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2021: Leadership, Electricity and Petroleum Sectors



Petroleum Sector

By Jerome-Mario Utomi

At a glance, President Muhammadu Buhari comments during his 2021 New Year message to Nigerians on Friday, January 1, 2021, that; “this administration would continue to focus on delivering key strategic priorities under our SEA (Security, Economy and Anti-Corruption) agenda,” without any shadow of the doubt portrays his led federal government as a government that understands the experts believe by Sheikh Mohammed Bin Rashid Al Maktoum, that the efficiency of the government sector does not only affect the performance of the public sector-it affects that of the whole country, including the private sector.

When the public sector achievements pick up speed, the increased pace extends to the activities in all other sectors; incorporating new companies, implementing projects, and import and export, to name a few.

Efficient resource management is essential to secure our future and economic sustainability; therefore, we must continually emphasize the importance of this principle.

Admittedly, the mission of any government should be to promote its peoples’ creativity. On the other hand, when you broaden this ambit of concern, the situation in Nigeria points at a nation that is not practical and systematic in tackling the job of leadership or keen on results.

Out of many other concerns, supporting the above assertion is the recent media report credited to the Nigerian Electricity Regulatory Commission (NERC), stating that, electricity consumers in the country would, as part of the Multi-Year Tariff Order (MYTO) recommendation for the sector, pay more for energy to reflect inflation trend and foreign exchange reality. Also ringing apprehension is NERC’s indications that the Federal Government would not subsidise any class of consumer by the end of this year as it plans to enforce 100 per cent remittance for all DisCos by the end of the year.

Aside from making the road to citizens’ recovery from the present precarious economic situation long and difficult, this present policy coming at a time when the dust raised by previous thoughtless hikes in electricity tariffs and the Premium Motor Spirit (PMS) are yet to settle leaves big questions unanswered.

Take as an illustration: How can Nigerians be creative when they are afraid and frustrated by government policies? When the bureaucracy is rampant, corruption is widespread? Where equal opportunity does not exist and most jobs and promotions are obtained through powerful people? And in a situation that leaves people with no hope for the present or the future?

To explain, this piece is not out to teach the federal government how to build a nation or revamp the economy but it is obvious to the author, and of course, development professionals do not think that what the federal government is doing is the best way to solve the nation’s economic challenges.

Understandably also, there is some truth in the stand of some Nigerians that given the non-competitive nature of petroleum downstream sector, not just in Nigeria, but worldwide, it is a monopolistic sector, the need for the protection of consumers from exploitation calls for the emergence of a strong regulator. That means that such a regulator will be able to effectively do its work. Some of us are worried that the regulatory effectiveness of critical sectors such as the petroleum and electricity sectors have been a suspect in the last few years.

Similarly, no one has succeeded in dispelling the avalanche of proof that the federal government’s continued dependence on crude oil to run its economy has become out of fashion and an ‘evil wind that blows no nation any good.

A while ago, AL Gore, former Vice President in the United States of America, shared a similar concern about the danger of dependence on, and manipulative nature/tendencies of the global petroleum market. It reads; our current excessive dependence on oil endangers not only our national security and the earth’s environment but also our economic security.

Anyone who believes that the international market for oil is a “free market” is seriously deluded. It does have many characteristics of a free market, but it is also subject to periodic manipulation by the group of nations controlling the largest recoverable reserves (the Organisation of Petroleum Exporting Countries, or OPEC)—sometimes in concert with the small group of companies that dominate the global production, refining, and distribution network.

It is extremely important for us to be clear among ourselves that these episodic manipulations have not one objective, but two.

First of all, these producing nations naturally seek to maximize profits. But more significant, they also seek to manipulate our political will. And for the last thirty years, they have paid careful attention to the need for price reductions every time the West comes close to recognizing the wisdom of developing adequate supplies of our own independent sources of renewable fuels.

We need to face the fact that our dangerous and unsustainable consumption of oil from a highly unstable part of the world is similar in its consequences to other forms of self-destructive behaviour. The longer it continues, the greater the harm and the more serious the risk.

There are ingrained lessons for Nigeria as a nation to draw from this argument.

Conversely, in my observation, most of Nigeria’s leadership failures in this direction occur more because most government policies, decisions and strategies are overripe than because they are premature. For example, from 2015 to 2018, the federal government going by reports had spent N1.12 trillion as electricity subsidy.

In 2015, the DISCOS were owed N165 billion by the FG in subsidy, while it climbed to N235 billion in 2016. PWC predicts the debt is expected to reach N522 billion at the end of 2019.

Between 2015 and 2018, the total revenue spent by the federal government in subsidizing electricity stood at N1.12 trillion, while the subsidy spent on petroleum products within the same period was pegged at N1.2 trillion, data from the Nigerian National Petroleum Corporation (NNPC) has shown.

Expectedly, some commentators looking at the figure may support the federal government’ full deregulations of power and petroleum sectors. But in taking that decision, these are few questions they failed to remember; within this period under review, why have the FG not revamped the nation’s refineries which was a major campaign promise? Or is the period not enough to carry out Turn Around Maintenance (TAM) of refineries in question? More particularly is the fact that, if there is anything that Nigerians wish that the FG should accomplish quickly, it is getting the refineries to function optimally as well as make the NNPC more accountable to the people. Why is the Federal Government almost always finding it convivial removing subsidies in commodities, goods and services beneficial to the poor masses?

While these questions are being digested, they are evident that leaders don’t need to continuously humiliate their citizens or frustrate business owners and stifle their creativity in the name of economic development.

In truth, it is documented that in the early sixties, South Korea was poorer than Egypt and facing military and economic pressures more than what we currently grapple with as a nation. These circumstances did not, however, deter that country from becoming a major industrial power.

Similarly, Taiwan and many other countries managed to evolve from basic economies into industrial powerhouses within the span of a few decades, and against the backdrop of very difficult political and economic circumstances. It is no longer possibly correct, therefore, to use major national issues as an excuse for our leadership failures.

Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos.

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Islamic Estate Planning: Protect Your Family and Leave a Legacy



Islamic Estate Planning

By FBNQuest

Islamic estate planning involves the distribution of your assets that serve to preserve, manage, and distribute them after death according to the principles of the Shari’ah.

According to the Islamic ordinance, those principles are significant in planning for dependents and represent an investment in the afterlife.

Islamic inheritance laws organise your wealth ownership and assets to ensure fairness and justice after your passing. Instead of leaving the tough decisions to grieving family members, you can arrange the gifting of your assets in advance. This creates a streamlined process for the distribution of the inheritance to all family members.

Islamic estate planning is essential in the life of Muslim faithful. Indeed, if you pass away as a Muslim without a proper plan for your assets, you may be breaching the bequest guidance stated in the Holy Book, which serves as an instruction manual for a Muslim’s life.

However, many are not concerned with making an inheritance plan, even though a failure to make one could trigger intense family debate and hinder the transfer of some assets to specific beneficiaries.

According to the guiding principles of Islamic estate planning, after covering the funeral expenses and debts owed by the deceased, a person may designate up to one-third of their wealth.

This discretionary giving is known as the Wasiyyah. However, there are limitations to this discretionary giving.

For example, Wasiyyah cannot be given to someone already receiving a share under the Islamic inheritance laws. The Wasiyyah is most commonly given to charity or to care for distant relatives who cannot provide for themselves.

The residual two-thirds is the Mirath and is reserved for the Islamic heirs as ordained in the Holy Book. Primary beneficiaries are those who will inherit some of your wealth, provided that they are alive and Muslim. These are your spouse, children, and parents, and they receive a fixed share of the wealth.

Secondary beneficiaries are those whose share of the inheritance is contingent on whether other primary beneficiaries are still alive. These may include siblings, grandparents, grandchildren, aunts, uncles, and other relatives. It is vital to appreciate the rights and obligations relating to an estate.

In preparing to bequeath an inheritance, it is crucial to organise your wealth in a manner that will make assets acceptable for consideration in an Islamic estate plan.

In this regard, investments should be screened for compliance with Islamic estate ethics, and investments in interest-bearing assets are disqualified.

Instead, it would help if you endeavoured to invest in increasingly popular Sukuk bonds. You should consider Mudarabah Investment accounts as substitutes to fixed deposit accounts and subscribe to a family takaful policy instead of a life insurance policy in your saving plans.

As for pension assets, you should opt for a multi-fund structure with an option to invest in Shari’ah-compliant instruments.

Zakat, the third pillar of Islam, is a compulsory giving required from every financially stable Muslim. Those who have acquired wealth are obligated to respond to people in need and give back to the community. This response could include sponsoring widows or the education students and organising in a charitable Trust as part of an Islamic estate plan.

Therefore, you must consult a professional estate planner to assist with setting up a Trust arrangement where 2.5% of your assets/wealth is set aside annually for Zakat.

Several other tools can be used to organise the transfer of assets to a specific beneficiary. They include Hiba (making gifts), Waqf (setting up an endowment or trust), Wasiyya (transfers by donation), and it is appointing a Wasi or guardian for living dependents. Getting it right requires a thorough understanding of the principles of Islamic estate planning and the various assets available to achieve compliance.

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Governor Okowa’s 2023 Presidency; an Objective Analysis



Governor Okowa's 2023 Presidency

By Jerome-Mario Utomi

This piece stemmed from three recent developments in the country. First is the latest argument by development minded Nigerians that the nation’s perennial leadership haemorrhage/crisis is aggregated by a successive deficiency in leadership vision and in some cases made worse by public officials’ understanding and interpretation of problems with clarity but lacking in political will to see through or implement solutions. A development that has made the nation in dire need of a system that works, a government that caters for its citizens, especially the youths, secures lives and property while bolstering the economy.

The second and very germane is the Southern Governors Forum insistence that the presidency must shift to the southern part of the country come 2023, coupled with the recent decision by the main opposition party in Nigeria, the Peoples Democratic Party (PDP), to zone the position of the national chairman of the party to the north.

As we know, it is a political principle embraced by major political parties in Nigeria that each time the national chairman of a political party emerges from the north, the presidential candidate of the same party, usually, emerges from the south where the likes of Governor Ifeanyi Okowa of Delta State hails from.

Thirdly and most essential has to do with the fresh call by the Minority Leader of the House of Representatives, Mr Ndudi Elumelu, on Mr Okowa to contest for the presidency of the country in 2023.

The Minority Leader, who spoke at the installation of Rotary Club’s 2nd President for 2021/2022 Rotary Club Year (Club of Asaba Downtown District 9141), pointed out that Governor Okowa should serve as the President of the nation so that he can replicate his achievements in massive infrastructural and human capital development in Delta State at the national level.

He stressed that Governor Okowa was endowed with the capacity and proficiency to rescue the nation from the misrule of the All Progressives Congress (APC) and reposition her to the path of peace, unity and economic prosperity.

“I must commend Governor Okowa for his selfless service and sacrifices that have led to unprecedented massive infrastructural development in our dear state as well as a better living standard for our people.

“Governor Okowa is a rare gift not only to Delta State but also to our nation Nigeria, at large. I firmly hold that he is endowed with the capacity and proficiency to serve our nation at the topmost level so that he can replicate the successes recorded in our state at the national level.

“I sincerely call on him to make him available to serve the nation again. He deserves to be the president of this country, come 2023,” Elumelu stated.

However, despite the popularity of this opinion, it will be antithetical to support a movement based on sentiment or allow sentiment to determine our actions. Therefore, in line with the Christian Holy Book, the Bible, admonished in 1 John 4; 1 that we do not believe every spirit, but test the spirits to see whether they are from God because many false prophets have gone out into the world.

It will, for reasons, be of considerable significance to place this call under objective analysis to fundamentally help electorates make informed decisions ‘as the ignorance of one voter in a democracy impairs the security of all’.

To perform this function well, it will necessitate the following posers; Is Governor Okowa capped with vital leadership capacity needed to tame the nation’s perennial ‘leadership haemorrhage/crisis aggregated by a successive deficiency in leadership vision and made worse by public official’s understanding and interpretation of problems with clarity but lacking in political will to see through or implement solutions? Has Governor Okowa truly achieved massive infrastructural and human capital development in Delta State? Has he indeed and in truth demonstrated selfless service and sacrifices as claimed by Mr Elumelu?

Again, going by Elumelu’s claim, another question would be at the federal level, are there signs of misrules on the part of the APC led federal government that calls for Okowa’s attention to reposition the nation to the path of peace, unity and economic prosperity?

Again, on May 29, 2015, amidst cheers and jubilation from the marmot crowd that attended his swearing-in ceremony at the Cenotaph in Asaba, Okowa, going by media reports, told his audience that, “As a government, we are committed to the building and consolidation of a state in which there shall be more employment opportunities, a flourishing agriculture and agribusiness sector, effective health and educational systems, renewed urban infrastructure and enhanced security and peace to bolster economic growth and development.”

Now, looking at the past six years of his administration, it will elicit the question as to how well has the Governor brought these promises to fruition? Also, at the national level, how relevant is Governor Okowa when it comes to issues of national urgent importance? As the current Governor of Delta State, what particulars can Okowa led government point at to convince Nigerians that he can effectively administer the federation?

In providing answers to these nagging questions beginning with the last question, it must be fundamentally underlined that separate from the fact that Delta State, to use the words of Governor Okowa, is a microcosm of Nigeria because she is populated by different ethnic nationalities and has had inter-ethnic conflicts/clashes, fatal boundary disputes, especially over oil-bearing land, and political tensions, a case that in my views qualifies a governor of such state to effectively lead the federation, Governor Okowa, as subsequent paragraph will show, since assumption of office on May 29, 2015, demonstrated that for the leader to distinguish himself, he has to be a shining light and as such, he should be in a position to break the retrogressive tendencies that subsist in doing what one does not wish to do.

To capture this claim well, this piece will further x-ray/classify the achievements of Governor Okowa’s administration into two.

First, achievements at the state levels which has to do with policy objectives/programmes implementation aimed at creating jobs and wealth (wealth creation and employment generation), economic diversification, the democratization of the education sector, infrastructural development, re-jigging/provision of the state’s security architecture in the state, engagement of the youths in productive enterprise, nurture of entrepreneurs and leaders, promotion of communal peace and development of a database of employment and unemployed youths for planning purposes. The second focuses on his unrelenting nation-building efforts at the federal level.

Evidence abounds that the Governor in pursuance of these objectives compressed his programmes into a five-point agenda which is encapsulated in the acronym SMART.

The SMART agenda means Strategic wealth creation projects and provision of jobs for all Deltans; Meaningful peacebuilding platforms aimed at political and social harmony; Agricultural reforms and accelerated industrialization; Relevant health and educational policies and; Transformed environment through urban renewal.

Take the wealth creation and employment generation, as an illustration, the Governor himself recently but succulently captured his achievements in this way; “we have a deliberate policy to tackle youth unemployment through skills training and entrepreneurship development programmes. I believe that the way out of the unemployment quagmire is to equip the youth with the technical know-how, vocational skills, values and resources to become self-employed, as distinct from one-off empowerment. This is what my administration has done by instituting various skills training and entrepreneurship development programmes, which include: Skills Training and Entrepreneurship Programme (STEP); Youth Agricultural Entrepreneurs Programme (YAGEP); Graduate Employment Enhancement Programme (GEEP); Rural Youth Skills Acquisition Programme (RYSA); Girls Entrepreneurship Skills Training (GEST); and Women Entrepreneurship Skills Acquisition Programme (WESAP).”

These programmes he said are trainee-centred and service-oriented. The sectors and activities covered include agriculture, agricultural value chain services, vocational skills-based microenterprises and cottage enterprises.

Furthermore, the training and mentoring processes aim beyond raising entrepreneurs to produce leaders and managers that have high levels of personal responsibility and effectiveness. I am pleased to let you know that after six years of faithful implementation of these programmes, we have trained and given business support packages to several thousands of youths.

Following the success of these interventions and other efforts in promoting technical education, Delta State was ranked the Best State in Human Capital Development in the 2017 States Peer Review by the National Competitiveness Council of Nigeria.

Also in 2020, Delta was adjudged to be the Second Least Poor State, coming only after Lagos, Nigeria’s business hub, according to the Nigerian Bureau of Statistics (NBS).

From the above observations, it is obvious that he (Okowa) in my view is a Presidential material the nation needs to exit the unemployment crisis and economic retardation. However, in order not to be accused of indulging in hasty conclusions, this piece will go beyond the Governor’s wealth creation and employment generation prowess, to x-ray his efforts in other sectors.

To Be Continued.

Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via

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The Effects of Home Loans on the Cost of Living Post-COVID



Home Loans on the Cost of Living

COVID-19 has been a disaster for many people globally, one reason being the effect of the pandemic on the cost of living.

As the cost of living is rising while wages remain stagnant, it’s becoming apparent that many people are struggling to pay off their existing commitments. As a result of such obligations, more and more people seek refinancing options to lower their mortgage rates and reduce monthly expenses.

This post will cover how COVID-19 has affected home loan rates and the part it plays in the rising cost of living.

How Has COVID-19 Stressed Out The World Economies?

While it’s inevitable that no country can escape the effects of a global pandemic, some countries have weathered the storm better than others. For example, as you can see in the image above by Compare The Market Refinance Quotes, the US, Australia, and Denmark seem to be the least financially stressed of world economies, with manageable home loan rates being a significant factor. This has allowed these countries to cope with the negative effects that COVID-19 has had on the cost of living.

Other countries may be able to copy the decisions made by these governments to help restore their economies. Nevertheless, many individuals of these countries and others still find it challenging to pay their bank loans and mortgages.

How Are Home Loans Affecting The Cost Of Living Post-COVID-19?

In March 2020, many countries worldwide implemented a debt moratorium to alleviate household debt burdens due to the coronavirus pandemic. These moratoriums have already expired in many places, which raises some tough questions regarding what additional policies should be adopted to address the pandemic’s lingering effects.

With people facing the challenge of prioritizing their payments, especially when considering the rapid increase in inflation that many countries are experiencing, many have turned to various financial tools such as refinancing to get them through these difficult times.

What Is Loan Refinancing?

Loan refinancing is when you take out a new loan to replace the old one. There are many reasons why you might want to refinance your loans; you may not be happy with how much money you are spending each month on your monthly payments, or maybe you have another loan with a higher interest rate that will save you money in the long run. In these uncertain times, refinancing is becoming more popular.

However, it’s important to note that refinancing only works if you have good credit and still owe some of the original balance of your original loan. Not all types of loans can be refinanced, but here are five loan types can:

  • Student loans
  • Credit card balances
  • Auto loans
  • Mortgage
  • Various bank loans

In conclusion, the effects of home loans on the cost of living are pretty significant for many people, not just in the US but also worldwide. This has caused many to use refinancing as the cost of inflation rises.

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