“It is the position of this court that the federation can pay local governments allocations directly to the local governments or through the states. In this case, since paying them through the states has not worked, justice demands that local governments allocations from the federation account should henceforth be paid directly to the local governments,” – Justice Emmanuel Agim on Thursday, July 11, 2024.

Nigeria’s federation rests on a tripod: federal, state and local governments. However, over the years, local governments have operated as a mere appendage of the state government. By virtue of Section 162 (6) of the 1999 Constitution that created a joint state/ local government account, state governors spend money due to local government on their behalf. They award contracts on behalf of LGs in their states and make any other deductions they deem fit. Local government administration has been left comatose as workers of LGs are owed a backlog of salaries, sometimes up to a year. Primary education, primary health centres and Trunk ‘C’ roads, which are supposed to be serviced and maintained by local governments are abandoned. Workers in local governments have gone on routine strikes.

While the 768 local governments and the six area councils recognised by the constitution are gasping for breath from the chuck hold of governors, some of the governors went ahead to create what they called Local Council Development Areas. Lagos alone has 37 of them in addition to the 20 constitutionally recognised LGs. What many governors do is simply redistribute the federation allocations paid into the joint state and local government accounts. Thus, what is not sufficient to effectively run the constitutionally recognised LGs is further reduced to fund the LCDAs. Meanwhile, most of the functions of the local governments listed in the Fourth Schedule of the 1999 Constitution have been taken over by the state government.

It doesn’t end there; State Independent Electoral Commissions are created by section 197 of the constitution. However, they lack both administrative and financial autonomy. That’s part of the reason they kowtow to the whims and caprices of the state governors on who should win at the local government elections. Had it been that SIECs also enjoy financial and administrative autonomy which the Independent National Electoral Commission has been enjoying since the constitutional alteration of 2010, the story of badly conducted LGA polls could have been different. As has been witnessed across many states, new governors routinely dissolve SIEC boards put in place by their predecessors and reconstitute them with their own loyalists. Supreme Court has ruled these state governors out of order in many of its judgments but ‘none so deaf as those who will not hear.’

Section 7 (1) of the 1999 Constitution says, “The system of local government by democratically elected local government councils is under this constitution guaranteed; and accordingly the government of every state shall subject to section 8 of the constitution, ensure their existence under a law which provides for the establishment, structure, composition, finance and functions of such councils.”  There is no gainsaying that this constitutional provision is observed in breach. According to The Guardian newspaper of Monday, July 15, 2024, 21 states have caretaker committees running the affairs of their local governments. Supreme Court in many of its judgment has said this is unconstitutional, null and void but the governors continue to ignore the warnings and orders of the apex court. That is how deep the culture of impunity has sunk in Nigeria.

In 2019, under former President Muhammadu Buhari, the Nigerian Financial Intelligence Unit issued a regulation, effective from June 1, 2019, which bans transactions on State and Local Governments Joint Accounts. Funds were sent directly to the accounts of the local governments. It also limits cash withdrawals from local governments accounts to a maximum amount of N500,000 per day with penalties for banks that fail to comply. The Nigerian governors under the aegis of the Nigerian Governors’ Forum kicked against this regulation and the NFIU eventually capitulated.

The status quo was maintained until May 2024 when the Attorney-General of the Federation, Lateef Fagbemi (SAN), filed suit marked SC/CV/343/2024 at the Supreme Court to strengthen the autonomy of the local government areas as guaranteed by the constitution. It sought to prevent state governors from unilaterally dissolving democratically elected local government councils and establishing caretaker committees, actions that violate constitutional provisions. The AGF argued that the constitution mandates a democratically elected local government system and does not allow alternative governance structures.

The suit also prayed that the funds from the Federation Account be channelled directly to local governments, bypassing the allegedly unlawful joint accounts managed by state governors. The Federal Government also sought an injunction to stop governors and their agents from receiving or spending local government funds without a democratically elected local government system in place. It contended that the governors’ failure to establish such a system constitutes a deliberate subversion of the 1999 Constitution. The Supreme Court heard parties to the case on June 13, with the state governments, through their respective attorneys-general, opposing the suit.

That was the prelude to the Supreme Court judgment of last Thursday, July 11, 2024, which has now affirmed the financial autonomy of Nigeria’s 774 local governments. In the unanimous judgment of its seven-member panel, the Supreme Court upheld the suit brought by the federal government to strengthen the independence of local governments in the country. A member of the panel, Emmanuel Agim, who delivered the court’s lead judgment, held that the local governments across the country should henceforth receive their allocations directly from the Accountant-General of the Federation. He ruled that it is illegal and unconstitutional for governors to receive and withhold funds allocated to local government areas in their states.

He noted that ordinarily, the constitution permits the Federal Government to pay local government allocations directly to them or through the state governments. However, he said, “Demand for justice requires a progressive interpretation of the law.” He then ordered that, “The amount standing to the credit of local government councils must be paid by the federation to the local government councils and not by any other person or body.” He added, “An order of injunction is hereby granted restraining the defendants from collecting funds belonging to the local government councils when no democratically elected local government councils are in place. An order that henceforth no state government should be paid monies standing to the credit of the local government councils. An order for immediate enforcement and compliance with these orders by the state governments and successive governments henceforth.”

This decision which has been welcomed by well-meaning Nigerians is laudable but not far-reaching enough to guarantee total independence to the LGs. This is because the credibility and quality of elections into local government have to be equally sorted out. Also, the Secretary of Local Government and other key administrative staff of the LGs are appointees of the state government. In essence, governors can still control LG funds by proxy. The other point is that the state Houses of Assembly which exercise oversight on local governments are still strongly tied to the apron strings of their respective governors and could be used to witch-hunt any LG chairman or councillor who fails to do the bidding of the state governors.

Apart from the overbearing attitude of the governors, there are powerful traditional rulers and godfathers operating in the LGs who can still make life miserable for any chairman or councillor who refuses to do their bidding. Some of these elected political office holders at the LG may actually be made to swear an oath of allegiance and loyalty to the godfathers in shrines in order to coerce them to do the bidding of these powerful individuals. The NFIU and anti-corruption agencies like the ICPC and EFCC must also henceforth beam their searchlights on local government chairmen and councillors to ensure that there is proper accountability of the LG funds. Lastly, there is a need for a constitutional amendment to streamline the Supreme Court decision with the provisions on local government administration as stipulated in the 1999 Constitution.

Dear African compatriots, we’re poor because our cousins in power have betrayed us. They own the tools for our development but they misuse their interests. They confine themselves in comfortable vehicles and forget about the ordinary woman who has to till her mall plot to raise food for her children. The response to the protests and backlash from Kenya’s young people (Gen-Z), has the potential to reshape the way power works in Kenya.

Sadly, the authorities increase taxes to be paid by the poor, and they are happy about it because they don’t feel the pinch, at the end of the day, a huge allowance is waiting for them. As if not enough, they exempt themselves from such taxes and go on to make laws and policies that only favor them and their masters. This is the sad reality intertwined with hopelessness.

Additionally, many other factors such as diseases, wars, corruption, and embezzlement have played a significant role in African underdevelopment. Furthermore, external factors like globalization, slave trade, and colonialism were found to be contributing factors to African underdevelopment. Therefore, as long as we still have them in power, Africa shall continue to dwell in multidimensional poverty. 

For emphasis, the average GDP of Africa is the lowest amongst the seven continents (Africa, North America, South America, Antarctica, Australia, Asia, and Europe) at $9,700 (2021). In 2022, the Gross Domestic Product (GDP) per capita in Africa reached 2,150.6 U.S. dollars, the highest value since 2015.

Furthermore, in 2014, the value per Capita was higher, at 2,316 U.S. dollars. As of 2023, the GDP of Africa was estimated at roughly 3.1 trillion U.S. dollars. Seychelles had the largest Gross Domestic Product (GDP) per capita in Africa as of 2024. The value amounted to 21.87 thousand U.S. dollars. Mauritius followed with around 13 thousand U.S. dollars, whereas Gabon registered 9.31 thousand U.S. dollars. GDP per capita is calculated by dividing a country’s GDP by its population, meaning that some of the largest economies are not ranked within the leading ten.

Sadly, things have only gone from bad to worse with liberation and independence. While most of what we have to deal with today is the aftermath of colonialism, bashing the long-gone colonialists for everything is shirking leadership responsibility. Pan-Africanist and human rights activist, P L O Lumumba, opined that the deficit of trust in governance in many African countries is impeding democracy and development on the continent.

Characteristically, the former director of the defunct Kenya Anti-corruption Commission (KACC) pointed out that freedom will not be given to Africa on a silver platter, but that the continent must stand up and take responsibility for itself. Lumumba remarked as follows:

“We must pray and fast but it will not happen, because the last time I checked even those of you who are believers – when Abraham was taken from the Ur of the Chaldeans and given Canaan, it was not on a silver platter. He had to fight the Canaanites; he had to fight the Philistines.”

Africa will always be poor and is bound to fail further until the attitude of people changes. Many factors contribute to the underdevelopment of certain parts of Africa. Some of these include historical factors such as colonialism, which disrupted traditional economic and social structures, and the legacy of the slave trade. Other factors include poor leadership/governance, corruption, profligacy, recklessness, conflict, and insufficient investment in education and infrastructure.

Following the above reasons “Why African Countries Are Poor And Underdeveloped” I opined, that, Africans have failed over time to develop their intellectual and cultural capacity (not as fast as the whites at least), and largely due to a deep imbibed (almost on a DNA-level) satisfaction with mediocrity which stemmed from environmental advantages (not even disadvantages) millions of years ago in the earliest stages of human development and migration when the first hominids started to migrate out of Africa. 

Unfortunately, while Europe was meandering through the Age of Enlightenment, for example, and celebrating groundbreaking discoveries in science and technology, most of Africa was bottled up in comfort zones of small organized farming and fishing territories with little interest in developing beyond satisfying their basic needs.

In conclusion, allow me to adopt the position of Paul Kagame, a Rwandan politician and former military officer who has been the President of Rwanda since 2000. President Kagame profoundly posited: “I will rather argue, that we need to mobilize the right mindsets, rather than more funding, after all, in Africa, we have everything we need, in terms of whatever is lacking, we have the means to acquire, and yet we remain mentally married to the idea that nothing can get moving without external finance. We are even begging for things we already have.”

As the Joint Admissions and Matriculation Board (JAMB) convenes its crucial policy meeting today (Thursday), prospective students across Nigeria have anticipated the decisions that will shape their academic futures for the 2024 admissions cycle.

The JAMB gathering is set to hold significant weight, influencing admission criteria, eligibility requirements, and procedural guidelines for universities nationwide.

Amidst the policy meeting’s deliberations, students and parents are keenly focused on potential changes that could impact their admission prospects.

Key discussions in the meeting would typically revolve around cut-off marks, the adoption of new examination formats, and adjustments to the Unified Tertiary Matriculation Examination (UTME) syllabus.
According to a statement released by JAMB, the Minister of Education, Prof. Tahir Mamman, will chair the 2024 policy meeting, slated for Thursday, July 18, in Abuja.

The board, in its weekly news bulletin, stated: “This year’s exercise will also feature the National Tertiary Admissions’ Performance-Merit Award, NATAP-M Awards, where the overall winner will receive N500 million, and other consolation winners will share N250 million collectively.

”The policy meeting, usually attended by vice-chancellors of universities, rectors of polytechnics, monotechnics, and innovation enterprise institutes, provosts of colleges of education, and other critical stakeholders, will consider and approve the guidelines for the 2024 admission exercise.

“The meeting will review the performance of the 2023 admissions exercise and the 2024 Unified Tertiary Matriculation Examination, UTME performance of candidates.

“The minimum admission scores, an aggregation of individual institutions’ submissions, will be approved at the meeting.

“This is not a cut-off mark, as often misconstrued, but a minimum score that no institution should go below. The decisions made at the meeting, chaired by the Minister of Education, form the guiding norms for admission and are a collective decision, not solely that of the Joint Admissions and Matriculation Board, JAMB.

“No institution is expected to commence the admission process until after the policy meeting, as the guidelines regulating the year’s admission exercise are determined at the meeting with the endorsement of the Minister of Education.

“The meeting declares the commencement of the year’s admission exercise, setting the grand norms, and any institution that violates these collective norms will face sanctions.”

One of the prospective students, Happiness Chris, expressed her anticipation and hope during today’s JAMB policy meeting.

“I’m eagerly awaiting the decisions today. It’s a pivotal moment for us prospective students aiming for 2024 admissions in tertiary institutions.”

[Leadership]

The management of the Nigeria Immigration Service (NIS) has alerted its commands, especially the ones along the Nigeria – Republic of Niger borders over a possible movement of suspected terrorists who escaped from a Niger prison into the country.

 This was contained in an internal memo from the office of the Deputy Comptroller General, Border Management, to Assistant Comptrollers General in Zone A, B, C, D, E, F, G and all Comptrollers of border posts across the country.

 The memo titled “Mass Prison Break in Niger Republic: Hundreds of International Terror Kingpins Escapes”, alerted the senior officers to the possibility of the escapees trying to cross over to Nigeria to continue their criminal activities.

 “The Nigeria Immigration Service NIS is in receipt of int-information on the subject matter which took place at Koutoukale prison in Niger on Thursday, July 11th, 2024 that led to the escape of hundreds of terrorists, criminals, and drug traffickers.

 “Consequently, all Comptroller of Commands and OCs of Formations along the Niger-Nigeria Border are instructed to be on red alert. With the intent of ensuring that you track all suspicious movement and arrest any such prison escapee and report same to the Service Headquarters.

 “This circular becomes very important as it is suspected that such criminal elements may sneak into Nigeria to join other terrorist gangs to continue to perpetrate mayhem and menace in Nigeria.

 “All officers working along the Nigerian border with Niger are therefore expected to increase their vigilance and partner with other security agencies in tracking these fleeing terrorists,” it said.

 The spokesman for the NIS, Kenneth Udo, who confirmed the memo, said the internal memo was a precautionary message to the formations, adding that “we are on the lookout for them.”

 When asked if any of the fleeing terrorist suspects had been apprehended within the Nigerian borders, Udo said he had no information about it yet, promising to get our reporter updated when there are new developments.

 Authorities in Niger had declared a curfew in the volatile Tillaberi region after several prisoners escaped from the heavily fortified jail known to hold jihadists.

 The incident at Koutoukale prison located about 50 kilometres north-west of the capital, Niamey, took place after two other attempted jailbreaks at the facility – in 2016 and 2019 – were repelled.

 The country’s Ministry of Interior did not specify how many prisoners escaped in the latest jailbreak.

 However, captured Islamist fighters from groups linked to both al-Qaeda and the Islamic State in the region are believed to be among them.

 Meanwhile, the Nigerien Army in its information bulletin has claimed that a large number of the escaping prisoners have been captured and some neutralised by the Nigerien Defense and Security Forces (FDS).

[Dailytrust]

• Military chiefs, NNPCL perfect strategy

• Target is to meet oil production quota

Security chiefs have harmonised their strategies toward clearing the Niger Delta of crude oil thieves, pipeline vandals and other criminal elements fleecing the country.

The decision followed the directive by Commander-in-Chief of the Armed Forces, President Bola Ahmed Tinubu that crude exploration and exploitation in the oil-rich region must be made seamless and lives protected.

The security chiefs, who met with Nigerian National Petroleum Company Limited (NNPCL) CEO Mele Kyari in Abuja yesterday, declared an integrated battle plan under a joint task force. 

They sought the understanding of Niger Delta communities in carrying out the presidential directive.

Speaking to reporters, Chief of Defence Staff Christopher Musa, said: “We know that Nigeria relies so much on what we can produce. We appeal to the communities to have an understanding.

“Yes, we know trust has been a problem, but they can trust us, they can trust the government that we want to do things differently.

“Everyone will be carried along, everyone has a role to play; it is not only for the security agencies alone.

“We need the communities to understand that pipeline vandalism and all the hazards being caused are also affecting them directly and we need to stop that.  

“I can assure you within the next shortest possible time, you will see results.’’

Inspector-General of Police Kayode Egbetokun said the security services and agencies agreed at the meeting that all must come together to solve the problems inhibiting oil exploration and exploitation in the Niger Delta.

Egbetokun said there was a need to take every necessary step to address all the issues.

He assured that results would be visible in the days ahead.

The IGP said: “We accept that we have challenges, but we must all come together to solve them.

“We need the cooperation of all agencies and citizens. We need to take every step that we need to take to address all these issues.

“I assure you that in the days ahead, you are going to see results.

“Whatever is happening in the Southsouth has been ongoing for such a very long time. And we feel it is high time that it is stopped.

“What we are promising Nigerians is that henceforth, the entire Southsouth will be cleared of any acts of vandalism or criminality.

“As we said, the President gave us the mandate to ensure that we secure the entire Southsouth and to enable NNPC and others to carry out their tasks so that we can have improved production.”

Kyari said oil theft and other crimes in the Niger Delta must be curbed for the nation to achieve desired economic stability. 

He said: “We are here to engage with the CDS based on the directive of the President to the CDS to take control of the crisis we are having in the Niger Delta operational area.

“Oil theft and pipeline vandalism have become national issues. The president directed the CDS to contain all issues affecting crude oil operations within the shortest possible time so that we can restore national production to the level he (president)  and the country is expecting.

“To do this, he (CDS) needs the coordination and cooperation of the armed forces and other security agencies like the police, the DIA (Defence Intelligence Agency) and the DSS (Department of State Services).

‘’It is the survival of our country that is at stake today. Without restoring oil and gas production, we cannot have the economic stability that we desire.

“The President is focused on this to deliver value to our country.

“It is impossible to do this without settling the crisis around our operational areas.

“We are already seeing progress; we are seeing substantial value that is being created by the coordination but we are very convinced that a solution is in sight. “

Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, Ogbonnaya Orji, said on Monday that the country lost $ 1.84 billion worth of petroleum products from refineries in nine years.

Abba Yusuf, governor of Kano, has appointed three second-class emirs in the state.

In a statement, Bature Dawakin Tofa, spokesperson of the Kano government, said the appointments of the emirs of Gaya, Karaye and Rano emirates take immediate effect.

Muhammad Maharaz Karaye was appointed Emir of Karaye, Muhammad Isa Umar was appointed Emir of Rano and Aliyu Abdulkadir was named Emir of Gaya.

Abdulkadir was emir of the defunct Gaya emirate. He was one of the emirs deposed after the governor reinstated Muhammadu Sanusi II as Emir of Kano in May.

“While congratulating the newly appointed Emirs, Governor Abba K. Yusuf enjoined them to be custodians of culture, peace and unity of the people in their respective emirates,” the statement reads.

On Tuesday, the Kano governor signed the bill creating three second-class emirates in the state.

THERE are very good vibes coming from the Ministry of Communications, Innovation and Digital Economy. They give a good feel to the ears and even more catchy for the eyes. At a press meet which looked more like a well-worked roadshow to promote a new Bill currently with the National Assembly, titled: ‘National Digital Economy and e-Government Bill’, the Minister, Dr Bosun Tijani, said the passing of the Bill could inject $18.3bn into the nation’s economy. 

That sounds very good and attractive. Introduced as ‘A Bill for an Act to enable the growth of Digital Economy and Digital Governance in Nigeria by improving the certainty of digital transactions, digital service delivery, and matters related’, the 54-page document has objectives, which include: To enhance the use of digital technology to grow Nigeria’s economy; to create an enabling environment for fair competition to promote innovation, growth, and competitiveness for the Nigerian Digital Economy;  to create export-oriented capacities in Nigeria’s digital economy to improve Nigeria’s balance of trade and services; and to mandate, promote and enable the digital transformation of public institutions and Government processes for efficient and effective service delivery.

The Bill seeks to bring clarity and validity to digital transactions, trade and business relationships while setting new standards in government to government communications and government interface with the public.  

It is fair to say that the Bill looks at governance with digital eyes from the psychedelic positioning of the young-at-heart who, perhaps, look at yesterday as a life too far gone and very antiquated. The Bill encourages you to do transactions without ever meeting your trade partners, and everything executed to specifications, with the right signatures electronically appended, and with generous assurances of fidelity in the entire process. It will smoothen  processes and evaporate bureaucracies in government offices. It plans to reset Nigeria with a new engine, a digital one for that matter.

This is not a preview at all. But there are a couple of things which raise something more alarming than the proverbial red flag. I am not a learned fellow, dear friends, but fairly literate to the extent of knowing when a language is becoming violent and superfluous. Look at this. 

In Part XV, under Miscellaneous, which is annotated as ‘Supremacy of National Digital Economy and E-Governance Act’, the Bill which is confusingly called an Act, states as follows: “Notwithstanding the provisions of any other law but subject to the provisions of the Constitution of the Federal Republic of Nigeria, in all matters relating to the digital economy and e-government, the provisions of the Act shall override the provisions of any other Law; and the Regulatory agency shall establish regulations on the use and adoption of new and emerging technologies as it relates to information technology.”

The foregoing two examples will suffice. But here is my gut feeling about the Bill. The Bill puts on the costume of dollars to beguile a nation and a National Assembly that may not see beyond the superficiality of monetary attractions, especially in a country with roaring inflation and troubling food prices. The Bill which is like a child trying to appropriate the responsibilities of a father, holds in absolute contempt other existing Acts irrespective of age. 

Already in existence are the Cybercrimes(Prohibition, Prevention, etc) Act, 2015; Nigerian Communications Act 2003; The National Broadcasting Commission Act Cap N11 Laws of the Federation of Nigeria 2004; National Information Technology Development Agency, NITDA, Act 2007, and, in fact, there is already a very controversial Bill at the National Assembly which seeks to amend the existing NITDA Act. And then, this new one entirely. 

This particular Bill will set up a regulator for the digital space which may be given the rapacious opportunity to swallow up other Acts before it. That may be the only way to accommodate a new regulator in these days that the current administration is trying to trim the size of government. The dollar sign is only a ruse, a smokescreen that will evaporate at the approach of reality. 

But I must also admit the Bill is well written, perhaps too sugar-coated; the lawmakers must strip it of all its excesses and octopi positioning. The Bill should only try to encourage new businesses and opportunities in the digital ecosystem and not cause chaos in already established areas.

Irrespective of promoted advantages and the huge inflow of cash expected to come into the economy, I see a whole lot of contradictions and that troubles me. It seems the minister is on a drive at such a speed that leaves relevant stakeholders behind. 

Asked whether the telecommunications industry was ever consulted as critical stakeholders before the Bill was put in place, a highly placed industry source told this writer that there was never such consultation. “Those in authority are not interested in negative or constructive feedback. They are only interested in what they want to hear. Are the critical stakeholders being engaged? The answer is no,” my source said, adding ruefully that “we are not in a very good position as an industry.”

I will attempt a little explanation. People expected that the minister would pay more attention to the digital economy, new tech businesses and tech upstarts where he has earned a name. He seems not to have disappointed their expectations at all. 

Somebody had asked me what would happen if the telecommunications sector should unplug some of these young tech companies. There would be a failure of immense proportions, the source volunteered an answer. That is not likely to happen soon. The source was only trying to explain why the minister should be interested in the fortunes of the industry, and there are no strong signs to prove that he is presently. 

The telecommunications industry is in dire straits. Out of the big three,  two made significant losses last year and one of them even had to scale down CAPEX by as much as 30 per cent. It is no surprise that the quality of experience, as the NCC chooses to call it now instead of quality of service, is painfully poor. Glo is a private business and does not announce earnings while 9MOBILE remains in the woods.

Unfortunately, the regulator, Nigerian Communications Commission, NCC, is also troubled and its immediate attention may be tailored towards its own survival. Although it is often said that government is a continuum, this writer gathered that the previous administration caused so much distortion and chaos within the regulatory system that steering the agency to a safe zone has become a daunting task. This comes with pains which the agency is feeling and the industry as well.

A source within the Commission said on Monday that the regulator is aware of the challenges confronting the industry at the moment and was working with key stakeholders to achieve industry sustainability and elevated quality of experience. 

“Let quality improve and let Nigerians have something to be happy about,” the source explained. 

Confronted with the grind of survival, the minister’s Bill may be a distraction, although the NCC will not have the stomach to say so. This writer is old enough to inform here that Dr Bosun has not earned the trust of the telecommunications industry and there is a small group at the regulatory agency praying for affliction not to return a second time after a painful and destabilising experience under the previous administration. I am of the strong opinion that there is a good way ahead to make amends. 

The Nigeria Employers’ Consultative Association, NECA, Manufacturers Association of Nigeria, MAN, and the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, have blamed hastily implemented government policy shifts without corresponding plans to mitigate the negative effects of the inception of the present government for the socio-economic crises confronting the country currently.

The trio spoke separately on the issue yesterday, with NECA saying major policy shifts undertaken by the government in 2023 and the adverse impacts they had across various sectors, are having terrible effects on businesses and the national economy.

President and Chairman of Council, NECA, Mr Taiwo Adeniyi, at the 67th Annual General Meeting, AGM, of the Association yesterday in Lagos, lamented that the combination of fuel subsidy removal, and exchange rate liberalization have significantly created market distortions and increased the cost of doing business, leading to a contraction in business activities since mid-2023.

He said: “It is no longer a secret that private businesses in the economy are beset with innumerable challenges, pushing many to the realm of mere subsistence.

‘’A good number of these private businesses continue to exist due to sheer determination and doggedness of the owners and investors, who are committed to supporting the economy.

‘’We commend the Federal Government for its various policies aimed at improving the operating environment and for establishing the Presidential Committee on Fiscal Policy and Tax Reforms.
“As we await the committee’s report, we believe the recommendations will be business-centric and given quick implementation attention by government.”

Our concerns

Notwithstanding the ongoing support by the government, Adeniyi listed six key concerns of businesses including the high cost of doing business due to depreciation in the value of the naira, increased Customs forex rate for clearing of cargoes, business-antagonistic regulations, proliferation of provocative taxes/levies and oversight functions of the National Assembly.

He said: “Private businesses are struggling with high production costs due to increased import bills for foreign inputs and raw materials. Before the liberalization of the forex regime, N460 was exchanged for US$ in the official market and about N750/US$ in the parallel market.

“After the policy, the exchange rate soared to N1600/US$, significantly raising import costs for the private sector. To address these challenges, we urge the Federal Government to review the current forex liberalization policy and adopt a more guided forex management procedure that supports domestic production.

“The upward review of Customs rate for cargo clearance to N1,413/US$ from N952/US$ in February 2024 has severely impacted businesses. These increases depleted the working capital of businesses, increased cost of production and drove up commodity prices, while also reducing household purchasing power.

‘’It has also contributed ominously to the general contraction of private businesses in the economy. Therefore, we urge the government to embark more on policies that are not only pro-business but also drive production and ensure job creation.

“In recent times, we have witnessed a proliferation of unfriendly and unjustifiable regulations aimed at organized businesses. It is our firm believe that regulations are meant to promote businesses and not to stifle them.

“Some of the recent regulations have become a source of shock and distraction to organized businesses, even though some of them were eventually suspended. For instance, the recent ban on alcoholic beverages in small packs by the National Agency for Food and Drug Administration and Control, NAFDAC, caused significant anxiety in the sector before being suspended after lengthy engagement with the government.

‘’We, therefore, urge the government to always conduct exhaustive consultation with private sector stakeholders on policy issues and act in the overall interest of the country within the prevailing circumstances.

“In recent times, we have observed several new taxes being imposed on private businesses by the Federal Government agencies. While we have witnessed the introduction of new taxes and levies, we commend government’s bold initiative of inaugurating the Taiwo Oyedele led Presidential Committee on Fiscal and Tax Reforms.

‘’It is hoped that the recommendations of the presidential committee will usher in a new dawn in tax administration in Nigeria.

“For over 10 years, we have witnessed the incessant invitation of organized businesses by different committees of the National Assembly on issues within the purview of the executive arm of government.

‘’Constitutionally, the National Assembly’s oversight function does not extend to private businesses. This responsibility lies with the ministries, departments, and agencies, MDAs, of the government.

‘’These invitations have caused significant distress to businesses, consuming time and resources. Although NECA has ongoing litigation on the dimension of the exercise of the oversight function with the Supreme Court, we urge the committees of the National Assembly to exercise their oversight responsibilities within the confines of the constitution.”

MAN blames forex, power, inflation

Reacting, the Manufacturers Association of Nigeria, MAN, also identified foreign exchange (FX) volatility, inadequate power supply and high inflation as some of the topmost challenges they encountered in their operations in the first quarter of 2024 (Q1’24).

This, according to it, led to a further surge in production and distribution costs by 20.7 per cent within the period.

MAN based its position on the response of chief executive officers in the manufacturing sector on a survey it carried out.

The Manufacturers CEO Confidence Index, MCCI, Q1’24 survey report stated: “The list of manufacturers’ challenges include unstable and high exchange rate/scarcity of FX; inadequate power supply/frequent power outages; high inflation/high operating cost (of raw materials, labour, equipment and maintenance); high cost of energy (petrol, diesel, gas); high and multiple taxes, charges and levies, among others.”

Commenting, the Director General of MAN, Segun Ajayi-Kadir, said: “The subdued performance of the sector is attributed to some ongoing harsh economic reforms that have compounded the long-standing challenges confronting the sector.

‘’This is confirmed by the finding of this report which reveals that forex scarcity, inadequate power supply, high inflation, rising energy cost, multiple taxation, policy inconsistency, exorbitant interest rate, poor infrastructure and high logistics costs are the top ten challenges depressing productivity in the sector.

“MAN expects government to frontally address insecurity, improve electricity supply, promote fiscal sustainability, and ensure policy consistency.’’

NACCIMA seeks improved public finance management

Similarly, the Director General, Nigerian Association of Chambers of Commerce Industry Mines and Agriculture, NACCIMA, Sola Obadimu, said: “The cost of doing business continues to rise almost on a daily basis.

‘’That’s neither healthy for business operations nor planning. Due to rising interest rates, MSMEs may not have the financial capacity to borrow. Large businesses may also prefer to downsize rather than borrow at current rates.

“With decreasing production due to high cost of funds, unemployment may worsen with the possibility of an increase in crime rates. Unfortunately, in the midst of all these, there seems to be a deliberate effort to aggressively pursue tax drive policies.

“Certainly, there is a need for an improvement in public finance management to ameliorate the harsh economic environment.”

NLC threatens to shut Nigeria

Meanwhile, in his goodwill message at the NECA AGM, President of Nigeria Labour Congress, NLC, Joe Ajaero, solicited the support of NECA for a better wage for workers, saying it was not about figure but the value of money.

Ajaero said: “Fair wages are not just a matter of social justice; they are also instrumental in boosting worker’s productivity and, consequently, the bottom line for employers. Enhanced purchasing power among workers will lead to increased consumption, thereby addressing the concerns of rising inventories in warehouses.

‘’We have advocated from the beginning of our engagement on the national minimum wage fixing exercise for the need to put more money in the hands of workers. We made this case on the understanding that it will help our businesses and rev up the economy.

‘’We had strongly believed that your organization would have been one with us and would have seen that we are actually making a great case for the survival of your businesses. We do not have any interest in crippling our businesses because you cannot cut your nose to spite your face.

‘’It is on this premise that we urge members of NECA to join us in the quest for a national minimum wage that will eliminate deep poverty from the lives of workers; wages that will not increase the number of the working poor and amount to a starvation wage for Nigerian workers is what we should all push for.

‘’The only way to break the present consumer resistance is to increase the wages of workers and that speaks to the policy of government that seeks to reflate the economy. It is not by giving handouts or reducing Nigerians to beggars who must queue at the various charity parks before they can eat.

‘’We must join hands to stop this collective slide into the pit. We must save our businesses by saving workers. N250,000 as national minimum wage is already a steep consideration by Nigerian workers.

As we are speaking now, the House of Representatives and the Senate are meeting to make sure they decentralize wage.

‘’We all know that wage in International Labour Organisation, ILO, is a national law and Nigeria will not be an exception. We will also demand that the wages of political officeholders and others are brought under minimum wage.

‘’You cannot be in the Senate and you are under minimum wage and not legislate for a better wage We should know your wage, we should know what you are earning. If you are a governor, you have security vote that is unaccounted for. If you have excess funds, you will not know that people are suffering.

“But if everybody is brought under the minimum wage, even if the governors want to create level 18, 19, or 20 for them, they all should come under the wage system. That is the only way it is going to work.

“If it is possible, both the House of Representatives and the Senate should be on part-time basis.
‘’Let it be based on professional callings. If you are a lawyer, a doctor, you have a business or profession of your own. If they meet three times a week, then the remaining days in the week, you go on with your businesses because the money being spent at the National Assembly is unimaginable. ‘’Unless we address this, the country will continue to go down and the gap between the rich and poor will continue to widen.

Later, in a chat with journalists after his remarks, Ajaero warned that should the governors and members of the National Assembly succeed in deregulating the minimum wage, Organised labour would shut the country for one month.

He insisted that by the International Labour Organization, ILO, Convention 131 ratified by Nigeria, minimum wage is a national issue, warning that organised labour would not accept a situation where governors, working with the members of the National Assembly, imposed slave wage and poverty on workers and Nigerians.

“As we are here, a joint committee of the Senate, the House of Representatives, and the Judiciary are meeting. They have decided to remove section 34 from the Exclusive legislative list to the concurrent list so that state governors can determine what to pay you and so that there will be no minimum wage again.

‘’You cannot decide what you should earn. The very moment the House of Representatives and the Senate come up with such a law that will not benefit Nigerian workers, they will be their drivers and gatemen, and there will be no movement for one month.

‘’We cannot accept any situation where the governors and the National Assembly members will foist a slave wage on workers and force poverty on the citizens. Organised ‘labour will not accept it,’’ Ajaero said.

[Vanguard]

Building collapse has been on the rise in Nigeria over the years, leading to injury, loss of life, and property damage. The National Chairman of the Nigerian Institute of Civil Engineers (NICE), during the institute's workshop titled Stemming the Tide of Building Collapse Menace in Nigeria” held in May 2024 in Abuja, said Nigeria recorded 41 building collapses in 17 months. More disturbing is that in only July 2024, three building collapses have been reported—in Mushin, Lagos; Kubwa, Abuja; and a school in Jos, Plateau—where 22 people were said to have been killed. Immediate action must be taken to stem the tide.

It is common practice to see housing construction being undertaken by non-qualified professionals. In a bid to save money, many people build their houses without using the necessary professionals. Additionally, some developers, in their quest to maximise profit, employ only some of the services of the required professionals; relying largely on artisans. The architect, civil engineer, quantity surveyor, project manager, etc, all have crucial roles in building construction. Any compromise in their roles could lead to poor construction design, faulty construction, poor quality control, and ultimately building collapse. For example, constructing a house without properly considering the soil texture can lead to fatal results in the future.

Another significant factor that leads to building collapse is the compromise in the quality and quantity of materials used. This may be done by the contractor in charge of the construction to maximize profit, or even by the site engineer or workers who may exchange quality materials procured with substandard ones or sell some of the materials procured for the construction for personal gain. Hence, there is a need for effective monitoring.

To win a bid, some contractors submit very low quotations, which they know cannot properly support the construction of the buildings they are bidding for. The practice of choosing the lowest bidder for building contracts by default should not be encouraged. The lowest bidder sometimes may be the least experienced or one who is out to compromise standards.

The age of a building also contributes to its collapse. Just like anything in the world, buildings do expire if they are not reinforced through extensive rehabilitation, which is beyond regular renovation. This is often an expensive task, especially for high-rise buildings, and hence is sometimes overlooked.

Government (federal, state, and local, as applicable) should begin to undertake integrity tests on any building that is more than one storey high, especially those in public use. As a matter of policy, such checks should be periodic. Any building found defective, where remedial work cannot salvage it, should be pulled down. Subsequently, any building more than one storey high should be certified habitable by the relevant government agency before being put into use. Anyone engaged in substandard building practices should be sanctioned. All building codes should be enforced.

Professional bodies like the Council for the Regulation of Engineering in Nigeria (COREN) Nigerian Institute of Civil Engineers (NICE), and the Real Estate Developers Association of Nigeria (REDAN) should sanction members who cut corners and compromise standards. They should also monitor the activities of their members from time to time; this will serve as a deterrent to unwholesome practices. There is also a need to create public awareness about the importance of engaging registered professionals in building.

Proper supervision of construction projects by sponsors and project site managers is crucial to ensure adherence to specifications and prevent the occurrence of sharp practices. It is also recommended that professional project managers be engaged to ensure the successful completion of projects.

The Standard Organisation of Nigeria should ensure that substandard building materials are neither domestically produced nor imported for use. They should also conduct random, unannounced inspections of building material vendors to check for substandard items that may have entered the market.

Nigeria needs to take deliberate actions to stop the issue of building collapse. People should be encouraged to engage registered professionals in their building construction. Professional bodies have a role to play in checking the conduct of their members and sanctioning those who err. By fostering a culture of adherence to standards and professional integrity, Nigeria can mitigate the risk of building collapses and ensure the safety of its citizens.

Kenechukwu Aguolu 

Abuja, Nigeria

The Osun State Government has issued a public alert on the security breach of Governor Ademola Adeleke‘s official telephone number.

The compromised number, +234 803 365 7555, is reported to have been hacked, leading to potential fraudulent communications being sent from it.

In a statement released by the Governor’s spokesperson, Mallam Olawale Rasheed, the public has been strongly advised to disregard any calls or messages received from the hacked number.

“Members of the public should ignore any such communications as they are not authorized by the Governor,” Rasheed emphasized.

The state government is actively taking measures to address the breach and restore security to the Governor’s communication channels.

An investigation into the incident is underway, and efforts are ongoing to prevent future occurrences.

Residents and officials have been urged to report any suspicious activities or interactions related to the compromised number.

The government promises to keep the public updated as they work to resolve the situation and strengthen security measures around the Governor’s telecommunications.

Naija News understands that this is not the first time the phone number of a state Governor will be hacked as the Cross Rivers State Governor, Bassey Otu, on the 11th of February, 2023, saw his phone numbers hacked by criminals.

[Naijanews]