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  • Nigeria has no register of national assets, says Accountant General

    Nigeria has no register of national assets, says Accountant General

    Accountant General of the Federation, Oluwatoyin Sakirat Madein has told the Public Account Committee of the House of Representatives that the government does not have accurate records of its assets and liabilities.

    Madein who was responding to the 2020 audit report of the Auditor General for the Federation said even though the MDAs were required to carry out a valuation of their assets and liabilities, there has never been budgetary allocation for the exercise which she said will be very expensive to carry out.

    The oAuGF in the report on the ‘Negative Net Assets,’ expressed worry over the negative net assets of the Federal Government of Nigeria totaling N33.3 trillion. The total assets stood at N10.1 trillion while the total liability was N43.4 trillion thereby leading to a negative net asset of N33.3 trillion.”

    The report further showed that the “Federal Government’s total current assets was N1.7 trillion while total current liability was N16.3 trillion thereby leading to a difference of N14.6 trillion. This means that the FGN will not be able to meet up with its current obligation/commitment. This also suggests that the Federal Government of Nigeria is faced with a high debt burden which could hamper the development of key infrastructures.”

    She admitted that without the asset valuation of the government, the financial statements of the government cannot be said to be complete and will not give a fair view of government finances.

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    Asked to confirm whether the government has an asset register containing the list of all government assets, she said “I have not seen any asset register. We can only build one when all MDAs have submitted their list.”

    She said MDAs were supposed to carry out such valuation since 2019, adding that she was not sure if that has been done.

    She assured the Committee that all issues in the audit report will be addressed by her office and that the various MDAs will be instructed to henceforth apply the required standard in preparing their financial statements.

    She said that the MDAs have not been able to prepare ABS  stand-alone accounts because they were still studying the IPSAS which was introduced in 2016 and was supposed to be used by them in preparing their statements.

    She also said that the categorisation of government assets and liabilities will be carried out going forward, adding that while 30 issues were raised concerning the federation account, 26 others were raised concerning the MDAs.

    She said the concerned MDAs will be required to respond to issues concerning them either directly or through the OAGF, adding that all errors identified will be corrected and will not occur again going forward.

    On extra-budgetary spending by 256 MDAs on their overhead, she explained that in most cases, such extra-budgetary spendings are funds accessed from the Service Wide Vote

    The MDAs were said to have spent over N284.316 billion in the 2020 fiscal year, in breach of provisions of the 1999 Constitution (as amended) and extant financial regulations.

    She explained that even though the money is available as budgeted for in the Service Wide Vote, there are usually procedures that must be followed before such funds are. Made available, adding that sometimes, the procedures would require the approval of the President for the money to be released.

    She said “In the course of the Auditor General’s opening statement, he mentioned that legacy assets of the Federal Government had not been valued and included in the financial statements.

    “That is where the net assets are coming from. And we discovered that the valuation of assets is something that takes time. Like the entire National Assembly is an asset of the Federal Government that do come into the financial statements; airports all over. So, the valuation of the assets are the critical case now.”

    While maintaining that there is no national asset register in existence, she stressed that the financial statements do not give the true financial performance of the Federal Government, however noting that efforts are ongoing to address the lacuna and ensure that necessary valuation is carried out.”

    However, while admitting that the money in the service-wide vote is budgeted by the National Assembly, the Chairman of the Committee, Bamidele Salam said the Service Wide Vote should not be seen as a slush fund for MDAs.

    He said the question is whether the funds received have been used for the purpose it was meant for.

    Hon. Salam who lamented that over 300 MDAs have failed to submit audit reports to the oAuGF in breach of extant financial regulations, for between five to 10 years frowned at the failure of relevant regulatory agencies from enforcing relevant laws.

    Hon. Salam also unveiled plans to investigate the utilisation of the Service Wide Vote which he noted that Mr. President has the power to grant approval for its utilisation.

    While noting that the Service Wide Vote should not be seen as a ‘slush fund’, he argued that the National Assembly would exercise its constitutional powers to investigate its utilisation.

    The committee invited the 256 MDAs to come and show evidence on why they should engage in extra-budgetary spending.

    Auditor General of the Federation (oAuGF), Mr. Shaakaa Chira maintained that all public officers must adhere to extant financial regulations.

    While noting that all the assets and liabilities of the Federal Government were not captured in the financial reports he argued that: “as we speak, key assets like airports, dams, railways, all generating (power) stations, roads, bridges, Federal Government buildings are not valued.

    “You will not see them in the financial statements which is not good enough,” the Auditor General said.

    He also noted that up till now, most of the MDAs have not prepared their financial statements to the oAuGF in breach of extant financial regulations, adding that most of the MDAs have failed to provide stand-alone audit statements as required in the IPSAS accounting system adopted by Nigeria.

  • Nigeria’s poor regulatory systems

    Nigeria’s poor regulatory systems

    Sister Olawunmi just subscribed for a 2Gb data plan on one of the nation’s telecom networks, sadly by the next day she cannot make use of such services for her thesis research, efforts to reach the customer care to lay complaints are automatically frustrated as that network is off the air leaving Sister Wunmi frustrated at a system where regulation has failed to work, it’s not just telecoms, every  sector in Nigeria  has repeatedly suffered from the non existence of proper regulation passing on the buck to the ordinary Nigerian who is vulnerable. The absence of effective regulations in Nigeria is indeed a reason why Nigeria continues to be a limping giant with a number of it’s goods and services not meeting set standards of other nations as well as has failed to help attract the required investments in a number of sectors.

    Regulatory agencies naturally should play  play a critical role in ensuring compliance with laws and regulations, promoting fair competition, and safeguarding public interests. However, in Nigeria, these institutions have far too often failed to fulfill their mandates, resulting in dire consequences for the country’s economy and society. This essay aims to discuss the poor performance of regulatory agencies in Nigeria and the implications it has had on various sectors.

    There are a number of reasons for the poor performance of regulatory agencies in Nigeria, one of them is notably corruption, while we also have lack of funding, political interference, inadequate legal framework, lack of accountability and incompetent personell.

    When buildings collapse trapping and killing many within such structures, a 9 out of 10 reasons for such a tragedy would be majorly due to a lack of regulatory functions. While banks continue to cause their clients much havoc owing to a number of their transactions failing while they snugly assure such a customer of getting his money back within a particular amount of days irrespective of what such transactions were meant to resolve. Let’s not even talk about the penny pinching that goes on within our accounts for which we are to laid back to question.

    Truth is that regulatory agencies will not work for as long as the regulatory officials are known to demand bribes or engage in other forms of corrupt practices in carrying out their duties. This not only undermines the effectiveness of these agencies but also erodes public trust in them.

    Stemming from a lack of funding, this in turn leads to a lack of resources and capacity for these agencies to effectively carry out their regulatory functions. Insufficient funds also limit their ability to recruit and retain qualified personnel, resulting in reduced productivity and effectiveness.

     Regulatory agencies in Nigeria are often subject to political interference, with politicians and other powerful figures exerting influence over their operations. This interference compromises their autonomy and independence, leading to decisions that may not be in the best interest of the public.

    Inadequate legal framework: The legal framework governing regulatory agencies in Nigeria is often weak and outdated. This hampers their ability to enforce regulations effectively, as they face legal constraints and loopholes that can be exploited by those they are supposed to regulate. Similarly regulatory agencies in Nigeria often operate without proper checks and balances. There is a lack of transparent and effective mechanisms for holding these agencies accountable for their actions or inactions. This creates a culture of impunity and negligence, further contributing to their poor performance.

    Lastly, a combination of these factors naturally result in the recruiting of Incompetent and poorly skilled staff as many regulatory agencies in Nigeria suffer from a lack of competent and qualified personnel. There is often a disconnect between the knowledge and skills required for effective regulation and the capabilities of those appointed to regulatory positions. This lack of expertise compromises the efficacy of these agencies.

    To address the poor performance of regulatory agencies in Nigeria, there is a need for systemic reforms. This includes improving transparency, accountability, and professionalism within these agencies. Additionally, tackling corruption, providing adequate funding, updating the legal framework, and reducing political interference are crucial steps for improving their effectiveness.

    The poor performance of regulatory agencies in Nigeria has created significant obstacles for business growth and foreign investments. Corruption and bureaucratic red tape have stifled entrepreneurship and discouraged potential investors. The World Bank’s Ease of Doing Business Index consistently ranks Nigeria poorly due to these issues, deterring both local and international investors.

    Moreover, weak regulatory enforcement has allowed the spread of informal and unregistered businesses, undermining the competitiveness of formal businesses subjected to stringent taxation and compliance requirements. This concept of unfairness further deters potential investors and discourages job creation within the formal economy.

    The failure of regulatory agencies in Nigeria has had far-reaching consequences on the economy, public health, and business growth. Addressing the issues afflicting these institutions is essential for the country’s development and progress. Transparent and accountable governance, coupled with institutional reforms, are necessary to restore public trust, combat corruption, and strengthen regulatory oversight. By doing so, Nigeria can create an enabling environment for businesses, attract investments, and ensure the well-being of its citizens

  • Sustainability and project management: A path to Nigeria’s green future

    Sustainability and project management: A path to Nigeria’s green future

    It has become paramount to incorporate sustainability into project management in this age, which faces the most serious challenges ever posed to humankind: environmental degradation and climate change. Olayemi Windokun, a Nigerian-Canadian project manager and an ever-enthusiastic advocate for sustainability, is right at the heart of that innovation, fusing techniques of strategic project management with ideas from environmental science to complete value delivery across many industries, writes IBRAHIM ADAM.

    Olayemi Windokun’s groundbreaking work has earned him recognition both locally and internationally. He champions the adoption of sustainable methods in project delivery, helping Nigerian businesses reduce environmental footprints while optimizing resources. His initiatives have set benchmarks for how organizations can achieve operational efficiency without compromising the environment.

    Qualifications and Experience

    Olayemi brings a wealth of experience to the intersection of project management and sustainability. A Project Management Professional Certification (PMP) and Lean Six Sigma expert and practitioner, he leverages data-driven methodologies to optimize processes, reduce waste, and improve efficiency in project execution. With a strong academic background, including a Bachelor of Science in Statistics at the University of Ibadan, Nigeria and a Bachelor of Technology at the Northern Alberta Institute of Technology, Edmonton, Canada, Olayemi’s career is built on a foundation of excellence and innovation.

    In addition to his academic achievements, Olayemi has over 20 years of professional experience managing complex projects across Nigeria and Canada sectors. He is an expert in PMBOK® Guide and Agile methodologies, along with a good understanding of sustainability principles leading him to position himself as a leader in promoting sustainable project management. He now lives in the United States, studying for his master’s degree so he can use his knowledge and experience to contribute to the U.S. economy.

    Driving Sustainability Through Innovation

    Olayemi’s career is a testament to the power of innovative thinking. Leveraging his expertise in project management frameworks and sustainability, he has successfully led projects prioritizing environmental responsibility.

    One notable example is his initiative at LifeGate Technologies Limited in Edmonton, Canada, where he infused data analytics into the project life cycle to enhance decision-making and optimize resource use. By incorporating sustainability metrics into project execution, Olayemi ensured reduced waste, energy efficiency, and long-term viability—principles that are now widely applicable to Nigeria’s growing infrastructure and energy sectors.

    Olayemi drove a groundbreaking initiative in waste management in Ikeja, Lagos State, attempting to curb the overflow of landfills and promote recycling habits. He proposed a waste segregation program by engaging with the local government and private waste management companies, including recycling hubs in strategic locations around the city. Therefore, in the first year, recycling rates could grow by 25 percent in Lagos and marked a decrease in poor waste disposal practices.

    He champions a renewable energy program in Ibadan, Oyo State, Nigeria, intended to bring solar power into the houses of the currently underserved communities. Under AGILE project management principles, Olayemi’s team could install solar microgrids in five neighbourhoods, reduce baseload dependency on diesel, and cut those neighbourhoods’ emissions by 40%. The project could also open employment windows for skilled technicians in the communities while raising awareness of sustainable energy solutions within the communities.

    Looking ahead, Olayemi plans to launch a comprehensive capacity-building program in Ibadan, Nigeria designed to equip project managers with the knowledge and tools needed to integrate sustainability principles into their work. This initiative will include workshops, certifications, and strategic partnerships with local institutions to embed sustainable practices in public and private sector projects.

    Transforming Project Management in Nigeria

    In a country where traditional project management approaches often prioritize immediate goals over long-term impact, Olayemi’s work stands out. He calls for promoting project management frameworks that embrace sustainability considerations for social, economic and environmental aspects at all stages of the project life cycle.

    According to him, speaking on the importance of sustainability, Olayemi says, “Including sustainability into project management isn’t a choice but necessity. Projects should be designed to benefit today’s generations and those yet unborn if Nigeria is to achieve economic development goals.”

    His mandate is aligned with Nigeria’s commitments towards realizing the United Nations Sustainable Development Goals (SDGs), most importantly, energy accessibility and clean energy, responsible consumption and production and climate action.

    Challenges and Opportunities

    Though the path toward sustainability in project management is great, challenges still occur. Resistance to change, inadequate technical knowledge, and limited resources are just a few of the hurdles organizations have to get through. Olayemi is nonetheless optimistic, as he mentions Nigeria’s youthful population, which is complemented by new technological innovations that may help change the tide of affairs.

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    Olayemi said companies can overcome such barriers by developing cross-functional collaboration, investing in green technologies, and focusing on education and capacity building. The leadership he provided in conducting SWOT analyses for the optimization of projects points to identifying of strengths, weaknesses, opportunities, and threats of sustainability initiatives.

    A Call to Action

    Indeed, Olayemi’s work is a challenge to policymakers, businesses, and project managers in Nigeria, and even beyond, that they need to rethink strategies. By embracing sustainable project management practices, organizations achieve regulatory standards and also start gaining a competitive advantage within an increasingly global economy.

    As Nigeria keeps finding its way up the economic development ladder, leaders such as Olayemi remind us that sustainability is not solely an environmental issue but also an opportunity to create value that lasts for people, businesses, and the planet.

    Conclusion

    Olayemi’s achievements underscore the immense potential of integrating sustainability into project management in Nigeria. His visionary leadership and innovative approaches provide a roadmap for businesses to embrace green solutions, enhance efficiency, and drive sustainable development.

    For Nigeria to secure a greener, more prosperous future, the time to act is now—and with experts like Olayemi leading the way, the possibilities are endless.

  • Six ways to survive heat, scorching weather in Nigeria

    Six ways to survive heat, scorching weather in Nigeria

    This season, Nigerians are experiencing heatwave, causing millions of people to suffer through scorching heat.

    The situation is made even worse by erratic power supply across the country. 

    The World Meteorological Organization (WMO) defines heat waves as a period of prolonged, excessively hot weather that is often accompanied by high humidity.

    Heatwaves are becoming more frequent and severe because of climate change.

    The Nigerian Meteorological Agency (NiMet) predicted a prolonged heatwave across the country in the coming days.

    NiMet had predicted that: “Air temperatures hit 41°C over the North and 39°C over the South with model Projections indicating temperatures to remain high in the coming days.”

    The agency warned that the high level of heat can cause dehydration, heat-related illness and respiratory issues, among other chronic conditions.

    Dehydration could also cause fainting, chicken pox disease, measles, heat rash, weakness of the body, slight fever, dry lips, heat-related illnesses, respiratory issues, and increased vulnerability to chronic conditions.

    Several studies have shown that heat could also lead to preterm birth and stillbirth for pregnant women exposed to extreme heat.

    Some of the signs to look out for include:

    – Dry lips

    – Excessive thirst

    – Excessive sweating

    – Dehydration

    – Weakness

    – Nausea

    – Small blisters

    – Heat rashes

    – Mild fever

    – Nosebleeds

    – Rapid heartbeat and breathing

    – Cramps, usually in the arms and legs

    – Confusion

    – Fainting

    Here are the ways to survive this period:

    – Take adequate fluid – Staying hydrated in hot weather is paramount to staying healthy. Drink at least three litres of water daily to hydrate yourself.

    – Wear light, breathable clothing to reduce exposure to high temperatures – Overdressing in the heat can make you hot faster; choose light or loose cotton clothes to help reduce heat rashes and absorb sweating.

    – Avoid strenuous physical activity during peak heat hours — Stay indoors as much as possible between 12:00 noon and 4:00 pm evening time. 

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    – Take cold baths – For adults, a cold bath in hot weather would help reduce blood flow to the skin and, in turn, simmer down body temperature.

    – Seek shade – Shade can play an important role in reducing the overall heat load on the human body during extreme heat by providing relief from the direct heat of the sun. When we are exposed to the sun, the heat from the sun’s rays can directly heat up our skin and increase our body temperature. 

    When we are in the shade, we are protected from the direct heat of the sun, which can help to reduce our body temperature and lower the overall heat load on our body.

    – Use fans – Air-conditioning is an unaffordable luxury for most here, so people generally rely on fans. Fans will help reduce the effect of sweating profusely. 

  • Breakthrough in Knowledge Management Fuels Sustainable Business Growth in Nigeria

    Breakthrough in Knowledge Management Fuels Sustainable Business Growth in Nigeria

    A groundbreaking peer-reviewed study has revealed how innovative knowledge management practices are transforming Nigeria’s business landscape, providing compelling evidence that strategic knowledge systems are key drivers of sustainable growth, particularly for small and family-owned enterprises. Published in the Revista de Gestão Social e Ambiental (Vol. 18, No. 5, 2024), the research offers one of the most comprehensive examinations to date of how knowledge creation, capture, sharing, transfer, training, and application influence business resilience, profitability, and expansion in emerging economies.

    The article, titled “The Linkage Between Knowledge Management Practices and Sustainable Business Growth: Empirical Evidence from Nigeria,” was conducted by a distinguished, multidisciplinary team of scholars including Dr. Samuel Chukwudi Ilodigwe, a lecturer and researcher at the University of Ibadan. The scholars bring years of expertise in Marketing, Business Administration and Entrepreneurial Studiesto enhance the value of the article for socio-economic benefits. 

    Drawing on data from 503 small and medium-sized enterprises (SMEs) across Lagos State Nigeria’s economic powerhouse, the researchers employed advanced statistical modeling to uncover the critical role of knowledge management in accelerating business sustainability. With 469 valid responses (a 93.2% response rate), the analysis revealed that knowledge management practices explained 25.2% of the variance in sustainable business growth (R² = 0.252, F(6, 461) = 27.167; p < 0.05), demonstrating a robust and statistically significant relationship.

    Among the six dimensions examined, knowledge sharing emerged as the strongest predictor of growth, followed by knowledge capture and training. Conversely, knowledge creation and transfer showed negative coefficients, highlighting the urgent need for stronger innovation strategies and intergenerational succession mechanisms in family-owned firms.

    The study’s findings carry important policy and practical implications. For policymakers, the research calls for frameworks that promote digitalization, formal knowledge-sharing systems, and leadership transition planning to safeguard institutional memory. For entrepreneurs, it provides a data-driven argument for integrating knowledge management practices into daily operations to enhance competitiveness, workforce stability, and market positioning.

    Importantly, this study extends the Knowledge-Based Theory of the Firm to the context of developing economies, addressing a critical gap in global scholarship. While prior research has largely focused on large corporations in advanced markets, this study demonstrates how knowledge systems can foster resilience, innovation, and economic diversification in resource-constrained settings like Nigeria.

    The research contends that institutionalizing knowledge management practices is no longer optional but essential for building enterprises capable of withstanding economic shocks, fostering innovation, and achieving long-term sustainability. As Nigeria seeks to diversify its economy and expand employment opportunities, the study offers an evidence-based roadmap for strengthening SMEs, the backbone of the nation’s industrial sector.

    With its rigorous methodology, international publication, and actionable insights, this research represents a scholarly breakthrough with real-world economic significance, highlighting the critical link between knowledge, innovation, and sustainable growth in emerging markets. Strategic knowledge management is a key driver of sustainable growth for Nigerian SMEs, making it essential to institutionalize these practices to foster innovation, safeguard institutional memory, and ensure long-term economic sustainability.

  • ‘Nigeria has potential to produce 2.2 mbpd’

    ‘Nigeria has potential to produce 2.2 mbpd’

    The Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Mr Gbenga Komolafe, says Nigeria has the potential to produce 2.2 million barrels per day (bpd) as against the current production of between 1.5 million and 1.6 million.

    He spoke yesterday at the 8th Sub-Saharan Africa International Petroleum, Exhibition and Conference (SAIPEC) in Lagos.

    The conference was organised by the Petroleum Technology Association of Nigeria (PETAN) with the theme: “The Next Steps: Accelerating African Content”.

    According to Komolafe, oil and gas in Nigeria respectively represents 30 per cent and 34 per cent respectively of African oil and gas reserves.

    “Although the actual national production currently averages 1.33 million barrels of oil per day and 256 thousand barrels of condensate per day, the national technical production potential currently stands at 2.26 million bpd, and the current OPEC (Organisation of Petroleum Exporting Countries) quota is 1.5 million bpd.

    “Thus, the Commission is taking strategic measures to arrest some challenges confronting us in order to boost production and meet the potential,” he said.

    The NUPRC boss said part of the measures by the Commission was to improve transparency in hydrocarbon measurement and accounting.

    He said the Commission engaged in collaborative work programme administration with the exploration and production (E & P) companies and close monitoring to ensure that they meet their work programme obligations.

    He said aside from hydrocarbon resources, Nigeria is also blessed with potentials for green and blue hydrogen, solar, wind, bio-mass and critical minerals for development of clean energy technologies as well as growing population predominated by young people.

    “With a coastline along the Gulf of Guinea, market size of more than 200 million people projected to reach between 390 million and 440 million people in 2050, Nigeria represents hope for Africa.

    “Interestingly, about 70 per cent of the Nigerian population are under 30 and 42 per cent are under the age of 15, representing a huge economic asset.

    “Indeed, Nigeria’s potentials are derived from its human, natural and material resources which must be mobilised to propel her on a path of economic growth and development and for her sustainable energy future,” he added.

    Komolafe said the global energy landscape was indeed currently in a state of rapid change in response to climate concerns.

    He said as a result, the oil and gas industry is experiencing crucial changes that will have significant bearing on the global energy future.

    He cited the recent concluded COP28 suggestions on pathways for phasing-out fossil fuels, which were vehemently challenged by OPEC as the cartel reiterated its call for just, inclusive, equitable and balanced energy transition.

    He said President Bola Tinubu, at the United Nations General Assembly (UNGA), in September 2023, underscored the need to align Africa’s transition pathway with the continent’s circumstances and overall economic pursuit.

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    The NUPRC helmsman said the Agenda for Nigeria and other resource-rich developing economies is that the evolving energy dynamics must be calibrated to ensure energy justice, equity, inclusivity, and sustainability.

    “The new dynamics in the global energy arena necessitate that Nigeria, and other countries, long dependent on the exploitation of oil and gas as the mainstay of their economies, re-examine their strategy to secure a blossoming energy future while meeting the global climate goals.

    “Hence, for Nigeria, the legal, governance, fiscal and regulatory frameworks provided in the Petroleum Industry Act, 2021 (PIA), among several objectives.

    ”Also, aim to promote transparency, efficiency, and innovation for sustainable development of national hydrocarbon resources as well as renewable energy investment to meet the global environmental sustainability goals,” Komolafe explained.

    In his remarks, Chairman of PETAN, Mr Nicolas Odinuwe, urged government and institutions to desist from taking oil and gas industry stakeholders funds as part of its budgetary allocations.

    Odinuwe said the funds are either surplus nor idle, describing the backbone of local content as community engagement and participation.

    “Sustainable local content initiatives rely on active involvement from the local community to create, produce, and consume content that represents their interests and values.

    “When the community takes ownership of the content creation process, it ensures authenticity, relevance, and a deeper connection to the environment.

    “As the Chairman of PETAN, I am honoured to stand before you, representing an association that has been at the forefront of driving innovation and growth in the petroleum industry.

    “Our commitment to excellence extends beyond oil and gas, as we recognise the transformative power of African content and its ability to shape narratives, inspire change, and drive economic growth.

     “The Next Steps: Accelerating African Content” is a theme that resonates deeply with us, according to him as it signifies our collective determination to propel African content to new heights, to break barriers, and to create opportunities for our talented content creators.

    ”We firmly believe that the time has come for Africa to take centre stage, to showcase its rich cultural heritage, and to tell its stories to the world.

    NAN also reports that over 100 participants and 20 exhibitors attended the conference.

  • UK signs pact to boost trade, investment with Nigeria

    UK signs pact to boost trade, investment with Nigeria

    The United Kingdom (UK) has signed an Enhanced Trade and Investment Partnership (ETIP) with Nigeria to boost trade and investment between both countries as well as unlock new business opportunities for both nations.

    UK Minister for Trade and Business, Kemi Badenoch, alongside Nigeria’s Minister of Industry, Trade and Investment, Doris Uzoka-Anite, signed the ETIP yesterday in Abuja. 

    Badenoch expressed optimism about the partnership, saying the UK and Nigeria are vital partners with longstanding historical and economic ties.

    “UK businesses are already seeing huge success in Nigeria – one of the fastest-growing economies in the world.

    “I’m delighted to be here to sign our new enhanced partnership, which will allow UK firms to export their world-class goods and services more easily and expand their footprint in Nigeria,” Badenoch said.

    The ETIP is the first the UK has signed with any African country and is designed to grow UK’s and Nigeria’s already thriving trading relationship, which totaled £7 billion as at last September. 

    The Senior Press and Public Affairs Officer and Comms Lead, Prosperity and Economic Development, Ndidiamaka Eze, said the arrangement would pave the way for opportunities in sectors crucial to both economies, such as finance and legal services, as well as foster new collaborations in innovative areas, like the creative industry. 

    “The ETIP also initiates further collaboration on the UK’s ambitious Developing Countries Trading Scheme (DCTS), launched last year which puts in place simpler and more generous trading terms for Nigeria and 36 other African countries.

    “Nigeria is a major beneficiary of changes introduced by the DCTS and will see tariff reductions on over 3000 products, meaning that 99 percent of existing Nigerian exports to the UK by value will be duty-free,” she said.

    Eze explained that tariffs had been removed on Nigerian goods to promote value addition in important non-oil export sectors, such as cocoa butter and paste, sesame oil, and clothing and apparel. 

    “These changes will boost trade with the UK and support the Federal Government of Nigeria’s wider trade policy priorities,” Eze added.

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    Uzoka-Anite said the UK is one of Nigeria’s long-standing strategic partners with whom the nation shares strong ties.

    She added: “It gladdens me that this relationship is set to deepen as we sign the Enhanced Trade and Investment Partnership.”

    The minister noted that the partnership would see Nigeria-UK relations move beyond one of shared history and strong ties to one of shared economic prosperity: from increasing market access and supporting the nation’s vibrant businesses to creating more jobs and accelerating greater investments in sectors of mutual interest.

    Uzoka-Anite said: “The ETIP will help to build on the significant progress already made in resolving market access barriers in the education and financial sectors, which have led to a more favourable trading environment for UK and Nigerian businesses.

    “In addition, through this partnership, there is an opportunity to leverage UK and international investment from the City of London, which is home to the top financial and professional services.”

    The CityUK International Managing Director Nicola Watkinson highlighted the role of Nigeria for the UK-based financial and related professional services industry.

    He described it as “an important growth market”.

    “We look forward to continuing our engagement through the working groups to increase market access and remove regulatory frictions,” Watkinson added.

  • Nigeria’s Economic Crisis: What are governors for? 

    Nigeria’s Economic Crisis: What are governors for? 

    First Ladies are said to be the closest and most influential advisers to presidents. This is because they are the first and last ones these powerful figures see every day. They have the privilege of sharing counsel in the most intimate of environments where other couturiers can’t get to.

    So, when the president’s wife, Senator Oluremi Tinubu, visited the Emir of Kano, Aminu Ado Bayero, a couple of days ago, he gave her a message for her spouse. ‘Tell your husband Nigerians are suffering,’ the monarch said.

    Last week in the same city, Kano State Governor, Abba Yusuf, at an interactive session with the business community bemoaned the state of the economy and promised to inform the president in person of hardship in the land.

    On Monday, governors of the main opposition Peoples Democratic Party (PDP) gathered together for consultations on the state of their party and the country. They later issued a communique proclaiming ‘Nigeria was on the road to Venezuela.’

    Perhaps, there are parallels because Venezuela is a Latin American country with some of the world’s largest crude oil reserves. But it somehow managed to go from boom to bust, such that today it is more of a basket case and the regular subject of global ridicule.

    The socioeconomic and political crisis which began around 2010 during the presidency of Hugo Chávez, worsened under his successor Nicolás Maduro. It has been marked by hyperinflation, worsening starvation, disease, crime and high mortality rates, leading to massive emigration from the country.

    A United Nations report estimated in March 2019 that 94% of Venezuelans lived in poverty, and by 2021 almost twenty percent of citizens (5.4 million) had fled their country. The crisis is that grave and is ongoing.

    It is a moot point whether Nigeria’s condition is on such an irreversible trajectory as to be glibly compared to what is happening in this South American country. Naturally, it isn’t the business of an opposition party to be understanding when its rival is in an awkward position. It is their job to paint themselves as a better option.

    I agree that the president should be held accountable when things are headed south on the economy or with security, just as he should take credit when things start going swimmingly. Tinubu, himself, has been quoted as saying no one should pity him given that he applied for job and Nigerians graciously elected him.  

    Prior to the February 2023 presidential elections, some farsighted people had written that they pitied whoever would succeed Muhammed Buhari as president, given the precarious state of the economy and continuing challenges with insecurity.

    Truly, the buck stops at the president’s table but he isn’t the only locus of power in a federation. At least, the constitution says we are a federation. So it’s a bit rich for these governors to carry on as though they haven’t contributed to the making of our national mess; or have no responsibly for cleaning it up.

    The 1999 Nigerian constitution sets out clear roles for federal, state and local governments. Section 4 (1) of that document contains 68 items on the Exclusive Legislative List over which only the Federal Government of Nigeria can legislate.

    The Concurrent Legislative List provides for items which the federal and state governments can legislate on. This list includes allocation of revenue; antiquities and monuments; archives; collection of taxes; electoral law; electric power; exhibition of cinematography films; industrial, commercial, or agricultural development; scientific and technological research; statistics; trigonometrical, cadastral, and topographical surveys; universities; technological and post primary education.

    Even if the federal government takes the lead, the framers of our constitution anticipated a critical and complementary role for states and their governments in ensuring the economic wellbeing of the country. That is why it specially created a National Economic Council (NEC), headed by the Vice President and comprising all 36 governors.

    Listening to the ongoing national discussion you would think government exists only at federal level. In reality, the constitution provides enough leeway for creative and competent governors to make life reasonably comfortable for their people.

    But in most states governance has not risen beyond the level of gathering to collect the monthly Federal Account Allocation Committee (FAAC) handout and proceeding to share same. A 2022 report by the National Bureau of Statistics showed that all 36 states and the Federal Capital Territory (FCT) put together could only muster N1.93 trillion as Internally Generated Revenue (IGR). Of that number only six states – Lagos, Rivers, Ogun, Delta, Oyo, Kaduna and the FCT – managed revenues in excess of N50 billion yearly.

    Aside what accrues to them as FAAC share, some states also enjoy special windfall through the Ecological Fund pay outs by reason of their location. Governors preside over humongous security votes over which there is little accountability.

    As his second term wound down, former Rivers State Governor, Nyesom Wike, embarked on the inauguration of a slew of infrastructural projects which he boasted were funded through refunds from the Buhari administration. He them revealed that sister states in the Niger Delta had benefitted and challenged citizens to ask their governors what they did with their share.

    The cat was set amongst the pigeons! His embarrassed and rattled colleagues started rendering incoherent account of funds they never disclosed had come into their coffers.

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    This sorry state of affairs is especially noticeable in the South-South zone which, paradoxically, produces the bulk of the nation’s wealth through crude oil, and whose states have received trillions in the past two to three decades, yet remains one of the poorest regions in the country.

    In many states today, workers are owed huge arrears of monthly salaries. A lot of them cannot pay the miserable minimum wage. This is after many governors have castrated local governments by seizing their funds and preventing them from carrying out their functions. That is when properly elected councils are not being fired on a whim, to be replaced by appointees of the governors.

    Some of those presiding over this scandalous state of affairs have the gall to cry about hunger and hardship in the land. How won’t there be hunger when people are not paid in states where the only business is government business?

    In some Northern states, governors are notorious for spending more time in Abuja than in their capitals. While he acted as interim chairman of the All Progressives Council (APC), Yobe State Governor, Mai Mala Buni, was often criticised for his absenteeism from home.

    It is heartrending that despite the resources that have accrued to states over the past few decades, Nigerians who aren’t fleeing overseas keep flocking to Lagos and, to some extent, Abuja. How did we mismanage a country such that just two or three cities are the only magnets for people seeking a better life?

    The office of the president is powerful, no doubt. But state governors are not incapacitated in any way by what the constitution permits them to do. They can develop agriculture in their domains and ensure that food produced in rural areas get to city centres. They can create industrial hubs where people can find good paying jobs. They can make an effort to pay the measly wages of those who work them and stop the ego-tripping of appointing hundreds of unproductive ‘Special Assistants’!

    Nigerians are welcome to scrutinise how well Tinubu is doing in office. But no president, no matter how visionary, well-meaning or hard working, is going to turn this country around without states and local governments which receive a healthy chunk of national resources pulling their weight.

  • Akin Rotimi’s tears for Nigeria

    Akin Rotimi’s tears for Nigeria

    • By Ike Willie-Nwobu

    Sir: Some weeks ago, Akin Rotimi, member representing Ekiti North in the House of Representatives, broke down while moving his Motion for increased security for his people. His tears provided another poignant moment for Nigeria’s telling insecurity.

    The surging insecurity in the state has hit at the very heart of the traditional institution. Two monarchs were killed last month in what was suspected to be an attempted kidnap.

    Insecurity is a menace that contradicts tradition as well as convention. It spares no one. It takes no prisoners. If it was sparing, it would have refrained from taking the lives of the two Ekiti traditional rulers.

    From Abuja to Kaduna to Imo, insecurity is ravaging Nigeria. It is tearing lives and livelihoods to pieces.

    Owo, Ondo State, still remembers that dark when worshipers were mauled down in church. Plus Olu Falae would still remember his encounter with kidnappers. The entire Southwest remembers the skirmishes different rural villages have had with kidnappers.

    There is also a distinct recollection that the chaos in Nigeria’s northwest and northeast did not flare up in a single day. It started little by little.

     When a community’s security is breached, more than tangible things are lost. A breach of security leaves very deep wounds. It shatters any sense of serenity and even defiles the sanctity of such a community. In fact, it trivializes what they hold sacred.

     It is what the good people of Ekiti North experienced recently. It is what Akin Rotimi, their representative, brought to the floor of the House of Representatives.

    The loss of traditional rulers who the Yoruba hold in divine esteem is a cruel blow to the people. It invariably means that more people are questioning their place in Nigeria.

     Amotekun operates in the Southwest. The group was formed for a time like this. It indicts the Nigerian state that in the face of such an iniquitous assault on the sensibilities of the people of Ekiti North, the people would rather place their confidence in a vigilante group than the agents of state.

    It is just the second month of the year, but the insecurity troubling Nigeria is indeed a very vicious one. The new government is a few months from reaching a year in office, but already its hands are full with Nigeria’s security concerns.

     It would appear that efforts are in full flow to discredit the new government so early in the day. And it has gone beyond optics. Every effort channelled towards discrediting a government that is still trying to find its feet is in itself incredibly dangerous to the Nigerian people. Every effort directed at sabotaging Nigeria’s security and sowing fear highlights the many dangers facing Nigerians as citizens of a country where insecurity is rife.

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    The two monarchs were killed in rural areas. That in itself serves as a pointer to a problem that won’t just go away. The entire country may be insecure, but it is the rural areas that have borne the brunt of this insecurity. Deadly attacks have concentrated there, displacing thousands and destroying countless means of livelihood. Crucially, the attacks also sow fear by showing that Nigeria’s rural areas which used to be an oasis of serenity and security have since become unrecognizable.

    The students kidnapped have since been released, but not before their terrified families shelled out millions in money, plates of fried rice, energy drinks and whatever else their abductors demanded. It is a grand irony. If those who perpetrate these heinous crimes against Nigeria still know what the good life looks like, why do they choose to live in the forests like wild animals and bring other Nigerians to come and live with them?

     It is clear that the government’s security model is failing, with deadly consequences. Whatever the present administration is doing to secure the country is clearly not working, and it is time things changed. Securing the country requires a holistic approach that would integrate the aggregate of voices ready to contribute to Nigeria’s pursuit of peace and security.

    • Ike Willie-Nwobu,

    Ikewilly9@gmail.com

  • Ethical crisis in Nigeria’s banking sector

    Ethical crisis in Nigeria’s banking sector

    Nigerian Naira is on a downward spiral against the US dollar this year, spelling trouble for citizens and businesses alike. The weak naira is one of the drivers of high inflation in our import-reliant nation, hovering around 28.9%.

    Economic theory states that inflation and import have positive relationship. For example, an increase in aggregate spending exceeds the local demand that leads to the need for import to meet the local demand. As import quantity’s demanded increase, the price of imported goods and services rise, causing the inflationary pressure to the economy.

    The Central Bank of Nigeria (CBN) said Nigerians must avoid dealing with speculators in the foreign exchange (FX) market to save the naira from further decline.

    The international monetary system after World War II was dubbed the Bretton Woods system after the meeting of forty-four countries in Bretton Woods, New Hampshire, USA in 1944.  The countries agreed to keep their currencies fixed (but adjustable in exceptional situations) to the dollar, and the dollar was fixed to gold. Countries settled their international balances in dollars, and U.S. dollars were convertible to gold at a fixed exchange rate of $35 an ounce.

    On 15th August 1971, President Richard Nixon issued order for the gold window to be closed, ending dollar convertibility to gold. Foreign governments could no longer exchange their dollars for gold; in effect, the international monetary system turned into a fiat one. Fiat money is government issued currency that is not backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed.

    ‘Floating’ the dollar allowed currency values to be determined by traders in currency exchange markets. Currencies from countries with strong economies and sound monetary and fiscal policies were given more value than currencies from countries with shaky or weak economies and policies. This ‘opening’ of the system created a framework for the speculation game.

    In 1970s and ’80s, about 80% of foreign exchange transactions in Nigeria were to conduct business in the real economy. For instance, currencies change hands to import machineries, spare parts, raw materials, etc. Real transactions actually produce or trade goods and services. The remaining 20% of transactions at that period were speculative, which means that the sole purpose was an expected profit from buying and selling currencies themselves, based on their changing values. So, even in the days when the real economy was dominant, some currency speculation was going on. There had always been that little bit of frosting on the cake. Today, the real economy in foreign exchange transactions is down to 20% and 80% is now speculative. What had been the frosting has become the cake. The real economy has become just a small percentage of total financial currency activity.

    In Nigeria’s foreign exchange tapestry, it is hard to describe where exactly Bureau De Change, BDCs reside. They are not quite an official market but you need a license from the CBN to operate one. They are not the black market either as they can get their dollars legally from official sources. Depending on the mood of their regulator CBN, they are either demonized or tolerated as part of the foreign exchange architecture of the country. Persistent whispers for years have also said that most of the active BDCs licenses out there are held by CBN staff inside the bank and commercial bank directors.

    These insiders, Commercial Banks and BDCs buy foreign exchange at low official rates and sell the forex at a higher rate on the black market. The black market is equally supported through the nefarious activities of some members of the Manufacturers Association of Nigeria who buy foreign exchange at low official rates usually under the guise of importing raw materials or machinery for manufacturing and then simply selling the forex at a higher rate on the black market for a tidy profit. The diaspora remittances sold through the black market also boosts the market.

    So, the financial crisis in the country is fueled by the unethical conducts of bankers aided and abated by the manufacturers and Diasporas. If the banks and financial experts are key players in the forex racketeering, we should look elsewhere for solutions to the financial crisis paralyzing the economy.

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    Listen to the bankers and financial experts pontificate on measures to arrest inflation and Naira depreciation, and the solutions would appear seamless; just requiring the political will for implementation. Zebrudaya, the comedian would say— Far, Far, Far, Foul! Quite, they prescribe such solutions as: Monetary Policies including Interest Rate Control, Money Supply Issue; Fiscal Policies including Government Expenditures, Tax Increases, but these are far from the solutions. The one and only effective prescription is to kill the black market. The black market is driving both the supply and the rate of foreign exchange transactions in the country.

    One sure way of arresting currency depreciation is increase in forex earning, and this could be made possible through export of processed or manufactured goods. However, Nigeria Manufacturers, aside from their involvement in forex racketeering, fail to meet international best practices, as they churn out substandard goods, which are not exportable. Nonetheless, we can still earn the much needed foreign exchange through Foreign Direct Investments, FDI; if government partners with foreign investors to establish processing industries for essential raw materials in high demand at international markets. Such items as Methanol and Soda Ash are capable of earning the needed foreign exchange.

    Methanol is in high demand at international markets, as an additive to refined Premium Motor Spirit (Petrol). Furthermore, Methanol fuel is a good alternative to Petrol, better than Compressed Natural Gas, CNG which holds greater security risks, since it is a combustible, high pressure gas.  Soda Ash is another material in high demand, as additive to glass manufacturing, detergents, and rechargeable batteries. Government should persevere in its efforts to attract foreign direct investment in those essential industrial materials to facilitate the earning of necessary foreign exchange. We should also target conserving of forex through sufficient food production and this could be made possible through the commercialization and embracing of improved crop varieties churned out from Biotechnology agencies and institutions.  So, the ball is in the court of our Innovators, Scientists and Technologists; to chart the course for improved foreign exchange earnings.