CBN Reintroduces RDAS To Tackle Decades Of Investment Apathy Crippling

Forex Market Volatility page 15 Nigeria’s Downstream Oil Industry page 19

Monday 19 - Sunday 25 August 2024
N300

www.nationaleconomy.com No. 708

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CURRENCY BUYING SELLING INFLATION RATE 2022 2023 COMMODITY PRICES

US DOLLAR 1592.136 1593.136 SEPT 20.77 26.72 BRENT $81.118
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CBN EXCHANGE AT 16/08/24 GAS $2.2571

PoS Fraud Rises By 31%

Amid Dwindling ATM Usage
Money lost to fraud hits N376.59m in Q1 2024
CAC extends registration deadline for operators to September 5

Credit: tellimer.com

BY TAIWO BAKARE (POS) fraud cases during This rise in fraud comes as that the number of POS cent of the total 11,472
the first quarter of 2024, ac- ATM usage has sharply de- fraud cases jumped from fraud cases reported for

N igeria has seen

a striking 31.12
per cent in-
crease in Point-of-Sale
cording to the latest Fraud
and Forgeries Report by
the Financial Institutions
Training Centre (FITC).
creased, indicating a signif-
icant shift in the country’s
payment fraud landscape.
The FITC report revealed
2,683 in the fourth quarter
of 2023 to 3,518 in the first
quarter of 2024. POS fraud
now represents 30.67 per
the quarter. Despite the
uptick in fraud cases,
Continued on page 4

The Imperative For An Indigenous Credit Rating Agency In Africa PAGE 21

2 MONDAY 19 - SUNDAY 25 AUGUST 2024
MONDAY 19 - SUNDAY 25 AUGUST 2024
3

E D I TO R I A L
OUR MANDATE
To be the unmatched medium in presenting Nigeria’s
economic news and data to the public and private sectors
in an authoritative, factual and analytical manner.

The Economic Imperative On

World Humanitarian Day
forms are necessary, they must be bal-

O
n World Humanitarian Day, as
the global community reflects anced with social protection measures
on the importance of humani- that ensure that the benefits of eco-
tarian efforts, it is crucial to turn our nomic growth reach those who need
attention to Nigeria—a nation with it most. The removal of fuel subsidies,
EDITOR: Kingsley Alu
immense potential yet beleaguered for instance, though fiscally prudent,
by economic challenges that have has led to a sharp increase in living
far-reaching humanitarian implica-
NATIONAL ECONOMY MEDIA LTD costs for ordinary Nigerians. Without
tions. In a country where millions face FOUNDING CHAIRMAN adequate social safety nets, such pol-
poverty, insecurity, and a lack of basic Sam Nda-Isaiah (1962 – 2020) icies push more people into poverty,
services, the economic situation is not thereby worsening the humanitarian
just an issue of national concern but a CHAIRMAN: Zainab Nda-Isaiah situation.
pressing humanitarian crisis. World Humanitarian Day serves
EDITOR-IN-CHIEF: Azu Ishiekwene as a reminder that economic stabili-
Africa’s most populous nation and
largest economy is endowed with vast DIRECTORS: Lere Baale ty and growth should not be pursued
natural resources and a youthful pop- Mike Okpere at the expense of human well-being.
ulation. Yet, despite these advantag- Muazu Elazeh Economic policies must be inclusive,
es, the country struggles with severe Harry Odey ensuring that all citizens have access
economic disparities, high unemploy- to the resources and opportunities
ment rates, and persistent inflation. they need to live with dignity. This re-
These economic challenges are not BOARD OF ECONOMISTS quires a shift in focus towards sustain-
just abstract statistics; they translate Prof. Lere Baale able development, job creation, and
Prof. Murtala Sabo Sagagi investment in critical sectors such as
into daily hardships for millions of
Dr. Emeka Okengwu
Nigerians. The struggle for survival, agriculture, healthcare, and education.
Dr. Bongo Adi
access to basic healthcare, education, Dr. Bala Liman
It also demands greater accountability
and the ability to feed one’s family are Dr. Ezekiel Gomos and transparency in governance to en-
increasingly out of reach for many, Abdulrauf Aliyu sure that the country’s wealth is used
turning economic issues into human- Ahmed Musa Husaini to benefit the entire population, not
itarian emergencies. Dr. Chukwunenye Kocha just a privileged few.
The link between the economy and Akin Fatunke As Nigeria marks World Humani-
humanitarian needs is starkly evident Dr. Umma A. Abbas tarian Day, there is a clear imperative
in Nigeria’s growing poverty levels. for the government, private sector,
According to recent reports, over 40 ADVERT and civil society to collaborate on cre-
per cent of the population lives below ABUJA: 08036886158 ating a more equitable economy. This
the poverty line, with many more hov- LAGOS: 08097533608 collaboration should prioritise the hu-
ering just above it. The impact of this manitarian needs of the population,
widespread poverty is devastating: FOR GOD, COUNTRY AND ENTERPRISE ensuring that economic growth trans-
malnutrition is rampant, healthcare is lates into tangible improvements in
inaccessible for many, and children are several regions of the country. The to provide jobs, opportunities, and a the lives of all Nigerians. By address-
being pulled out of school as families ongoing conflicts, especially in the sense of stability fuels these conflicts, ing the root causes of poverty and in-
can no longer afford fees or supplies. Northeast with Boko Haram and in creating a vicious cycle where eco- security, Nigeria can begin to trans-
In such a context, the humanitarian other regions plagued by banditry and nomic deprivation leads to violence, form its economy into one that serves
mission is not just about responding communal violence, have displaced which in turn deepens the humanitar- its people, laying the foundation for a
to immediate crises but about address- millions of Nigerians. These inter- ian crisis. future where humanitarian crises are
ing the systemic economic issues that nally displaced persons (IDPs) live in Moreover, the economic policies no longer driven by economic mis-
give rise to these conditions. dire conditions, often without access of successive Nigerian governments management but are instead prevent-
The humanitarian situation is fur- to adequate food, water, shelter, or have often failed to prioritise the most ed by sound, inclusive, and compas-
ther exacerbated by insecurity across medical care. The economy’s failure vulnerable. While macroeconomic re- sionate policies.
4 MONDAY 19 - SUNDAY 25 AUGUST 2024

LEAD-IN
increase. However, the vol- rate soaring from N250 per

PoS Fraud Rises By 31% ume of PoS transactions

declined by 19.03 per cent,
from 387.81 million in Q1
2023 to 314 million in Q1
dollar in 2016 to N1,500 in
recent months.
Olaoluwa Awoojodu, CEO
of E-Settlement Limited,

Amid Dwindling ATM Usage 2024.

In contrast, ATM usage
has dropped significantly,
with transactions falling
highlighted the shift to-
wards digital payments,
stating, “The rapid adoption
of digital payment methods
from 70 per cent to 40 per is influencing consumer be-
FROM COVER cent in 2023. This decline haviour, leading to a shift
is attributed to a shortage away from traditional ATMs
the financial impact has di- of cash, high maintenance in favour of more conve-
minished. The total amount costs, and the growing adop- nient digital alternatives.”
involved in POS fraud de- tion of alternative banking The rise in PoS fraud comes
creased by 37.74 per cent, methods such as mobile amidst a broader context
from N604.91 million in Q4 apps and USSD. The num- of regulatory changes. The
2023 to N376.59 million in ber of ATMs in Nigeria has Corporate Affairs Commis-
Q1 2024. Additionally, the remained relatively stable, sion (CAC) recently extend-
amount lost to POS fraud with 22,600 ATMs reported ed the deadline for fintech
fell dramatically by 68.34 as of December 2023, fol- operators, including major
per cent, from N14.62 mil- lowing a peak of 21,000 in players like OPay, Palmpay,
lion to N4.63 million per 2019. and Moniepoint, to com-
quarter. Tope Dare, executive di- plete their business regis-
Fraud expert Adewale rector of Inlaks, Nigeria’s trations. Originally set for
Johnson expressed concern largest ATM operator, not- July 7, 2024, the deadline
over the growing trend, ed, “Nigeria requires about has been extended by 60
stating, “The rise in fraud 60,000 ATMs to meet its days to September 5, 2024.
is alarming. While we see growing population and The CAC explained that this
better detection and pre- banking needs. Currently, extension aims to safeguard
vention, the increasing we face a deficit of about fintech businesses and their
cases indicate fraudsters 37,400 ATMs.” customers while strength-
are constantly finding new The ATM sector is fac- ening the economy.
ways to exploit the system.” ing challenges due to high The Association of Mobile
Johnson emphasised that, Cardoso maintenance costs, foreign Money and Bank Agents
despite improvements in The rise in PoS fraud is at- PoS terminals increased by exchange fluctuations, and in Nigeria (AMMBAN) has
fraud detection, the surge tributed to the widespread 218,475 in Q1 2023, from inflation. The cost of main- criticised the registration
in cases underscores the ne- adoption of PoS terminals as 2,318,947 to 2,537,422. By taining ATMs has been sig- mandate, describing it as a
cessity for continued vigi- Nigeria transitions towards March 2024, this number nificantly impacted by the move to impose additional
lance and enhanced security a more cashless economy. had surged to 3,730,441, devaluation of the naira, taxes on Nigerians to gener-
measures. The number of registered reflecting a 47.02 per cent with the official exchange ate government revenue.

FMCG Transaction Volume In Nigeria Drops 17.4% Amid Inflation Surge

BY GLORIA IMAFIDON experiencing better sales shifting consumer behav-
performance. Manufac- iors and make informed

T he Fast-Moving
Consumer Goods
(FMCG) market in
Nigeria has experienced
a 17.4 per cent decline in
turers with growing inno-
vation sales were found to
be 1.8 times more likely
to achieve overall sales
growth. In particular,
decisions on pricing, brand
extension, and distribution.
She advised manufacturers
to connect with consum-
ers through innovative ap-
transaction volume for home care and personal proaches, such as offering
2024, according to a re- care manufacturers saw varying product sizes.
cent report by NielsenIQ. sales boosted by 4.2 times Nigeria is grappling with
This downturn reflects the and 2.9 times, respective- its worst cost-of-living
ongoing economic strug- ly. crisis in decades, with in-
gles Nigerians face due to The report challenges flation reaching 34.19 per
soaring inflation and ris- the notion that innova- cent—the highest in 28
ing costs. tion success rates are low. years—and food inflation
The NielsenIQ report, It found that 52 per cent exceeding 40 per cent as of
which assesses market of innovations led to in- June 2024. This inflation
performance and consum- creased sales in the sec- spike follows the remov-
er behavior up to March ond year, debunking tradi- al of the petrol subsidy in
2024, indicates that the tional views on innovation May 2023 and a more than
decline follows a 4 per efficacy in the FMCG sec- 100 per cent devaluation of
cent decrease recorded tor. the naira since June 2023
in 2023. The report high- erated to 24.8 per cent in The report also reveals Head of Innovation In- by the Central Bank of Ni-
lights the severe impact of 2024. This suggests that that 81 per cent of Nige- sights (BASES), East & geria.
reduced purchasing pow- while transaction volumes rian consumers feel worse West Africa at NielsenIQ, In response, the federal
er on consumer spending are down, consumers are off this year compared to Bayonle Oseni said, “In- government has launched
amid inflationary pres- spending more on essen- last, citing rising costs for vesting in innovation and several social interven-
sures. tial goods, driving up the fuel and food as primary research and development tion programs, including
As of June 2024, Ni- market’s overall value. drivers of the cost-of-liv- can unlock significant cash transfers, low-interest
geria’s inflation rate has Associate director of ing crisis. The economic growth opportunities. Un- loans for businesses, and
surged to 34.2 per cent, West Africa at NielsenIQ, slowdown further exacer- derstanding innovation grants for MSMEs. Addi-
forcing consumers to Joyce Nwachukwu com- bates these challenges. vitality across categories tionally, the government
spend more on fewer mented, “The increase in NielsenIQ’s analysis allows companies to allo- has approved a significant
goods. Despite these chal- market value despite low- across several FMCG cate resources more effec- increase in the minimum
lenging conditions, the re- er transaction volumes in- sectors—home care, per- tively.” wage. However, many
port reveals a paradoxical dicates that consumers are sonal care, confectionery Managing director of Nigerians remain dissatis-
growth in the value of the buying fewer items but & snacks, non-alcoholic NielsenIQ (East and West fied, with recent “Hunger
FMCG market, which in- spending more on essen- beverages, and food— Africa), Faith Wanderi, Protests” highlighting the
creased by 21.6 per cent tials, driving up the over- shows that companies fo- emphasised the need for continued struggles faced
in 2023 and further accel- all market value.” cusing on innovation are businesses to adapt to by the population.
MONDAY 19 - SUNDAY 25 AUGUST 2024
5
LEAD-IN
like cobalt and lithium. These

FG Targets $900m In Auto resources make Nigeria a vi-

able location for expanding
its automotive manufacturing
sector.

Parts Revenue The National Automotive

Design and Development
Council (NADDC) is taking
significant steps to harness this
BY ABIODUN SIVOWAKU Agwu said. He pointed out
that while assembling entire potential. Joseph Osanipin, the
Director General of NADDC,

T he Nigerian government
is set to transform the
auto spare parts sector
into a key driver of economic
growth, with projections in-
vehicles is complex, manu-
facturing spare parts is less
so, suggesting that such a shift
could create numerous job op-
revealed plans to focus on lo-
cal part manufacturing and
highlighted ongoing discus-
sions with stakeholders.
portunities.
dicating potential annual rev- The president of the Ladipo He said NADDC is facili-
enues of between $500 mil- Central Executive Committee tating the establishment of the
lion and $900 million. This of the Auto Dealers Associa- Nnewi Auto Industrial Park in
ambitious initiative is part of tion, Mr. Africanus Ogudoro, Anambra State, funded by the
a broader strategy to enhance echoed Agwu’s sentiment, African Export-Import Bank
local manufacturing and re- highlighting that local pro- (Afreximbank). This park
duce reliance on imports. duction could reduce import aims to centralise the manu-
Currently, Nigeria’s auto- dependence, save foreign ex- facturing and assembly of au-
motive industry is heavily change, and bolster the do- tomotive components, there-
dependent on imported spare mestic automotive industry. by reducing costs, improving
parts, with local manufactur- A board member of the Ni- price competitiveness, and
Osanipin ensuring product standardisa-
ing remaining minimal. This geria Automobile Manufac-
contrasts with Africa’s auto- African country is home to of BKG Exhibitions, empha- turers Association (NAMA), tion.
motive landscape, where Tu- around 280 auto industry sised the need for Nigeria to Benedeth Ejindu, noted the Additionally, NADDC is
nisia, for example, is making firms and is on track to dou- follow suit by initiating local abundant resources available working on completing a com-
significant strides. Tunisia is ble its exports to $4.7 billion manufacturing of auto parts. in Nigeria for automotive pro- ponent test center in Enugu,
the continent’s second-largest by 2027, aiming to create “To become a leading auto duction, including leather, tex- which will ensure that prod-
exporter of auto parts, trail- 150,000 new jobs. hub in Africa, we must start tiles, rubber, iron, steel, and ucts meet international stan-
ing only Morocco. The North Ifeanyichukwu Agwu, CEO producing auto parts locally,” materials for electric vehicles dards before mass production.

Manufacturers Welcome Tax Incentive Initiative, Anticipate Reduced Production Costs

BY ADEKUNLE MUNIR mendations from the Presidential sure businesses access available
Committee on Fiscal Policy and incentives. He mentioned that

T he Manufacturers Associa-
tion of Nigeria (MAN) has
expressed strong support
for the recent tax incentive ini-
tiative, highlighting its potential
Tax Reforms.
Ms. Elizabeth Olaghere from
KPMG, Head of Tax, Regu-
latory, and People Services at
manufacturers, including those in
pharmaceuticals, baby products,
veterinary medicine, agriculture,
and gas, are already benefiting
KPMG West Africa, encouraged from various waivers and incen-
to lower production costs and manufacturers to fully leverage tives.
stimulate innovation within the the tax incentives and waivers Osanekwu pointed out that
sector. offered by the Federal Govern- there are exemptions in some
During a webinar organised ment as part of its ease of doing Value Added Tax areas, an export
by MAN in collaboration with business initiative. Olaghere ad- expansion grant, and a 35 per cent
KPMG, themed: “Catalysing vocated for policies that stimu- investment allowance for specific
Growth in a Turbulent Econom- late economic growth, particu- periods. The government is also
ic Environment: The Role of larly in the manufacturing sector, working on executive orders and
Tax Incentives,” MAN’s direc- and emphasized the importance interventions to bolster the real
tor-general, Mr. Segun Ajayi- of strengthening the Pioneer Sta- sector’s contribution to economic
Kadir, praised the initiative. He tus Initiative (PSI), an income growth through value addition.
emphasised that such incentives tax relief program in Nigeria. Over the past year, the Nige-
should be applied uniformly She categorised tax incentives rian manufacturing sector has
across the manufacturing sector Ajayi-Kadir into profit-based and cost-based faced increased production costs
and implemented with transpar- types, noting their significance in due to recent federal government
ency and sustainability. cies. boost productivity.” attracting new investments and reforms, leading to reduced profit
Ajayi-Kadir addressed the “Tax incentives are crucial in He urged the government to expanding existing ones. Olagh- margins and, in some cases, loss-
sector’s challenges, which are reducing production costs, driv- lessen the tax burden on busi- ere urged stakeholders to contrib- es. In response, the government
aggravated by ongoing foreign ing investment, encouraging in- nesses, particularly during eco- ute feedback to enhance the PSI. has approved tax reliefs, includ-
exchange volatility and high novation, and fostering econom- nomic uncertainty, to support Deputy director of Tax Policy ing the removal of withholding
electricity tariffs. He criticised ic growth,” Ajayi-Kadir said. manufacturers and other eco- Advisory at the Federal Inland tax for farmers and manufactur-
the numerous and elevated tax “They enable the government to nomic actors. Ajayi-Kadir also Revenue Service (FIRS), Mr. ers and the suspension of some
rates imposed by various levels incentivize businesses to invest called on manufacturers to back Matthew Osanekwu, highlighted import duties for the health and
of government and their agen- in vital sectors, create jobs, and the implementation of recom- the government’s efforts to en- pharmaceutical sectors.

Floods Destroy 16,000 Hectares Of Farmland Across 27 States

BY CALEB OWAISE its official X handle, NEMA NEMA Director General cy reported significant damage rainfall.
provided a comprehensive up- Zubaida Umar emphasized the from the floods, including the The floods are likely to aggra-
date on the floods’ impact. The
T he National Emergen-
cy Management Agency
(NEMA) has reported that
recent floods have devastated
agency has begun deploying
relief materials to affected ar-
eas, working in tandem with
importance of relocating com-
munities at risk to higher ground
before the peak of the rainy sea-
son. She urged stakeholders to
destruction of over 2,000 hect-
ares of farmlands across ten
local government areas. Dr.
Haruna Mariga, the Executive
vate Nigeria’s ongoing food in-
security and cost of living crisis,
compounding the effects of the
2022 floods, which previously
approximately 16,488 hectares state governments to provide be prepared for immediate flood Secretary of the state emergen- caused an estimated $9 billion in
of farmlands across 27 states in necessary support. NEMA has response and reassured farmers cy agency, confirmed 16 fatali- damages. The high food prices
Nigeria. The floods have also also launched public awareness that the temporary dry season ties, the displacement of 3,936 and production challenges from
caused extensive damage to campaigns focused on waste would improve according to individuals, and the inundation last year’s floods are expected
over 32,000 homes and affected management and drainage seasonal climate forecasts. of 2,744 hectares of farmlands. to persist as the country faces
around 227,000 individuals. maintenance to mitigate future In a related development, The situation is expected to additional disruptions from the
In a statement released on flooding risks. Jigawa State’s emergency agen- worsen with anticipated heavy current floods.
6 MONDAY 19 - SUNDAY 25 AUGUST 2024

NEWS
QUICK NEWS
Experts To Train 160
Aviation Planners, Flight
Dispatchers, Others
BY YUSUF BABALOLA

A former president of the Na-

tional Association of Aircraft
Pilots and Engineers (NAAPE),
Issac Balami, on Tuesday, said
he will team up with his friends
to empower 160 qualified Nige-
rians in different aviation train-
ings through the Isaac Balami
Foundation (IBF).
Belami stated this against the
backdrop of the celebration of
his 40th birthday.
In a press statement made
available to NATIONAL
ECONOMY, Balami stated that,
he will train 160 youths from
the six geo political zones in the
country.
According to him, his foun-
dation will provide 100 percent L-R: Group chief operating officer, Halogen Group, Lanre Showunmi ; director, Risk Advisory & Consulting, Halogen Group,Dr. Adebowale Adeagbo; executive director, Fulfilment, Halogen Group,
Bosun Sosanya ; group head, Human Capital, Halogen Group, Adebola David, and head, Sales & Business Development, Halogen Group, Kingsley Egonmwam, during Enterprise Security Risk
tuition free scholarship with Workshop organised by Halogen Group in Lagos , recently PHOTO BY KOLAWOLE ALIU
certificates to successful candi-
dates. losses rather than gains
He said, “40 Aircraft Man-
ufacturer’s Course on Boeing,
Airbus, Embraer etc/Basic
Windfall Tax To Truncate Bank Services during this period. We
urge the government to
provide clear guidelines
Technician course; 40 Cabin
Crew; 40 Flight Dispatchers;
40 Aircraft Planners. Qualified
As Directors Advocate Review on this matter to avoid
further uncertainty.”
Calling for a consolida-
Nigerians who are indigenes BY BUKOLA ARO-LAMBO ing the windfall tax, “we Open dialogue and nego- tion of all taxes and levies
of the six geopolitical zones of suggest that a 70 per cent tiation are essential to en- imposed on banks, he said,

T
the country are encouraged to he bank directors tax rate is excessively bur- sure that policies are both “It would also be critical to
apply.” under the auspices densome and ill-timed, equitable and effective. reassure the banking com-
Meanwhile, Balami has urged of the Bank Direc- particularly considering “A primary concern lies munity that future levies
the youths to shelve the planned tors Association of Nige- the ongoing bank recapi- in the ambiguities of the and taxes will not be arbi-
birthday party scheduled for him ria (BDAN) has said, the talisation efforts. Such a language in this amend- trarily imposed.
Balami disclosed their plans to or- 79 per cent windfall tax high levy has the potential ment which leave critical “In view of these con-
ganise a huge birthday party for him, levied on banks is inimical to stifle growth and inno- questions unanswered. cerns, we respectfully
as a former president of the National to growth of the sector as vation within the banking Such as, whether the wind- urge the National Assem-
Association of Aircraft Pilots and and would affect quality of sector; ultimately affecting fall tax will be implement- bly to revisit this amend-
Engineers saying, with the hunger services rendered even as the quality of services we ed as a Total Tax charge on ment and engage in con-
and suffering in Nigeria, it was bet- they seek clarifications on provide to our customers banks, incorporating other structive discussions
ter to plan for the future of the coun- the ambiguities surround- and the broader economy.” taxes already levied such with stakeholders in the
try’s youth in his own small way. ing its implementation. Stating that banks in Ni- as Company Income tax, banking sector. By collab-
He went further to state that he Chairman of BDAN, geria are one of the most Tertiary Education Tax, orating, we can develop a
had decided to reflect deeply and Mustafa Chike-Obi, in a heavily-taxed across the National Information De- framework that effective-
then team up with those who were statement released after world, he said, “We believe velopment Levy (NITDL), ly balances the need for
planning to throw him a birthday the meeting of its mem- that it is vital for all stake- etc. revenue generation with
bash and that they will use the bers on the new levy, holders in the banking sec- “We also request clarifi- the imperative of foster-
moment to advance some 40 stated that, whilst banks tor to have been consulted cation on what constitutes ing a thriving banking en-
precious lives in four different acknowledge and respect prior to the enactment of “FX transactions” to be vironment that supports
aviation fields making them 160 the intentions of the gov- such significant changes taxed and the treatment sustainable economic
altogether. ernment in implement- in the Finance Act 2023. of banks that may incur growth.”

system is expected resources. They also

NERC’s Directive To DisCos Raises to increase electricity highlighted the risk

Power Sector Concerns

costs for consumers, of infrastructure chal-
particularly as subsi- lenges, as existing
dies are reduced. Dis- transmission and dis-
BY YUSUF BABALOLA Generation Compa- will assume responsi- Cos will now need to tribution systems may
nies (GenCos). This bility for fulfilling fed- manage direct power struggle to accommo-

T he Nigeri- move has sparked eral government con- purchases and poten- date varying power
an Electrici- significant concerns tracts with GenCos, tially face financial sources effectively.
ty Regulatory about potential dis- including high-cost challenges if required The directive is seen
Commission (NERC) ruptions and contract agreements such as to prioritise expen- as a step towards re-
has introduced a con- breaches within the those with the Azura sive power sources ducing government
troversial new direc- power sector. power plant. This over more affordable fiscal exposure in the
tive requiring Dis- The directive, which shift signals a move options. power sector. Howev-
tribution Companies took effect in July, is towards phasing out Officials from Dis- er, it could place ad-
(DisCos) to bypass part of NERC’s effort electricity subsidies, Cos have voiced con- ditional financial bur-
the Nigerian Bulk to unbundle the Nige- leaving DisCos reli- cerns about the com- dens on both DisCos
Electricity Trading rian Electricity Sup- ant on their revenues plexity of managing and end-users, exac-
Company (NBET) ply Industry (NESI). and loans. these new contracts erbating the country’s
and enter into direct Under this new ar- The transition to a and the potential high cost of living
contracts with power rangement, DisCos cost-reflective tariff strain on financial and inflation.
MONDAY 19 - SUNDAY 25 AUGUST 2024
7
NEWS
QUICK NEWS
CHI Limited Wins
Big At Africa’s Most
Admired Brands Awards
BY OLUSHOLA BELLO
Leading manufacturer of fruit
juices, value-added dairy and
snacks, Chivita|Hollandia
(CHI Limited) has reaffirmed
its market leadership by
clinching top honours at the
prestigious Africa’s Most Ad-
mired Brands Awards.
The event, held at the Civic
Center in Lagos, recognised
brands within the Chivita|Hol-
landia (CHI Limited) portfo-
lio. The awards was organised
by African Brands magazine.
In a statement by the com-
pany, Chivita 100 per cent
was celebrated as the Most
Admired Natural Juice Brand,
lauded for its exceptional qual-
Left-R: Senior partner, Kenna Partners, Prof. Fabian Ajogwu; corporate affairs and sustainability director, Coca-Cola HBC, Oluwasoromidayo George; managing director/CEO, Financial Institutions ity and pure fruit extracts, free
Training Centre (FITC), Chizor Malize; executive director, Governance & Sustainability, Sahara Group, Ejiro Gray; CEO, NGX Regulation Ltd, Olufemi Shobanjo, and founder & president, CSR|ESG from added sugars, artificial
Institute, Prof. Wayne Dunn, during launch of FITC Sustainability & ESG Institute in Lagos flavours, and preservatives.
Also, according to the state-
homeless, vulnerables and ment, Chivita Happy Hour
FG To Drive Historic Housing Reforms underprivileged in the soci-
ety, saying, the funds will be
sourced from the fuel subsi-
was honoured with the Most
Admired Children’s Drink
Brand award, while Hollandia
BY BIDON MIBZAR who that 80 per cent of Nige- tualisation of the Renewed Evaporated Milk was named
rians are low income earners, Hope Agenda of President dy removal and profits after

M
tax. the Most Admired Milk Brand
inister of housing explained that the four hous- Bola Ahmed Tinubu. of the Year.
and urban develop- ing sector reform task teams Dangiwa said the only way The minister expressed sat-
isfaction for the initiatives of Marketing director at Chi-
ment, Ahmed Musa initiated by the ministry to make a sustainable differ- vita|Hollandia (CHI Limited),
Dangiwa, has stated that the upon his assumption of office ence is for all the key players the NBA-SBL Committee and
assured them of his readi- Mrs. Toyin Nnodi, expressed
ministry under his watch is were meant to position the in the housing value chain to appreciation for the recogni-
committed to driving his- ministry in a better stead to be reformed, work optimally ness to partner with them,
as the ministry is also part- tion, noting that the awards
toric housing reforms by in- deliver it’s presidential man- and deliver their mandates. reflect the company’s unwav-
creasing access to affordable date of increasing the stock He further said it’s not nering with National Skills
Acquisition programme and ering commitment to excel-
housing for all Nigerians of affordable housing for Ni- enough to build houses but lence in product quality and
across all the group and in- gerians to have a system that will National Population Com-
mission. consumer satisfaction.
come brackets. The reform task teams listed work efficiently and to de- “These awards inspire us to
Dangiwa stated this when by the minister were; Hous- liver results practically and Earlier speaking, the Pres-
ident and chairman of the continue pushing the bound-
the president and chairman ing institutions reform task maximally. “The ministry is aries to meet consumer needs,
of Committee on Construc- team, land reform task team, ready to partner with you and NBA-SBL Committee, An-
drew Osemedua Edum, said align with their lifestyles, and
tion Projects and Infrastruc- building materials manufac- all other relevant bodies,” he enhance their experiences,”
ture of the Nigerian Bar turing hub, saying that their said. they came to seek institu-
tional collaboration with the Nnodi stated.
Association, Section on Busi- reports would soon be on Dangiwa also informed the ‘‘The success of CHI Limit-
ness Law, (NBA-SBL), An- stream for implementation committe that plans are un- ministry.
He used the occasion to in- ed brands at the awards, under-
drew Osemedua Edum,paid to drive the housing sector. derway for National Social scores its dedication to quality,
him a courtesy visit in Abuja. The NBA- SBL commitee is Housing Funds to mobilise, vite the minister to attend
the Second National Confer- innovation, and customer-cen-
A press release signed by seeking collaboration with also to administer and allo- tricity, with a diverse range of
Salisu Badamasi Haiba, di- the ministry in real estate cate affordable, decent and ence on Construction Proj-
ects and Infrastructure as a products that cater to evolving
rector information and pub- projects, construction of accessible houses for those consumer preferences,’’ the
lic relations of the ministry bridges and rail lines as part who doesn’t have an income, guest to deliver a key note
address at the conference. statement read.
revealed that the minister, of their inputs towards ac- the low income earners,

Glovo, SPAR Market Partner To Enhance for our customers.”

Head of commercial for Glo-
vo Nigeria, Kolawole Adeniyi
SPAR Market project man-
ager for Glovo, Gaurav Pan-
chal added that, “the success
Grocery Delivery In Nigeria added that, “we are delighted
with the positive impact our
of our initial pilot has demon-
strated the strong demand for
BY OLUSHOLA BELLO outstanding results, prompt- strengthens its position in partnership with SPAR Mar- reliable and speedy delivery
ing the extension to 10 store Nigeria’s growing e-commerce ket has had. Expanding to services. We are excited to

G lovo, a multi-category locations across Lagos and market by expanding its gro- additional stores allows more expand this partnership and
app, has expanded its Abuja. Through this partner- cery and retail offerings. people to enjoy quick and reli- bring the benefits of Glovo’s
partnership with SPAR ship, SPAR Market and Glo- General manager of Glovo able grocery delivery.” platform to even more SPAR
Market to enhance grocery vo are enhancing the grocery Nigeria, Lamide Akinola stat- The deputy managing direc- Market’s customers across Ni-
delivery in the country. and retail landscape by offer- ed that, “this expansion re- tor of SPAR Market Nigeria, geria.”
Initially launched as a pi- ing customers the flexibility flects our commitment to en- Mr. Prakash Keswani stated Looking ahead, SPAR Mar-
lot programme in November to have their groceries and hancing the Glovo experience that, “our partnership with ket said, it is committed to ex-
2023, this partnership now household items delivered for our users. Glovo marks a significant tending Glovo’s services to ev-
extends to all 10 SPAR outlets quickly and efficiently to their “By partnering with SPAR milestone in providing an ery new store within Glovo’s
in Lagos and Abuja, enhanc- doorstep. Market, we are able to provide exceptional shopping expe- coverage areas. This vision
ing convenience and efficiency This partnership supports a broader range of products rience. By leveraging Glovo’s underscores both companies’
for urban consumers. SPAR Market’s goal of devel- and ensure timely delivery, ecosystem we ensure our cus- dedication to providing seam-
The initial rollout across five oping a seamless omnichan- making everyday shopping tomers receive their essential less, high-quality service to
SPAR Market stores yielded nel experience, while Glovo easier and more convenient items quickly and efficiently.” consumers across Nigeria.
8 MONDAY 19 - SUNDAY 25 AUGUST 2024

COMMENT
BUSINESS
Businesses: Responding To MATTERS

Cheap And Substitute Products

H
igh inflation as well as line inflation rate increased to
economic uncertainty, 33.69 per cent on a year-on-
have had significant year basis as of April 2024.
impacts on businesses, man- The percentage change is the
ufacturers, and households,
including individual lifestyles
highest in the last five years,
according to the records. Without a By TIMI OLUBIYI, Ph.D
and well-being in recent Without a doubt, the food doubt, the food
times. The direct consequenc- inflation trend over the last
es of these impacts continue two years has been over- inflation trend ity issues if the lower-priced
alternative continues to gain
to have serious implications. whelming. The proportion of over the last two market share and the interest
Globally, no country is im- the majority’s income that is of the masses.
mune to inflation. Around the spent on food has remained years has been
As a response, it is a time for
world, inflationary pressure ridiculously high. The per- overwhelming businesses to re-strategize,
has been experienced in the sistent rise in inflation results engage in high marketing
USA, the UK, and many other in a decline in the buying pow- and promotional campaigns,
developed and developing na- er of many Nigerians, who are and innovate in line with
tions. But in Nigeria, the pe- real-time getting poorer. Be- customer expectations and
culiarity is that inflation has cause they will be forced to patronage-improving prod-
been getting higher steadily prioritise significant spending ucts, and lower prices. Again,
for the last two years. Nigeria and the affordability of essen- businesses can review their
is one of the countries where tials will continue to decrease. pricing model at this time to
inflation has grown the fast- The consequences of high in- accommodate consumers and
est, and it has been a con- flation are a spike in unem- customers with waning pur-
cern for many businesses. The ployment numbers, a rise in chasing power. It is also im-
troubling trend is that most of poverty rates, declining sav- portant for the government
the basics and necessities are ings, a high number of jobless to play a bigger role in regu-
increasingly out of reach for youths, crimes, and unrest. A lating substandard, inferior,
the majority of people. Indi- report by Aljazeera titled “In- substitutes continues to rise and bad products, especially
cating that the country’s cost flation rises in Nigeria amid because the masses need to those that are dumped on the
of living has risen at an alarm- fuel scarcity and insecurity” survive at all costs, so who has Nigerian market.
ing rate. That is, the rise in indicated that four (4) out of the blame? The consumers or Businesses can fail as a result
household spending required ten (10) Nigerians are living the businesses? So long as the of substitute effects and sub-
to maintain a consistent and below the poverty line. So, price of goods and products stitute products outperform-
decent quality of life has been with this trend, the author continues to increase, demand ing the original. In the view of
a source of anxiety for many. has noticed a spike and sharp for their substitutes will con- the author, consumers large-
The National Bureau of Statis- rise in the demand for substi- tinue to rise. Consequently, ly make their choices based
tics (NBS) says Nigeria’s head- tuted products and services by business operators need to be on their available spending
the majority of the citizenry aware of this. Because where power and make constant
in the country. there is low or no demand for adjustments based on price
For the majority of busi- substitute products it makes changes, most of the time on
nesses, the persistent infla- the company profitable and impulse. Many are unaware
tion in the country has made such industry more attrac- that the high inflation rate
the high cost of running and tive. In a market where there in the country is one of the
maintaining independently are fewer substitute products, major reasons why the Naira
generated power unbearable, there is a higher probability is losing value. Right now, it’s
particularly the cost of diesel. of businesses earning greater important to look at and un-
Businesses can This has resulted in a high cost profits, but the reverse is the derstand how substitution
fail as a result of of running businesses. How- case, with inflation and the can affect the economy, busi-
ever, this cost is passed on to
substitute effects the consumers without no-
current realities.
From a business perspec-
nesses, and environment to
stop high death rates and
and substitute tice. When this cost is passed tive, substitute products cre- illnesses. Therefore, the au-
and consumers find it intoler- ate rivalry, loss of revenue, thors recommend that the
products able, then a change in demand weak sales, loss of potential government should make
outperforming is triggered by switching to customers or consumers, low a deliberate effort to tackle
substitute products. The pro- or no patronage, and threats the key issues in the coun-
the original pensity for this trend is high to business survival. The main try: insecurity, incessant
and it has been the order of absurdity is that businesses power issues, continued ex-
the day. Substitute products cannot even identify the pro- change rate instability, and
or goods are alternative goods viders of these alternatives, non-availability of forex to
that could be used for the because they remain largely genuine business operators
same purpose but with less in the dark and the quality of and exporting companies.
quality or satisfaction. There- these readily available cheap Inflation could remain an
fore, in the presence of infla- alternatives is significantly issue unless these issues are
tion, substituting means that compromised, with gross and given headlong attention.
consumers seek out alterna- growing health implications. Good luck!
tives that are frequently low As it stands market-leading How may you obtain advice
in price, most of the time low companies and products could or further information on
in quality, inferior, and largely even suffer business continu- the article?
unregulated. The demand for
MONDAY 19 - SUNDAY 25 AUGUST 2024
9
HUMAN RESOURCE

Building Effective Teams

ership is key when ensuring
that each team member feels
as if they belong within the
greater team. Without ac-
countability, employees can

In Workplace feel lost in the crowd and

undervalued in their role.
Delegate Tasks Based On
Strengths: Teams that work
BY OLUSHOLA BELLO team members, providing effort to build a transparent well together understand the
them with the necessary and supportive environment strengths and weaknesses of
each team member.

T eamwork has always

been an essential ca-
pability for successful
enterprises.
Teamwork in the work-
resources, feedback, and
support to succeed, recog-
nising and celebrating team
achievements. Ultimately, A strong and
that encourages teamwork
at all levels.
Communicate Openly
And Transparently: Ef-
Promote Efficiency And
Avoid Micromanagement:
A strong and cohesive team
develops systems that allow
building and leading high- cohesive team fective communication is
place refers to a group of ly effective teams require a the most important part them to collaborate effi-
employees working together combination of leadership, develops systems of teamwork. It involves ciently to complete tasks in
to complete a specific task or communication, and inter- consistently updating each a timely manner.
reach a common goal. Prac- personal skills, as well as a that allow them person and never assuming Support Employees In
tical elements of teamwork commitment to continuous that everyone has the same Building Team Cohesion:
may involve brainstorming learning and improvement.
to collaborate information. All workplaces provide
sessions, maintaining open “Managing teams could be efficiently to Establish A Clear Or- challenges, but having a
communication channels, quite complex due to the dy- ganisational Purpose: strong team environment in
holding regular meetings namics of human interaction complete tasks in Similarly to communica- place can act as a support
mechanism for staff mem-
and engaging in countless
other collaborative activi-
hence, many lofty business-
es, projects, and endeavours
a timely manner tion, there must be transpar-
ency regarding corporate bers.
ties. have failed due to the team purpose. Greater awareness Reward Teams For Tak-
Speaking on this the Ni- leaders’ or managers’ inabil- of the company’s core pur- ing Risks: Safe risks can be
gerian Exchange (NGX) ities to develop, innovate, oped deliberately to achieve pose will empower employ- extremely valuable to overall
X-Academy said, “Attaining espouse required capaci- outstanding results. ees to instill this purpose team success and enhancing
successful business tasks ties, and navigate intricate “It is not enough in any into their work. employee innovation.
and projects are hinged on processes and engagements organisation to appoint in- Set concrete team goals; Overall, good teamwork
skilled and committed indi- appropriately. There are sev- dividuals to a leadership Short-term and long-term means a synergistic way of
viduals coming together to eral critical elements, such position without knowledge goals are a prerequisite for working with each person
achieve common goals. The as communication, collabo- on what it may mean to be inspiring good teamwork. committed and working to-
progressive performance of ration, leadership, empow- a leader. Thus, leaders need Goals represent direction wards a shared goal. Team-
one’s team whether office erment, innovation, deci- to be coached, mentored, en- and allow team members work maximises the individu-
based or virtual, and this sion-making etc., in building couraged, and appropriately to exercise a level of flex- al strengths of team members
performance results from and leading effective teams.” rewarded for their efforts.” ibility and creativity when to bring out their best. It is
an effective teamwork and The Academy added that Ways To Achieve Team- determining the smartest therefore a necessity that
team-building process.” “great teams do not just hap- work In Workplace way to reach their desired leaders facilitate and build
It stated that “effective pen by accident; they hap- To achieve a team-centred outcome. the teamwork skills of their
team building and leader- pen because they have great workplace culture, leader- Promote Ownership people if they are to steer a
ship involves empowering leadership and are devel- ship must make a concerted And Accountability: Own- company toward success.
 10 MONDAY 19 - SUNDAY 25 AUGUST 2024

COMMENT

Fintech Has Raised The Bar Or

Has The Battleground Shifted?

shining robes. But they do not

have N115 trillion deposits.
In The Long Term
Banks’ lending and support
to the private sector have in-
creased from N71.21 trillion
in March 2024 to N72.92
trillion in April. It soared to
N74.31 trillion in May 2024.
Fintechs do not play in the big
league. Cancel that. Fintechs
cannot lend to the oil and gas
behemoth. Or the telecoms
big boys. The banks have shift-
ed the battleground.
The competitive advantage

I am apolitical. But I derive

pleasure in watching pol-
itics and politicians. The
American politics is a de-
light. A few weeks ago, Don-
Fintechs brought to the bat-
tleground has endeared these
entities to many Nigerians. It
has strengthened the sector.
That is the reason the elec-
ald Trump rode the wave and tronic payment transactions
blew a trumpet. Then, events peaked in the year 2023. It
happened in a quick succes- reached N600 trillion from
sion. Trump escaped an assas- N387 trillion in 2022. The Ni-
sination attempt. Joe Biden geria Inter-Bank Settlement
kissed the presidency good- System (NIBSS) reported.
bye. Kamala Harris entered Reports showed that banks
the race. Harris is standing are exploring alternative
toe-to-toe with Trump. Then methods to grow deposits to
the battleground shifted. The remain relevant and lend to
electorate has shifted. This the real sector. Fintechs do
has altered the scenarios. not play in the real sector. Or
Reports said America is be- in the telecom sector. I am
coming more diverse and ed- unsure. Therefore, the banks
ucated. Now the Swing-States hold forth in this regard.
Dial has seen shifts in the sev- There is no competition.
en battleground states. This Data from the Central Bank
will alter the outcome of the of Nigeria (CBN) showed that
presidential election. Who is credit to the private sector
your candidate? has increased from N29.52
On The One Hand trillion to N74.31 trillion in
Well, the battleground has cost deposits are increasing
even with the challenges of May 2024. In the year 2023, it
also shifted in the business was N44.79 trillion. Until the
world. Despite fierce compe- the Fintech firms. This is ev-
ident. MoMo Payment Ser- Fintechs have the bottomless
tition from Fintechs, some Banks’ lending and pockets to lend to the private
bank customers and corpo- vice Bank (MoMo PSB) from
MTN Nigeria, Airtel Smart- sector and display the banks’
rate entities are entrusting support to the private resilience, the battleground
their funds to the safekeeping Cash, PiggyVest, Opay,
sector have increased Palmpay, et al offer lucrative will not be the same.
of the banks. Reports have In The Short Term
shown that the total depos- interest rates on deposits.
from N71.21 trillion in Fintechs have raised the bar. The banks have taken their
its in the banking sector in- rightful place in the scheme.
creased to N115 trillion in the March 2024 to N72.92 They offer customers easier
and cheaper services. They When it comes to lending to
year 2023. This is about 63 trillion in April the real sector and funding
per cent growth from N70.5 offer what they have. Zero
transfer fees. Attractive in- big meal ticket projects, the
trillion reported in the year banks have it. The verdict?
2022. terest rates on savings. On-
line banking experience. Each entity gives what it has.
On The Other Hand Who is your candidate?
Reports indicated that low- Speed. Simplicity. These are
MONDAY 19 - SUNDAY 25 AUGUST 2024
11
12 MONDAY 19 - SUNDAY 25 AUGUST 2024

NIGERIAN ECONOMY

Nigeria’s Misery Index: How FG Can Assuage The Pain

BY CEES HARMON ture deficit, characterised by poor
roads, unreliable electricity supply,
and inadequate healthcare and educa-

N igeria’s struggle with the Unit-

ed Nations’ misery index is a
reflection of the deep-rooted
economic and social challenges fac-
ing the country. The misery index,
tional facilities, further stifles econom-
ic growth. Businesses face high oper-
ating costs due to the lack of reliable
infrastructure, which discourages in-
which combines unemployment and vestment and limits job creation. This
inflation rates to gauge the econom- infrastructure gap also hampers the
ic well-being of a nation’s citizens, government’s ability to effectively im-
paints a bleak picture of life for many plement policies that could stimulate
Nigerians. Despite being Africa’s economic growth and reduce poverty.
largest economy and one of its most The COVID-19 pandemic has only
resource-rich nations, Nigeria ranks deepened Nigeria’s misery, pushing
poorly on the index, highlighting a millions more into poverty and exac-
paradox of potential versus reality. erbating existing vulnerabilities. The
At the heart of Nigeria’s poor per- economic fallout from the pandemic,
formance on the misery index is the including job losses, reduced income,
persistently high rate of unemploy- and increased living costs, has been
ment. Official figures from the Na- devastating for a country already grap-
tional Bureau of Statistics reveal that pling with significant economic chal-
the unemployment rate stands at over lenges. The pandemic exposed the
33 per cent, with youth unemploy- fragility of Nigeria’s social safety nets
ment even higher. This means that and the inadequacy of its healthcare
more than one in three Nigerians ca- system, further compounding the hard-
pable of working is unable to find a ships faced by the population.
job, leading to widespread frustration, edented heights, 40 per cent. The cost have crippled key sectors of the econ- Social and political instability also
hopelessness, and a sense of disen- of basic necessities like food, housing, omy. The oil industry, which is the contribute to Nigeria’s high misery in-
franchisement, especially among the and transportation has skyrocketed by backbone of Nigeria’s economy, has dex ranking. The country has been be-
youth. The lack of job opportunities more than 300 per cent, eroding the been plagued by inefficiency, corrup- set by insecurity, with terrorist groups
not only limits personal income but purchasing power of millions of Ni- tion, and theft. Despite being one of like Boko Haram in the northeast, ban-
also fuels social unrest and crime, cre- gerians. As prices climb, the average the world’s largest oil producers, Ni- ditry in the northwest, and separatist
ating a vicious cycle that perpetuates Nigerian finds it increasingly difficult geria has failed to leverage its vast movements in the southeast causing
economic hardship. to afford even the most basic needs, oil wealth to improve the lives of its widespread fear and displacement.
Compounding the unemployment leading to a decline in living standards citizens. Instead, the country remains The resultant insecurity has disrupt-
crisis is the rampant inflation that and exacerbating poverty. heavily reliant on oil exports, leaving ed agricultural production, displaced
has gripped the country. Nigeria’s in- The root causes of Nigeria’s eco- it vulnerable to fluctuations in global communities, and strained govern-
flation rate has consistently hovered nomic woes are multifaceted. De- oil prices and unable to diversify its ment resources, making it difficult to
around alarming levels, with food in- cades of mismanagement, corruption, economy. address the underlying economic chal-
flation in particular soaring to unprec- and inconsistent government policies Moreover, the country’s infrastruc- lenges.

FISCAL POLICY
ic burden of illegal taxation leads to higher ularly small and medium-sized enterprises
Illegal Taxation In Nigeria: A Hidden Threat prices for consumers, reduces profitability
for businesses, and discourages investment
(SMEs), struggle to grow under the weight
of these unofficial levies, limiting job cre-
To Businesses, Economic Stability and expansion.
For individuals, particularly those al-
ready living on the margins, the impact of
ation and economic diversification. On a
broader scale, the lack of investment and
economic activity hampers Nigeria’s abili-
BY CEES HARMON amount for a small-scale trader trying to illegal taxation is equally devastating. In ty to achieve sustainable development and
make ends meet. rural areas, farmers are often forced to pay reduce poverty.
unauthorised levies to access their land or Addressing the issue of illegal taxation

I n Nigeria, where entrepreneurship is of-

ten heralded as a key to economic devel-
opment, illegal taxation is quietly stifling
businesses and burdening individuals. This
shadowy system of unregulated levies, ex-
The problem of illegal taxation is not lim-
ited to traders in markets. Across Nigeria,
businesses and individuals are confronted
by a plethora of unofficial fees imposed by
to transport their produce to markets. These
illegal fees, coupled with the already high
costs of inputs and the challenges of poor
infrastructure, significantly reduce farmers’
requires a multifaceted approach. Firstly,
there is a need for stronger law enforce-
ment and regulatory oversight to clamp
down on those engaging in these practic-
various groups, including local touts, cor-
tortions, and unauthorised fees has become rupt government officials, and even criminal earnings, pushing many further into poverty. es. This includes both those who impose
a pervasive problem, particularly in infor- organisations. In Lagos, Nigeria’s commer- The proliferation of illegal taxation also illegal taxes and those who facilitate them
mal sectors and regions where government cial hub, transporters often face harassment undermines trust in legitimate government through corruption or negligence. Second-
oversight is weak. The impact of these ille- from area boys—local gangs who demand institutions. When citizens see corrupt of- ly, there must be efforts to formalize the
gal taxes is profound, contributing to eco- daily fees for the right to operate on certain ficials or local strongmen extorting money informal sector, bringing more businesses
nomic instability, discouraging investment, routes. Failure to comply can result in phys- without consequence, it erodes confidence under the protection and regulation of the
and deepening poverty across the country. ical violence, damage to vehicles, or even in the rule of law and the state’s ability to state, where they can be shielded from ex-
For many small business owners like Chi- abduction. protect its citizens. This breakdown in trust tortion.
di Eze, a trader in the bustling Onitsha mar- These illegal taxes significantly increase can lead to a vicious cycle where individu- Moreover, the government must work
ket, illegal taxation is an inescapable part of the cost of doing business in Nigeria. En- als and businesses are more likely to engage to rebuild trust with the public by demon-
daily life. “Every day, there’s a new demand trepreneurs, particularly those in the infor- in tax evasion, further reducing the govern- strating a commitment to transparency and
from one group or another,” Eze says, his mal sector, find themselves paying multiple ment’s ability to fund essential services and accountability in tax collection. This could
voice tinged with frustration. “They ask for levies, which are not recorded anywhere enforce regulations. involve public awareness campaigns to
money for everything—security, sanitation, and do not contribute to government reve- The economic and social consequences educate citizens about their rights and the
even to allow us to open our shops. If you nue. The lack of accountability means that of illegal taxation are severe. For the econo- importance of paying legitimate taxes, as
refuse, they threaten you or destroy your these funds are often pocketed by individu- my, it creates an environment of uncertainty well as reforms to ensure that tax revenues
goods.” For Eze, these payments can total als rather than being used for public services and insecurity that discourages both local are used effectively to improve public ser-
more than ₦50,000 monthly, a significant or infrastructure development. The econom- and foreign investment. Businesses, partic- vices and infrastructure.
MONDAY 19 - SUNDAY 25 AUGUST 2024
13
COMMENT

LEADERSHIP
EXPRESS Leadership Accountability
(holding yourself to high ethical standards as a leader)
Communicate openly and
honestly: One of the key ways
to build trust and credibili-
ty with your team is through
open and honest communi-
cation. This means being up-
By Dr. Akin Oke front about your intentions,
and being transparent about
the company’s performance
and strategy.

L eadership ethics and

accountability are im-
portant concepts for
effective leadership. In order
to be a successful leader, it
Hold yourself and others
accountable: As a leader, it
is important to hold yourself
and your team accountable
for their actions. This means
is essential to hold oneself to setting clear expectations,
high ethical standards and be and holding everyone to the
accountable for one’s actions same standards.
and decisions. This involves Be a role model: As a leader,
being honest, transparent, and you are in a position of influ-
fair, and taking responsibility ence and your actions and be-
for the impact of one’s actions havior set the tone for the rest
on others. of the team. It is important
Accountability is built to be a role model for ethical
around expectations. It’s behavior, and to demonstrate
about being clear with every- these values in your daily ac-
one involved about what you tions.
expect from them and why. Apologise and take respon-
When people feel account- sibility when necessary: We
able for their actions, they all make mistakes, and it is
take ownership of them and important to admit when we
can easily fix mistakes they are wrong and take respon-
make. sibility for our actions. As a
This piece is the second part leader, this includes apologis-
of a 5-part series to kickstart ing when necessary and tak-
your journey to exceptional ing steps to improve the sit-
leadership in the new year. uation.
Stay tuned for practical tips Self-reflection and
on how to improve your lead- self-awareness: It is essential
ership accountability. for leaders to understand their
Leadership Accountability own values and beliefs, and
in practice to regularly evaluate whether
A good example of how lead- their actions align with those
ership ethics and accountabil- values. This self-reflection
ity can be demonstrated in the can be aided by seeking feed-
real world is through the sto- back from others and engag-
ry of former General Electric ing in ongoing learning and
CEO, Jack Welch. Welch was development.
known for his strong leader- As you step into 2023, go in
ship style and his commit- with a renewed sense of ac-
ment to ethical standards. He countability, ask yourself the
believed that leaders should following questions to inspire
be transparent and account- even greater accountability:
able for their actions, and he What are your personal val-
held himself and his team to of General Electric. Howev- ues and ethical standards?
high ethical standards despite er, it is important to note that How do you demonstrate
the challenges he faced in his even Welch faced challeng- leadership ethics and account-
time at the helm of affairs at es in maintaining these high ability in your current role?
GE. ethical standards, and it takes In what areas could you im-
For example, Welch made consistent effort and commit- prove in terms of leadership
it a priority to communicate It is essential ment to do so. ethics and accountability?
openly and honestly with his for leaders to Six Traits Of Accountable How do you hold yourself
employees, and he was trans- Leaders and your team accountable for
parent about the company’s understand their To demonstrate a high sense their actions and decisions?
financial performance and own values and of leadership accountability, In what ways can you create
business strategy – in good there are several key traits a culture of ethical behavior
and bad times. He also made beliefs, and to of an accountable leader that within your team or organisa-
sure that everyone was held you can adopt: tion?
accountable for their actions, regularly evaluate Set high ethical standards
and that everyone was treated whether their for yourself: As a leader, it is
fairly and with respect. important to establish and ad- Dr. Akin Oke is a Leadership Coach and
Welch’s leadership style and actions align with here to a clear set of ethical Convener of Leadership Express – a global
commitment to ethical stan- standards. This includes hon- leadership development platform.
dards helped to build trust those values esty, transparency, fairness, Follow me on LinkedIn - https://www.linke-
and credibility with his team, and taking responsibility for din.com/in/akin-oke-phd/
and contributed to the success your actions. Leadership Express – www.leadershipx-
14 MONDAY 19 - SUNDAY 25 AUGUST 2024
MONDAY 19 - SUNDAY 25 AUGUST 2024
15
MONEY GUIDE
alysts and stakeholders. An-
alysts at FBNQuest, a lead-
ing research firm, expressed
optimism that the move
could help reduce volatility
in the FX market during the
second half of 2024. “Giv-
en the improvements in FX
inflows, the market may ex-
perience reduced volatility
in H2’24. While this devel-
opment could contribute to a
more stable economic envi-
ronment, the impact on im-
port costs and inflation will
depend on broader market
conditions and policy re-
sponses,” the analysts noted.
However, not all analysts
are equally optimistic. Ex-
perts at Afrinvest West Africa
offered a more cautious out-
look, raising concerns about
the long-term sustainability
of the RDAS and other mea-
sures recently introduced
by the CBN. While they ac-
knowledged that the rein-
troduction of RDAS could
stabilise the forex market in
the short term, they pointed

CBN Reintroduces RDAS To out that several challenges

remain.
“We are of the view that
the apex bank does not pos-
sess the required financial

Tackle Forex Market Volatility viate the persistent demand

war chest to meet the aver-
age forex demand for an ex-
tended period. Recall that
Dr. Cardoso, during the last
Monetary Policy Commit-
tee (MPC) meeting, stated
BY BUKOLA ARO-LAMBO
pressures in the FX market that the country’s foreign re-
n an effort to manage on-

I and enhance the process of serves of $37.1 billion could

going liquidity pressures price discovery. By provid- cover 11 months’ imports.
in the foreign exchange ing a more transparent and This implies a monthly av-
(FX) market, the Central market-driven mechanism erage import spend of $3.3
The decision to Bank of Nigeria (CBN) for determining the ex- billion. Regardless of the
bring back RDAS has reintroduced the Re-
tail Dutch Auction System
change rate, the CBN aims estimate considered, the FX
reserves could run dry in six
to curb the volatility that has
is part of a broader (RDAS). The move comes plagued the market in recent to nine months should the
after a prolonged period of months. This decision comes magnitude of the bids at the
strategy to stabilise significant volatility and at a time when the naira has auction be met weekly and
the FX market and sustained demand pressure been under severe pressure, accretion rate does not offset
on the naira, the nation’s with significant fluctuations outflows,” Afrinvest analysts
promote economic currency. The CBN initiated in its value against major warned.
this step by selling $876.3 currencies, particularly the In addition, they highlight-
stability million to 26 qualified banks US dollar. ed seasonal factors that could
at a rate of N1,495 per dol- According to the CBN, exacerbate demand pressures
lar, marking the first use of the decision to bring back in the near future. “Seasonal-
RDAS since its discontinua- RDAS is part of a broader ity trends suggest that forex
tion over a decade ago. strategy to stabilise the FX demand for manufacturing
The RDAS was originally market and promote eco- imports, educational com-
utilised by the CBN in 1987, nomic stability. A statement mitments, and summer trav-
1990, and 2002-2006 as a from the apex bank, signed els peaks in Q3. Hence, we
mechanism for determining by its Director of Financial are of the view that the mea-
the exchange rate through Markets, Dr. Omolara Duke, sure will only temper the de-
a competitive bidding pro- explained the RDAS pro- mand pressure that is build-
cess. It allowed eligible cus- cess in detail. “The Auction ing up,” they concluded.
tomers, including banks and mechanism is predicated on As the CBN navigates the
other authorised dealers, to the volume of forex avail- complex terrain of forex
participate in the auction by able for sale. In addition, it market management, the re-
bidding for foreign currency is also to give forward guid- introduction of RDAS is a
at rates they were willing to ance on the exchange rate significant step that under-
pay. The system ensured that that will promote forex mar- scores the central bank’s
the lowest bids were filled ket stability. The cutoff point commitment to stabilising
first, and the marginal rate— of an Auction is the lowest the naira. However, the effec-
the lowest rate at which all exchange rate that clears the tiveness and sustainability of
bids could be filled—became volume that is offered for this approach will depend on
the official exchange rate for the Auction,” the statement a range of factors, including
that auction. read. the availability of foreign re-
The reintroduction of The reintroduction of serves, the broader economic
RDAS is seen as a strategic RDAS has generated a range environment, and the policy
move by the CBN to alle- of reactions from market an- responses that follow.
16 MONDAY 19 - SUNDAY 25 AUGUST 2024

COMPANIES & MARKETS

QUICK NEWS
Lafarge Africa,
Innovate UK Partner
To Drive Innovation In
Construction Sector
BY OLUSHOLA BELLO

L afarge Africa Plc has an-

nounced a collaboration
with Innovate UK to drive
an Open Innovation challenge
through the Global Alliance Af-
rica project.
This partnership aims to assist
Lafarge Africa in discovering
creative circular economy initia-
tives for utilizing Construction
Demolition Materials (CDM) in
addressing material waste and
climate change challenges. In
doing so, Lafarge Africa empha-
sises its dedication to making
substantial contributions to the
decarbonisation of the construc-
tion industry.
L-R: Managing director / chief executive officer, PremiumTrust Bank, Mr. Emmanuel Efe Emefien, and the president of the Nigerian Football Federation, Mr. Ibrahim Musa Gusau, after recent signing of a 4-year The open innovation chal-
contract in Abuja, solidifying a partnership between PremiumTrust Bank and the NFF to advance football development in Nigeria.
lenge targets three key objec-
tives: creating digital tools to lo-
$500m Domestic Bond Will Boost External Reserves – Edun cate cementitious CDM sources,
securing these sources in urban
settings, and enhancing local
By OLUSHOLA BELLO The bond is open to Nigerians roeconomic policies. Today, we stood at $36.62 billion, accord- technologies for processing and
and non-Nigerians resident in are playing a significant role in

T
ing to data from the Central recycling these materials.
he minister of finance Nigeria, Nigerians in the Dias- this process with the domestic is- Bank of Nigeria.
and coordinating minis- The pilot project will start in
pora, and Qualified Institutional suance of US dollar bonds, aimed Detailing the offering, man- Lagos with the intention to scale
ter of the economy, Wale Investors. Investors can sub- at increasing the flow of dollars aging director of Investment
Edun, has stated that the $500 to other states in the long term.
scribe with a minimum amount into the economy. Banking at United Capital, the Up to £25,000 seed funding is
million domestic FGN US dol- of $10,000, with additional in- “We are already seeing success lead issuing house, Dr Gbadebo
lar bond will enhance external available for this challenge and
vestments in multiples of $1,000 with the combination of mone- Adenrele disclosed that the $500 innovative companies from var-
reserves and help stabilise the thereafter. tary and fiscal policies, which is million domestic bond targets
foreign exchange situation in ious sectors including Construc-
Edun said, “We are here today attracting foreign portfolio in- Nigerians, non-Nigerians resid- tion, Recycling, Manufacturing,
the country. to discuss dollar funding, which vestments (FPIs). Additionally, ing in the country, and Nigerians
He stated this at the hybrid Materials, Chemistry, Energy,
is critical for the exchange rate foreign direct investments are in the diaspora.” Data, Design, AI, Energy among
roadshow for the domestic FGN and essential for stabilising in- starting to increase, particularly Adenrele said, “One of the key
US Dollar Bond with investors, others are to apply with appli-
vestment and the economy. The in the oil and gas sector. aspects of this bond issuance is cation deadline on August 27,
held yesterday in Lagos. Central Bank has adopted the “More foreign exchange leads that it will be listed on platforms
The launch of the Series one 2024.
‘willing buyer, willing seller’ to higher reserves and a stron- such as the Nigerian Exchange The winner of the innovation
Domestic USD Bond, aiming to model, which has proven effi- ger exchange rate, which can re- and FMDQ, making it accessible
raise at least $500 million from challenge will pitch to Lafarge
cient and has contributed to the duce inflation and, consequent- to a variety of investors.” Africa and will be invited to
both local and international in- influx of additional dollars. ly, interest rates. This creates The director-general of the
vestors will commenced on Au- collaborate with them on a trial
“Specifically, the flow of dollars opportunities for borrowing, Debt Management Office project.
gust 19, 2024. The bond offers into the economy has improved investing, increasing productiv- (DMO), Patience Oniha, noted
bullet repayment at maturity in The GMD/CEO of Lafarge
through portfolio investors, for- ity, creating jobs, and reducing that the settlement date for the Africa, Lolu Alade-Akinyemi
US dollars, ensuring full repay- eign direct investors, and multi- poverty.” domestic dollar bond auction
ment of the principal amount expressed, “We are a building
lateral organisations that have He noted that Nigeria’s exter- will likely be in 10 days after the solutions company committed
at the end of the five-year term. supported the President’s mac- nal reserves, as of August 12, auction date. to sustainability, innovation and
operational excellence. As a
United Capital Group Transcends tinent. Our goal is to empower
corporates and sovereign gov-
ernments with tailored financial
member of the Holcim Group,
we are reducing carbon emis-
sions by fostering innovative
Borders With $1.4m Corporate Bond solutions that transcend borders
and foster prosperity throughout
ideas and technologies to facil-
itate sustainable transformation
finance institution serving micro, novative transactions like this.” Africa.” within the construction industry.
BY OLUSHOLA BELLO The transaction was a collabo- “To make a positive impact on
small, and medium enterprises He stated that this bond issu-
(MSMEs) in Sierra Leone, with ance is a significant step in United rative effort involving key finan- the construction sector, we are

U nited Capital Group, has

successfully led the issu-
ance of Sierra Leone’s first
local currency corporate bond,
valued at SLE32 million ($1.4
a significant focus on providing
affordable loans to women from
low-income households.
Managing director, Investment
Capital’s broader strategy to ex-
pand its footprint across the Afri-
can capital markets.
The group CEO, United Capi-
cial institutions including Invest
Salone (a UK-funded private sec-
tor development programme) and
Pennarth Greene (a Sierra Leo-
seeking creative circular ideas
for utilising Construction Dem-
olition Materials (CDM) to ad-
dress material waste and climate
Banking at United Capital Group, tal, Peter Ashade, emphasised the nean-based corporate finance ad- change challenges to contribute
million). visory firm), underscoring a col-
This milestone signifies a Dr. Gbadebo Adenrele said, “We pan-African impact of this trans- to decarbonisation.”
lective commitment to developing The open innovation lead,
transformative moment for Sierra are pleased to have advised LAPO action saying, “This successful
the bond market in Sierra Leone.
Leone’s capital market. Acting as SL on this landmark transaction. It corporate bond issuance in Sierra Innovate UK, Babar Javed
The Africa Local Currency said, “The goal of Global Alli-
the financial adviser, United Capi- not only strengthens the corporate Leone is a testament to our stra-
Bond Fund (ALCB Fund) served
tal through its investment banking bond framework but also deepens tegic focus on expanding United ance Africa’s Open Innovation
the Sierra Leonean capital market. Capital’s presence across Africa. as the anchor investor, injecting intervention is to help large
business, provided bespoke struc- approximately SLE27 million
turing, financial advisory, and At United Capital, we are com- “By leveraging our expertise companies find innovative
mitted to enhancing the capital and resources, we are unlocking into the transaction, further sig- solutions to technical problems
fundraising services to the Issuer, naling strong interest in Sierra Le-
LAPO SL. The Issuer is a micro- market ecosystem across Africa new opportunities and driving that their traditional supply
through active participation in in- economic growth across the con- one’s burgeoning economy. chains cannot solve.
MONDAY 19 - SUNDAY 25 AUGUST 2024
17
TECHNOLOGY
cuts, multiple taxes, excessive taining permits and approvals

Highlighting The Role Of States right-of-way fees, insecurity,

high energy costs, and infla-
tion. For instance, the industry
experienced over 35,000 fiber
to reduce delays in infrastruc-
ture deployment and providing
incentives to make the state at-
tractive to foreign investors,” he

In Internet Connectivity cuts in 2022 and over 24,000

fiber cuts so far in 2023. Sim-
ilarly, over N14 billion has
been spent on repairing dam-
added.
It is imperative for the Nige-
rian government to increase its
spending on telecom and attract
As the world moves towards an increasingly digital future, the aged fiber. In the same vein, more foreign investment in tele-
actions or inactions of states can determine whether communities there have been over 18,000
denial of access cases recorded
communications to boost pro-
ductivity and economic growth,
are left behind or propelled forward. ROYAL IBEH writes. in 2022 and over 6,000 cases Abdullahi stated while advocat-
so far in 2023,” Abdullahi re- ing for effective communication
vealed. and collaboration between state
Path Forward governments, federal agencies,
Maida, at a one day strate- and private sector stakeholders,
gic Stakeholder’s Meeting with as effort to address regulatory
the 36 States Commission- challenges and fostering an en-
ers Including FCT, therefore vironment conducive to growth
called on states to prioritise and innovation.
broadband infrastructure, im- While multiple taxation re-
plement investor-friendly pol- mains a major challenge for
icies, and eliminate regulatory infrastructure development in
bottlenecks. Nigeria, as it disincentivises
“While we all have our parts investments and hampers the
to play, we cannot achieve this growth of telecommunications
vision alone. We need a collabo- infrastructure, Abdullahi said
rative effort from all stakehold- addressing this issue requires a
ers – state governments and concerted effort from all levels
industry players. To the state of government to streamline
governments, we offer part- taxes and provide incentives for
nership and technical expertise infrastructure investments. This
through various programs such will attract more investments
as the USPF, National Broad- and ensure the sustainability of
BY ROYAL IBEH lished GIS centers to optimise band Alliance for Nigeria, Proj- existing infrastructure, he add-
land use and management pro- ect 774 LG connectivity, and so ed.

C onnectivity is the back-

bone of modern econo-
mies, as it drives inno-
vation, enhances productivity,
and opens up new avenues for
cesses.
“Moreover, broadband con-
nectivity bridges the digital
divide, promoting social equity
Multiple taxation remains
a major challenge
much more. To the industry,
let’s leverage innovation and
investment in solutions while
embracing efficiency to reach
On RoW, Abdullahi said ex-
cessive right-of-way fees pose
a significant barrier to the ex-
pansion of telecommunications
by making digital tools accessi- the underserved. Each state networks.
economic growth. ble to all citizens. Additionally, for infrastructure can, in its unique way, propel In November 2022, the Fed-
According to the executive broadband enhances security development for its state and eral Government of Nigeria
vice chairman/chief executive and governance by supporting
development in Nigeria, the nation at large. It, how- reduced rights-of-way fees for
officer, Nigerian Communica- surveillance systems, biomet- as it disincentivises ever, starts with effective col- telecom infrastructure in its
tions Commission (NCC), Dr. ric identification, and data an- laboration,” Maida, who was Federal Capital Territory by 90
Aminu Maida, broadband con- alytics for crime prevention. investments and represented by the assistant per cent, facilitating the cover-
nectivity is a critical enabler Digital platforms also facilitate hampers the growth of director, Digital Economy De- age of 75 per cent of the nation-
of digitisation and technical citizen engagement, promot- partment, NCC, Engr. Yahaya al territory with optical fibre by
efficiency, as it provides the es- ing transparency and partici- telecommunications Hamisu Abubakar, added. 2027, as proposed by the Na-
sential infrastructure that sup- patory decision-making. In es- infrastructure Emoekpere assured that tional Broadband Plan.
ports digital tools and services sence, broadband connectivity operators are committed to “In Edo and Kwara States, IHS
across various sectors. is not just about faster internet significant risks to both lo- working collaboratively with has reached agreements on the
The World Bank has high- speeds; it’s about transforming cal and expatriate personnel all stakeholders to overcome administration of right-of-way
lighted the profound impact economies, enhancing public working on telecom projects. these challenges, adding that, fees, which have significantly
of broadband on economic services, promoting social eq- “Additionally, the exorbitant “We believe that through con- reduced operational costs and
development, particularly in uity, and ensuring better gov- fees and bureaucratic hurdles certed efforts and strategic facilitated faster deployment
developing nations. According ernance. It lays the foundation associated with obtaining right partnerships, we can create a of infrastructure. While this is
to their report (WB 2016), a for a more connected, efficient, of way permits from some state more favorable environment a commendable step towards
10 per cent increase in fixed and inclusive society, where governments continue to be for the expansion of telecom achieving massive broadband
broadband penetration can technology empowers every a major barrier to infrastruc- infrastructure and the realisa- penetration in Nigeria, we urge
boost GDP growth by up to citizen and drives sustainable ture development. The lack tion of our collective goals. other states to lower these fees
1.38 per cent in developing development,” Maida further of proper road infrastructure “By leveraging technical and offer incentives to telecom
countries thereby speeding up explained. in rural areas further compli- efficiencies, reducing right- operators to encourage infra-
the economy. In the same vein, the presi- cates efforts to extend telecom of-way fees, and fostering structure development,” he
“Broadband connectivity is a dent, ATCON, Tony Izuagbe services to underserved and collaboration between state added.
catalyst for economic growth, Emoekpere, said despite the remote communities,” Emoek- governments and private sec- Finally, encouraging Public
driving the digital economy, promising prospects of broad- pere lamented. tor stakeholders, we can unlock Private Partnerships (PPPs)
creating job opportunities, and band and connectivity, there Challenges the full potential of Nigeria’s can help bridge the funding
fostering entrepreneurship. are numerous challenges that Despite these huge benefits, states and accelerate our jour- gap for large-scale telecom-
It enhances public service de- continue to impede the deploy- the director, Regulatory, IHS, ney towards a digitally inclusive munications projects, ensur-
livery through e-governance ment of telecom network infra- Saidu Abdullahi, affirmed that future,” Abdullahi affirmed. ing that both urban and rural
systems, with online portals structure. “Insecurity remains the journey towards a connect- He advised that states gov- areas benefit from improved
for business registrations and a major concern, particularly ed Nigeria is fraught with chal- ernment to conduct a compre- connectivity, Abdullahi stated,
tax filings improving efficien- the activities of non-state ac- lenges such as high CAPEX re- hensive review of their regulato- adding that, “By addressing
cy and reducing bureaucratic tors engaging in criminal ac- quirements, multiple taxation, ry frameworks to accommodate these key areas, state govern-
delays. In infrastructure devel- tivities such as kidnapping, and regulatory hurdles. advancements in telecommu- ments can drive connectivity,
opment and urban planning, banditry, and terrorism. These “The telecom companies nications technology and ease promote socioeconomic devel-
Geographic Information Sys- threats are most prevalent in responsible for expanding the stress of doing business in opment, and position Nigeria
tems (GIS) play a pivotal role, the northern and southeastern internet access face several respective states. “This includes as a leader in the digital econ-
and many states have estab- regions of the country, posing problems, which include fiber streamlining the process for ob- omy.”
18 MONDAY 19 - SUNDAY 25 AUGUST 2024

OPINION
tion, advocating for into resource alloca-
A Kaleidoscope Of Perspectives: stringent regulations
and conservation ef-
tion and cost-effec-
tiveness. Combining
forts. Meanwhile, an these lenses enables
Enhancing Policy Making In Nigeria economist might em-
phasise the potential
policymakers to de-
sign education pol-
BY ABDULRAUF ALIYU theory unveils a new tiveness of different for green technolo- icies that promote
perspective. One can healthcare delivery gies and sustainable inclusivity while en-
practices to drive suring efficient re-

I n the realm of pub-

lic policy, the lens
through which we
view challenges can
often shape the solu-
analyse the incen-
tives and behaviours
of civil servants, con-
sidering strategies
models.
Suppose policy-
makers solely rely
on one discipline’s
economic growth
and job creation.
By integrating these
perspectives, policy-
source utilisation.
Embracing Com-
plexity For Effec-
tive Policy Making
such as incentivising perspective. In that
tions we propose. integrity or imple- case, they risk over- makers can develop In navigating Ni-
The analogy of us- menting monitoring looking crucial as- comprehensive strat- geria’s complex
ing analytical frame- mechanisms to miti- pects of the health- egies that balance policy landscape,
works as lenses, as gate moral hazard. care system, such as environmental pro- policymakers must
described by a pro- On the other hand, social determinants tection with econom- embrace a kaleido-
fessor during a game an economic lens of health, cultur- ic development, such scope of perspec-
theory class during may emphasize the al beliefs affecting as promoting renew- tives. The lens anal-
my days as a gradu- impact of corruption healthcare-seeking able energy invest- ogy underscores the
ate student, resonates on market efficien- behavior, or the eco- ments while incen- value of analytical
profoundly in the cy and resource al- nomic implications tivising eco-friendly frameworks in sim-
context of Nigeria’s location. By quanti- of inadequate health- business practices. plifying complexity,
policy landscape. fying the economic care access on pro- Strengths And interdisciplinary ap-
The complexities and costs of corruption ductivity and human Limitations: Choos- proaches in bridg-
nuances of policy through models and development. ing Wisely ing knowledge gaps,
challenges in a coun- data analysis, policy- Harnessing Mul- Let’s turn our at- and the strategic use
try as diverse and makers can prioritize tiple Lenses: Seeing tention to education of multiple lenses
dynamic as Nigeria anti-corruption mea- the Bigger Picture policy. A sociolo- in seeing the bigger
demand a multifacet- sures based on their Consider the chal- gist may emphasise picture.
ed approach, one that potential economic lenge of environ- the role of cultural If Nigeria real-
embraces interdisci- returns. mental sustainability diversity in shap- ly wants to chart its
plinary perspectives Interdisciplinary in Nigeria. An envi- ing educational out- path towards sustain-
and acknowledg- Approaches: Bridg- ronmental scientist comes and advocate able development
es the strengths and ing Knowledge Gaps may focus on pollu- for inclusive curric- and governance, the
limitations of each Now, let’s delve tion levels and nat- ula. Conversely, an integration of diverse
analytical lens. into an interdisciplin- ural resource deple- education economist perspectives and
Analytical Lenses: ary approach regard- might analyse the ef- the judicious appli-
Simplifying Com- ing healthcare policy ficiency and equity cation of analytical
plexity in Nigeria. A public implications of dif- frameworks will be
Imagine a scenar- health expert may ferent funding mod- paramount. By har-
io where Nigeria is highlight the impor- els or school voucher nessing the power
grappling with wide- tance of preventive In navigating programs. of varied lenses, the
spread corruption Understanding the country’s policymak-
within its civil ser-
measures and com- Nigeria’s complex strengths and limita- ers must be ready to
munity-based inter-
vice, hindering effi- ventions to combat policy landscape, tions of each lens is craft nuanced poli-
cient service delivery diseases. Simultane- crucial here. While cies that address the
and economic prog- policymakers the sociological per- country’s multifac-
ously, an economist
ress. At first glance, could analyse the must embrace a spective sheds light eted challenges, ul-
this seems like an financial feasibility on social equity and timately fostering
insurmountable chal- kaleidoscope of cultural relevance, inclusive growth and
of healthcare infra-
lenge. However, don- structure investments perspectives the economic lens prosperity for all Ni-
ning the lens of game and the cost-effec- provides insights gerians.

NEWS
NCS To Partner AfCFTA To Enhance Intra-African Trade
BY NGOZI OLIBE designed to enhance trade within Af- delivered to ports of final destination, In response, AfCFTA national co- offering guidance on AfCFTA proto-
rica by establishing a maritime ship- thus streamlining the trade process.” ordinator Mr. Olusegun Awolowo cols, documentation, and compliance
he Nigerian Shippers’ Council

T (NSC) has unveiled plans to col-

laborate with the African Con-
tinental Free Trade Area (AfCFTA)
ping line among the Joint Develop-
ment Zone (JDZ) countries—Nigeria,
Equatorial Guinea, and Sao Tome and
Principe. This initiative is expected to
The project aims to improve the
frequency of maritime services be-
tween Nigeria and Sao Tome & Prin-
cipe, which will enhance commerce in
expressed his enthusiasm for the col-
laboration, highlighting the project’s
importance for the region. “We are
eager to work with the NSC on this
requirements. He also suggested
intensifying port sensitisation and
awareness campaigns on AfCFTA to
further support traders.
in a bid to bolster intra-African trade significantly reduce cargo movement the Gulf of Guinea. It will also offer initiative,” Awolowo said. “The Sea Acknowledging the NSC’s support
through improved maritime connec- costs and boost maritime and trade ac- efficient sea transport services, pro- Link Project aligns with our goal of during the inauguration of the Guide
tivity. The announcement was made tivities within the JDZ. viding exporters and importers with enhancing Nigeria’s export capabil- Trade Initiative (GTI) under Af-
by Mr. Pius Akutah, NSC Chief Ex- “The Sea Link Project will provide a competitive edge while eliminating ities and maximizing the benefits of CFTA, Awolowo commended their
ecutive Officer, during a courtesy visit cabotage, passenger services, and the need for cargo trans-shipment in AfCFTA.” efforts as instrumental to the event’s
to Mr. Olusegun Awolowo, National goods haulage among JDZ countries,” Europe. This is expected to increase Awolowo proposed additional success. He expressed optimism about
AfCFTA Coordinator, in Abuja on Akutah stated. “Following a success- trade volume and transportation effi- collaborative opportunities, includ- the continued collaboration to achieve
Thursday. ful comprehensive technical and eco- ciency within the sub-region, fostering ing the establishment of an AfCFTA the shared goal of maximising Af-
The partnership will focus on the nomic feasibility study, the project will economic growth and development for desk at major ports. This desk would CFTA’s benefits for Nigeria and en-
Sea Link Project, a strategic initiative ensure duty payment only on goods Nigeria. serve as a resource center for traders, hancing trade efficiency.
MONDAY 19 - SUNDAY 25 AUGUST 2024
19
ENERGY
promoting local content and capac-

Decades Of Investment Apathy Crippling ity building to ensure that Nigerian

companies and professionals play a
leading role in the midstream and
downstream sectors.
Nigeria’s Downstream Oil Industry “We recognise the importance of
developing a skilled workforce that
can drive innovation and maintain
Inadequate and lack of investments in the downstream of the oil and gas the highest standards of safety and
environmental stewardship,” he
sector can be blamed for the incessant petroleum products’ scarcity being stated
experienced across the country, CHIKA IZUORA,writes He commended the Young
Professionals’ Workshop and the
Women Leadership Programme,

O f recent, there have been re-

curring bouts of petroleum
products scarcity, especially
the Premium Motor Spirit (PMS),
also known as Petrol, across the
also underscored the importance of
increasing competition in the refin-
ing space through modular refiner-
ies to further drive down prices.
Despite the progress seen in the
highlighted at the conference,
which he said aligns with the min-
istry’s goals of inclusivity and
leadership development.
He said that it is essential to
country, leading to series of contro- market since the implementation of equip young professionals and fe-
versies and buck-passing between the Petroleum Industry Act, Bioba- male leaders with the knowledge,
the regulatory agencies and petro- ku noted that more incentives and skills, and opportunities to thrive in
leum marketers. a stable regulatory environment are the evolving petroleum landscape.
Lack of investment has led to necessary to make the sector more The collaboration between in-
dearth of infrastructure that has attractive for investors. dustry, academia, and government
further exacerbated the situation While the PIA has laid out rules he notes is crucial for achieving
leading to recurring shortages and and regulations, additional fiscal our collective objectives and fos-
distribution glitch. incentives and market stability tering a culture of continuous im-
Nigeria has been facing dearth of are crucial to ensure investors can provement.
infrastructure to cope with evolv- achieve returns on their invest- At the same conference, experts
ing landscape in the entire energy ments. at panel sessions observed weak
industry. Despite some progress, attracting transportation networks to promote
In the power sector, obsolete in- investors to the downstream sector distribution efficiency in the sector.
frastructure and funding gap has post-PIA implementation has not For instance , the general man-
exacerbated the grid disruption in met initial expectations, indicating ager (GM) Government Joint Ven-
realising efficient energy distribu- Technological advancements, similar approach for the down- the need for further enhancements tures and External Relations of
tion. regulatory frameworks, and stra- stream sector, as obtaining funding to boost investor confidence and Heritage Energy, Sola Adebawo,
Also, in the oil and gas sector tegic partnerships are key enablers from commercial banks is difficult drive sustainable growth. made a strong call for an over-
similar factors have weakened sup- in driving the transformation of the and expensive due to high interest However, despite the shortcom- haul of the country’s petroleum
ply chains especially in the mid midstream and downstream sec- rates. ings the Ministry of Petroleum products transportation strategy to
and downstream sectors. tors. Biobaku suggested that estab- Resources, the federal government further reduce risks and associated
Petroleum has remained an im- Experts of the view that it im- lishing a development institution have demonstrated commitment to costs.
portant part of both the world’s en- portant that the country leverages supported by the government could creating an enabling environment Adebawo, who observed that 98
ergy mix and the global economy. these advancements to enhance unlock investments and drive for investment and innovation in per cent of refined petroleum prod-
It is the keystone of modern energy the profitability and environmen- growth in the downstream sector. the midstream and downstream ucts within Nigeria are moved by
system, and it also helps to drive tal performance of our industry However, he acknowledged the sectors. road transportation said that pattern
the global economy. because by doing so, Nigerian can challenges in expecting the gov- The ministry is obviously and of products conveyance has led to
Petroleum plays an essential role ensure that her petroleum resourc- ernment to solely fund such proj- actively working on policies and high cost per unit volume and safe-
in shaping our lives from fuelling es are utilised most efficiently and ects, indicating that a collaborative initiatives to attract local and inter- ty concerns.
vehicles and generating electricity sustainably. effort is essential to address the national investments, foster tech- He, therefore, challenged au-
to producing a wide range of ev- However, industry players have funding gaps effectively. nological innovation, and ensure thorities to review the system and
eryday products. noted key challenges faced in at- He pointed out that the down- regulatory compliance. possibly find a solution to this.
The petroleum industry involves tracting funding in the downstream stream sector faces difficulties in One of the ministry’s key focus The GM, made the observation
a wide range of commercial ac- sector which they attributed to attracting funding due to price areas is the development of infra- during a panel session, which he
tivities from the exploration of price issues, subsidies, and ex- issues, subsidies, exchange rate structure to support the efficient moderated, at the NAICE organ-
reserves deep in the ground to the change rate challenges. challenges, and the need for a more transportation, processing, and dis- ised by the Society of Petroleum
sale of the final product to the end They also note the impact of free-market operation. tribution of petroleum products. Engineers (Nigeria council).
customer. refining companies’ operationali- The operationalisation of refin- This includes the expansion The panel, which was titled:
The industry is frequently shown sation on the pump price of petrol ing companies like the Port Har- and modernisation of pipelines, “Unlocking upstream value: de-
in the form of a ‘value chain’, and the need for increased compe- court Refining Company could storage facilities, and refining ca- veloping markets, trade access and
specifically a set of activities per- tition through modular refineries. marginally reduce the pump price pacity to meet both domestic and facilitating partnerships in the mid-
formed sequentially in order to de- Nigeria’s oil and gas sector has of petrol in the medium term. He international demand and is also stream and downstream,” featured
liver a final product, and includes been undergoing discussions on prioritising the adoption of digital seasoned industry professionals.
upstream, midstream and down- how to close funding gaps in the technologies and data analytics to These included Engineer Olu-
stream sectors. downstream oil sector. improve operational efficiency and seyi Afolabi, Principal Consul-
No doubt the midstream and Stakeholders believe that estab- decision-making processes in the tant & Chief Executive Officer,
downstream sectors play critical lishing an energy bank could be a industry. Reservoir & Facilities Solutions
role in the overall value chain of potential solution to facilitate the This position was confirmed Ltd; Babafemi Onasanya, Gener-
the petroleum industry. funding of productive ventures in Establishing an energy by the permanent secretary of the al Manager, Subsurface, Oando
Thus the optimisation of these this sector. petroleum resources ministry, Am- Energy Resources; Dr Goodluck
sectors is not just an option but a Gbenga Biobaku, a Partner at bank could be a bassador Nicholas Agbo Ella, in Enimakpokpo, the Major Strategic
necessity for enhancing efficiency, Gbenga Biobaku and Co, shared his presentation at the 47th Nigeria Accounts, Nigeria & Anglophone
ensuring sustainability, and main- insights on the importance of this
potential solution to Annual International Conference WA GE Venoa; Gbite Falade, MD/
taining our competitive edge in the and Exhibition (NAICE) 2024, in
global market.
initiative and the challenges faced facilitate the funding Lagos.
CEO, Aradel Holdings and Ogbu-
in attracting funding in the down- go Kalu Ukoha, Executive Direc-
Indeed the nation’s petroleum stream sector. of productive ventures The theme for the conference, tor, Distribution Systems, Storage,
industry has long been a corner- Biobaku highlighted the existing “Petroleum Industry Value Chain and Retailing Infrastructure, Nige-
stone of our economy, contributing initiative for the upstream sector,
in this sector Optimization: The Inevitability of rian Midstream and Downstream
significantly to national revenue, where the African Petroleum Pro- Midstream and Downstream De- Petroleum Regulatory Authority
job creation, and industrial growth. ducers Organization is working on velopment,” also provided oppor- (NMDPRA).
However, the evolving energy setting up an energy bank with a $5 tunity for key industry operators to The panellists examined the cru-
landscape presents new challeng- billion fund to support upstream highlight other challenges facing cial role of regulatory frameworks
es and opportunities that require a projects. the industry. in fostering market access within
comprehensive and integrated ap- He emphasised the need for a According to the permanent sec-
proach. retary, the ministry is committed to CONTINUED ON www.nationaleconomy.com
20 MONDAY 19 - SUNDAY 25 AUGUST 2024

STATES AND POLITICS

QUICK NEWS
Expose Children To
Maiduguri Dryport Will Be
Technopreneurial Skills Ready In 6 Months – Governor
For National, Economic BY YUSUF BABALOLA

Development – Expert
BY ROYAL IBEH
The executive director, Young
T he governor of Borno
State, Babagana Zulum,
has said the Jauri Inland
Dry Port located in Maiduguri,
Borno State capital, would be
Global Leadership (YGL) Net- ready in six months.
work, Dr Eugenia Ndukwe, Zulum disclosed this during
said young leaders’ exposure a meeting with the executive
to technopreneurial skills will secretary of the Nigerian Ship-
ensure a stable economy and pers’ Council (NSC), Pius Aku-
contribute to the county’s de- tah, with concessionaire of Jau-
velopment. ri Island Dryport, Migfor Nig.
Ndukwe said this at the Limited and the management
opening of the 2024 Young of Maiduguri Bonded Terminal
Global Leadership Annual Di- Ltd, held at the headquarters of
plomacy, Entrepreneurship the Nigerian Shippers’ Council
and Technopreneurship pro- in Apapa, Lagos.
gramme held on Tuesday in According to the governor, by
Abuja. establishing inland dry ports,
She said that YGL in part- the state would tackle the issue
nership with a consulting of unemployment among its
firm, XEM Ltd. had designed youth.
the programme/bootcamp to “I want to assure you of the
empower the next generation speedy process of establishing
of Nigerian leaders and entre- an inland dry port in Maidugu- L-R: Keynote speaker/managing director, ECLAT, Dr. Wallace Ogufere; group managing director/chief executive officer, Interswitch
preneurs. ri. Establishing the inland dry Group, Mitchell Elegbe; commissioner, Lagos State Ministry of Health, Prof. Akin Abayomi; special adviser, Lagos State Ministry of
“The bootcamp is hosting port in Maiduguri will bring a Health, Dr. Kemi Ogunyemi, and permanent secretary, Lagos State Ministry of Health, Dr. Olusegun Ogboye, during Lagos Smart
talented young people aged lot of opportunities to the gov- Health Information Platform Stakeholders Forum and Media Engagement in Lagos, recently PHOTO BY KOLAWOLE ALIU
8-15, offering them a unique ernment and people of Borno
opportunity to develop criti- State. One employment gener- the economy of the nation will road transportation system is in the need to have this kind of
cal diplomacy, entrepreneur- ation, which would take away grow very well and our gross do- place,” Zulum concluded. critical infrastructure in a place
ship and technology skills,” thousands of young children off mestic product will increase,” he Earlier, in his remarks, the ex- like Maiduguri, Borno State that
she said. the street, is very important,” stressed. ecutive secretary of the Nigerian has a boundary with three coun-
Ndukwe said the bootcamp Zulum stated. Speaking of rail connectivity Shippers’ Council, Pius Akutah, tries within the area.
was necessary in view of the According to him, the plat- to the IDP, Zulum added that, said the importance of Borno “When he said 6 months, I be-
desire of many parents to have form would also enhance the federal government is work- State as a border town to three lieved him, and I knew the work
their children travel abroad cross-border trade and the ing to ensure the rehabilitation countries, can’t be over overem- would be done,” he said.
to study and become global states’s Gross Domestic Product of rail lines. phasised. He said that the transit park
citizens, not being mindful of (GDP). “President Bola Ahmed’s ini- Akutah stated that having area developed in the state has
them having a global mindset. “We are trying to divert our tiatives are in the process of an inland dry port in the state one of the critical infrastruc-
“Entrepreneurship has come attention from mono-econo- rehabilitating all the roads, and would boost international trade tures to service the IDP.
into play because if you look at my, which is oil by investing in thousands of trucks are entering between Nigeria and other coun- The NSC boss stated that the
what is happening especially other opportunities. I think Ni- Maiduguri daily. So, that will not tries under the African Conti- essence of the initiative, which
with fresh graduates, you will geria will be great soon. This is be a problem. The establishment nental Free Trade Area, “which will be a public-private partner-
see that everybody wants to what we are looking for, the re- of the road system will fasttrack Nigeria opened its borders to the ship, is not for the government
work but is working sustain- lationship between our border the process but in the absence whole of Africa into one market. to drive the day-to-day running
able?. countries would be enhanced of rail, an efficient and effective “You cannot overemphasize but for the private sector.
“The easier way for you

US-based NGO Boosts AMACOS Humanitarian

to make it in life today is to the After God Heart Foundation
commercialise your skill and for identifying with us in this
knowledge; when you com- journey seeking the betterment of
mercialise your skill and
knowledge, you attain self Initiatives With N1.5m Grant the society, one person at a time.
This Foundation’s gesture is espe-
satisfaction and financial sus- BY KINGSLEY OKOH the donation is to support AMA- The grant as provided by the NGO cially appreciated given the cur-
tainability. COS Alumni effort to improve the is expected to cover three key areas rent downturn that has become

A
“We started the leadership non-governmental organi- lives of their members and the sur- of the alumni’s initiative, including today’s global economic reality. I
and entrepreneurship pro- zation based in Indiana, the rounding community. grant of N200,000 each for three must confess that this grant will
gramme to see how to help the United States, After God According to the co-founder of members of the Association to go a long way in helping to ame-
young ones take advantage Heart Inc., has extended a N1.5 After God’s Heart, “When you es- expand their business operations; liorate the hardship being experi-
of the opportunities that are million grant to boost the human- tablish a system, sustainability N500,000 is designated to be add- enced by many families. We pray
available in the world of tech- itarian efforts of the Alumni of follows. “We are proud to support ed to the Association’s MSMEs that the good Lord will continue
nology. Life is not just about Mass Communication Students the efforts of the AMACOS 94-99 Seed Loan initiative and N400,000 to replenish the purse of your out-
socialising. (AMACOS) of the Moshood Abi- group. Their structure is not only as support for final year secondary reach.”
“We prepare our young lead- ola Polytechnic (MAPOLY), Ojere distinctive but also a model that students as examinations’ support He assured the NGO that the
ers to be the agents of global Abeokuta. can be emulated by similar groups fees. association will deploy the grant
impact and national develop- The grant, according to the globally. Their heart for communi- Receiving the grant, the AMA- strictly for what it was intended
ment. NGO, is a demonstration of its ty outreach stems from an unwav- COS Alumni president, Moruff for. “AMACOS has in place a strong
“We have to teach them how alignment with the noble aspira- ering commitment to each other’s Adenekan, thanked the After corporate governance stance which
to be responsible and also be tion of the alumni association to well-being, which is a living testa- God Heart Foundation for their will ensure that every agreement
contributory citizens in their scale up their capacity building, ment to the potency of an inten- thoughtfulness and magnanimity as spelt out by the terms of the
immediate community by first economic empowerment and edu- tionally nurtured community. This which led them to identify with partnership between it and the
identifying their weaknesses cation programmes. aligns perfectly with the mission of the Alumni association and for foundation will be adhered to. So,
and their strengths, and then In the letter of the award to the ‘After God’s Heart’ to address the making the donation. we assure you of our strong com-
harnessing the knowledge alumni association, the co-found- vast ocean of needs worldwide. It’s “On behalf of the Alumni of mitment to the disbursement of
into something useful,” Nduk- er/president of the benefactor or- an honor to collaborate with such Mass Communication Students of the various sums as communicated
we said. ganisation, Mrs. M. Olawale, said an organisation,” Olawale affirmed. MAPOLY, I commend and thank and agreed in principle.”
MONDAY 19 - SUNDAY 25 AUGUST 2024
21
FEATURE
cy, we will have an alternative pro-
The Imperative For An Indigenous fessional second opinion.
“When challenged, the facts can
be brought to bear, and I think
Credit Rating Agency In Africa the AfDB should lead by organis-
ing stakeholders to determine the
modalities.

I n the ever-evolving landscape

of global finance, Africa stands
at a crucial juncture with its
burgeoning economies, industries,
and a young, dynamic workforce.
“Such a stakeholder meeting is
crucial to build credibility that will
reflect the ratings given to African
nations,’’ the media quoted Adam
as saying.
The continent holds immense According to a United Nations
potential, yet, in spite of these Economic Commission for Afri-
promising indicators, Africa still ca (ECA) report, in the first half
grapples with a significant chal- of 2023, the top rating agencies
lenge one of which is the absence issued 13 negative decisions to
of a robust credit agency tailored 11 African countries, including
to its unique economic landscape. downgrades and negative outlook
Credit rating is an evaluation assessments.
of the credit risk of a prospective The report stated, “These devel-
debtor, predicting their ability to opments have reversed the opti-
pay back the debt, and an implic- mism among investors on the in-
it forecast of the likelihood of the ternational financial markets that
debtor defaulting. African countries are recovering
Credit rating represents an eval- from the devastating COVID-19
uation from a credit rating agency economic shocks.”
of the qualitative and quantitative To address these credit rating is-
information for the prospective sues, the ECA and the African Peer
debtor, including information pro- Review Mechanism (APRM) host-
vided by the prospective debtor ed a workshop in Accra from July
and other non-public information Adesina 9 to July 12.
obtained by the credit rating agen- although the continent needed its nity of nations we must accelerate considering mineral extraction, The event brought together
cy’s analysts. own rating institution, it was not structural transformation and even in areas of active conflict. stakeholders and major credit rat-
African economies, both emerg- intended to replace the global rat- finance its implementation. This President Nana Akufo-Addo of ing agencies, including S&P Global
ing and established, face hurdles ing agencies. is the key to unlocking Africa’s de- Ghana expressed similar senti- and Moody’s, to discuss the credit
when it comes to accessing credit “What the Heads of States are velopment opportunities.” ments while addressing the 35th rating methodologies.
on favorable terms. saying is that saying is that they Addressing participants at the Africa Union summit in Addis The workshop aimed to provide
Traditional credit rating agen- want a counterpart institution 2024 AfDB meeting in Kenya, Ababa, Ethiopia. a comprehensive understanding
cies, predominantly based in the that understands the conditions President William Ruto also called He said, “We need to guard of the factors that influence these
West, often lack the level of un- in the continent better. on the AfDB to establish an Afri- against the continuing consequen- ratings and to identify actionable
derstanding required to accurately “There is need for reform in the can Credit Agency and conduct a tial stranglehold of rating agen- steps that African countries could
assess African businesses and sov- global rating system. The global comprehensive review of African cies, which has affected the cost take to enhance their creditwor-
ereign entities. system has to change. We need to states’ Gross Domestic Product and access to capital markets for thiness.
Consequently, this knowledge create a fair response that rates (GDP) to reflect their true eco- African countries.” “By bringing together diverse
gap perpetuates a cycle of limited African countries properly and nomic status. Experts argue that the problem stakeholders we can foster a deep-
access to affordable credit, hinder- with equity. Ruto disclosed how perceptions with African debt is not just the er understanding of credit rating
ing the continent’s growth pros- “Africa is not asking for a pass, had impacted Kenya’s credit rat- interest that is paid on them, but methodologies.
pects. but there needs to be a fair process ing on Eurobond issuance. also the tenure of the loans as re- “We work collaboratively to im-
In the intricate space of global fi- that rates African countries prop- According to him, countries on payment periods tend to be short- prove the financial stability and
nance, Africa’s economic potential erly. It is about fairness, it is about the continent borrow from in- er than for elsewhere around the economic prospects of African na-
shines brightly, yet, in spite the equity, it is about making sure that ternational markets at rates far world. tions,” Sonia Essobmadje, Chief of
continent’s vast opportunities; both sovereign and non-sovereign above those paid by the rest of Mr Jeffrey Sachs, an American Section on Innovative Finance at
its journey to prosperity faces a are rated properly,” he said. the world, often up to eight to 10 economist, academic and pub- ECA said.
formidable obstacle, which is the Similarly, while speaking at the times more. lic policy analyst, said long-term McBride Nkhalamba, Acting
absence of a credible, indigenous Chatham House in London, Ade- He said these rates were said to development cannot be based on Director, Governance and Spe-
credit rating agency. sina highlighted how Africa was factor in an arbitrary risk profile short-term loans. cialised Reporting at APRM, high-
Stakeholders, experts, partners unjustly perceived, as being riskier that is notably not applied when “Thus, the loans granted to Af- lighted the significance of the ini-
and shareholders on the conti- than other regions, in spite evi- rica should have at least a 25-year tiative.
nent have strongly advocated the dence to the contrary. term, or longer. Short-term bor- Nkhalamba said that consisten-
creation of an Afrocentric credit He said over the past five years, rowing is dangerous for long-term cy in policy communication and
rating agency, designed to better the AfDB had facilitated invest- development,” Sachs said. transparent reporting were im-
understand and fairly assess the ments exceeding 180 billion dol- For Dr Mohammed Adam, Gha- perative in fostering investor con-
continent’s conditions. lars in Africa underscoring the na’s finance minister, establishing fidence and mitigating potential
Dr Akinwumi Adesina, Presi- continent’s immense potential for an African sovereign credit rating rating downgrades.
dent, African Development Bank growth and development. Countries on the agency would ensure a balanced, Amb. Albert Muchanga, African
(AfDB), has been an ardent advo- The AfDB boss said, “Africa is continent borrow accurate, and comprehensive as- Union (AU) Commissioner for
cate for rectifying the disparity in not any riskier than any other part sessment of credit risk. Economic Development, Trade,
rating, emphasising the critical of the world. Perception is not re- from international He said it would therefore facil- Tourism, Industry and Minerals,
need for Africa to have its own ality. markets at rates itate access to competitive capital says the continent was on track to
credit-rating institution. “Over the past five years, we and foster domestic financial mar- establishing a credit rating agency
Adesina contends that major in- have brought investors to Africa far above those ket development across the conti- by 2025.
ternational credit rating agencies and mobilised well over 180 bil- paid by the rest of nent. According to Muchanga, the
often paint an inaccurate picture lion dollars in investment interest. The minister decried what he project was at the operationali-
of African risk, unfairly penalising This tells you the opportunities the world, often described as unfair assessments of sation stage, adding that APRM,
the continent. are limitless. up to eight to 10 developing countries by interna- AfDB, African Export-Import
Speaking at the 2024 AfDB An- “For Africa to rise and shine tional rating agencies. Bank and AU Commission are in-
nual Meeting in Nairobi, he said brightly among the global commu- times more “If we have our own rating agen- volved in the task. NAN
22 MONDAY 19 - SUNDAY 25 AUGUST 2024

AGRIBUSINESS

1 Year After: X-raying FG’s Efforts

The minister said that he min-
istry had also undertook signifi-
cant measures to curb persistent
food inflation by distributing
improved seeds, seedlings, ag-

In Tackling Food, Nutrition Crisis rochemicals, and equipment to

farmers, to enhance food pro-
duction capabilities.
The Central Bank of Nigeria’s
contribution of 2.15 million
bags of fertiliser, distributed
free of charge to farmers further
bolstered this effort.
During this period, the live-
stock sector also saw the pro-
curement and distribution of
over 14 million doses of vaccines
and the establishment of animal
health centers to bolster animal
health and productivity.
The ministry’s response to
ginger blight epidemic with the
provision of N1.6 billion to sup-
port affected ginger farmers in
Kaduna and Plateau states and
other pests included aerial con-
trol operations and the distribu-
tion of fertilizers and pesticides
is another set of feat achieved.
There is also an ongoing part-
nership with John Deere and
Tata Africa to supply tractors
and combine harvesters which
has raised hope of revolutionis-
ing agricultural mechanisation.
The development of 23 im-
proved crop varieties and the
promotion of e-extension ser-
vices have been pivotal in ad-
vancing agricultural research
and knowledge dissemination,
among others achievements in
BY ADEGWU JOHN the past one year.
in their endeavours while lever- The minister assured that,
aging the federal government’s

O ver the past one year, “Consistent with the Renewed

policies, programmes and part- Hope Agenda, we are building
the federal government nerships to foster sustainable
efforts to address the partnership and collaboration
solutions. to drive more effective imple-
current challenges of food and In spite of these challenges,
nutrition security have met with mentation of our intervention
the Renewed Hope Agenda of projects, to foster public trust
recurring factors such as climate the current administration of
variability and extremes, con- and achieve transformative out-
President Bola Tinubu has be- comes and collaborating with
flicts between farmers and herd- come the cornerstone of the
ers, banditry, inflation and im- States in the area of registration
ministry of agriculture and food of farmers and implementation
pact of the fuel subsidy removal security policy focus, anchored
among others. of interventions”.
on the National Agricultural While Nigerians looks to the
These driven forces have con- Technology and Innovation Pol-
tinue to push many Nigerians future of a food and nutrition
icy (NATIP) 2022-2027, with secured nation, the ministry of
into food crisis and nutrition goals to ensure food and nutri-
vulnerability with many not be- agriculture and food security
tion security, while promoting promised to consolidate these
ing able to afford food. market access, competitiveness,
Food and nutrition insecurity achievements to further devel-
innovation and employment achievements in the agricultural op the agro-industrial sector,
is not just a Nigeria’s problem. generation. sector during the sectoral update
At Africa and global levels, these and enhance the nation’s food
First came the state of emer- to mark the first anniversary of export potential while creating
concerns as well, are seemed gency on food security declared the President in office, Kyari
progressing towards reversing jobs.
by the President, followed by disclosed that the ministry has It’s also believed that the past
the strides of achieving the vi- several intervention policies by supported 107,429 wheat farm-
sion of zero hunger by 2030 in year has laid a good foundation
the ministry to arrest the grim ers to cultivate 118,657 hectares for a sustainable and prosperous
line with the Sustainable Devel- trends of food and nutrition in- of wheat across 15 states.
opment Goals - 2. agricultural future with a new
While the federal government
security faced by Nigerians. The past one The initiative according to the chapter in Nigeria’s journey to-
In October last year, the min- minister has yielded an impres- wards self-sufficiency and eco-
keep developing and implement- ister of agriculture and food se- year has been a sive output of 474,628 metric
ing policies that will address nomic vitality through agricul-
curity, Abubakar Kyari unveiled testament to the tonnes while injecting an esti- ture.
these challenges, the burden to strategic roadmap to drive the mated value of N309 billion back
provide food, nutrition, security However, while federal initia-
food security agenda of the fed- government’s into the economy. tives provide a framework for
and supporting farmers to feed eral government with focal areas This has also been accompa-
over 200 million population commitment to national food and nutrition se-
that hinged on integration, sus- nied by a buffer against food curity, state governments have
seems overwhelming. tainability and resilience to Ni- insecurity, where the federal
This development, no doubt, geria’s agricultural sector chal-
these goals with government released and dis-
a critical role in tailoring and
amplified the call for a review the launch of dry implementing these strategies
lenges. tributed 42,000 metric tonnes at the local level. As custodians
of the country’s collaboration The past one year has been a of assorted food commodities
efforts to tackle the challenges testament to the government’s season farming to vulnerable households across
of lands in Nigeria, state govern-
with emphasis on the roles of in- ments can leverage the Land Use
commitment to these goals with being a game- the country, including procure- Act of 1978 to significantly im-
dividual Nigerians, private sec- the launch of dry season farm- ment and distribution of milled
tor players, investors, state and changer pact food and nutrition security
ing being a game-changer. rice to all states and FCT to through localised interventions
local governments to contribute While taking stock of the dampen escalating food prices. and collaborations.
MONDAY 19 - SUNDAY 25 AUGUST 2024
23

Spor sEconomy By Dapo Sotuminu

Chelsea Frustrate Chalobah

To Force Him Out

Danilo’s Agent Ahead Of Possible

Manchester United £34 Million Move
W ith three defensive re- recalcitrance in terms of a €70 “Danilo’s staff has received Chelsea Fc have ordered his time away from the
inforcements and a million transfer fee has left the inquiries from Milan and Man- Trevoh Chalobah to keep first-team squad in the
striker nailed down, Red Devils having to look else- chester United. away from accessing first- academy building until
Manchester United are turning where for a holding midfielder. “There is interest, but no pro- team areas as they seek he agrees to a move away
their attention to the middle of The club has been linked with posal has been formalized so to force him out of the from the club.
the park in the remainder of this Monaco’s Youssouf Fofana and far.” club before deadline day “With his time at Chel-
transfer window. Burnley’s Sander Berge in recent It is an interesting twist in the as he has been targetted sea apparently coming
It looked certain that one ac- weeks, among others, but now saga as Milan are also reportedly by Manchester United. to a close, he is under-
quisition in that area would be there is a new name to be add- competing with United for Fofa- Chalobah is a player stood to have acted pro-
Paris Saint-Germain’s Manuel ed to the shortlist - Nottingham na. Clearly both clubs are fishing United have been repeat- fessionally and accepted
Ugarte, but the Parisian club’s Forest’s Brazilian ace, Danilo. in the same waters. edly linked to amidst Sir the club’s orders, even
Jim Ratcliffe and INEOS’ though they have sur-
desire to bolster Erik ten prised some of his team-
British Billionaire Ratcliffe Says the capital in 2023-24, up from
112 on the year before, while
Hag’s backline options.
Earlier this summer, it
mates.”
It’s understood that

London Is ‘Not Safe’

there was also a surge in re- was claimed that the Red Enzo Maresca’s side want
corded knife crime offences. Devils were considering players who are not part
The 15,016 recorded last a £25 million swoop for of their plans to focus on
year was the second highest on the Chelsea star. their future plans rather
record and up by about a fifth It was subsequently re- than being given “a false
on the 12,786 seen the year be- layed that United were impression of their pros-
fore. keen on selling misfiring pects.”
Sir Jim said leaders had pre- winger Antony and then It has been revealed
sided over decreasing levels of funnelling the proceeds that Aston Villa and
public safety as well as a decline from his sale towards ac- Crystal Palace are also
in health and prisons. quiring Chalobah. eyeing Chalobah, who
“We don’t have enough pris- The 25-year-old was turned down a transfer
on space. I mean, this didn’t excluded from Chelsea’s to Nottingham Forest
just happen. We’ve been talking squad for their pre-sea- last summer.
about the prisons being over- son tour to the USA as he However, it’s unlikely
crowded for ten years,” he said. was told to stay home. that United will make a
The billionaire also despaired The media has now re- move for Chalobah, in
over Britain’s political leaders vealed that the Blues the current window. This
focus on five-year election cy- have taken another dras- is primarily because the
cles, which mean the country tic step to part ways with 20-time English champi-
London is “not safe” anymore, third richest man in the UK. “lurch from one crisis to anoth- the England internation- ons are on the brink of
British billionaire and owner of He said he has “to be wary” er.” al, which could massively finalising a switch to Old
Manchester United Sir Jim Rat- of his safety in London and He praised Sir Keir Starmer, help United if they re- Trafford for Bayern Mu-
cliffe has said. last year saw someone stabbed the Prime Minister, and thinks main eager to add him to nich’s Matthijs de Ligt.
The billionaire claimed that to death on CCTV outside his he’ll “do a very sensible job”, their ranks this summer. Some days ago, the re-
Britain’s cities were not as safe office in Knightsbridge over a but doubled down on criticism According to The Tele- liable David Ornstein
as they used to be and revealed Rolex watch. of Labour’s ban on North Sea graph, “Trevoh Chalobah broke the news that
he no longer wears a watch in “I can’t wear a watch in Lon- oil and gas exploration. has been barred from us- United had reached an
the capital for fear of being don, and I just need to be a bit He said it, along with the ing Chelsea’s first-team agreement with Bayern
mugged. wary, a bit careful,” he said. shutdown of old nuclear pow- facilities as the club ne- for De Ligt. Fabrizio Ro-
Sir Jim said a rise in robbery The fatal mugging occurred er stations, would exacerbate gotiates his exit. The mano confirmed as much
and shoplifting rates was part on Brompton Road, near Hyde a looming energy shortage, newspaper revealed that just moments later.
of a wider failure by authori- Park, and was captured by In- despite standing to profit from other than training with If De Ligt’s move to
ties to provide basic public ser- eos’ security footage. the moves, with higher prices Chelsea’s development United gets over the line,
vices, including ensuring there “He died in a pool of blood for the public leading to a slow- squad, Chalobah has he will be the club’s sec-
is enough prison space to house because somebody tried to take ing of growth in the economy. been kept away from the ond centre-back signing
criminals. his Rolex and he resisted,” he “Americans pay a third of first-team building at the after Leny Yoro from
The 71-year-old owner of said. “About a year ago we had what we do for gas, and a fifth club’s Cobham training Lille. With United also
chemical company Ineos and three guys in hoodies, with ma- for electricity,” he said. “That’s base.” in need of midfield rein-
Manchester United football chetes, right outside the office, why their economy is going That means Chalobah, forcements, purchasing
club is worth an estimated opposite Harrods.” gangbusters and ours has who joined Chelsea at the another central defender
£29.6 billion, making him the There were 116 murders in stalled.” age of eight, must spend is not on the table.
 MONDAY 19 - SUNDAY 25,
AUGUST 2024

SPACE FOR SALE

Can Academic Research Address

GUEST
COLUMN Myriads Of Economic Challenges?
and promotion of creative research
culture amongst all sizes of business-
By es, policymakers, and government es-
tablishments. It is also the wish of the
TIMI OLUBIYI, PH.D. author that universities focus on re-
al-world problem solving and research.
Because research contributes to the
development of human capital by pro-
viding education, training, and skills
to researchers and workers in a variety
of disciplines and sectors. Therefore,

M ass protests are currently on- governments need to fund research to

going nationwide and many support national priorities and tackle
protesters continue to march societal challenges, as well as because
in major cities and towns. The tempo research can incite technological ad-
keeps increasing due to demand for vancement by generating novel knowl-
good governance, cuts in food prices, edge, techniques, and instruments that
petrol costs, naira devaluation, and so can be employed to enhance quality,
on. The headline inflation rate as of efficiency, and production within the
June 2024 stands at 34.29 per cent, economy. Research can also promote
according to the National Bureau of innovation by facilitating the develop-
Statistics (NBS), which is a 28-year ment, dissemination, and implemen-
high. The Naira, too, has depreciated to tation of new ideas, products, services,
around 80 per cent against the dollar with accountability, genuine inten- need to improve the level of effort and and processes that satisfy the require-
since mid-2023 according to records. tions, and deep research commitment commitment in the country to deliver ments and desires of society and con-
The agitation of the populace is largely conducted internally and externally, benefits to society through research. sumers. This was evident during the
driven by this inflationary pressure and it can help dig up many recommenda- Though research should be a contin- COVID pandemic, as research rapidly
the Naira devaluation, which continues tions, life modules, and solutions that uous process for any organisation or delivered new vaccines and treatments.
to make more people poorer by the can help the country and many failing country that intends to stay ahead of So, it suffices to say that medical re-
day. Similarly, this protest may force and hailing businesses. But currently, the curve in a world that is constant- search contributes to the development
businesses, commercial centres, banks, academic research is underfunded and ly evolving, the consequence of lack of of new treatments and cures for diseas-
markets, academic institutions, and is increasingly a concern for the fu- it is what is clearly seen around. In a es. Additionally, research fuels innova-
offices to reduce or close operations in ture of the nation. Because academic business world where artificial intel- tion and knowledge creation and can
the meantime for fears of demonstra- research can help address most of the ligence, technological adoption, and contribute to the resolution of many
tion degenerating. Therefore, many pressing economic, social, and business globalisation are taking over, it is im- issues that the country is currently fac-
businesses, private and public, will suf- issues we have around us, creative aca- portant to build a culture of creative ing.
fer disruptions to operations and ser- demic research can enable enterprises research orientation for businesses and In conclusion, clearly, academic re-
vice delivery, which in turn will affect and the country to better comprehend research that improves quality of life search can inform government poli-
going concern and profitability at this these issues and also citizen concerns for the people. Research can be applied cy decisions and directions because,
time. This is increasingly of concern and consumer trends and preferences across diverse fields and offers numer- through data analysis and research
to the author because there is a place better, thereby facilitating improved ous advantages to the country and findings, policymakers can identify
for creativity in academic research in efforts, well-being, quality of life, and companies. While the author agreed key challenges and offer recommenda-
all of these, yet this inconsideration is increased revenue generation for busi- that research funds have to be allocated tions. It can also enable governments
costing us all. Most successful coun- nesses. But how many states and busi- carefully, research is so important and to make strategic choices that promote
tries and businesses of the modern nesses within the country conduct cre- can result in benefits for our health, the well-being of their citizens and
day strive to continually comprehend ative research? Whether a start-up or quality of life, and business manage- economic development. Consequent-
the process of integrating research in- an established business, local, state, or ment. For many decades, policymakers ly, to maximise the impact of research
formation, insights, and data to for- federal government research is signifi- have been confronted with the causes on economic development, it is criti-
mulate strategies and make decisions cant and can facilitate innovation that of the protest, particularly high infla- cal to invest in research and develop-
for citizens and customers. And there may provide distinctive, high-quality tion, increased complexities and busi- ment (R&D), support research infra-
is seamless integration of the academ- products or services that can be easi- ness failures, food insecurity, inequali- structure, subject matter experts, and
ic research outputs into the economy, ly differentiated from competitors. If ty, and the emigration of well-educated institutions, and foster collaboration
businesses, and economic future plans. harnessed very well by businesses, new and highly skilled emigration (Japa), and coordination among researchers,
But this is not the case; research works, technologies, insights, and information out-of-school children, insurgencies, industry, and government. By invest-
academic articles, and thesis recom- can be used to produce future products and high youth unemployment in the ing in research or research experts, the
mendations are not well defined to and services through creative research country. Yet research can play a fun- nation can unlock and harness its eco-
help socio-economic issues in the coun- activities. Sadly, in most of our uni- damental role in the above-mentioned nomic potential, build a more prosper-
try. All the agitations of the protest- versities, we only write research, and and in economic development. ous future, and protect its position in
ers are genuine, but the reality is that we are not really doing research. We The author advances the awareness the global space. Good Luck!
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