The Nation Newspaper

Tag: Economy

  • ‘Policy overhaul needed for $1tr economy’

    ‘Policy overhaul needed for $1tr economy’

    Chairman/CEO of General Transport Policy (GTP), Dr. Segun Musa, has elaborated on the role of the National Single Window system in achieving President Bola Tinubu’s lofty goal of a $1 trillion economy.

    He emphasised that while the platform is a vital tool for economic and security synergy, it is not, in itself, the solution to Nigeria’s economic transformation. Musa described the Single Window as a one-stop platform where all economic and security actors are integrated.

    “It ensures that everyone takes merit for their contributions because whatever you achieve must be connected”, he explained. However, he noted that the system is currently underutilised because government agencies operate in silos.

    “Right now, everyone is on their own. Everybody wants to take credit individually. But the Single Window is about synergy,” he said.

    While acknowledging that the platform can improve economic processes, Musa was clear that it is not a magic bullet for economic growth. “The real question is: What will build a $1 trillion economy? The simple answer is political will and a complete shift in economic policy,” he stated.

    Musa, who is also the National Vice President of the Association of Government Approved Freight Forwarders (NAGAFF), argued that Nigeria’s current economic policies are counterproductive and incapable of achieving real growth. He was particularly critical of excessive taxation, which he described as an obstacle rather than an enabler.

    “Taxes do not build an economy; they kill it. It is only governments that cannot tax the brain that tax businesses and citizens. Taxation is the laziest way to make money, especially when it becomes multiple taxation,” he asserted.

    He stressed that for sustainable economic growth, the government must create an enabling environment where people are willing to contribute rather than being forced through excessive taxation.

    “The policies we have today are stifling businesses instead of fostering growth. They are theoretical—far removed from reality. Without a barometer to measure their impact, they remain mere hypotheses,” he said.

    As one of the pioneer non-state actors of the Single Window, Musa expressed concerns over the choice of government agencies overseeing the platform. He recalled that the Federal Inland Revenue Service (FIRS) was given the responsibility, but he believes a more transparent approach is needed.

    “What we have proposed to the government is a committee of both state and non-state actors with the highest level of integrity. This is the only way we can convince the international community that we are serious,” he noted.

    Read Also: Nigeria must build economy that can weather all storms – Makinde

    According to him, global investors scrutinise the agencies managing such platforms. If they detect any credibility issues, they will lose interest.

    “In developed economies, questionable agencies check each other, while reputable non-state actors are included because they have a stake. If anything goes wrong, it affects their investments,” he explained.

    He suggested that prominent business figures like Femi Otedola, Mike Adenuga, and Aliko Dangote should be involved in the oversight process, as they have a vested interest in the country’s economic stability.

    “What would you want to bribe them with? And they would not want to have anything to do with the integrity of their business empire. That’s how to put checks in place,” he argued.

    Musa also pointed out a widely overlooked fact: the Single Window system is more of a security tool than an economic one.

    “People don’t realise that Single Window addresses security more than the economy. It is a center point of synergy. That’s the real purpose of Single Window – to integrate efforts across security and economic sectors,” he explained.

    He reiterated that without a proper governance structure that includes both state and non-state actors, the system will not function effectively.

    “The world has moved beyond rhetoric. If we want a $1 trillion economy, we must embrace accountability, deter corruption, and ensure synergy across all sectors. Single Window can be a part of the solution, but it is not the foundation of economic growth,” he concluded.

  • National single window to drive $1tr economy- FG 

    National single window to drive $1tr economy- FG 

    Stakeholders and experts in the trade sector have hailed the National Single Window (NSW) project as a transformative initiative capable of eliminating bureaucratic delays, boosting trade efficiency, and accelerating Nigeria’s economic growth.

    Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, speaking at the National Single Window Forum on Tuesday in Lagos, expressed confidence the initiative would contribute significantly to achieving President Bola Tinubu’s vision of a $1 trillion economy by 2031.

    “The National Single Window project represents a pivotal stride in Nigeria’s journey towards economic transformation,” Adedeji stated. “For too long, trade facilitation processes have been hindered by complex and inefficient procedures, resulting in delays at ports, increased costs of doing business, and a loss of global competitiveness.”

    Read Also: Afenifere to Tinubu: Overhaul security architecture to curb kidnappings, banditry

    Adedeji noted that the NSW would create an integrated platform connecting key stakeholders, including seaports, airports, free trade zones, government agencies, financial institutions, and the private sector. This seamless connection, he said, would revolutionize international trade, enhance Nigeria’s competitiveness, and reduce revenue losses while attracting foreign investments.

    Minister of State for Finance, Dr. Uzoka-Anite, stressed the potential of the NSW initiative by citing international examples. She noted that Indonesia’s NSW programme, launched in 2007, reduced cargo clearance times from seven days to three, saving traders millions of dollars annually. Similarly, Vietnam’s NSW reforms introduced in 2014 streamlined interactions with over 20 government agencies, boosting compliance and increasing customs revenue.

    Closer to home, she pointed at Rwanda, which implemented its NSW in 2012. The reform reduced border crossing times by 50 percent, enhancing the movement of goods and making Rwanda one of Africa’s fastest-growing economies.

     “Such impacts would be significant for Nigeria as we build foreign reserves and strengthen the Naira,” Uzoka-Anite said.

    Minister of Industry, Trade, and Investment, Dr. Oduwole, described the NSW as a game-changer for the trade environment. 

    “The single window project will provide a centralised digital platform for traders to submit, process, and access trade-related documents, eliminating corruption through transparency, reducing administrative burdens, and enhancing ease of doing business,” she explained.

    Oduwole, who has been involved in the project since 2016, stressed that the time for delivery was now. 

    “Under President Tinubu’s eight-point agenda, economic growth and job creation are key priorities. The NSW will play a significant role in achieving these goals,” she said.

  • State set to spearhead green economy

    State set to spearhead green economy

    The Lagos State government is spearheading a green economic revolution to position environmental sustainability as a key driver of economic growth and development.

    Special Adviser to the Governor on Climate Change and Circular Economy, Titilayo Oshodi, said this at the inaugural Environmental, Social and Governance (ESG) Workshop organised by the Office of the Special Adviser on Climate Change and Circular Economy.

    Oshodi highlighted the significant economic opportunities presented by the green economy, particularly in sectors like waste management, renewable energy, and sustainable agriculture.

    She stressed that by embracing circular economy principles, and investing in green technologies, Lagos will not only address pressing environmental challenges like waste generation and pollution, but also create a significant number of jobs and stimulate economic growth.

    “The green economy is not just about environmental protection; it’s about economic prosperity. By transitioning to a circular economy, we can unlock significant economic value from waste streams, creating new businesses and employment opportunities,” she said.

    Oshodi also said the state is actively promoting sustainable business practices through initiatives like the Economy Business Network (EBN), which supports over 500 eco-enterprises.

    She added: “The EBN is more than just a network; it is a dynamic ecosystem designed to empower eco-enterprises and support sustainable business practices across the state. This network aims to equip businesses with the necessary tools, resources, and networks to thrive in a competitive yet environmentally conscious market.” 

    The governor’s aide also emphasised the importance of data-driven decision-making and technology to address environmental challenges and identify economic opportunities.

    Read Also: Top four ways to invest N1million in Nigeria in 2025

    Special Adviser to the governor on Economic Planning and Budget, Lekan Balogun, reaffirmed the government’s dedication to promoting a circular economy, with a focus on sustainable development, green financing, and environmental accountability.

    He said: “We need to budget differently. We need to budget for sustainability. We need to budget for sustainable growth, sustainable development, which are being pushed by the circular economy agenda.”

    Balogun noted that the Ministry of Economic Planning and Budget is committed to supporting entities like the Office of Climate Change, Lagos Waste Management Authority (LAWMA), and the Ministry of the Environment, in their efforts to educate and sensitize the public on environmental issues.

    “Waste to wealth is not just a catchy phrase; it’s action points, responsibilities, consciousness of the behavior towards achieving the goal of where we want to be.”

  • Underground economy

    Underground economy

    It is official: ransom payment for kidnapped persons in Nigeria is big business. Some N2.23trillion was paid out as ransom money over 12 months between May 2023 and April 2024, the National Bureau of Statistics (NBS) has revealed.

    The bureau, which is the nation’s official statistician, said there was an estimated 51.89million crime incidents recorded across Nigerian households in the period under review. In the Crime Experience and Security Perception Survey report recently published on its website, the NBS said the Northwest geopolitical zone had the highest incidence of crime at 14.4million cases reported, followed by the Northcentral zone with 8.8million incidents reported. Conversely, the notoriety of the Southeast zone for insurrectionist violence wasn’t as bad as it seemed, apparently, because the zone reported the least incidence of crime with 6.18million cases. The survey further showed that rural areas experienced more of crime attacks than urban areas, with 26.53million incidents reported in rural households as against 25.36million incidents in urban areas.

    Of households affected by kidnapping incidents, 65 percent were forced to pay ransom to secure the release of their loved ones. The average amount paid as ransom for a kidnapped relation was N2,67million, totalling to an estimated N2.23trillion ransom payment within the reference period, the NBS report stated.

    It might help to properly figure out the stated volume of ransom payment by juxtaposing it with transactions in the official economy. The N2.23trillion that the statistical bureau estimated kidnappers collected in 12 months is way bigger than the N1.97trillion the Lagos State Government targets as Internally Generated Revenue (IGR) to partly finance its proposed N3trillion 2025 budget. The estimated ransom payment is nearly half of the N4.91trillion projected for defence and security spending in the N49.7trillion 2025 federal appropriation bill that President Bola Ahmed Tinubu presented to the National Assembly (NASS) last week.

    We can only darkly imagine what that volume of cash in the hands of criminals was applied to by them in further hazarding the safety of Nigerians. That is not to mention the motivation to further kidnappings such bountiful yield must have constituted to kidnappers. But one thing is clear: it was a thriving underground economy that could have contributed substantially to the gross domestic product (GDP) in the conventional economy were those proceeds taxable.

    The statistical bureau said in its report that many victims cited lack of confidence in law enforcement and a belief that police intervention would not lead to meaningful action as major reasons for not reporting their experiences. Amidst the widespread nature of crime, public perception of safety was low as the survey found that 9.6 percent of Nigerians believed they were at risk of becoming victims of crime within the next 12 months. The fear of crime was higher in rural areas where 13 percent of the population felt vulnerable, compared with seven percent in urban areas.

    The report also impugned the effectiveness of security agencies, particularly the police, in responding to emergencies. According to the NBS, 33.1 percent of Nigerians reported that security agencies responded to emergency calls within 30 minutes. The bureau as well said approximately four out of 10 households interacted with state or local security forces during the survey period, with half of such households contacting the police. Satisfaction with police responses was however low, especially in cases of livestock and crop theft where 42.9 percent and 42.4 percent of victims respectively expressed satisfaction. In many rural areas, local vigilance groups were seen as more reliable providers of security.

    Read Also: FG warns against politicising stampedes at food distribution exercises

    Late last week, the statistical bureau reported a cyber-attack on its website. In a post on its X handle, the bureau said: “This is to inform the public that the NBS website has been hacked and we are working to recover it. Please disregard any message or report posted until the website is fully restored.” The bureau, however, did not disown the crime survey report earlier published or suggest it was unofficially made public. There were subsequent online reports alleging that the statistical bureau’s chief executive officer got into hot water with security high echelons over the crime survey report that was considered embarrassing to government, and that the NBS website was shut down and not hacked as claimed. Let’s be clear that those reports weren’t confirmed. But it would be tragic if allegations of a crackdown on the bureau were true because the survey report – coming from the source it came – should rather offer helpful insight into security architecture that could be devised by managers of the security establishment rather than be viewed from the narrow prism of its fleeting implication for government image.

    Ransom payment to criminal elements has been a tough choice that often confronted relations of kidnapped victims, but the security establishment always refused to acknowledge it was happening. What the statistical bureau report did was to highlight the reality and magnitude of the trend. Much as it wasn’t openly acknowledged, the trend riled governing authorities, with frantic attempts made in the past to rein it in.

    In April 2022, the Senate chamber of the ninth NASS passed a bill imposing a jail term of at least 15 years for payment of ransom to free someone who has been kidnapped. The bill also made kidnapping punishable by death in the event that the victim dies in the encounter, with life imprisonment prescribed in other events. Arguing for the bill, then chairman of the judiciary, human rights and legal committee of the red chamber (now Senate Leader), Senator Opeyemi Bamidele, said making ransom payment punishable with a lengthy jail sentence would “discourage the rising spate of kidnapping and abduction for ransom in Nigeria.” The bill, which was to amend the nation’s terrorism law, never got to secure presidential assent because the House of Representatives did not get done with its concurrence as statutorily required.

    On the heels of the Senate’s passage of the bill, however, there was a lively national debate as to whether it made sense to penalise someone who was compelled to pay ransom for freedom of his kidnapped relation when you did not prevent the kidnap from happening in the first place. The survey report by NBS underscores the unwisdom of paying ransom to criminals, because it is a self-inducing option that encourages further kidnap for ransom when a demand for ransom is met. But the challenge is more to the security establishment to prevent citizens being put on the tough spot of submitting to ransom demand by criminals.

    One of the most sensational cases of kidnap and ransom payment in recent history was that of the Al-Kadriyar sisters early this year. Mansoor Al-Kadriyar, a Federal Capital Territory (FCT) resident, was abducted by bandits in his family home in Bwari Area Council early in January, along with his five daughters and their cousin, a daughter to Mansoor’s brother who got killed in the kidnap operation. Two days later, Mansoor was let off by the bandits to go raise N60million for the release of the girls. One of the abducted sisters was Nabeeha, a 400-level Biological Science student of Ahmadu Bello University (ABU), Zaria, who on 12th January was killed by the kidnappers to press home their death threat against the remaining five girls if the ransom demand was not hurriedly met. Nabeeha’s five sisters who remained in captivity included Najeebah, a 500-level Quantity Surveying student. A relation of the Al-Kadriyars made their predicament known on social media, and a crowdfunding initiative hashtagged #Najeebaandhersisters was launched by sympathisers. The highpoint of the crowdfunding drive was the disclosure by immediate past Communications and Digital Economy Minister Isa Pantami that a friend of his had volunteered N50million to make up the N60million ransom being demanded by the bandits for the release of the remaining Al-Kadriyar sisters. Pantami, in a post on his verified X handle, tweeted that while he personally was not in support of paying ransom to criminals, he’s had to solicit funds for the release of the remaining sisters in view of the fate that befell Nabeeha.

    Government did tackle the kidnapping wave in the FCT and elsewhere, and has largely gotten an upper hand. But Pantami, as ex-minister, initiated a policy of linking Subscriber Identification Module (SIM) cards with holders’ National Identity Number (NIN) – a policy that has so far failed to hamstring kidnappers from using phone lines to demand ransom payment, among other illicit uses. The NBS crime survey report should be a wake-up call to revisit this policy and make it work to billing. One question the survey report didn’t answer is: what happened to the kidnappers who picked up so much ransom money?

    •Please join me on kayodeidowu.blogspot.be for conversation.

  • ‘More microfinance banks beneficial to economy’

    ‘More microfinance banks beneficial to economy’

    The Chairman of FIT Group of Companies, Chief Loretta Aniagolu, has advocated for the establishment of more microfinance banks to deepen financial inclusion, aid development of real estate nationwide and grow the economy.

    Aniagolu, who spoke at the official launch and grand opening of FIT Microfinance Bank, at the HELIU Residences, Enugu, said there is need to make home ownership a possibility by building a value chain such as a microfinance bank.

    While describing the new bank as a game-changer in the financial landscape and real estate industry, Aniagolu disclosed that it was meant to provide credits for Nigerians to build their dream homes at discounted rates and assist real estate developers in securing fund for affordable shelter development in the country.

    According to her, the bank was heralded to empower individuals and small businesses with accessible and innovative financial services to enable them get their own homes.

    “We’re trying to build a value chain. When you are a real estate developer, it touches many different sectors and aspects. (However), the only aspect we think about is the houses built and sold. We forget that everything we use today is real estate, whether it’s your residential home, school, hospital, hotel. They’re all pieces of real estate.

    “So, what we’re trying to bring to the knowledge of Nigerians and the Nigerian government is the fact that building an economy requires a strong backbone in real estate development which is residential and commercial houses. It affects every aspect of your life, it creates jobs for every level of the society.

    “Now, the only way you can build many houses is when you provide income and circulate credits. Nigerians are expected to be honest in their jobs and not be corrupt, but there’s no opportunity for them to get credit to buy homes and other things they need. In every society credit is so important in everything we do. So, we looked at and asked ourselves what do we now do.

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    “So, venturing into banking means we can now provide some credit. And with this credit, growing this bank, ultimately our goal is that this bank begin at some point to give loans to people so that we can build the kind of homes that we have built at discounted rates and a lot of Nigerians will be able to build their own homes.

    “Here, our ultimate goal is to make home ownership a possibility. This bank stands out. So, if it travels in the trajectory that we have set, then we should be able to achieve number of things that other microfinance banks can learn from because we need more to do the kind of things that we want to do to be able to grow the entire economy.

    “Nigeria is a big country. There are hundreds of millions of people here and there are so much opportunities. It’s just that enough credit is not being provided in the society for people to take advantage of the size.

    “When you own a home, your dignity is restored as a human being and there are lots of things that come with it. You can do businesses, you can mortgage your home, you can use it to pay school fees, all sorts of things. But when you don’t have it, you haven’t even started,” Aniagolu said.

    The Managing Director of the bank, Mr. Andrew Okpeh, disclosed that the bank started with a capital base of N250 million, would be hoping to become the leading microfinance bank in the entire Southeast.

    “This is because we’re going to be leveraging innovative technology, digital space, which is where we intend to operate,” he said.

    The MD disclosed that as part of their community service, the bank would be organizing cooperative groups in various communities to teach them how to grow their wealth and also partner them, support their businesses and grow them.

  •  Fed Govt  to fund innovations, transform economy

     Fed Govt  to fund innovations, transform economy

    The Federal Government has announced its commitment to funding groundbreaking innovations aimed at transforming the economy. This declaration was made in Lagos during the inaugural gathering of the Nigeria Impact Investing Research Industry Collaborative (NIIRIC). The Minister of Innovation, Science and Technology, Chief Uche Geoffrey Nnaji, emphasised the government’s intention to foster and develop innovative products, processes, and services throughout the nation.

    The minister was represented by the Deputy Head and Team Lead of the Minister’s Project Delivery, Monitoring, and Evaluation Team (PROD-ME), Engr Patricks Oghuma,  conveyed the government’s resolve to boost productivity and competitiveness within the economy, as well as to promote wealth generation and enhance social well-being.

    To support these objectives, he noted that the establishment of a National Research and Innovation Council (NRIC) and a National Research Fund (NRF) were both designed to advance research and innovation across Nigeria.

    The Minister highlighted President Bola Tinubu’s robust endorsement of these initiatives, noting their alignment with the administration’s eight-point agenda that emphasizes the importance of a knowledge-driven economy. Chief Uche Geoffrey Nnaji also stated that the Federal Government is dedicated to allocating 0.5% of the Gross Domestic Product (GDP) towards funding Research and Innovation, with the goal of accelerating the nation’s technological progress.

    By committing a specific portion of the country’s income to Research and Development (R&D), he indicated that the Government is making a proactive investment in the foundation of sustainable economic growth and development in Nigeria.

    Read Also: CBN commences spot checks on banks to alleviate cash scarcity

    Furthermore, the Minister reiterated the government’s commitment to enhancing productivity and competitiveness, wealth generation, and social well-being.. To accomplish this, he stated that there are several interventions aimed at enhancing skills, expanding the pool of innovative talent, promoting international collaboration, and stimulating research, development, and innovation within both the public and private sectors.

     He mentioned Technology and Innovation Centres, which act as collaborative hubs for stakeholders in the science, technology, and innovation (STI) ecosystem. These centres, according to him, aimed to improve the application of research and development and foster innovation, thereby supporting Nigeria’s pursuit of industrial and economic strength as outlined in President Bola Ahmed Tinubu’s eight-point agenda.

    A Professor of Strategic Management and Dean at Lagos Business School, Pan-Atlantic University, Chris Ogbechie, emphasised that NIIRIC serves as a crucial platform for knowledge exchange, strategic planning, and the establishment of robust partnerships that will facilitate significant advancements in the impact investing sector.

    He further asserted that this initiative will address developmental challenges across environmental, social, and economic dimensions.

    With NIIRIC operational, he added, private sector organisations will be empowered to focus on investments that generate environmental and socio-economic value for the nation, aligning with both national development priorities and global trends.

    The Chief Executive, Impact Investors Foundation, Etemore Glover, emphasised the importance of monitoring and reporting on impact investments, as well as advocating for policies that foster growth and influence in critical focus and development areas.

    She articulated that NIIRIC aims to generate economic, social, and environmental value.

    She continued that the initiative will bolster the government’s efforts to create a more inclusive, resilient, and sustainable economy.

    The country technical lead for Nigeria at RISA Fund, Alice Omisore-Dada, asserted that a strong economy is fundamentally reliant on the integration of industry and science, which will enable Nigeria to enhance its manufacturing capabilities. She noted that NIIRIC is poised to assist the government and private sector in creating a strategic pathway to foster increased investment in research and development (R&D) by businesses. The initiative,she maintained, is critical for maximising the influence of science, research, and innovation on Nigeria’s long-term prosperity, security, and well-being.

    She  expressed that the fund’s endorsement of NIIRIC is essential for shaping Nigeria’s future and securing its position in a dynamic global economic and strategic landscape.

  • ‘How Nigeria can move from consumption to production-based economy’

    ‘How Nigeria can move from consumption to production-based economy’

    Senior Special Adviser to the President on Industrialisation, African Development Bank Group (AfDB), Prof. Banji Oyelaran-Oyeyinka, has explained how Nigeria can move from consumption-based economy to production-based with the aid of rural industrialisation.

    Oyelaran-Oyeyinka spoke recently at the Agriculture Summit Africa Conference, Abuja, with the theme: ‘From Scarcity to Security’.

    In his keynote speech titled: ‘Building a Production Nation,’ he noted that the fruits of prosperity of Nations sprout from the trees of production, adding that Nigeria must build the necessary infrastructure, foster rural industrialisation, and create markets for the goods produced.

    He outlined that Nigeria’s industrial sector had been in decline for decades and since the 1970s, the industrial sector’s contribution to GDP had steadily decreased, with manufacturing output falling to less than 10 per cent of GDP. 

    He explained that the journey from scarcity to security was straightforward, with industrialisation being the key to making it a reality.

    “This is not an abstract ideal, it is a pressing necessity. We cannot afford to continue living in the cycle of poverty accommodation. We must break free from this “Destitution Equilibrium” and create opportunities for the rural poor to become active participants in the economy.

    “As we move forward, let us commit to making the transition from scarcity to security by embracing the SAPZ model, improving our agricultural and industrial sectors, and investing in our people. The future is within our grasp let us not waste this opportunity to create a more prosperous and equitable nation for all.”

    He explained that Nigeria’s  most urgent goal was rapid industrialisation-induced growth accompanied by the emergence of Secondary Cities where hundreds of firms, large and small, engage in specialisation of niche products.

    Oyelaran-Oyebannji added that historically, the emergence of large firms and industrial clusters had always responded to the emergence of large markets, saying, to achieve security, production and markets were indispensable factors.

    He revealed that the establishment of the SAPZ was a template for lifting the rural poor from the misery of accommodative poverty to becoming a market with significant spending power. “Transforming the rural economy is a prerequisite to industrialisation. As we build production structures we must build markets.

    “This is why we are promoting the establishment of agro- industrial clusters by the name of Special Agro-Industrial Processing Zones. The SAPZ is designed to overcome isolation faced by rural farmers to create a network of missing human interactions and logistics. Clusters remove credit constraints and reduce the cost of investment in production technologies. The clustering process lowers capital entry barriers and enable more entrepreneurs to participate in non-farm production. The proximity of firms in a cluster also allows more inter-firm collaboration.”

    “The transition from scarcity to security requires a strong industrial base. Countries that have successfully made this transition, such as China, the United Kingdom, and the United States, did so by developing robust rural industrialisation strategies that linked small-scale production with larger industrial economies. In China, for example, the emergence of township-village enterprises (TVEs) played a critical role in transforming rural areas into hubs of production, ” he said. 

    Oyelaran-Oyebanji, said there was a need, to develop a comprehensive rural industrialisation strategy.

    “This strategy should be based on the following seven pillars: Using the SAPZ model to revitalise rural areas by fostering commercialisation, increasing productivity, and opening up foreign markets for local produce.

    “Implementing social insurance and welfare programs to enable the poor to participate more actively in the economy.

    Through improved seeds, fertilisers, mechanisation, and better farming practices, we can achieve a higher yield per hectare and improve food security.

    “Support micro and small firms in rural areas through light manufacturing that adds value to local agricultural products.

    “Building essential infrastructure like roads, irrigation systems, and processing plants to enable farmers to thrive.

    “By improving the purchasing power of rural populations, we can stimulate demand for locally produced goods and services.

    Using SAPZs to address the challenges of uneven economic development, thereby curbing rural-urban migration and ensuring that urbanisation occurs sustainably.”

    Also speaking, Sterling Bank CEO, Abubakar Suleiman, emphasised that food security was key to Nigeria’s prosperity at the summit, saying without agricultural abundance, the country would continue to face socio-economic challenges.

    “It is clear to me that the option of plundering has never been on the table for Nigeria.

    “So, whatever we do as a people, unless we find a road to agricultural abundance meaning producing more than we need we will struggle to grow in other areas of our lives.” 

    He explained that Sterling Bank’s decision to redefine its focus around the ‘HEART’ sectors, with agriculture at the center, was a strategic choice aimed at fostering long-term growth and sustainability.

    The CEO elaborated on the bank’s integrated development approach. While recognising the importance of sectors like healthcare, education, energy, and transportation. 

    He maintained that food security was foundational. 

    “For seven years, we have set aside everything else to convene what we believe is the most productive summit for agriculture on the continent. This summit is about more than discussions; it’s about real action and tangible outcomes,” he stressed.

    The Deputy Governor of Benue State, Dr Sam Ode, representing Governor Hyacinth Alia, outlined Benue State’s ambitious plans to transform the agricultural sector and position Africa as a global food powerhouse.

    “It is an honor to join you today on this platform created by Sterling Bank.

    “I stand before you as a representative of our state’s commitment to a future where Africa not only feeds itself but thrives through sustainable and innovative agricultural practices.

    “There’s the critical need for Africa to shift from raw material-based agriculture to value-added agricultural products. This transformation,  will boost job creation, economic growth, and food security across the continent.”

    He painted a sobering picture of Africa’s food insecurity challenges, citing projections that the continent’s population could rise to 2.5 billion by 2050, increasing the demand for food exponentially.

    “Despite our vast arable lands and rich resources, Africa remains heavily dependent on food imports,” he noted. “Over 40 per cent of our food needs come from outside the continent. This is a paradox we must urgently address through strategic investments that create sustainable food systems.”

  • Igbo leader plans Diaspora City to create jobs, boost economy

    Igbo leader plans Diaspora City to create jobs, boost economy

    An Igbo leader and international businessman, Emeka  Obielom, has announced plans to partner with other entrepreneurs around the  world to establish the first Diaspora City in Anambra state.

    The Diaspora City, according to him, will serve as a business hub for the training of young business persons in the state and the Southeast by extension, adding the groundbreaking ceremony for the project will be done soon.

    Obielom, who is Chief Executive Officer of GEONEFT LLC Moscow, Russia added that initiative will complement the industrialization and human development policies of Governor Charles Soludo.

    While advocating for peace among the Igbos across the world, he urged the Igbos to assist one another for the overall interest of the people.

    He said: “My team is working with different government in the Southeast and beyond to create business projects that will empower the people.

    “The time has come for the Diasporans to come back and invest to create more jobs and employment. I’m reaching out to our people across Europe, Africa and every part of the world to support our our country.

    “My desire is how we can kickstart the Diaspora City in Nigeria where investors and business people around the world can have a one-stop business environment for both importers and exporters.Things must change and I am ready to drive the necessary change for my people.

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    “Today we are proud of what our governors are doing in Igbo land and I must say that I am a proud citizen of Anambra state.

    “We are making efforts to present our blueprints to all the governors of the  Eastern region. An international conference on business development is coming soon to Awka”.

    Obielom said that God has blessed the igbos as the people are enterprising, hardworking and committed in life, business and service.

    He equally commended the governors for uniting the people and thanked President Bola Tinubu for the appointment of Mrs. Bianca Ojukwu and other igbos into different offices in his government.

  • Banks’ credits to economy rise to N118tr

    Banks’ credits to economy rise to N118tr

    Bank’s credits to Nigeria’s economy rose from N81. 7 trillion to N117.9 trillion by the third quarter of this year.

    The latest data from the Central Bank of Nigeria (CBN) shows double-digit growths in credits to the government and the private sector.

    Banks’ credits include sovereign issuances, loans, trade credits, and other account receivables and supports provided by banks to the government and the private sector within a period.

    A breakdown indicated that credits to the private sector (CPS) accounted for nearly two-thirds of the total credits to the economy, rising by 27.5 percent from N59.51 trillion by September 2023 to N75.85 trillion by September 2024.

    CPS  accounted for nearly three-quarters of total credits by the third quarter of last year.

    However, government’s reliance on the domestic banks to bridge the budget deficit saw an increase in loans to the government by 89.8 percent from N22.14 trillion in the third quarter of last year to N42.02 trillion in the third quarter of this year.

    The proportion of government financing to total financing thus increased from 27.12 percent in 2023 to 35.65 percent in 2024. The proportion of credits to private businesses dropped from 72.88 percent to 64.35 percent.

    Month-on-month analysis showed a modest recovery in CPS. It rose by 1.5 percent from N74.73 trillion last  August to N75.85 trillion in September.

     The CPS is a global measure of the banking sector’s balance sheet resilience and contribution to the national economic agenda.

    With banks posting resilient earnings and the immediate success of the ongoing banking recapitalisation, analysts believe they (banks) are in a stronger position to continue to support the national economic agenda.

    A major highlight of the ongoing government’s economic renewal agenda is the push for a $1 trillion economy, a major reason for the ongoing banking recapitalisation programme.

    Analysts at Cordros Capital said: “We project the CPS will maintain a double-digit expansion in 2024 full year as we believe the re-enforcement of the CBN’s limit on the loans-to-deposits macro-prudential ratio for deposit money banks (DMBs) will continue to drive the willingness of commercial banks to create risky assets.

    ‘’Nonetheless, we acknowledge that the increased monetary policy tightening measures may tether CPS growth.” 

    In the first cluster under the recapitalisation plan, six banks were believed to have raised more than N1.5 trillion in a momentous opening to the recapitalization process.

    The banks that have raised funds so far include Guaranty Trust Holding Company (GTCO) Plc, Access Holdings Plc, Zenith Bank International Plc, Fidelity Bank Plc, FCMB Group Plc, and Sterling Holding Company.

    Also, not less than five banks are rounding off preliminary documentation and approval processes to raise more than N1 trillion in the second cluster of the capital raising.

    Multiple sources confirmed that the banks had reached advanced stages in their pre-offer processes, with the two largest banks within the cluster expected to headline the capital raising this quarter.

    The banks include  United Bank for Africa (UBA) Plc, Stanbic IBTC Holdings Plc, Wema Bank Plc, Premium Trust Bank, and Jaiz Bank Plc among others. 

    Investment banking sources said UBA and Stanbic IBTC Holdings would lead the next cluster with the two first-tier banks expected to launch their offers within this quarter.

    Nigeria’s apex capital market regulator, the Securities and Exchange Commission (SEC), was said to be processing applications from the banks already. There were some six offers currently undergoing the regulatory approval process, the main regulatory hurdle preparatory to the launching of the offers.

    A report by the CBN showed that Nigerian banks had seen a significant increase in deposits during the first half of this year. The report indicated that banks’ demand deposits rose from N26.7 trillion recorded at the end of December 2023 to N33.0 trillion by June 2024.

    Banks had sustained steady growth in deposits across the quarters. Total demand deposits in the first quarter ended March 2024 had risen by 8.1 percent to N28.9 trillion. In the second quarter ended June 2024, banks’ deposits increased by 14.3 percent to N33 trillion.

    Nearly all banks have seen significant increases in deposits in recent periods, providing the headroom for most banks to create new loans and advances.

    Experts agree that increase private sector credit implies a major boost for the economy as there is a link between credit to the private sector and economic growth. Several studies have continuously found that increased lending by banks directly leads to increase in Gross Domestic Products (GDP).

    Read Also: Shettima, others reiterate importance of credit economy to Nigerians

    A study published by the CBN concluded that “credit is growth-enhancing, even when trade openness, monetary policy, investment climate, and infrastructure are low.” The study found that private-sector credit increases economic growth.

    The balance sheet strength of banks also determines the flow of credits, with the continuing increase in lending amidst macroeconomic headwinds underpinning Nigerian banks’ resilience and stability.

    In a study on ‘Balance Sheet Strength and Bank Lending During the Global Financial Crisis’, researchers at the International Monetary Fund (IMF) examined the role of bank balance sheet strength in the transmission of financial sector shocks to the real economy.

    The study found that “banks with strong balance sheets were better able to maintain lending during the crisis”.

    According to the study, banks that were ex-ante more dependent on market funding and had lower structural liquidity reduced the supply of credit more than other banks.

    “However, higher and better-quality capital mitigated this effect. Our results suggest that strong bank balance sheets are key for the recovery of credit following crises, and provide support for regulatory proposals under the Basel III framework,” the IMF report stated.

    Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said the growth in credit to the private sector could be attributable to increase in economic activity.

    He however pointed out that other factors such as inflation and devaluation could moderate such increase.

    CBN Governor  Olayemi Cardoso said the ongoing recapitalisation would strengthen banks further to drive the $1 trillion national economic target and support stable growth in the economy.

    According to him, additional capital would not only provide a substantial buffer for banks against potential economic challenges but also enhance Nigeria’s banks’ capability to support massive economic growth and play competitively globally.

    Experts agreed that considering the increasingly changing dynamics in the banking sector and the overall economy since the last recapitalisation, it has become necessary to strengthen the banks’ financial positions.

    The CBN had in March 2024 released its circular on the review of minimum capital requirements for commercial, merchant, and non-interest banks. The apex bank increased the new minimum capital for commercial banks with international affiliations, otherwise known as mega banks, to N500 billion; commercial banks with national authorisation, N200 billion and commercial banks with regional license, N50 billion.

    Others include merchant banks, N50 billion; non-interest banks with national license, N20 billion, and non-interest banks with regional license will now have N10 billion minimum capital. The 24-month timeline for compliance ends on March 31, 2026. 

    Under the new minimum capital base, CBN uses a distinctive definition of the new minimum capital base for each category of banks as the addition of share capital and share premium, as against the previous use of shareholders’ funds. While several banks have shareholders’ funds over the new minimum capital base, their share premium and share capital significantly fall short of the new minimum definition.

  • A petroleum economy

    A petroleum economy

    I have always insisted that there is nothing that can be described as the Nigerian economy if only because all economic activities in this county defy the basic laws of Economics. One could argue however that Economics not being exactly a hard science would leave holes in its laws wide enough to drive a fully loaded tanker through. Also, unlike all those other scientific areas of study; mathematics, physics, chemistry and so on, economics is a fairly new area of study even though it’s origins have been traced back more than three thousand years, to Aristotle and his students.

    The acknowledged father of the study of modern economics is Adam Smith who in conformity with the Greek origins of the subject was a philosopher.  Several other early economists including Karl Marx were also philosophers who saw the world through different prisms and have scattered their light in several different directions and broken it into different colours so that observers see various versions of the same thing depending on which ground they choose to stand on. This has led to the development of different schools of economics. The point with Nigeria however is that wherever you stand in respect of our national economy you are never going to be able to see anything with the desired level of clarity.

     Over the years, there have been several schools of economics, perhaps the most influential at least for some time, the Chicago School under Milton Friedman, ardent supporters of the power of the market who swear by the purity of the forces unleashed by the blind folded market to push national economies into the plush oasis of prosperity. Such was the recognition given to these Chicagoans that joining the Department of Economics in Chicago was for a long while, a guarantee of the Nobel prize in Economics at no distant future. The fact that the Nobel Prize situation has changed suggests that the work coming out of Chicago at that time was no more than a fickle item of contemporary fashion supported at the time by the terrible economic twins, Reagan and Thatcher, who extolled the dubious virtue of human greed as a means of driving national economies to universal prosperity.

    Whilst it is true that market forces are clean, they bear little relations to the universal human condition, except for the few who are in a position to exploit the market in all forms that catch their fancy. It is instructive that the two prime promoters of the free market forces as the driver of individual prosperity, Reagan and Thatcher, both succumbed to dementia later on, suggesting that even at the height of their powers their mental powers such as they were, were already much diminished by the condition which was going to prove fatal later on.

    The popularity of the theory of growth could only have  been severely damaged when the main laboratory within which the seeds of market forces were germinated was Chile. This was a country under the iron heel of Augusto Pinochet who committed so many crimes against humanity that he was only saved from prison by ill health and death. It is not surprising that one of the choice epithets hauled at this man of violence was beast, if only because his support for the righteousness of market forces was deadly, to say the least. The lesson to be learnt from this is that political interventions into the affairs of any society must have a recognisable human face if only to appease the sensitivities of the human beings who live at the sharp end of those policies. After all the economy should be at the service of human beings and certainly should not be the other way round.

    Read Also: Russian BRICS Summit and its impact on the Nigerian economy

    Having started this article with the admission that I am not convinced that there is anything to be neatly packaged as the Nigerian economy, I must qualify that by saying that at least there is a market in operation in Nigeria in which there is a great deal of buying and selling, even if there is no discernible pattern to the madness that runs that market. This is because the productive arm of a market economy in Nigeria is only conspicuous by it’s absence. We do not have people making things on an industrial scale which means that most of the goods in our market are produced overseas, separated from our chaotic market by vast distances. A prime example is what goes on in our oil and gas sector, the behemoth that drives what is supposed to be the Nigerian economy.

    For some forty years we have imported every drop of fuel with which to stoke the fires which have warmed our so called economy from a mythical land called Faraway. This means that we have been spending a fortune just to bring ashore what we need to power our so called economy. Furthermore, we have been paying vast sums of money in what has been described as subsidy to a gaggle of faceless people who have inserted  themselves into the unreachable crevices of our fuel equation.  They are referred to as a cabal but since they operate outside any government or government approved institution, they do not qualify to be called a cabal. I must leave their correct title to your imagination.

    The bottom line here is that for forty years or so, a tiny band of tape worms have attached themselves with  suckers of steel to our collective alimentary canal and had appropriated to themselves all the nourishment which could have been used to put some muscle on our emerging national economy. It is not too much to say that the likelihood of building an economy has been reduced to zero by the activity of those who are the modern equivalent of those who for many lifetimes were responsible for selling millions of Africans to what Bob Marley in his infinite wisdom decided to call merchant ships. The merchandise in this case being men, women and children most of them at the very prime of life. Like their criminal grandfathers these modern slave traders are fanning their outsized egos with baubles such as fancy garments and ridiculous vehicles including those that fly in the skies above. They leave these baubles to their children who have developed an insatiable appetite for things of little tangible value, leaving the rest of us to fend for ourselves as best we could but mainly unsuccessfully.

    Whatever you say of the Nigerian economy perhaps the most visible item within it is the petroleum industry. Nigeria is regarded as one of the largest producers of crude oil which in the good old days was injecting more than 2.4 million barrels of the black stuff into the world market everyday that God sent. We have mismanaged that process to such an extent that we are now producing and delivering less than half that volume, much of what is produced is simply blatantly stolen and cooked in makeshift refineries which are more dangerous than useful. The situation in the Middle East suggests that the price of crude oil is going up soon. However, we would not be able to benefit from this because in real terms we have little oil left to sell. We must not forget, painful as it is that the last time we had a windfall of twelve billion dollars under similar circumstances, the whole thing just went up in smoke, never to be seen or even heard of  any more. Crucially, that humongous sum of money never did land in the Nigerian market for the benefit of our economy.

    For forty years and more, we have been using scarce and increasingly precious foreign exchange to buy fuel from Faraway. Ships have been bringing in refined petroleum products from overseas even though we had  no less than three refineries which could have been refining crude oil for our benefit but for reasons known to the managers of the oil sector, they are still much more interested in importing petrol than making the product available for our consumption.  Even now with availability of a refinery capable of supplying all our fuel needs, some powerful people are still fighting a tenacious rear guard action in defence of the uneconomic status quo.

    Things get really interesting when the fuel lands in Nigeria. It is first, weather permitting, offloaded from the mother ship into smaller sister ships from where they are pumped into tanks. And then nearly half of it simply disappears, smuggled to neighbouring countries where it fetches a temptingly high price. The rest is pumped into tankers, many of them in vintage condition and then sent several thousand kilometres around the country. Our roads are fairly infested with these fully loaded contraptions most of them accidents waiting to happen and too many of them happening. There are too many of those trucks experiencing very inconvenient  brake failures which are the cause of what Nigerians call ghastly accidents leading to fatalities in the hundreds. This is an eventuality which becomes reality far too many times. Far too many times too, these tanker accidents are followed by conflagrations which lead to the incineration of people and a great deal of property. Unfortunately, that is the Nigerian way. Each accident in which a ridiculous number of people die is a photo opportunity for overdressed government officials. They arrive at the scene of the gory event, make sympathetic but ineffectual comments and are then wafted away from the scene in a whirl of rotating helicopter blades. The dead are swiftly buried and life goes back to normal if the conditions now governing our lives can be described as normal. A panel of investigation is set up to find out the remote and immediate causes of the accident. Their report, painstakingly cobbled together is lost in the bureaucratic swamp which surrounds such incidents.

    Close to two hundred  Nigerians were recently roasted to death in Jigawa state in the aftermath of a tanker accident. That accident is representative of the current Nigerian situation as it could have been avoided altogether or the effects could have been minimised. The tanker carrying a full load of petrol took off from Kano 110 kilometres away en route Nguru along a typically unlit expressway. Where else would you expect to have an expressway covered over completely with a pall of darkness outside of Nigeria? It is not only that the road is dark but it is also lavishly decorated with potholes that need to be avoided if the journey is not to come to an abrupt end. The driver, why is he on that dark road a little before midnight with only the fear of armed robbers for company? That is a personal question to which even he may not have an answer but under the circumstances, I feel justified in asking it. To return to the journey, the tanker is moving along at a fair clip, moving faster than it should be going when for some reason it has to avoid something on the road. The lethal combination of darkness, speed, obstacle on the road jamming with driver fatigue or loss of focus causes the driver to lose control of a tanker fully loaded with petrol and inevitably the tanker ends up on its side in a ditch, it’s volatile cargo liberated from its fractured tank. Alive to the danger of his situation, the driver, he thinks only about how to make a quick escape and he flees the cabin at great speed which he maintains as soon as his feet touch the ground in an attempt to put a great deal of distance between himself and the ticking bomb lying in the ditch.

    The next chapter in the tragedy follows as news of the accident reaches town and the inhabitants eager to make profit from the accident arrive on the scene of the accident bringing with them all kinds of vessels with which to cart away as much of the accessible fuel as possible. In their thinking, anything that can somehow be converted to liquid cash was not to be allowed to go to waste. In spite of the sensible cordon thrown around the stricken tanker, people trample over each other as they struggle to salvage precious fuel from the tanker. Inevitably a spark is somehow generated and everyone and everything around are engulfed in hot flames and nearly two hundred souls are companionably liberated from tortured bodies and pass into a body of unpleasant history. This is an occurrence we have to live with at this time in our dystopian communities.

    Thanks to Miss Abayomi Morolake Lamikanra who suggested that I write this story.