Economy
Succession and Obligation of Leadership
By Jerome-Mario Utomi
Am I a good leader? I do not know and I guess no one else does. The people, the future and history will stand judged and I will accept their judgments no matter what they might be. Nevertheless, I am fully convinced that I am leading my people, not only on the right part but on the only one available -Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirate (UAE).
Presently, the global community is in agreement that Nigeria is blessed with abundant resources –both human and natural. But in spite of these resources, development professionals are concerned that the nation is equally littered with a huge number of ‘coercive’ and selfish leaders as against truly ‘democratic, pace-setting and coaching’ leaders.
Essentially also, Nigerians, particularly the poor masses, are aware of these disappointing performances of their leaders and need no one to remind them. They are visible realities.
Aside from these failures exacerbated by public office holders/policymakers non-recognition that the efficiency of the government does not only affect the performance of the public sector –but affects that of the whole country including the private sector, Nigerians have in the past six years watched the country lie prostrate and diminish socially and economically with grinding poverty and starvation driving more and more men into the ranks of beggars, whose desperate struggle for bread renders them insensible to all feelings of decency and self-respect while the privileged political few continue to flourish in obscene and splendour as they pillage and ravage the resources of our country at will.
Also rings apprehension is the awareness that with less than two years to the expiration of this administration, there is neither a sincere desire among elected officials to engage best minds to help get the answers and deploy the resources we need to move into the future or engineer a sustainable process of generational change in the nation’s leaders structure via recruitment and allocation of rightful leadership positions to, but youthful Nigerians.
From the above realities, the following questions may be asked; what is the obligation of leadership in any given society, state or nation? What is giving a boost to Nigeria’s poor leadership that is notoriously reputed for, and devoid of a sincere succession plan?
Why is such negative leadership practice gradually becoming a norm in Nigeria? Why are public office holders in Nigeria reluctant to alleviate the real condition of the poor, the deprived, the lonely, and the oppressed or at the very least, get into their lives and participate in their struggle? How come public office holders in Nigeria are never willing to give, train, or admit youths into leadership apprenticeships? Why is this practice of leadership type characterized as self-centred and non-coaching? Why is Nigeria’s leadership ideology not based on considerations such as; meritocracy, pacesetting, people-focused but primarily on mundane factors such as tribal/ethnicity, religion, power rotation and federal character? Why has leadership in the country seriously failed to provide security and pursuit of the economic welfare of citizens which are the only two constitutional responsibilities of the state which all leaders must achieve?
To many, the answer to the above is signposted in leaders’ ground propensity/penchant for corruption, cronyism, backdoor or under the counter leadership approach/ practices. Others argue that more often, leaders believe that knowledge is power and that they retain power only by keeping what they know to themselves. Their implicit strategy is to preserve their leadership discretion by deliberately leaving the rules for success and failure vague. In their calculation, it is better to maintain control by keeping the people at arm’s length as bringing them close would represent a threat.
Could this be the only explanation?
Definitely not! There also exist public office holders in Nigeria who understand power as the ability to protect their interest and not as an opportunity to engineer social, political and economic prosperity.
However, one can make a stronger case as to why Nigeria’s leadership challenge is a crisis.
To support this claim, this piece will bring to mind/cast a glance at how Kuen Yew, Pioneer Prime Minister of Singapore used creative leadership prowess characterized by talent hunt, education, leadership apprenticeship/ coaching, to stamp out leadership mediocrity in Singapore, and in its place, install sustainable leadership excellence for the nation via the establishment of succession structure/culture that allows brilliant minds to collide and create.
Let’s listen to Lee; our greatest task was to find the people to replace my ageing ministers and me. My colleagues and I had started to search for younger men as possible successors in the 1960s. We could not find them among the political activists who joined the PAP, so we scouted for able, dynamic, dependable, and hard-driving people wherever they were to be found.
In the 1968 general election, we fielded several PhDs, bright minds, and teachers at the universities, professionals including lawyers, doctors, and even top administrators as candidates. In by-elections in 1970 and 1972, we fielded several more. We soon discovered that they needed to have other qualities besides a disciplined mind able to marshal facts and figures, write a thesis for a PhD, or be a professional.
Leadership, he added, is more than just ability. It is a combination of courage, determination, commitment, character, and ability that makes people willing to follow a leader. We needed people who were activists with good judgment and interpersonal skills. The search became more urgent at each subsequent election because I could see that my colleagues were visibly slowing down.
To do this, Lee said something interesting; I had to find and get into the office a group of men to provide Singapore with effective and creative leadership. Had I left it to chance, depending on the activists coming forward to join us, I would never have succeeded. We set out to recruit the best into the government. The problem was to persuade them to enter politics, get themselves elected, and learn how to move and win people over to their side. It was a slow and difficult process with a high attrition rate. Successful, capable professionals and executives are not natural political leaders, able to argue, cajole, and demolish the argument opponents at mass rallies, on television, and in parliament.
To see how wide the net must be cast for talent, I had only to remember that the best ministers in my early cabinets were not born in Singapore. Three-quarters of them had come from outside Singapore. The net that brought in my generation of leaders was thrown in a big sea that stretched from South China across Malaysia, to South India and Ceylon.
Whenever I had a lesser minister in charge, I invariably had to push and prod him, and later to review problems and clear roadblocks for him. The end result was never what could have been achieved. When I had the right man in charge, a burden was off my shoulders. I needed only to make clear the objectives to be achieved, the time frame within which he must try to do it, and he would find a way to get it done, he concluded.
Indeed, while the above account in my view sums up the obligation of leadership, this piece must underline without fail that Nigeria and Nigerians need leaders like Lee of Singapore and Mohammed bin Rashid Al Maktoum of UAE to lead them not only on the right part but on the only one available.
Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via je*********@***oo.com/08032725374.
Economy
OPEC Crude Output Falls to 37-Year Low Amid Iran Disruptions
By Adedapo Adesanya
Crude production under the collective Organisation of the Petroleum Exporting Countries (OPEC ) fell in May to its lowest level in at least 37 years as the blockade of Iran by the United States and disruptions in the Persian Gulf, continued to limit output.
According to a Bloomberg survey released on Friday, output from the organisation’s 11 current members, including Nigeria, dropped by 1.22 million barrels per day to 16.33 million barrels per day last month.
Iran accounted for more than half of the decline. The data excludes the United Arab Emirates (UAE), which departed the cartel last month after six decades of membership.
War between a US-Israeli alliance and Iran has reduced oil supplies from the Middle East, largely closing the Strait of Hormuz waterway. Saudi Arabia, Iraq, the UAE and Kuwait have been forced to cut crude production. Iranian shipments face additional pressure following a US blockade of its ports imposed in mid-April.
Iranian output fell by 710,000 barrels per day to a five-year low of 2.34 million barrels per day in May, the survey showed. Central Command reported that US forces have redirected 127 commercial vessels to enforce the blockade of all maritime traffic entering and exiting Iranian ports.
Kuwait recorded the second-largest decline last month, with production falling by 310,000 barrels per day to 490,000 barrels per day, less than one-fifth of pre-war levels. Saudi Arabia, the group’s leader, saw output decrease by 240,000 barrels per day to 6.57 million barrels per day.
The production reductions have not prevented OPEC and its allies from raising quotas over recent months, continuing a year-long process of restoring output halted several years ago.
This comes ahead of a meeting scheduled to be held on Sunday, June 7, where a sub-group of seven members is expected to increase targets by 188,000 barrels again in July. The session is one of four online meetings OPEC and its partners plan to hold that day.
Delegates indicated the alliance has plans for two additional monthly quota increases in August and September. UAE output rose by 300,000 barrels per day to 2.44 million barrels per day in May, according to the survey.
Economy
Debt Repayments: FG Overshoots Budget Allocation by 18%
By Aduragbemi Omiyale
The 2025 third quarter Budget Implementation Report from the Budget Office of the Federation has shown that the federal government exceeded the funds allocation for repayment of debts for the first nine months of the fiscal year by about 18 per cent.
In a report by Punch, the sum of N10.74 trillion was budgeted for debt servicing between January and September 2025, but the government used N12.63 trillion for the purpose, N1.90 trillion or 17.65 per cent more than the allocation for the year.
The funds were spent on domestic debts, foreign debts and sinking fund by the central government in nine months.
Business Post reports that for the whole year, the amount approved by the National Assembly and signed by President Bola Tinubu for debt repayments was N14.31 trillion.
Looking at the nine-month figures, domestic debt service gulped N6.23 trillion, exceeding its N5.39 trillion provision, while foreign debt service was N6.30 trillion versus the budget provision of N5.06 trillion.
According to the report, the figures indicated that 67.2 per cent of the federal government’s retained revenue of N18.63 trillion was spent on debt service in the first nine months of 2025. When the sinking fund is included, debt-related payments consumed about 67.8 per cent of revenue.
It was also observed that aggregate federal government revenue underperformed the budget by N12.03 trillion or 39.24 per cent, as actual revenue of N18.63 trillion fell short of the N30.67 trillion projected for the first three quarters.
In the third quarter alone, the government generated N7.70 trillion versus the quarterly target of N10.22 trillion as a result of persistent oil revenue shortfalls, despite stronger non-oil collections.
The debt burden also crowded out capital spending, as total capital expenditure was N3.10 trillion in the first nine months compared with the N17.58 trillion budgeted for the period, indicating that actual debt-related payments were more than four times capital expenditure.
Economy
Unlisted Stock Investors’ Wealth Shrinks N30bn
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a loss of 1.13 per cent on Thursday, June 4, shrinking the market capitalisation by N30.03 billion to N2.630 trillion from N2.660 trillion on Wednesday.
Similarly, this brought down the NASD Unlisted Security Index (NSI) by 50.19 points to 4,396.08 points from the 4,446.27 points recorded a day earlier.
The loss was influenced by the overpowering of the bulls by the bears, after the bourse closed with two price gainers and three price losers, led by FrieslandCampina Wamco Nigeria Plc, which slumped by N20.03 to sell at N190.38 per unit compared with midweek’s N210.41 per unit. Food Concepts Plc declined by 25 Kobo to trade at N2.50 per share versus the previous day’s N3.00 per share, and Acorn Petroleum Plc crumbled by 2 Kobo to end at N1.32 per unit, in contrast to the preceding session’s N1.34 per unit.
For the gainers, Central Securities Clearing System (CSCS) Plc added N2.93 to close at N78.34 per share compared with the previous price of N75.41 per share, and Afriland Properties Plc gained 80 Kobo to settle at N16.80 per unit versus N16.00 per unit.
There was a slip in the volume of transactions yesterday by 46.8 per cent to 280,714 units from 527,221 units, as the value of trades dropped 66.5 per cent to N21.8 million from the preceding session’s N64.2 million, and the number of deals fell by 8.7 per cent to 42 deals from 46 deals.
Great Nigeria Insurance (GNI) Plc ended the session as the most traded stock by value on a year-to-date basis with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also finished the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Infracredit Plc with 2.3 billion units exchanged for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
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