Feature/OPED
Why Good Infrastructure Governance Key to Unlocking Africa’s Potential

By Chris Heathcote
Infrastructure is crucial to Africa’s growth prospects. It’s also hard to get right. Until now, policy makers have focused on improving access to finance. But a consensus is developing globally that a major factor hindering infrastructure implementation is a lack of good governance and well-planned projects.
This is a topic that deservedly takes centre stage this week as representatives from 27 African governments, the global private sector, multilateral institutions, and other development partners gather in Cape Town to participate in the region’s first roundtable on the governance of infrastructure hosted by the Development Bank of Southern Africa (DBSA).
This is the first in a series of roundtables being delivered by the World Bank, OECD, GI Hub and other partners, which aim to help countries move towards infrastructure planning and governance frameworks that facilitate inclusive and sustainable investment decisions.
There’s certainly no denying the need for infrastructure development on the continent, as has been emphasised during the course of Germany’s G20 Compact with Africa initiative. In Sub-Saharan Africa, only 35 percent of the population has access to electricity. Access to modern transport has declined in the region over the past 20 years, and 23 percent of the population still lacks access to safe water.
Against this background, it’s understandable that the investment focus over the past 10 years has been on utilities and trying to improve access to electricity and water. For some countries this is a significant challenge. Ethiopia, for example, needs to spend 20 percent of its GDP to meet its electricity Sustainable Development Goals (SDGs) and another nearly seven percent to meet its water SDGs.
That’s a major chunk of its GDP, particularly when you compare that the average investment in all infrastructure in Latin America stands at about 5.5 percent. Ethiopia is not unique and such cases point to a significant underinvestment in economic infrastructure such as ports, airports and roads across Africa. And that’s before you factor in investment in ‘softer’ forms of infrastructure like the rollout of telecoms and broadband internet access which are also crucial for economic growth.
So, how do African countries attract and retain the kind of investment in infrastructure projects needed to help stimulate that growth? The InfraCompass tool created by GI Hub recently studied infrastructure markets across 49 countries to pinpoint the best conditions for infrastructure delivery and found the strongest driver of investment was the rule of law.
This is why governance, rather than development finance, is the primary focus of this roundtable. Of course, finance is vital. Without it, infrastructure development would not be possible. But there’s a growing realisation globally and in Africa that if you get the governance aspects right, the finance will follow. Get it wrong and the investment will dry up.
Getting the governance right also allows for efficient and disciplined planning, which is crucial if a proposed infrastructure project is to be sustainable and contribute to growth and lift people out of poverty.
A 2014 study by the International Monetary Fund (IMF) found that increased public infrastructure investment raises output in the short term by boosting demand and in the long term by raising the economy’s productive capacity.
More specifically, the study found that an increase of one percentage point of GDP in investment spending raises the level of output by about 0.4 percent in the same year and by 1.5 percent four years after the increase. In addition, the boost to GDP a country gets from increasing public infrastructure investment offsets the rise in debt, so that the public debt-to-GDP ratio does not rise.
In other words, investment in public infrastructure can pay for itself and more, but only if it’s done correctly. That’s a big if. We’re all familiar with projects that have turned into white elephants, beset with fraud, waste, and inefficiencies.
Infrastructure is a very powerful engine of economic growth, but only if it’s an economically crucial piece of infrastructure created as part of carefully thought out development plan. If not, a country risks falling into the trap of building infrastructure that does not create growth and which it can’t afford to maintain, which then falls into disrepair. This is known as the ‘build, neglect, rebuild cycle’.
It’s why when canny investors, whether they be multi-lateral institutions or private sector players, look at markets they want to understand why a particular piece of infrastructure is necessary, what revenue it will it drive and whether it is affordable. They know it can only be affordable if it’s driving growth by one means or another.
This is also why corruption is such a hindrance to economic growth. Consider those IMF multiplier figures again. If you assume that corruption adds a 40 percent ‘inefficiency premium’ to a project, then any multiplier effect evaporates. Instead, the project becomes a drag on the economy.
We at GI Hub have found that public-private partnerships (PPPs) can play a valuable role in combatting corruption by encouraging transparency regarding bidding and payments. Where we see countries improving in terms of their corruption indexes, we quite often see PPPs being used to overcome that corruption and to improve levels of transparency.
Which brings us back to the crucial importance of the rule of law. Investors want to know what legal frameworks exist and whether they are being fairy applied and in a timely manner. Kenya is one of the examples in our InfraCompass study of a country which used PPP laws to increase transparency and to show its willingness to run clean bidding processes.
It’s thanks to this and other success stories that the perception of Africa as a hotbed of corruption is changing. You’re seeing investors like Meridiam Infrastructure increasingly targeting Africa as an investment destination. The question is no longer whether to invest in Africa, but which countries in Africa will be most likely to stand behind the sort of long-term contracts investors are interested in and have the economic plan to create and maintain the stability they require.
There’s investment going into countries like Morocco, Gambia, Nigeria, Kenya and South Africa – the latter of which has been an investment destination for some time. As this level of investment grows, it will create the precedents that will encourage other countries to clean up their acts and become stable, positive partners to investors and, hopefully, move more countries into that elite group of investment countries. By showcasing these positive examples, and providing practical support at the political and bureaucratic levels, this roundtable is intended to help speed up the transition for more African countries to better infrastructure governance models.
Chris Heathcote is the CEO of Global Infrastructure Hub (GI Hub), a G20 initiative
Feature/OPED
Warri, a Distressed and a Dying City

By Michael Owhoko, PhD
Who will restore Warri back to its glorious days? A city that was once the pride of all Wafarians, is now a shadow of itself, rusty and reeking with aroma of poverty occasioned by systemic decline with people cocooned in deprivation and squalor.Warri is allusively known as Wafi, making the people and residents of the city identified as Wafarians.
I was close to tears during my recent visit where I toured the length and breadth of Warri, covering Deco Road, Okumagba Avenue, Okere Road, McCiver, Odion Road, Market Road, Cemetery Road, Iyara, McDermott Road, Warri-Sapele Road, Upper and Lower Erejuwa, Ajamogha, Esisi, and Warri Port. I stayed for over two months, the longest since my relocation to Lagos in 1984.
All I saw was a distressed and a dying city with shattered dreams, shrinking hopes, and diminished opportunities induced by capital flight and economic disorders. It is a metaphor for youth unemployment, dwindling aspirations, and social chaos, where people just labour under profound deficit constrained by rationed resources, owing to lack of fresh capital from investors.
Indeed, Warri is choking from severe economic dehydration, with all available spaces in front of buildings converted into small shops where people engaged in petty trading and POS businesses, making the whole streets look like mini-markets. This is further worsened by the large number of keke tricycles almost outstripping the populace with attendant heavy noise emission. Even the dead have no peace in Warri as the entrance to the only cemetery in the town has been overtaken by petty traders, and keke tricycles mechanics, leaving a small gate forentry.
How did such a once vibrant cosmopolitan city that attracted global presence, including investors, and played host to several notable national and international events, degenerated into a rural enclave with dilapidated structures? What went wrong, and who created the mess which have betrayed the values and ideals that once held Wafarians together in unity and love?
While it is easy to link Warri’s stunted growth to the unending ethnic rivalry among the Itsekiris, Urhobos and Ijaws, for posterity, it is also important to specifically identify those, whose actions, directly or indirectly,have contributed to the city’s appalling condition, which has brought shame and embarrassment to the collective psyche of Wafarians.
First, the opposition of Warri as capital of Delta State at the creation by Itsekiri leaders, led by His Royal Majesty, the Olu of Warri, AtuwatseII, have done more harm to the general good of Warri, and setting the city backward. The deficit outcome has made the motive designed to protect the Itsekiri’s ethnic interests pale into insignificance.
What is the gain of this stand within the context of development, other than fear of Urhobo domination, and the need to thwart it? This was an obvious delusion, and no amount of rationalization can justify the mess that has eclipsed Warri. It was a miscalculation. Sacrificing the city’s progress on the altar of narrow ethnic interest was a tragedy.
Unfortunately, former military President, Ibrahim Babangida (IBB) further complicated the matter when he failed to demonstrate objective governance, taking advantage of the Itsekiri’s disapproval of Warri as capital to illogically site the capital of Delta State in Asaba, hometown of his wife. It was the height of absurdity in decision making, and a study in bad leadership.Had the ethnic trust deficit in Warri been bridged and the ethnic groups unite to demand Warri as capital, the city would have been better transformed with infrastructural advantage typical of a modern capital city, attracting foreign investors, to the benefit of all.
Second, the unending contention over ownership of Warri township among Urhobos, Itsekiris and Ijaws, over the years, have continued to promote ethnic animosity and discord, contributing immensely to the backwardness of the city. Those who started this tussle have since passed on, without adding any value to their respective ethnic groups.Sadly, this bitter ethnic rivalry is being passed on to succeeding generations, who have foolishly continued in this trajectory to spread hate, rather than live in harmony as neighbours, to achieve enduring peace and development in Warri.
It should be noted that these ownership claims are exercise in futility, as either of these ethnic groups, can practically dislodge one another to take physical possession of any habitation. For example, just as it is practically impossible for the Urhobos to evict the Itsekiris from Okere, it is also unrealistic for the Itsekiris to dispossess the Ijaws of Ogbe-Ijaw land.
And so, brandishing colonial and post-colonial court judgements and papers as proof of ownership, is insignificant and waste of energies. The three ethnic groups must bury their pride and ego, and live together peacefully as Wafarians, bound by common cultural affinity, so that Warri can experience peace and progress again.
Third, ethnic leaders that directly or indirectly encourage and incite their youth to resort to violence, and sometimes, carry arms to threaten, destroy or kill their neighbours over land, have nothing to gain other than misery and poverty. Ironically, it is the innocent children of the poor that are used for such senseless conflict, while the children of the rich, enjoy comfort in safe haven in faraway Lagos, Abuja, London, USA or Canada.
Besides, the parents of most of these gullible youth being used to perpetuate these crimes, have no ancestral root, and properties in Warri township. Destruction and mayhem only leave in their trail, economic decline, unemployment, anguish, suffering, hardship and poverty, as investors will flee with their capital from a hostile environment, as shown with the exit of numerous companies in the city.
Lessons ought to have been learnt from the Ijaw-Itsekiri conflict which lasted from 1997 to 1999 over siting of Warri South West Local Government Area Headquarters. At the end of that war, both parties counted only losses, no benefit, no value addition, and no reward. Regrettably, companies that were hitherto sources of sustained fresh capital in Warri, relocated to other cities, bringing lackand despair to Warri and its environs. There must not be a repeat of such a senseless ethnic war, as Warri may never survive a second experience.
The effect of the Ijaw-Itsekiri fight led to exit of companies like Pan Ocean, Schlumberger, Halliburton, Shell Petroleum Development Company, (SPDC), ELF, Conoco-Phillips, Agip, WEAFRI, NISSCO, Globestar, McDermott, DBN, WESCO, Hercules Offshore Nigeria, Nigeria Dredging & Marine, LAMNALCO, and Dunlop.
Others include Saipem, Seismograph Services Limited, Snamprogetti, Dowell, Anadrill, Baroid, Santafe, Oceaneering, Kingsway, Leventis, West Minster Dredging, John Holt, SCOA, Glorylux, United African Company (UAC), Mandillas, Nestoil together with maritime and shipping firms located inside the Nigerian Ports Authority, Warri.
The companies not only left with their investment; they also left behind high unemployment rate of approximately 80 per cent in Warri. Except for Chevron Nigeria Limited, and perhaps, recently, Tantita Security Services Limited, through which fresh funds are being injected into the economy of Warri, the condition of the town would have been catastrophic.
Fourth, those that engage in collection of “deve” (development) fee as precondition for commencement of project, and also, who forcefully demand employment and contract slots from companies, have also contributed to the poor condition of Warri. By their actions, companies, including small business enterprises and individuals, are frustrated and discouraged from establishing businesses in the city, thereby compounding the unemployment burden.
Fifth, the non-operational Warri Port has also added to the economic hardship in Warri. Ocean-going vessels that used to berth, servicing business interests in neighbouring Effurun, Udu, Benin City, Onitsha, Asaba, and the environs, are no more. This is further worsened by the collapse of adjoining companies like the Delta Steel Company, Owvian-Aladja and Warri Refinery and Petrochemical Company, Ekpan, which has taken a huge toll on Warri life.
It is, therefore, imperative for the ethnic groups to redirect their energies to promote peace and unity, in order to restore investors’ confidence.The Ijaws, Urhobos and Itsekiris’ leaders can also leverage their common cultural ties, as expressed in food, clothes, trade, history, and festivals to boost Warri’s economy. For example, Warri cultural celebrations like Agbassa Juju (Idju Owhurie Festival) and Okere Juju (Awankere Festival) can be bolstered and turned into major tourists’ destination, as part of strategy to make Warri great again.
Dr Mike Owhoko, Lagos-based public policy analyst, author, and journalist, can be reached at www.mikeowhoko.com, and followed on X {formerly Twitter} @michaelowhoko.
Feature/OPED
Why Youth Engagement is Nigeria’s Agricultural Imperative

By Diana Tenebe
Nigeria stands at a critical juncture, faced with a demographic reality that is both its greatest asset and a significant challenge. With a population where almost 70% are under the age of 30, the nation’s future is undeniably in the hands of its youth.
Yet, the agricultural sector, the traditional backbone of the economy, is in a state of crisis, with an aging farming population and a notable disinterest from the younger generation. This disconnect poses a serious threat to our food security, economic stability, and long-term sustainable development. To navigate this, Nigeria must embark on a deliberate and multi-faceted mission to transform agriculture from a career of last resort into a dynamic, profitable, and respected profession for its youth.
The perception of farming as a life of drudgery, poverty, and limited opportunity is deeply ingrained in the minds of many young Nigerians. This is not without reason. The sector is often associated with backbreaking labor, outdated methods, and significant financial risk. The lack of access to land, credit, and modern technology creates a formidable barrier to entry, pushing aspiring young people towards often non-existent or poorly paid urban jobs. This exodus from rural areas exacerbates the issue, leaving an agricultural sector in need of fresh ideas and a renewed workforce.
To reverse this trend, we must begin by transforming the very image of agriculture. Education is the key. Integrating agriculture, food, and nutrition into the national curriculum from primary school upwards can fundamentally change how young people view the sector. By making it a compulsory subject in secondary schools, we can equip students with practical knowledge and foster an appreciation for the vast opportunities within the food system. School gardens and ‘Farm to School’ initiatives can provide hands-on experience, connecting young minds with the processes of food production and the rewards of a healthy community. By promoting farming as a business, not just a means of subsistence, we can highlight its potential for profitability and professionalism.
Crucially, young Nigerians need to see that success in agriculture is not just possible, but a reality. Showcasing successful young farmers and agripreneurs through media campaigns, documentaries, and digital platforms like Agribusiness TV can provide powerful role models. These stories of innovation, resilience, and financial success can inspire a new generation to reconsider their career paths. Peer-to-peer learning, where successful young farmers share their evidence-based success, is an effective way to demonstrate the viability of modern agricultural practices and encourage others to follow suit.
Beyond changing perceptions, we must address the tangible barriers to entry. Access to finance is paramount. Innovative funding models, including grants, subsidies, and venture capital funds specifically for young agricultural entrepreneurs, can ease the initial burden of starting an agribusiness. Policy reforms that simplify land acquisition and promote cooperative farming models are essential to ensure young people have access to the resources they need. Furthermore, providing training in technical, business, and financial literacy will empower them to develop robust business plans and attract investment.
Perhaps the most potent tool for attracting Nigeria’s tech-savvy youth is technology itself. Modern agriculture is a far cry from the old-school image of a farmer with a hoe. Digital technologies, from mobile apps that provide real-time market prices to blockchain for product traceability, can connect young farmers directly to markets and streamline their operations. The introduction of technologies like hydroponics, aquaponics, and automated farm machinery not only reduces drudgery but also offers attractive, quick-return opportunities. By promoting agri-tech startups and establishing ICT training centers for rural youth, we can position agriculture as a hub of innovation.
The government has a vital role to play in fostering an enabling environment. Initiatives like the National Young Farmers Scheme and partnerships such as the one between the Federal Government and Niger State to empower 100,000 youths are commendable steps. Continued public investment, alongside the involvement of youth in policy dialogue, will signal a genuine commitment to their future in the sector.
Engaging Nigeria’s youth in agriculture is not merely an option—it is a national imperative. By transforming perception, enhancing access to resources, and leveraging technology, we can unlock their immense potential, ensuring a sustainable and prosperous future for the entire nation. The time to act is now.
Diana Tenebe is the Chief Operating Officer of Foodstuff Store
Feature/OPED
Artificial Intelligence: The Indispensable Catalyst for Nigeria’s Agricultural Revolution

By Diana Tenebe
Nigeria’s agricultural sector, a cornerstone of its economy, faces a critical crossroads. While employing a staggering 40% of the population and holding over 84 million hectares of arable land, the industry is hobbled by deep-seated challenges. Low productivity, a fragmented supply chain, poor infrastructure, and a lack of access to financial services are just a few of the hurdles that prevent the sector from reaching its full potential. Coupled with the unpredictable and severe shocks of climate change—from prolonged droughts to devastating floods—these issues threaten the food security of a rapidly growing population.
To truly transform this vital sector, a new approach is needed, one that moves beyond traditional methods and embraces the power of technology. Artificial Intelligence (AI) is not just a futuristic buzzword; it is the imperative for Nigeria’s agricultural revolution. AI holds the key to unlocking higher yields, building resilience, and fostering an inclusive and sustainable food system that can feed a nation and drive economic growth.
The most immediate impact of AI is in the area of precision farming. By integrating AI with technologies like Internet of Things (IoT) sensors, drones, and satellite imagery, farmers can gain an unprecedented understanding of their land. AI-powered systems can analyse real-time data on soil moisture, nutrient levels, and plant health, providing actionable insights for targeted interventions. For instance, smart irrigation systems can optimize water usage, a critical resource in a country facing increasing water scarcity. AI-enabled drones can survey vast farmlands in minutes, identifying early signs of pests or disease and allowing for precise application of pesticides, reducing chemical use and cost. Early trials of these technologies in Nigeria have already demonstrated significant gains, with some reports showing a remarkable 60-70% increase in crop yields.
Climate adaptation is another area where AI’s role is indispensable. Nigeria’s farmers are on the front lines of climate change, enduring erratic rainfall and extreme weather events. AI can provide a shield against this volatility. By analyzing historical weather data and real-time forecasts, AI models can offer accurate, localized predictions. This allows farmers to proactively adjust their planting schedules, select climate-resilient crop varieties, and plan for potential risks, effectively mitigating the devastating impact of droughts and floods.
The economic benefits extend far beyond the farm gate. A significant portion of Nigeria’s agricultural produce is lost due to an inefficient and fragmented supply chain. AI can streamline logistics, optimize transportation routes, and enhance inventory management. By reducing spoilage and waste, AI ensures that more of what is harvested reaches the market, thereby boosting the incomes of farmers and providing a more stable supply of food for consumers. The success of Nigerian agritech companies like Crop2Cash, which has reportedly helped over 500,000 farmers increase their income by up to 70%, demonstrates the tangible economic impact of these technologies.
AI is a powerful tool for promoting financial inclusion and education. Millions of smallholder farmers, who form the backbone of Nigerian agriculture, are often excluded from formal financial systems due to a lack of collateral and credit history. AI-driven fintech solutions can bridge this gap by assessing creditworthiness using alternative data, making it easier for farmers to access the loans and insurance they need to scale their operations. AI-powered mobile apps and chatbots can also serve as virtual extension agents, providing personalized advice on best farming practices, pest control, and crop management, democratizing knowledge and empowering farmers to make better decisions.
Despite this immense potential, the journey towards widespread AI adoption is not without its hurdles. High upfront costs for AI-enabled equipment, a general lack of understanding and experience with these tools, and a preference for traditional methods are all significant barriers. Furthermore, infrastructural gaps, including poor roads and inadequate storage facilities, hinder the seamless implementation of these technologies. Data availability and computational capacity are also key challenges that need to be addressed.
However, the Nigerian government and a burgeoning ecosystem of agritech startups are already paving the way forward. The government’s vision is articulated in initiatives like the National AI Strategy, which aims to establish AI research centers and support R&D. Programs such as the Nigeria Artificial Intelligence Research Scheme (NAIRS) and the NITDA AI Developers Group are building the necessary skills among entrepreneurs and farmers. Strategic partnerships between government bodies, financial institutions, and innovative startups are creating localized solutions that are tailored to the unique conditions of Nigerian agriculture.
Ultimately, AI is not a luxury but an imperative for Nigeria to unlock its agricultural potential. Its successful integration will transform the role of the farmer from a manual laborer to a strategic planner and overseer of a smart, efficient, and sustainable food system.
By investing in infrastructure, fostering strategic partnerships, and prioritizing education and capacity building, Nigeria can harness the power of AI to feed its people, drive economic prosperity, and secure its place as a leader in the African agricultural revolution.
Diana Tenebe is the Chief Operating Officer of Foodstuff Store
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