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Why Environmental Injustice Flourishes In Nigeria

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Environmental Injustice

By Jerome-Mario Utomi

Recently, precisely on Tuesday, November 21, 2023, I participated as a panellist at the Institute for Housing and Urban Development Studies (IHS), Erasmus University, Rotterdam, Netherlands, a panel discussion on The role of multi-stakeholder engagement in achieving environmental justice.

The gathering, which was held in Victoria Island, Lagos, formed part of training on Environmental Justice: Reducing Ecological and Social Inequalities through Effective and Participatory Land Governance.

Essentially, in my private study/preparation for the programme, the need to domesticate the subject became paramount to me. To achieve this objective; the following questions came flooding; what is environmental justice? Are there traces or evidence that it exists in any part of Nigeria? In what form or shape? Who are the people responsible? Who are the most impacted? What is the politics that kept it going? How can we creatively achieve effective development, implementation and enforcement of environmental laws, regulations, and policies without discrimination against the have-nots and vulnerable peoples? What strategy and tactics can policy and decision-makers at both Federal and state levels adopt to get the people directly involved in the decision-making process that affects their environment?

Providing answers to the above questions, beginning with the first, from what experts are saying, environmental justice is a crusade that advocates fair treatment and meaningful involvement of all people, regardless of race, colour, national origin, or income, with respect to the development, implementation and enforcement of environmental laws, regulations, and policies.

Viewed broadly, environmental justice, according to the world information search engine, Wikipedia, is a social movement to address environmental injustice, which occurs when poor or marginalized communities are harmed by hazardous waste, resource extraction, and other land uses from which they do not benefit. The movement has generated hundreds of studies showing that exposure to environmental harm is inequitably distributed.

Historically, the movement began in the United States in the 1980s. It was heavily influenced by the American civil rights movement and focused on environmental racism within rich countries. The movement was later expanded to consider gender, international environmental injustice, and inequalities within marginalised groups.

The global environmental justice movement arises from local environmental conflicts in which environmental defenders frequently confront multinational corporations in resource extraction or other industries. Local outcomes of these conflicts are increasingly influenced by transnational environmental justice networks.

Undoubtedly, when the above definition/explanation is juxtaposed with the ongoing degradation in the country in the name of development, it becomes glaringly obvious that environmental injustice exists here in Nigeria and remains a sin that all must share in its guilt.  But if this injustice which daily and harmfully impacts the poor and other vulnerable Nigerians is a challenge in other parts of the country, what is happening in the Niger Delta region, South-South Geopolitical zone is a crisis.

It is a brazen unfairness planted by the government and signposted in areas such as; a parade of multiple but obsolete environmental laws, poor enforcement habits and brazen lack of capacity to see through to programme monitoring and evaluation,  discrepancy in application and implementation of environmental, policies, programmes and initiatives.

This environmental ill is further accelerated by corporate organizations’ particularly the International Oil Companies (IOCs) noncompliance with international best practices in their day-to-day quest for profit maximization through crude oil exploration and production in the Niger Delta region and compounded by their erroneous understanding of call for Corporate Social Responsibility (CSR) as a dangerous fiction targeted at hand twisting the rich and mighty.

Out of many such examples, this piece will highlight evidence of incapacity to enforce compliance with environmental regulations and demands.

Fundamentally, many Nigerians with critical interest had hitherto believed that the advent of Nigeria’s Petroleum Industry Act (PIA) 2021, which was signed into law in the aforementioned years, and arguably the most audacious attempt to overhaul the petroleum sector in Nigeria, will solve the real and imagined challenges in the nation’s petroleum sector, and turn Niger delta region, particularly host communities to a zone of peace in their relationship with Crude Oil prospecting and exploration companies.

But today, facts have since emerged that instead of providing the legal, governance, regulatory and fiscal framework for the Nigerian Petroleum Industry and the host communities, the Petroleum Industry Act (Act), has contrary to expectation become a first line of conflict between crude oil prospecting, exploration companies and their host communities. Like other Acts that guided crude oil production in the past, PIA has similarly become a toothless bulldog that neither bites nor barks. In fact, analysts and industry watchers have come to a sudden realization that nothing has changed.

A tour by boat of creeks and coastal communities of Warri South West and Warri North Local Government Areas of Delta state will amply reveal that the much-anticipated end in sight of gas flaring is actually not in sight. In the same manner, a journey by road from Warri via Eku-Abraka to Agbor, and another road trip from Warri through Ughelli down to Ogwuashi Ukwu in Aniocha Local Government of the state, shows an environment where people cannot properly breathe as it is littered by gas flaring points.

To a large extent, the above confirms as true the recently published report which among other concerns noted that Nigeria has about 139 gas flare locations spread across the Niger Delta both in onshore and offshore oil fields where gas which constitutes about 11 per cent of the total gas produced are flared. Apart from the health implications of flared gases on humanity, its adverse impact on the nation’s economy is equally weighty.

Banking on what experts are saying, the major reason for the flaring of gases is that when crude oil is extracted from onshore and offshore oil wells, it brings with it raw natural gas to the surface where natural gas transportation, pipelines, and infrastructure are lacking, like in the case of Nigeria, this gas is instead burned off or flared as a waste product as this is the cheapest option. This has been going on since the 1950s when crude oil was first discovered in commercial quantities in Nigeria.

While Nigeria and Nigerians persist in encountering gas flaring in the country, even so, has successive administrations in the country made both feeble and deformed attempts to get it arrested.

The facts are there and speak for it.

In 2016, President Muhammadu Buhari-led administration enacted Gas Flare Prohibition and Punishment), an act that among other things made provisions to prohibit gas flaring in any oil and gas production operation, blocks, fields, onshore or offshore, and gas facility treatment plants in Nigeria.

On Monday, September 2, 2018, Dr Ibe Kachikwu, Minister of State for Petroleum (as he then was) while speaking at the Buyers’ Forum/stakeholders’ Engagement organized by the Gas Aggregation Company of Nigeria in Abuja among other things remarked thus; ‘I have said to the Department of Petroleum Resources, beginning from next year (2019 emphasis added), we are going to get quite frantic about this (ending gas flaring in Nigeria) and companies that cannot meet with extended periods –the issue is not how much you can pay in terms of fines for gas flaring, the issue is that you would not produce. We need to begin to look at the foreclosing of licenses’.

The threat has since ended in the frames as the Minister did little or nothing to get the threat actualized.

The administration also launched the now abandoned National Gas Flare Commercialization Programme (NGFCP, a programme, according to the Federal Government aimed at achieving the flares-out agenda/zero routine gas flaring in Nigeria by 2020.

Again, like a regular trademark, it failed.

Away from Buhari’s administration, in 1979, the then Federal Government in a similar style came up with the Associated Gas Re-injection Act which summarily prohibited gas flaring and also fixed the flare-out deadline for January 1, 1984. It failed in line with the leadership philosophy in the country.

Similar feeble and deformed attempts were made in 2003, 2006, and 2008.

In the same style and span, precisely on July 2, 2009, the Nigerian Senate passed a Gas Flaring (Prohibition and Punishment) Bill 2009 (SB 126) into Law fixing the flare-out deadline for December 31, 2010- a date that slowly but inevitably failed. Not stopping at this point, the FG made another attempt in this direction by coming up with the Petroleum Industry Bill which fixed the flare-out deadline for 2012. The same Petroleum Industry Bill (PIB) was protracted till 2021 when it completed its gestation and was subsequently signed into law by President Buhari, as the Petroleum Industry Act (PIA).

Despite this vicious movement to save the environment and its people, the Niger Delta challenge remains. So the question that is as important as the piece itself is; if this legion of laws/Acts cannot save the people of the region, who will? When will it complete its gestation period and deliver the targeted environmental protection/justice to the people of the Niger Delta region?

While answer(s) to the above question remain germane, this piece also identifies the government’s reluctance to appreciate development plans and reform programs from a rights-based perspective, as another fundamental obstacle to realizing environmental justice in the country.

This non-infusion of human rights perspective to development adversely acts as an impediment to the application of principles of participation, accountability, transparency and non-discrimination towards the attainment of equity and justice in development initiatives.

As clarified by the United Nations Independent Expert on the Right to Development, for a programme to be tagged development, it must require a particular process that allows the realization of economic, social and cultural rights, as well as civil and political rights, and all fundamental freedoms, by expanding the capabilities and choices of the individual.

To operationalize the above guideline, the state and federal government must shun all forms of discriminatory approaches to environmental designs, implementation and enforcement, as the concentration of environmental attention in one part of the state to the detriment of others is nothing but environmental injustice.

As stated elsewhere “the intentional involvement of traditionally underrepresented communities — especially low-income people of colour — is key to addressing local environmental justice concerns. Not only do these communities benefit from inclusion in the planning processes, but their knowledge can help those making planning and policy decisions in identifying activities of polluters and potential hidden hazards that they may not even realize exist.

This holds the opinion that both Federal and state governments must internalize these facts.

Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), a Lagos-based Non-Governmental Organization (NGO). He can be reached via Jeromeutomi@yahoo.com or 09032725374

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Tax, Inflation, and Still Broke: The Economic Divide

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Chiamaka Happiness Madueke Economic divide

By Chiamaka Happiness Madueke

What’s worse than being taxed? Being taxed invisibly and twice.

When the government tightens monetary policy; hikes taxes, and removes subsidies, all in one breath, you would expect the economy to breathe easier. But in Nigeria, the air seems to feel thinner.

Over the past few years, Nigeria has embraced a series of bold economic reforms; floating the Naira, removing fuel subsidies, and pushing revenue generation targets. These actions can generally signal fiscal discipline and long-term growth.

For example, the Nigerian government reportedly saved N3.6 trillion from subsidy removal in just the second half of 2023, but beneath the policy headlines lies a quieter story: one where debt servicing, inflation, taxation, and informal charges collide to create an invisible burden on everyday transactions.

Yes, between visible taxes, invisible inflation, and unofficial levies collected by everyone and no one, low-income Nigerians allegedly seem trapped in a system that squeezes them from every direction.

Let me digress for a second, but I’ll bring it back in a bit, I promise.

At first glance, taxation and inflation may seem like two separate forces: one a fiscal tool, the other a macroeconomic consequence. But in Nigeria’s current climate, they’re colliding in real time, shaping the daily experience of citizens and businesses alike.

The Taxation Puzzle

Nigeria’s tax-to-GDP ratio remains among the lowest globally; just 10.86 per cent as of 2022, according to the Federal Inland Revenue Service (FIRS). That’s well below the 15–25 per cent global average, and even lower than the African average. Yet, the informal economy, which contributes nearly 58 per cent to GDP, bears much of the untracked tax burden through local levies and fees.

This mismatch reveals a chronic revenue problem and this challenge becomes even more critical when you consider the growing cost of debt. But borrowing isn’t inherently bad; in fact, strategic debt can stimulate growth if channelled into things like power, roads, manufacturing, or digital infrastructure, projects that have a way of boosting the economy.

In an interview with Arise News, the CEO of Sterling Bank, Mr Abubakar Suleiman, said, “If you are not collecting enough revenue to service a debt, that is a problem”. But it is even worse when you’re not using that debt for productive, economic reasons; that’s a structural problem.

Then I ran the numbers, in 2022, Nigeria reportedly spent a large per cent of its revenue on debt servicing. That means most of what we earn do not go to schools, hospitals, or industrial development, they go to paying back interest. That’s like living on a credit card and using it to buy lunch, not build a business that would make profit.

In 2023, 64.5 per cent of the federal government’s total revenue was used for debt servicing, according to a BusinessDay analysis of data from the Budget Office.

Although this was higher than the 48.5 per cent in 2022, it was still less than the 71.8 per cent in 2021. In 2023, actual revenue was N11.88 trillion, slightly above the predicted N11.05 trillion, while actual debt service costs were N7.66 trillion, 16.9 per cent higher than the projected N6.56 trillion.

In comparison, Nigeria’s revenue for the fiscal year 2022 was N7.76 trillion, falling short of the N9.97 trillion projection. The fact that debt servicing increased to N3.76 trillion from an anticipated N3.69 trillion in spite of this shortfall shows that debt obligations are an unavoidable burden even in cases where revenues are below budget.

This pattern emphasizes how little financial flexibility the government has, particularly when it comes to financing infrastructure or social projects.

By September 30, 2024, Nigeria’s total public debt had climbed to N142.3 trillion, reflecting a N8.02 trillion increase from N134.3 trillion in June 2024. This 5.97 per cent rise was attributed not only to additional borrowing but also to the depreciation of the Naira, which significantly inflated the naira value of external debt.

The surge in debt has not been matched by a proportional increase in productive investment, raising questions about the sustainability and strategic intent of government borrowing.

Adding to the concern, the total debt service cost reached an estimated N3.57 trillion in just the third quarter of 2024 alone.

With limited income from formal taxation, the government allegedly struggles to adequately fund infrastructure, education, healthcare, and essential services.

In response, efforts are underway to:

  • Widen the tax base by formalizing more of the informal sector,
  • Improve compliance through digital platforms and data integration,
  • Rationalize outdated and inefficient tax incentives.

However, increasing tax pressure and its enforcement especially now can be politically unpopular and economically dangerous. Why? Because inflation is already eating through household budgets.

The Inflation Squeeze

Nigeria’s inflation rate has remained stubbornly high, largely driven by the rising cost of food prices, currency depreciation, removal of fuel subsidy and Monetary policies like floating the Naira.

As of early 2024, inflation was between 28–30 per cent, with core inflation also climbing. This diminishes buying power, worsens poverty, and increases the expenses of conducting business.

Essentially, inflation operates as an unnoticed tax, one that hits the vulnerable the hardest, especially low and middle-income earners whose wages aren’t keeping pace.

One key statement caught my attention in recent times, “We must choose between Taxation or Inflation.”

At first, that sounded a bit extreme. But the more I thought about it, the more it made sense.

Taxation is visible, structured, and can be progressive. Inflation, on the other hand, is unpredictable and regressive, a silent thief that spares no one, but affects the poor more because they have less to spend.

For low-income Nigerians, a controlled tax system paired with targeted public investment, might be more manageable than the current wave of inflation that raises the price of garri, beans, and palm oil every other week for Aunty Onyeka and thousands like her.

The “Other” Taxes We Don’t Talk About

But this brings me to a creeping question. What about the unofficial taxes? The ones no one talks about?

How are the indirect taxes collected from public transporters by local levy collectors accounted for? The levies collected from Mama Basirat who hawks around Oshodi market selling cooked food has watched the price of palm oil jump three times in six months while still paying a N500 “market ticket” every morning before selling a single plate of rice. Who tracks that revenue?

Yes, the most shocking revelation for me has been realizing that even hawkers – hawkers, who sell sachet water or fruit walking down roads and the street corners are being taxed in some areas.

Or rather, charged daily levies by local agents. And no, I am not condemning that, just that this issue raises some serious questions in my head:

  • Where does this money go?
  • Is it remitted to any official government account?
  • What public service is being provided in return?

If we zoom out, the irony becomes obvious. We keep saying Nigeria’s tax-to-GDP ratio is too low. Yet, many of the poorest Nigerians are already being taxed, just not in ways that show up in FIRS data.

They’re taxed by local councils, market unions, transport associations, and sometimes even self-appointed local revenue agents. Is this form of taxation? It’s neither progressive nor transparent, nor accountable.

So, What Are We Really Talking About?

When we push for increasing tax revenue, we often picture corporate profits or high-net-worth individuals. But the reality? Many of the levies, fees, and informal charges disproportionately hit those in the informal sector; drivers, traders, hawkers, the same people inflation is already punishing the most. It’s a vicious cycle.

Drivers hike transport fares to meet the levies. Hawkers bump up prices to stay afloat and somewhere in the middle, people start paying more for food, transport, and basic needs. So, yes, taxation may be more beneficial than inflation but only if it’s fair, formal, and genuinely

used to improve lives. Until then, we seem to remain stuck in a system where the poorest pay the most, twice over: Once through rising prices that their income can barely meet, and again through levies that don’t even show up in the books. The informal sector is already contributing indirectly through taxes and levies. But where that money goes, that’s the real mystery.

The discussion about taxation in Nigeria must expand beyond the official tax system to consider these informal levies. And that, more than anything, is what really got my thinking juices flowing.

Maybe the conversation shouldn’t just be about taxing more, but taxing better, and ensuring value for those already overburdened.

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How Nigerian Businesses Can Leverage Agentic AI for Growth and Efficiency

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Kehinde Ogundare Top 5 Zoho Platforms

By Kehinde Ogundare

Artificial Intelligence (AI) is revolutionising industries globally, and Nigeria is no exception to this trend. Businesses in Nigeria are increasingly exploring AI-driven automation to enhance efficiency, drive innovation, and remain competitive. However, AI adoption remains relatively low, as many businesses struggle to identify practical use cases that deliver measurable ROI.

A key emerging trend addressing this challenge is Agentic AI–a more advanced form of AI that enables businesses to create autonomous digital agents capable of handling complex tasks, optimising workflows, and improving decision-making. Unlike traditional AI models that react to user inputs, Agentic AI proactively learns, makes decisions, and automates entire processes, making it a game-changer for businesses looking to scale productivity.

The Rise of Agentic AI in Business

Globally, AI adoption has grown, but many businesses still hesitate due to concerns over cost, implementation complexity, and lack of clear ROI. According to McKinsey & Company, organisations that have successfully integrated AI-driven automation report efficiency improvements ranging from 20–30%. The key to unlocking AI’s full potential lies in specialised AI models designed for specific business functions–precisely where Agentic AI excels.

For example, in customer service, AI-powered agents can automate repetitive tasks, resolve issues faster, and enhance customer satisfaction. Studies have shown that nearly 88% of Nigerian consumers consider customer experience critical to their purchasing decisions. Agentic AI can help businesses meet these expectations by providing instant, personalised support.

In sales, AI-driven Sales Development Representative (SDR) Agent can analyse customer interactions, identify sales opportunities, and suggest targeted outreach strategies. Research highlights that businesses using AI in sales automation experience increase conversion rates and higher sales productivity.

Similarly, Human Resources (HR) operations are being transformed by AI-powered automation. Tasks such as leave management, employee onboarding, and performance tracking can be effectively handled by Agentic AI, allowing HR professionals to focus on strategic employment engagement. Deloitte indicates that AI-powered HR automation reduces administrative workload significantly, enhancing employee satisfaction and operational efficiency.

In IT operations, AI-powered Help Desk Agents streamline troubleshooting, diagnose issues, and execute quick fixes. This reduces downtime and significantly improves operational continuity and productivity.

How Zoho is Innovating with Agentic AI

At Zoho, we recognise the potential of Agentic AI and have developed Zia Agents for specific use cases within various products. Unlike generic AI models, Zia Agents provide contextual intelligence, real-time decision-making, and deep business-specific insights. Additionally, Zoho ensures that Zia agents operate within a secure infrastructure, fully compliant with various global privacy regulations, making it a trusted solution for businesses handling sensitive data.

We have also launched Agent Studio, an AI-powered platform that enables our customers, partners, and independent developers to create specialised agents for their specific needs. These can be hosted on Agent Marketplace, where they can be monetised. Nigerian businesses can utilise Agent Studio to build hyperlocal agents for various industries.

The Future of Business with Agentic AI

The shift towards Agentic AI is inevitable as businesses increasingly seek smarter, more autonomous systems to drive efficiency and growth. Organisations that embrace AI-driven today will be better positioned to compete in Nigeria’s evolving digital economy.

For Nigerian businesses looking to scale efficiently, Agentic AI  offers a practical and results driven approach to automation. By leveraging Zoho’s Zia Agents, companies can achieve higher productivity, ensuring long-term success in a competitive marketplace.

Kehinde Ogundare is the Country Head for Zoho Nigeria

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If Data is the New Oil, Where is the Refinery?

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Timi Olubiyi Data is the New Oil

By Timi Olubiyi, PhD

Internet users are growing at an unprecedented rate, and in Nigeria, for instance, internet users have expressed concerns and frustration over the data price increase in recent times, with many feeling its negative impact on their budgets and mobile smartphone usage.

Major networks such as MTN, Airtel, and Glo have seen a close to 50 per cent increase in Nigerian mobile data prices, with no known alternative available. This shows the significance of data and internet usage, highlighting its role in the digital age and the rapid growth of data and content creation across Africa.

From mobile phone data and e-commerce activities to social media interactions and government services, vast amounts of information are being created daily, which is accessible through internet usage.

The economic and technological landscape of Africa has been undergoing significant evolution recently. The continent is inhabited by over 1.4 billion individuals, and a larger portion of them create, use, and feed on data— which is a digital transformation.

The convergence of rising mobile phone usage, enhanced internet accessibility, and a youthful, technologically adept demographic has positioned Africa at the forefront of global discussions around technology innovation and data generation.

Recently, the phrase “data is the new oil” has gained significant traction in discussions related to technology, business, and the digital economy. But it is public knowledge that when it comes to oil, its availability is limited to certain areas of the world.

On the other hand, tech giants like Google, Facebook, Netflix, Amazon, Microsoft, and Apple control most of the world’s data.

According to a study by Sandvine in 2021, these companies are responsible for about 57 per cent of global data flow, and they have all commodified data. The huge amount of data controlled by these mega-companies is bigger than most small businesses and corporations. But, anyway, this would be another story piece for another time.

In the view of the author, if we want to know if data is really the “new oil”, we need to first look at how it builds value. Data by itself is not useful, just like in the case of oil. Raw data, without any processing or analysis, is merely a collection of information that requires interpretation.

For instance, an online store might keep track of what customers do, like what links they click on, how long they stay on product pages, and what they bought in the past.

However, this data remains mostly useless until it undergoes processing, analysis, and transformation into actionable ideas. Business managers in Africa should follow this path and should adhere to a mindset of ‘facts superiority over opinion’.

As businesses expand, an increasing number of individuals express ideas regarding the actions to be undertaken. However, it is beneficial to employ a data-insight mentality. All company metrics can be tested, measured and improved upon.

It is important to note that business owners/managers must have real-time access to the most important data in their business. Understanding which Key Performance Indicators (KPIs) affect revenue and profit is significantly more crucial than the revenue and profit figures themselves.

When data is cleaned up and analysed, it becomes really useful. Similar to refining oil to produce petrol, diesel, and other products, processing data yields beneficial outcomes. This is where Google and Facebook shine. They have put a lot of money into technologies like machine learning and big data analytics that can turn huge amounts of raw data into personalised ads, recommendation engines, and models that can predict the future. In this way, they make money for both their users and their owners.

In Africa, the idea of “data as the new oil” is particularly appealing because it could help the continent skip ahead in the normal stages of economic growth. Mobile phones let African countries get around the need for landline infrastructure.

Similarly, data technologies could help African economies get past older, resource-heavy ways of growing, leading to new ideas and long-term growth in fresh ways. In agriculture, for instance, data analytics and satellite imaging can help farmers figure out how the weather will behave, get the most out of their crops, and make harvest supply lines work better. Data-driven solutions in healthcare, like electronic health records (EHRs) and predictive analytics, can help find diseases, control outbreaks, and make healthcare better.

In the same way, data-driven education platforms can give students personalised learning experiences and give teachers and managers useful information about how students are doing and what they need. More so, businesses could be data-driven by setting up special internal research units on data, where insights can be generated to improve on decision-making.

Looking ahead, there are evident similarities between data and oil; much like crude oil, data is valuable. Data is not a naturally occurring resource like oil; it is a by-product of human activity. Oil is a limited resource, whereas data is plentiful and perpetually increasing. Raw data must be processed and analysed to derive significant insights and facilitate informed decision-making.

This is where artificial intelligence (AI) is relevant. AI acts as the ultimate data refinery, enabling the conversion of extensive information into meaningful insights. In contrast to oil, which is extracted and processed by a limited number of firms, data is more extensively disseminated, including various stakeholders in its collection, analysis, and utilisation.

Anticipating the future, data will probably witness ongoing advancements in many domains because it is a strategic asset for business and economic growth. With it, people, organisations, and governments can make better decisions. Good luck!

How may you obtain advice or further information on the article? 

Dr Timi Olubiyi is an entrepreneurship and business management expert with a PhD in Business Administration from Babcock University, Nigeria. He is a prolific investment coach, author, seasoned scholar, chartered member of the Chartered Institute for Securities and Investment (CISI), and a Securities and Exchange Commission (SEC)-registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments.

The opinions expressed in this article are those of the author, Dr Timi Olubiyi, and do not necessarily reflect the opinions of others.

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