Feature/OPED
2024 And Nigeria’s Sustainable Development
By Jerome-Mario Utomi
As the global community knocks at the entrance doors of the year 2024, there is an urgent imperative for Nigerian leaders to commence consideration of development in its totality-going beyond cement and concrete (roads, buildings and other things).
Those are important but in the year 2024, we should be talking as a nation about development in the context of encompassing improvement, a process that builds on itself and involves both individual and social changes, bringing about growth and structural change, with some measures of distributive equity, modernization in social and cultural attitudes, a degree of political transformation and stability, an improvement in health and education so that population growth stabilizes, and an increase in urban living and employment.
To achieve this objective, our leaders need some knowledge of history to assist in the reconstruction of our past. Particularly, as history is a tool of all disciplines and the key to wisdom, and people who ignore the lessons of history wonder in a dilemma.
More than anything else, history will primarily reveal that the present economic predicament in the country was predicated on inadequacies of and failures by public officeholders to generate breakthrough ideas and exacerbated by comprehensive incompetence to learn what the job of leadership is all about. We must equally not fail to remember on the part of our national leaders, the near total absence of creative/innovative thinking and poor leadership communication.
To explain this fact, evidence abounds that Nigerians in the days of the oil boom in the 1970s witnessed the peak of economic success. But when it seemed that the country would end up controlling the whole world, something suddenly prevented it, the problem is that we failed to apply what we have learned from these successes to inform national policies. This brought a marked economic decline and paved the way for other countries to overtake us both socially and economically.
This decline in Nigeria’s socioeconomic growth and the accelerated development of other nations are traceable to the existence of smart and banal leadership styles respectively.
The smart leaders that held sway of now-developed countries spelt out every detail of their nation’s growth strategies into the future. They planned everything; they knew the job of leadership. On the other hand, Nigerian leaders never contemplate the big socioeconomic picture but only concentrate on the boring little details. They were good at analyzing the nation’s political and socio-economic challenges with clarity but could not see the solution.
It is therefore, important that as a nation, if we are to move forward in the following areas; economy, infrastructure, job creation, electoral practices and fight against corruption, our leaders must through history draw a lesson from the likes of Senior Minister Lee Kuan Yew, the pioneer Prime Minister of Singapore, a man that understood clearly that; public order, personal and national security, economic and social programmes, and prosperity are not the natural order of things but depends on the ceaseless efforts and attentions from an honest and effective government that the people elect.
Separate from the fact that Singapore as a country had in the past met with challenges Nigeria currently battles with, of which learning how they tackled and succeeded would be an important lesson for the nation at this critical moment, there exists yet another reason why leadership lesson is important and it stems from the fact that Lee during his days recognized that it takes a prolonged effort to administer a country well and change the backward habits of the people.
Beginning with effective resource management, Singapore, under Lee’s administration was a country with a GDP of $3 billion in 1965 which grew to $46 billion in 1997, making it the 8th highest per capita GNP in the world according to the World Bank. In fact, its progress was a reflection of the advances of the industrial countries-their inventions, technology, enterprise and drive, a united and determined group of leaders, backed by practical and hard-working people who trust them made it possible, It is part of the story of a leader’s search for new fields to increase the wealth and wellbeing of his people.
In the words of Prime Minister Lee (as he then was), the country had no natural resources for MNCs to exploit. All it had were hard-working people, good basic infrastructure, and a government that was determined to be honest and competent. Our duty was to create a livelihood for 2 million Singaporeans. The second part was to create a First World oasis in a Third World region. This was something Israel could not do because it was at war with its neighbours.
If Singapore could establish first-world standards in public and personal security, health, education, telecommunications, transportation and services, it would become a base camp for entrepreneurs, engineers, managers and other professionals who had business to do in the region. This meant we had to train our people and equip them to provide First World standards of service. I believed this was possible, that we could reeducate and orientate our people with the help of schools, trade unions, community centres and social organisations. If the communists in China could eradicate all flies and sparrows, surely we could get our people to change their Third World habits.
‘We had one simple guiding principle for survival Singapore had to be more rugged, better organised, and more efficient than others in the region. If we were only as good as our neighbours, there was no reason for businesses to be based here. We had to make it possible for investors to operate successfully and profitably in Singapore despite our lack of a domestic market and natural resources.
Essentially, the crux of this piece is to use Singapore’s experience under Prime Minister Lee Kwan Yew to analyze and understand the essential ingredients of foresight in leadership and draw a lesson on how the leadership decision-making process involves judgement about uncertain elements and differs from the pure mathematical probability process.
Another profound lesson that President Bola Ahmed Tinubu led the Federal Government must learn as we step into 2024 is Lee’s explanation that; after grappling with the problems of unemployment in the country, he came to the recognition that the only way to survive was to industrialize. And just immediately, he concentrated on getting factories started. ‘Despite their small domestic market of 2 million, he protected locally assembled cars, refrigerators, air conditioners, radios, television sets, and tape-recorder, in the hope that they would later be partly manufactured locally.
There is certainly an ingrained lesson for the nation of Nigeria to draw from this second position.
Considering the slow-growing economy but scary unemployment levels in the country, the current administration in my opinion will continue to find itself faced with difficulty accelerating the economic life cycle of the nation until they contemplate industrialization, or productive collaboration with private organizations that have surplus capital to create employment.
On the fight against corruption, Lee has this to say; we made sure from the day we took office that every dollar in revenue would be properly accounted for and would reach the beneficiaries at the grass root as one dollar, without being siphoned off along the way. So, from the very beginning, we gave special attention to the areas where discretionary powers had been exploited for personal gains and sharpened the instruments that could prevent, detect or deter such practices.
We decided to concentrate on the big takers in the higher echelons and directed the CPIB on our priorities. But for the small fish, we set out to simplify procedures and remove discretion by having clear published guidelines, even doing away with the need for permits and approvals in less important areas. As we ran into problems in securing convictions in prosecutions, we tightened the laws in stages. Brief and Simple!
To win, he advised that nations must recognize that ‘a precondition for an honest government is that a candidate must not need large sums to get elected, or it must trigger off the circle of corruption. Having spent a lot of money to get elected, winners must recover their costs and possibly accumulate funds for the next election as the system is self-perpetuating.
For me, as we celebrate the new year, one point Mr President and all the state governors in the country must not fail to remember is that any personality who wants to grow in leadership must always scale and be open to learning. They must be moulded by new experiences and to improve their leadership selves, they must internalize the time-honoured admonition that leaders who scale do so regardless of background, skill and talent. They scale because they take deliberate steps to confront their shortcomings and become the leaders their nation needs them to be.
Nigerians on their part must shun every form of lackadaisical attitude and give all the necessary support to their leaders. The best way to perform this responsibility is by asking solution-oriented questions.
Utomi Jerome-Mario is the Programme Coordinator (Media and Policy) at Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via [email protected]/08032725374
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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