Feature/OPED
Democracy, Federalism and Leadership Debate
By Jerome-Mario Utomi
As argued by Hernando De Soto, author of the book, entitled The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else, capitalism is in crisis outside the West not because international globalization is failing but because developing and former communist nations have been unable to ‘globalize’ capital within their own countries-as most people in those nations view capitalism as a private club, a discriminatory system that benefits only the West and the elites who live inside the bell jars of poor countries.
Similarly, in my views, Nigeria today experiences crisis of leadership not because the democratic government/ federal system we practice are on their own bad systems or cannot provide the needed solution to the nation’s array of political and economic needs, but because too many politicians and public officials have exercised power and responsibility not as a trust for the public good, but as an opportunity for private gain.
Making the problem worse is their endless quest to get hold of more at all cost without consideration to the general well-being of the entire Nigerians.
Admittedly, it is a very natural and common thing to acquire more and when men succeed in this, they are always praised rather than condemned.
But it becomes a challenge and a reality to worry about when public office holders, instead of taking steps that will better the life chances of the people, get preoccupied with personal aggrandizements in forms that diminishes the masses socially and economically while the privileged political class continues to flourish in obscene splendour as they pillage and ravage the resources of the nation.
Aside from being striking human tragedy deepened by the awareness that it was avoidable, this, of course, is a kind of leadership crisis that is bound to happen when ‘lust for power prevails over granting people the love and care they deserve, and when the interest and destiny of one individual becomes more important than those of the whole nation.
This is also what happens when the interests of some groups and cliques are served instead of those of all the people. In order words, this state of affairs happens when you put the people at the service of the government, in sharp contrast with the norm.
Without losing sight of the present myriads of sociopolitical contradictions that have conspired directly and indirectly to give Nigeria and Nigerians the unenviable tag of a country in constant search of social harmony, justice, equity and equality, this malfeasance at all levels of governance has not only led to the destruction of social infrastructures relevant for a meaningful and acceptable level of social existence for our people.
Rather, it visits the nation with a broad range of socio-economic issues which covers -poverty, health, sanitation, education, climate change, water, energy, environment and other challenges. Life in Nigeria quoting Thomas Hobbs has become nasty, brutish and short as the country turns a hotbed for all manners of violence.
As to factors fuelling the development, various commentators have attributed the type of leaders we have to the people’s decision given the fact that democracy makes everyone equal on Election Day.
The significance of the election, they argued, is that it serves as a means of implementing the principle of popular sovereignty. And popular sovereignty means that the people have the final say. Definitely, an effective argument that makes political sense, but, cannot hold water as it faces some embarrassing facts.
Fundamentally, even if every vote carries exactly equal weight, considerable room for inequality remains in the electoral system.
To a large extent, political parties in Nigeria, for example, are being privately financed. And it may well be that those who contributed money to a party or candidate expect to get something in return. Thus, those who have the resources to help finance elections are likely to have more influence than those who merely vote.
Beyond Election Day itself, tremendous inequalities, political influence begins to emerge, such as advocacy groups and lobby activities. Such disparities may lie outside the scope of political equalities as bare ingredients of the definition of democracy, but they should be of concern to observers.
The truth is that majorly, the root of our national malady goes beyond the incompetence of successive administrations to include rejection of notions/proven theories supplied by well-meaning Nigerians that can improve both the economy and society, as well as put the economy and unemployment in check.
Non-adherence to public opinion has no doubt thrown the economy into reserve and passed the burden on to the backs of Nigerians.
For example, the government’s shift of attention from job creation has undermined the feelings of Nigerians and shifted the distribution of income strongly in favour of those in government.
The average Nigerian is worse off now, economically and materially, than he/she was in 2015-or even 1999. We are presently living through the worst social and economic crisis since independence; poor leadership; poor strategy for development; lack of capable and effective state and bureaucracy; lack of focus on sectors that will improve the condition of living of citizens such as education, health, agriculture and the building of infrastructure; corruption; undeveloped, irresponsible and parasitic private sector; weak civil society; emasculated labour and student movement and poor execution of policies and programmes’.
Follow the logic.
In the past six years, the Nigerian workforce grew but the number of manufacturing jobs has actually declined as a result of the relocation of these industries to neighbouring African countries. A development occasioned by the inability of the FG to guarantee security and electricity. Jobs created by the federal government under the N-Power programme are part-time and not secured.
Two third of those doing part-time jobs want full-time jobs and cannot find them. Unemployment is far and away from the top concern of Nigerians, ranking ahead of insecurity, lack of electricity and national unity.
While millions of workers have given up hope of finding employment, unemployment going by the National Bureau Statistics (NBS), 2019, was at 23.1 per cent, with an under-employment rate of 16.6 per cent; and currently at about an all-time high of 33.5 per cent.
The issue in my view is the refusal of political office holders to be fair and honest in their dealings with Nigerians.
To give one example, in 2005, Chief Olusegun Obasanjo administration and 2010, under Dr Goodluck Ebele Jonathan, the federal government made two feeble attempts, coming up with the electric power sector reform, EPSR, ACT 2005 and the roadmap for power sector reform of 2010, which was targeted at sanitizing the power sector, ensure efficient and adequate power supply to the country. The project ended in the frames – gulping reportedly $16 billion dollars for NIPP without contributing the targeted megawatt to the nations power needs.
The current administration is again in a similar partnership with the German government and Siemens. And in my observation, the only change that has taken place since this new development is but thoughtless increments of bills/tariffs paid by Nigerians. No nation can survive under this form of arrangement.
Correspondingly, security-wise, Nigeria is right now in its most fragile state since the end of the civil war. And by not taking steps to arrest the insecurity situation in the country, heeding the call to restructure the nation or implement the 2014 Confab report, the present government is doing this country more harm than good and quickening its disintegration. This should certainly raise a legitimate concern for all.
Let us pray for Nigeria!!!
Jerome-Mario Utomi is the Programme Coordinator (Media and Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could 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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