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Nigeria’s bleeding economy and quest for a sound CBN governor

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President-elect, Asiwaju Bola Ahmed Tinubu

By Yakubu Sani

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At no time in history has the global social and economic dynamics been so challenged like now. It is coming at a time of Nigeria’s transition from one government to another. The good thing is that the president-elect, Bola Ahmed Tinubu, is a man of excellence, who has been roundly acknowledged as a recruiter-in-chief. He will go the breadth and length of every circumstance to get eggheads into his government. He is a man who doesn’t take no for an answer.

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A time of economic uncertainties such as this requires Nigeria’s best brains to ensure quick wins. Despite the scepticism by cynics, those who believe in the in-coming government are beginning to set agenda and putting timelines to deliverables. If this optimism must see the light of the day, competent Nigerians must be drafted to manage the economy. It has been said that the height of any building depends on its foundation. Hence, for Tinubu to demystify or shame cynics and nay sayers he must go for the best.

For any government to succeed and even surpass the expectations of its citizens, keen interest must be given to who heads the Central Bank of Nigeria (CBN) because the success or failure of any government depends largely on diligent and meticulous implementation of sound macro and micro economic policies. And it takes those who have learnt through the ropes.

Such technocrats are not in short supply in Nigeria. The country boasts of financial technocrats who have risen to the top in their banking career through dint of hard work, diligence and character.

Experience has shown that talent is not just enough. There is no doubt that the incoming president who is a recruiter of the best hands would also go for someone of impeccable character to head the apex bank. Nigeria has financial czars and unparalleled boardroom gurus who match the man Tinubu needs to handle the CBN, especially at such auspicious time as this – a financial expert who has remained unblemished all through his career in the banking sector.

A time-tested saying goes that “the reward for great work is often more work.” Similarly, the 26th president of the United States, Theodore Roosevelt, was famously quoted to have said, “The best prize that life has to offer is the chance to work hard at work worth doing.”

Throughout history, it has been proven true that the best way to get things done is to put square pegs in square holes. That is why governments around the world spare no efforts in identifying and paying anything to recruit men/women steeped in hard work, diligence, character and charisma to bestow on them more responsibilities because they have earned the accolades and credibility of a square hole.

The foregoing epitomises specific persons who are everything rolled into one. The CBN needs a governor who rose through dint of hard work, character and expertise. In view of the series of financial policy summersaults Nigeria has suffered in the last few years that has culminated in grave economic hardship for Nigerians, a technocrat with magical hands must be drafted to the CBN immediately Tinubu is sworn in to kick start the process of economic recovery and growth.

In retrospect, there must be one among the army of seasoned bankers who must have understood in clearer terms the Mahatma Ghandi’s assertion: “Live as if you were to die tomorrow. Learn as if you were to live forever.”

We have Alumi of some Ivy League institutions ranked among top echelons of training schools globally where they were trained in Advanced Management Programme (AMP). They attended the highest citadels of learning in the world like Havard University and University of Liverpool, among others. They are a perfect example of those that should constitute the economic engine room of any government.

Nigeria has financial magnates who have garnered immeasurable experiences and expertise to serve this nation. If we are serious about strengthening our currency and recalibrating our economy back on the path of recovery, we must go for such best hands. From antecedents, this is not an onerous decision for Tinubu because he has proven for the umpteenth time that he is a hunter of excellence and competent hands.

All Tinubu needs to do is to beam his searchlight on banks and sniff out serving Managing Directors/CEOs who have been at the leadership of dynamic teams that have turned financial institutions around from insolvent and loss-making banks plagued by high levels of non-performing loans, unprofessionalism to their current position as a growing export credit agency or development banks with core mandates in non-oil export development in line with government’s policy on diversification. There are banks that have now become strong players in financing and promoting export trade in Nigeria with very profitable operations.

I know of one who has in his Kitty 31 years of cognate experience in Banking, with numerous Nigerian banks, rising up to be the pioneer MD/CEO of United Bank for Africa in Chad and Zambia.

He specialises in the management of complex multi-cultural environments and employees at international levels. His experience in strategic forward-planning; operating within the tight financial disciplines imposed by ambitious targets which he helped to plan; methodical administration to deadlines and the application of modern leadership methods, through staff motivation and involvement in both decision-making and target-setting, clarity in communication, and easy personal inter-relations.

Over the course of his career, he had extensive experience in Development Finance (Export Development and Finance), Corporate Banking, Regional and Commercial Banking and Public Sector. He singlehandedly set up two International Bank subsidiaries with different cultural backgrounds that have left him confident in effective leadership, handling negotiations and the winning attitude.

As the MD/CEO of United Bank for Africa Zambia Limited between July 15, 2009 and December 2012 he was charged with the responsibility of setting up the operations of the bank in Zambia. This involves among others setting up the operational guidelines of the bank in line with the Group’s operational framework. He was also responsible for setting up Strategic Initiatives for entry into the Zambian banking space, employment of key staff, managing the setting up of the infrastructure of the bank.

He also obtained the first banking license for a Nigerian bank in Chad and became the pioneer MD/CEO.

Between August 2005 and June 2006, he was the Group Head, Telecoms & Tech Corporate Banking, UBA Plc. He successfully arranged the largest syndicated loan facility for Celtel/Zain Nigeria Limited; UBA’s participation was to the tune of $60 million and N75 billion. He also arranged vendor financing schemes for MTEL/Motorola $300m, as well as Vendor Finance Facility Celtel/Harris Communications with a total of over $120m. UBA became the 5th largest collector of telecom revenues during this period. He also set up the Risk Management framework of the subsidiary in line with the group standard and international best practice.

Between June 2004 and August 2005, he served as the Zonal Head, Standard Trust Bank Plc, Apapa, Lagos. Under him, the zone with a total number of seven branches became the most profitable zone of the bank nationwide.

The bumper resume extends to his time as the Group Head of Conglomerates and Manufacturing, Corporate Banking, Standard Trust Bank Plc between November 2003 and June 2004. In this capacity, he managed the bank’s portfolio for conglomerates and manufacturing. Among the companies managed are Dangote Group, Unilever Nigeria Plc; SCOA; Michelin Group; UAC Nigeria Plc; UTC Nigeria Plc; Mayor Group; Lee Group etc.
He was the Chief Marketing Officer, North, Standard Trust Bank Plc between April 2002 and October 2003. He was in charge of all the 11 branches and Public Sector Business of the Bank in the North Region of the Nigeria, responsible for the signing up of Zamfara State Statutory and IGR accounts.

Between April 2000 and October 200, he was the Regional Head, North Continental Trust Bank Ltd, Kano Pioneer Regional Director, after the bank’s conversion from merchant banking to commercial banking. He opened the branches of the bank in Kaduna, Kano, Damaturu, Maiduguri.

Within the backdrop of such a résumé and the dire economic diversification need facing our nation, the incoming government of Bola Ahmed must look urgently in the direction of such consummate technocrats. After all, the reward for good work is more work.

– Sani, an economic expert, sent this piece from Lagos

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Opinion

Between Jigawa state government and drop in grain prices

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By Adamu Muhd Usman.

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“If you can think of it, you can plan it; if you can plan it, you can dream it; if you can dream it, you can achieve it.”

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—Unknown author

Farming and livestock are Jigawa’s main occupations. The Jigawa people and its government are always interested in farming. So talking about farming, farmers, commodities and livestock prices are interesting issues for Jigawa people.

The prices of cash crops, grains, etc., are recording a steady drop in Jigawa State occasioned by the yearning and interest of the people of the state and also some state government commitment for both farming of animals and farm produce.

A check and investigations by yours sincerely showed and proved that the prices of many things had dropped by 20-30 per cent in the last four weeks and thereabouts in Jigawa state.

A 10 kg local rice farm (produced) in Jigawa State was sold at ₦9,000 as against the previous price of almost ₦12,000. Millet, sorghum, beans, wheat, Benny seeds, etc., indicated a similar price decrease.

People are of the opinion that the situation of a high supply of the produce from farms in Jigawa State has committed itself to producing a large quantity of farm produce and livestock to meet the demand in the region or the country at large. Surely, the increase in the supply of the produce from the farms or farmers had forced prices down in the recent past.

Others still attributed this price drop to the fear of Allah instilled in the hearts of hoarders because the clerics kept preaching against hoarding, which is seriously frown upon by God Almighty.

While some political critics viewed it as the bad economic policies of the President Tinubu administration, in which Allah used it to bring relief to the common man.

Quite obviously, Jigawa is amongst the three states in the federation that produce and supply the nation and some neighbouring counties with grains, livestock, fish and frogs. Jigawa state is also first in Hibiscus, sesame, gum Arabic, datefarm and also Jigawa is not left behind in the farming of cotton and Siemens. —-Jigawa is blessed.

But at the overround investigations, findings and outcomes, it was largely concluded that all these results and achievements were attributed to the people’s interest and passion for farming, but it is mostly because of the government’s commitments to assist, promote and enhance agricultural production in the state to make it a priority in Jigawa as a means of livelihood, occupation and income for the Jigawa populace and to be a source of internally generated revenue (IGR) for the state and also make the state feed the nation formula. Thank God, the airport (cargo) built by the former governor, Dr Sule Lamido, will now be very functional and useful.

The big question now is, can the state government sustain its support for the agricultural sector and continue to pay more attention and also sustain the package and gesture?

We hope that farmers in the state will continue to enjoy maximum support in crop production, including the use of mechanised farming. This will encourage livestock farming, which will go a long way to reduce or stop farmers’/herders’ clashes.

Also, the issue of soil erosion should be given due attention, and more roads should be constructed across the state in order to facilitate bringing out farm produce from villages and rural areas to urban areas.

As the saying goes, Success is getting what you want, and happiness is wanting what you get.

Adamu writes from Kafin-Hausa, Jigawa State.

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Opinion

Power, privilege and governance

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President Bola Tinubu

By Abiodun KOMOLAFE

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The concepts of power, privilege and governance are complex and multifaceted. Power refers to the ability to influence others, while privilege denotes unearned advantages.

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Governance encompasses institutions, structures and processes that regulate these dynamics. Together, these concepts raise fundamental questions about justice, equality and resource distribution.

It emphasizes the importance of considering marginalized groups’ experiences and perspectives. The main problem in Nigeria today is its political economy, which is rooted in rent-seeking and fosters a mindset that prioritizes patronage over production.

The country’s politics are characterized by a patron-client relationship, where everything revolves around government handouts rather than effective governance. This has led to a situation where “politics” in Nigeria is essentially a scramble for resources in a country with severely limited opportunities for self-improvement.

When French agronomist René Dumont wrote ‘False Starts in Africa’ in 1962, he inadvertently described Nigeria’s current state in 2025. Nigeria’s missteps have magnified themselves in the theatre of the absurd, such as the construction of a new vice presidential residence and Governor Chukwuemeka Soludo’s boasts about the lavish official residence for the governor of Anambra State, currently under construction.

It is to be noted in contradistinction that the newly sworn-in Prime Minister of Canada, Mark Carney, is looking for somewhere to live. The official residence of the prime minister, 24 Sussex Drive, the Canadian equivalent of 10 Downing Street, is in disrepair and uninhabitable. No Canadian government can dare ask the parliament to appropriate the $40m needed to refurbish the residence.

Canada’s Gross Domestic Product (GDP) exceeds $2 trillion, while Nigeria’s GDP is less than $400 billion. Still, Nigeria claims to be a giant! With an electricity generation capacity of less than 6,000 megawatts, Nigeria’s proclamation seems absurd, especially when compared to cities like Johannesburg, Singapore, Hong Kong and Mumbai. Even Lagos State alone should be generating, transmitting and distributing at least 15,000 megawatts, which would be a basic expectation rather than an achievement.

Nigeria today needs a comprehensive overhaul of its governance crisis to build a new political economy and social services that are fit for purpose. Although the government is on the right path in some ways, a root-and-branch transformation is still necessary.

A notable breakthrough is the decision to recapitalize development finance institutions, such as the Bank of Industry and, crucially, the Bank of Agriculture. This move is significant in a rent-seeking state, as it addresses the need for long-term capital – a prerequisite for achieving meaningful progress.

The development finance institutions require annual recapitalization of at least N500 billion, ideally N1 trillion. Achieving this necessitates a thorough cost evaluation of the government’s machinery, starting with the full implementation of the Oronsaye Committee’s recommendations.

The resulting cost savings can then be redirected to development finance institutions and essential social services like primary healthcare. Furthermore, the government should be bolder, if it can afford to be so, especially since there’s no discernible opposition on offer At the moment, the Nigerian political establishment across the board appears to be enamored by the position put forward by the leader of the Russian revolution, Vladimir Lenin, after the failed putsch. Lenin wrote the classic, ‘What is to be done?’

His observation is that revolutions do not take place at times of grinding poverty. They do so during periods of relatively rising prosperity. Significant sections of the Nigerian establishment believe that relatively rising prosperity could trigger off social discontent.

In their own interest, they had better be right. The caveat is that Lenin wrote ‘What’s to be Done’ in 1905. The world has moved on and changed since the conditions that led to the failure of the attempted takeover of government in Russia in 1905. Therefore, the Nigerian political establishment, for reasons of self-preservation, had better put on its thinking cap. Addressing power and privilege in governance requires collective action, institutional reforms and a commitment to promoting social justice. Nigeria currently lacks a leadership recruitment process, which can only be established if political parties are willing to develop a cadre. Unfortunately, the country is dealing with Special Purpose Vehicles (SPVs) instead. It’s rare to find leadership in Nigeria operating political boot camps to recruit and groom youths for future leadership roles.

This might be why many young people have a misguided understanding of politics, viewing it as merely a means of sharing the nation’s commonwealth. Mhairi Black was elected to the British House of Commons at 20 years old.

However, the key point is that Black had started becoming involved in politics at a young age. By the time she was elected, she had already gained significant experience, effectively becoming a veteran in the field. In Nigeria, politics is often seen as one of the few avenues for self-fulfillment. However, the economy is stagnant, with few jobs created in the public sector and limited investment opportunities.

This is a far cry from the 1950s and 1960s, when political parties were more substantial. Today, it’s worth asking how many Nigerian political parties have functional Research Departments. Besides, what socialization into any philosophy or ideology do our politicians have? Similarly to former Governor Rotimi Amaechi, many of those who currently hold power are motivated to stay in politics due to concerns about economic stability.

Of course, that’s why the Lagos State House of Assembly has had to revert itself. It is the same challenge that has reduced the traditional institution to victims of Nigeria’s ever-changing political temperature. It is the reason an Ogbomoso indigene is not interested in what happened between Obafemi Awolowo and Ladoke Akintola.

It is also the reason an Ijebuman sees an Ogbomoso man as his enemy without bothering to dig up the bitter politics that ultimately succeeded in putting the two families on the path of permanent acrimony. Of course, that’s why we have crises all over the place! May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!

KOMOLAFE wrote from Ijebu-Jesa, Osun State, Nigeria (ijebujesa@yahoo.co.uk; 08033614419)

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Opinion

Rivers of emergency dilemma!

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Governor of Rivers State Siminalayi Fubara

Byabiodun KOMOLAFE

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Rivers State is now under emergency rule, and it’s likely to remain so for the next six months, unless a drastic change occurs.

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If not managed carefully, this could mark the beginning of a prolonged crisis.

In situations like this, opinions tend to be divergent. For instance, some people hold the notion that the security situation and the need to protect the law and public order justified President Bola Tinubu’s proclamation of a state of emergency in, and the appointment of a sole administrator for Rivers State.

However, others view this act as ‘unconstitutional’, ‘reckless’, ‘an affront on democracy’, and ‘a political tool to intimidate the opposition’. When we criticize governments for unmet expectations, we often rely on our own perspectives and biases.

Our individual identities and prejudices shape our criticism. However, it’s essential to recognize that not all criticism is equal. Protesting within the law is fundamentally different from protests that descend into illegality. Once illegality creeps in, the legitimacy of the protest is lost.

As John Donne wrote in ‘Devotions Upon Emergent Occasions’, “Never send to know for whom the bell tolls.” A protest is legitimate when it aligns with societal norms, values and laws. But when protests are marred by violence or sabotage, they lose credibility. Without credibility, protests become ineffective.

Regarding the validity or otherwise of the emergency rule in Rivers State, it is imperative that the Peoples Democratic Party (PDP) governors approach the Supreme Court immediately. They should seek a definitive clarification on whether the proclamation is ultra vires or constitutional.

For whatever it’s worth, they owe Nigerians that responsibility!May the Lamb of God, who takes away the sin of the world, grant us peace in Nigeria!

Abiodun KOMOLAFE,ijebujesa@yahoo.co.uk; 08033614419 – SMS only.

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