Tag: economic

  • New Dimensions in the Long Revolution: Coded battles for economic and political modernisation of Nigeria

    New Dimensions in the Long Revolution: Coded battles for economic and political modernisation of Nigeria

    Honorable members of the board, it is a pleasure to welcome you to this inaugural meeting of The Nation Journalism Foundation. We live in very interesting times when events happen at a furious and breakneck speed, often inducing generalized apprehension and an eerie sense of disorientation among the populace and the ruling classes themselves. It has been said that journalism is history in a hurry. But we live in a world where unfolding events themselves in their wild improbability and sheer impossibility make history itself feels like fiction in a hurry. In such circumstances, history, however outlandish and improbable it appears, remains the infallible guide and guardrails.

    It seems like yesterday, but it is coming to almost twenty years ago when this writer delivered an inaugural address on May, 6th, 2006 at the launch of Sahara Reporters at the Empire State Building in New York. The address was titled, The Blogger As Nemesis. In our detailed analysis, we drew attention to the emergence of blogging as a profession in Nigeria, a development which we thought would put paid to the dominance of official news and information and the complicity and collusion of the mainstream media, sections of which had played a heroic role in the termination of military rule, with official lies and mendacity.

      Almost twenty years after, we can look back with the benefit of hindsight and through the prism of our current perplexities and perturbation as a nation to that particular period of our national life. It was coming to the tail end of the Obasanjo post-military dispensation. The euphoria about seeing off the military to the barracks was beginning to wear off. New national contradictions had made their way to the centre stage. In fairness to the Owu-born general, he had run a fairly competent if not visionary economy. Obasanjo’s project of formal demilitarization was also brilliantly executed with the support of old military acolytes like General Theophilus Danjuma.

    Obasanjo

    It was in the next phase of deepening the democratic process that Obasanjo came a sad cropper. In fairness to the general, you cannot give what you don’t have. The general was particularly ill-equipped for this task. He had already stoked the fire of future instability through the perplexed levity with which he handled the sharia challenge to his suzerainty and his heavy-handed devastation of Odi and Zaki Biam communities. Despite setting up the EFCC as a proactive corruption-fighting organization, the issue of the third term gambit, and the outlandish bribery that went with this, set the tone for the political and economic malfeasance that has dogged the Fourth Republic. After that, Obasanjo was a spent force waiting to unleash the final damage to the country in the form of a succession programme that lacked both integrity and fairness. The remaining time also afforded him the opportunity to complete the electoral brutalization of his own people.  

    The address at the Empire State Building at the launch of Sahara Reporters presages and projects the rise of the impish and intrepid former Student Union leader to the portals of global superstardom in the crucible of disruptive communication and instant news dissemination. At that point in time, Sowore was not a trained journalist. Neither was he known to have taken any internship in any newspaper house. And it was not as if he was a lone moral exemplar in a dark void. He was merely cuing in, shrewdly and probably intuitively, to the shattering of the old canons of journalism by the advent of disruptive developments such as the rise of the internet, the abolition of the old notions of time and space by globalization, the irruptions of new modes of mass communication which bypass the ancient fossilized newsroom and its archaic and decaying typesetters as well as the arrival of the new phenomenon known as Citizens’ Journalism.

    It is as rowdy and disrespecting of the old order and its institutional restraints as anybody can imagine. Anybody with an access to a computer and an upmarket phone is a prospective journalist. And anybody with a modern lap top is a publisher in waiting. For a postcolonial society which had just managed to throw off the yoke of military tyranny in the course of a long transition to modernity, it has been quite a journey from the epoch of Public Letter-writers who served as the solitary channel for communicating private grievances to the colonial authority to the age of bloggers who can call out anybody on anything.

    That bright and clear New York morning, the Empire State Building where the launch of Sahara Reporters took place was sparsely populated. Although fairly well-known as a student union leader, particularly famous for wrestling the late Admiral Joseph Okhai Akhigbe to the ground over a dispute about examination time table while the latter moonlighted as a Law student at the University of Lagos, he was yet to enter proper national consciousness at that point in time. The place was filled with Sowore acolytes and a few die-hard admirers. Yours sincerely was in the habit of infiltrating Sowore into complacent and complaisant ancient Yoruba circles in seedy dimly lit drinking joints of Brooklyn and Queens in New York for dueling matches over political developments back in Nigeria which were as rowdy as they were filled with friendly imprecations and joyous expletives.

    Read Also: Akpabio flags off medical outreach to support Tinubu’s Renewed Hope agenda

    Taking one to the airport later that year, Sowore noted cryptically that the Yoruba were withdrawing their intellectuals and that something was cooking. What was cooking was an inch by inch Normandy Beach-like operation to retrieve the region from General Obasanjo’s electoral blunderbuss. It ended four years later as Rauf Aregbesola triumphantly reclaimed his stolen mandate. Meanwhile in the intervening eighteen years, Sowore had transformed himself from a democratic street fighter, a sophomore samurai, an equal opportunity protester to the baron of disruptive communication, a master of insurrectionary journalism and globally lionized star of the post-military protest in Nigeria whose exploits and derring-do at the behest of his nation are permanently etched in the memories of his contemporaries.

    One may of course disagree with Sowore’s method and tactics, his rather ill-conceived notion of revolution as Espresso Coffee. But it is a measure of the young man’s amazing transformation and emergent national stature that a few days back, he successfully called out the nation’s premier crime bursting agency over its decision to conceal the identity of the nation’s biggest ever would be landlord. To be sure in doing this, the EFCC might be acting under some furtive gambit of secret negotiation to achieve maximum result but in a nation tired of official collusion and complicity with humongous crimes against the commonwealth, it was no surprise that it blew in its face. This is how far we have come in the battle against state criminality and we may have the advent of citizens’ journalism and disruptive countervailing disclosure of information to thank for this development.

    Going forward, it should now be clear and straightforward that we can no longer rely on fighting state criminality and economic heists committed against the nation by relying on old methods and methodology. Because Nigeria is struggling to be free of the hegemonic shackles of an entrenched plundering ethos derived from harmful worldviews that have kept the nation in a permanent state of normless levitations, it is going to be a hard slog; a brutal toe to toe contention.  We are in for a long revolution.  Contrary to Sowore’s own notion of instant revolutions characterized by brisk victories and irreversible gains, a long revolution is often accompanied by momentous slides and reversible momentum. Battles you thought had been fought and won simply come back to haunt you in another guise. Instant revolutionaries of yesterday dissolve into thin air. The shambolic state of Labour Party and its now motorized bicycle riders ought to serve as a telling reminder that ersatz revolutions not based on acute and accurate reading of the totality of circumstances of a multi-ethnic nation are dead before arrival.

    The current political hostilities over tax reforms are nothing but coded battles for the political and economic modernization of the country. They are just the tip of a huge iceberg and it is imperative that economic modernization is accompanied by political modernization, otherwise modernization is imperiled by counter-modernizing forces in their hegemonic resilience and resplendency. Unless the modernizing forces thrown up by the contradictions of the moment manage to discover the pan-Nigerian concert needed to impose a modernizing hegemony on the current chaotic ensemble, nothing can be guaranteed.

    This is why there is something fortuitous and fortunate about the coming of The Nation’s Journalism Foundation at this particular time. Eighteen years into the advent of Sowore and Sahara Reporters, the political situation appears more complicated while the reality is even more colorful in Nigeria. Although powerful blows have been struck against the ramparts of authoritarian misrule and savage despotism, their Praetorian Guard remain intact. The full arrival of Artificial Intelligence (AI) and the debut of even more sophisticated modes of faking reality (Deep Fake) have led to a deepening of doubt about official disclosures and the officiality of any disclosure itself.

    While the living tremble in fear, even the dead are rattled in apprehension. In the fierce struggle to debase and defame reality, actual reality appears unrealizable, a mere approximation of the real thing. We have arrived at the post-public preview or purview as the case may be. Who in his right mind would have believed that it is possible for an Accountant General of a federation to steal almost the entire federal coffer under his care, or that a serving official would build for himself an estate of over seven hundred duplexes while invoking the bible? Actual reality is unrealistic, as Franz Kafka will put it.

    This is the intriguing environment in which The Nation’s Foundation for Journalism will operate. There is a plethora of other organizations operating in the field. It will strive to distinguish itself by refining its own operative parameters. Based on its antecedents, it cannot, and will not, project itself as an adversarial antithesis to the state. Rather, it will promote active dialogue with state and non-state actors, seek occasional interactive engagement with officialdom, open its portals to countervailing views as long as they operate within the bounds of decency and decorum and actively seek the maximum welfare of traditional journalists through constant workshops, interdisciplinary training  with relevant national and international agencies and programmes of retraining and retooling as well as exposure to emerging trends in the profession.

    The present generation can only do its best, hoping to pass the baton to future generations. Thank you all.

    •Being a welcome address to the inaugural meeting of the Board of Trustees, The Nation Journalism Foundation by the Chairman of the board, Professor Adebayo Williams held on Wednesday, 4th December, 2024.

  • Q4 2024 Economic Outlook: Are experts’ optimism something to cheer about?

    Q4 2024 Economic Outlook: Are experts’ optimism something to cheer about?

    With 80 days still remaining in the last quarter of 2024 the received wisdom out there especially by those who have seen the interplay of policies and reforms by the President Bola Tinubu-led administration is that this would have rippled positive effect on the economy in the short, medium to long terms starting from the year end, reports Ibrahim Apekhade Yusuf

    Everybody dey pepper because hunger dey everywhere. But I get hope say everything go soon dey alright.”

    The above staccato English repeated verbatim here was the terse statement by Solomon Efetobore, a phone accessory vendor at Ikeja Computer Village, in Lagos, who spoke with our correspondent some time ago when the latter sought to know how he was coping with the biting economic crunch.

    The Urhobo native whose name literally means ‘wealth has been achieved’ is convinced like many other segments of the populace that things would turn around for the better in a matter of time. 

    Fresh optimism over reforms agenda

    In what may well be a morale booster of some sorts to Nigerians President Bola Tinubu has assured that all the reforms being spearheaded by his administration has the potential to turn things around.

    The president, in a release issued by his Special Adviser on Information and Strategy, Bayo Onanuga, recently, expressed confidence in the reforms his administration is pursuing and believes they will create a more robust economy that will usher in a new era of prosperity for Nigerians.

    Generally, the economic indicators, which were very low when President Tinubu assumed office last year, are turning positive.

    The government, according to the statement, will continue to consolidate on the gains of the reforms as more fiscal and tax policy reforms already embarked upon by the administration come to fruition.

    The president, the release stated, is determined to confront the inhibitions that have stunted the growth and development necessary to unlock the country’s full potential.

    Just days after the country recorded almost 100 per cent oversubscription of its first $500 million domestic bond and half-year revenue of N9.1 trillion, the latest report underscores the increasing positive shifts in the economy over the last year.

    This is just as the National Bureau of Statistics’ (NBS) new report on the country’s trade balance revealed that the trade surplus in the second quarter of 2024 was N6.95 trillion.

    The current surplus is 6.60% higher than the N6.52 trillion surplus recorded in the first quarter.

    The NBS report reflected the country’s strong export performance in the second quarter.

    Although total merchandise trade in Q2 2024 stood at N31.89 trillion, a 3.76% decline compared to the preceding quarter (Q1 2024), it marked a 150.39% rise from the corresponding period in 2023.

    The NBS reported that the Q2 surplus was essentially driven by exports to Europe, the United States and Asia.

    Total exports stood at N19.42 trillion, accounting for 60.89% of the country’s total trade. This represents a 1.31% increase from N19.17 trillion in the first quarter and a 201.76% surge from N6.44 trillion recorded in Q2 2023.

    The dominance of crude oil exports remains a key factor in this performance, contributing N14.56 trillion, or 74.98% of total exports.

    Non-crude oil exports, valued at N4.86 trillion, comprised 25.02% of the total export value, with non-oil products contributing N1.94 trillion.

    The strong export performance, particularly in crude oil, ensured Nigeria maintained a favourable trade balance.

    In Q2 2024, European and American countries dominated Nigeria’s top export destinations.

    Spain emerged as the largest export partner, receiving goods valued at N2.01 trillion, accounting for 10.34% of Nigeria’s total exports.

    The United States followed closely with N1.86 trillion (9.56%), while France imported N1.82 trillion of Nigerian goods, representing 9.37% of total exports.

    Nigeria’s other major export partners include India (N1.65 trillion or 8.50%) and the Netherlands (N1.38 trillion).

    Echoing similar sentiments, the Institute of Chartered Accountants of Nigeria (ICAN), while applauding the Federal Government for the steady growth, however noted that there is a need for the latter to take decisive action in addressing critical economic challenges bedevilling the country.

    Read Also: Tinubu administration ‘ll reverse growing unemployment rate — Shettima

    Some of the decisive actions canvassed by the association include fixing the nation’s refineries and, at the same time, encouraging private sector investment in that sector; review of the process of determination the foreign exchange rate in the country in order to establish the true value of the Naira amongst others,

    ICAN President, Chief Davidson Alaribe made this call in his address at the 2024 Annual Conference of the Institute at Abuja themed – “Governance Reimagined: Mapping the Future and the Plenaries.”

    He stressed that it was time for concrete actions to revive the nation’s economy.

    “I urge you to take decisive action in addressing critical economic challenges. The government must focus on fixing the nation’s refineries and, at the same time, encourage private sector investment in that sector.

    “This will ensure an adequate supply of fuel at affordable prices, reducing our dependence on imports and creating stability in the energy market.”

    On the issue of FX reforms, the ICAN President also called for a review of the process of determining the foreign exchange rate in the country in order to establish the true value of the Naira.

    “There is a pressing need to revisit the current exchange rate determination process.

    “A thorough review will help establish a true value for our Naira, which is essential for strengthening our currency, boosting investor confidence, and enhancing the overall economic stability of our nation,” he said.

    In addition, Chief Alaribe also called for the establishment of a National Economic Recovery Committee to help return the economy to a growth level that would positively impact ordinary Nigerians.

    He said, “I urge the government to establish a National Economic Recovery Committee, comprising representatives of professional bodies, traders, religious and civil society organisations, academia, students, traditional rulers, and private sector organisations.

    “This committee should analyse the current state of the economy and provide actionable recommendations for improvement, with the assurance that its report will receive prompt consideration and implementation.”

    A divergent view

    In the view of Mr. Gabriel Idahosa, President & Chairman of Council at the Lagos Chamber of Commerce and Industry (LCCI), there is a lot still missing as far as growth acceleration is concerned.

    Idahosa, in a recent statement to commemorate the nation’s 64th Independence anniversary urged the federal government to fight to stabilise the economy.

    While acknowledging that the Gross Domestic Product (GDP) grew in 2024 Q2 by 3.19% year-on-year in real terms, making it the fifteenth quarter of growth, he was however quick to admit that the oil sector grew by 10.15% in Q2 2024, making it the third quarters of significant growth since the last quarter of 2023, but further argued that oil production remains suboptimal due to insecurity and oil theft. To address these issues, the government must proactively address the recent challenges bedeviling the oil and gas sector.

    “The non-oil sector grew by 2.80% in the second quarter, the same as the growth in the first quarter. Regarding activities, the non-oil sector accounted for 94.30% of the total GDP in Q2 2024. We urge the government to continue with the non-oil campaigns and interventions to sustain the targeted financing for boosting non-oil exports for enhanced and diversified foreign exchange earnings.

    “The growth of 1.41% recorded for agriculture, 1.28% for manufacturing, and 0.70% for trade are comparatively low compared to other sectors that grew above 4%. This also indicates the threats facing these sectors that power Nigeria’s real sector. The woes in these two sectors are responsible for the frightening rise in our inflation rate. Real sector activities may be constrained in the coming months with the excruciating burden of worsening insecurity, exchange rate volatility, high interest rates, and rising debt service.

    “The quality of the business environment remains a source of concern to investors, especially in the real sector. Weak infrastructure, uncertain policy environment, and institutions have continued to adversely affect many economic enterprises’ efficiency, productivity, and competitiveness.  These conditions pose a significant risk to job creation and economic inclusion across sectors.

    “The Federal Government needs to sustain its targeted interventions in selected critical sectors like agriculture, manufacturing, and export infrastructure, tackling insecurity and freeing more money from subsidy payments. We urge the government to tackle oil theft to earn more foreign exchange, borrow from cheaper sources to reduce the burden of debt servicing and take a decisive step towards removing fuel subsidies.

    “Beyond achieving economic growth, the government must redesign the models of running our healthcare service delivery and education in order to improve our Human Development Index (HDI). We recommend a model that allocates more funding for the education and healthcare sectors. At the same time, the private sector operators need a well-regulated business environment that allows only the best quality providers to operate in these sectors.

    Like the LCCI, like Proshare

    Proshare, a repository of investment and market research in key commanding heights of the economy, which have been following the trajectory of the current administration, would rather the economic managers not be complacent with the little gains it has seen around some of its key fundamentals because it is just scratching the surface.

    In its Q4 2024 Outlook in Numbers – Economic Outcomes & Thoughts cited on its website, Proshare observed that although the message of ‘renewed hope’ has continued to reverberate through the Nigerian economy in the first three quarters of 2024 under President Tinubu but the reality paints a different scenario altogether.

    It was however quick to note that the two difficult but necessary reforms undertaken by the current administration in mid-2023: petrol subsidy removal and foreign exchange liberalisation, were expected to shift the natural order of key indicators and trigger some socio-economic benefits for the country.

    “Nigeria’s gross domestic product (GDP) growth rates have shown the resilience of the Nigerian economy, remaining positive over the past quarters. However, growth has bucked the desired 7% rate targeted by the federal government, stalling at roughly around 3%. The slower 3% growth rate challenges the government’s goal of achieving a US$1trn economy by 2030.

    “As inflation trended upward over the last few quarters, rising consumer prices bit deeper into households’ real purchasing power as prices rose due to higher business costs amidst a currency slide.

    “The government spending plan for 2024 was readjusted to accommodate an expansion by N6.20trn Naira, of which N3.2trn was reserved for capital projects while N3.00trn was to accommodate recurrent obligations due to a national minimum wage increase.

    “Deterioration in public finances posed a problem as the government exploited debt options to meet obligations. The country’s fiscal stance pushed the nation’s debt up. Higher debt, slower growth, and larger deficits remained a risk to the stability goal of the CBN.

    “Liquidity inflows have doubled over the past quarters; however, liquidity challenges may recur as inflows remain driven by foreign portfolio investments (FPIs). Growth in foreign direct investment (FDI) flows in 2024 has marginally moved above the $94.34mn average of 2023; however, the constrained macroeconomic environment, energy crisis, infrastructural deficit and insecurity have not provided an attractive enough environment for FDI inflows.

    “The economy’s growth sectors consist of multiple activities; however, the significant growth sectors are single-activity. At least 50% of each sector’s performance remains driven by a single activity. Policy enactments aimed at restoring/rekindling hope amongst Nigerian households fell deeper and deeper into a cost-of-living difficulty. Inflation remained largely upward trending while the real value of household purchasing power gradually diminished, eroding over 60% despite an increase in the minimum salary to N70,000 from N30,000.”

    On the outlook and assumptions for the Nigerian economy in Q4 2024, Proshare specifically said the GDP growth will peak above 2.5% but below 3.5% in Q4 2024, driven by demand growth due to the festive period and trade surplus position.

    “Nigeria’s inflation rate will lose growth momentum but remain above 35% in Q4 2024. Population growth at about 2.4% to present increasing consumption demand and excess labour supply. The unemployment rate should rise slowly in Q4 2024 to above 5.5%. Debt to GDP ratio to remain above 50% in Q4 2024 as debt obligations rise while growth stagnates.

    “Fiscal imbalance will increase as exploration of alternative funding sources yields marginal results. Trade surplus should persist in 2024 as imports slow due to exchange rate volatility and strong exports. Nigeria’s oil production will rise between 1.5mbd and 1.65mbd as security and surveillance heightens. The temporary minimum wage increase will yield a minimal real impact on house purchasing power.”

    Enter Dangote Refinery

    Will Dangote Refinery rescue the economy from the doldrums? That has been one hotly debated issue since the refinery came on stream and lifted its first refined products a few weeks ago.

    While offering a plausible explanation, Dr. Afolabi Olowookere, MD/Chief Economist at Analysts Data Services and Resource in what appears to be his self-assessment of the situation said the success of the Dangote Refinery will depend on a combination of factors and not just one.

    Olowookere in his analysis encapsulated in a position paper as follows: ‘Impact of Dangote Refinery on the Nigerian Economy, If Allowed to Breathe Freely’, argued matter-of-factly that the multi-billion dollar project with the potential to provide significant backward and forward linkages with the Nigerian economy.

    Buttressing his position with facts and data, the CEO of ADSR said the refinery is one of the largest single-train refineries in the world with the initial capacity to process about 500,000 barrels per day, increasing to 550,000 bpd by the end of the year, and aiming for 650,000 bpd by the first quarter of 2025.

    Besides, he said the refinery is expected to produce 10.4 million Tons (Mt) of gasoline, 4.6Mt of diesel, and 4Mt of aviation fuel annually. It includes the world’s largest subsea pipeline infrastructure, spanning 1100 kilometers. It also features a 435-megawatt power plant to meet its energy demand.

    At full capacity, it has the potential to meet the Nigerian requirement of refined products and also have a surplus for exports. Full operational capacity is anticipated by 2025, with the ability to load up to 2,900 trucks daily for distribution.

    On the impact of Dangote Oil Refinery, Olowookere said it is expected to positively affect many sectors and aspects of the Nigerian economy in many ways than one.

    “The oil refining sub sector of the manufacturing industry has been on the negative growth side for a couple of years now due to the poor functioning of the country’s refinery. Dangote refinery, which has a capacity of 650,000 barrels per day, is expected to meet 100 Nigeria’s demand for refined petroleum products and have a surplus for export. This can in turn boost industrialisation by supplying refined products to various sectors. It will also improve the performance of the manufacturing sector with the 14 subsectors underneath it, thereby enhancing the output of the manufacturing sector.”

    Expatiating, he said, “The operation of the Dangote Refinery would lead to the creation of thousands of direct and indirect jobs. This can have significant positive impacts on the economy, including stimulating economic growth, increasing tax revenues, improving fiscal stability, and reducing inflation. This can have significant positive impacts on the economy, including stimulating economic growth, increasing tax revenues, improving fiscal stability, and reducing inflation. With reduced imports and the potential for export of surplus refined products from Dangote refinery, Nigeria’s trade balance is expected to improve. This would contribute positively to GDP growth and economic stability.

    “Improved investments in the upstream, midstream and downstream sub-sectors will facilitate growth. The reduction in fuel subsidies, which the government spends heavily on, could free up fiscal resources for other developmental projects.”

  • 30th summit to tackle key economic issues

    30th summit to tackle key economic issues

    Nigerian Economic Summit Group (NESG) has  said NES #30 will feature High-Level Panels addressing challenges affecting Nigeria and global economy.

    The summit: “Collaborative Action for Growth, Competitiveness, and Stability,” is on October 14 to 16, in Abuja.

    NESG, in a statement by Head of Strategic Communication and Advocacy, Ayanyinka Anyanlowo, said the summit aims to generate discussions on economic growth, competitiveness, and stability.

    The statement noted that the panels  comprise policymakers, business leaders, and international stakeholders, to share diverse viewpoints and foster collaboration.

    Each panel will focus on key issues as fiscal reforms, revenue optimisation, and debt management in post-COVID-19 er a.

    Discussions will centre on strategies to ensure fiscal prudence and long-term economic security.

    Read Also; Stop distracting Tinubu with 2027 presidential election- Mumuni warns APC chieftains 

    Other  topics to be addressed include closing infrastructure gap, supporting Small and Medium Enterprises (SMEs), and ensuring energy security.

    Panels will also tackle access to finance, reforms, and public-private partnerships to improve infrastructure and promote sustainable growth.

    Security will be another major focus, with discussions on mitigating threats to businesses and individuals in partnership with Nextier.

    However , it noted, monetary policy will be re-examined, exploring ways to tailor policies to support growth, financial stability, and credit flow, in light of inflation and rising interest rates.

    NES 30 promises to offer a platform for experts from various fields to share global examples, identify actionable steps, and drive positive change for Nigeria and Africa.

  • The successful Eastern Economic Forum, Far East Development to reshape global dynamics

    The successful Eastern Economic Forum, Far East Development to reshape global dynamics

    Recently, the 2024 Eastern Economic Forum successfully took place at the Far Eastern Federal University in Vladivostok. Themed “Far East 2030: Working Together to Create Opportunities,” this high-profile event drew global attention, with approximately 7,000 participants from 75 countries and 292 agreements signed, totaling 5.5 trillion rubles.

    It is evident that Russia has set high expectations for the development of its Far East. Currently, facing a barrage of sanctions from the West—over 10,000 in total—and an ongoing conflict that has essentially become a battleground between Russia and NATO, Russia must pivot its strategic focus eastward for growth. This shift is impossible without cooperation with China. After the outbreak of the Russia-Ukraine war, collaboration with China became Russia’s only viable path to counter Western sanctions.

    Read Also: Paths to Africa’s unity, economic empowerment, by expert

    The Far East is far from major Russian cities like Moscow. Despite its abundant natural resources, the region’s poor infrastructure has hindered development. Past Russian subsidies failed to reverse the population decline, turning the area into a financial burden for the country.

    Now, things are changing. China and Russia, as “comprehensive strategic partners,” see the potential in developing the Far East. China’s formidable infrastructure capabilities could transform the region into a resource-rich land, benefiting both nations economically.

    The Russia-Ukraine war has made Russia realize that China is the only nation willing and able to support its survival amid Western blockades. From the upcoming China-Kyrgyzstan-Uzbekistan railway to Far East development and the Tumen River cooperation projects, Russia’s unprecedented openness to China underscores the emergence of the best partner and anti-hegemony ally in the current global landscape.

    Notably, among the 75 countries participating in the 2024 Eastern Economic Forum, 16 are from Russia’s list of “unfriendly nations”—countries allied with the U.S. This shows two things: first, the Far East’s development is so attractive that even some Western nations are enticed, and second, Western unity may not be as strong as it seems. Many Western countries sanctioned Russia under U.S. pressure, but as interests shift, cracks in the Western bloc are emerging.

    The close cooperation between China, Russia, and other developing nations is creating mutual benefit, while the Western alliance—held together by coercion and pressure—may face further internal fractures. How long can the Western bloc hold together? The future remains to be seen.

  • Fed Govt woos banks for accelerated economic growth

    Fed Govt woos banks for accelerated economic growth

    • Elumelu: security, investments, youths major enabler

    The Federal Government yesterday re-emphasised its plan to restore confidence in the Nigerian economy, calling on banks and other financial institutions to support ongoing economic initiatives.

    At the 17th Annual Banking and Finance Conference organised by the Chartered Institute of Bankers of Nigeria (CIBN) yesterday in Abuja, the government outlined that it was implementing both short and long-term strategies to restore confidence in the Nigerian economy. The theme of the conference was: “Accelerated Economic Growth and Development: The State of Play and the Way Forward”.

    President Bola Tinubu urged the business and banking community to prioritise capacity building, talent development, and youth empowerment as essential drivers of Nigeria’s future economic growth.

    Represented by Vice President, Senator Kashim Shettima, Tinubu said that the government in its drive to promote financial inclusion and drive innovation, has placed a priority on the digital economy.

    According to him, through programmes like Digital Nigeria, the government is expanding broadband access and fostering the growth of tech startups.

    He said that the government is currently training three million Nigerian youths in digital technology and essential skills, with plans to deploy them to innovation firms across the country.

    Tinubu said: “We are committed to achieving a 70 percent digital literacy level by 2027 through collaboration and innovation.

    “We must focus on capacity building, talent development, and youth empowerment. These are the hands of our youth, and we must equip them with the skills, knowledge, and opportunities needed to drive our nation forward.

    “The journey ahead will require determination, but I am confident that with the support of the Nigerian banking and finance sector, we can accelerate economic growth and ensure prosperity for all Nigerians.”

    He noted that measures to reduce inflation, stabilise the foreign exchange market, and improve fiscal management have started to yield results, pointing out that the removal of the fuel subsidy, was a key short-term strategy aimed at freeing up budgetary resources for critical investments in infrastructure and social services.

    “Our focus is on strengthening infrastructure development,” Tinubu noted, highlighting the administration’s commitment to upgrading roads, railways, and energy projects through public-private partnerships.

    “We are reducing transportation costs and improving market access by investing in infrastructure that supports economic growth,” Tinubu said.

    He further stressed the importance of financial inclusion, noting that formal financial inclusion in Nigeria grew from 56 per cent in 2020 to 64 per cent in 2023, adding that this progress has been driven by increased bank access and advancements in non-bank areas, such as mobile money services.

    He reaffirmed his administration’s commitment to climate finance and environmental sustainability, citing green bond programme and partnerships with international development agencies as key initiatives for mobilising resources to fund projects aimed at reducing Nigeria’s carbon footprint.

    Speaking on fiscal policies, Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, assured that the ongoing reforms are expected to help Nigeria achieve a 3.7 per cent economic growth target by the end of the year.

    “The oil and gas sector saw a 10 per cent increase in the second quarter, while the non-oil sector maintained steady growth at 2.8 per cent,” Edun said.

    He however acknowledged that challenges remain in sectors like transportation, manufacturing, and retail trade due to economic shocks.

    To alleviate transportation costs, Edun announced plans to enhance the supply of Premium Motor Spirit (PMS) by 25 million liters starting in September, through the Dangote refinery. The procurement of biofuel buses and compressed natural gas (CNG) conversion kits was also highlighted as part of efforts to reduce reliance on petrol and diesel, which contribute to high production and transportation costs.

    He added that government revenue collection reforms are yielding positive results, with aggregate federal revenue for the first half of 2024 reaching N9.1 trillion, more than double the amount collected in the same period in 2023. Non-oil revenue increased by 30 per cent, surpassing budget expectations.

    While acknowledging the progress made in controlling inflation, Edun noted that food inflation remains a significant challenge. “The consumer price index eased from 34 percent in June to 33 percent in July, but food prices continue to rise sharply,” he said. The government is implementing several initiatives to boost food supply and tackle food inflation, including strategic import programs and efforts to enhance local food production.

    He also highlighted the administration’s focus on improving agricultural productivity.

    He said: “We are working to increase staple crop production from 127 million metric tons in 2023 to 135 million metric tons by the end of the year”.

    According to him, these efforts included providing fertilizers and seeds to smallholder farmers and fostering partnerships with large-scale commercial farmers.

    Addressing the energy sector, the finance minister stated that the government is targeting an increase in electricity supply from the national grid, with plans to boost output from 4.5 gigawatts to 6 gigawatts by the end of 2024. Oil production is also set to rise to 2.0 million barrels per day as part of efforts to enhance the sector’s competitiveness and attract further investments.

    He said healthcare reforms are focused on improving access to essential medicines for 80 to 90 million Nigerians as healthcare insurance coverage for one million vulnerable people is being expanded through the Vulnerable Group Fund, in collaboration with state governments.

    He emphasized the importance of collaboration between the government, private industry, and civil society to achieve sustained economic growth.

    Read Also: Mutual Benefits seeks policy change in insurance

    “To ensure long-term growth, we must align our policies with the changing global landscape, but this requires strategic investments from the private sector,” Edun said.

    Governor, Central Bank of Nigeria (CBN), Mr. Yemi Cardoso, represented by Dr. Blaise Ijebor, CBN’s Director of Risk Management Department, noted that bankers are not just critical stakeholders but also more of a track driver of inclusive growth and because their decisions and actions have significant consequences on the lives of millions of Nigerians and indeed Africans.

    He said the CBN looks forward to the actionable points that will come out of the deliberations at the conference because these would help to move the country forward, especially as the nation moves towards a $1 trillion economy envisioned by President Tinubu.

    At the conference, Mr. Tony Elumelu, Chairman of Heirs Holding, who delivered the keynote address, called for urgent measures to address insecurity, which he cited as a key driver of food inflation and economic instability.

     “We must prioritise security to protect our people, attract investment, and foster change,” Elumelu said.

    He also underscored the need to support youth entrepreneurship, urging the government and private sector to create opportunities that allow young Nigerians to realize their potential within the country.

    “we must incentivize our youth to embrace the challenge of driving economic growth. We face a choice. Either we offer our young a future where opportunity is absent in Nigeria, forcing our best and brightest to leave, to undertake tough journeys that split families and destroy lives.

    “Or we create a Nigeria where value and well-being can take place at home, not abroad, where our young ones can realize their dreams in Nigeria, for Nigeria. By supporting their businesses and creating an enabling environment, we can collectively empower small and medium-scale enterprises to catalyze our progress during these transformative and challenging times. We must not waste the current times we live in,” Elumelu said.

    He said the growth in the Nigerian banking sector is being impeded by regulatory and high compliance costs that limit innovation in the sector.

    He said that stakeholders, including government agencies, regulatory bodies, and banking institutions must engage in constructive dialogue to foster a collaborative environment.

    “By working together, we can build a more resilient banking sector that drives economic growth and supports the aspirations of Nigerians. The success of the Nigerian banking sector is felt beyond Nigeria.”

     “Nigerian banks have become multinationals, leading the sector across Africa, establishing themselves in the world’s financial capitals – and in doing so they have changed how our country is perceived, created pathways to opportunity and set themselves up as role models for our other industries,” he said.

    Elumelu, who also chairs the Heirs Holdings Group said that achieving economic growth requires the collective efforts of all Nigerians.

    He said that United Bank for Africa Group serves 45 million customers across 20 African countries, as well as the UK, US, France, and the UAE. “UBA Group is not just a bank; it empowers businesses, creates jobs, and facilitates regional and continental trade, contributing to our nation’s development,” he said.

     “Through Heirs Holdings Group, our investments are creating shared prosperity for all stakeholders. We are tackling Nigeria’s most critical challenges—power and energy sufficiency through our integrated energy strategy, health and wellness, access to financial security, and more,” he said.

     “At the Tony Elumelu Foundation, we are nurturing a generation of young, empowered African entrepreneurs who are transforming their communities and industries. We leverage our platforms for advocacy, spreading our message of Africapitalism,” he said.

     “We have seen the results – in the partnerships we have forged, the optimism we leave in our messages, and the millions of lives impacted by both our business and philanthropic activities,” he stated.

    Elumelu also said that 2024 has been tough for Nigeria as inflation has continued to surge, causing pain across our economy. “Our country has been hit hard. As a nation, we import more than we export, and with a manufacturing sector struggling and the continued growth of our population, we require more than just short term “interventions”.

    He called for a comprehensive strategy to support the country’s vast and diverse population and unlock its potential.

     “Nigeria is rich in resources, natural and human. But, time and time again, we have failed to invest in our people and our value chain. And by value chain, I mean not just our oil & gas or manufacturing, I mean power, I mean schools, universities, our institutions. All those foundations that provide the ecosystem for a country to succeed. A country that does not address its basic infrastructure needs, is a country that cannot realise its potential,” he said.

    He stressed the need to improve access to electricity, improve security and boost entrepreneurship.

     “Nigeria cannot industrialise, our youth cannot be educated, without ensuring our abundant natural resources are translated into plentiful, robust power for all. A power ecosystem that encourages investment and unlocks our economy. To accelerate our progress, we must enable our power sector to guarantee reliable electricity for everyone,” he said.

    Chairman, Body of Bank CEOs and Group Managing Director, United Bank for Africa (UBA) Plc, Oliver Alawuba, thanked all stakeholders for their participation and support.

    He said:  “I am filled with profound gratitude and admiration for everyone who has contributed to making this remarkable conference a resounding success. Let us not merely leave this conference inspired but let us leave it determined to execute – committing ourselves to building a financial sector that powers our economy, lifts our people, and transforms our world”.

  • Nigeria, China begin bilateral economic talks in Beijing

    Nigeria, China begin bilateral economic talks in Beijing

    • Tinubu to spearhead multilateral meetings

    Nigerian and China will open high-level economic discussions today in Beijing.

    President Bola Ahmed Tinubu, who is leading the Nigerian delegation, arrived yesterday morning to the warm embrace of his hosts.

    Special Assistant to the President on Social Media, Olusegun Dada on his X handle @DOlusegun, announced the president’s arrival yesterday morning.

    The President is due to sign Memoranda of Understanding (MoUs) with his Chinese counterpart President Xi Jinping.

    Besides bilateral talks, President Tinubu as Economic Community of West African States (ECOWAS) chairman will speak on behalf of the region in the multilateral talks between West African leaders and the Chinese President.

    The President will conduct site visits to two major Chinese corporations; Huawei Technologies, as well as the China Rail and Construction Corporation, (CRCC). This tour is to return focus to the completion of the Ibadan to Abuja segment of the Lagos to Kano high speed rail line, one of the key objectives of this visit.

    Tinubu is due to meet with 10 selected chief executive officers of 10 major Chinese corporations with assets under management totalling over $3 trillion across multiple sectors of the economy, including information and communications technology, refining oil and gas, aluminium production, seaport construction, harbour construction and dredging services, financial services, satellite technology development, as well as many other critical sectors.

    Some of the MOUs to be signed between the two countries are in areas of deepening of cooperation, in green economy, in agriculture, in satellite technology development, in media enterprise development and promotion, as well as blue economic development and national planning cooperation.

    According  to a statement prior to the trip by Presidential spokesman Ajuri Ngelale: “Mr. President, would thereafter join the Forum on China–Africa Cooperation (FOCAC) Summit, where several African heads of state will be present to engage with Chinese leaders on various important matters.

    Read Also: Africa’s oil giants: Top 10 countries with largest oil reserves in 2024

    “At this FOCAC Summit, President Tinubu, in his capacity as the Chairman of the ECOWAS Authority of Heads of State and Government, will deliver remarks on behalf of the region and certainly would proceed to the high level peace and security plenary, where he will further deliver remarks on peace and security in the region and in Africa in his capacity as the President of the Federal Republic of Nigeria.

    “This engagement is expected to yield very tangible, immediate and future dividends for the sake of the Nigerian economy and for the benefit of the Nigerian people and the President is placing a premium on deliverables, ensuring that this is not a talk-shop, but that this is something that will yield results for our people, justifying any expenditure that is made during the course of this trip”.

  • Edun commends military’s role in economic recovery

    Edun commends military’s role in economic recovery

    Finance Minister  and Coordinating Minister of the Economy, Mr. Wale Edun, has hailed the Armed Forces for their tireless efforts in creating and maintaining a secure environment conducive to economic growth.

    Edun, on a courtesy visit to the Chief of Defence Staff (CDS), General Christopher Gwabin Musa in Abuja,said the military’s dedication aligned with President Bola  Tinubu’s mandate to enhance the quality of life for all Nigerians through a secure and stable nation.

    “The military’s unwavering commitment to securing the nation has provided the foundation upon which our economy can thrive,” the minister said.

    The visit was for the minister and his host to discuss the crucial role of the military in safeguarding democracy and driving Nigeria’s economic and social recovery.

    Responding, General Musa reaffirmed the military’s commitment to protecting Nigeria’s democratic values and agreed with the minister that a secure environment is essential for the successful implementation of economic policies and social initiatives.

    “We in the military are fully aware of our responsibility in safeguarding democracy,” General Musa said. “Our role is not just to defend the nation from external threats but also to ensure that the internal environment remains stable, allowing for economic activities to flourish.”

    The discussions between the Minister and the Defence Chief also touched on the continued collaboration between the military and the economic sector. General Musa expressed his gratitude to the Minister for the consistent support provided to the armed forces, noting that such backing is crucial in enhancing the operational capabilities of the military.

    Read Also: Don’t distract Ganduje, Sule warns APC members

    The visit included a tour of the Defence Headquarters, where General Musa provided Mr. Edun with an overview of the operational and administrative functions of the Defence Headquarters. The tour was an opportunity for the Minister to gain a better understanding of the military’s strategic operations and how these contribute to national security and economic stability.

    As the discussions progressed, both leaders recognized the importance of a strong partnership between the military and the economic sector. They expressed optimism that their ongoing collaboration would yield significant positive outcomes for the nation.

    The visit marks a significant step towards strengthening the relationship between Nigeria’s military and its economic management team. The ongoing cooperation is expected to foster a secure and thriving environment, paving the way for the country to achieve sustainable economic growth and improved living standards for its citizens.

    As Nigeria continues to navigate through various challenges, the partnership between the military and the economic sector remains a cornerstone of the nation’s strategy for recovery and growth. The visit by Mr. Edun to the Defence Headquarters is a clear signal of the government’s commitment to ensuring that all sectors work together towards a common goal— a secure, prosperous, and resilient Nigeria.

  • Accelerated stabilisation, advancement economic plan takes off

    Accelerated stabilisation, advancement economic plan takes off

    • ‘Initiative to boost economic development’

    An Accelerated Stabilisation and Advancement Plan (ASAP) initiative to fast-track economic growth has taken off.

    The initiative, led by Finance Minister  Mr. Wale Edun is designed to ensure inter-ministerial collaboration to deliver on the set goals of President Bola Ahmed Tinubu.

    Key ministers attended the inauguration of the body yesterday to underscore its importance.

    These are: Minister of Agriculture and Food Security, Senator Abubakar Kyari; Minister of Budget/ Economic Planning, Senator Abubakar Atiku Bagudu; , Coordinating Minister of Health/Social Welfare, Prof Muhammad Ali Pate; Minister of Power, Adebayo Adelabu; Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo and Director-General of the Budget Office, Tanimu Yakubu.

    Read Also: Edun addresses flooding impact on agriculture

    According to Edun, the Tinubu Administration designed the ASAP to drive sustainable development across eight critical sectors of the economy.

    The sectors identified as priorities, include: agriculture, energy and health, among others.

    The immediate task of the initiative, in a statement by Ministry of Finance by Director of Information Mohammed Manga, is to ensure collaborative effort involving Finance Ministry; the Central Bank of Nigeria (CBN), the Federal Ministry of Agriculture and Food Security and the African Development Bank (AfDB).

    This plan is designed to ensure that fertilizers and other critical inputs are delivered to farmers in a timely manner, thereby boosting agricultural output and contributing to food security.

    Managa quoted Edun as saying: “As the ASAP Implementation Committee begins its work, there is a strong emphasis on precision, accountability, and sustainable development.

    “The committee, chaired by Mr. Wale Edun, will oversee the implementation of the plan, ensuring that each priority area receives the attention and resources it requires.

    “The collaborative efforts of various government agencies and stakeholders are expected to drive progress, resulting in tangible outcomes that will benefit the Nigerian economy and its citizens.

     “With the ASAP implementation committee now operational, Nigeria is poised to witness significant advancements in its economic landscape.”

  • Solutions to economic crisis, by ex-council boss

    Solutions to economic crisis, by ex-council boss

    The former Chairman Ikeja Local Government, Hon. Wale Odunlami, has suggested solutions to the current economic crisis in the country.

    He said reducing cost of petroleum products by 50 percent, reduction in prices of food commodities,among others would address the current economic woes.

    Odunlami, who praised the bold steps being undertaken by  President Bola Ahmed Tinubu, such as the removal of petroleum subsidy, floating of the naira and unification of the exchange rates, said the impact has not been felt by the masses.

    Read Also: Ebonyi, Ekiti, Benue, Anambra, Ogun, Ekiti peaceful

    He said the President has been able to raise the monthly allocation to the three tiers of government  – Federal, state and local government areas – by about 70 – 80% almost double in some cases since June 2023.

    He said: “Halt this largesse being passed on to sub-nationals through monthly FAAC allocations and use the savings/accruals for direct intervention to reduce the prices of petroleum products by 50 percent and mandatorily reduce cost of transportation by half. This will bring a big relieve to the masses of this country. It should lead to a positive downward reduction in prices of goods and commodities generally.

    There should also be direct intervention in supporting agriculture and reducing the prices of essential food commodities by 50 percent rather than relying on the sub-nationals to do this, Ditto for cost of pharmaceuticals and essential construction industry materials like cement, iron rods etc. Also put a lid on increases in tuition fees in tertiary Institutions.

    On the forex crisis, he urged the CBN Governor Olayemi Cardoso to focus on reduction of demand pressures, frivolous imports of petty items; limit travels and tours, reduce medical tourism among others.

    “The Central Bank of Nigeria (CBN) has been battling profusely to increase the supply to the system. But no focus is being placed on stemming or reducing demand pressures,” he added.


  • Nigeria, USA sign MoU to strengthen economic ties

    Nigeria, USA sign MoU to strengthen economic ties

    The federal government of Nigeria, in partnership with the United States, has signed a Memorandum of Understanding (MoU) to strengthen commercial and investment ties between the two countries.

    The agreement was signed on the sidelines of the 2024 AGOA Forum in Washington, D.C., by Nigeria’s Minister of Industry, Trade, and Investment, Doris Uzoka Anite, and the U.S. Secretary of Commerce, Gina Raimondo.

    According to a statement from the ministry, the MoU aims to deepen bilateral commercial and investment relationships by enhancing the business environment, facilitating private sector-led trade and investment projects, developing direct business relations, and implementing actions for a mutually beneficial trade and investment partnership.

    The statement read: “The agreement focuses on key economic sectors including infrastructure, agriculture, sports and the digital and creative economy, as well as cross-cutting areas such as investment promotion and regulatory reforms. It also establishes a framework for regular consultations at various levels, including business-to-government, government-to-government, and business-to-business engagements.”

    In addition to the MoU, both countries issued a joint statement outlining new avenues of commercial cooperation and affirming shared priorities on the digital economy, demonstrating a comprehensive approach to enhancing bilateral economic relations.

    The minister added that the MoU marks a pivotal moment in Nigeria-U.S. economic relations by focusing on critical sectors like infrastructure, agriculture, and the creative and digital economy, we are laying the groundwork for sustainable economic growth and job creation.

    She said: “This partnership underscores our commitment to nurturing an enabling environment for investment and trade, which is crucial for President Bola Ahmed Tinubu’s economic development agenda. We are particularly excited about the opportunities this presents for our fast-growing tech sector and the potential for knowledge transfer and innovation.”

    U.S. Secretary of Commerce, Gina Raimondo, emphasised the importance of the partnership, saying, “With the largest population and largest democracy in Africa, Nigeria is an essential partner for the United States. At the U.S. Department of Commerce, we are committed to working hand-in-hand with our Nigerian Government colleagues to foster deeper commercial cooperation that helps promote inclusive economic growth, fosters innovation, and creates jobs in both our countries.”