Feature/OPED
Benin Bypass and Nigeria’s Economy
By Jerome-Mario Utomi
Acting on the strength of an invitation forwarded to me by a corporate body based in Delta, I made a trip recently. On that day, at that time and in that place, the Sienna Bus that we travelled in was filled to capacity and dotted with passengers from different backgrounds. Our conversation covered a wide range of issues. I listened to different comments from these prominent Nigerians. Our conversation ranged from the recent political developments in the country to the nation’s economy; from Social issues to religious and cultural affairs in the country.
At intervals, we ran into police checkpoints manned by men of the Nigeria Police Force. They were not only polite but highly civil in their approach. The majority of them demonstrated a people soaked in the quest to build a better Nigeria.
The journey proceeded without ‘glitches’ till we got to the Benin bypass.
For those unfamiliar with the South-South geopolitical zone of Nigeria, the referenced Benin bypass, Edo State, Nigeria, was put in place in 2002 at N10.2 billion by the Federal Ministry of Works and Housing (FMWH). It spans from the Ovia Bridge (coming from Lagos to Benin City) connecting the Sapele Road end of the state capital, linking Upper Sakponba Road, Agbor Road, and Benin-Auchi Road. The bypass was constructed by the former President Olusegun Obasanjo-led federal government.
Also relevant to the present discourse is the awareness that during its construction, the ‘Benin people’ reportedly took on the federal government over the designated route for the project. Their grouse was that the chosen route would have an adverse impact on the environment of the ancient city of Benin. They argued that there is the Benin masterplan which provided for a Ring Road around Benin City and not a bypass.
The master plan was reportedly commissioned in 1991 and was approved and given force of law by the Edo State Government in 1998. The plan was said to have considered the 16km bypass route in 1966 and found it unsuitable and detrimental to the development and growth of Benin City. The plan also took cognizance of the fate which befell Sapele when a similar bypass was constructed, leading to a decline in its economic and commercial life.
That was many years ago.
Today, despite federal government insistence on constructing the bypass, the current dilapidation and deplorable state of the bypass is not only destroying the nation’s economy but has led to crippling of individual businesses of Nigerians, particularly in the South East and the South-South parts of the country who import goods from abroad and have to move the goods from Lagos ports to their various business locations in the aforementioned locations.
It is a statement of fact that goods that are cumulatively worth millions of naira are daily destroyed arising from multiple accidents recorded on the bad portions of the road.
Also disturbing is the man-hour daily wasted on that portion of the road by commuters due to the chaotic traffic situation orchestrated by the terrible state of the bypass. It is not in any way a good commentary that as a nation, we have deliberately allowed our national mistake to dispatch the wrong signal to the investing world that Nigeria is not a suitable location for investment.
More specifically, my experience at the Benin bypass elicits the following posers; of what use is it constructing a road (bypass this time around) that is not maintained but left in ruin? What is the essence of struggling with the people of Edo State for the construction of the bypass whereas the federal government is aware that they are protractedly reputed for lack of maintenance culture? Most pathetically, instead of spending billions of Naira purchasing 2023 model SUVs for 360 members of the National Assembly, would it not have been better if such funds were used for redesigning and reconstruction of the bypass?
Aside from recording many accidents and loss of lives as a result of its deplorable state, the current state of the Benin bypass more than anything else portrays a nation that its leadership is unaware that infrastructure enables development and also provides the services that underpin the ability of people to be economically productive, for example via transport.
“The transport sector has a huge role in connecting populations to where the work is,” says Ms Marchal.
Infrastructure investments help stem economic losses arising from problems such as power outages or traffic congestion. The World Bank estimates that in Sub-Saharan Africa closing the infrastructure quantity and quality gap relative to the world’s best performers could raise GDP growth per head by 2.6 per cent annually.
So, using the above scenario as a dashboard to correct our leadership challenge which is gravitating towards becoming a culture, it will be important for us as a nation to openly admit and adopt both structural and managerial changes as it affects our approach to national infrastructure maintenance.
To catalyse this needed leadership philosophy, this piece holds the opinion that Nigerian leaders must commence contemplation of leadership vision/strategies that impose more discipline than conventional, and create government institutions that are less extractive but more innovative in operation.
This shift in action is important as we cannot solve our socio-economic challenges with the same thinking we used when we created it. This time is auspicious for our government to bring a change in leadership paradigm by switching over to a leadership style that is capable of making successful decisions built on a higher quality of information while dropping the age-long mentality which presents execution as more important than idea incubation.
Admittedly, it is evident that the responsibility of infrastructural provision in the country has become too heavy a burden for the government alone to shoulder, and will require partnership between the government and private sector.
However, in this race, it calls for a higher level of transparency on the part of the government. Transparency will remain the cornerstone as it will increase the confidence expected by these interventionists’ private sectors as well as the civil society groups who may not be disposed to invest in an environment that is devoid of transparency and accountability.
Very instructive also, finding an urgent solution and fast to the national shame called Benin bypass and the entire East-West road that connects the entire South-South region to the rest of the nation should be considered as one of the pragmatic ways that President Bola Tinubu could demonstrate his love for the people of the region.
Mr President must do this not for political reasons but for the survival of our democracy and economy particularly that of the South East and South-South geo-political zones.
God bless Nigeria!
Utomi Jerome-Mario is the Programme Coordinator (Media and Policy) for 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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