Category: Comments

Chido Nwakanma is a communication strategist, journalist and journalism educator with extensive experience in IMC and strong interest in developing humanity. He can be contacted at chido@brandhaus.ng and via SMS on +234 (0) 803 723 1111; (0) 812 647 4335.

 

By several accounts, the South-East Summit on the Economy and Security in Owerri was successful on various metrics. The indices include the attendance and participation of the region’s governors, influential stakeholders, robust discussions, and the feel-good element of positive expectations. The communique was not ready on Thursday, 5 October 2023, but the organisers are preparing an Action Plan for the governors.

The region needed to convene. It has been some time since Prof Greg Ibe hosted the first of several gatherings at his Gregory University, Uturu, under the auspices of the World Igbo Summit Group. The first one raised great expectations, which the Igbo had yet to realise.

World Trade Organisation director-general, Ngozi Okonjo-Iweala, gave an outstanding speech that outlined the Trade & Economic Roadmap for the South-East 2023-2033. She started with a SWOT analysis of the region and an environmental scan. The strengths include industrious people scattered around the world, many entrepreneurs, and human capital. The South-East states of Abia, Anambra, Ebonyi, Enugu and Imo feature on the WAEC School Certificate Top Ten performers for 2022. Abia led, followed by Anambra. Weaknesses include excessive individualism that weakens the community bond, fragmentation, and insecurity.

The former finance minister asserted that good governance could solve the security challenges of the South-East. “The governance of our states can be stronger and deliver more. We are Ndigbo, and we should hold ourselves to higher standards. We need to do better.”  More on the Okonjo-Iweala South-East Recovery Manifesto later.

Expectations are abuzz in the region. The Secretariat of the South-East Governors Forum ran my article of 10 September outlining a new vista of hope (https://enugumetro.com/the-awakening-in-the-southeast/) in their new South East Journal released to coincide with the Owerri summit. Uche Nworah coordinated and sought views and perspectives from citizens. I shared the following. 

“What is your expectation from governors of the Southeast, and how will you assess their performances so far with emphasis on your state?

“I expect Big, Hoary, Audacious Goals (BHAG) from the South-East governors, particularly Abia State’s governor. A BHAG is a visionary and compelling goal covering 10-25 years that should stretch the government and citizens because it appears impossible. It should be Specific, Measurable, Attainable, Realistic and Time-bound. An example is the plan to restore water in Enugu within 180 days after more than 20 years of no potable water.

A BHAG in the South-East was the establishment of the University of Nigeria, Nsukka, as an institution not tied to the apron of any other. Others include Governor Sam Mbakwe’s industrial projects and iconic infrastructure in Imo State or Jim Nwobodo in Anambra State.

Such a vision has yet to happen in Abia State. However, when challenged, the Government has promised an agency to manage Aba; I expect it will include a clear vision for the city that will stretch the imagination of citizens and invite our participation. The only soul-lifting pronouncement is the vision of creating a six-lane driveway into the state capital. 

We need BHAGs for industrialisation or industrial revival, agriculture, AI, and human capital. South-East is the laggard in Southern Nigeria. Realising this and acting will cause a revival.

The stirring in Abia State

Abia State has stirred to indicate possibilities. Governor Alex Otti took two giant steps of flagging off work on expanding the access road to the state capital and the Abia Industrial and Innovation Park (AIIP) foundation on over 1,000 hectares of land in Owaza, in Ukwa West Council. Congratulations. The most critical following action is implementation.

Not surprisingly, the road expansion work ran into a storm on compensations. It requires sensitivity and sensibility. In 1987, I reported for ThisWeek magazine about the outrage of the Obiangwu Community over planned compensation for the lands the government acquired for the Sam Mbakwe International Airport, Owerri. They took to the streets. I read it in my office in Port Harcourt and drove down as the Regional Correspondent. The crux? The Imo State Government calculated compensation at below-market rates. Payment for such a massive loss of land, houses, memorabilia, and treasured haunts should be decidedly above the market.

For instance, Abia State expects to pay N770 million for 130 structures. Compensations would range from N2 million to N50 million per structure, according to a report in The Guardian.  It does not cut it at first glance. A straight division yields N5, 923, 076 (N5.9 million) per building. The experts would then have to examine the specifics. There are hotels on the Ossah Road of at least two floors (two deckings in Onitsha-speak); it is inconceivable that they would not fetch a minimum of N150 million compensation.

A Google check yielded the following. “The average price of land for sale in Umuahia, Abia, is ₦2,500,000 per plot. The most expensive land costs ₦10,000,000 per plot, while the cheapest costs ₦1,200,000 per plot.” Note that this is dated.

We expect wisdom and the spirit of “Is it fair to all concerned?” to prevail. Citizens should not get a raw deal as the development price for everyone but get a rewarding experience.  It is a worthwhile project.

Otti then broke ground for the Abia Industrial and Innovation Park (AIIP), “conceived to serve as a launchpad for our economic rejuvenation, leveraging the many advantages of this location, including but not limited to the oil and gas deposits, nearness to Aba and Port Harcourt cities, an abundance of skilled labour and a secure environment for smooth and uninterrupted production and other industrial activities.”

AIIP fits into the framework of BHAG. Governor Otti stated, “The Abia Industrial and Innovation Park shall exploit the oil and gas wealth in Owaza to drive the socio-economic development of all of Ukwa. This land has suffered untold neglect in the past two decades and more. In other parts of the state, we shall set up structures that tap into the communities’ significant raw materials and human resources to jumpstart the local economies.”

Otti added, “Our target is the international market. What we produce in our farmlands in Obingwa, Isiala Ngwa, Isuikwuato and Umunneochi, Bende, Ikwuano, Arochukwu, and Ohafia will be sold in markets and malls in Europe, America, China, South Africa and across every part of the world. The era of being restricted to the local Ogwumabiri market is over.”

AIIP will host modular refineries, petrochemical and fertiliser plants, and several other chains of enterprises. “Shell Petroleum Development Company (SPDC), Total Energies Limited and the Oil and Gas Free Trade Zone Authority partners in the project have expressed commitment” to its realisation, Businessday reported. Hon Benjamin Kalu, Deputy Speaker of the House of Representatives, assured federal government support.

More of the positives from the governor. “The location of AIIP is attractive because it has access to the Atlantic Ocean. At about 30 nautical miles from the Ocean, we shall set up a seaport here. All necessary approvals will also be sought for the designation of the Park as an export processing and free trade zone.

“AIIP is poised to make history as the first cluster in Nigeria, where LPG, CNG, Jet fuel, PMS and Diesel production tank farms will be co-located with other supporting infrastructure for more efficient and commercial production of our made-in-Nigeria liquid fuel. This will help eliminate the fluid fuel scarcity problems in the country. In line with President Tinubu’s policy thrust on domestic utilisation of the country’s abundant natural gas resources, we have advanced discussions with significant gas value chain players to establish CNG production facilities here in AIIP.”

AIIP has many optimistic projections, like the Industrial Parks of Anambra State. A caveat is necessary. The bureaucrats in both states got their governors to promise that the projects would create ten thousand (10,000) jobs each over an undefined period. Check again, gentlemen. At its peak in the 80s, Afprint Textiles in Isolo Lagos had on its roll 4000 workers. It was similar to the Kaduna Textile Mills. The Aba Textile Mill staff strength increased steadily from an average of 1000 in 1980 to 2900 in 1999. The average staffing of Nigerian textile plants also increased steadily over the same period, from 500 in 1980 to 2400 in 1999.

The point is that a projection of 10,000 jobs over four years needs to be revised. Ambition should be made of sterner stuff! The challenge is genuine and more than just for PowerPoint presentations or for the files of bureaucrats. According to the National Bureau of Statistics (NBS), 2022 unemployment rates for our states indicate Abia, 37.6%; Anambra, 33.8%; Ebonyi, 31.7%; Imo, 35.9%; and Enugu, 32.5%. These figures are all higher than the national unemployment rate of 33.3%, the highest in the world.

While we acknowledge and commend the governors for dreaming big rather than the previous worship at the altar of small goals, I urge them to remember that Jobs Are Priority Number 1 in the South East.

The unemployment challenge in the region manifests in a lack of job opportunities, underemployment, poverty, and insecurity. It accounts for the ease of recruiting our youngsters into what they would have dismissed as nonsensical.

Free trade zones, seaports, and such sound interesting.  The Enyimba Economic City, stymied in red tape, is a 9464-hectare tax and duty-free special economic zone that aims to transform Abia State, Nigeria.  The dry port in Ntigha has yet to take off despite the best efforts of its promoter, Bill Nkemdirim. In other words, implementation is the real deal for Abians.

Go forth, South-East governors. Dream Big. Execute masterfully. Change the narrative.

After the whole world moved from subsistence living — the state of having just what one needs in order to stay alive, and no more — to exhibit acquisitive traits, people have found that they can no longer afford not to deal with each other in other to have what they desire or what they could not produce, a practice known as commerce. The exchange of goods for services, goods for other goods and services for other services (trade by barter) and goods for money are daily occurrences in gregarious human communities. Commerce is the livewire of production and national efficiency. If there was no opportunity for exchange of goods, products and services, there would not be innovation and invention. Commerce is the motivation for improved production of goods and services as it allows for competition among different producers and marketers. In simple terms, commerce can be generally defined as the exchange of goods and services and all activities that facilitate business.

Commerce is the exchange of one’s valuable for another’s; for example, a car or real estate for money (financial transaction). It is the pillar of our financial system. It deals majorly with the production and distribution aspect of the economy. When a company produces something, that product is meant to be consumed in one way or the other, and in order for consumption to be facilitated, there must be a proper channel of distribution. Realistically, without commerce in today’s world, no one will survive because no one is self-sufficient. No individual can produce all that he or she needs to live a meaningful life, and it is as a result of this that every human being needs to depend on another in order to acquire means of living well. The commercial system of a nation includes the manufacturing system, markets, shopping malls, warehouses, transportation system, banking and finance, insurance companies, manufacturing companies, wharfs, services industries, business schools, etc.

Governments of all nations are responsible for the facilitation of commerce in their countries. According to Chapter II, Section 16 (1a) of the Constitution of the Federal Republic of Nigeria 1999, “The State shall, within the context of the ideals and objectives for which provisions are made in this Constitution, harness the resources of the nation and promote national prosperity and an efficient, a dynamic and self-reliant economy”.

“National prosperity and efficiency” is a factor of effective commerce in an economy. Section 15, subsection 3 of the Constitution provides that: “For the purpose of promoting national integration, it shall be the duty of the State to: (a) provide adequate facilities for and encourage free mobility of people, goods and services throughout the Federation”. The “free mobility of people, goods and services throughout” a nation is commerce.

It is due to this constitutional provision that roads and housing infrastructure are the major activities of most governments in Nigeria, without consideration for commerce development which is a form of investment, means of job creation and income generation. Commercial activities are enhanced by the government in developed countries by the provision and maintenance of centrally accessible dedicated areas for commercial activities known as high streets or central business areas (CBAs) and industrial estates. Security and infrastructure of these areas are enhanced by governments. Citizens are encouraged to go into industrialisation and commerce. Commerce has many importance; some of which are:

(1). It brings producers and consumers together. Everything that is produced on earth either manually or technologically is made for human consumption. Commerce makes it possible to link consumers and producers, either directly or through middlemen (retailers and wholesalers) and through the aid of advertisement, transport, insurance, communication, technology, market, etc.

(2). Commerce creates job opportunities. The growth of commerce, industry, and trade has brought about the expansion of agencies that facilitate trade such as advertising, warehousing, banking, transport, media, etc. In order for these agencies to function better, they need to employ people to man some available positions and by doing that, many unemployed persons are gainfully employed. Commerce is an activity that individuals can start without depending on others.

(3). It increases the gross domestic product (GDP) of the nation’s economy as well as creates wealth. As long as there is an increase in the production rate of a company, the income of the nation will continually increase. In developed nations where there is little or no mineral resource, commercial activities usually account for nearly 80 percent of the total income of the country. This helps greatly to earn foreign exchange through income from export and excise duties that are levied on imported goods. By doing this, commerce increases the national income and wealth of a nation.

(4). It aids the growth of industrial development. Commerce aids the smooth distribution of goods and services produced or rendered by industries in a nation. If commerce had not been in existence, industries will have found it very difficult to keep up with the pace of operation. Commerce helps to increase the demand for goods and also helps industries to get raw materials as well as other needed services.

(5). Commerce encourages international trade through identification of areas of comparative advantages and economy of scale. Through commerce, every individual, organisation and nation can secure a fair and equitable distribution of goods all over the world. With the help of the development of transport and communication, countries all over the world exchange those commodities that are already surplus to them and earn huge foreign exchange.

(6) Commerce is a tool for international cooperation and economic development. It integrates countries who are trading with each other. Commerce ensures the faster economic growth of international trade. It is one of the means of developing goodwill of states. Countries which produce quality goods and products are usually respected by those nations that patronise them. This is why some countries painstakingly produce more quality goods for export.

Countries must look into developing their commerce and how to ensure a positive “balance of trade” if they want their economies to be sustainable.

Nigeria’s inflation has raced to a very unsustainable level that everyone living in the country (both the rich and the poor) no longer finds it funny with the astronomically high prices of every good or service in the economy. This development took a new dimension after the 29th May 2023 announcement of fuel subsidy removal. One observation from everything happening, especially in the face of the lamentations in several quarters, is the obvious strategic role energy production and consumption plays in Nigeria’s economy.

The matter is not just one of “demand and supply” but a more serious case of poorly managed administrative responsibilities in the oil and gas sub-sector of the economy. This ultimately resulted in multi dimensional failures in the nation’s macroeconomic calculations, manifested in price instability and a tumbling local currency exchange rate. The resultant effect of this maladministration that has adversely affected the entire economic landscape for many decades has been the clear manifestation of a total collapse in virtually all aspects of economic productivity in the local manufacturing subsector. This observed sluggard economic attitude and unimpressive social status, eventually turned the country to a “consumption nation”, even on things we offer competitive and comparative advantage to the world market as primordial resources, like crude oil and gas.

Making critical observations from the microeconomic point of view, every individual citizen of this country has come to terms with the fact that the narrative has to change, as the situation on ground is very precarious. This is because it directly affects the aspects of energy consumption, especially the cost of transportation in the country. This present energy issue has proved one fact, that “energy is life” and the fuel for consumption, which drives economic and commercial activities, for overall prosperity. We are witnesses to all that play out in the economy at the moment. The point, therefore, is that, having identified an alternative window of escape from the present economic hardship, within the gas value chain in the energy sector, which satisfactorily aligns with the three critical factors in micro-managing the energy issues (vis-a-viz the economic viability, environmental sustainability and the social factor), why not fully embrace it?

The compressed natural gas (CNG) that is otherwise called “green fuel” in climate compliance parlance is the alternative way to go (economically) and it is also the cleaner energy of the future (for Nigerians). It roundly satisfies the aspect of energy efficiency (in both the environmental aspect and its social dimension). CNG is also readily available, in terms of reliability for energy security. CNG is also playing out, satisfactorily, to be very affordable and cheaper in terms of pricing (economically). Ultimately, it has an overall attractive advantage on the environment for environmental sustainability in the current global war against global warming with the ongoing United Nations (UN) pioneered climate action measures, for mitigation of the greenhouse gas (GHG) through decarbonization process of reducing carbon emissions responsible for all manner of environmental catastrophe (ranging from rising sea level, flooding that results from rainstorms, heat waves, droughts and desertification, wildfire, melting of the glacial ice, wind storms in the forms of tornadoes, cyclones, hurricanes; to other extreme weather conditions) being experienced globally.

CNG, therefore, as a cleaner energy (although not a renewable energy, but sourced as a fossil fuel) is presently being adopted in the federal government’s initiative (towards cushioning the economic impact of fuel subsidy removal), programmed under the energy transition plan project, has a strategic role and significant impact to play within the economy (if properly harnessed locally in an efficient manner). As it is already being popularly embraced by virtually everyone that has known about its attractiveness in terms of its economic importance (especially). We need to make inputs by narrating part of our experiences in shifting (through conversion) from the exorbitantly priced petrol to the much cheaper CNG.

CNG supply chain and distribution infrastructure within the economy appears to be posing a major challenge that might hamper its effective and efficient distribution flow to consumers (especially for vehicles, both private and commercial, that need to regularly refuel their tanks at various retail outlets). This is a critical area the government needs to quickly focus more attention (as a matter of urgency) because, without the infrastructure on ground (pipelines and refuelling stations), vehicles that have already converted are presently facing the product’s scarcity due to the fact that retail outlets are presently scanty in most of our metropolitan cities (like Abuja and others). Take for instance, in Abuja, a driver that wants to refuel from Garki II, will do a 30 minutes drive down to the Airport road, which is about 20 kilometres (one way trip), just to re-gas a 60 or 75 litre tank; and then spend the same 30 minutes going back (making another stretch of 20 kilometres). Something has to be done very quickly about this perceived handicap in CNG distribution networks all over the country otherwise the route for refuelling will not be sustainable but, shall become counterproductive to the national economic efficiency.

The simple template might just be attaching a refuelling point in all the existing fuel stations, all over the country (the regulatory body, NMDPRA knows better, how best to actualize this). Having that bottleneck resolved, there’s definitely going to be a significant turnaround in the overall commodity pricing index within the economy; which will impact favourably on the nation’s economic growth and development (all things being equal).

Olisa, a communications consultant, sent in this piece from Lagos.

 

From starting in 2014 with a record fleet of seven aircraft to earning the appellation of West and Central Africa’s largest carrier, Air Peace has continued to evince strength, reliability and consistency, becoming the aviation pride of Nigerians. The airline has not only put Nigeria’s aviation industry on the map; it has also shown the world that a Nigerian airline is capable of globally acclaimed feats across all fronts, including a matchless safety culture.

Air Peace’s vision is ‘to be ever dependable through the creation of seamless connections and network options for its domestic, regional and international markets’. This has steered the airline’s fleet modernisation and route expansion drive. In 2021, the airline took delivery of 5 brand new 124-seater Embraer 195-E2 aircraft- the first of its kind in Africa. The airline became Embraer’s launch customer for this aircraft model in the whole of Africa. These deliveries were part of the 2018 firm order for 13 E195s with purchase rights for seventeen of the same aircraft. Meanwhile, the airline also has existing orders for 10 Boeing 737 MAX 8 and 5 Boeing 737 MAX 10 aircraft in its bid to gradually phase out current Boeing 737 fleet.

Taking its fleet modernisation strategy a notch higher, Air Peace recently signed another milestone deal- a firm order for 5 brand new Embraer 175 aircraft and a planned maintenance facility with support from Embraer to service the aircraft locally. The new acquisition does not only make Air Peace the airline of the future but it is also in line with its determination to become the operator of the largest and youngest fleet of aircraft in Africa. It reinforces its commitment to enhancing its domestic and regional network connectivity and paves way for further regional expansion.

This firm order is valued at USD288.3M. Cumulatively, this sums up to 28 aircraft on concrete order. In the history of Nigeria’s aviation, no airline has ever placed such an ambitious order. Air Peace, dominating Nigeria’s aviation industry, has continued to set records that have remained unbroken, blazing the trail in route and fleet expansion to meet the increasing travel demand of its markets. The airline operates a mixed fleet of 13 Boeing 737s, 1 Dornier 328-300 Jet, 3 Boeing 777s, 8 Embraer 145s, 5 Embraer 195-E2s and 10 Airbus 320s. 

The airline is reputed for its no-city-left-behind catchphrase and seeks to achieve this ambition through the acquisition of ultra-modern aircraft, offering Nigerians world-class flight services. At the signing of the latest order for 5 brand new 88-seater E175s, the Chairman, Air Peace, Allen Onyema, stated: “This is another important step in helping to realise our ambition to connect the whole of Nigeria with the entire African continent, while also feeding passengers into long-haul flights from our Lagos hub. The acquisition enables us to continue delivering on our ‘no-city-left-behind’ initiative – connectivity is what our passengers, and Africa, demand. The deal also paves the way to establish local maintenance capabilities in Nigeria, with direct support from Embraer.” 

Commenting on Air Peace’s new order, VP Sales & Marketing, Head of Africa & Middle East Region, Embraer Commercial Aviation, Stephan Hannemann, said: “Air Peace’s strategic and innovative approach continues to make them a powerhouse of aviation success in West Africa. Already an E2 operator, it now makes sense to upgrade their ERJ145 fleet, offering passengers more seats and comfort with the E175. The commonality of the cockpits between the E1 and E2 fleet also simplifies aircrew costs and management. Acknowledging Air Peace’s significant investment in the acquisition of the Embraer fleet of aircraft, which has increased to 18 brand new firm aircraft to date, Embraer, in partnership with Air Peace is committed to directly supporting the establishment of local maintenance capabilities in Nigeria”.

Air Peace, the airline of choice, commenced commercial operations in 2014, less than 10 years ago, but has steadily shown immense growth and now boasts of 20 domestic routes, 8 regional and 5 international destinations, including Mumbai and Israel launched earlier in 2023, and is gearing up for Jeddah operations from October 31, 2023, with a promo fare of 699,000 naira for a return flight. 

Tony Elumelu, an entrepreneur, banker, philanthropist, is the founder and chairman, Heirs Holdings and chairman, United Bank for Africa (UBA) Plc.

 

As we celebrate another year of independence, it is time to reflect, to look in the mirror, for our nation and ourselves.

We know Nigeria, we love Nigeria, Nigeria is one of Africa’s most diverse and dynamic countries. We are a nation that excites, beguiles, and dreams. Yet, amidst our diversity and that potential that we all feel, we have faced so many challenges. These challenges ask us to answer a fundamental question: What is our collective responsibility in nation-building?

The destiny of Nigeria lies firmly in the hands of its people – you and me. I am an optimist and I believe strongly in the potential of our nation. We must work together to create the progress we so desire through innovation, and with unity in diversity.

In August, I spoke to the Nigerian Bar Association Annual General Conference in Abuja. At the time of a new administration – and without doubt some of our toughest times economically, I spoke about our collective responsibility as Nigerians, and what we must do to foster nation-building.

My prescription, my advice, my philosophy is simple:

Unity.

We must set our differences aside and be united with one ambition, and one duty – nation-building. Whatever our backgrounds, geographies, religions, and experiences let us ensure that our country experiences a true renaissance.

Celebrate our Global Success.

We know the potential of Nigeria.

We know the resources, human and natural, that Nigeria has at her disposal. We must learn to champion the successes of Nigerians globally – in international leadership positions at the WTO, at the UN, at the African Development Bank, at the Afreximbank, in technology, in music and entertainment, in business, in arts and in media, in film, in sports.

We see these replicated at home – what we need to do is unleash our potential, create that enabling environment in Nigeria.

Business Excellence.

The Nigerian private sector is showing globally our capability, our ingenuity, our institutionalisation. We have global businesses with Nigerian origins. For instance – UBA, the United Bank for Africa, the only African Bank that operates in the USA, as a deposit-taking bank. We are now in Dubai, Paris, and London – and just as importantly 20 other countries in Africa. Who would have thought 20 years ago that Nigeria would be home to Africa’s global bank!

The private sector must continue to surpass its own achievements and continue to put Nigeria on the map.

Shared Responsibility

Nation-building is a call to arms – a vital task – a necessity.

At its core, nation-building is the intricate process of forging a cohesive, harmonious, and united society, out of diverse individuals, cultures, and ideologies. It is the art of constructing a shared identity.

Transforming Nigeria is a journey that demands our collective dedication, building across political affiliations, ethnic differences, and socioeconomic differences.

One that is not the responsibility of our government alone. Great nations start with great people, not just great leaders.

A Shared Ambition Across Our Society.

Our private sector, our philanthropies, our civil society, all citizens must be brought together and be empowered – as real, valued and executing partners for this national renewal, this nation building.

Love For Country.

Let Nigeria be at the centre of our hearts. Let us invest in the brand Nigeria.

We have no other place, no other motherland than Nigeria. We must begin to show and share a sense of pride in Nigeria. We must begin to rekindle our hope and have confidence in Nigeria and in our leaders. Let us be proud of Nigeria.

The responsibility of nation-building falls upon each and every one of us. To truly build a strong and prosperous nation, we must be more conscious and dedicated in our efforts.

Let us be inspired by the lessons of history, motivated by the sacrifices of our forefathers, guided by the wisdom of our elders, and energised by the aspirations of our youth.

Together, we can build a nation we can all be proud of.

Celebrate 63!

It used to be a great privilege and status symbol to work at The Nigerian Stock Exchange up till 2010,  before the palace coup at the board sent virtually all of us in the management packing. The rest they say is history but our sympathy for the system remains absolute. During our days, staff attrition was almost nil, except internal restructuring that occasionally affected  a couple of staff but not to the level of ‘earthquake’. The Exchange at the time, a not-for-profit organisation, operated ‘departments’, which were later upscaled to ‘directorates’,  but the heads reported to the incumbent director general.

It is heartwarming and commendable that the demutualisation of The Exchange, which was initiated during our administration, became operational in March 2021, under the new management. The new structure of NGX, led by the Group Chief Executive Officer, Prince Oscar Onyema, comprises three wholly-owned subsidiaries: Nigerian Exchange Limited (NGX), the operating exchange; NGX Regulation Limited (REGCO); and NGX Real Estate Limited (RELCO). Given the Exchange’s mode of operation, the organisation is supposed to be attractive to the future drivers of the economy – Millennials, Gen Z and Gen Alfa,  to build a career. But the spate of staff attrition in the last two years suggests that all is not well in the market. Since demutualisation is just two years old, one can argue that it is too early to assess the relevance or otherwise of the new group structure of the Exchange. However, if morning shows the day, there is a need to examine what is fast becoming an underbelly of the group structure, the implications on the Exchange that promises to be the Nigerian investment gateway and the way forward.

The CEOs of the three subsidiaries do not report to the Group CEO. The companies operate in silos with individual Board and Management. Since 2010, CEOs of NGX at different levels have been coming from outside. Given the current structure, if Onyema retires, I do not think his successor will automatically come from within as the job will likely be advertised. This implies that internal staff shall have to compete with the external applicants, an indication of lack of succession plan in an organisation whose business is highly technical.

The  seemingly unattractive work environment that is unfolding at NGX has raised a red flag to suitability and sustainability of the group structure. The Nigeria Exchange Limited may be making money through listing and trading charges but are the other subsidiaries financially viable? Do they have enough staff to generate income?

At the pace that NGX is going, staff morale is dwindling by the day. The glamour of working at the Exchange is diminishing. There is nothing wrong with a group structure if it is properly managed. Singapore Exchange Limited (SGX Group) operates a conglomerate of nine divisions. Each division handles specific businesses.  The market trades in equity,  fixed income,  currency and Commodity. But the divisions do not operate in silos. Brazilian Stock Exchange demutualised in 2007 and operates a comfortable group structure .

In a group structure which is practised by some leading companies  in Nigeria, every staff belongs to the group. They are technically on secondment to the subsidiary and the group Chief Executive Officer is the most senior CEO.  The Group CEO can emerge from the CEO of any subsidiary as leading a subsidiary is a tutelage to lead the entire group.

The group structure  model  of  NGX appears strange and therefore esoteric. It is at variance with all-known models in this era of dynamic and flexible management systems. There is a compelling need by the various Boards and Management of each entity to address this ugly situation. It is either the NGX model is badly implemented or deliberately created to weaken the system and make it attractive to corporate raiders.

Corporate raiders are always on the prowl.

They simply  need  to pick up the  holdings of many shareholders, especially institutional ones, at a premium through a crossed-deal without infringing on the easy-to-breach Rule 17 of NGX which deals with issuers’ information disclosure. FMDQ is  already poised to execute the hatchet job. For a valid peer review, FMDQ’s silver spoon background should be discounted from its financial muscle. Its heavy weights are some of the key drivers of the Nigerian fiscal and monetary policy landscape. It is only in Nigeria where one can be a judge in his own court. After some initial resistance from the shareholders, FMDQ had in June this year snapped up 16.61 percent holdings of Artemis Limited and 5 percent stake of Leadway Insurance, totaling 21.61 percent  in CSCS through NASD PLC. FMDQ shot into fame with trading in debt instruments when it came on board.

Those who understand the market history will agree that trading in debt instruments was the strength of The Nigerian Stock Exchange during its formative years. It was more popular than equity when uncle Olutola Mobolurin and his peers were actively  engaged in manual trading. But at a point, the infectious share purchase through Initial Public Offerings (IPOs) and rise in the activities of shareholders’ associations overshadowed trading in debt instruments and the market became top-heavy in equity trading. FMDQ took advantage of the niche market. Currently, the bankers are the ones mainly reaping the dividends of the debt and currency market to the exclusion of the stockbrokers. It is not too late for NGX to reverse the trend.

The acquisition of CSCS shares would have been achieved about two years ago but for the Otunba Abimbola Ogunbanjo led Board that strenuously resisted all the moves by FMDQ during his tenure as the President of the mutual NSE. As a seasoned corporate lawyer, he knew the implications on the future existence of the Exchange. His voluntary resignation as the Chairman of NGX PLC last year was a great sacrifice to douse the raging tension ahead of the Annual General Meeting. He shall go into the Exchange’s history as the last President of the mutual Exchange  and the first Chairman of Nigerian Exchange Group PLC under demutualisation. By virtue of the monopoly it enjoys in the debt and currency markets, FMDQ has acquired sufficient financial muscle to launch a hostile takeover of NGX and turn it into its subsidiary.

It must be noted that the current management of NGX is doing a lot to further globalize the operation, increase market capitalization, boost capacity and democratise investments across financial assets. But NGX is a global brand and should not make itself a target for acquisition. The current structure is a booby trap. As a low-hanging fruit, it does not diminish the Exchange’s stature if the subsidiaries are turned into departments while the organisation operates a single but professional Board with eyes on corporate governance. This will enhance efficiency, save cost, create a level playing field for all staff and strengthen  the substance and essence of the position of the Group Chief Executive. This is a tough option that may likely hurt certain top positions and affect some staff. But it is the reality. 

Today, NGX is no longer a monopoly exchange and stockbrokers are multi-dimensional professionals. They can trade on FMDQ, NASD PLC, Lagos Commodities and Futures Exchange (LCFE) Afex and other platforms, including offshore. But  NGX is a legacy that should not be allowed to lose its original identity. It is the face of stockbrokers. Its existence is a product of the sweat of different generations. If the current situation is not addressed, stockbrokers may wake up one black day to discover that NGX is no more. At 62, it will be an irony of history if the premier Exchange in Nigeria surrenders to corporate raiders and loses its global identity, which has been rising for over three decades. The forefathers of this citadel of capitalism shall weep in their graves.

Money has had a huge impact on football in the last 50 years. In reality, football clubs in the United Kingdom are more than just businesses – they are community assets. A local government usually will not allow a stadium to be sold off without providing a new one for its local club. As a result, club managers know that they can risk financial failure without risking the life of the club itself. This is a version of the ‘too big to fail’ problem that affects the banking industry. UEFA introduced the system of ‘Financial Fair Play’ (FFP) to try to limit the spending of clubs. However, it is not clear that these regulations are really benefiting the fans. Given that community clubs never disappear, it is not clear why making losses is a problem to football, and there is a peril that restricting spending will just reinforce the power of already dominant clubs.

Egon P. Franck proved a business model for FFP in 2013, in “Financial Fair Play in European Club Football – What is it All About?”, whilst Thomas Peeters and Stefan Szymanski in Economic Policy, Volume 29, Issue 78, 1 April, 2014, presented the case against it. Some people look at the business model of sports leagues in the United States, where clubs have ruled on issues such as salary caps, the draft system for recruiting players and wide-scale revenue sharing. US leagues are certainly profitable, and a significant contributor to this is the absence of a system of relegation, which means that the consequences of sporting failure are quite limited. However, many fans of weak teams complained that their teams will never improve in that their owners have no incentive to compete, and many cities lack the opportunity to play at the highest level since there is no feasible mechanism to enter the league.

In comparing the American and European systems, it has been established that owners of American teams are often seen as “profit-maximisers” who view  professional sports as businesses and avenues for making money. In Europe (and most of the world) football clubs have generally been seen as “win maximisers” – spending as much as possible on the success of the team subject to breaking even. In 1971, Peter James Sloane wrote on “win maximisation” in “The Economics of Professional Football Revisited”. Stefan Késenne developed the concept of win maximisation in 1996 in “The Win Maximization Model Reconsidered – Flexible Talent Supply and Efficiency Wages”. This may just be a reflection of the competitive nature of the European system, but it also reflects a different attitude to the purpose of clubs.

While some clubs like Manchester United are run like businesses with shares sold in the stock exchange, some clubs (notably Barcelona, Athletico and Real Madrid in Spain and most of the clubs in the Bundesliga like Hertha Berlin, Bayern Munich and Hamburg) are not businesses only in the normal sense but membership associations which elect their management board. These clubs have other departments for basketball, athletics, chess, table tennis, lawn tennis, bowling and handball. Some clubs are sponsored by companies. These companies include Opel which sponsored Borussia Dortmund between 2017 and 2022 and GLS, the current sponsor since 2022. Even in England where clubs have long operated as limited liability companies with shareholders, the owners seem more interested in the prestige of ownership than making money. Football is a veritable tool for the advertising community (e.g. West Ham), individual owners of clubs (e.g. Roman Abramovich, the former owner of Chelsea) and companies (e.g. Qatar Investment Authority, the owners of Paris Saint Germain).

In 1998, the German Football Association (DFB) allowed the clubs of the Bundesliga, which are traditionally run as member associations, to transform their professional football departments into commercial companies. However, at the same time, provisions were made to make sure that majority of voting rights (50 plus 1) were within such companies and not in external parties or investors. This is against the principles of business. The non-business angle to football administration might change as Americans have started to buy up clubs in England – notably the Glazer family at Manchester United have taken a lot of money out of the club. There is a possibility that the European model might eventually be replaced by the American model, especially if the larger clubs decided to break away and form their own league. However, any such change may not be in the interests of fans, and could expect to meet widespread resistance, not least from politicians.

Football is globally seen as the biggest entertainment industry and can be political. One can imagine the re-emergence of the rivalry between football clubs like Stationery Stores, Enugu Rangers, Shooting Stars of Ibadan, Leventis United, Abiola Babes, Kano Pillars and Bendel Insurance in the Nigerian local league or Mighty Jets of Nigeria, Cotton Sport of Cameroon and Ashanti Kotoko of Ghana or Wydad Casablanca of Morocco versus Esperance de Tunis in African Champions League. Apart from the game of Rugby which has 15 team members, football is the game with the biggest team members with 11 players. It has the largest fans and because it is not easy to predict matches, football has the greatest fans in the world. This great fans means there are good business opportunities in selling tickets and sports souvenirs.

Football teams also sell advertising rights to companies and have hotels, restaurants, gyms, meeting rooms and sports stores around their stadium for income generation. Some have training schools for junior and feeder teams and trade their players to make money. Remo Stars Football Club, owned by Naijabet (pool-betting) sponsor, Kunle Soname, makes money selling their players to international leagues. Football is not only a game but a business, income and employment generator to any country that can develop it as a business concern. For corporate organisations, sport is tax-efficient as it can serve as a veritable advertisement tool while reducing profit before tax and eventually, tax paid to governments.

Abubakar A. Nuhu-Koko of the Sokoto Energy Research Center (Energy Commission of Nigeria), Usmanu Danfodiyo University, Sokoto, is a researcher in petroleum policy and economics, and founder and pioneer executive director, The Shehu Shagari World Institute for Leadership and Good Governance, Sokoto, Nigeria. He can be reached on +234 706 330 6887 or aanuhukoko4000@gmail.com

 

The solution to Nigeria’s electricity conundrum lies in renewable energy resources (sunshine, wind, biomass/bioenergy and river streams), which are abundantly available in almost all of the 36 states and the Federal Capital Territory, Abuja. Over the past decades attempts were made by various governments, both military and civilian administrations, to solve the electricity supply deficits in Nigeria in order to meet the very growing need of energy supply, but without much tangible sustainable results after spending huge sums of money.

The challenge of chronic shortage of electric power in Nigeria due to poor performance of the public power sector resulted in privatising it in 2013 under the now defunct Nigeria Electric Power Sector Reform Act, NEPSRA (2005). It created a situation where more than 200 million Nigerians living in a country that has an installed electricity generation capacity of around 13,700 MW which in 2020, only around 4,500 MW of it were available to them due to gas and other infrastructure and technical constraints – in comparison to South Africa, with less than 100 million inhabitants – but which generates 51 GW.

Nevertheless, Nigeria has come up with new energy and power policies and laws. One of which is the National Renewable Energy and Energy Efficiency Policy (NREEP) AND Vision 30:30:30 which calls for the installation of 30 Giga watt, by 2030 with a share of 30 percent renewables in addition to the latest Electricity Act 2023) which further devolved and decentralised electricity generation, distribution and regulation to subnational governments and private investors. Therefore, with these new enabling laws and policies harnessing of the nation’ bountiful renewable energy resources, utilising their potentials of energy efficiency, integrating renewables via mini grids and thus, scaling rural and suburban electrification targeted at the provision of reliable, affordable, and sustainable clean energy for the Nigerian people; especially provision of energy to disadvantaged parts of the population that have not had access to modern energy services, a pathway to success now looks clearer.  The good news is that in addition to the new policies and enabling laws, the European Union and German Ministry of Economic Cooperation and Development (BMZ) are supporting the Nigerian government in this direction under their flagship jointly funded Nigerian Energy Support Programme (NESP) implemented by Deutsche Gesellschaft für Internationale Zusammenabeit (GIZ) GMBH and the Nigerian Federal Ministry of Power and other local partner institutions

In order to meet this demand, the consideration and implementation of interconnected off grid/mini-grids based on green renewable energy resources (which Nigeria offers in super abundance) as possible solution, is hereby proposed. The literature on the advantages of harnessing renewable energy resources for generation of utility grade electricity and energy is beyond review in this brief narrative. For instance, it has been established in the literature that cheap green energy from renewable energy resources can be produced and even exported to other countries if political and corruption and security challenges are eliminated. These challenges discourage foreign and local investors from pumping money into large scale interconnected grids relying on renewable energy resources and successfully tackling the challenges of bringing sustainable clean energy to Nigeria.

However, with the constitutional amendment that removed electricity generation, distribution and transmission from the Exclusive list to Concurrent list and with new Electricity Act (2023) that replaced the Nigeria electric power Sector Reform ACT, NEPSRA (2005), subnational governments can now be involved in generation, distribution and transmission of electricity but only within the state – for instance, each local government council can be tasked to generate at least 2.5 MW using solar energy or a combination of conventional and renewable energy resource across each state. They can equally establish their own independent electricity markets by establishing the necessary regulatory agencies and laws governing them.

It is against the above backdrop that some Nigerians are urging the subnational governments to take this opportunity to provide decentralised off grid electricity in their respective domains using for instance, solar photovoltaic mini premium grids which are innovative approaches for attracting public private investment to the Nigerian Electricity Supply Industry (NESI) and delivering premium services (24/7) in ring-fenced areas and or under-served or unserved areas. Furthermore,  the decentralised or unbundled  mini grids are part of electricity distribution franchising projects developed in a manner of embedded generation or an additional generation source (mostly solar energy or small hydropower plants) which aim to deliver reliable 24/7 service. Hence, state governments and other willing private investors and key stakeholders need to actively participate and key into the implementation of the electricity Act (2023) for it to succeed. Doing this will improve the availability and reliability of electricity across the 36 states of the federation and the FCT and will greatly reduce Nigeria’s greenhouse gas emissions’  carbon footprint and accelerate Nigeria’s energy transition process.

Patriotism, a national virtue that lays emphasis on values and beliefs, a manifestation of love on a people through stewardship rendered in public service and governance, is the bedrock for national economic development. Patriotism involves loyalty, devotion, dedication with a sense of attachment, unquestionable integrity with vigorous support for one’s country. As a vast global traveller (having travelled widely in many continents of the world, in the course of business engagements), my interest was captured each time in places like South Africa, Greece, Qatar, Thailand and China, by the manner and ways foreign nationals show deep commitments in discharging their national assignments at their respective duty posts, selflessly protecting the interests of their countries (no matter the condition they found themselves at any point in time). These amazing observations made me have a rethink about my own country Nigeria, and what goes on in virtually all public institutions. As one keenly observed, the nationals enthusiastically working for their countries at their respective duty posts exuded diligence without guise, steadfast allegiance that is unconsciously inspired by love for their respective countries because they kept preventing damage and losses to their countries. Unfortunately, however, this is not the case in my own domestic clime, and it makes me lament and cry out. Why are we not doing it or getting it done the right way like these other nationals?         

Primarily, the Nigerian economy has most unfortunately drifted from the expected economic performance standards to an embarrassingly all time low in price stability (vis-a-viz the very worrisome Naira exchange rate that is currently around 1,000 naira per US dollar; interest rate and the biting inflation on all goods and services, including the commodity price index). This observation has been identified to be linked to an abysmally low administrative performance of those placed in authority to manage the national economy, and ensure economic security. This is a situation that bothers on productivity, and it is an inefficiency issue (administratively) that has adversely impacted national economic efficiency. However, the perceived ailing nation’s economy, which has been sliding steadily with speed to a near-collapsed state, can be recovered and improved upon by cleaning up the mess frontally, changing the narrative and doing things differently.

With a larger perspective, the global economy presently grapples with climate issues affecting all nations of the world with different forms of environmental challenges that involve great losses (lives and valuable properties). These issues are aggressively being pursued and vigorously addressed through advocacy programmes at the United Nations, with the ongoing climate action measures the whole world multilaterally signed in 2012 (the Kyoto agreement). The measures being taken involve application of a control mechanism on the rising global temperature (global warming) not to exceed +1.5℃; through a decarbonization process against the greenhouse gases emitted into the atmosphere, caused by the activities of man on energy production and consumption (sourced from fossil fuels). This challenge and threat to human life and man’s sustainable existence on earth focuses seriously on energy efficiency and its climate compliance, which aggressively advocates zero tolerance for abuse of environmental compliance.

Frankly speaking, the energy business in Nigeria’s Niger Delta region (artisanal refineries), popularly known as ‘Kpo Fire’, where crude means or method is applied to heat up the distillation kettles of those illegal/artisanal refineries, with naked fire that devastates the entire operating environment, polluting everywhere with thick smokes of carbon dioxide/monoxide (CO2/CO) from constant burning of localised wildfire, that fills the atmosphere with black dirty soot; is not legitimate and is unscientific in practice. This crude local and unscientific refining technique creates a potent source of health hazards. However, the unscientific and crude refining technique calls for urgent attention of the government, to encourage our indigenous technology and innovatively improve on the local method through scientific research and development (R&D). The government’s attention should also address both the environmental mess, find a solution that properly engages those illegal refiners legitimately, than throwing away the baby with the bathwater, as recently observed from the actions of the Pipeline Infrastructure Nigeria Limited that destroyed illegal refineries by setting them ablaze, thereby further escalating the global warming risks, instead of mitigating climate change.

The relevant regulatory organs of the federal government and other professional institutions (the likes of NESREA, NMDPRA, PTI Warri, etc) are needed to optimally and professionally do the needful for a scientifically proven and certified technology on the simple local technique, as an improved and affordable indigenous refining mode that could compete in terms of scientifically certified product’s yield standards, against the orthodox modular refining unit that is super-expensive (due to its content of a complex catalytic converter unit). Such indigenous but laudable strategic approach (if successfully actualized) would go a long way to reducing all forms of criminalities attached to these illegal and crude means applied by artisanal operators within the region (including crude oil theft). The supposedly scientifically improved indigenous refining technique could efficiently perform as our unique local refining mode that can prospectively reduce the pressure on FX by totally eliminating refined products imports.

Our energy imports, as observed, “automatically import inflation into the economy” (assuming the gigantic Dangote Refinery or the 4 government owned moribund refineries are excluded from this picture). I am, therefore, persuaded that local refineries must be up and running for provision of refined products, towards attainment of self sufficiency for economic efficiency leading to economic security, through patriotic administrative performance of those whom it is their responsibility, to rethink and efficiently exploit the hydrocarbon capital stock, than having it as stranded assets (now that fossil fuels are being phased out for energy transition process, globally), at the downstream subsector of the petroleum industry.

Protection of life and the sustainable conservation of the planet earth are significantly the most crucial tasks presently facing mankind. This is the current global challenge being tackled, observed as a life-threatening environmental issue and known as global warming caused by excessive accumulation of the carbon dioxide or greenhouse gas (GHG) that is generated and emitted into the atmosphere, through man’s daily activities in production and consumption of energy sourced from fossil fuels over a long period. The United Nations (UN) secretary general, Antonio Guterres has constantly raised alarms at annual global conventions against the imminent climate Armageddon that looms around man’s future existence, if urgent precautions are not taken to protect and safeguard the earth. Many years back (over thirty one years ago, precisely on 9th of May 1992) at Rio de Janeiro, Brazil, a UN framework was drafted and established as an international environmental treaty by 198 member countries of the world to combat “dangerous human interference with the climate system”, in part by stabilising GHG concentrations in the atmosphere; and became known as the United Nations Framework Convention on Climate Change (UNFCCC).

The five principles of UNFCCC were namely; Responsibility; Reduce overall climate impact; Educate for climate action; Promote sustainable and responsible consumption; and finally, Advocate for climate action through communication. These enumerated principles are exactly the reverse (in totality) of what is being observed by the actions and inactions of both the culprits/illegal refiners and the monitoring authority, the Pipeline Infrastructure Nigeria Limited (PINL). The PINL recently destroyed about 35 clusters of illegal oil bunkering and refining points in the creeks off the Imo River on the OML 11 acreage operated by NNPC’s Exploration & Production Limited in parts of the Niger Delta areas covering Zone 3 of the Eastern corridor that is comprised of four communities. Those destructions of their kettles and reservoirs were done by setting all materials ablaze thereby, “adding salt to injury” by increasing the atmospheric carbon density (including the crude oil/raw materials seized and the recovered processed products that they have refined crudely by burning and heating their kettles with naked fire that produce unimaginable amount of black sooths that pollute the atmosphere). All these actions, which include the activities of the crude oil thieves, involve oil spillage and environmental pollution. They collectively escalate the extent of environmental devastations that continuously render the affected natural habitats (water, land and air) almost irredeemable and irretrievable.

Looking at the ESG factor that is meant to spell out the global best practices in all business operations with specific focus on environmental matters, social problems and the governance control measures, both the state actors and those committing the crime pay less attention in the manner they copiously generate carbon emissions on the environment through setting fire on the illegal facilities and dispensing of the stolen fossil fuels. Apart from the sorry sight for the host communities where these incidents take place, little or nothing is critically considered as the fate of the natives and the inhabitants of those host communities. With the sad and most unfortunate developments in countries like Libya, Greece, Bulgaria and Turkey, every living being is expected to contribute in this raging fight against global warming by lowering carbon emission concentration in any part of the world. All hands really need to be on deck otherwise, we await the consequences of climate Armageddon sooner than anticipated. The horrifying impacts and the harrowing pains witnessed by the affected countries with losses of life and properties are better imagined than seen.

The next climate summit, Conference of the Parties (COP 28) is billed to take place in Dubai in the United Arab Emirates from 30 November to 12 December 2023. It is expected to avail the opportunity to put the world on a more sustainable path. The international climate action is considered at a decisive moment. Temperature records are repeatedly broken with impacts of rain storms, floods, droughts and wildfires that do occur and are felt in unprecedented manner. Nigeria should take it more seriously and make desperate efforts to join in contributing towards the fight than deploying a damaging and dangerous approach (as mentioned above) that exposes her citizens to dangers of being flushed away by natural disasters as currently being experienced in many parts of the world. Part of the adaptation measures and remedies include the green action of reforestation by massive planting of neem trees. It is further advised that, although Nigeria’s hydrocarbon capital stock (both crude oil, and natural gas especially) remains a huge asset to be exploited for future economic gains and development; caution is also seriously advised to implement the carbon reduction measures through carbon capture and storage (CCS) as part of a decarbonisation strategy towards maintaining a net zero emission target by 2050; wth the global temperature ceiling maintained at +1.5℃. These green actions are vital climate action measures needed to be taken for the sake of man’s future sustainable existence on earth.