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Infrastructure, Education and Abia State Example

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Abia State

By Jerome-Mario Utomi

It is a pedestrian knowledge that Vice-President of the Federal Republic of Nigeria, Kashim Shettima some weeks ago inaugurated the 188-megawatt geometric power plant in Aba, Abia state, to accelerate power supply to industrial clusters in the region.

The power plant is a private sector-driven initiative and is described as the first and biggest integrated electricity facility in Nigeria, located in the Osisioma industrial area of the south-eastern state and it is understood that Aba Power Limited Electric, a new electricity distribution company (DisCo), will take electricity from the plant and supply it to nine local government areas — out of 17 — in Abia state.

While this feat is celebrated, what appears very interesting is the remark by the state governor that “When he first saw the proposal for geometric integrated power plant, he knew that he had to be involved immediately because, if just 50 per cent of what had been proposed could be achieved, the industrial output from this great city and its environs would triple and millions of new jobs will be created directly and indirectly in the short to medium term. The success of the power project will send a clear signal to local and international investors that Aba is open for businesses. He stated.

Indeed, while the state governor’s decision to associate with the initiative and his laudable efforts in other sectors, particularly as infrastructural provisions in the state remain commendable, this piece believed and still believes that Governor Alex Otti, recent allocation of 20% of the state’s 2024 annual budget to the education sector remains a positive development in the country that deserves our collective praise.

Aside from demonstrating a government’s unwavering commitment to elevating these crucial sectors to their utmost potential, ultimately benefiting our citizens, allocating 20% and 15% of the state’s 2024 annual budget to education and health, respectively, marks a historic milestone in Nigeria’s budgeting.

The facts are there and speak for it.

Successive administrations at both state and Federal levels have done very little when it comes to funding education. These have led to multi-faceted challenges that confront us today.

Take, as an illustration, a particular report in 2013, described as mind-numbing the awareness that about 10.5 million Nigerian children of school age are not enrolled in schools. Out of this number, the report explained that about 9 million, are children of beggars, fishermen and other less privileged people in society.

Again, in 2018, a survey showed that the population of out-of-school children in Nigeria had risen from 10.5 million to 13.2 million, the highest in the world.

The survey says something else; there is still a huge number of those who are in school, but are learning nothing, noting that schooling does not always lead to learning. In Nigeria, there are more non-learners in school than out of school, it concluded.

A similar study expressed worry that with the nation’s current population of about 200 million, 45 per cent of which are below 15 years old, there is a huge demand for learning opportunities translating into increased enrolment. This has created challenges in ensuring quality education since resources are spread more thinly, resulting in more than 100 pupils for one teacher in most of the public primary and secondary schools in the country.

There exist, in my opinion, three major troubling realities that characterize the situation as a crisis.

First is the awareness that Nigeria is not in short supply of policy measures and laws to ensure that no child is left behind in education. Yet, the number keeps swelling each year. As argued elsewhere, there is free and compulsory primary and junior secondary education to cater for children aged five to 14 years.

To explain this point, the Universal Basic Education Act 2004 is the legal framework that provides for compulsory, free and universal basic education for all children of primary and junior secondary school age in the country. There is also the Child Rights Act, which reinforces this as a basic human right by prescribing schooling up to junior secondary school.

UBEC intervention funds as we know are focused on collaboration with other state actors towards improving access to basic education and reducing Nigeria’s out-of-school children. The budgetary allocation for education for example in 2020 is N671.07 billion constituting 6.7%. Of the N671.07 billion allocated to the Federal Ministry of Education, the sum includes the statutory transfer allocated to the Universal Basic Education Commission (UBEC), which is N111.79 billion.

Yet, most of the states cannot draw from this fund as a result of their (states) inability to provide the counterpart funding.

So, what benefits is the fund?

It was such encumbrance I presume, that some years ago, prompted the Ekiti State Governor, Dr Kayode Fayemi, to call on the Federal Government to remove counterpart funding, as part of basic requirements for states to access Federal Government funding of Universal Basic Education Commission (UBEC)

The second factor fueling of school challenge in Nigeria stems from the awareness that despite the Universal Declaration of education as a fundamental human right for everyone and this right was further detailed in the Convention against Discrimination in Education, Nigerian governments, particularly the northern governors, failed to turn more of their energies in, or focus their creativity on the useful things that will translate to the empowerment of the people.

They made policies that view education as very narrow and restricted.

Presently, what Nigeria needs is a restless determination to make the idea of governance a reality. At this critical point of our nationhood, Federal and State governors must draw a lesson from Abia state government. They need to do this work and in doing the work, stimulate their people, particularly the youths to learn and acquire higher levels of skills and techniques for economic independence.

Certain technical steps must be taken.

First, it is time to recognize that any nation desirous of securing the future of its people must invest in education. This is more urgent in the North where it is agreed that historical underdevelopment in Western education is responsible, more than the diversity in religious loyalties, for the social imbalance between the region and the South.

Similarly, the hour has come for state governors in Nigeria to adopt and support the 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. And 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 society.

The reason for this assertion is barefaced.

Few years ago, it was reported that Mathew Hassan Kukah- a well-informed, self-contained and quietly influential Bishop of the Catholic Diocese of Sokoto had during a four-day workshop tagged ‘’Interfaith Dialogue and Engagement’’ for Christians and Muslims in Minna, Niger state that the Kukah Centre (TKC), promised to introduce skill acquisition centres in the Northern part of the country where about 10 million Almajiri children will acquire vocations of their choice.

For sure, with the slow economic but high population growth in Nigeria particularly in the north, such a programme would have been an effective tool for fighting unemployment and consolidating economic growth. But for a yet-to-be-identified reason(s), no governor from the north bought into that opening provided or encouraged their youth to access such an opportunity.

Regardless of what others may say, it is in the interest of the government to educate its people on different skills that create jobs for the youths as a formidable way of curbing crime and reducing threatening insecurity in the country. It should be done not merely for political consideration but from the views of national development and sustenance of our democracy and the best place to start is adequate funding of the education sector and deliberate effort to drastically reduce the number of our school children.

When this is achieved, it will in turn bring about sustained peace; result in improved hygiene and medical care, and greater educational opportunities. Like Abia state, other state governments are hereby enjoined by this piece to embark on aggressive education of their people, ensuring its compulsion to a certain level.

To catalyse this process, a shift in action is important as ‘we cannot solve our socio-economic challenges with the same thinking we used when we created it’. The governors need to bring a change in the leadership paradigm by switching over to a leadership style that is capable of making successful decisions built on a higher quality of information.

Utomi is the Programme Coordinator (Media and Policy) for Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via [email protected]/08032725374

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The Future of Payments: Key Trends to Watch in 2025

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Luke Kyohere

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

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Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections

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ghana election 2024

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.

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The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms

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tax reform recommendations

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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