Feature/OPED
FG’s Obstinacy to Experts Warning on Nation’s Economy
By Jerome-Mario Chijioke Utomi
Similar to a February 16, 2022, media report where economic experts urged the federal government to seek a debt moratorium and reduce the cost of governance to cut funds expended on debt servicing because it is the best option at the moment as it will enable the government to suspend payment for now and re-strategies, particularly the government cannot continue to service its rising debt profile at the expense of meeting the competing needs of the people, a similar expert warning was recently handed by economic analysts that the federal government’s soaring borrowings could eventually suffocate the country if not mitigated.
Speaking in Akure, Ondo State capital at the 32nd annual seminar for Finance Correspondents and Business Editors themed Exchange Rate Management and Economic Diversification in Nigeria: The Pave Option, the experts hinted that going by the government’s borrowing plans, a fresh N6.3 trillion debt may be added to the current debt stock of N39.556 trillion ($95.779 billion as at December 31, 2021) to ultimately push the country’s total debt stock to N45.86 trillion by December 2022.
Notwithstanding this unhealthy trend, they argued it was high time the country invested more in boosting local production and export-oriented infrastructure before the huge debt burden sinks the country.
Indeed, from the explanation/concerns expressed by these experts, this piece clearly agrees that ‘Nigeria’s debt stock has finally become an issue that calls for a more drastic approach to support the fiscal and monetary authorities to tow the nation’s economy out of the doldrums.
But what has, however, caused concern is that despite these prophecy of foreknowledge which deals with what is certain to come and prophesy of denunciation, which on its part, tells what is to come if the present situation is not changed; both acting as information and warning respectively, the President Muhammadu Buhari led federal government has become even more entrenched in borrowing, ignoring these warning signals.
There are so many factors that visibly qualify as a tragedy, including the federal government’s obstinacy and inability to adhere to or heed warning signals.
First and very fundamental, in 2020, one of the reputable national newspapers in Nigeria in its editorial comment among other observations noted that Nigeria would be facing another round of fiscal headwinds this year with the mix of $83 billion in debt; rising recurrent expenditure; increased cost of debt servicing; sustained fall in revenue; and about $22 billion debt plan waiting for legislative approval.
It may be worse if the anticipated shocks from the global economy, like Brexit, the United States-China trade war and the interest rate policy of the Federal Reserve Bank go awry.
The nation’s debt stock, currently at $83 billion, comes with a huge debt service provision in excess of N2.1 trillion in 2019 but is set to rise in 2020. This challenge stems from the country’s revenue crisis, which has remained unabating in the last five years, while the borrowings have persisted, an indication that the economy has been primed for recurring tough outcomes, the report concluded.
Second is a recent news report which indicated that the federal government made a total of N3.25 trillion in 2020, out of which it spent a total of N2.34 trillion on debt servicing within the year. This means, the report underlined, that 72 per cent of the government’s revenue was spent on debt servicing. It also puts the government’s debt servicing to revenue ratio at 72 per cent.
Thirdly, it was in the news that PricewaterhouseCoopers, a multinational professional services network of firms, operating as partnerships under the PwC brand, in a report entitled Nigeria Economic Alert: Assessing the 2021 FGN Budget warned that the increasing cost of servicing the debt will continue to weigh on the federal government’s revenue profile.
It said, “Actual debt servicing cost in 2020 stood at N3.27 trillion and represented about 10 per cent over the budgeted amount of N2.95 trillion. This puts the debt-to-revenue ratio at approximately 83 per cent, nearly double the 46 per cent that was budgeted. This implies that about N83 out of every N100 the federal government earned was used to settle interest payments for outstanding domestic and foreign debts within the reference period. In 2021, the FG plans to spend N3.32 trillion to service its outstanding debt. This is slightly higher than the N2.95 trillion budgeted in 2020.”
Today, such fears raised cannot be described as unfounded just as this author doesn’t need to be an economist to know that as a nation, we have become a high-risk borrower.
And even as the nation goes on a borrowing spree and speeds on ‘borrowing lane’, and at a time the World Bank indicates that “almost half of the poor people in Sub-Saharan Africa live in just five countries: and they are in this order, namely; Nigeria, the Democratic Republic of Congo, Tanzania, Ethiopia and Madagascar, the situation becomes more painful when one remembers that no one, not even the federal government can truly explains the objectives of these loans and whether they utilized in the masses best interest.
Take, as an illustration, it would have been understandable if these loans were taken to build a standard rail system in the country that will assist the poor village farmers in Benue/Kano and other remote villages situated in the landlocked parts of the country, move their produce to the food disadvantaged cities in the south in ways that will help the poor farmers earn more money, contributes to lower food prices in Lagos and other cities through the impact on the operation of the market, increase the welfare of household both in Kano, Benue, Lagos and others while improving food security in the country, reduce stress/pressure daily mounted on Nigerian roads by articulated/haulage vehicles and drastically reduce road accidents on our major highways.
Again, it would have been pardonable if the loans were deployed to revitalise the nation’s electricity sector, to re-introduce a sustainable power roadmap that will erase epileptic power challenge in the country and in its place restore the health and vitality of the nation’s socioeconomic live while improving small and medium scale business in the country.
What about the nation’s refineries?
This piece recalls now with nostalgia that one of the popular demands during the fuel subsidy removal protest of January 2012 under President Goodluck Ebele Jonathan’s administration was that the federal government should take measures to strengthen corporate governance in the Nigerian National Petroleum Company (NNPC) Limited as well as in the oil and gas sector as a whole.
This is because of the belief that weak structures made it possible for the endemic corruption in the management of both the downstream and upstream sectors of the oil and gas industry.
The present administration as part of its campaign promises in 2015, agreed to ensure a better deal for Nigerians six years after such demand was made and Jonathan has gone, the three government-owned refineries in the country have not been able to function at full capacity as promised by the present administration.
Today, if there is anything that Nigerians wish that the FG should accomplish quickly, it is getting the refineries to function optimally as well as making the NNPC more accountable to the people. What happened under President Jonathan has become a child’s play when compared with the present happenings in Nigeria’s oil/gas and electricity sectors.
What the above tells us as a country is that more work needs to be done, more reforms to be made; that as a nation, we are poor not because of our geographical location or due to the absence of mineral/natural resources but because our leaders fail to take decisions that engineer prosperity. And we cannot solve our socio-economic challenges with the same thinking we used when we created it.
Definitely, this piece may not unfold completely the answers to these challenges, but there are a few sectors that a nation desirous of development can start from.
The first that comes to mind is the urgent need for diversification of the nation’s revenue sources. Revenue diversification from what development experts are saying will provide options for the nation to reduce financial risks and increase national economic stability; as a decline in a particular revenue source might be offset by an increase in other revenue sources.
Finally, within this period of economic vulnerability, a new awareness that must not be allowed to go with political winds is the expert warning that accumulated debt can hinder a country’s development, especially when most of the revenue generated is used to service debt.
Utomi Jerome-Mario is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), a Lagos-based non-governmental organization (NGO). He can be reached via [email protected]/08032725374
Feature/OPED
Discover Money-Saving Hack with Temu for Budget-Friendly Shopping
Want to stretch your budget further and join the force of smart buyers? You are not alone to make it a new year’s resolution. Thankfully, platforms like Temu provide access to a wide range of quality products at competitive prices, offering value for money.
For those already embracing the budget-friendly world of Temu, the hunt for bargains is second nature. However, savvy shoppers are always seeking ways to maximise their savings further. Recently, a Nigerian Twitter personality, Queen Bee (@Oyinajibade), shared an exciting discovery: Temu’s price adjustment policy.
In her post, Queen Bee exclaimed, ‘Wait, Temu is offering a refund for items that have dropped in price after I’ve paid. Mad o!”. This revelation has delighted customers and sparked widespread social media interest, demonstrating the significant value of this policy.
What is Temu’s price adjustment policy?
Temu’s price adjustment policy ensures you always get the best deal. Essentially, if the price of an item you’ve purchased on Temu drops within 30 days, they will happily refund you the difference. This policy is a good safeguard for your wallet, ensuring you’re not overpaying.
It’s important to note that this policy applies to exact matches (same size, colour, and seller) and price drops within the same country or region. The policy doesn’t apply to promotional items, clearance deals, or items that are no longer available. Also, remember that shipping costs are not included in the refund calculation.
A Step-by-step guide on how to apply
To apply for a price adjustment on Temu, you can:
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Go to ”Your Orders“
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Select the order you want to adjust
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Click ”Request a price adjustment“
For additional assistance, you can always reach out to Temu’s 24/7 customer service specialists via Temu.com or the Temu App Live Chat.
Other ways to save
Keeping an eye on homepage promotions is an excellent way to quickly find the most cost-effective products. Shoppers can also explore “Lightning Deals,” which are limited-time offers, and “Seasonal Offers” to discover items that align with their preferences. Temu, the direct-from-factory marketplace, offers year-round deals to help you enjoy shopping without breaking the bank.
Opting for free standard shipping helps to minimise costs and avoid unexpected expenses. More so, joining conversations on platforms like X, Instagram and TikTok can also be beneficial. Other shoppers often share valuable tips, hidden gems, and information about new deals.
To significantly enhance their savings and make the most of this exciting shopping platform, Nigerian shoppers should effectively utilise Temu’s price adjustment policy and implement these strategies.
Feature/OPED
World Holocaust Day: 80 Years After, Examining Jehovah’s Witnesses’ Stand at Nazi Camps
As the world commemorates World Holocaust Day on January 27, reporter Joke Thomas reflects on the history and lessons learned 80 years later, focusing on the inhumane treatment of groups opposed to the Nazi regime and the global response to genocide since World War II.
One group targeted by the Nazis and first to be sent to death camps was Jehovah’s Witnesses. For many, the observance of the liberation of Auschwitz-Birkenau Concentration Camp on January 27 is a sobering reminder of human atrocities – man’s injustice to fellow man.
The International Holocaust Remembrance Day (IHRD) honors Holocaust victims and promotes the educational and historical significance of this tragic period.
Auschwitz, during its nearly five years of operation, included a concentration camp, forced-labor camp, and extermination camp, with over 40 subcamps. The Nazi regime executed severe human rights abuses against millions, including Jews, Poles, Slavs, Roma and Sinti, homosexuals, and people with disabilities. Jehovah’s Witnesses were also persecuted; about 400 Witnesses of various nationalities were imprisoned at Auschwitz, where gas chambers claimed up to 6,000 lives daily.
Jehovah’s Witnesses were identified by a purple-triangle patch on their uniforms, signifying imprisonment for their religious beliefs, not their ethnicity.
“The Witnesses’ moral principles and practices did not align with the Nazi ideology of racism, hate, and extreme nationalism. Consequently, their activities were targeted, and they were banned in Germany as early as 1933.”
The story of how Jehovah’s Witnesses maintained their faith despite the cruelties of Auschwitz is a lesser-known part of Nazi-era history. Sociologist and Auschwitz survivor Anna Pawełczyńska noted that the small group of Witnesses stood out for their ideological strength.
Auschwitz-Birkenau State Museum records indicate that Jehovah’s Witnesses were among the first prisoners sent to the camp. Of the hundreds of Witnesses incarcerated, at least 35% died there. The museum’s website states: “Jehovah’s Witnesses deserve closer attention for their ability to hold on to their moral principles under camp conditions.”
“On the scale of Auschwitz’s huge community, the Jehovah’s Witnesses constituted but a tiny, inconspicuous little group,” said sociologist and Auschwitz survivor Anna Pawełczyńska. “Nevertheless, the color of their triangular badge stood out so clearly in the camp that the small number does not reflect the actual strength of that group. This little group of prisoners was a solid ideological force, and they won their battle against Nazism.”
Jehovah’s Witnesses were persecuted solely based on their religious convictions. The Nazis offered them freedom if they renounced their faith and supported the regime, but they remained loyal to their values. On January 27, 1945, the Soviet Union’s Red Army liberated about 7,000 prisoners from the death complex.
Last year, Jehovah’s Witnesses released a digital brochure titled “Purple Triangles – Forgotten Victims of the Nazi Regime.” The 32-page brochure is available for free download on jw.org and features pictures and documents from a traveling exhibition. The exhibition, displayed at memorial museums and educational institutions across Europe, had been viewed by about 600,000 visitors by the end of 2002.
Jehovah witnesses believe and educate the public through their global bible-based campaigns of a future free of human suffering caused by all forms of injustices. To learn more, visit their official website ww.jw.org.
Feature/OPED
NDDC and Sustainable Development in Niger Delta
By Jerome-Mario Utomi
Reports have it that at Harvard Business School, United States of America (USA), the code of belief about entrepreneurship is quite simply this: It can be taught, and it can be learned.
Entrepreneurship is, to use HBS’s quasi-official definition, “the pursuit of opportunity without regard to resources currently controlled.” It is not so much a set of skills as it is a process, a belief, and a commitment. It is a mode of thinking and acting – a war of observing the world, of figuring out how to change it (hopefully for the better), and, perhaps most important, of becoming the person who is capable of implementing the change.
Likewise, there is a veiled agreement among critical stakeholders that one of the outstanding boards in the present day Nigeria is visibly capped with skills, belief, commitment, mode of thinking and in vigorous pursuit of opportunities to sustainably remove obstacles on the part of its targeted beneficiaries.
Without regard to resources currently controlled, is the Barrister Chiedu Ebie-led governing board and management of the Niger Delta Development Commission (NDDC), a Federal Government’s agency created in 2000 by enabling Act, to offer a lasting solution to the socio-economic difficulties of the Niger Delta and to facilitate the rapid and sustainable development of the region into an area that is economically prosperous, socially stable, ecologically regenerative and politically peaceful.
Adding context to the discourse, when crude oil was discovered in the region more than 50 years ago, the people could not have imagined that they would bear the brunt of the country’s main source of revenue. They expected that the exploitation of the rich natural resources they have in their environment would bring them development and prosperity. But alas, it has been a very painful experience for the people of the region.
Essentially, it is not as if past administrations in the country did not, at different times and places, make efforts to address the region’s challenges, but noble as those efforts were, considering the level of underdevelopment in the area, such effort appeared too insignificant and short of what is required to cater for the region’s development. More particularly, the effort remains a far cry from what was needed to exorcise the ghost of youth unemployment. This ugly narrative persisted in the face of concerns raised by the global community who were chiefly not convinced that what now rested administrations were doing was the best way to solve the problem of the Niger Delta.
Understandably, there is some truth in those concerns as expressed just as there is presently, a silver lining in the horizon. What we have today is an exact opposite! Niger Delta people of goodwill are equally of the view that what the region is experiencing this time around may no longer be the second half of a recurring circle, rather the beginning of something new and different.
Aside from the fact that the new governing board and management have to their credit, a well-established healthy relationship with critical stakeholders within the region and beyond, also worth underlining and of course, a lesson other agencies and commissions must imbibe, is the frantic efforts to put the Niger Delta in order via youth empowerment, human capital development and democratised infrastructural provisions.
A delectable account further indicates that the policy thrust and programmes coming from the new governing board and management of the agency amply qualify as development-based. This particular point partially explains why this piece is interested in the ongoing developmental strides in the region.
Prominent among these projects, programmes and initiatives are the building of partnerships, lighting up the region, initiating sustainable livelihood, improving youth capacity and skills base, executing efficient and cost-effective projects, including the Project Hope for Renewed Hope, reducing carbon emission, and improving peace and security.
From what development professionals are saying, a programme is development- based when it entails an all-encompassing improvement, a process that builds on itself and involves both individuals and social change. It also requires growth and structural change, with some measures of distributive equity, modernisation in social and cultural attitudes; a degree of political transformation and stability, improvement in health and education so that population growth stabilises, and an increase in urban living and employment.
Viewed broadly, it is public knowledge that throughout the early decades, the world paid little attention to what constitutes sustainable development. Such conversation, however, gained global prominence via the United Nations introduction, adoption and pursuit of the Millennium Development Goals (MDGs) which lasted between 2000 and 2015. It was, among other intentions, aimed at eradicating extreme poverty and hunger as well as achieving universal primary education, promoting gender equality, reducing child mortality and improving maternal health, among others.
Without going into specific concepts or approaches contained in the performance index of the programme, it is factually supported that the majority of the countries, including Nigeria, performed below average. And, it was this reality and other related concerns that conjoined to bring about 2030 sustainable agenda- a United Nations initiative and successor programme to the Millennium Development Goals (MDGs)- with a collection of 17 global goals formulated among other aims to promote and cater for people, peace, planet, and poverty. It has at its centre, partnership and collaboration, ecosystem thinking, co-creation and alignment of various intervention efforts by the public and private sectors and civil societies.
Very remarkable is that all the NDDC’s projects/programmes were crafted in line with the above initiatives. If in doubt, checkout the agency’s scheme known as Holistic Opportunities, Projects and Engagement (HOPE); It is primed to provide a platform to empower youths of the region on sustainable basis, designed to create a comprehensive resources database of the youth population of the Niger Delta to enable NDDC see clearly what the youths want in their strive for sustainability in conformity with international best practices and development.
The project HOPE’ initiative is positioned for creating youth employment opportunities, especially in agriculture through support to small-holder farmers in order to ensure operational growth while shifting from traditional to mechanized farming methods.
“Because of the arable wetlands, rainfalls and other favourable ecological factors to plant various crops and vegetables at least four times within a farming season, the agency is proactively moving away from the oil economy to the agricultural sector which can accommodate our youths in large numbers is the agricultural sector.”
For me, NDDC’s solutions to youth unemployment and development of climate for sustainable future and innovation will assist to promote the critical thrust of governance and maximise the benefits citizens derive from governance.
For example, talking about youth unemployment in Nigeria, a report recently put it this way: “We are in dire state of strait because unemployment has diverse implications. Security wise, large unemployed youth population is a threat to the security of the few that are employed. Any transformation agenda that does not have job creation at the centre of its programme will take us nowhere”.
As we know, youth challenge cuts across, regions, religion, and tribe, and had in the past led to the proliferation of ethnic militia as well as youth restiveness across the country.
What the above information tells us as a nation is that the ongoing creative and transformative leadership at NDDC calls for collective support and it should be used as both a model and template by all strata of government in the country, for correcting public leadership challenges via adoption of approaches that impose more leadership discipline.It is in doing this that we can achieve sustainable development as a nation.
Utomi, a Media Specialist writes from Lagos, Nigeria. He could be reached via [email protected]/08032725
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