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 [email protected]/08032725374.
Economy
NASD OTC Securities Exchange Closes Flat
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Thursday, December 12 after it ended the trading session with no single price gainer or loser.
As a result, the market capitalisation remained unchanged at N1.055 trillion as the NASD Unlisted Security Index (NSI) followed the same route, remaining at 3,012.50 points like the previous trading session.
However, the activity chart witnessed changes as the volume of securities traded at the bourse went down by 92.5 per cent to 447,905 units from the 5.9 million units transacted a day earlier.
In the same vein, the value of securities bought and sold by investors declined by 86.6 per cent to N3.02 million from the N22.5 million recorded in the preceding trading day.
But the number of deals carried out during the session remained unchanged at 21 deals, according to data obtained by Business Post.
When trading activities ended for the day, Geo-Fluids Plc remained the most active stock by volume (year-to-date) with 1.7 billion units sold for N3.9 billion, Okitipupa Plc came next with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc was in third place with 297.5 million units worth N5.3 million.
Also, Aradel Holdings Plc remained the most active stock by value (year-to-date) with 108.7 million units worth N89.2 billion, followed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.5 million units sold for N5.3 billion.
Economy
Naira Firms to N1,534/$1 at NAFEM, Crashes to N1,680/$1 at Black Market
By Adedapo Adesanya
The Naira appreciated against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N14.79 or 0.9 per cent to trade at N1,534.50/$1 compared with the preceding day’s N1,549.29/$1 on Thursday, December 12.
The strengthening of the domestic currency during the trading session was influenced by the introduction of the Electronic Foreign Exchange Matching System (EFEMS) by the Central Bank of Nigeria (CBN).
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN; publication of real-time prices and buy-sell orders data from this system has lent support to the Naira at the official market.
Equally, the local currency improved its value against the British Pound Sterling by N3.91 to wrap the session at N1,954.77/£1 compared with the previous day’s N1,958.65/£1 and against the Euro, the Nigerian currency gained N2.25 to sell for N1,610.41/€1 versus N1,612.66/€1.
However, in the black market, the Naira crashed further against the US Dollar on Thursday by N10 to quote at N1,680/$1 compared with Wednesday’s closing rate of N1,670/$1.
Meanwhile, the cryptocurrency market majorly corrected after earlier gains as US President-elect Donald Trump reiterated his ambition to embrace crypto assets, but a bond market rout dragged risk assets lower.
Mr Trump said, “We’re going to do something great with crypto” while ringing the opening bell at the New York Stock Exchange, reiterating his ambition to embrace digital assets in the world’s largest economy and create a strategic bitcoin reserve.
Alongside, the European Central Bank trimmed its benchmark interest rates by 25 basis points and in its dovish policy statement hinted that more rate cuts were likely to happen.
The biggest loss was made by Cardano (ADA), which fell by 4.9 per cent to trade at $1.10, followed by Ripple (XRP), which slid by 4.1 per cent to $2.33 and Dogecoin (DOGE) recorded a value depreciation of 2.9 per cent to sell at $0.4064.
Further, Solana (SOL) slumped by 1.8 per cent to $225.89, Binance Coin (BNB) slipped by 1.3 per cent to $746.92, Bitcoin (BTC) declined by 0.6 per cent to $99,998.18, Ethereum (ETH) crumbled by 0.5 per cent to $3,909.43, and Litecoin (LTC) dipped by 0.3 per cent to $121.52, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
Economy
Oil Market Falls on Expected Increase in Supply Surplus
By Adedapo Adesanya
The oil market slumped on Thursday, pressured by an expected increase in supply, supported by rising expectations of a Federal Reserve interest rate cut.
The International Energy Agency (EIA) made a slight upward revision to its demand outlook for next year but still expected the oil market to be comfortably supplied, with Brent crude futures losing 11 cents or 0.15 per cent to trade at $73.41 per barrel and the US West Texas Intermediate (WTI) crude futures declining by 27 cents or 0.38 per cent to finish at $70.02 per barrel.
The IEA in its monthly oil market report increased its 2025 global oil demand growth forecast to 1.1 million barrels per day from 990,000 barrels per day last month, largely in Asian countries due to the impact of China’s recent stimulus measures.
At the same time, the IEA expects nations not in the Organisation of the Petroleum Exporting Countries and Allies (OPEC+) group to boost supply by about 1.5 million barrels per day next year, driven by the US, Canada, Guyana, Brazil and Argentina – more than the rate of demand growth.
On Wednesday, OPEC cut its demand growth forecast for 2024 for the fifth straight month.
The IEA said that, even excluding the return to higher output quotas, its current outlook is to a 950,000 barrels per day supply overhang next year, which is almost 1 per cent of the world’s supply.
The Paris-based agency said this would rise to 1.4 million barrels per day if OPEC+ goes ahead with its plan to start unwinding cuts from the end of next March.
Next year’s surplus could make it harder for OPEC+ to bring back production. The hike was earlier due to start in October 2024, but OPEC+ has delayed it amid falling prices.
Meanwhile, inflation rose slightly in November increasing the possibility of a US Federal Reserve rates cut again as the data fed optimism about economic growth and energy demand.
Support also came as crude imports in China grew annually for the first time in seven months in November, up more than 14 per cent from a year earlier.
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