The Nation Newspaper

Tag: panacea

  • Hydropower panacea for Nigeria’s epileptic power supply, say experts

    Experts, under the aegis of Nigeria Hydropower Professionals Association (NHPA), yesterday attributed electricity shortages in the country to non-development of hydropower.

    The professionals said Nigeria is ranked an economically water-scarce country due to a lack of investment and management of its water resources.

    The pioneer director of the National Centre for Hydropower Research and Development and Chairman of the Board of Trustees (BoT) of NHPA, Prof Bolaji Sule, stated this in Ilorin, the Kwara State capital, at the inauguration of the association.

    He said: “Nigeria is bestowed with large rivers and natural falls; the main water resources that provide rich hydropower potential are the Niger and Benue rivers as well as Lake Chad Basin. With an estimated 1,800 m3 per year of renewable water resources available, this is not a poor-water country. Yet, it is ranked as an economically water-scarce country due to a lack of investment and management to meet the demand.

    “The total installed capacity is 12,522 megawatts (MW), not including off-grid generation, of which 2,062 MW is hydropower. The total exploitable potential of hydropower is estimated at over 14,120 MW, amounting to more than 50,800 GWh of electricity annually.

    “The roughly 85 per cent of hydropower yet to be developed, therefore, offers solutions to address existing power shortages.”

    Sule described NHPA as a non-profit membership organisation committed to advancing sustainable hydropower development.

    He said: “Nigeria is one of the few countries yet to form its own professional body to champion sustainable hydropower development agenda. From inception 57 years ago, Nigerian engineers have occupied enviable position and made some landmark strides, but foreign experts seem to hold sway in some aspects of our professional practice in the country.

    “Government at all levels in Nigeria normally chooses to patronise foreign contractors and service providers instead of indigenous professionals because of lack of adequate policy framework to protect the indigenous engineering personnel.”

    Also, the association’s President Imoh Ekpo said: “The problems of electricity in this country lie with insufficient generation, transmission and distribution capacity. It is that value chain that is the issue. The more we start developing more of the hydropower withy what we have already from the thermal aspect is the best for this country.

    “So, we need to do that as much as possible. When gas is not available, then the renewable energy, which is non-consumptive, can be used to strengthen other source of power in this country.”

     

  • ‘State police panacea for security of life, property’

    The Chairman of House Services Committee of the Lagos State House of Assembly, Fatai Oluwa, has said state police is the best remedy to secure the lives and property of residents in these trying times in the country.

    Oluwa, who represents Ajeromi-Ifelodun Constituency II, was reacting to the continued attacks on communities and killing across the country, especially by armed bandits.

    The most recent of such attacks was in Zamfara State where 42 people were killed and several communities were razed.

    The lawmaker noted that the police had proven to be incapable of tackling sundry security issues in the land, except in a state like Lagos.

    He said: “Currently, Lagos is the most secured state in Nigeria. This is because Governor Akinwunmi Ambode and the House of Assembly had their strategies from the beginning. It is no news again that the state government invests heavily in security, being a primary responsibility.

    “To shore up the needed manpower for security of life and property in the state, the lawmakers passed the Neighbourhood Watch Bill sponsored by Speaker Mudashiru Obasa. We are all witnesses to the positive results from these concepts and ideas.”

    The lawmaker noted that the call for state police does not mean the nation’s original law enforcement agency should be scrapped.

    According to him, the state and the national security agencies would play complementary roles.

    Oluwa said: “We have always complained about the inadequate number of policemen to secure the surging population.

    “There is also this genuine argument that most policemen posted to states are strangers and that they hardly understand the languages spoken in their areas of assignment. Of course, there is a relationship between language, culture and safety.”

    Oluwa hailed Vice President Yemi Osinbajo for standing firm in his argument for the creation of state police.

  • Diversification: Agric sector growth as panacea

    To World Bank Consultant Prof Adebiyi G. Daramola, ending food importation cannot be a walk in the park. The immediate past Vice Chancellor of the Federal University of Technology, Akure (FUTA) said concerted efforts must be made to grow agriculture by seven per cent to the rewind poverty. In his lecture entitled: “Sustainability of growth and the future of agriculture in Nigeria”, the professor identifies the problems and suggests the way forward. The paper was delivered in Abuja at the Agriculture and Food Summit organised by Vintage Press publishers of The Nation.

    According to Wikipedia, Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors.

    It is currently ranked as the 30th-largest economy in the world in terms of nominal Gross Domestic Product (GDP), and the 23rd-largest in terms of purchasing power parity.

    It is the largest economy in Africa; its re-emergent agricultural and manufacturing sectors became the largest on the continent in 2013 before the oil prices crash and subsequently the recession. It produces a large proportion of goods and services for the West African subcontinent.

    Previously hindered by decades of macroeconomic mismanagement under the military, economic reforms of the democratic governments have put Nigeria back on track towards achieving its full economic potential. Under democracy, Nigerian GDP at Purchasing Power Parity (PPP) has more than tripled from $170 billion in 2000 to $451 billion in 2012, and an all-time high of $568.5 billion in 2014 before the decline owing to recession.

    Although estimates of the size of informal sector (which is not included in official figures) put the actual numbers closer to $630 billion. The latest official estimates put Nigeria’s GDP as at 2016 at $405.5 billion, followed by Egypt at $336.3 billion and South Africa at $294.8 billion for the same period.

    Correspondingly, the GDP per capita doubled from $1400 per person in 2000 to an estimated $2,800 per person in 2012 (again, with the inclusion of the informal sector, it is estimated that GDP per capita hovers around $3,900 per person). (Population increased from 120 million in 2000 to 198 million in 2018). These figures were revised upwards by as much as 80 per cent when metrics were recalculated subsequent to the rebasing of its economy in April 2014.

    Although oil revenues contribute about 70 per cent of government revenues, oil only contributes about nine per cent to the GDP. Nigeria produces only about 2.7 per cent of the world’s oil supply. Although the petroleum sector is important, as government revenues still heavily relies on this sector, it remains a small part of the country’s overall economy in terms of both employment and contribution to GDP.

    According to a Citigroup report published in February 2011, Nigeria will get the highest average GDP growth in the world between 2010 and 2050. Nigeria is one of two countries from Africa classified among 11 Global Growth Generators countries. Even at projected economic growth rate of 2.1 per cent for 2018 International Monetary Fund (IMF), Nigerian economy is still considered to be robust.

    The most recent initiative at revamping the Nigerian economy by the current administration is the Economic Recovery and Growth Plan 2017-2020 (ERGP). This bold initiative is resting on certain principles which include focus on tackling constraints to growth, leverage the power of the private sector, promote national cohesion and social inclusion, allow markets to function and uphold core values. These principles are to guide the country in delivering three broad objectives of the ERGP, namely, restoring growth, investing in our people and building a globally competitive economy. The good news now is that the country is out of recession, the price of crude oil is climbing, external reserve is growing and foreign direct investments are flowing into the country.

     

    The agriculture sector

     

    Agriculture in many developing countries like Nigeria remains the highest employer of labour. It has been estimated that approximately 30 per cent of Nigerian population of 198 million are employed in agriculture. Nigeria ranks sixth worldwide and first in Africa in terms of farm output.

    The sector accounts for about 18 per cent of GDP and almost one-third of employment. Nigeria has 19 million heads of cattle, the largest in Africa.

    Though Nigeria is no longer a major exporter, due to local consumer boom, it is still a major producer of many agricultural products, including: cocoa, groundnuts (peanuts), cotton, rubber and palm oil.

    In the colonial era, Nigeria’s agricultural policy was export cash crops oriented because the colonial masters depended on the country to produce raw materials for their agro-based industries.

    At independence and few years after independence, the country’s population was about 55 million people and domestic production of food crops was enough as at that time. No food import bills were recorded and export cash crops were bringing foreign exchange to the regional governments to finance their capital expenditure budgets. Then, the civil war period of 1967 – 1970 constituted a setback for the growth of agriculture sector. Through the 1970–1999 era, the agriculture sector witnessed serious decline. The military government relying on the oil windfall found it easier and cheaper to import food items into the country than to develop the rural areas and promote agricultural transformation.

     

    A typical case of ‘the Dutch disease’

     

    The first decade of the democracy witnessed some modest but largely uncoordinated efforts to revamp the agriculture sector. Therefore, there were some successes and growth recorded within the sector. They were largely due to favourable weather and efforts of the Federal Government. However, in the last seven years, cocoa production, mostly from obsolete varieties and over-aged trees has increased from around 180,000 tons annually to 350,000 tons. This increase is due mainly to favourable weather conditions and improved management, especially production inputs.

    The agricultural sector suffers from extremely low productivity, reflecting reliance on antiquated methods. Agriculture has failed to keep pace with Nigeria’s rapid population growth, so that the country, which once exported food, now imports a significant amount of food to sustain itself.

    However, efforts are being made towards making the country food sufficient again. The rice revolution has reduced our dependence on importation by at least 90 per cent. Thanks to Kebbi, Anambra, Ebonyi, Nassarawa, Lagos, Ekiti and some other states that have stepped up rice cultivation. The business model of LAKE (Lagos-Kebbi) Rice remains a reference point. At many social events now, local rice is always the favourite menu.

    Also the substitution of HQCF in the bakery and confectioneries industry pioneered by the ATA with the active support of the Federal Institute of Industrial Research, Oshodi (FIIRO) has also significantly boost demand for cassava flour.

    So many other value chains have also received some boost, e.g. soyabean. Just that their results have not been as successful as that of rice and cassava. The major agricultural products include cassava (tapioca), corn, cocoa, millet, palm oil, peanuts, rice, rubber, sorghum and yams.

    Since 2003, livestock production has also been increasing, in order of metric tonnage, featuring eggs, milk, beef and veal, poultry, and pork, respectively. Since that same year, the total fishing catch was 505.8 metric tons and also growing. Not as much efforts have been expended on the livestock subsector as has been done on crops.

    Therefore productivity growth has not been as high within the livestock subsector. In fact, some people have argued that the old known cattle routes have been eliminated due to pressures of physical development and urbanisation. This development has been identified as one of the reasons for the farmers/herdsmen clashes not only in Nigeria but all over Africa where open grazing is the culture.

    However, ranching has been tested to lend itself to better cattle productivity and improvement based on evidence from more developed countries have suggested.

     

    Challenges of the agricultural sector

     

    The agriculture sector in Nigeria is unable to fully unlock its potentials due to so many reasons that we need to highlight here. They are not presented here in order of importance. Nonetheless, addressing each of them simultaneously will unlock the potentials and can even make the sector grow by double digits annually.

     

    Agricultural policy

     

    In the last seven years, Nigeria has been getting the agricultural policy right, starting with the Agricultural Transformation Agenda (ATA) and now the Agricultural Promotion Policy (APP). The best approach is to constantly review the policy to make it more favourable and responsive to developments in the macroeconomic environment and even outside world. There is the need for a standing policy group that will not only be working on agricultural policy but will be constantly interfacing with the economy-wide policy group to ensure that no inconsistencies are allowed. There had been instances in the past where taxes, tariffs and interest rates were not harmonised leading to negative impacts on agriculture.

     

    Technology

     

    Deployment of technology within the agriculture sector in Nigeria is still abysmally poor. Our agriculture sector is yet to take advantage of modern technology. One major reason for this state of affairs is the low electricity generation within the country. Many modern agricultural technologies these days are electricity-dependent and Nigeria will not be able to benefit from them.

     

    Infrastructure

     

    One major infrastructure that discourages investments in agriculture is the absence of rural feeder roads. It hampers market linkages as farm produce cannot be easily evacuated and taken to nearby markets. This problem has led to many on farm losses, which was estimated to be as high as 40 per cent of production. Electricity from the grid is another major problem both on farm and for value addition. The absence of electricity has made it impossible for some useful technologies to be adopted. As the population continues to grow at about 2.5 per cent annually in Nigeria countries like China and India have invented technologies that allow less land to be used to produce more farm output. However most of them require electricity for deployment.

    Storage facility like silos, barns is another major setback for agriculture. There are periods of surplus and scarcity based on seasons. As a result of the lack of facility for storage small farmers become price-takers. Similarly, the absence of dams has restricted the number of cropping and made farming to be weather-dependent and solely rain-fed agriculture.

    The opportunity for dry season rice farming in some states of the North have made farmers to be busy and engaged all year round.  This constitutes part of unlocking of potentials. The guaranteed market offered by LAKE Rice also offers off-taker opportunity.

     

    Credit facilities

     

    Agricultural credit is very important in farming (being a high risk enterprise because it depends on weather and other hazards that are outside the control of the entrepreneur) but not attractive to lenders. So, for a very long time, investment funds have been very scarce for the agriculture sector. Many agriculture businesses can’t be profitable at the 25 – 30 per cent charged by commercial banks. The Agricultural Bank which is the development bank was grossly underfunded and operated more like public service than a for-profit bank. NIRSAL came on stream with ATA and sponsored by the Central Bank of Nigeria (CBN) as an intervention for agricultural financing has significantly mitigated risks that hitherto Nigerian banking sector has been wary of. It protects both the lender and borrower, coupled with agriculture insurance. As a result, a lot of private sector lending has been flowing into the agricultural sector making it a very good intervention

     

    Land tenure

     

    In many states of Nigeria, especially the southern part, the ownership and control of land, although vested in state governors according to the land use decree, in practical terms still resides with families. Even states have to pay compensations to land owners if it is to be acquired for public good.

    Therefore, there are still challenges associated with prospective farmers. Access to sufficient land required for profitable and commercial agriculture has always been, and remains a binding constraint. The irony in southern Nigeria is that, those who own the land, usually through inheritance, are not interested in cultivating it or are absentee landlords, while those that genuinely want to farm, don’t have access to the farmlands.

    A presidential committee, previously headed by Prof Akin Mabogunje, has been busy working on this issue. The leadership of the committee has recently changed to Prof Peter Adeniyi.  The committee is reviewing the land use decree with a view to removing all the impediments preventing the availability of land for both public and private uses. It is important to note herein that this factor is one of the serious constraints preventing new entrants from going into farming. The exorbitant cost of buying the land is a disincentive to budding entrepreneurs in the agriculture sector.

     

    Markets

     

    The organisation of agro-inputs dealers under the ATA has been a major breakthrough for agricultural sector in Nigeria. Inputs (such as fertilizers, credit, improved seeds, agrochemicals, tractors, etc) have been privatised and seriously catalyzed to stimulate efficient distribution for different value chains. Examples include the e-wallet system, CBN-supported NIRSAL (formal credit) and so many innovative systems.

    Output (products) of different crops value chains have been developed to the extent that derived demand for farm products have gone up with on and off farm processing using adaptive and modern technologies. The industry and market linkages involve the development of off-takers that use primary farm products as inputs in their production processes.

    The initiatives to boost agricultural business models of out-growers with the support of robust extension services led to revolution and growth in the farming sector. Standards (grades, cartels, barriers) are some of the quality challenges that the markets were facing in accessing organized markets locally and overseas.

    Part of the intervention of the government under ATA was to ensure that standardisation, grading and quality control were integrated into the agricultural products market. These various efforts led to tremendous improvement and growth in the agriculture sector of Nigeria. The new agricultural policy recognizes these and is only trying to build on the solid and successful foundation laid by the ATA.

     

    Support institutions

     

    In order for any system to succeed the importance of institutions cannot be over-emphasized. The design team of ATA recognized this important factor in transforming the agricultural sector. Many of the institutions met were dysfunctional, whereas, the sector could not function well without first reforming and strengthening some of the institutions.

    The team proposed the steps to be taken and many of the institutions were reformed. Examples of some of the institutions reformed include the National Seed Service, Extension services, Cooperative department, Animal husbandry, Grains Reserves, Women in Agriculture, etc. There isn’t enough time for me to go into the details of the reform and strengthening of each and every institution.

    One key direction common to all is the need to make them sustainable in order to support the transformation within the sector. It is however important to mention the new set of school leavers that are increasingly finding their feet in agriculture.

    They are undergoing training in institution like International Institute for Tropical Agriculture to become a new generation of agripreneurs. They form part of the new paradigm shift by engaging in agriculture as a profitable business. This mindset is one of the innovative ways by which the growth in the agriculture sector can be sustained.

    Processing:

    The need for value addition in order to enhance the employment opportunities available within the agriculture sector as well as improve farm-gate prices were at the heart of linking farmers to the processors. There is no gainsaying the fact that processing also has the possibility of prolonging the shelf life of a product that would otherwise been wasted due to spoilage and perishability. Some of the successes recorded under processing in the cassava flour substitution in the flour milling factories. The is also the expansion in demand arising from soybean for livestock feed-milling business,

     Security 

    This is a clear and growing threat to the growth and sustainability of the agriculture sector in Nigeria. There has been pilfering on farmers’ farms from petty thieves especially where security lapses exist.

    However, a threat that has started growing of late is the herdsmen menace in the Northcmetri of Nigeria. Incidentally, the Benue State that is worst hit by this terrorist activity is the food basket of the country. Truth must be told that the Nigerian nation for many years has not bothered to make plans for the livestock centers and cattle ranches in many states of the federation.

    With increasing urbanisation and climate change, many of the old cattle routes have disappeared while fodder land for their crops, have also gone with the urban development. The new trend whereby cattle herdsmen use rustling as an excuse for moving around with lethal weapons which are used for attacking villagers, farmers and kidnapping is unacceptable in a decent society.

    The threat to lives and properties has made many farmers to abandon farming in the affected States of Kaduna, Benue, Nasarawa, Adamawa and Taraba. There had also been reported cases in Kogi, Enugu and Oyo States. This security threat poses great danger to the sustainability of the growth of agriculture in Nigeria.

     Climate change 

    The change in climate due to human activities and environmentally hazardous by-products of our existence have contributed significantly to global warming, desert encroachment and environmental pollution. Precipitations have declined and become more erratic leading to droughts and flooding in some areas. Perennial rivers are drying up and forest areas are succumbing to population pressures. Agronomic calendars and timing of operations are no longer certain and yields are no longer as predictable as they used to be in the past.

    In order to address some of these consequences of climate change, the resuscitation and rehabilitation of irrigation schemes and dams in northern Nigeria where desert encroachment is threatening is ongoing.

    The advantage of this is that many northern states like Kebbi, Sokoto and Zamfara are producing dry season rice paddies on their farms. Serious afforestation efforts are also being promoted by federal and States governments.

     Agricultural insurance 

    Although agricultural insurance is available in the country to indemnify farmers against loss of investments on their farms, the new dimension of threats to life was not anticipated by the schemes at inception. The Nigeria Agricultural Insurance Corporation also received some boost and working capital from government as part of the ATA in order to respond to the increasing demand for agricultural insurance within the country.

  • Mutilated naira notes: e-payment channels as panacea

    Mutilated naira notes: e-payment channels as panacea

    Economic managers are worried over the prevalence of mutilated naira notes The Central Bank of Nigeria (CBN) is urging currency handlers not only to keep the naira notes in circulation sparkling by adopting global best practices, but also embrace alternative payment channels as being promoted under the cash-less policy initiative. COLLINS NWEZE writes that the use of alternative banking channels like Point of Sale (PoS), Automated Teller Machines (ATMs), web payments and other electronic banking channels will help cut the N2.15 trillion cash in circulation and promote better cash handling by consumers. 

    There are rules set by the Central Bank of Nigeria (CBN) to guide the printing, circulation and storage of the local currency – the naira.

    After the notes and coins have been printed/minted by the Nigerian Security Printing and Minting (NSPM) Plc and other overseas printing/minting companies, the apex banks takes charge as the sole issuing authority to other commercial banks.

    The currency-in-circulation rose to N2.15 trillion in the fourth quarter of last year. The figure was 21.1 per cent when compared to the figure in the third quarter of 2017. The development, the CBN’s economic report said, reflected the growth in currency outside banks.

    But, as the naira notes in circulation continue to rise, so is the damage done to them by those that transact with them. It is a regular sight to see people spraying mint notes at parties, writing on the notes, soling the notes, exposing them to liquids, and even squeezing them into inappropriate parts of their clothes.

    The CBN has never shied away from warning against abusing the naira notes. It says that anyone caught in the act would be prosecuted and if convicted the person risked six months in jail, or a fine of N50, 000.

    According to the bank, the abuse of the naira is contrary to its policy, adding that offenders would henceforth be arrested and prosecuted.

    The apex bank describes as unacceptable a situation in which Nigerians accord more respect to the United States (U.S). dollar above the naira, saying Nigerians ought to appreciate and value the local currency because it serves as a symbol of national identity.

    The regulator warns: “The naira has suffered abuse from majority of Nigerians. Today, we find some people spraying the naira at occasions, soiling it, writing on it, squeezing it while some are hawking it.

    “The CBN spent a lot of money in the printing of these naira notes. We urge Nigerians to respect the naira and value it. Anyone caught abusing the naira will risk a jail term of six months or pay a fine of N50, 000.”

    Besides, at the currency printing works of the NSPM Plc, quality is meticulously controlled throughout every process of currency production.

    This guarantees that every note issued meets the required standard. The CBN maintains an office called Mint Inspectorate in the premises of the NSPM Plc to maintain security and quality of the notes and coins.

    As a rule, the CBN issues currency to Deposit Money Banks (DMBs) through its branches and withdraws from circulation through the same channel. The notes deposited in the CBN by the commercial banks are processed and sorted to fit and unfit notes in line with the clean note policy. The clean notes are re-issued while the dirty notes are destroyed.

    As seamless as the processes look, many Nigerians have been speaking on why the notes are not properly handled based on the rules set by the apex bank.

    A former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mazi Okechukwu Unegbu, said technology and electronic payment remain the greatest steps to address the prevalence of old notes in the economy.

    He regretted that many Nigerians are still not conversant with e-payment, hence the need to adopt standard best practices in handling the notes.

    Unegbu said the financial inclusion gap in the country meant that more cash are still being kept at home, thus increasing the chances that such cash will be badly handled.

    He said banking penetration has continued to rise in urban towns, while the rural areas are left totally and the majority of the inhabitants adding to the unbanked population.

    “There has been greater focus on getting financial services to urban dwellers forgetting that rural dwellers are the ones that handle bank notes most and they need to be properly educated on the gains of keeping the notes clean”, Unegbu said.

    He suggested that the Microfinance Banks (MfBs) should be encouraged and supported because they remain the closest financial services to the grassroots.

    “We have to revive the MfBs because the banking technologies cannot help much in the villages. Even in the towns, when Automated Teller Machines (ATMs) dispense old and dirty notes. This has to be addressed if we must achieve better naira notes,” he said.

    He urged the CBN to put expiry dates on the notes, and continue to motivate banks to return old and dirty notes to the apex bank for new ones to be issued.

    Unegbu said: “I want to suggest to the banks to ensure that old and dirty notes that come to them do not return to circulation. And the people have to also develop a better culture in handling bank notes. They must learn to put naira notes in wallets and envelops when presenting them as gifts at parties or other ceremonies.

    “All of us are guilty. We need to discipline ourselves in handling the naira notes. We have to see the naira notes as very important and handle them properly. Those in the rural areas are disciplined and can even follow instructions on handling the naira if they are well educated through radio jingles and television”.

    He also disclosed that new notes are not regularly printed, or properly circulated, as they are given only to the high-net worth individuals, hence, by the time the notes get to the villagers, they are already defaced.

    He identified the costs of absorbing old notes and the fear of losing float for the waiting period to get new notes as reasons the banks are unwilling returning to the CBN.

    “I urge the CBN to do more to ensure that new notes get to the grassroots by empowering MfBs and also supplying them with new notes. They also need to educate the people on how to handle he notes,” he said.

    Richard Obire, a one-time Executive Director of Keystone Bank, blamed the rise in the rate of mutilated notes in circulation on the people’s social behavior as most of business transactions are still cash-based and through the informal market.

    He said many of the cash in circulation are not properly kept, hence the depreciation in their lifespan.

    Obire said: “Even when you put new notes in circulation, the behavioural patterns of Nigerians ensure that the notes have very short life span.

    Here, education is going to play major role in getting the people change such bad behaviors towards the naira. The radio and television messages must come in local languages to make room for better understanding of the sent and received messages.”

    He admitted the high cost of sorting, storing and moving old notes. Hence, all hands must be on deck to ensure that the notes handlers keep them in good conditions.

    Obire urged the CBN to give commercial banks targets based on their balance sheet sizes on the volume and value of notes to be returned every quarter and also monitor compliance while defaulters are sanctioned.

    Besides, he recommended the strengthening of the operators of mobile money to ensure more acceptance of their services as that would improve the quality of notes in circulation.

    He said there should be more investments in the mobile money business, as seen in Kenya where M-Pesa has turned around the fortunes of the grassroots economy.

     

    CBN’s position

    On its part, the CBN assured that it would work aggressively towards increasing financial inclusion rate to 80 per cent, by cutting down on the number of people excluded from the financial system to 20 per cent in 2020.

    The CBN Governor, Godwin Emefiele, who described the target as ambitious, disclosed that the bank had identified key strategies to cutting down the financial exclusion rate to 20 per cent by in the next two years.

    Specifically, he said that the bank would work with the Nigerian Communications Commission (NCC) on how best to take advantage of mobile communication to reach those that were financially excluded.

    The CBN chief said the country has moved from 46.3 per cent exclusion rate in 2010, to 41.6 per cent in 2016.

    According to him, specific areas of focus identified which would be pursued aggressively include “prioritising intervention and creating awareness to ensure patronage, incorporating non-interest financial services into CBN intervention programmes.”

    Others are “mobilising banks that offer such products for greater outreach and impact; massive rolling out of agents networks and creating awareness to increase adoption, and adoption of digital financial services as simple, flexible and easy alternative channels for reaching remote areas and rural hinterlands.”

    Emefiele added that the National Financial Inclusion Strategy was being reviewed for greater effectiveness and impact, adding that stakeholders would be sufficiently mobilised to participate.

     

    Road to financial inclusion

    Enhancing  Financial  Innovation  and  Access  (EFInA),  a leading financial sector development organisation working  to  improve  financial  inclusion in Nigeria  held  a  stakeholders’ workshop in Lagos. The workshop tagged: “The  role  of  government in driving financial inclusion in Nigeria” was  one of  many  similar  events  organised  by  EFInA to bring stakeholders to the table and promote discussions centered on driving policies to improve financial inclusion in the country.

    At the workshop, the EFInA board chair, Ms.  Modupe  Ladipo provided participants with  insights  into the recurring challenges and barriers to  inclusion.

    She  stated that  income  levels  remained  low while observing that the Northern part of the country remained particularly  disadvantaged  in  terms  of  access  to  financial  products  and  services.

    The  workshop  attracted  high  level  participation  including  the  United Nations  (UN) Secretary- General’s  Special  Advocate  for  Inclusive  Finance, Her Majesty Queen Máxima of The Netherlands,  applauded Nigeria  for  revising  the  National  Financial Inclusion  Strategy  after  five  years  of  implementation.

    She urged stakeholders  to  recognise  the  importance  of  leveraging  technology  and  expanding  mobile  money  to address the financial inclusion gap.

     

    E-payment

    The use of electronic payment systems offer a lot of benefits to its users but despite these, the Nigeria economy is still larged cash-based as many people prefer to carryout daily transactions with cash despite the implementation of the cash-less policy.

    Cashless policy is a policy established in 2012 by the CBN to curb excesses in the handling of cash.

    The policy was initiated not to eliminate the use of cash but to reduce the volume of cash in circulation.

    CBN Deputy Governor (Operations) Adebayo Adekola has said e-payment has continued to boost commerce through the use of ATMs, web payments, Point of Sale (PoS) Machines and other alternative payment channels.

    He said the e-payment should be supported in the interest of the economy.

    Adekola said the country was emerging from an era of magnetic stripe challenges which was effectively truncated with the migration to Personal Identification Number (PIN) and chip technology for card issuance.

    This, he said, has ensured a reduction in ATM fraud to zero with the aid of this technology.

    He said: “Since this feat, the industry has consistently been inundated with other types of fraud, from card not present fraud, to insider abuses and phishing scams. In all these, the forum has responded not only proactively but also effectively in fashioning strategies to combat these threats to our payments system.”

  • Nomadic education is panacea to herdsmen restiveness

    Nigeria can overcome the incessant clashes between herdsmen and farmers as well as similar occurrences elsewhere, through government’s  commitment toproviding quality basic education for nomads, the National Commission for Nomadic Education (NCNE), has said.

    The Commission noted that given the right atmosphere to operate, it can live up to its mandate.

    Speaking in Sokoto, the Director Programme Development of the Commission, Alhaji Aliyu Ardo, said with commitment by the authorities, nomads could also be used as focal points for building peace and harmony aimed at developing Nigeria.

    Ardo made the remark at a courtesy call on the state Commissioner for Basic and Secondary Education, Dr Jabbi Kilgori, shortly after a tour of schools under the commission.

    Ardo decried the level of dilapidation of existing structures in some of the schools the Commission established.

    He said: “There should be a balanced teaching staff with appropriate Lesson Plan to meet the secular and Arabic education of the children to encourage a participatory role.

    He said the essence of the tour was to critically view, assess and determine the level of progress or otherwise recorded since the establishment of the Commission some 28 years ago.

    “We want to get an analysis of the impact of those graduated over the years and how many have transited from basic to secondary and tertiary institutions.

    “If we identify them, we can strategically inspire their spirit by engaging them in their communities, particularly the girls,” he added.

    Ardo who led a team of five-member inspectors to Sokoto, lamented the enormous challenges within the system under which the schools are operating.

    “We visited some of the schools which include Dukuma and Toji, we were not impressed with the structures and sanitary, lack of water and other facilities including the teachers strength.

    “There were more girls than boys and a single building as classroom without furniture. In fact, we learnt that the school has only a single teacher since its establishment in 1992.

    “There should be routine monitoring and periodic supervision to check punctuality and state of facilities?” he urged.

    “It is sad that in a school established several years ago, only three were graduated and could not move further due to lack of basic support”, Ardo stated.

    Responding,Dr Kilgori explained that nomadic education has braced and inspired the learning spirit and culture of many nomads.

    “It has also encouraged the state government’s active participation in designing a sustainable plan for recruitment of teachers and proper restructuring of the system.

    According to him, enlightened nomads could be more instrumental in motivating others to key into modern endeavours which would further deplete the tendency of violence.

    “We are strategically working to develop all levels and forms of education in the state under the emergency declaration in full collaboration with SUBEB,” he added.

  • Creative photography as panacea for recession

    Creative photography as panacea for recession

    How does a professional and film photographer survive in these hard times? Experts at the Indigo Customer Meet (ICM) in Lagos say proactive creativeness may be  the answer. EVELYN OSAGIE reports.

    With the advent of the smart phones and other technological inventions coupled with the biting recession, the innovativeness of photography business and its allied industries are under test. How does a professional photographer make ends meet?
    Experts say the way out lies in proactive creativeness, noting that the hard times are not just a test of innovativeness of photographers and allied industries, but business opportunities in disguise.
    These submissions were made in Lagos at the customers’ week of a photo printing company, Indigo Digital, reputed for being the first company to produce the synthetic album.
    The experts urged professional/film photographers and photo-journalists to wake up to the realities of the times and reinvent themselves. They were charged to come up with fresh and creative ways to practise their trade.
    The event, tagged 2017 Indigo Customer Meet (ICM), which is in its second edition, drew lensmen, photo-journalists, photo artists and enthusiasts, cameramen and companies and journalists together. They included the President of LASPPAN, Mr Oluwatayo Folly Brown, George; Managing Director, Fuji Foto/Fuji Africa/Nigeria, Mr George Salem; Director, Renu Kana Nigeria Limited, Mr Kumar K. Datta; the Managing Director of Body Lawson Studios, Seyi Body Lawson; Leke “Coach LA” Ade, and EOM Communications General Manager, Mr Michael E. G. Agugo, was compère.
    In his address, Creative photography in the midst of recession, Lawson urged his colleagues to go beyond the regular practice of the profession by honing their craft and inventing fresh creative ways of practice. While encouraging them to make use of the social media, he observed that such moves would prevent the dearth of their trade in the advent of smart gargets and economic meltdown. He added that there was the need to “mix business with the art of photography”.
    “Creativity is what will take you from poverty to wealth. You complain there is recession, I say, this is the best opportunity for photographers to make their marks. Go back into the archives to the art of photography.
    “Do an upgrade, go back and study and retrain yourselves. Look at what you are good at, find out your deficiencies; value your time and self. Relationship is going to count this year. Creativity is what will take you to your place from poverty to wealth,” he said.
    “Coach LA” Ade talked about Maximising your industry relationship.
    He called for partnerships, advising that, to maximise relationships in the industry, photographers must pay attention to those in the allied industries within which they operate; in addition to offering quality services to clients. Citing the roles Don Barber and Lawson played in his career, he observed that mentorship would play a huge role in their development. He said: “In maximising your Industry relationship, you must first understand who you are; then, find people to sharpen your weakness. Identify your colleagues (younger, contemporary and senior) and those in the extended industry (printing companies and the media). Review your relationships regularly, but don’t stay with the same network. Hone your craft to prevent dearth of profession and career. Doing photography is different from doing the business of photography.”
    The digital photography company established in 2014 by Mr Isaac Antony also held a raffle draw to reward customers, which had been on since last October and lasted till last month. Winners went home with various prizes, including plasma TV, fans, cameras and other gadgets.
    Brown, who established his first studio in 1981, praised the company’s efforts, saying the new technological innovations have opened the industry to new frontiers. “I started with analogue but digital created more room for people to come in. We have dealt with many colour laboratories but Indigo is different, they were the first to begin the synthetic photo book.”

  • ‘Breaking walls of segregation is panacea for recession

    ‘Breaking walls of segregation is panacea for recession

    MILD RED Studios and The Edge Studio proprietor Nkechi Nwosu-Igbo, is an advocate of proactive partnership  between corporate bodies and artists.  Nwosu-Igbo, who is also the curator of the art exhibition segment of Lagos Book and Art Festival (LABAF), discusses with EVELYN OSAGIE, art-based solution for recession and the festival.

    What solution is art offering in this New Year, given the recession experienced last year?
    The solution that the arts have to offer is what we, as artists and our arts, have been saying for so many years that: “your voice must be heard”. The world is waiting for your message, whether as an artist or not. If you bring your knowledge and I bring mine, we can work hard and make this a better place. It is, however, funny how we treat history, historic monuments, culture and our arts. Imagine last year, a house that was more than 160 years old was knocked down in Lagos and nobody spoke up? We were all in our houses, talking. Should UNESCO tell us first that the house is a master piece before realising that it should not be knocked down? I am happy that more Nigerians are beginning to talk. But the arts and the artist(e)s have been speaking out on those issues even before the recession. And as always no one cared to listen.
    Was it what informed the choice of the theme of the exhibition?
    Yes. The theme, Who will blink first? is a known expression. In the face of terrorism, recession and anything you are facing, we are asking: “Who will give in first? When somebody is being oppressed, facing trying times, the question is “Who will blink first?” Although we are all suffering now and undergoing a tough time as a nation, will that make us stop being who we are and, suddenly, become criminals? The question to all of us is: “Who will give in first?”
    Even though, the exhibition has closed, the message is evergreen because art is timeless. As I have said before, our arts, not just at last year’s LABAF, are calling us to be the Voice. You don’t have to be an artist, writer, famous person, or need a stage to have a voice. We should stop appointing someone to be our voice, but be the voice. Let’s do our part, play our role in our corners and shine where we are. We should stand against abuse and social ills. Even in caring for children, you are changing the world. Whatever small thing you do in your neighbourhood is changing the world.
    How has been the experience curating LABAF’s art exhibition these past years?
    These eight years have been amazing; although it is not an easy task calling the artists, giving them themes and ideas, and producing the works. But the response each year has always been great. As a festival, we always add a diary behind the catalogue, so the experience remains fresh in their minds until the next edition. Last year’s exhibition was special. The depth and pain expressed in last year’s was also quite different. And the response was great: many were moved by the works maybe because of the general feeling. For the artists involved, they said they felt they were coming from a personal place. Jelili was arrested, locked up and sent to prison earlier in the year. He wasn’t even around at the time, but immediately I gave him the title, he went to work. The experience fired his muse. He stood his ground against those oppressing him and he did not allow the circumstance to bring him down and he was released. His resilience and courage is also a lesson for us in such times, and suit the theme perfectly.
    I noticed the colours of red and white were dominant in all the works. Was it deliberate?
    Red represents the theme that runs throughout each artist’s works. But it wasn’t planned. It just shows the general feeling. I have always worked with red. Red represents pain. For Jelili, it represents anger. And you can also see the earthen theme on his frames and so on, especially in Aderemi’s works. Instead of using original frames, he chose wood, something that would show the earth. You’d also see earth colours on Jelili’s – on the head of his figures, the stones on the floor.
    What was your installation about?
    My installation was a mix of diverse media, entitled: I will huff and puff and blow your house down. It was drawn from ‘terrorist’ wolf that was disturbing the three pigs. The fairytale as a title signifies a social class system where the powerful keeps taking and taking. The shovel and the bucket represent the houses and the things we build around them that prevent us from moving forward. And I am saying, it’s time for you to knock them down. The cups turned upside in the exhibition are not a good omen. Cups are supposed to be turned up to take in liquid. But when they are empty and then turned upside down, it means one has finished drinking, doesn’t want more and wants to leave the space. I am saying that when you feel empty, turned down, that recession is biting so hard and you have nothing to offer, there’s no way you can know till you open yourself up. When you open up that is when opportunities will come to you. Don’t hide yourself or build the walls of segregation around. Breaking down those walls will help one to overcome recession. Tell yourself I am going to reach out; I am not going to riot or do unimaginable things because there is recession. When we start to realise that we have more in common, that is the only time we would start healing, and start reaching out to help one another. Only then will opportunities come to you because challenges help us show our true self. You can never know what you have to offer or what your neighbour has to offer if you don’t reach out.
    How do you select your artists at LABAF? Because the way I see it, it is almost as if you recycled some of them…
    Usually, apart for the steady LABAF family members, I am expected to bring in other artists within the year that have done very intense work that would match our theme. So, we sent out invitations and made our pick. Some years, we may feature eight or nine artists. But not last year. We featured the steady five. Because the schedule was pretty tight for me – I had travelled for a long time. So I went for people that not only have what it takes but those I know could deliver because of the short notice. I have worked with those guys for a long time. I’ve been with Jelili for 17 years at LABAF. Aderemi joined us so many years ago.

  • Cultural heritage: Panacea for Nigeria’s tourism growth

    Nigeria is endowed with a rich cultural heritage, which if properly harnessed, could translate into rewarding and dependable socio-economic gains. However, such gains may not be actualised without a properly coordinated inter-sectoral collaboration, most especially from the private sector, and a coordinated concentration from the central administration.
    Investing in tourism development is a necessity that arises from Nigeria’s over dependence on crude oil exportation, which has over the years conditioned its short falls into indices of corruption, poverty, squander and other related economic and social ills.
    Tourism and promotion of national cultural heritage, therefore, present as ready alternatives to the oil dependent economy. The duo stand the chance to put Nigeria on the global map of rapid socio-economic growth and development, while enabling it achieve its vision as one of the future’s largest economies. This could be fulfilled through the bigger scope of the present administration’s working agenda, which is beginning to unfold.
    Oftentimes, projected earnings from tourism tend to be given more publicity and concentration than the core product, which is the conservation and promotion of National cultural heritage. The latter requires developing and preserving cultural heritage products which possess the capacity to impact positively on our national wealth.
    All over the world, countries that emerged tourism-friendly and top destinations have considered promotion and conservation of their national heritage as an upstream investment into tourism to enable consumers who are ready and prepared, pay high prices to see, study, learn and enjoy indigenous culture, festivals, cuisines, architecture and related by-products different from their own.
    These set of tourists get into a preferred destination and put their resources into the purchase of cultural products like artworks and crafts. They show tremendous interest in how these products are made and how they have become certain marks of national identities for the people that produce them.
    Nigeria has so much to offer in this regard and remains a fallow land to be explored. Products abound as a result of our cultural diversity which is second to none on the continent. It is expected that palaces, galleries, traditional shrines, traditional architecture, cultural products, indigenous herbs and our countless festivals should form the core of our country’s offerings to the world. The areas of demand, on the other hand, should focus on developing service-oriented facilities, such as roads, transportation, hotels, parks and gardens, electricity, health facilities and reliable security and among others, to establish a nexus between tourism and sustained economic development.
    It is high time that our government took a good look at tourism, its products and the capacity it provides to get us unto level grounds. Many countries have treaded this path with tremendous successes recorded. Ours cannot be different. And if this administration pays key attention to the sector, its efforts would not be in vain.

    •Yekeen is with the National Museum, Ile-Ife, Osun State.

  • Enabling environment panacea for economic growth, says Minister

    Enabling environment panacea for economic growth, says Minister

    •LCCI gets commendation 

    A conducive environment is panacea to economic growth, the Minister of State, Industry, Trade & Investment, Mrs. Aisha Abubakar, has said.

    She said the government had acknowledged the role of local and foreign investments in lifting the economy out of the doldrums, and is relentlessly channelling efforts to ensure ease of doing business.

    The Minister spoke at the Lagos Chamber of Commerce and Industry (LCCI) Investment Conference with the theme “Positioning the Nigeria economy for diversification and sustainable growth.”

    She said the government has embarked on review of limiting factors, including incentives and tariff that have stunted the growth of Small and Medium scale Enterprises (SMEs).

    Mrs. Abubakar added that the government was closing infrastructural gaps and creating free trade zones to make the operating environment friendly.

    She said: “Under the current administration, it behoves on us to come together and articulate pragmatic strategies that will arrest the obstacles that hinder developmental efforts.  The administration has continued with the Nigerian Industrial Revolution Plan (NIRP) as a strategy to drive the economy.

    “The President has also approved the establishment of a Presidential council on the ease of doing business. We have put plans in motion to attract domestic and foreign investments by reviewing incentives and supporting Micro, Small and Medium Enterprises (MSMEs).”

    Mrs. Abubakar said a review of the document has been concluded by the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and other agencies, including the National Agency for Food, Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON) and Corporate Affairs Commission (CAC), to ensure a holistic framework that would addressing the challenges of MSMEs.

    She urged private sector players on the need for periodical engagements to attune themselves to initiatives on ease of doing business. She said contributions from the private sector are not only necessary, but imperative to assist the government to create an enabling environment to promote sustainable economic development.

    Mrs. Abubakar spoke of the government’s readiness to bridge the infrastructure gap to attract more investments, adding that there was a need for continuous dialogue between the government and private sector to ensure seamless collaboration.

    Speaking on “Policy Environment for Private Sector-led Market,” Director, International & Bilateral Relations, European Union (EU), Mr. John Clarke, advised the country to key into the Economic Partnership Agreement (EPA) to successfully drive the diversification campaign.

    He argued that the adoption of a pact like the Chinese model may streamline local production for exports to certain areas.

    “What we see in the Chinese model is the conversion of large expanse of land into monoculture for exporting commodities to China because China cannot feed its population. So the export model is not always good for the host country because it doesn’t create much employment,” he said.

    He said the model moves agriculture away from mixed farming, which has proven unsustainable in the long term.

    “It is recommended that Nigeria should not adopt it. We can learn from the Indonesia model what to do and what not to do. But it has been adjudged unsuccessful because their production for export is at a massive human and environmental cost,” he said

    Clarke pointed out that if Nigeria wished to develop the formal sector for export, there is a market in Europe that would ensure sustainable production.

    “If there is no EPA, Nigeria’s export to Europe will face World Trade Organisation (WTO) tariff, which is high. This will result to an overwhelming comparative advantage over Nigeria,” he said.

    Lagos State Governor Akinwunmi Ambode urged the international committee on the need for partnership in the non oil sector.

    He said:“It is obvious the private sector is a critical partner in the implementation of diversification strategies and policy framework for sustainable economic growth. Therefore, I urge participants to take out time to explore opportunities for economic benefits in the agricultural value chain, green energy, ICT and tourism.”

    He praised LCCI for the successful hosting of the just-ended Lagos International Trade fair, saying the fair has promoted trade and investment in the state.

    Ambode said activities, including the International Investment Conference, which charted a course to check trade volatility between Nigeria and the international community; Lagos Creative Industry exhibition, Business to Business fair raised the standards of the fair.

    Ambode said efforts were on to address challenges facing  businesses, particularly creatiing a conducive environment. He pledged to ensure improved facilities for effective coordination of furure fairs.

    Represented by the Deputy Governor, Alhaja Idiat Adebule, said:

    “Although LCCI has carved a niche in the organisation of high quality trade fairs and exhibitions, I am not unaware that the chamber is being inhibited by lack of purpose-built world-standard exhibition facilities that would engender the staging of a more-befitting international trade fair.

    “Our government is already looking in that direction and making concerted efforts towards delivering a standard centre in the state. We shall continue to place priority on key infrastructure and ensure the state is secure, functional and productive through a highly motivated and vibrant private sector.”

    Earlier, LCCI President Mrs. Nike Akande urged the government on the need for an industrial revolution to drive the influx of foreign investments. She harped on the need for strong institutions and strict adherence to corporate governance.

    She said despite the recession, the 30th edition of the trade fair attracted 550 international and local firms.

    “We recorded 427 local exhibitors, three state governments – Lagos, Kaduna and Kwara – and 120 foreign countries, including China Egypt, Japan, India, European Union, Indonesia, Ghana and Pakistan,”she said.

    Mrs. Akande said diversification  should emphasise value-addition because of its potential for increased revenue.

    “The chamber is drawing attention to the need to reposition and diversify the economy. In addition, it wishes to address value addition in the non oil sector with a view to achieving industrialisation.

    “This will enable the government to earn more foreign exchange from commodities and processing. We are moving from over-dependence on oil to agriculture, solid minerals, renewable energy and others,” she said.

    Reiterating the need to support private sector players, Mrs. Akande said: “We would always advocate for a conducive business environment, where private business can thrive. The private sector has a bigger capacity to create jobs and lift people out of poverty.”

    The Chairman, LCCI Trade Promotion and Investment Board, Mr. Sola Oyetayo, thanked participants, institutions and bodies who partnered with the chamber to ensure a hitch-free fair.

    He said: “Overall, we have received commendations that, despite all odds, this year has been adjudged as one of the best in recent years.

    ‘’We have done our best to deliver value to our customers within the limits of prevailing limitations. We assure you all that we will continue to ensure improvement in subsequent fairs.”

  • PPP as panacea for Nigeria’s airport debacle

    That the Federal Government is insisting on concessioning the four biggest airports in the country to private investors is a serious indictment of the managers of the facilities, who could not manage them to profitability. Discerning minds will agree that airports across the country are wasting away under the watch of Federal Airports Authority of Nigeria (FAAN), some of whose officials are protesting the government’s new thinking because their taps of cheap and underserved income will soon dry up.

    Despite the advantages of a huge population and massive resources, Nigerian airports are known to be among the worst in Africa. In fact, a survey conducted late 2014 by The Guide To Sleeping In Airports, the website documenting information on airports and the people who sleep in them, which is still relevant till date, rated three Nigerian airports among the worst in Africa. Ironically, these three airports are regarded as the best in Nigeria. And these three are among the four up for grabs by concessionaires any moment from now.

    They included the supposed flagship airport, Murtala Muhammed International Airport (MMIA), Lagos, Nnamdi Azikwe International Airport, Abuja, and the Port Harcourt International Airport, which were rated as the 10th, seventh and sixth worst respectively. Although FAAN shouted blue murder when the result of the survey was released, many Nigerians who regularly pass through the three airports and others in the country were not surprised at the result of the survey. Good enough, these and Aminu Kano International Airport, Kano, have been pencilled down for concessioning by the Federal Government.

    Sadly, the three international airports were in the group of others rated as the worst airports in Africa. They include the Khartoum International Airport, Sudan (first); Kinshasa N’djili International Airport, Democratic Republic of the Congo (second); Tripoli International Airport, Libya (third), all in war-torn countries; Dar es Salaam Julius Nyerere International Airport, Tanzania (fourth); Luanda Quatro de Fevereiro International Airport, Angola (fifth); N’Djamena International Airport, Chad (eighth) another war-torn country, and Accra Kotoka International Airport, Ghana (ninth).

    Unfortunately, this rating was coming after a past aviation minister, Princess Stella Oduah, had wasted billions of naira on the airports in what she called Airport Remodelling Project.

    The result of this survey clearly showed how all the past and present efforts of FAAN have failed to achieve the desired result at the airports, while the agency consistently and shamelessly defends the rot in the facilities, and at the same time frustrate all its concessionaires who would have assisted it in closing the wide aviation infrastructure gap. This is the more reason why the present administration of President Muhammadu Buhari said it would privatise the four major airports for optimum delivery and profitability. Such policy change, which is long overdue, should be expected, if we must be seen as a serious people.

    Interestingly, some aviation workers unions are kicking against the concessioning in a clear demonstration of their inability to see beyond their noses. In fact, their misinformation that the government wants to sell the airports to private investors speaks volume of either their level of ignorance or deliberate mischief. Surprisingly, past attempts at having a successful PPP, especially in the aviation sector in Nigeria, have been frustrated by these same government officials who take delight in using the airports as drain pipes to siphon funds each time they carry out one renovation or the other on the facilities. Political appointees and inefficient government agencies have also continued to battle private investors who borrowed money at high interest rates to assist the government in infrastructure provision. The ripple effect of this is that many potential investors have been scared away because of the sad experiences of those who have ventured to help.

    However, why should the government leave the country’s airports that are frequently in darkness in the hands of incompetent managers anyway? Why should the government allow its agents to run airports where touts harass passengers and other visitors without restraint? Why should incompetent managers run airports where aircraft cannot take off and land in the night due to lack of facilities?

    The answer to these questions is simple: give the airports to tested and experienced hands to manage them and shame the leeches who have been feeding fat on the facilities for years. In many parts of the world, the governments have consistently used the Public-Private Partnership (PPP) model to provide infrastructure for their citizens, and such has always worked perfectly well. Even in Nigeria, this has been demonstrated through the first and only successful PPP project – the Murtala Muhammed Airport Terminal Two (MMA2) – executed and operated by Bi-Courtney Aviation Services Limited (BASL). Obviously, MMA2 is the only airport that is working in the country today because it is in private hands. It is therefore not a coincidence when the immediate past Aviation Minister, Chief Osita Chidoka, tongue-lashed the government agency managing airports in the country, saying of all the airports assessed by the Ministry of Aviation, MMA2 was the only one that passed the assessment test in terms of facility maintenance and others. Chidoka seemed to be saying that if those airports being managed by FAAN had half of the commitment and attention required to keep an airport alive from the managers, perhaps the result of that survey by The Guide To Sleeping In Airports would have been different.

    Although some experts have said that the airports to be privatised under this dispensation should be divided into clusters for effective privatisation, the bottom line is that experienced hands in the private sector are needed to lift the airports from the decay they have slipped into.

    Clearly, there are certain benefits of PPP, as have been espoused by the managers of MMA2, which is the only airport terminal that actually meets international standards in all departments of its operations. No wonder, the government of Sierra Leone sent a team to understudy the operations of the terminal in 2014.

    Besides, while PPP intervention in the country’s aviation sector will fill its huge infrastructural gap, the model will also make it possible for local investors to inject funds into the sector, thereby creating more jobs and reducing the burden and size of the public service. It is also noteworthy to say here that any facility under PPP is always more efficiently managed and actually costs the government little or nothing.

    For optimal performance, we need to strengthen the Infrastructure Concession Regulatory Commission (Establishment, etc) Act 2005 and the Public Procurement Act 2007, especially in the area of conflict resolution, as a way of encouraging private investors to stake their money and reputation in the aviation sector, instead of their vilification by misinformed and selfish government officials.

    Countries in Europe, especially Britain, which pioneered the idea of PPP in 1992 with its Private Finance Initiative (PFI), and America have since embraced PPP, and they are better for it today. Many developing countries are also embracing the model because of its numerous advantages. In fact, the Jamaican government published the initial PPP Policy documents, popularly called PPP3, in 2012, which has led to the government divesting its large interests from the Sangster International Airport. In process is the Kingston Container Terminal and the Norman Manley International Airport, both in that country.

    Besides, a Nigerian, Adebayo Ogunlesi, who owns Global Infrastructure Partners (GIP), a private-equity firm, operates the London Gatwick Airport today, and the British Government has given him full cooperation to operate freely. GIP, which manages about $18.7 billion, led the acquisition of Gatwick Airport Limited and had a stake in Australia’s Port of Brisbane.

    In India, despite opposition from the country’s Airports Authority Employees Union (AAEU), the government is going ahead with the privatisation of four more airports, including Chennai, Kolkata, Jaipur and Ahmedabad.

    So, Nigerians, especially the recalcitrant aviation workers, should embrace what is spreading like wildfire the world over by supporting the Buhari administration to privatise the four proposed, almost derelict airports as a way of making them more efficient and earn more money to the government. This is the most reasonable thing to do now that the price of oil, our main revenue earner, is at its all-time low.

     

    • George, sent in this piece from Lagos.