold Mining Development Initiative (PAGMI) and other private initiatives driven by Dukia Gold and Kian Smith for harnessing local gold production, refining and sale of refined gold bars to CBN towards building its gold reserve.

Launched in 2019 by President Buhari, PAGMI is a comprehensive artisanal and small-scale gold mining development programme that seeks to streamline the nation’s solid minerals value chain largely dominated by foreign middlemen.

The initiative regulates the mining, processing, and refining of precious metals especially gold by informal miners whose activities in the sector are said to be currently undermining the Federal Government’s efforts at leveraging mining to diversify the economy, create jobs and increase revenue.

By Hassan’s admission, “This action (PAGMI) has facilitated formal gold trading, leading to improvement in royalty collection from gold dealers as well as stopping the exploitation of miners by gold trading syndicates.”

His counterpart at Mining Cadastre Office, Obadiah Nkom, expressed optimism that royalty waivers for gold exploiters will encourage compliance with royalty payment.

“We have streamlined our operations at Mining Cadastre Office to make it easier for investors to apply for mining licenses online,” Nkom said, noting that the mining sector has indeed, become more business-friendly.

Other developments that may have signaled the emergence of a more business-friendly mining sector include efforts at curbing illegal mining, including the establishment of mining cooperatives to encourage artisanal miners to bid for legal licenses; the provision of surveillance vehicles for the Mines Inspectors across the country; increased inter-agency co-operation.

This, according to Head Advisory & Consulting and Mining Sector Leader, PwC Nigeria, Mr. Cyril Azobu, has led to some arrests of local and foreign illegal miners. He also said there has been support for revamping the operations of Mineral Buying Centers across the country.

“We have also seen increased state governments participation in the sector following better collaboration between the Federal Government and the States in the development of the sector.

“The states have also increasingly received the 13 per cent derivation for national solid minerals, providing incentive for developing the sector and monitoring revenue collection,” Azobu added, in PwC’s recent advisory outlook titled “Unlocking the Potentials of the Mining and Steel Sector in Nigeria.”

The outlook, co-authored by PwC’s Associate Director and Head Mining Sector Business Development, Mr. Habeeb Jaiyeola, however, recommended that the strategic nature of the seven minerals identified in the 2016 Mining Roadmap needs to be continuously reassessed.

“This will prevent the country from investing so much in a resource, and at the point of harnessing the investment, the value of the resource becomes low due to diminished global relevance,” the report said, adding that key infrastructure such as access roads, dedicated rail lines, power, etc remain a challenge.

Nigerian Chevening scholars in the United Kingdom share their Coronavirus stories with HANNAH AJAKAIYE

When the United Kingdom announced a total lockdown in March, a new normal began—a disruption to daily lives and economic activities. Caught in the quagmire of navigating life in the midst of the restrictions were about 54 post-graduate Nigerian scholars on the Chevening scholarship sponsored by the United Kingdom’s Foreign and Commonwealth Office for Master degrees in various parts of the UK universities. With over 41, 000 recorded deaths as at the time of filling this report, the pandemic was a blight on the journeys of these change makers who had high expectation of experiencing the UK culture.

Narrating their experience in a virtual meeting with the UK High Commissioner, Catriona Liang, held on Microsoft team, the  scholars shared their experience of life in the UK during the lock down period, their contribution to the British society as well as their intentions to implement lessons learnt from the pandemic when they return back to Nigeria at the end of their course.

Support for National Health Service (NHS) Workers

Deploying her experience in fashion, Jane Obonyilo, an M.Sc student of Fashion Business Creation at the British School of Fashion, Glasgow Caledonian University London, supported frontline workers in the UK by making Personal Protective Equipment (PPEs) at the Hampstead gown factory.  The mother of two mentioned the desire to give back to society by considering the health and safety of other people as a motivation for contributing her effort to combat the Covid-19 Coronavirus pandemic.

“I volunteered with the Royal Free Charity in partnership with the NHS Foundation Trust. After about 16 weeks of volunteering experience at the Hampstead gown Factory of the Royal Free Charity, about 46,000 pieces of Personal Protective Equipment (PPEs) have been produced for frontline NHS staff and dispensed, with an expectation to reach the 50,000-mark next week,” she said.

Despite the disruption caused to his academic journey in the UK by the pandemic, Joshua Agbogidi volunteered for the UK Health Research Authority under the Research Ethics committee of Scotland. He was involved with screening and conducting interviews for researchers in the UK on ethics and protection of the rights of the participant. The medic, who is studying for a Master in Public Health-Palliative Care Research at the University of Dundee, is also working on an app-based project themed Help2Helped which focuses on providing relationship support for the elderly.

Speaking on his plans on getting home, he said: “I want to increase awareness of palliative care by ensuring it is accessible, cheap and available for those who need it.”

For Gbemisola Osadua, who is studying a Masters in International Commercial Law at the University College London, she volunteered for the NHS. The young lawyer, who made history by becoming the first African to be elected president of the Graduate Law Society of UCL, volunteered with the NHS Royal Voluntary Service as a responder attending to COVID-19 patience in isolation. She also worked with the United Nations Policy Hackathon on Trade and Investment by leading a team from UCL Law to design a policy framework for the United Nations on Model Provision to be incorporated for Trade Agreements to build back better after COVID-19.

Creating solutions in health care and environmental sustainability

For some of the scholars, a key takeaway from the lockdown experience was the functionality of the UK health system and the emphasis on environmental sustainability during the lockdown period.

Speaking on what she learnt from the UK government’s handling of the COVID-19 Coronavirus pandemic in the area of environmental sustainability and access to water, Yetunde Fadeyi, an MSc student in Sustainable Energy and Environment, Mechanical Engineering at Cardiff University,  wants Nigeria to prioritise clean and sustainable energy. With a dissertation focused on ammonia production as it relates to generating electricity from manure and human waste, Fadeyi said she was motivated to intensify efforts on her work on electrifying rural communities with renewal and sustainable energy through REES Africa, an NGO she founded.

“I would be intensifying efforts in providing affordable generators or innovative products to help meet our carbon target result and also help to deliver centralised forms of electricity for SMEs and households,” she said of her plans for Nigeria.

Reflecting on the UK’s response to the flattening the curve of the pandemic, Damilare Faniran, a medical doctor studying for a Masters in Clinical Oncology at the University of Birmingham lamented the defect in Nigeria’s health sector, especially as it relates to deficiency in drug supplies and development.

“One of the things I have learnt in the UK which I intend to implement in Nigeria is to form a coalition of people with clinical trial expertise. We barely do things like that in Africa except for few countries like Egypt and South Africa,” he said.

Sharing her concerns on Nigeria’s contribution to the maternal health burden in the world, Kadahaene Eyo, a public health professional studying for an MSc in Public Health at the University of Birmingham, advocated for funding of qualitative researches on maternal health services in Nigeria.

“In summary, let’s decide that saving our mothers’ lives is worth it. I look forward to conducting some of these researches and to help increase maternal health advocacy at the local and national level by working with local communities to create effective communication strategies. This will aid effective implementations of maternal health programmes at the community level,” Eyo said.

Describing his Chevening scholarship experience as an interesting journey since it afforded him the opportunity to research ways of addressing challenges in sustainable food systems, Joseph Ovwemuvwose, an MSc student in Crop Improvement at the University of Nottingham, praised the adaptation of the UK tertiary education system to the disruption caused by the pandemic as something the government of Nigeria need to emulate.

“Going forward, we need some innovation in the agro-allied space as the predictions about the challenges of climate change, food insecurity and population growth are not so splendid,” he stated.

Lawrence Adah, who is studying an MSc in Environmental Engineering at Newcastle University, volunteered with a society of engineers in the UK who educated youth on the benefit of engineering in the northeast of England.  Adah, who also volunteered with his church in the UK to distribute safety packs containing hand sanitisers and gloves, got funding for his dissertation and is working with research teams from various universities on wastewater distribution and networks in developing countries.

British High Commissioner Catriona Laing praised the scholars for turning a difficult situation into something rich and positive.

“Every Chevening scholar has a unique experience and what we have seen is how they have taken charge of opportunities through their volunteering experience and how they are going to draw on the experience to bring it back to Nigeria, which is exactly the point of the Chevening award,” she stated.  Describing COVID-19 as the biggest crisis the world has ever faced, Ms Laing said the world can only get through by working together and building resilience.

“We started the year with a great enthusiasm with the Africa Investment summit and out of the blue came COVID-19. It has knocked us all completely off course from the very personal level to the level of the global economy.

“We are only going to get through this by working together and our Chevening scholars are exactly the kind of people who are going to help us find a way to navigate through this,” she said.