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Tag: Development

  • How to build sustainable institutions for development

    How can institutions be strenghtened to support democracy and social justice? This was the thrust of discussions at the 58th Annual General Conference of the Nigerian Bar Association (NBA), with the theme: Transformation, transition and sustainable institutions. The week-long conference featured eminent speakers, including President Muhammadu Buhari and his Ghanaian counterpart Nana Akufo-Addo. It covered areas, such as political transition and governance, technological disruptions, diversity and inclusion, sustainable economic development and rule of law and security. Legal Editor JOHN AUSTIN UNACHUKWU and JOSEPH JIBUEZE were there.

    Africa is still struggling to get its institutional building processes right. Leadership transitions are usually marked by difficulties, as opposing voices are muzzled and votes hardly count. In most countries, there are strong men rather than strong institutions, seen in the fact that some countries have experienced only a few leadership transitions since independence, with most of the transitions uncompetitive.

    Former United States President Barack Obama underscored the need for strong institutions in Africa when he said in a speech to the African Union in July 2015: “There’s a lot that I’d like to do to keep America moving. But the law is the law, and no person is above the law, not even the president.”

    For countries that are able to hold regular elections, such as Nigeria, issues of respect for human rights and respect for rule of law, which underpin democracy, remain, reinforcing the need for sustainable institutions to manage transitions and transformations.

    These dominated discussions at the 58th Annual General Conference of the Nigerian Bar Association (NBA), which held at the International Conference Centre in Abuja last week, with the theme: Transformation, transition and sustainable Institutions.

    With several plenary and breakout sessions featuring hundreds of speakers, the conference covered areas, such as political transition and governance, technological disruptions, diversity and inclusion, sustainable economic development and rule of law and security.

    It was declared open by the President Muhammadu Buhari. The keynote address was delivered by Ghanaian President Nana Akufo-Addo, with a conversation elegantly anchored by Emir of Kano Sanusi Lamido Sanusi.

    Chief Justice Walter Onnoghen delivered a goodwill message; a highlight of the week was a special session with Vice-President Yemi Osinbajo on the economy. Among the dignitaries was former Head of State General Abdulsalaam Abubakar (rtd).

    Setting the stage

    President Buhari urged lawyers to help improve the sanctity of Nigeria’s judicial and electoral institutions which play a fundamental role in the sustenance and growth of democracy.

    “While we have made appreciable progress in several sectors, including public awareness on the need to challenge the corrupt and the brazen in our midst, we have also learnt useful lessons on the dynamism of our society.

    “However, elements within every society, including some lawyers, can equally become unduly resistant to change, even where it is proven that such change is to serve the interest of the larger society. At worst, corruption fights back.

    “As we gradually move into another season of intense political activities preparatory to the 2019 general elections, I enjoin you to remember that by reason of your profession, you all have a responsibility to work for national cohesion and unity through your speeches and public positions and most importantly in your advocacy in court.’’

    He reminded lawyers that the law could only be optimally practised in a Nigeria that is safe, secure and prosperous, restating his commitment to reviving the economy.

    “Through fiscal discipline and good housekeeping, we navigated the difficult days of economic transformation at the beginning of this government in 2015 and have come to improving economic indices, including the consistent increase in our foreign reserves, with 13 straight months of decreasing inflation.

    “We also ensured the expansion of social safety net programmes as well as the blockages of historical drain pipes in our national treasury, all within the context of the Economic Recovery and Growth Plan,” Buhari said.

    The President sparked a huge debate that is still raging when he said his administration subscribes to the rule of law as the society’s foundation, but that the rule of law must be subject to the supremacy of national security and interest where they are threatened.

    “Our apex court has had cause to adopt a position on this issue in this regard and it is now a matter of judicial recognition that where national security and public interest are threatened or there is a likelihood of their being threatened, the individual rights of those allegedly responsible must take second place, in favour of the greater good of society,” the President said.

    Akufo-Addo: focus on key state institutions

    President Akufo-Addo said for the African continent to meet the aspirations of its peoples and opens up opportunities for all, priority must be given to key institutions of state.

    “We must prioritise our budgetary arrangements to ensure that funds are available to strengthen key institutions of state, such as the legislature, judiciary, fiscal institutions, amongst others.”

    In the case of Ghana, he said the Judiciary’s budget was increased by 47 per cent when he assumed office, but emphasised that such institutions must be independent.

    “It is important that we promote and develop a culture ofaccountable governance, free of corruption, whereby these bodies see themselves as independent public entities serving the wider public interest, not the temporary conveniences of the governments of the day.

    “That is why we have added to our architecture of accountability the Office of Special Prosecutor to hold public officials, past and present, accountable for their stewardship of the public purse.

    “A well-known anti-corruption crusader and lawyer, indeed, a leading figure of the opposition in Ghana, is the first occupant of this Office, from whom the Ghanaian people have much expectation in the fight against corruption,” President Akufo-Addo said.

    The Ghana President, a lawyer, described the Judiciary as one whose independence must be guaranteed. He underscored the need to strengthen the Supreme Court.

    “As Attorney-General, from 2001 to 2003, under the Government of His Excellency John Agyekum Kufuor, I had the honour of nominating for appointment onto Ghana’s Supreme Court, distinguished jurists and academics, such as Professor Samuel Kofi Date-Bah, the late Professor Tawia Modibo Ocran, and the late Professor A.  K. P. Kludze, three judges whose works made such a significant impact on the growth of the Court’s constitutional jurisprudence.

    “I have continued in this tradition, as President, by nominating the immediate past President of the Ghana Bar Association, Nene Amegatcher, the former Dean of the Faculty of Law, University of Ghana, Professor Emmanuel Nii Ashie Kotey, and two respected Court of Appeals Judges as my first nominees to the Supreme Court.

    ‘This blend of persons on the Supreme Court, in my view, will strengthen the development of Ghana’s jurisprudence. We have a great battle to fight and win. That is the battle to provide our people with a good quality of life,” he said.

    Akufo-Addo lamented that the infrastructural deficit in the continent was abysmal. He called for free and compulsory basic education.

    “I have no hesitation whatsoever in recommending that African countries adopt a policy of free and compulsory education from kindergarten to high school. That is one of the most important things we have to do, if we have to get the transformation that will prosper our continent.

    “Another thing that has to be addressed is the hopeless state of our infrastructure. We need to build roads, rails and electricity. We need to provide drugs for poor communities and hospitals at affordable prices. None of those things can be that effective without the long arm of legal practitioners touching them one way or the other.

    “Ghana and Nigeria can lead Africa out of poverty and make it a pride in commity of nations. We do not have to look back to history to see that stable periods of constitutional governance and intelligent management of the economy leads to prosperity,” Akufo-Addo added.

    CJN: strengthen democratic institutions

    Chief Justice Onnoghen, who described Akufo-Addo as “a vibrant legal practitioner of many decades,” emphasised the need to strengthen democratic institutions.

    “The significance of the ballot for sustaining democracy must be protected by all and sundry. The electoral members must be thought to conduct themselves in the most acceptable manner. In the event of election disputes, the judiciary must be prepared to play its role with substantial credibility,” the CJN said.

    According to him, elections were not mere events or dates on calendars but a process to foster the development of democracy and enrich it. He said members of the bar are intrinsically relevant in the success of the process of elections.

    He urged lawyers to partner with other key stakeholders to ensure that voter education and advocacy is employed to engineer smooth elections that will engender stability and ensure sustainable development.

    Chief Justice Onnoghen stated that Judiciary has employed technology to render services by adopting the legal emailing system as a means of filing court documents and issuance of hearing notices.

    With the e-filing platform set to take off next year, he said proficiency in ICT is now an indispensible condition that must be met before anyone can be employed in the Judiciary.

    Malami, Abubakar, Ganduje advise lawyers

    The Attorney-General and Minister of Justice of Justice Abubakar Malami (SAN), Bauchi State Governor Mohammed Abubakar and his Kano counterpart Dr. Abdullahi Umar Ganduje called on lawyers to use their skills to help build institutions that guaranty the promotion and protection of human rights, democracy,  good governance and well-being of Nigerian citizens.

    Malami said: “The theme for this year’s conference is most apt and demonstrates our vision as an association ready to actively play our role as agents of societal transformation in an environment which guarantees the good of the greatest number.

    “You will recall that in my first address to the NBA during the Port Harcourt Conference in 2016, I had affirmed that the present administration would use the instrumentality of the law to drive its agenda of positive change and therefore sought the cooperation of the NBA in the above regard.

    “In about two years since that address, our country and our profession have witnessed developments and initiatives in the application of the rule of law, some of which were hitherto thought unthinkable and impossible in this part of the world, given our recent political history.

    “We have commenced a process of demonstrating that the law can truly apply to all and that society can insist on accountability where infractions have occurred. The process may not yet be completely smooth but there is no doubt that as a nation, our journey to an era of the supremacy of the law is now irreversible.

    “Over the last three years, we have pursued various initiatives designed to prevent crimes, expose crimes and punish crimes, especially against our national resources.

    “We have worked to strengthen the capacity of our investigative and prosecutorial agencies in order to improve their levels of compliance with their mandates.

    “We have embarked on an aggressive assets recovery programme the scale of which has never been witnessed in our country; we are working strongly with the Judiciary to improve courtroom processes and quicken the pace of justice delivery and have also expanded the scope of global cooperation to ensure greater collaboration with our international partners in legal matters, among others achievements.”

    The AGF urged NBA to commit to the building of sustainable institutions in order to make the present initiatives permanent and definitely irreversible.

    “Strong institutions create enduring value, promote transparency and accountability and foster a system of predictability in the conduct of business and the application of the law.

    “These are principles which will promote the practice of law in Nigeria, enhance our global competitiveness and ultimately improve the economic fortunes of all legal practitioners in Nigeria. I trust that in this quest, our objectives will remain common,” he said.

    According to Malami, for democracy to thrive, there are certain institutions that are a sine qua non.

    “First is the electoral body, that sees to the periodical transition from one government to the other. It is called by different names in different countries of the world. In Nigeria, it is called the Independent Electoral Commission (INEC) and we must ensure that we build that institution for it to stand on its feet and be independent as the name suggests.

    “The next one is the Judiciary; we must uphold the independence of the judiciary for there to be true democracy in Nigeria and Africa. Among all, we must have vibrant civil society groups for to have sustained democracy.

    “The last but not the least, in Nigeria we have the habit of registering more political parties. We are looking at numbers rather than strengthening the political parties that exist so that they will operate independently and ensure in house democracy, in the choice of candidates.

    “The political parties must be self-sustaining and unless they are self-sustaining they will always go cap in hand to those people who have the money to sustain political parties,” Malami said.

    Abubukar, in an interview with The Nation at the conference, reacted to President Buhari’s comments.

    The governor, a lawyer and Bar leader, noted that the President made reference to a Supreme Court judgment, adding that human rights are not absolute.

    “Fundamental human rights are not absolute rights. They are fundamental; they are guaranteed by the Constitution but they are not absolute. The constitution itself gave instances for derogation from the fundamental human rights.

    “You can by law derogate from the fundamental human rights of a person; those are the instances which Mr. President was talking about.

    “There are the areas that flow from the Constitution. There are laws as to the security of the nation that flow from the constitution and observation of those laws are fundamental to the wellbeing of the country and its citizens,” Abubakar said.

    The governor believes that Nigeria is gradually strengthening its electoral process. He called for better funding of INEC.

    “As far as the INEC is concerned, I must say that the INEC is improving by the day. I am saying this with all seriousness because I just came out of an election conducted by the INEC – the Senatorial election that took place in my state on August 11.

    “In that election, close to 200,000 votes were declared invalid simply because of the use of the technology that INEC has introduced, which people have not yet come to terms with.

    “The system of the past where you can go into a secluded village and stuff ballot boxes cannot work anymore and that is as a result of the efforts of the INEC, so I must say that we are improving by the day.

    “As to whether or not they have been given the adequate resources, there is a need for INEC’s budget to be passed in good time for them to be able to acquire the tools they need to be able to conduct free fair and transparent elections.

    “We must find a way of getting funds for the INEC but the first place to start is the National Assembly. They must reconvene to be able to pass this budget because they can do all the other things, the committee works and so on, but by law, the budget must be passed at the plenary and for there to be a plenary they must reconvene.

    “So, I must say that the responsibility falls squarely on the shoulders of the National Assembly. The budget must be taken seriously, especially budget of election, otherwise we will face constitutional problems, because the constitution provides stipulated periods and terms of office for governments.

    “For example my office has a four year term and it will expire by May 2019 whether anybody likes it or not and the constitution has not provided any interregnum. So, we must take the position and funding of INEC very seriously,” Abubakar said.

    In a chat with The Nation on his reason for participating in the conference, Governor Ganduje said although he is not a lawyer, he appreciates the work lawyers do.

    “I do appreciate the work of the judiciary for without them, democracy will not be complete. I think it is very important for us to note this and therefore strengthen the judiciary and other democratic institutions. The rule of law is a very important component of vibrant democracy and good governance which we must abide by.

    “Lawyers contribute a lot to it by guiding the executive arm of government, making sure that human rights are respected, governmental excesses are checkmated, individual liberties of citizens are secured and protected; all these form basic parts of good governance,” Ganduje said.

    He said he was committed to ensure that the rule of law thrives in his state and that the judiciary functions optimally.

    “As part of my contribution in building and strengthening the judicial institutions in Kano State, I make sure that lawyers from Kano State are assisted to grow within the system by making sure that they all participate in conferences like this.

    “I equally encourage them to take other Continuing Legal Education’s programmes to sharpen and enhance their capacity to perform within the industry.

    “In addition, we hope to get a very good number of Senior Advocates of Nigeria from Kano State. Some of our lawyers will go to the Bench, while some will remain in private law practice.  For now, we compete favourably in the federation, we have the highest population in the country and so, whatever profession you mention, we should strive to see that we are there.

    “That is the motivating factor behind my interest and participation in this conference. Kano State will not be left out in this effort at enhancing transition, transformation and sustainable institutions in the country.

    “The theme is apt, the timing is auspicious and I hope that the results and effects at the end of the day will be fantastic and advance our socio-economic and political development,” Ganduje said.

    Breakout sessions

    The conference had several breakout sessions during which various subjects were discussed, including those by various NBA sections.

    In a special session with the CJN, who was represented by the Chief Judge of Borno State, Justice Kashim Zannah, the issue of achieving efficiency in justice administration was addressed.

    Justice Zannah said justice administration is delayed partly due to the use of outdated manual methods, adding that the judiciary must adopt technology in all its process or it will be left behind.

    He said: “Nigeria is a large country. Disputes will come up. They will multiply and explode. Can we handle those disputes by manual processes? No.

    “Indeed, you will be more surprised that perhaps, the reason we have volume of cases is because we have not been able to handle them appropriately, efficiently and speedily.”

    He was of the view that full adoption of technology would fast-track justice delivery and restore confidence in the judicial system.

    “At any rate, the judiciary needs to be ready; otherwise it will reach a breaking point where the society will be moving fast, buying tickets at homes and withdrawing money at ATM points, but only when they come to court will they find manual processes. You don’t expect such a society to tolerate such a legal system for long,” Justice Zannah said.

    Zannah urged lawyers support the deployment of the judicial information technology policy.

    “It is clear that we are at digital age. It is identified as an era where social, economic and political activities and processes are driven by the application of information and communication technology or digital technology.

    “Because of that, agreements are digitally formed and the evidence that will come will increasingly be in digital format. We are delivering justice in digital age for digital citizens and for digital aged disputes.

    “The just, efficient and effective resolution of these disputes would have to be driven by the same technology,” he said.

    NBA criticised

    Several lawyers at various sessions criticised the NBA for being too quiet in the face of human rights abuses and rule of law violations.

    Former NBA president Chief Wole Olanipekun (SAN), who chaired the session with the CJN, urged the association ensure access to justice and respect for rule of law.

    He regretted that NBA today “sees nothing, hears nothing and does nothing”.

    “When we talk about the rule of law, what is the role of the bar association? You are the anchor! We have to remind ourselves what NBA stands for at all seasons.

    “It is not just for bread and butter, jamboree or picnics. We have to remind ourselves about the years of yore, and what NBA was doing. So, NBA must rediscover itself when it comes to access to justice,” Olanipekun said.

    Economic and Financial Crimes Commission (EFCC) Acting Chairman Ibrahim Magu, at a session on Institutionalising the war against corruption – new approaches to assets tracing and recovery, criticised lawyers, some of who he said aid money laundering, urging the NBA to discipline its senior erring members.

    Magu, represented by EFCC’s Director of Legal and Prosecution Department,  Chile Okoroama, said: “Lawyers have been involved in money laundering; laundering of proceeds of crime. When they were asked to register with the Special Control Unit Against Money Laundering (SCUML) for regulation, they went to court. NBA said it could regulate itself. But how far has NBA gone in regulating itself? That is the issue.

    “I think the NBA Disciplinary Committee should be up and doing. I get embarrassed when NBA descends heavily on lawyers who are not considered to be significant, but they turn a blind eye to what big-time counsel are doing.

    “I think they have to do their work without looking at faces, no matter whose ox is gored. That is the only way that we can have confidence and respect for the Disciplinary Committee,” the EFCC chief said.

    Presidential Advisory Committee Against Corruption (PACAC) Executive Secretary Prof Bolaji Owasanoye, who chaired the session, said NBA did nothing to rein in lawyers who pocketed billions of Naira for doing no work in asset recovery.

    Owasanoye said: “The NBA as presently designed – its mindset – is not in a position to fight corruption, unless you want to deceive yourselves. I’m a member of the NBA. It’s my position, it’s not a secret. Every time I’ve had a chance to speak at NBA conferences, I always make the point using facts.

    “If the NBA will not take a position and deal with the issue, we’re going to be going round in circles. And the implication is that majority of the practitioners are going to be left in the fringes. They will not be able to survive.

    “It behoves the NBA to create mechanisms that will assure the public that it is dealing with the issue. Otherwise you stigmatise the entire profession for the sins of a few.”

    Rights activist and constitutional lawyer Chief Mike Ozekhome (SAN), who was a panelist, accused the Federal Government of engaging in selective war against corruption, adding that the NBA has been silent in the face of abuses of rule of law.

    “The NBA has been sleeping. The NBA, to me, with all respect, has been greatly compromised. And I think the time has come for us lawyers to make up our minds, that if the incoming executive wants to go the way of the last NBA, there will be need to split the NBA from the old order to a new one.

    “We’re no longer having the NBA championing the cause of the common man in this country. People cannot even speak. Everybody is looking over their shoulders,” he said.

    Activist-lawyer Femi Falana (SAN), who disagreed with President Buhari, blamed attorneys-general for encouraging the violation of rule of law.

    “There is none of them (President and governors), who will not seek the legal advice of the Attorney-General if confronted with obedience to court orders. It is our colleagues who will advise: ‘We don’t need to obey the order.’”

    The SAN said he once challenged a governor as to why he was not obeying a court order. According to him, the governor’s response was that his attorney-general told him there would be an appeal, and that before the case is decided by the Supreme Court, they would have left office.

    Faulting the NBA for tolerating disobedience of court orders, Falana said: “This Bar, NBA, once went on strike to protest the disobedience of a single court order. But today, the NBA is so comfortable with disobedience to court orders.”

  • Invest in your development, youths told

    Corps members, students and other young people left the Mega Youth Conference organised by RISE Networks at the LTV8 Blue Roof, Ikeja, Lagos, energised about investing in their development.

    The participants learnt from the organisers, government officials, sponsors and other young entrepreneurs what they need to do to create safe spaces and opportunities for them to excel.

    The conference organised in commemoration of the International Youth Day featured presentations by various speakers, panel discussion as well as question and answer session.

    The programme was organsied in collaboration with the Lagos State Government and the Nigerian Bottling Company.

    In her address, Founder, RISE Networks, Mrs Toyosi Akerele-Ogunsiji, urged the youths to be responsible now so they can be good leaders in future.

    “Youth is a state of responsibility.  We don’t simply want to replace irresponsible, corrupt politicians with irresponsible, corrupt young people.  We want people of quality, character and competence.

    “Your PVC is the power that you have to be able to change the people you want to see in office,” he said.

    Governor Akinwunmi Ambode in his speech delivered by the Secretary to the State government, Mr Tunji Bello, said the state recognised the challenge posed by having a large youth population and was making efforts to address it by empowering youths to start businesses with interest free loans, provision of work spaces, and the like.  By so doing, he said the state was creating safe spaces for youths in line with the United Nations theme for the World youth day.

    Also speaking, Managing Director of Nigerian Bottling Company, Mr. George Polymenakos who was represented by Legal, Public Affairs and Communications Director, Mrs. Sade Morgan, with opportunities thrown up by technology, young people had no excuse not to fulfil their potential.

    “In the Nigerian Bottling Company Ltd and indeed, the entire Coca-Cola system, we believe in the power of young people. The theme of this year’s International Youth Day is ‘Safe Spaces for Youth’. Safe spaces motivate young people to engage in sports and leisure, governance issues and cross-border interactions, especially because of internet and digital penetration and convergence.

    “As a company, we will continue to demonstrate our unwavering commitment to youth development in unequivocal terms,” he said.

    Commissioner for Youth and Social Development, Mr Agboola Dabiri, Founder of Keresku Farms, Mr. Rotimi Williams, Founder of Flying Doctors, Dr. Ola Brown and Chief Executive Officer, Enyo Retail and Supply, Abayomi Awobokun, challenged the participants with their stories of success and challenges along the way of establishing their businesses.

    Awobokun said youths should not wait until all is done for them but contribute to the society by volunteering.

    “Instead of looking for help all the time, I contributed to the community.  I volunteered in hospitals, I farmed.  By so doing I am contributitng to safe spaces in Nigeria,” he said, urging them to do same.

    Rotimi Williams shared how he became a rice farmer of the second largest rice farm in Nigeria.  He shared his story of loss to flood and how he used his talent in arts to start again and make success out of his food prices data management system.

    “Whatever industry you have chosen, go for it.  As long as there is a want we should continue to create.  There is absolutely no excuse,” he said, adding that he was ready to employ 50 people as rice farmers on a N90,000 salary monthly.

    Dr Ola Brown used an analogy to challenge the youths to take opportunities before them by asking who wanted the 100 dollar bill she was holding.  The person bold enough to go to her and collect the bill got the money – explaining that that was how opportunity works.

  • Leveraging big data to drive development

    The relevance and use of big data – large data sets which are analyzed to track trends and patterns in information, and used to determine and reveal outcomes – has steadily grown in recent years. The amount of information that can be collected from big data sets is vast and is critical for improving decision-making. Mostly used by private organizations globally, it helps companies’ business performance and to better understand their target audiences – provide early warning signs, real-time awareness and real-time feedback on issues and required areas of development.

    This ability to draw information from millions of different sources is especially beneficial to developing countries with a predominance of rural areas and poor institutional capacity, as it has the potential to better lives by forecasting poverty and shared prosperity through mobile phone data, using satellite imagery to monitor and map electrification of rural areas, to better understand the targets of financial inclusion and climate smart agriculture, to name a few. This activity has been implemented by private organizations in various African countries: in Kenya, a solar energy provider – M-kopa – uses cloud technology to generate data and manage its solar panel devices. They generate more than one million device readings every day which provides information related to the batteries, temperature of the devices, and sensors, as well as geographical data on where the devices are located; they have also been able to use data to calculate their customers’ savings – up to US$338 million since they started five years ago. Farmerline, based in Ghana, provides local farmers with access to accurate, up-to-date weather forecasts and market prices, thus, they gain immediate knowledge of competitive pricing and often larger and steadier yields. Increasingly, the power of big data is now shifting from being used solely by private enterprises, to being used by governments, especially in public-private partnership initiatives, to identify development gaps; assess areas for improvement; citizens’ identity; and manage/mitigate risk.

    Despite these successful use-cases, the digital divide and slow adoption and operation of advanced technology in most developing countries have, so far, limited the possibility for the potential and capabilities of big data to be fully harnessed. This is being addressed by international institutions such as the Organisation for Economic Co-operation (OEC) and the United Nations Development Programme (UNDP), which are working to reduce the infrastructure and skill divide in order to effectively facilitate the use of big data in developing countries. An organization called Big Data 4 Africa is also working in partnership with the Global Partnership for Sustainable Development Data to close the data gap in Africa, by improving availability and accessibility to data and analytics in sectors such as food security, healthcare, financial services, etc.

    In Nigeria, big data is still in the early stages of implementation, even more so in the public sector; in the private sector, it is mainly being used by multinational technology companies and start-up tech companies, such as IBM Innovation, Dell EMC, Terragon Group etc. A few companies in the Financial Services and Insurance (FSI) sectors are exploring big data too. TLcom Capital recently invested $5M into Terragon Group, a data analysis organization because of the potential big data analytics has in making an impact on the country. The first Big Data Economy Summit in Nigeria also took place on October 12, 2017 had representatives from Diamond Bank, MTN, Data Science Nigeria and other nationally prominent organisations. Bluechip Technologies also recently released BluePrime, an analytics software that is positioned to revolutionise business-to-consumer relationship management – providing valuable, in-depth insights into customer behavior, trends, experiences, and sentiments, and through a campaign engine, also provides messaging templates for businesses to tailor their communications to their target customers.

    Nigerian telecommunications companies began to make use of Big Data through the SIM registration process; they adapted their business information platforms to integrate data analysis, in order to better understand the customer and use the information more efficiently. However, the method of collection and categorization then was flawed due to its simplicity, as only one data set –location – is used for analysis, rather than multiple sets. This caused a number of problematic loopholes, as traders and business CEOs end up in the same category because they both make calls to certain locations around the country; therefore, practices to target that demographic would then have varying impacts on the people in the category.

    In 2014, Ogun State announced the opening of 300 tertiary control points to boost survey access and conduction across the state in an effort to upgrade and re-equip the Department of Survey in the State Bureau of Lands and Survey. The control points were also going to collect data from tertiary workers’ registrations as well as surveys with the aid of three Continuously Operating Reference Station (CORS) as the data collection medium. This attempt to collect data through survey points appears to be a good idea on the surface, but when implementation began, it proved more difficult. The lack of technological advances caused the project to stall, as the data quantity increased over the years. Also the lack of consolidated and continuous efforts caused the project to lag behind.

    In Edo State, the first Nigerian open data portal was launched, which is expected to have a two-fold benefit. Firstly, advocates contend that making government data available to the public in open formats increases government transparency and accountability. Furthermore, open data should enable third parties to leverage the potential of government data through the development of applications and services that address public and private demands. In reality, open data has not fully taken off in Edo State because of the digital divide and the information lag by the government i.e. state government bodies are slow to upload results and the public do not often use the data because of the lack of data analysts at their disposal, which are also costly.

    Despite these seemingly false starts, knowledge and recognition of the importance and potential impact is on the rise, with the private sector taking bold steps to making use of effective data collection and management techniques in order to meet their business objectives. The potential for impact across developing nations like Nigeria is clearly boundless, but it can only be attained if it is treated as a matter of priority across both the public and private sectors. The increasing demands from customers and citizens who are mostly mobile and connected, places demand on both private and public sectors. While it has not yet been diversified as extensively for public sector use due to the culture, absence of data privacy laws and the lack of skilled personnel, the continued use by private sector bodies will translate through public-private-partnerships, and eventually, through to government itself, once tangible results are recognized.

     

    • Tewogbade, a company executive, writes from Lagos.

  • Nigeria’s slow march to development

    Nigeria’s poor growth performance is a worrisome scenario traceable to a wide range of factors bordering on our unholy entanglements with Europe as from about the mid-15th century A.D and African predatory politics including hedonistic leadership culture.  Although students and intellectuals belonging to the minimalist school of thought argue that Africans should be forward, rather than backward-looking in developing an understanding of the continent’s  socio-economic crises, a more cautious analysis reveals that maximalism is much more realistic  in finding solutions to the Nigerian/African development challenges and/or problems. Maximalist thesis captures the saga of our uncritical entanglements with Europe as well as local African leadership deficits in several senses. Thus, for example, the European slave trade led to human haemorrhage involving able-bodied, young men and women- the core of labour force. In the process, many facets of Nigeria’s indigenous knowledge systems including epistemologies suffered a setback. This was how Europe started arresting Nigeria’s development as from about 1640 A.D.

    The already tense atmosphere was later worsened by colonisation, starting from August, 1861. But long before the coming of Europe to Nigeria, the large territory had been following very independently the course of historical transformation. It advanced from mere hunting/gathering mode of economy to food production and iron metallurgy. Indeed, between 6500 and 3500B.C, sub-Saharan Africa was a net exporter of agricultural innovations and technology of such crops as guinea-corn and castor beans. By about 3500 B.C, some early peoples occupying the broad territory christened Nigeria in 1914, had started creating several agricultural systems.

    This was in addition to a separate and independent invention of iron metallurgy as revealed by the archaeological record. Settlers of the Nok region of northern Nigeria had a well- established tradition of iron metallurgical productions and sophisticated social organisation long before 500 B.C. The same thing applies to the Nsukka locality in eastern Nigeria. Iron metallurgical practices were a pan-Nigerian phenomenon in ancient times.  Nigerians (between 1640 and 1960) abandoned many aspects of their culture of innovation and creativity, and began to rely very uncritically on Europe. Scrap iron and other items from Europe like umbrellas, hats, walking sticks, smoking pipes, alcoholic drinks, gun powder and fire arms were used as bait to weaken the country. Nigerians and Africans in general have always been victims of the greed of others. Therefore, the moderns need the ancients in order to make progress. Unfortunately, most contemporary African leaders are either ignorant of this fact, or are not just ready to take the bull by the horns. This problem extends right up to the highest levels of policy making across Africa.  The uncritical association and romance with the hegemonic West is the beginning of foolishness and underdevelopment. Nigeria has to begin to participate in the international community in a very cautious manner. The country as a part of the world historical environment had contacts with some South-east Asians on the basis of mutuality of respect more than 2000 years ago.

    These early Nigerians adopted some crops like cocoyam and water yam from the Asians. These food crops have with the passage of time, become vital components of the agricultural and culinary life-ways of Nigerians.  This mode of globalisation was not exploitative or predatory, contrary to the narrative of Nigeria’s entanglements with the West later on. Thus, for example, Nigeria is still engaging in raw material economy involving exportation of crops like cocoa, palm oil, groundnuts, yam, cassava and ginger to boost the metropolitan economies leading to employment flight for the country. The processed raw materials are later returned to Africa at exorbitant costs. In addition, the West and some Asian countries engage in off-shoring and production relocations to Africa as a result of their superior technology to further worsen the local condition. Indeed, liberalisation is a trade architecture enshrined in marginality and underdevelopment.

    Such Breton Woods Institutions as the World Bank, and IMF were established to continue to economically exploit Nigeria and other parts of the developing world. The U.S, followed by Europe dominates these bodies. The former has a quota share of 17.1, while that of Europe is 32.4. Africa with 55 countries has 5.3.  Consequently, Africa has a very low voice due to under-representation. African leaders are pawns on the chessboard of a morally deficient international economic order. There are little or no subsidies to farmers in Nigeria. For instance, Nigeria uses only about 6kg of fertilisers per acre of arable land, while China applies 180kg. This problem also affects animal husbandry. Not unexpectedly, local poultry and dairy products among others are usually much costlier than those from the West and Asia. This is one of the IMF conditionalities applicable only to Africa and other developing parts of the world. It reflects our old colonial problems in new contexts. However, there are hopes because Africa’s problems are not gene-bound.

    The Nigerian leadership must ask for larger representation in all the Breton Woods Institutions. The current trade liberalisation policy is a form of de-industrialisation and a complete farce. These institutions do not allow Nigeria’s products to enter the developed world freely, whereas, Euro-American products flood African markets without inhibitions. This amounts to a double standard of morality. For instance, African   farm products cannot compete favourably with those from Europe and America. The former is usually costlier and poorer due to a lack of subsidies for farmers by the government. This is in line with the IMF one-sided policies. It is a pity that despite the fact that Africa has about 60 percent of world resources, it only manages to control about one percent.

    Nigerian leadership must invest much more than hitherto in human capital including health. Recurrent budgets have to be drastically reduced so as to adequately fund education. Research is pivotal to development. Nigeria needs appropriate technologies in order to move away from the age-long, colonial raw material economy to industrial economy and by extension, economic development.  Up to now, Nigeria and Africa generally are merely hewing wood and fetching water for the West as auto-bound development remains a mirage. Despite the fact, that Nigeria produces about 1.8 million metric tons of tomatoes, we still spend up to 170 million dollars or thereabouts to import tomato paste annually. This is one manifestation of infrastructural deficits that must be corrected if indeed we want to reduce unemployment rate and by the same token, material poverty to the barest minimum in the country. Nigeria must begin to use its local initiative in order to have sustainable development.  It is most unacceptable that the multinationals continue to reap the fruits of African labour without caring a hoot. This scenario including other factors aggravates agonies, fears and insecurities in the land. Africa is certainly a potentially huge market, but the leadership must be much more patriotic than hitherto in order to turn it into an economic opportunity for Africans.

     

    • Professor Ogundele is of Department of Archaeology and Anthropology, University of Ibadan.

  • Govt tasked on rural development 

    The Community and Social Development Project (CSDP) has tasked government at all levels to adopt the community driven development model in in the rural areas across the country.

    The National Coordinator of CSDP, Dr. Abdulkarim Obaje while speaking at the quarterly review of the activities of CSDP said people of the communities should take ownership of projects in their communities.

    He appealed to those at the elms of affairs of government to adopt people’s oriented model and put the rural people in the driving seat of their community’s development.

    He called for the institutionalization of community driven development model in the country.

    Obaje said so far, the CSDP has completed over 11,000 micro projects in rural areas across the country.

    Also speaking, the General Manager of SCDP in Osun State, Mrs Funmi Aderonke Abokede commended Osun State governor, Mr Rauf Aregbesola for prompt payment of counterpart funds which has enable the people of the state to benefit immensely from CSDP project.

  • ‘How maths can help Nigeria’s tech development’

    Nations,  which have technological and scientific development,  have realised the importance of mathematics to science and technology.

    Unfortunately, this is not the case in Nigeria, which breeds quacks and ill -motivated teachers with its attendant poor motivation, funding and somersaulting curricular.

    This is the stance of Samuel Iyase, a professor of Mathematics, Covenant University (CU), Ota, who believes, if Nigeria must join the league of advanced nations, the solution is to reverse the aforementioned scenario.

    Iyase, who delivered the institution’s 14th inaugural with the theme: ‘Mathematics: A platform for leapfrogging into scientific and technological advancement.’ said: “Teachers of mathematics are both under-qualified and poorly reformed. Mathematics curricula reform is often inspired by corrupted corresponding western models. Examinations determine the worth of mathematical knowledge. Memorisation and rote learning is mostly the determinant form of teaching and the subject’s links to science and technology and relevance to student’s everyday experience is hardly emphasised,” said Iyase, who teaches at CU’s Department of Mathematics.

    “The bachelor’s degree programmes in mathematics are unpopular among students. The undergraduate mathematics curricular of many departments’ of mathematics emphasise traditional areas of the subject. The demand for graduate education in mathematics is limited. It is obvious that the number of PhD holders is grossly inadequate,” he added while identifying the challenges of the subject.’’

    Iyase likened mathematics as a catalyst for reducing the scientific and technological gap between developed and developing nations like Nigeria.

    Other challenges, according to him, include inadequate staff, relative isolation of mathematicians in Nigeria, brain drain, negative image of the subject, and weak mathematics education.

    Nigeria, Iyase advised, could ape the Asian Tigers, particularly Singapore, which was just five years younger than Nigeria (Singapore gained independence in 1965) colonised by Britain, which also colonised Nigeria, but is miles ahead technologically because of her huge investments in mathematics and other science-oriented subjects.

    “In a typical Singaporean’s classroom, the focus is not the one right answer but rather the goal is to help students understand how to solve mathematical problems. The teachers make use extensive use of visual aids to help students understand mathematics. Teachers cover less materials than many countries but rather cover indepth. The level of mathematics in the primary school laving examination is approximately two years ahead of that in most schools in the United States. At the primary and secondary level, extra curriculum activities, such as mathematics and science fairs, are designed to generate interest among students.”

    Iyase lamented that the leadership is yet to strike a link between education and educational development, saying its realisation would result into priortising education and production of high quality mathematics and science professionals.

    ‘’The popularisation of mathematics should be a priority. An important element that has led to the unpopularity of mathematics is the lack of career guidance in our secondary schools and even in universities.. Career guidance will help students to know the wide range of career opportunities available to mathematicians. Students leaving secondary school and heading to tertiary institutions are in most cases biased against mathematics.”

    While craving more funding for  Mathematics reasearch, Iyase emphasised the need to form a think-tank comprising professionals in mathematics to come up with modalities on the application of indigenous knowledge to mathematics and use of mathematical tools in solving problems across government, business and industry.

    Earlier, CU Vice-Chancellor Prof. Aaron Atayero, who was represented by his deputy, Prof. Shalom Chinedu, said the inaugural lecture was timely in view of the foot-dragging posture of governments to mathematics and technology education.

  • Lack of history hinders development, says Bola Awe

    Renowned historian, Prof. Bolanle Awe, has said for the country to get out of economic hardship, it needs History as a discipline to strategise action plans for transformation.

    She spoke with The Nation at the weekend in Oyo town after visiting the Alaafin of Oyo, Oba Lamidi Olayiwola Adeyemi 111.

    Awe said to come out of recession, Nigeria must embrace the benefits and hopes offered by History, not only to learn what those countries did to overcome their problems and become super powers, but must cultivate the character required for transformation.

    She said History should not only be made compulsory, but government functionaries should be made to appreciate and understand its essence.

    ‘’Their good grasp of History will afford them the needed foresight to manoeuvre the rigours of governance. It will also enable them to understand their environment, the people and the happenings around them.

    ‘’The recovery methods and tactics are embedded in History books. It is free knowledge. Ideas alone are not enough. Nigeria has experienced recession before; our history is replete with stories of how our progenitors recalibrated the economies of their kingdoms and chiefdoms, especially after the abolition of slave trade,’’ the don said.

    Awe, the pioneer director, Institute of African Studies, University of Ibadan, said History offers a storehouse of information about how people and societies behave.

    Oba Adeyemi described her as ‘’an academic giant, whose life and achievements have distinguished her as an outstanding and highly principled individual, who has contributed to the development of her fatherland.”

  • NCC ‘ll partner stakeholders to drive broadband development

    In spite of the enormous contribution of the telecoms sector to the nation’s gross domestic product (GDP), it is still conatrained by a myriad of challenges which could derail the Federal Government’s target of 30 per cent broadband penetration. But the Executive Commissioner, Stakeholder Management, Nigerian Communications Commission (NCC), Mr. Sunday Dare says the regulator is partnering stakeholders in the industry to address these challenges, LUCAS AJANAKU met him in Lagos.

    What is your assessment of the industry and why is NCC convening this forum?

    The situation across the country is dire in terms of non-approvals of Right of Way (RoW) and multiple taxation. In some cases, we have more than 25 applications for permits unapproved for two years or more. Thus, in terms of deployment of telecom infrastructure, the major telcos suffer great setbacks and these translate into declining quality of service (QoS) to millions of subscribers. The non-approval and heavy taxation of telecom infrastructure have led to service gaps in FCT in particular and across the country. Nigeria has slightly over 250 service gaps where there is no telecom service or penetration.  Connectivity is not yet 100 per cent and we said without this approvals, we cannot have improvement in the QoS. The Commission has received assurances particularly from the FCT minister and some state governors that approvals will be granted speedily and taxes reviewed. Even as I speak, I think certain approvals have taken place.  Presently, given the situation which is staring us in the face, with the expiration of the NEC document soon, NCC is speeding up consultations. We are leveraging the results of the state-to-state interventions we have had, the feedback we’ve had across the stakeholder matrix, the experiences of the operators and numerous other engagements at the highest levels to review the document and present an acceptable standardised RoW and taxation document with regard to the telecoms industry. The Commission, in October last year, made a presentation to the office of the Vice President.NCC, through the Industry Working Group (IWG) is now looking at how it can bring all of these together- by identifying different interests, challenges of the economy and revenue and other relevant matters in the document review process.  What do we hope to achieve? To come up with a reasonable and acceptable document -a standardised regime of charges and taxation. One that pays attention to the peculiarity of a strategic state like Lagos and a developing telecom state like, perhaps Jigawa for instance, because it might be difficult to charge in Jigawa the same amount Lagos is charging. In some instances, charge per linear meter in Lagos can be N500 while in Jigawa, it may be slightly higher due to low volume of telecom activity and the need to generate some revenue. Importantly, beyond the charges, we hope to shorten the times for approvals, improve the engagement between the state governments who need tax revenue and the operators who want to deploy to expand their networks. Now, the NCC is caught between these two giants and the Commission’s overriding interest is to ensure that Nigeria’s goal of attaining a broadband penetration of over 60 per cent across the country is not impeded. The interests of the parties do not collide but are reinforcing. They complement each other.  If for instance, the telcos deploy their infrastructure, their revenue base increases by the same token the taxable revenue that will come to the state also increases. So if one of the operators makes N10billion because it is able to improve and increase the volume of its business and then it has problems with certain deployment and the revenue dips to N5billion, what is going to go to the federal and state as taxable revenue also decreases. So we hope that this document that we are trying to review now will look at this critically. NCC has other critical stakeholders. It is not just the state governments. We have the federal ministries, departments and agencies and everybody is coming with charges. It’s a whole galaxy to say but we are trying to bring that whole galaxy under one regime and then have something that can be looked at. There might be a range for Row charges with a ceiling.  We hope that the IWG will do that difficult task so that by April, we could have a draft resolution that will be presented to NEC and then NEC can discuss this towards reaching an agreement. NCC hopes to do a presentation there, answer their questions and then see how we can get this done.

    What are the implications of these charges on government and telecoms end users?

    Well, I think the implications are tripartite. There are implications for the telecom industry especially and the key stakeholders, implications for the government in terms of the revenue accruing to it, in terms of the investment that comes into telecom and then that dovetails in terms of the number of people employed in the telecom industry and then we have implications for the subscriber. Let me start from the subscriber, the quality of service (customer satisfaction)  suffers because a subscriber expects that if he gets a registered line, puts credit on it, he expects to enjoy some level of satisfaction in terms of quality of service. Your call is going through, your text message is not delivered on time, and your connectivity to the internet is slow and lots more. These will persist if the operator for instance continues to have problems in deploying additional infrastructure or expanding his network because of multiple charges and right of way issue. What it means is that the operator has to or will put a lot of pressure on the system and equipment it has such that if you have a duct that only 500 calls can go through every hour and you want to expand and you cannot expand, you will now start piling 2000 calls through that duct. That leads to congestion and of course dropped calls.  You know what happens when 2000 people are trying to get into a door that was made for 500 people and of course the only reason might not be that they don’t have the permit but it is part of it, we will say we want to deploy but we cannot deploy because we’ve not been given permit but there is also something called the capital expenditure (capex). The dollar component of their commercial agreement and the rest is a major concern for operators. Some of them took loans from the banks at the rate of N195-196 to a dollar and it went to N500, N450 it’s at N360 now but we are still looking at almost twice the amount and have not been able to get out of that debt trap. It’s going to take a while so they are cutting down, they are not getting enough forex which will bring in equipment from outside. On the part of government, it affects the revenue (annual operating level) because if they are not making enough revenue, we’ll only tax them based on the volume of business they do that’s one. Two, one of the core mandates of NCC through the NCC Act 2003 is to encourage investment we have seen between 2015, 2016, 2017, we’ve seen an almost 10 per cent contribution to GDP but as the telecom industry is facing  some challenges the GDP contribution has dropped slightly. All of these affect the taxable revenue that comes to government, impact on quality of service and employment is at risk.  So, you see, it’s tripartite. It is so connected and let’s say, unless we face these challenges and solve them, it will affect the foreign direct investment (FDI) coming into the country, it will affect QoS and consumer satisfaction, it will also affect the revenue base of the operators and the taxable revenue accruable to government at different levels.

    Three years ago, Association of Licensed Telecoms Company of Nigeria (ALTON) signed an agreement with Lagos State government over the harmonisation of these charges. What is the situation? Has it become a stumbling block?

    It will not be right to say Lagos is a stumbling block and this is the narrative.  Lagos State is a bellwether for this country in several aspects. When it comes to the telecoms industry, the telecom headquarters of this country is Lagos; when it comes to population, the one single biggest population is Lagos; when it comes to the centre of business, it is Lagos; when it comes to the pace of development, it is Lagos. So Lagos does matter and like other big cities in the world, you expect that a state like Lagos in any economic engagement will like to maximise the benefit for the sake of the state. So that is what you are seeing in Lagos and rightly so.  Lagos is trying to make sure that even in engaging with the telecom industry and other similar industries as you have seen, the state wants to renegotiate the basis of agreements or review this and that. Is there a way Lagos can get more value for this engagement? That is what is happening. Now, the worry for us is that while the legitimacy of that position cannot be challenged, time is of essence. Lagos has the right to do it, but we are worried about the timeline, the pace at which it is happening. If it is not fast enough, if it is delayed willingly or unwillingly, the effect on the telecom industry and particularly the effect on the achievement of the roll out obligations in the National Broadband Plan (NBP) 2018 suffers. And there will be ripple effects. Our role is to ensure amicability and help facilitate collaboration between states like Lagos and NCC licence holders.  So what we want to see on the part of Lagos and we know that once Lagos gets it right, other states will take a cue from it, is harmonisation of positions and a partnership that works both ways.

    For the benefit of all the states of the federation let’s have this review; let us have this understanding and agreements and make sure that we hit it on an accelerated pace such that every party wins. For instance,  Lagos and any other state as the case may be, gets more value, the operators can deploy the infrastructure needed and ultimately the man on the last mile which is the consumer also gets better services. Let me give you an example, Lagos is clearly the number state in the country and its Smart City project tis on course. There is greater value in working with all the elements in the industry especially the regulator.  The smart city thing is also within the new ecosystem and  you have to ride on the back of telecom infrastructure. What is this telecom infrastructure? It’s not independent of the infrastructure of any of the operators, it’s not independent of the NCC as a regulator; it’s not independent of the quick deployment of the huge submarine cables lying at the shores in Lagos needed to create the backbone infrastructure for broadband penetration. We have Main One, SAT 1, GLO 1 just lying there at the shores. We know about six other states who have started their Smart City projects in Nigeria and are working with NCC.

    The engagement spectrum is wide; government to government, some is government to private but we are all connected. NCC will work with Lagos as with others to achieve smart city, e-government and a digital economy. So like I said, Lagos is not a stumbling block. Lagos provides that critical passage to the success of the Infraco or NBP of the Federal Government.

    Against all these odds, is the 30 per cent broadband penetration target is  still achievable?

    Well, I think as at the end of last year, we were at 23.1 per cent and we have a 2018 target. We are not where we exactly want to be. We believe that the fact that we are at 23.1 per cent now realistically has to do with some of the challenges I mentioned earlier. One of these challenges has to do with the economic environment and the steep rise in forex pricing.  Nothing indicates that more than what happened to Etisalat. Beyond the fact they took a loan of $1.2billion, dollar component was massive and taken at the rate of N195 and have to pay back at almost N400. Etisalat almost collapsed. The fact that the other big telcos were able to survive also shows the resilience of the telecom industry and its operators.  But also with that comes the fact that the rate of network expansion and the rate of deployment we expected to see has slowed down. The industry has not been able to move that fast enough with the development of backbone infrastructure for broadband penetration. Ironically, you look at our shores, we have Main One, we have Glo 1, we have Sat 1, and they are there at our shores untapped.  Other countries are saying if you are not using them give us, they are sitting there because we don’t have the backbone infrastructure to distribute.  It is a question of the backbone infrastructure. Once you have the backbone infrastructure, the broadband penetration we are talking about is going to happen. Right now, we have 270 access gaps across the country and you know what I mean by access gaps, places where you don’t have connectivity at all either internet or telephone connectivity.

  • Land Use Charge: Tax revenue crucial for development

    The controversy over the reviewed Land Use Charge in Lagos State seems to have subsided. But what remains unchanged is that Lagos needs revenue to continue to deliver service to the people sustainably. Tax revenue is not only essential, but would enable the state to depend less on borrowed funds and bond issuances in realising its infrastructure, economic empowerment and security goals, writes COLLINS NWEZE.

    Tax is a legal instrument used in every society to achieve service delivery. It is a civic responsibility, and incumbent on every taxable individual and organisation to contribute to building the commonwealth.

    The recently-reviewed Land Use Charge Law in Lagos State has pitted the government against a section of the people, mostly the organised private sector, with some suggesting that the administration may have lost its goodwill with the citizenry.

    Yet, if one must be dispassionate, there is no doubt that the government needs to boost its revenue to continue to deliver service on a sustainable basis.

    A Lagos-based tax expert, Seun Olamilekan, said the Lagos State government had mainly relied on borrowed funds and bond issuance to transform the city, which is not sustainable in the long term, because the facilities are interest bearing and must be paid back.

    For instance, the recent debt figure released by the Debt Management Office (DMO) showed that Lagos has a domestic debt overhang of N533.6 billion. With federal allocation declining, it is clear that the government must be efficient in its tax revenue drive. For efficiency, effectiveness, and relevance it became expedient to reform the tax system, which the state government is doing.

    According to the government, rather than short-term thinking of political gains, it is determined to leave a legacy of prosperity for all and a functional Lagos, one that every resident will be proud of. So, it is ready to do what is right, even at the expense of its political health.

    It is unfortunate though that Lagosians have yet to fully appreciate the necessity of tax reforms and the engendering of a progressive tax system. In a show of good faith, however, and in consideration of the economic situation, several reliefs were built into the Land Use Charge law and the state government promised to continue to dialogue with all segments of society to find an agreeable rate. Following extensive dialogue and true to its promise, a further set of reductions to the Land Use Charge were introduced to the tune of 50 per cent for commercial properties.

    The Land Use Charge controversy may yet be a long road to travel, but the government’s single-mindedness and integrity may gradually be registering on Lagosians. Only recently, the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos State chapter, which had earlier opposed the law, pledged support for the revised Land Use Charge law.

    While Lagosians gradually come to terms with the new Land Use Charge law, they can hardly deny that the Ambode government has done well and would need to be supported through the exercise of their civic responsibility of tax payment if the Lagos of everybody’s dream must be achieved now and not tomorrow, because, really, tomorrow never comes.

    Governor Akinwunmi Ambode was faced with fixing the inefficient tax system in the state, which could be wrongly interpreted by the populace, thereby jeopardising his political future or consolidating his political goodwill by pretending all was well with the clearly obsolete and inefficient tax system. The governor chose the harder and rougher road towards consolidating his legacy.

    Olamilekan said the state government has over the past three years managed to build an unusual rapport with the people.

    “Unusual because what has, unfortunately, become the norm rather than being the exception is that there is often a wide chasm separating the governed from the government. As a result, many governments, whether federal, state or local, struggle to gain the sympathy and trust of citizens, which makes policy implementation and other government initiatives sometimes difficult to achieve or appreciate,” he said.

    According to him, the Ambode-led government, it would seem, has managed to bridge that invisible but ever present disconnect between the ruled and the ruler in the country. Such trust is no doubt built on noticeable and people-friendly policies and initiatives, which is not in short supply in the Ambode administration. Coupled with the mass-oriented developmental agenda of the administration is a commendable predisposition to empathise with and listen to the people and draw insights with which to further develop the state and make it livable for residents.

    The administration had stated it planned to focus attention on infrastructure, economic empowerment, and security. And so far, it has covered much ground in the delivery of value in these areas.

    Analysts said housing remains a huge challenge in Lagos; the housing deficit is put at 2.5 million units. To address this, the government embarked on massive construction of affordable housing estates. More than 27 low- to mid-income housing estates are under construction/redevelopment or completed and assigned across the state in Mushin, Oko-Oba, Igbogbo, Ojo/Igando, Lekki, Sangotedo, Ikota, Ojokoro, Ogba, etc. Often, such housing schemes are hijacked and acquired by speculators and real estate investors, which effectively defeats their purpose.

    As part of its economic empowerment commitments, the government budgets N6.25 billion yearly to its N25 billion Lagos State Employment Trust Fund, targeted at supporting about 100,000 micro, small and medium enterprises and creating at least 300,000 direct and 600,000 indirect jobs by 2019. So far, more than 5,893 businesses have been given about N5 billion. This year, over N700 million has been approved for 1,753 beneficiaries.

    Perhaps the most noticeable and appreciated intervention of the Ambode administration has been its road infrastructure projects because that affect all strata of society. Commuting in Lagos in the past was very challenging. Commuters spent an average of four hours in traffic daily on most routes due to bad roads, poor road networks/management, and inadequate alternate routes, among others. That had serious implications for productivity and the well-being of Lagosians. But through road expansions and maintenance, opening up of alternate routes, construction of lay-bys, bus stops, interchanges, and pedestrian bridges, commuting within the metropolis has improved tremendously.

    In demonstration of strategic thinking, usually associated with the private sector, the Ambode administration, determined to boost food production in the state, collaborated with the Kebbi State government to produce and market food items such as rice, sorghum, wheat, groundnut, and livestock at subsidised rates, starting with rice.

    Expectedly, people have warmed to the administration and it has enjoyed tremendous goodwill among the residents and even outsiders. Last year, the Federal House of Representatives Committee on Basic Education and other Services, led by its Chairman, Zakari Muhammed, on tour of projects executed under the State Universal Basic Education Projects (SUBEB) across the country, lauded the government for “embarking on schools infrastructure projects that are impacting positively on the delivery of quality education in the state,” and expressed satisfaction with the “quality of materials used in most of the schools visited.”

  • Land Use Charge as tool for development

    States in Nigeria can no longer depend solely on income from petroleum products because of the fall in sales price of this national income-earner and the continuous discovery of numerous alternatives to petroleum products as sources of energy which means that federal allocation will continue to dwindle. Real estate sector is a veritable tool for economic development of nations – developing and developed and Nigeria is in economic turbulence due to inefficiency of governments to explore real estate sector, lack of human capacity to efficiently manage real estate opportunities and over-dependence of government on oil and gas incomes, natural resources and personal and corporate taxes.

    Property taxation, which is part of real estate opportunities of income generation, must take into consideration the Canons of Taxation as propounded by Adam Smith in his famous book “The Wealth of a Nation”, which stated that property taxes must be equitable, certain, convenient and economical. Five more canons of productivity, elasticity, simplicity, diversity and desirability or expediency were later added by other economists.

    Real estate is a sure sector of income generation for states. Real estate is defined as landed property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property. Real came from the Latin word ‘res’, meaning ‘things’. Others claim it was from the Latin word ‘rex’, meaning ‘royal’ since kings owned all land in the past. Real estate sector is the sector of the economy that caters for the physical infrastructure development and management like building, bridge, dams, roads, railways, waste management etc. There are different types of real estate. These are: residential, industrial, commercial, agricultural, transportation, recreation, tourism, educational, medical, sports etc. Nigeria, as a country, is a piece of real estate.

    The primary aim of any government is to provide enabling environment for the people through ensuring that there is adequate security, giving hope to the downtrodden and providing succour to the vulnerable. Government is the body that is constituted or put in place by the people to provide a level playing ground for every resident. Thus, the primary purpose of government is to make sure everybody can live safely and comfortably, irrespective of class, without molestation and oppression by a third party (The Constitution of the Federal Republic of Nigeria 1999, Chapter 2, Section 14, Sub-section 2b).

    It is therefore, not out of tune, for governments all over the world, to control the land-based resources of the states and manage them effectively for the benefits of the generality of the people. One of the raisons d’être for the formation of governments is poverty reduction and this is because urbanization, modernism and globalism which are daily occurrence in the world, bring with them the negative feature of widening the rich and the poor gap. It is this steadfast widening gap between the rich and the poor that is called ‘relative poverty’. Abject poverty affects those that live on less than one dollar a day, according to United Nations Organisation (UNO) and it is ravaging Africa. Poor Relief Act 1601 (Elizabethan Act), which aimed to bridge the gap between the poor and the rich, led to land-based taxes. The Poor Relief Act 1601 was an Act of the Parliament of England. The Act for the Relief of the Poor 1601, popularly known as the Elizabethan Poor Law, created a poor law system for England and Wales.

    Different types of property taxes are available in Nigeria and the benefits of efficient land-based tax management cannot be over-emphasised. Land-based taxes management is still rudimentary in Nigeria. There are over 15 potential land-based taxes that can be exploited in Nigeria, using Global Best Practices including tenement rate, development levy, neighbourhood tax, withholding tax, capital gain (appreciation) tax, capital transfer tax, waste management tax, consent fee, building approval charge, building alteration levy, inheritance tax etc. High dependence on oil as income generator, lawlessness in the high places, lack of enforcement of laws, low capacity building for land-based tax management and the high level of corruption in the country account for the low patronage of land-based taxes.

    It is the prerogative of the governments to charge land-based taxes and to determine how they want to determine the amount to pay, when to pay and who to pay. The majority of U.S. cities apply a singular tax rate to both the land and the buildings. In the Pennsylvania cities like Pittsburg, Harrisburg and Scranton, split rate property tax is applied and the land is taxed higher than the property on it. This is practiced so that land speculators will not just buy land and sit on it. In Nigeria, vacant lands are not charged or levied thereby creating room for speculation. The various ways in which land resources are controlled and/or managed by governments include: (i) Power of Eminent Domain (Chapter 4, Section 44, Sub-section 1 and 2 (a) to (m) of Nigerian 1999 Constitution). This is the power of the government to take a private property and convert it into public use, (ii) Consent and Development Approval on the use of land by the governor or his or her representative/s mostly Governor’s office and Ministry of Land, Planning and Physical Development, (iii) Planning Laws including Development and Building Control Laws and (iv) Land-based and Property charges, levies, taxes, rents and rates.

    Land Use Charge is the consolidation of some (not all) property and land-based rents, levies, rates, taxes and charges payable under various land-based and property laws such as Land Rates Laws (Land Use Act 1978, Chapter L5, Laws of the Federation of Nigeria 2004, Part II, Section 10 (a) and (b) Tenement Rates Law (the Local Government Act of 1976). Aside this Land Use Charge, inheritance tax at 10 per cent of the capital value of the property to be inherited will still be paid to the Probate Registry of state high courts for the purpose of procuring “Letter of Administration” from the governor or else, the management of the property by the heirs or administrators or successors-in-title becomes illegal. In some countries, capital transfer tax is 40 per cent of the capital value of property to be inherited.

    Land Use Charge is a global best practice in property taxation in which some of the land-based and property taxes, charges and rates like ground rent, neighbourhood improvement levy, tenement rate etc are consolidated, billed and collected as a one-off charge for ease of payment by property owners. This is based on the fact that it will be cheaper and easier to charge some related and annual property and land-based rents, rates and levies together and shared between the concerned stakeholders (state and local governments). In Scotland, United Kingdom, this Land Use Charge plus waste management levy, water rate and security tax is called Council Tax. The monthly charge is as high as monthly rent and is payable by the occupier of the house and not the owner. Land Use Charge’s efficient administration is a good way of generating employment and income for some people who are in charge of determination of amount due, collection and punishing defaulters.

    The Nigeria constitution makes each local government the collecting authority of tenement rate within its territory. However, section 1(3) provides that each local government may, by written agreement, delegate the collection of rates and assessment of privately owned houses or tenement to the state. See Knight Frank &Rutleyvs A.G. of Kano State [1990] 4 NWLR (Pt.143) 210″. The consolidation of these taxes and rents by a single authority makes it efficient, effective and economical for the government to collect and property owners to pay their bills. Every land-based and property charge, rate and rent law envisage that there will be defaulters and clearly states penalties. Land Use Charge is an unavoidable tool of poverty reduction, income generation and infrastructure development.

    The Lagos State government has all rights to charge property taxes and the imbroglio that the 2018 review of charges caused was as a result of the high tax burden on the people. Real estate covers a wide array of areas and is the surest tool of economic development. Lagos State government should put in place measures that will make it possible to collect land use charge from as many payers as possible as the current payment rate of less than 10 percent is discriminatory. Government must engage professional Estate Surveyors and Valuers to determine property values because value determination is not only a science, but also an art, and to efficiently explore income opportunities in the real estate sector for the government.

     

    • Oyedele, MPhil., ANIVS, RSV, is an Estate Surveyor and Valuer based in Osogbo.