The President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank) has debunked claims that the $3.3b loan that the Nigerian National Petroleum Corporation Limited (NNPCL) acquired from the bank will be repaid with an interest rate of 12%. He said the loan is one of the best priced loans on the market with 6% margin.

Oramah revealed this in an exclusive interview with ARISE NEWS anchor, Ojy Okpe, describing the allegations of repaying the $3bn Loan with $12bn as ‘ridiculous’. He said the loan was very effective in helping FX shortage and stabilise the financial system.

During the interview, Oramah was asked about the nature of the loan, of which the NNPC has received $2.25 billion of the agreed $3 billion in a bid to stabilise Nigeria’s foreign exchange. He replied, “Well, the interest rate on the loan carries a margin of 6.0% per annum above the 3-month secured overnight financing rate (SOFR) that is the base rate which governs the cost of funds, so to say. So, if Afreximbank wants to lend money, any other person wants to lend some money, dollars, you start from there and it stays, then you add your margin. And the margin we have I think is 6%, and this loan is a seven year loan. Actually, it is one of the best priced loans in the market today.

“We’re not talking about three years ago, four years ago. We’re talking of today where interest rates have gone up, and we’re just hoping that inflation will go down globally so that rates can start going down. And in fact, if those rates start going down, the interest rate of this loan will start also going down. So that’s what I thought about it, about the pricing of the loan.

“And it’s transparent, there’s nothing to hide about it, and anybody who wants to compare it can compare it against the yields on the Nigerian bonds trading today.

Responding to Nigerians questions and misgivings regarding the loan, Oramah clarified that the loan is effective as he said, “It actually helps acute FX shortage. And you know there are things people do not know, maybe government will not be saying it, but I’m at liberty because we have a justification for doing what we did. It actually helps us stabilize the financial system.”

He went on to say, “It’s the job of government to do what they know is right actually. Of course, it’s good for the people to criticise ask questions and all that. But I just think that sometimes, people who are criticizing also have to be reasonable. You don’t have to go to the municipal and start telling stories, because if you genuinely want an explanation and you asked, for example, for us, we never got anybody right to us saying explain this to us.

“We’re not hiding anything. If anybody came and we thought we should, if it’s not a confidential matter, because everything we do is confidential. And by the way, we are not the only lender, there are other lenders. So, if it’s something that we believe we should explain, we explain.

The Afreximbank President then spoke about the Memorandum of Understanding he had signed with the Nigerian Health ministry to provide a $1 billion facility that would finance a contribution pool for private investors who want to invest in Nigeria’s health sector value chain.

Giving his reasoning behind this, he said, “I always believed that health care is human right. Every person on this earth should have access to good health care, because that is what makes you to live a wholesome life. It is not what we should just reserve for the very rich and mighty.”

The Senior Special Assistant to President Bola Tinubu on New Media, O’tega Ogra, has faulted the 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, for comparing the economy of Nigeria to Argentina.

Naija News reported that Atiku had urged President Bola Tinubu to learn from the approach to economic reform taken by Argentina’s President, Javier Milei, for Nigeria’s economic reforms.

In a statement on Sunday, Atiku emphasized that Tinubu and Milei inherited a disoriented economy, but each applied different measures for recovery.

Reacting to Atiku’s statement in a post via his official X handle on Sunday, Ogra said Nigeria is not Argentina and President Tinubu is not President Milei, stating that both nations are incomparable.

The presidential aide said the economic situation in Argentina is gloomy and berated Atiku for criticizing the Tinubu administration while glorifying the dire situation in the South American country.

He asserted that President Tinubu is working hard to address the economic hardship in the country and diligently working towards a prosperous, stable, and inclusive Nigeria.

He wrote: “Respectfully, VP Atiku (1999 – 2007) sir, I come again.

“I would like to start by first saying – respectfully, that Nigeria is not Argentina, and President Tinubu is not the President of Argentina.

“To those who may be enchanted, just like our former VP, by the ‘Argentina Miracle’ he quoted, see below the January data of the situation Alh. Atiku praised and says he would have put on Nigerians – had he been 7th time lucky at his shot at the presidency which wasn’t successful.

“I, therefore, advise a closer look at the data—lest we forget that even a broken clock is right twice a day:

– Argentine Inflation Rates: Jumped to 254% in January 2024 – the highest level since 1990.
– Industrial and construction output in Argentina dropped by 12.8% and 12.2% year-on-year in December, respectively.
– Economic activity in Argentina fell 2.5% year on year according to a Reuters survey.
– Car registrations in Argentina declined by 33% year-on-year in January.
– Retail sales in Argentina fell by 25.5% year-on-year in January.
– Construction activity in Argentina decreased by 28.2% in January.
– Cement deliveries and motorcycle registrations also saw significant declines.
– Halting all public works, freezing public sector salaries and pensions, and eliminating many public subsidies, including for energy and public transportation.
– Tax Increases: Sharp rise in taxes, including import taxes.
– Real Salary Collapse: The real salary of registered private-sector workers in Argentina experienced the largest monthly drop in at least 30 years, with January’s real salaries potentially falling below the levels of the 2001 crisis
– National taxes linked to economic activity across Argentina fell between 15% and 25% annually on a real basis.
– Food sales in retail stores fell 37.1% year-on-year in January.
– Minimum Wage: The current Minimum Living and Mobile Wage (SMVM) is 156,000 pesos per month ($184), with no increase despite high inflation. At least Nigeria is reviewing its own.
– IMF Forecast for Argentina: Predicted a 2.8% recession in 2024.

“This gloomy situation above is the situation former VP Atiku says in his statement that he would have put on Nigerians – had he won. Thank you, sir, for finally telling the Nigerian people what your true plans were. Now we know – stopping salaries, a recession, > 250% inflation, no investment in social security or infrastructure was your plan for Nigerians all along.

“Koko Of The Matter: I honestly appreciate former VP Atiku’s attempt to contribute to the economic discourse, albeit through a remarkably flawed lens. As for my principal – @officialABAT President Tinubu’s administration, we will continue to roll up our sleeves, not to play the fiddle as Rome burns, but to diligently work towards a prosperous, stable, and inclusive Nigeria.

“Alhaji Atiku, your statement is perplexing. Your critique of President Tinubu’s administration, while glorifying Argentina’s dire situation, is akin to applauding the captain of the Titanic for its speed, ignoring the iceberg dead ahead I understand the allure of sensational headlines and the temptation to draw parallels where none exist, but let’s be clear: Nigeria is not Argentina, and President Tinubu is not President Milei.

“Let me be clear: President Tinubu will continue to prioritize the well-being of Nigerian citizens over the theatrics of austerity masquerading as reform.

“Thank you for indulging me once again, sir @atiku.”

[NaijaNews]

Amid the planned protest by the Nigeria Labour Congress (NLC) over the hardship faced by Nigerians, a Senior Advocate of Nigeria (SAN), Femi Falana, has asked the Attorney General Of the Federation, Lateef Fagbemi, to provide security for the demonstrators.

Barring any last-minute change, the NLC will on Tuesday, February 27 and Wednesday, February 28 protest following the dramatic hike in the prices of goods and services due to the removal of fuel subsidy and the free fall of the naira, among others.

The human rights lawyer in a letter dated February 24 and addressed to the Attorney General of the Federation said Section 83(4) of the Police Establishment Act empowers the Minister of Justice to provide security cover for the protesters.

He also called on the organised labour to conduct their scheduled rallies peacefully void of violence.

“While we have advised the members of the NLC to conduct the rallies scheduled for February 27-28, 2024 in a peaceful manner, we urge you to use your good offices to direct the Inspector-General of Police to provide adequate security to the conveners and participants in the protest in line with the provisions of Section 83(4) of the Police Establishment Act,” the letter read in part.

“Finally, while awaiting your favourable reply to this letter, please accept, as usual, the assurance of our highest esteem.”

[NaijaTimes]

The removal of subsidy on petroleum that was expected to take more Nigerians out of poverty through higher revenue accrual to both the federal and sub-national governments seems to be ineffective with almost all the states of the federation having very little or nothing to show for the huge revenues that have come in for them since May 29 when President Bola Tinubu announced the subsidy removal.

LEADERSHIP’s findings showed that aside from their internally generated revenue that runs into billions of naira, the states put together got over N5.108 trillion in revenues from the Federal Account Allocation Committee (FAAC) in eight months – from July 2023 (when the proceeds of the subsidy removal started coming in) and February 2024.

The overall revenue of N5,108,219,000,000 (N5.1 trillion) received by the states includes the N2,690,391,000,000 (N2.69 trillion) that came in directly from the federation account and N1,975,899,000,000 (N1.975 trillion) disbursed to the local government’s account that is controlled by the state governors, and another N441.929 billion as 13 percent solid minerals derivation revenue shared to some of the states.

While the subsidy removal increased the average monthly disbursement from FAAC to about N1.09 trillion against the previous average figure of N620 billion, the governors of the states have failed to raise the standard of living and the per capita income of their residents.

At the last count, only about 10 states had started the implementation of the N30,000 labour/government-agreed minimum wage benchmark for public workers. Despite the increase in revenue, most states are yet to implement the old rate even when labour is already demanding an increase of over 200 percent.

A breakdown of the FAAC allocation to the states in the period under review showed that in July when the first post-subsidy income was received, a total distributable revenue of N907.054bn was shared among the three tiers of government, with the states taking a total of N561.49 billion from the federation account.

In August when the total revenue comprising Value Added Tax, exchange rate gains and electronic money transfer fee approved for sharing rose to N966.110 billion, the states got N591.624 billion.

An increase was recorded in September when a FAAC communique stated that from the N1.1 trillion total distributable revenue where the federal government received a total of N431.245 billion, the 36 states received N361.188 billion, while the local government areas got N266.538 billion. A total sum of N26.473 billion (13 percent of mineral revenue) and N14.657 billion (13 percent of savings from NNPCL) were shared with the relevant states as derivation revenue.

Also, from the N903.480 billion total revenue distributed in October 2023, the state governments received N287.071 billion and the local governments received N210.900 billion. A total sum of N84.966 billion (13 percent of mineral revenue) was shared to the relevant states as derivation revenue, bringing the total revenue from the federation account to the states to N582.937 billion.

On November 22, FAAC approved the disbursement of N307.717 billion to the states, while the LGAs received N225.209 billion. N50.674 billion (13 percent of mineral revenue) was shared among relevant states as derivate+ ion revenue.

FAAC also shared N1.1 trillion revenue for December to all the tiers of government as revenue from the previous month. The communique issued at the end of the monthly meeting revealed that while the federal government received a total of N402.867 billion, the state governments received N351.697 billion and the local government areas received N258.810 billion. A total of N75.410 billion (13 percent of mineral revenue) was shared with the benefiting states as derivation revenue, again, increasing their share of the federal revenue.

In January 2024 when the first FAAC meeting of the year was held, N1.127 trillion which came in from December revenue was shared. In the breakdown, the federal government received N383.872 billion, the states received N396.693 billion, local government areas received N288.928 billion, and the oil-producing states received N57.915 billion as Derivation (13 percent of mineral revenue).

In the final analysis, the state governments received N379.407 billion, and N278.041 billion on behalf of the local governments, with the sum of N85.101 billion (13 percent of mineral revenue) also coming into the benefiting states as derivation revenue.

All this is apart from the billions each state received from the federal government to distribute palliatives to the vulnerable segment of society in the wake of the fuel subsidy and the cost of living crisis that followed.

However, these increased funds available to the governors has hardly translated to any kind of reprieve to the residents of the states, with  hunger protests  and raiding of truckloads of foodstuff  recorded in parts of Nigeria, as well as the Nigeria Labour Congress planning a national protest in the coming days due the unabating hardship confronting workers and other Nigerians.

Labour warns FG against attack on protesters

Nigeria Labour Congress (NLC) has accused the government of planning to attack its nationwide peaceful protest scheduled for February 27 and 28, 2024.

According to a statement in Abuja, NLC president, Comrade Joe Ajaero, claimed that a group called the Nigeria Civil Society Forum (NCSF) is being used by the government to orchestrate violence against the forthcoming protesters.

The labour leader also called the attention of the international human rights body, the African Union and the United Nations to the threat posed by the Nigerian state to the right of the people to peacefully protest and demand for freedom from economic slavery and hardship.

Ajaero insisted that the government has failed to address the hunger and poverty in the land, and has instead resorted to suppressing peaceful protest and inflicting violence on citizens.

The labour centre cited the recent incidents in Minna and other cities, where Nigerians were tear-gassed and beaten up by security agents for raising their voice against hunger.

Ajaero however said such actions will not deter NLC from exercising its fundamental right to peaceful protest, which it said it has always done in the past, except in instances of state-engineered violence.

NLC warned that if the government set on the path of violence against it and other peace-loving Nigerians, it will be making a costly mistake, as it will trigger a total shutdown of the country through the withdrawal of services by workers.

The statement reads, “We would like to inform  Nigerians that the state  has perfected plans to attack our peaceful rallies across the country.

One of the groups being primed to attack our peaceful rallies is  by a nebulous name, Nigeria Civil Society Forum (NCSF). NCSF is one of the emergency groups put together, funded, promoted and remote-controlled by the government to cause violence against our members for electing to peacefully  protest against hunger in the land.

“The pangs of hunger cannot be cowed by  bullets or tear gas… we at the Nigeria Labour Congress and civil society allies are moving ahead with our  protest rallies against economic hardship and insecurity in line with the decision of the National Executive Council.

As citizens, we have a fundamental right to peaceful protest and history bears us witness that our protests are always peaceful except in instances of State-engineered violence”.

“We advise those waiting in the wings to unleash violence on us that this is not about the NLC but about Nigerians who are saying “enough is enough”, about a people who have resolved not to be further pushed into the pit of misery and hopelessness, while a few live in obscene luxury at our collective expense.

We however remain resolute, determined and prepared to express our pain and grief in a peaceful manner as Nigerians come 27th and 28th of February 2024″.

[Leadership]

Cement and concrete are synonymous with strength ;the strength of the economy and infrastructural development. Cement is specifically an indicator of how we prioritise housing, roads, and other infrastructure projects that rely on it. When cement prices go up consistently, it reverberates across the country, sending cold chills down the spines of many. It means fewer people can afford homes, a fundamental human right. Although cement is just one ingredient in the construction industry, it has come to represent the industry itself, so the affordability of cement represents the affordability of houses and other concrete-based constructions. To millions of Nigerians who are nursing the hope of owning their own homes, an increase in the price of cement threatens that hope, and in a country where hope is the only viable anchor against many debilitating odds, there is outrage and panic among many. Besides the link of cement to our collective psyche of home ownership, cement is also about the construction industry, public works, local manufacturing industry, and the employment it generates.

Cement And Economic Mix

The current cement price hike is indicative of the economic degradation of Nigeria and the complexity therein. It showcases the interconnectivity of a nexus of factors that come together to have a stranglehold on our economy and how the government tackles the problem of excessive hikes in cement prices often is a case study of the government’s dominant reactionary approach to solving sensitive social issues and a metaphor for wrong application of policy in our society. It also indicates how the government misdiagnoses problems and applies inappropriate treatment at the policy level.

In a mixed economy like ours, the government plays a crucial role in shaping the economy, and in some cases, it is the highest single stakeholder in some sectors of the economy. Nevertheless, its primary role is to create an enabling environment for the market forces to play their role in determining the cement price while ensuring that the regulatory framework constrains the market arbitrariness. This is more preventive than reactionary. However, when the systems and structures put in place to guide the market fail, the government is expected to intervene in the interest of society. This intervention must aim to produce public value by diagnosing and solving problems appropriately. Appropriate diagnoses are pivotal to applying the correct measures that bring sustainable solutions. We miss the point when government officials act like elected kings, using maximum coercive powers to solve a problem that requires thinking and collaboration. Cement is a case in point.

The price of cement, using a 50kg bag as an indicator, between May 2023 and January 2024, a period of about six months, has increased from N4,250-N4,500 to N12,000-N13,000. This is an increase of between 100% to 200%. Almost all construction industry segments reacted to this astronomical rise in price. There was a public uproar, and the government applied two knee-jerk reactions: the first was to threaten the cement producers to bring down prices or face dire consequences and the second was a threat to open the borders and allow massive importation of cement to flood the market and force the price down. This is indicative of the mindset of our government officials. But realistically, we cannot solve problems by threatening everybody.

The most critical underlying factor in the cement price hike albatross is that the government is caught between protectionism (protecting the local cement industry) and trade liberalisation to curtail prices. The politics of the recent cement price hike goes beyond the fractures in the Nigerian economy. There is a perception of the politics of cement monopoly. The Obasanjo presidency initiated a policy of selective protectionism on certain items to protect local industries. Things like cement, fruit juice drinks, pasta and sugar benefited. This enabled significant industrialists to set up enormous plants for these items. There was an unwritten understanding behind these concessions about these local investors reciprocating by keeping prices in check. This is another dimension of the challenge that the government needs to untangle.

Cement  manufacturers have raised fundamental issues that need appropriate diagnosis and solutions proffered. Issues raised by cement manufacturers are grouped into 5: first, with the general paucity of power in Nigeria, almost all manufacturers generate their own energy, and many rely on gas. Despite being a gas-endowed nation, it is simply unavailable – a paradox of plenty. The available gas is denominated in USD and the price has increased by over 300% in the past 6 months. Second, Cement production relies on many imported inputs such as gypsum, machinery,  explosives to blast the mines, spare parts, and propylene to produce bags, all of which are imported using USD. The foreign exchange is just not available, and the USD volatility against the Naira has not helped matters. Third, customs duties are indexed in USD, and lately, it has moved from 450/USD to 1700/USD in just a few months, a more than 300% increase. Fourth, the cost of diesel, which is critical in the transportation of cement and for excavators to mine limestone, has tripled over three months. Fifth, the unfriendly operating environment characterised by corruption, strangulating bureaucracy and  multiple taxation is devastatingly affecting the industry.

All Hands Must Be On Deck

Addressing this issue requires a comprehensive approach involving various stakeholders. A starting point for diagnosis of the challenge is to find out why gas is not available, why we cannot transport cement by rail, what can be done on the matter of foreign exchange components in the cement production sector, tax harmonization, general insecurity, and undue bureaucratic interference to complex issues of market forces. Any solution that does not address these is, at best, jaundiced and unsustainable. It is myopic to think that the government will ignore the significant external and internal intervening variables underpinning the excessive hike in the price of cement, whip the industry to an agreeable price, and assume the problem has been solved.

All factors considered, because of the socio-economic impact of cement, the government needed to diagnose the challenge correctly, consult widely, and develop a sustainable policy solution. The impression I get is that this is not the case . The way we are going, many manufacturing concerns in the country will go down unless something is done about FX, operating environment, import duty, power and, most importantly, corruption. If cement prices continue to skyrocket, the cost of public infrastructure will escalate, many will lose their jobs, and the nation will be thrown into further economic depression. There may not be a straight answer to resolving the paradox of cement price hikes, but it is urgent and imperative that a holistic approach to tackling the problem is followed.

Addressing the high cost of cement requires collaboration between the government, industry players, and other stakeholders to implement sustainable and practical solutions. The government must work with the cement industry to develop policies that stabilise prices and prevent unnecessary fluctuations. It must enforce policies that ensure fair competition and avoid price gouging. It should encourage healthy competition in the cement industry,prevent monopolies, and streamline the regulatory processes. It should invest in infrastructure development to improve transportation networks and reduce the cost of transporting raw materials and finished products. Put mildly, the government must create an external environment that is business-friendly.

The cement industry on the other hand must  implement energy-efficient technologies to reduce operational costs and explore alternative and renewable energy sources to power manufacturing plants. They should invest in research and development to find innovative and cost-effective methods for cement production .

I am in trouble!

I have placed my breasts on a kindled lantern.

Help me! 

If the title misleads you into thinking that this is about mastalgia, please stop reading. What follows is a tale of agony: GBỌ́MÚ LÉ LANTERN! This is the story of a creditor and a debtor. This is about Lapo, a situation where many campus girls find themselves forced to engage in undesirable activities, such as having sex with Okada boys for a meagre sum of N3,000. This occurrence highlights how individuals lose their freedom, how wives become concubines, and how souls are sold. Be strong-hearted.

The last time I was in Ibadan, I visited the Bodija market, a popular food market in the city. The market is in a crowded suburb, which serves as a base for various businesses that cater mostly for foodstuffs and groceries. As I navigated my way through the market, I noticed a crowd gathered around a woman. Initially intending to pass by and mind my own business, but then I heard a loud cry: “Ẹ̀yin èèyàn, ẹ sàánú mi, iná lantern jó mi!”, translated as, “Please, have mercy on me; the fire from a lantern is burning me.” Out of curiosity, I turned to witness the source of the outcry. Before me stood an elderly woman writhing in agony, her cries echoing through the market. Tears streamed down her face as she danced and shook with pain. You could tell she was in distress, her desperate gestures conveying the severity of her predicament. As I observed her plight, I could not help but feel a sense of pity for her unfortunate circumstances.

Curiosity got the best of me, so I approached a trader to inquire about the cause of her calamity. Had she suffered the loss of a child? With no sign of fire in sight, I wondered what could have happened. The trader shared the heartbreaking story of the woman’s misfortune. According to him, the woman had borrowed N150,000 to start her palm oil and rice business, and she was expected to pay back a certain percentage every week. Unfortunately, some thieves burgled her shop during the night and cleared out the entire shop. She got to the market to resume sales as usual, only to find her shop looted and empty. The timing could not have been worse, as it was the day she was due to make her weekly loan repayment. Barely making any sales that week, she found herself in a dire situation. I now understand why she almost stripped herself naked, crying as if he had lost a child.

Please help me,

I have placed my breasts on a hot lantern!

Gbọ́mú lé lantern is a common slang among borrowers of microcredit loans in Nigeria, expressing how excruciating their agonies can be. These loans come with risky terms and conditions, akin to placing one’s breast on a hot lantern – a pain difficult to fathom, let alone endure. Yet, this is the reality for many market men and women, petty traders, and local artisans, who are the major recipients of these microcredit loan schemes. This group of individuals suffer shame and anxiety, driven to depression. The consequences of defaulting on these payments are severe: borrowers risk being locked up in toilets, escorted to beg for alms, having their goods confiscated, or facing various forms of public shame and harassment.

Ó yáwó LÁPÒ,

Ó lọ fi sayé,

Ó yáwó Palmpay, ó lọ fi mọtí.

You took a loan from LAPO. You are using it to flex.

You are using it to buy alcohol.

This implies that the loan obtained from these officers should be strictly used for business purposes, and you do not dare mess with them. They believe that public humiliation is a more effective means of recovering loans than arrests. Arresting defaulters would prevent them from engaging in business activities to repay the loan, providing them with more excuses for delayed payment. Therefore, they resort to public shaming and embarrassment, knowing that defaulters will experience it in the presence of their loved ones, friends, and fellow traders, who are unlikely to stand their loved ones facing such embarrassment and might decide to save them from the shame.

Nevertheless, loan officers will stop at nothing to retrieve their money. Those who sell perishable goods can be somewhat unlucky because of the nature of their goods. If sales are slow, they may end up with losses as the goods may spoil. The trader also shared how a particular fish hawker had been unlucky with the loan scheme twice. On the first occasion, she was locked up in an unlivable space with human waste until a relation came to pay the weekly due. Seven more days, her agony would be repeated. The second time, she was forced to dance around the market as she hawked her fish while the loan sharks sang harassing songs and rang a bell on her head before a good Samaritan bailed her out of their hands. How pathetic!

There is an evident tension that erupts and the expression that signals pain and hardship on the faces of traders and other clients of these microcredit loans at the mention of LAPO (Lift Above Poverty Organization) or SEAP (Self-Reliance Economic Advancement Programme), amongst other loan schemes. The credit officers who work for these microcredit schemes go to the extreme to ensure loan repayment, as any outstanding amount is deducted from their monthly salary, and they suffer other unfair treatment over defaulted loans. This is the motivation for their crude harassment of defaulters.

The prevailing economic hardship in our country often leaves many with no alternative aside from these Gbọ́mú lé lanterns, leaving them indebted and living in constant fear of these loan sharks branded as microfinance loan schemes, with detrimental effects on their health. The thought of the embarrassment one is doomed to face if payment is defaulted is enough to take sleep away from one’s eyes for days. There is perhaps no faster route to hypertension and high blood pressure than to be indebted to these so-called microfinance loan schemes.

Imagine running from pillar to post, robbing Peter to pay Paul, having sleepless nights, lacking peace of mind, and experiencing a health crisis just to pay N20,000. Naturally, being in debt is rarely conducive to peace of mind, but for those who fall prey to these loan schemes, it is not merely the debt itself that poses a problem but rather the draconian consequences of defaulting on repayment and the unforgiving methods employed to recoup funds. Borrowing N50,000 and ending up repaying double is the grim reality for many. While we may say that a lack of adequate information and illiteracy is what pushes people into the nets of these loan sharks, often, people who patronize them feel like they have no other choice than to agree to such enormous interests and outrageous repayment methods. Imagine being faced with the looming deadline for your child’s school fee or the dire request from a hospital that demands payment for life-saving treatment. In such dire circumstances, the choice between risking one’s financial future and securing immediate relief becomes agonizingly clear. For many grassroots men and women, the perceived absence of viable alternatives compels them to risk everything by placing their metaphorical breasts on a searing hot lantern – the all-too-familiar symbol of microfinance loan schemes.

In today’s technologically advanced world, the proliferation of loan apps like OKASH, Fair Money, etc., poses significant risks for borrowers. These apps gain access to sensitive personal information, including bank details like the BVN, NIN, and phone contacts, which they leverage to pursue defaulters. Since there is no privilege of face-to-face contact, they do not physically harass defaulters like the microfinance loan officers do; instead, they harass defaulters by incessantly calling and sending embarrassing text messages to the defaulter’s contact list. If you have ever received a call or text that reads thus: ‘Your contact, Mr Sule, with telephone number *** is a debtor and fraudster who took a loan from our company and has refused to pay. Please compel him to pay, unfriendly measures will be taken as this will be considered a fraudulent act.’ then you are familiar with their tactics. Some will not stop at just calling or texting the people on the defaulter’s contact list but will go to the extent of announcing a defaulter’s obituary. Àwọn wèrè!

Corporate banks have, over the years, rendered most small and medium business owners helpless when it comes to giving out loans. With no hope of financial assistance from regular banks, small-scale business owners turn to microfinance banks who generously give out loans with little or no stress. However, despite the prevalence of loan defaults, it is crucial for loan companies to adopt more humane methods of correcting defaulters rather than resorting to extreme measures such as confinement in pit toilets, public begging, and other notorious methods of loan recovery.

Modáràn o!

Mo ti gbọ́mú lé lantern.

Ẹ gbà mí!

Iná jó mi o!

The uncertainty in the Nigerian economy prompted an emergency meeting between President Bola Tinubu and members of the business community on Sunday.

Prominent among those who attended the meeting at the Presidential Villa Abuja, were the Chairman of Dangote Group, Aliko Dangote, Chairman of BUA Group, Abdulsamad Rabiu, current governor of Anambra State, Charles Soludo, and Chairman of Heirs Holdings, Tony Elumelu, among others.

The host, President Tinubu, told the participants that all stakeholders must look at “what we’re doing right and what we’re doing wrong to bring life back to the economy.”

Tinubu said: “We are very concerned, from students to mothers and fathers, farmers, and traders, and realising that every one of us will have to fetch water from the same well. ⁣

⁣“We’re looking for additional efforts that might help the downtrodden Nigerians and we will provide that hope and reassurance that economic recovery is on its way. ⁣

⁣“We are not saying that we have all the answers. But we will not be blamed for not trying. We assure Nigerians that we will do our best to get our Marshall Plan in place and fashion out the best economic future for this country.”

Emerging from the meeting, Dangote told reporters that it was quite fruitful, as issues bedevilling the Nigerian state, including food, insecurity and the economy, were deliberated upon during the meeting.

He said: “I think we had a very, very good meeting and what we discussed was generally about the economy, food security and security of the nation.

“We discussed everything in detail. And there is the economic Presidential Advisory Committee, which has been set up and I think this will look at all the issues and address them, coming from job creation and food security.

“So, all these things have been discussed in detail. I can’t give you all the details right now, but we are hopeful and we’re a great nation. We have what it takes to turn around the economy and we’re going to do that.”

Also reacting, Abdulsamad Rabiu said it was an open and frank talk about national issues affecting the country.

“It was open, it was frank and it was exhaustive. And some of the issues we discussed for example, like the foreign exchange rate, which we know has always been the problem for the past two or three months.

“We discussed how to bring the foreign exchange rate down because we all know that what is happening as regards the foreign exchange is artificial; it is manipulative and thank God the CBN is doing quite a lot.

“Now, the exchange rate has come down from N1800 to maybe N1600 and N1500 now, and as you all know, everything in Nigeria is indexed to the foreign exchange, especially when it comes to stuff that we import into the country,” the BUA chief executive stated.

“I left this meeting with a lot of enthusiasm, excitement and optimism about the future of our country. I believe that implementing the decisions we arrived at today will propel our economy, help alleviate poverty in the land, help create employment and help put food on the table,” Elumelu added.

On his part, Charles Soludo said it was a tripartite meeting designed to put heads together and think together.

He said Nigeria has one national economy, and it’s the responsibility of the 225 million Nigerians to work together to make it great. We have all the potential and all that it takes to make Nigeria ride through these turbulent times and put the economy back on a sustainable level.

“I think there is unity of purpose, determination, a sense of patriotism and determination by all to make it happen and by the special grace of God, it’s now execution. And this is a standing committee that will be meeting from time to time to evaluate how things are going and make recommendations to Mr. President and the nation as well,” Soludo added.

[DailyPost]

• Ex-VP urges Tinubu to adopt Argentina model

Former Vice President Atiku Abubakar has urged President Bola Tinubu to emulate his Argentine counterpart, Javier Milei, for accelerated economic growth in Nigeria.

In a tweet posted last night on X, following a report by Reuters International news agency on Argentina’s market optimism, Atiku called for a decisive action to tackle Nigeria’s economic challenges.

“I read a recent report in the Reuters, titled: Argentina’s market double down on Milei as investors ‘start to believe’; I took a keen interest in reading the report because I know quite well that Argentina and Nigeria closed the last quarter of the Year 2023 on a similar path of economic downturn.

“In the case of Nigeria, a new government was installed at or about the middle of 2023; for Argentina, the new government came on board in December; both leaders inherited a disoriented economy, but both applied different measures to recovery.

“President Javier Milei of Argentina was sworn into office on December 10, 2023; he inherited a worse condition than Nigeria’s. But what he did to return his country to a place where investors are ‘starting to believe’ should serve as a lesson to Nigeria’s Bola Tinubu.

“Nigeria is where we are today simply because of what Tinubu has done or did not do; his shifting the blame on the opposition and, even ridiculously, his predecessor is needless and myopic; market forces don’t play politics, they respond to your actions and inactions.

“He came into the office with a comprehensive stabilisation plan, which seeks to implement far-reaching measures within the context of a market-oriented economy; he started off cutting government expenditure by cutting the size of government and wastages; blocked stealing of government funds, and attracted Foreign Direct Investment (FDI) through concessions, tax holidays, and improved ease of doing business.

“President Milei flies regular business class for all his travels and does not offer the presidential fleet of Argentina for his son’s birthday; likewise, there is no settlement for his hangers-on and political allies through unwieldy and burdensome appointments to public offices,” Atiku stated.

The former Vice President drew further contrast between Nigeria and Argentina, saying he has a sure recipe for Nigeria’s economic restoration.

The former Vice President expressed his liking for the Argentine economic turnaround, saying: “I am attracted to the reforms in Argentina because Javier Milei’s stabilisation plan bears a similar emblem with my Recover Nigeria Plan; it is a plan that I am more than willing to disclose details of its workings with the current government in order to take Nigeria out of the depth of hunger and anger that we find ourselves.

“The plan includes strategic steps we must take to recover the economy and make it stronger, dynamic, resilient, and competitive; we had outlined plans to relax the fiscal constraints facing us to include:

• Improving spending efficiency and blocking leakages

• Saving money through:

a. A review of fiscal support for non-performing government enterprises and the privatization of those that cannot sustain themselves.

b. Steps to improve spending efficiency through a gradual reduction in government recurrent expenditures, ensuring that those expenditures reflect higher levels of service delivery. Over the medium term, recurrent expenditures should not exceed 45 per cent of the budget.

 c. A review of government procurement processes to ensure high levels of transparency, competitiveness, and value-for-money and eliminate all leakages.

“Unless, and until there are clear-cut policies and pathway to economic rejuvenation predicated on a leadership led sacrifice, there will be discontentment, especially among the youths, which may find expression in protests and for which it will be silly to continue to blame the opposition for,” Atiku said.

[TheNation]

THE nearest major offseason election in Nigeria is the governorship contest in Edo state, holding a few months away. Understandably, in nowhere else is the political temperature in the country as hot as Edo State where party primaries to select flag bearers for the forthcoming governorship election have just been concluded.

How the primaries were conducted by the 3 major political parties establishes beyond doubt that the average Nigerian politician is not only permanently egoistic but never sincere about what he or she does in furtherance of attaining political power. What the political parties have exhibited in Edo state in the last few weeks confirms that they are made up of people who exploit circumstances, instigate disagreements and have no interest in peace-making in any Nigerian political party.

The on-going pattern of political manipulation in Edo state refreshes memories of how Nigerian politicians usually speak from both sides of their mouths to suit every political development. During last year’s presidential election, it was easy to see how political leaders put a blind eye to every opportunity to unite the country. Instead, they subordinated national unity to self-interest. While some were unable to condemn negative mob actions, others refused to deal with basic issues affecting national unity.

Yet, both factions produced the same candidate and fought assiduously for him to win the governorship election at the time. The public never found out whether it was the winning faction that refused to be magnanimous or if it was the legacy group that was asking for more than makes sense. What was visible from then till now was that each side often drew attention to how the other side was uncooperative. In sane climes where there are selfless and genuine peace-makers in a political party, the crisis could not have lingered-on to meet the next set of electioneering.

But shamefully it did just as it has happened and is still happening in other parties where the primacy of ego reigns. It is that spirit of ‘I will never give up’ that propels one acting chairman who leads a rather rag-tag faction of the Labour Party to engage in a fight to finish with the national chairman who appears accepted by more members. No one in the party has been able to persuade the said leader to make peace with the disgruntled group so he can chair a more robust and united party.

Those aggrieved have thus continued to embarrass the party by throwing real or imaginary allegations at the leadership. If power has blinded the current leader from recognising the adverse impact which irritants can cause an entity, what about the other national leaders of the party, made up of one state governor and some federal and state legislators? Is each of these leaders satisfied with the daily negative publicity that the party is getting?

The same leadership failure resonates in the PDP which has left their Edo governor and his deputy to now function as enemies whereas from 2020 until a few weeks ago, they were models of what great joint ticket holders should be. Is it true that the deputy rejected earlier plans by some godfathers in their former party, the APC to use him to impeach his principal? How true is the report that the governor insisted that he would not accept his invitation to contest under the PDP except his deputy was allowed to run within him? Was the deputy given an open hand to run the state each time the governor travelled in a country where every other deputy was always a spare tyre?

Did the disagreement between the then Rivers state governor and his Edo colleague arise from the latter’s defence of his deputy? If so, is the current fight to finish between the two former friends not a failure of their party elders? As it is with all manipulations, no one knows how the brawl would end because our politicians are always self-seeking, no real group or party interest. When a politician is talking about zoning for equity, it is because it suits his personal interest. In Edo APC, there were reports that zoning had become obsolete hence a panel set up by the acclaimed leader recommended a few aspirants from all the zones.

The advantage of that arrangement was to ensure that strong aspirants from certain areas would not be excluded. But the same leader suddenly asked aspirants from his own zone – Edo North to step down, because their zone already had a Minister. Does the new posture of that leader not amount to zoning under the guise of altruism? Again, is Edo as a state not exposed to losing the best if all the strong aspirants from its Northern zone are excluded by fiat? It does not appear a coincidence that those who first showed disapproval of the outcome of the primaries hail from Edo North.

For instance, one aspirant who currently represents Etsako Central in the House of Representatives was the first to object to the results of the primaries. He no doubt has his reasons. Another leader from the zone, who was once a Commissioner for Information in the state even said APC held no primary in Edo state adding that the acclaimed winner was selected by the party leadership perhaps by remote control. In his words, “they don’t consider us as anything. To them we don’t matter. Those who matter are in the headquarters of the party. They should go and deliver the candidate since they know Edo state more than us. We will be here watching.”

Elections in Nigeria be they party primaries or general elections are never well handled because the politicians themselves have a way of introducing unwholesome practices to the process. The first effort by the APC yielded 3 or 4 winners with the supposed victorious aspirant scoring as much as 40, 000 inflated votes. Luckily for the party, they had the courage to drop one of their experts who has cognate experience in garnering more votes than voters. The PDP primary election figures looked like a consensus amidst some aggrieved aspirants who allegedly scored zero votes plus one who organized his own primaries and declared himself winner.

In the case of the Labour party, one aspirant had to send a petition to INEC before his compromised party officials rushed to hold a contest in the 24th hour. The other faction has also announced its own winner. From the summarized scenario, there is no doubt that the parties would once again, surrender their internal matters to the courts. The authentic factions, the results submitted by only the legally authorised officials, the likelihood that some bonafide delegates may have been disenfranchised and other sundry matters would be determined shortly by the judiciary.

We can only hope that the judgments would not have versions in which the written and the oral would contradict each other. As we await further action, it is certain that not much has changed. Membership registers are still inaccurate; party officials still belong to camps making it difficult for them to be fair and just in handling members. National leadership groups, Board of Trustees etc. are all relying on elected members to organize stomach infrastructure for them.

Under the circumstance, truth would always be scarce just as no one would be ready to play the persuasive role in conflict resolution. Rather than sue for peace, the so-called elders would help their benefactors to rig every contest. In other words, insincerity will always adversely affect the emergence of peace-makers in Nigeria’s political parties. Except steps are taken to redress the situation, making ours a true democracy will remain hard to achieve amidst political manipulation and materialism in Nigeria’s governance framework which encourages conflicts in a system that has no peace-makers