The Presidency has replied to the 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, over the Nigerian National Petroleum Company Limited’s (NNPCL) $3.3 billion emergency crude repayment loan.

Naija News recalls that the repayment loan was secured on August 16, 2023, and was designed to bolster the naira and stabilize the foreign exchange market.

The transaction, arranged by the African Export-Import Bank, was not only intended to support the national currency but also to aid the Federal Government’s monetary and fiscal reforms.

Notably, three weeks ago, the Federal Government received $2.25 billion of the $3.3 billion foreign exchange facility from the bank.

However, in a statement on Thursday, Atiku called on President Bola Tinubu to provide a detailed account of the repayment loan, adding that the only available details were emerging from sources within the NNPCL.

He highlighted that the transaction is being facilitated by a Special Purpose Vehicle named Project Gazelle Funding Limited, which was incorporated in the Bahamas.

Reacting to Atiku’s query on Thursday, presidential aide, Otega Ogra said the Tinubu’s administration has taken the time to educate all Nigerians further on the loan at various times.

He said the loan also known as Project Gazelle, is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the federal government.

Ogra stated that NNPC Limited’s project is a forward-thinking financial strategy that aligns operational needs with broader economic goals by utilising future crude oil sales for immediate funding, enhancing liquidity, and contributing to Nigeria’s foreign exchange reserves.

He said the project showcases NNPC Limited’s operational autonomy and financial acumen while ensuring immediate liquidity, minimising the impact on future earnings, and potentially enhancing Nigeria’s credit rating.

Ogra noted that the repayments are strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.

The Katsina State Elders Forum has kicked against the planned decision to relocate some departments of the Central Bank of Nigeria (CBN) and crucial projects to Lagos State.

It also asked President Bola Tinubu to stop the scheduled relocation of the ongoing expansion project of the Umaru Musa Yar’adua International Airport in Nigeria’s best interest.

Speaking at a press conference held on Wednesday in the state capital, the Secretary of the Forum, Aliyu Mohammed, described the decision as unwarranted and unconstitutional.

Mohammed said President Tinubu risks losing the support of northern Nigeria unless the relocation of some CBN departments to Lagos is halted, adding that the move is a deliberate attempt to cripple the economy of the North.

He said: “The briefing is on recent unfortunate development brought up which we want the Federal Government to address.

“The intention of the Federal Government to move important projects from the Katsina Airport to Lagos, according to a letter we saw written by a contractor suggesting to the minister of aviation that the hanger project from the Katsina Airport should be moved to the south suggesting places like Enugu, Calabar or Lagos.

“This must be instigated by either the minister of aviation or one of his closest. They intend to do that for no disclosed reason. The reasons given to us were so clumsy. They mentioned things like unskilled labour, the distance between Lagos and Katsina, and lack of water, among other reasons.

“This project was awarded by the previous government in the year 2022 when the contractors moved to the site and started the job. They commenced work in earnest.

“It’s very surprising and unfortunate that the same contractor who initially agreed to do the job wrote a letter to the minister of aviation seeking for relocation of this very important project from Katsina to Lagos.

“We are calling on President Bola Ahmed Tinubu, the minister of aviation, and whoever is responsible that the Katsina Elders’ Forum is vehemently opposed to this relocation decision.

“We are not ready to accept it and we are warning the Federal Government never to temper with this all-important project. There is a University of Transportation located in Daura that could be very relevant to this all-important project in Katsina.

“Another area of concern is the movement of the Central Bank of Nigeria’s about 11 critical departments. This is a deliberate attempt to cripple the economy of the North. All these departments they intend to move out of Abuja will make it difficult for the North and Northerners to access the facilities or the services rendered by the bank.

“We are calling on President Tinubu to as a matter of urgency reverse the decision otherwise, the north definitely will not move again. They have set some reasons that are unattainable. It’s unwise for Tinubu to come today after the North elected him into power to make these decisions. He is going against the constitution of Nigeria.

“We are therefore warning him to reverse these unwarranted and unconstitutional decisions. Whoever is advising the President to make such decisions is an enemy of the country and is not interested in Nigeria’s development

“We are not ready to reelect him in 2027 once he continues with these decisions. Despite all the challenges of insecurity in the North, Tinubu is not making any effort to curb the insecurity. The Forum on behalf of Northern Nigeria and Nigerians in general want President Bola Ahmed Tinubu to revisit the decision and have a rethink

“He should rejig his cabinet by bringing patriotic Nigerians that will advise him to work in accordance with the interest of Nigerians.”

South-South leader, Edwin Clark has told President Bola Tinubu that the Minister of the Federal Capital Territory (FCT), Nyesom Wike is not ready to make peace with his predecessor, governor Siminalayi Fubara.

Clark insisted that Wike’s activities are clear indications that he is not ready for peace in Rivers State.

He shared his reservations via a statement in Abuja yesterday.

According to him, the nullification of the budget presented by Fubara shows that the crisis in the state is still ongoing.

The elder statesman lamented that while the Rivers governor has fulfilled his part of the 8-point pact issued by Tinubu, Wike has refused to do the same.

Clark wrote, “It will be recalled that Tinubu intervened in the crisis when he issued an ‘8-point pact’ to both parties which include: That the governor of Rivers State, Siminalaye Fubara and his allies should withdraw all court cases pertaining to the matter, even though this is against the 1999 Constitution and against popular opinion of Rivers people and indeed Nigerians, Governor Fubara and his associates, including the Speaker recognised by the court, Edison Ebie, have complied with this proclamation.

“The expectation is that the 26 decamped legislative members who had filed cases in court, would have also done same. But they refused, giving rise to the judgment delivered by Justice James Omotoso on January 22, 2024, stating amongst other things, the nullification of the 2024 Budget which was presented by Governor Fubara, passed and signed into law.

“Justice Omotoso said he based his judgment on the fact that the legislatures said there was no evidence of settlement of the matter before him.

“From the above, it shows clearly that Governor Fubara, obeyed Mr. President and carried out his directives, in violation of the 1999 Constitution ‘for the sake of peace,’ except that which he is currently precluded from doing by the courts. Even though majority of Nigerians were not happy with the terms of the settlement.

“Having done all these against the Constitution which Fubara, as Governor of Rivers State swore to uphold, Nyesom Wike is not seen, wittingly or unwittingly, by his latent or otherwise conduct, advancing peace in Rivers State.

“Let the truth be told to President Tinubu, Wike is not ready for any form of peace. Therefore, I call on the President, once again, to call him to order to allow the elected Governor Fubara, whom he Wike claimed he made to govern Rivers State, peacefully.

“However, I did not anticipate that Mr. President would proclaim an 8-point agreement that appears to be one-sided and unconstitutional, when I appealed to him to call Wike to order.”

Chief Whip of the Senate, Mohammed Ali Ndume, has replied Kogi West senator, Sunday Karimi, following the latter’s remarks on Wednesday.

Ndume said it is unpatriotic not to tell President Bola Tinubu the truth about the happenings in the country.

This is coming just as a former presidential spokesman, Dr Doyin Okupe has backtracked his comment on Ndume, stating that the ranking lawmaker was misunderstood.

The Central Bank of Nigeria (CBN) alongside the Federal Airports Authority of Nigeria (FAAN) had earlier announced it would be taking some critical departments to Lagos on the claims that they wanted to decongest its offices in Abuja.

Specifically, the CBN said the departments for relocation are the Banking Supervision, Other Financial Institutions Supervision, Consumer Protection Department, Payment System Management Department, and Financial Policy Regulations Department.

The plans by CBN and FAAN generated condemnations from different quarters, especially from the Arewa Consultative Forum (ACF).

But, speaking on a live television programme on Tuesday, Ndume, who represents Borno South at the Senate, said President Tinubu was being ill-advised by “Lagos boys” in the corridors of power.

“All these Lagos boys who are thinking that Lagos is Nigeria are just misinforming and advising the President wrongly,” Ndume had stated.

While former presidential spokesman Doyin Okupe, and Ndume’s colleague, Sunday Karimi earlier disassociated themselves from the Borno lawmaker’s comment, Okupe backtracked, stating that Ndume means well for the country.

Karimi said Ndume didn’t speak on behalf of the Northern senators, but Okupe was quick to state that he was impressed with the disposition, candour and loyalty of Ndume to his party and Mr. President.

But, speaking in response to Karimi’s comment, Ndume said he did not speak on behalf of the Northern senators or the Senate, but as a Northerner in support of the majority of Northerners and some Nigerians who are against the action of the CBN Governor, Olayemi Cardoso, and the Minister of Aviation, Festus Keyamo.

“With all due respect, I did not speak on behalf of the Northern Senators, or the Senate but as a Northerner in support of the majority of Northerners and some Nigerians who are against the action of CBN Governor and the Minister of Aviation,” Ndume said while quoting a former US President who said it is unpatriotic not to tell the truth, he said: “A famous former American President said ‘Patriotism means to stand by the country. It does not mean to stand by the president or any other public official, save exactly to the degree in which he himself stands by the country.

“It is patriotic to support him insofar as he efficiently serves the country. It is unpatriotic not to oppose him to the exact extent that by inefficiency or otherwise, he fails in his duty to stand by the country.

“In either event, it is unpatriotic not to tell the truth, whether about the president or anyone else,” Ndume said.

While quoting Theodore Roosevelt, Ndume added another quotation by the same great American President that: “To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public.”

In his official X account, @doyinokupe, Okupe said he spoke with Ndume for about 30 minutes and was impressed by his sense of reasoning.

“Sen Ndume @Malindume called me & we spoke candidly 4 more than 30mins. I am impressed by his disposition, candor and loyalty to his party and Mr President.

“He means well but obviously there are lapses in the Presidency that have not engendered better consultations on policies. He has my respect,” Okupe tweeted of Ndume

Sues NYSC Over Youth Service Violations

The Nigerian Bar Association Section on Public Interest and Development Law (NBA-SPIDEL) has filed a lawsuit against the National Youth Service Corps (NYSC), Minister of Art, Culture and the Creative Economy, Hannatu Musawa and Music producer, television presenter and music executive Kenny Ogungbe for alleged violations of the NYSC Act’s provisions.

In the suit number FHC/ABJ/05/90/2024 filed at the Federal High Court in Abuja on Thursday, NBA-SPIDEL is seeking determinations on whether Musawa and Ogungbe can voluntarily decide when to undergo the mandatory National Youth Service after qualifying..

They also queried the validity of the discharge certificates awarded to both defendants by the NYSC.

The plaintiffs allege that Musawa and Ogungbe failed to participate in the mandatory one year national youth service after graduating from university as required by the NYSC Act. They claim that Musawa enrolled in NYSC in 2023 but did not complete the service year, while Ogungbe only enrolled over 30 years after obtaining his bachelor’s degree.

The lawsuit argues that their actions violate sections of the NYSC Act related to the requirement for Nigerian graduates under the age of 30 to undergo national service. It requests the court to nullify Musawa and Ogungbe’s NYSC discharge certificates, bar Musawa from public office, and compel the Federal Government to prosecute the defendants.

In addition to Musawa and Ogungbe, the National Youth Service Corps and the Federal Government of Nigeria were also named as defendants for allegedly enabling or failing to prevent the violations.

The plaintiffs stated the lawsuit aims to promote the objectives of the NYSC scheme related to instilling discipline and national ethos in Nigerian youth. They expressed concern that the prominent public figures could set a bad precedent by flouting the rules without consequence.

Further relief sought includes compelling the office of the Attorney General of the Federation to prosecute the defendants for failure to make themselves available for service immediately upon graduation as stipulated in the Act.

This comes after NBA-SPIDEL in December 2023 issued a pre-action notice to the NYSC demanding the prosecution of Musawa and Ogungbe over the same youth service provision infringements. A subsequent meeting with the NYSC Director-General did not convince the legal body to back down.

Speaking on the lawsuit, NBA-SPIDEL’s Publicity Secretary Sadiya Saleh reiterated that Musawa and Ogungbe’s delayed participation till ages above the requisite 30-year age limit was unlawful. She added that their service year and discharge certificates were thus invalid and void.

The court will determine whether the allegations constitute violations of the NYSC Act warranting the requested remedies. However, the case has already ignited public debate regarding compliance with the mandatory national service scheme by high-profile individuals.

The National Chairman of the All Progressives Congress, Dr Abdullahi Ganduje, has said that the door of the party is open for Governor Abba Yusuf of Kano State to join the party.

Ganduje gave the offer on Thursday while addressing stakeholders of the party shortly after their meeting in Kano.

“I am calling on Governor Yusuf along with his members from the NNPP to defect to the ruling APC at the national level to ensure massive political growth of the state,” he said.

According to him, the party is also working hard to ensure more members of the National Assembly from Kano State and others from other political parties join hands with the progressives as the doors of the party remain open for all.

Ganduje added, “We will provide an enabling environment for all defectors for the overall political growth of our party, state and the country at large.

“I want to assure the good people of Kano State that the Federal Government will continue to initiate policies and programmes that will enhance the well-being of the people.

“I also want to assure you that there is a move for other Governors from various political parties to join our party.

“Very soon some Governors and members of the National Assembly from other political parties will also join the APC.”

According to Ganduje, the Kano state chapter of the party had accepted the verdict of the Supreme Court judgment in good faith and saluted President Tinubu for his love for the party.

He said the party would create an avenue that would unite its members and give room for more people willing to join the party.

He also noted that stakeholders of the party in the state had expressed appreciation to President Bola Tinubu for his support and love for Kano.

According to him, the stakeholders meeting had resolved that as a progressive and the largest political party in Africa, and in line with the initiative, the door of APC in Kano, remains open for hundreds of new members willing to join.

”The door of the APC is open to wooing new members to the party across the country and in diaspora at group or individual level, because of the good governance and sound promises of the party.

“So, to enhance unity, progress and development of Kano state, the stakeholders’ meeting expressed commitment to continue to pursue the path of dialogue with individuals, associations or political parties ready to join the APC,” he said.

He said that the meeting had resolved to convene an elaborate stakeholders’ meeting in Kano to strategise on how to unite the party for enhanced development further.

The APC National chairman appreciated members of the party for their maturity, support and patience during the period of the legal battle and called on them to remain calm and await the outcome of the expanded stakeholders meeting.

Among those who attended the meeting were National Assembly members and top members of the party from the state.

Comrade Joe Ajaero, the National President of the National Labour Congress (NLC), has issued a scathing critique of the current administration’s economic policies, decrying the impact of recent reforms on the average Nigerian citizen.

Speaking at the 21st Edition of the Daily Trust Dialogue organized by Media Trust Limited in Abuja on Thursday, Ajaero highlighted the hardships faced by the populace, notably pointing to challenges arising from the removal of fuel subsidies, privatization failings, and rampant inflation.

Other speakers at the event included the Minister of Information and National Orientation, Mohammed Idris Malagi; former Minister of Finance and National Planning, Shamsudeen Usman; the immediate past Director General of the Abuja Chamber of Commerce and Industry (ACCI), Victoria Akai; former Chairman of Nigeria’s Independent National Electoral Commission (INEC), Prof. Attahiru Jega, among others.

The 21st Edition of the Daily Trust Dialogue provided a platform for diverse perspectives on President Bola Ahmed Tinubu’s economic reforms. While some speakers expressed concerns about the impact on the common people, others presented a more optimistic view of economic projections.

However, the call for accountability, responsible reporting, and continuous constructive engagement emerged as common threads in the discussions.

Ajaero started his address by expressing discontent with the influence of international bodies on local economic decisions, citing the NLC’s recent confrontations with the World Bank.

“The directives to further increase prices of petroleum products originated from the World Bank and IMF. Two months ago, we had a tough time engaging with the World Bank, which was urging an increase in petroleum product prices,” he said.

Reflecting on the government’s attempts at privatization, Ajaero criticized the evident failure of such strategies, highlighting the sale of assets worth over $5 billion for only $1 billion.

He used the power sector as a key example of this failure, noting the high cost of privatization followed by an alarming N1.8 trillion annual subsidy.

“If you read yesterday’s newspapers, you would have seen that five power companies, previously valued at over $5 billion, are now set to be sold for just $1 billion. Despite past projections of a N1.8 trillion naira annual subsidy, these policies have not succeeded,” Ajaero added.

He drew an analogy, stating, “It’s like selling your house for N2 million and then giving the new owner N10 million for repairs. Such a political economy is unheard of elsewhere.”

Addressing an audience of key policymakers and stakeholders, Ajaero outlined the broader economic effects, such as the severe devaluation of the naira and the subsequent rise in the cost of imported goods.

He vividly described the impact of subsidy removal, with fuel prices soaring from N187 to around N700—a burden disproportionately shouldered by ordinary citizens.

The NLC President emphasized the predicament of everyday Nigerians, whose wages have languished behind the escalating costs.

“We are witnessing public disasters that yield private gains: a few individuals profit while the public suffers. The real losers are those who have seen the price of imported goods jump from N200 to N700. They are the ones whose transportation costs have quadrupled without any corresponding increase in their wages. They suffer from unimplemented wage increases. Ultimately, the common people are the losers, and economic policies have done little to alleviate their distress,” he explained.

In his impassioned speech, Ajaero also questioned the rationale behind non-justiciable policies that fail to serve the public good, as advocated by Chapter Two of the 1999 Constitution.

He argued that such policies only deepen the national debt, burdening future generations.

The NLC President criticized the government’s approach to economic growth, questioning the effectiveness of subsidies and palliatives and pointing out the adverse effects of poor policies on the populace.

“Negative publicity is not the real issue; the negative impact of poor policies is. As a professional with a media background, I can confirm that we report what we see. The harsh reality is that many Nigerians live on less than one dollar per day, and the situation has worsened after the subsidy removal. Locally produced goods have become exorbitantly expensive,” he clarified.

Ajaero pointed to the power sector as a stark example of a failed privatization effort and the inability of the private sector to effectively manage the power supply, leading to a ‘comatose state’ of the sector.

He urged the government to adopt a conscious master plan that benefits all Nigerians, rather than a select few.

Drawing attention to the recent decision by the central bank to charge a fee for cash withdrawals, Ajaero predicted that such policies would only worsen the economic crunch faced by Nigerians.

He called for a policy reversal, emphasizing the need for the government to reassess its strategies and consider the wider socio-economic implications of such measures on the populace.

Edo State Deputy Governor and governorship aspirant of the Peoples Democratic Party in the 2024 governorship election in the state, Philip Shaibu, has expressed confidence that the state governor, Godwin Obaseki, will support him in his ambition of becoming the governor.

The Independent National Electoral Commission had fixed September 21, 2024, as the election date.

Shaibu had in November 2023 said nobody can stop him from getting the governorship ticket of the party.

The deputy governor said having been in politics for 30 years and working with Obaseki in the last seven years to improve the state, he was in the best position to succeed his principal.

He said, “I can assure you that I will secure the ticket and my name and the party will be on the ballot. Nothing will happen because my name will be there.

“My name will be sent to INEC and I will be the candidate for the party in the election because I don’t do things without checking. I have gone round and consulted and I have been assured.”

PUNCH online reports that Shaibu declared his interest in contesting the 2024 governorship election in November

While speaking on Channels Television’s Politics Today on Thursday, Shaibu expressed confidence in getting Obaseki’s support.

“I can bet you that Mr Godwin Obaseki, the governor of Edo State, my boss and senior brother will support me.

“He has said it at the secretariat where we had our stakeholders meeting that whoever wins, he will support and whoever that will win is nobody but Philip Shaibu,” he said.

When asked if Asue Ighodalo, another aspirant for the governorship ticket got Shaibu’s support, Shaibu simply responded, “He (Obaseki) has denied supporting Asue even when we know he is supporting him. But that is not an issue for me. I am a homeboy and I understand the politics of Edo state.

“As somebody who is experienced, I have an edge over him. He is coming with private sector experience. I am coming with both private sector and public sector experience.”

During his formal declaration, Shaibu had said, “Nobody can stop my ambition.”

The deputy governor promised to deliver practical governance if elected governor of the state in 2024.

Shaibu, who vowed to deliver practical governance said, “They (Edo people) have asked me to go and run and they said I am the one they see not just as a street boy but original own boy that can live there.

“I can assure you that by the grace of God, we will deliver practical governance.”

No one can – or should – be surprised by the remarkable decline of foreign capital investment in Nigeria in Nigeria’s economy in recent months and years. The divestment of about N300 billion worth of investment by Procter & Gamble, GlaxoSmithKline, PZ, Unilever and others is simply logical from the standpoint of the business operators. But, as someone who advises some of the world’s largest institutional investors in emerging markets for a living, I believe this phenomenon calls for a more nuanced understanding of the role of foreign investment in economic growth and transformation if such investments are to be truly helpful to our economic aspirations. Outside of a role as part of a grand economic strategy, foreign investment may not serve the purpose of real economic transformation – which is a different thing from growth – whether it rises again or continues to fall. The GSM revolution in the early 2000s was a notable exception and game-changer.

Foreign investment is not just a quest for profits for investors, which is first and foremost what it seeks. It also is a barometer of external market confidence in how a country which has investment potential is managed. We must understand that “the economy” is not some stand-alone item we can separate from every other aspect of how we manage our affairs as a people and as a country. Issues of security, corruption, the courts and the rule of law, who we appoint to certain sensitive positions, all matter. So do how our public institutions are run – their strength, independence, and their effectiveness in achieving their mandates. It is the sum total of these things, together with real, knowledge-based economic management and purposeful political leadership, that determine both investor perception and how the economy performs.

Foreign direct investment (FDI) – “bricks and mortar” or equity investments in business enterprises in one country with capital from another – can create jobs. But this is more the case in some sectors such as agriculture and manufacturing, than in others such as the purely extractive plays in natural resources that have historically formed the bulk of FDI in African countries. Foreign portfolio investment (FPI) – passive investments in financial asset classes such as bonds and equities in the stock market – can help maintain or improve foreign exchange supply for a country such as Nigeria with an undeveloped value-added export economy and a dependence on a natural resource for foreign exchange inflows. This has created a problem for the value of the Naira and is a major reason foreign multinationals are exiting.

Countries with serious economic management have varying attitudes to foreign investment, depending on their overall economic development and transformation strategy. India is a rising economic power, but it is highly suspicious of foreign investment and is less welcoming of it. India is more interested in outward FDI in which its companies invest abroad, than in inward foreign investment in which it is the host of FDI. China takes a similar approach of care in receiving FDI, but has generally been far more open to it than India.

In Nigeria, our political leaders have spent billions on foreign travel chasing increasingly elusive foreign investors.   More work and valuable time at home creating the conditions that will attract such investors would have been a more productive investment. But the frequently misplaced efforts have been stymied by our macroeconomic distress, insecurity, and corruption. Weak physical infrastructure, capricious legal systems, absence of skilled manpower (made even worse by the seemingly endless “japa” wave of emigration), policy inconsistency (investors seek predictability), are a major challenge. The absence of adequate electricity is a foundational disincentive.  Rising poverty rates have also dulled the previous attraction of our 200 million population, as the middle class is under threat of extinction and people have less disposable incomes.

Beyond our present problems, and returning to the standpoint of economic strategy which ought to guide our future outlook, lies the question: How much does FDI/FPI really matter? Does FDI cause economic growth and development? Can investment inflows from abroad play a fundamental role in economic transformation? The answer is: “It depends”. There is a widely held belief that FDI is essential for development. It certainly can play an important role, but only if some conditions are met. FDI facilitated the economic transformation of China and Singapore. But these two countries did not blithely assume that FDI would work a miracle for them, the way we tend to in Nigeria. They approached incoming FDI from the standpoint of strategy. They kept a firm grip on the evolution of their economies and calibrated their FDI strategies to shifts in their domestic conditions such as cheapness of labor and the availability of skilled labor.

But there is evidence that FDI does not automatically trigger productivity. It can complement, but not substitute, LOCAL factors that are essential for development. We need to understand three important things about foreign investment. The first is that the real importance of foreign investment depends on the receiving country’s prior level of development. The economic growth impact of FDI is more in high-income developing countries than in low-income ones. In the latter, investments in secondary school education would matter more than FDI. Second, well-performing economies attract more investment than weak economies, which often experience capital flight.. Growth therefore drives FDI, rather than FDI driving growth. Third, the assumed technology-transfer benefits of foreign investment only happen when the investment is made in countries in which research and development (R & D) is a practical priority. We cannot honestly argue that this is the case in Nigeria. But it is in South Africa. In China, investment in R & D increased by 20% annually between 1999 and 2011, to more than $100 billion.

Foreign direct investment can concretely help lift a country’s economy if it is targeted at the real economy. But two most important factors must be present. These are (a) the presence of a skilled labor force and (b) infrastructure, in particular electric power, efficient seaports, and rail infrastructure. Nigeria is clearly deficient in the former, which brings back the conundrum of an education system that does not position the country for real productivity. A focus on the latter without the former cannot be transformational because there isn’t the required level of human capital to take advantage of the infrastructure projects for real wealth creation. This has been a fundamental error of economic thinking in Nigeria. The first and most fundamental condition of economic transformation is human capital. HCI (Human Capital Index) measures the contributions of health and education to worker productivity. Nigeria has one of the lowest human capital indexes in the world, ranked at 164 out of 169 countries by the World Bank in 2020. Singapore ranked at number one. Borrowing to build roads and rail in a country with nearly 20 million school-age children out of school is to put the cart before the horse. China’s first massive investments in the 1950s, 60s and 70s were in building skilled human capital.  In order words, Singapore and China built the essential foundation before FDI could be of any real help.
Seen from this perspective, we need to return to the drawing board. Rather than a misplaced  belief in the transformative power of FDI on its own, we should focus predominantly on two things – our own local investments, combined with types of FDI, that can help address our problems of weak human capital (e.g. technical/vocational, technological, and health-services education, and building adequate energy infrastructure. This is why you will see companies like Boeing in Egypt, but not in Nigeria.

We must have a real national strategy for FDI, as well as sub-national strategies that key into national priorities in a well coordinated manner. One of the most important priorities we must pursue is the diversification of Nigeria’s seaports. Nigeria’s Southeast region, which is a major trading and industrial hub, needs at least one major seaport. This will massively boost Nigeria’s economy. We need to align FDI with a transformational paradigm shift towards competitive advantage – the ability to source raw materials from anywhere, manufacture value-added products for domestic and export markets at competitive costs, as well as information and communication technologies and a diversification from extractive industries. Investors must be offered strong protections, and we must prioritize governance and institutions. I know from personal experience that investor confidence in the independence and strength of the Central Bank of Nigeria between 2009 and mid-2014 drove high levels of FDI and FPI towards Nigeria at the time.

Finally, we must adopt a national interest stance in engaging with FDI. Nigerian leaders often pursue foreign investment as if investors are doing us a favor. This is a sure recipe for a weak negotiating hand and a failure to identify, and protect, our own national interest. Capital seeks to expand and grow. Providing investors the opportunity to pursue that fundamental  interest must be on the condition that it advances another – the national interest of the FDI host country. Local populations must benefit from job creation, rather than investments serving the rent-seeking interests of political cabals. And investment, domestic or foreign, must be environmentally sustainable. Just ask the impoverished people in Niger Delta’s toxic wastelands of oil spills how much they have benefitted from the “foreign investment” in the region by the oil majors.

In this context, the extraction of solid minerals in Nigeria is the next frontier. The Federal Government’s new policy stance that investments in solid mineral extraction must have -value-addition components is a step in the right direction. But we must first see that happen in real life in a country in which its security apparatus appears unable to stop illegal mining of minerals in various places. To that policy should also be added a requirement for investors to establish technical training institutes for local youth who should eventually be employed in such industries.

*Prof. Moghalu, a former deputy governor of the Central Bank of Nigeria, is the CEO of the consulting firm Sogato Strategies LLC and Chairman of the Africa Private Sector Summit.

With the uncertainty surrounding the future of Nigeria international, Victor Osimhen, at Napoli, the Serie A champions have started shopping for a possible replacement for the striker, The PUNCH reports.

While refusing to give out details on his next move, Osimhen in his latest interview with CBS Sports said he had already made a decision about his future.

“The rumour is going around about me linked with the Premier League,” Osimhen told CBS Sports.

When you’re one of the hottest strikers on the globe, you expect this type of thing, and of course, the Premier League is one of the biggest and best leagues in the whole world.