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THE NIGERIAN ECONOMY: WHERE ARE WE NOW?

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Nigerian economy

By Matthew Eloyi

As Nigeria’s economic fortunes seem to be waning below expectations, it may not be out of place to question the country’s economic pathway.

For several years, the catchphrase of ‘economic diversification’ has been strolling about in Nigerian government’s lexicon but despite several reforms, restructuring programmes and international loans, millions of Nigerians still live in abject poverty plus an unabated monolithic dependency on oil. The recent coronavirus pandemic complicated by the growing debt profile of the country and falling Gross Domestic Product (GDP) give new urgency to this issue.

Since the discovery of Oil in 1956 at Oloibiri in the Niger Delta, Nigeria has not gotten it right in getting value for the product. Instead, the government has solely relied on selling the crude oil only to import refined petroleum products for domestic use amidst subsidy outrage and uncertainty as to the total number of litres being used for domestic purpose, among other concerns.

According to experts, Nigeria’s economic potential is hindered by many operational issues, including obstacles to investment, inadequate infrastructure, tariff and non-tariff barriers to trade, limited foreign exchange capacity, and lack of confidence in currency valuation. Many are also of the opinion that Nigeria’s economic growth is held back by insufficient electricity generation capacity, which results in a lack of a reliable and affordable power supply.

Economic experts and other stakeholders have also stressed the need for the government to create policies and implementation strategies to tackle the challenges posed by the coronavirus pandemic while providing an enabling environment for investments to thrive. According to them, these would enable Nigeria to quickly come out of recession and improve the standard of living for the citizens.

The current issues causing hyper-inflation

One of the ultimate goals of a modern economic system is to keep prices of goods and services stable at rates that would not be injurious to the economic system. This is one goal that Nigeria has been finding difficult to attain as prices of goods and services keep rising continuously, thereby encouraging hoarding of unspent income, increasing the cost of borrowing and constraining investment spending by businessmen.

It is no longer news that the Nigerian economic environment is currently experiencing inflationary episodes and this has raised questions on the credibility and efficacy of the country’s monetary policy. According to experts, inflation can emanate from several sources including the ability of labour unions to use market power to demand for wage increases in order to correct parts of the profits accruable to entrepreneurs. Inflation is also said to be caused by developments in the product markets because of the existence of monopolistic market structures. It also occurs as a result of some form of internal or external shocks that may be driven by either exchange rate depreciation or an upward surge or spike in the prices of commodities. According to reports and expert opinion, however, the upsurge of COVID-19 pandemic has been the major cause of inflation since 2020 till date.

Despite the obvious continuous increase in prices of goods and services, the National Bureau of Statistics reported that the annual inflation rate fell for the eighth straight month to 15.40% in November 2021, from 15.99% in October. Meanwhile, the yearly core inflation rate, excluding the prices of agricultural produce, rose to 13.85% in November, from 13.24% in the prior month.

COVID-19 and downward spiral of the economy

Since the entrance of coronavirus (COVID-19) into Nigeria on February 27, 2020, the Nigerian economy seemed to have witnessed a lot of commotion. Few days after the importation of the virus from Italy, specifically on March 11, it was declared a global pandemic by the World Health Organisation (WHO). As the virus continued to spread globally and became more alarming, governments at all levels seemed to focus mainly on curtailing the spread within the country by imposing social isolation policies, which include closure of schools and businesses, movement restriction, etc. The shutdown of work and businesses as a way of curtailing the virus seems to have worsened the plight of Nigerians, as many were and are still struggling to afford food and meet other basic needs. According to reports, the palliatives provided by state and federal governments reached only a fraction of the vulnerable.

Most of the major effects of the COVID-19 pandemic on Nigeria have been economic, rather than health related. The earlier phase of the pandemic led Nigeria to its worst recession since the 1980s, with services and industry hit especially hard. This relatively stemmed from lockdown policies constraining people’s ability to go to work. As if that is not enough, the price of oil – which is more than 80 percent of Nigeria’s exports and more than 50 percent of government revenues – dropped more than 60 percent between February and May 2020.

In the later phases of the pandemic, even though economic activities began to recuperate, inflation started stepping in, especially for food items that are vital for consumption. By impeding economic activities, COVID-19 has worsened pre-existing operational distortions that were already causing inflation, even before the pandemic hit.

Monolithic dependency on oil and the imperative for diversification

Africa’s most populous nation, Nigeria, is blessed with numerous natural resources spread across different geographical States in the country. Agriculture and Extractive Minerals were the country’s major source of revenues in the 1950s but this soon changed after the discovery of oil in 1959.

According to research, the origin of oil exploration and exploitation in Nigeria started in 1959, at Oloibiri in present day Bayelsa State where the first oil well was discovered and the subsequent increase in demand of oil in the world market made the country to neglect agriculture, extractive minerals and other viable sectors of the economy, leading to over-reliance on crude oil. Today, oil and its associated products account for about 90% of Nigeria’s export revenue, and funds over 80% of the national budget.

With the ever-growing uncertainty of global crude oil prices and sluggish growth of the Nation’s economy, much opportunity to move away from underdevelopment despite its well established and abundant natural and human resources endowments has been lost due to varying reasons. Consequently, federal government inflow has been on a steady decline resulting from declining global oil prices, expanding population, slower economic activity, and hence leading to lower corporate taxes, declining consumption, lower value added taxes, exchange rates adjustments, lower trade related tariff revenues, as well as reduced portfolio and foreign direct investment accretion.

Diversification of the Nigerian economy remains the only way out of its present economic predicament and the best viable strategic option for the country in light of her many developmental challenges. The need for diversification is nothing new, as there has been a sustained push for several years to further grow and diversify the country’s economy, with the aim of improving the revenue base towards unlocking sustainable development.

Nigeria as a country must develop new ways to grow its economy by encouraging more investment and drawing attention to the non-traditional oil base to the Agricultural and Solid Mineral sectors, increasing its range of products for the international market and engaging new economic and trade Partners distinction to oil. As a matter of urgency, the Federal Government of Nigeria must encourage the diversification of its economy, as it is the only alternative and sustainable means to survive the international economic vagaries with the persistent volatility of global crude oil price with its attendant drop in net oil price over time. It is important that the nation must not accept erroneously the myth that oil provides a never-ending source of revenue as usual.

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Securing the Digital Frontier: Global and Nigerian Cybersecurity Landscape

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Securing the Digital Frontier: Global and Nigerian Cybersecurity Landscape
“Cybersecurity is much more than a matter of IT; it’s a matter of national security.”
Pauline Neville-Jones, former UK Minister for Security
By Ernest Ogezi

As the digital landscape rapidly expands, the global cybersecurity situation has reached a critical juncture. In an increasingly interconnected world, the scale and frequency of cyber threats continue to escalate, affecting individuals, businesses, and governments alike. October, designated as National Cybersecurity Awareness Month, serves as a stark reminder of the growing importance of cybersecurity and the collective responsibility we all share in securing our digital spaces.

Globally, the numbers paint a grim picture. According to a 2024 report by IBM Security, the average cost of a data breach has soared to $4.88 million, marking the highest figure ever recorded. This staggering figure underscores the severe financial implications of cyber incidents. Additionally, the number of data compromises worldwide in the first half of 2024 rose to 1,571, a 14% increase from 2023. These statistics highlight the growing sophistication of cyberattacks and the pressing need for more robust defenses. Ransomware, phishing, and advanced persistent threats (APTs) continue to dominate the threat landscape, with attackers constantly evolving their tactics.

The situation in Nigeria mirrors global trends but presents its own set of unique challenges. As Africa’s largest economy and a rapidly growing digital hub, Nigeria has experienced a surge in cybercrime activity. In 2022 alone, the Nigeria Inter-Bank Settlement System (NIBSS) recorded over 60,000 cyberattacks on financial institutions, amounting to billions in losses. The rise of digital banking, e-commerce, and the widespread adoption of mobile devices have made the country a prime target for cybercriminals. In response to these challenges, the Nigerian government has taken significant steps to bolster the nation’s cybersecurity infrastructure, with the National Information Technology Development Agency (NITDA) playing a pivotal role.

NITDA, the agency responsible for regulating and promoting Nigeria’s IT ecosystem, has been at the forefront of the country’s cybersecurity efforts. In line with its mandate to foster a safe and secure digital environment, NITDA has implemented a series of initiatives aimed at enhancing cybersecurity awareness, promoting best practices, and strengthening the country’s defense against cyber threats. The agency’s role in cybersecurity is multi-faceted, focusing on policy development, capacity building, and public-private partnerships.

One of NITDA’s key contributions has been the development of Nigeria’s National Cybersecurity Strategy, which outlines the country’s approach to combating cyber threats. The strategy emphasizes the importance of protecting critical infrastructure, safeguarding personal data, and building cyber resilience. It also focuses on creating a culture of cybersecurity awareness across all sectors of society. NITDA has been instrumental in implementing this strategy by working with stakeholders to ensure its effectiveness.

In October 2024, as part of National Cybersecurity Awareness Month, NITDA launched a nationwide awareness campaign to educate individuals and organizations on the importance of cybersecurity. The campaign, which aligns with the global theme “Secure Our World,” emphasizes the shared responsibility of all Nigerians in protecting the digital landscape. Through workshops, webinars, and educational materials, NITDA is working to equip citizens with the knowledge and tools they need to safeguard their digital assets.

A key focus of NITDA’s efforts has been the protection of Nigeria’s critical infrastructure, including the financial, energy, and healthcare sectors. Cyberattacks on these sectors can have devastating consequences, not only financially but also in terms of public safety. In response, NITDA has collaborated with both national and international organizations to enhance the cybersecurity frameworks of these industries, ensuring that they are equipped to defend against evolving threats.

Beyond its focus on critical infrastructure, NITDA has made significant strides in fostering a cybersecurity-conscious workforce. Through its Cybersecurity Awareness Program, the agency has trained thousands of IT professionals, law enforcement officers, and government personnel on the latest cybersecurity trends and defense techniques. This capacity-building initiative is crucial for ensuring that Nigeria has a skilled workforce capable of responding to the ever-changing threat landscape.

Despite these efforts, the scale and complexity of cyber threats continue to grow. The rise of ransomware attacks, data breaches, and phishing schemes poses significant risks to both the public and private sectors. NITDA recognizes that cybersecurity is not a static field but one that requires constant vigilance and adaptation. The agency is therefore committed to continuously improving Nigeria’s cybersecurity posture through policy updates, enhanced defenses, and ongoing education.

 

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The Fight for Women’s Rights in Nigeria: The Impact and Challenges of the VAPP Law

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By Bukola Taiwo

Women and social justice advocates in Nigeria have, through the years, tirelessly fought for the rights and protection of women through various means such as policy advocacy, policy implementation, and community sensitization, among others. Their efforts have been instrumental in bringing about significant legislative changes aimed at safeguarding the rights of women and vulnerable groups. One of the most notable achievements of their resilience and dedication is the passage of the Violence Against Persons Prohibition (VAPP) Law in 2015. This landmark legislation was enacted after 14 years of persistent advocacy and negotiations with different legislative assemblies.

The VAPP Law is a comprehensive legal framework that addresses various forms of violence against individuals. It provides detailed definitions of different types of violence, including physical, emotional, and sexual violence, and prescribes stringent sanctions for perpetrators. The law criminalizes acts such as rape, domestic violence, and other forms of abuse, ensuring that offenders are held accountable for their actions. The VAPP Law is notable for its gender-neutral and rights-based approach, which emphasizes the protection of all individuals, regardless of gender. As a result, over 30 states in Nigeria have domesticated this law, reflecting its widespread acceptance and implementation across the country.

Despite the rise in sexual and violent crimes in Nigeria today, which underscores the urgent need for robust legal protections, the legislature’s commitment to the comprehensive implementation of the VAPP Law appears to be waning. Contrary to expectations, there has been a motion to repeal the VAPP Law, spearheaded by Senator Jubril Isah of Kogi East. This motion has already passed the second reading with alarming speed. It is worth noting that in 2022, the same Senator Jubril Isah sponsored a similar bill to repeal the VAPP Law, although it did not succeed at that time.

Senator Jibrin’s push to repeal the VAPP Law of 2015 is based on his assertion that the law is “gender-biased.” This claim has sparked significant controversy and concern among advocates for women’s rights and social justice. The senator’s stance is seen by many as a blatant disregard for the safety and protection of women and vulnerable groups. Critics argue that his efforts to repeal the law undermine the hard-won protections that have been put in place to safeguard victims of violence, particularly women. The dismissal of the law’s intent to protect victims from violence, under the guise of promoting neutrality, is perceived as an attempt to roll back critical legal safeguards that have been established through years of advocacy and struggle.

The potential repeal of the VAPP Law poses a significant threat to the progress that has been made in addressing violence against individuals in Nigeria. It is imperative for advocates, policymakers, and the general public to remain vigilant and continue to push for the full implementation and enforcement of the VAPP Law. Ensuring that this crucial legislation remains in place is essential for protecting the rights and safety of all individuals, particularly women and vulnerable groups, who are most at risk of violence and abuse.

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LIBERIAN PRESIDENTIAL ELECTION: A SALUTE TO THE ADVANCEMENT OF AFRICA

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Ajulo advocates sale of underutilised correctional centres to fund education

LIBERIAN PRESIDENTIAL ELECTION: A SALUTE TO THE ADVANCEMENT OF AFRICA

Today, I write with profound appreciation, admiration, and utmost respect to commend and pay homage to an extraordinary individual who has exemplified the true essence of democracy and the power of accepting the will of the people.

It is with great honor that I take this moment to recognize and celebrate His Excellency George Weah, a man whose journey from the football field to the presidency has filled us with immense pride as Africans and shattered the misconceptions that democracy cannot thrive in our remarkable continent.

George Weah, a name that resounds with triumph, resilience, and an unwavering spirit. From the humble streets of Monrovia to the grandest stadiums across the globe, he captured our hearts with his exceptional talent, his grace, and his unwavering determination. However, today’s occasion is not solely to commemorate his remarkable achievements as a renowned footballer but also to acknowledge his courage in accepting defeat and embracing the collective will of the people.

In a world where political contests often sow seeds of bitterness and division, George Weah has emerged as a shining example of statesmanship, humility, and reverence for the democratic process. His momentous concession speech was not merely a personal triumph; it was a defining moment for Liberia, for Africa, and for democracy itself. Through his actions, he has unequivocally demonstrated that democracy can thrive and prosper on our continent, dispelling the notion that it is incompatible with our values and aspirations.

Let us also recall that George Weah is not the first African leader to exhibit such grace and humility in the face of defeat. Allow me, once again, to express my admiration for His Excellency Goodluck Jonathan of Nigeria, who, in 2015, accepted the people’s verdict and conceded defeat to His Excellency Muhammadu Buhari. These acts of statesmanship by leaders like George Weah and Goodluck Jonathan serve as testament to the fortitude and resilience of democracy in our continent.

Today, it is imperative that we recognize the urgent need to fortify and nurture democracy in Africa. Democracy is not a luxury; it is a fundamental right that should be accessible to all. It is a powerful force that empowers citizens to shape their destinies, voice their concerns, and hold their leaders accountable. Through democracy, we can ensure transparent governance, safeguard human rights, and foster inclusive development.

To strengthen democracy in Africa, we must focus on three crucial pillars: participation, accountability, and inclusivity. We must empower our citizens, particularly the youth, by providing them with education, knowledge, and skills that enable active engagement in the democratic process.

We must foster a culture of transparency and accountability, where leaders adhere to the highest ethical standards and the rule of law prevails. Additionally, we must champion inclusivity, ensuring that the voices of marginalized communities, women, and minorities are heard and respected.

Education, awareness, and civic engagement are pivotal components of a flourishing democracy. We must invest in quality education, equipping our citizens with the tools to critically analyze information, think independently, and actively participate in decision-making processes. We must cultivate an environment where the media is free, independent, and responsible, serving as a reliable watchdog to hold those in power accountable.

Furthermore, it is imperative that we establish robust and independent institutions that safeguard democracy, including an impartial judiciary, a resilient electoral system, and oversight bodies that combat corruption and ensure transparency. We must foster a culture of political tolerance, where divergent opinions are respected, and constructive dialogue is encouraged. Only through these collective efforts can we strengthen the democratic fabric of our nations and secure a brighter future for all Africans.

George Weah’s legacy will forever be etched in the annals of African history. His journey from a football superstar to the presidency of Liberia has inspired generations, shattered stereotypes, and proven that democracy is not merely an abstract ideal but a tangible reality that can uplift our nations. His extraordinary act of embracing defeat with grace and humility has set an example that must be emulated by leaders across the continent and around the world.

As I take this opportunity to bid farewell to a leader, a legend, and a true champion of democracy, it is incumbent upon us to carry forward the torch of his legacy. Let us honor George Weah’s courage, resilience, and unwavering belief in the will of the people.

Together, let us work tirelessly to strengthen and nurture democracy in Africa, ensuring that it remains a beacon of hope, progress, and prosperity for generations to come.

I extend my heartfelt gratitude to you, George Weah, for your remarkable contributions to our nation and to the cause of democracy in Africa. May your journey continue to inspire us all to strive for a better future, where the democratic ideals you epitomize will flourish and guide us towards a united and prosperous Africa.

May you find fulfillment and joy in the next chapter of your life. May God bless you, my friend, and may God bless Africa.

Dated 18th November, 2023

Dr Olukayode Ajulo, OON, FCIArb. UK
Chairman, Incorporated Trustees of Egalitarian Mission For Africa (EMA)

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