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Multilateral Collaboration Still Crucial For Tackling Africa’s Conflicts

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Professor Maurice Okoli

By Professor Maurice Okoli

Burkina Faso, Mali and Niger have adopted an incredible approach towards tackling chronic conflicts and related security threats from various extremist groups like Boko Haram, al-Qaida, and Islamic State-affiliated groups by creating a formidable military alliance in the semi-arid Sahel region in West Africa.

As these West African States are entangled in fierce ethnic-Islamic conflicts that have adversely impacted their sustainable development and economic progress, the trio-military force reflects more proactive and dynamic coordination in resolving their security hurdles. It would also enhance practical possibilities of combating terrorism and extremism in the interests of strengthening peace and security in the Sahel-Sahara region and other parts of West Africa.

Historically the three were closely under French political control and have extended economic and security ties since colonial times. This geographically landlocked Burkina Faso has had several military coup d’états, the latest took place in Jan. 2022. Mali (May 24, 2021) and Niger (July 26, 2023) witnessed similar political trends, and both are now under military administration and share startling critical accusations of corruption and malfunctioning of state governance against previous governments. But the finger-end points to France for gross under-development and large-scale exploitation.

These former French colonies have, for the past years, suffered from growing political deficiencies and frequent Islamic attacks. But the key reason, the underlying cause, those tribes are rebelling is due to deep-seated abject poverty across the region. Staging military takeovers was the trio’s dynamic struggle to wage a collective war against their governments and France’s influence and hegemony. For instance, France, the United States and other European nations have poured hundreds of millions of dollars into shoring up Niger’s army and the coup has been seen as a major setback. Overall security environment poses uncertain challenges and devises strategies to tackle these emerging threats in the region.

Existing Sanctions

Since last year, Burkina Faso, Mali and Niger have been under regional and continental sanctions. The 15-member West African regional bloc has imposed stringent sanctions, finding a peaceful solution to the deepening crisis, but yielded little tangible results with no clarity on the next steps.

The African Union (AU), the continental organization which primarily coordinates the political and economic as well as the socio-cultural activities, observes the new trends as military rule spreads or re-appears in the West African region. That however, the Chairperson of the African Union Commission, Moussa Faki Mahamat, strongly condemned such actions and further moved to impose its sanctions as well on the military-ridden states. Their AU memberships, since then, have accordingly been suspended too.

Quite recently, on 28 November 2023, the United Nations Secretary-General António Guterres and the African Union Commission Chairperson Moussa Faki Mahamat convened their seventh African Union-United Nations Annual Conference in New York. In a joint communiqué issued at the end of the meeting, both reviewed progress in the implementation of the UN-AU Joint Framework for Enhanced Partnership in Peace and Security and the AU-UN Framework for the Implementation of Agenda 2063.

In particular, António Guterres and  Moussa Mahamat again condemned the resurgence of unconstitutional changes of government in Africa and stressed the need for a timely and peaceful return to constitutional order in Burkina Faso, Gabon, Guinea, Mali, Niger and Sudan which are undergoing complex political transitions to sustain peace, development and human rights in the long term. There must be extensive political awareness among the people in the Sahel region to focus on democracy, development, security and stability. It also called for the release of President Bazoum and other arrested government officials.

Nevertheless, the Economic Community of West African States (ECOWAS) and the Intergovernmental Authority for Development (IGAD) were tasked to enhance their joint efforts to promote inclusive political transitions in those countries in support of the efforts of the respective transitional authorities and regional bodies. The meeting called for continued efforts towards the timely completion of all ongoing political transitions through peaceful, inclusive, transparent and credible elections.

Against this backdrop, they expressed concern over the challenges African countries continue to face towards the achievement of the AU Agenda 2063. Burkina Faso, Guinea, Mali and Niger, nevertheless have displayed defiance to the sanctions and, crafting a number of approaches and making their efforts toward addressing security and development-oriented issues combined with some kind of good governance.

Revisiting the Past

Within the context of the changing political situation, Russia is rapidly penetrating the Sahel. Moreover, to Russia’s expectations, these Sahelian States have in place provisional governments, which include civil society representatives. “We believe that a military approach to settling the crisis in Niger risks leading to a protracted standoff in the African country and a sharp destabilization of the situation in the Sahara-Sahelian region as a whole,” according to the statement posted to the Foreign Affairs Ministry’s website.

South African Institute of International Affairs reports established the fact that Russia seeks to build on Soviet-era ties, steadily widening its influence, and noticeably deploy the rhetoric of anti-colonialism in Africa. Russia is engaged in an asymmetric influence campaign in Africa. Borrowing from its Syria playbook, Moscow has followed a pattern of parachuting to prop up politically isolated leaders facing crises, often with abundant natural resources. Russia is fighting neo-colonialism from the West, especially in relations with the former colonies. According to the report, Russia sees France as a threat to its interests in Francophone West Africa, the Maghreb and the Sahel. The SAIIA is South Africa’s premier non-government research institute on international issues. (SAIIA, Nov. 2021 Report).

“Sanctions have already been announced against Niger, and its membership in the organization is likely to be suspended. Thus, a belt of states in political isolation and bordering on each other is forming in the Sahara-Sahelian region: Guinea – Mali – Burkina Faso – Niger. Russia is interested in expanding relations with Niger, as well as with all other African States, and thus could help to normalize the situation there,” Vsevolod Sviridov, Expert at the HSE University Center for African Studies, told Russia’s Financial Izvestia.

Russia’s Economic Interest

In pursuit of development, the five Sahel states need peace. An analysis of geopolitical factors underscores glaring facts that Russia is getting stronger with its military influence on a bilateral basis, bartering equipment in exchange for access to natural resources. Mali has an agreement with Russia to build a gold refinery while Burkina Faso also wanted energy power. A four-year memorandum guarantees the West African country’s largest gold refinery. Russia’s state nuclear energy company Rosatom signed a deal with Mali in October 2023 to explore minerals and produce nuclear energy. It unreservedly offered a high-level promise to build a 200- to 300-megawatt solar power plant by mid-2025.

Economic Performance

International Monetary Fund (IMF) and the World Bank research reports show that Sahelian states’ economy may face relative stagnation due to unstable conditions including persistent protests in the region. Burkina Faso, Chad, Mali and Niger have been severely affected by the rise in militancy, affecting overall economic performance. Agriculture represents 32% of its gross domestic product and occupies 80% of the working population in Burkina Faso. A large part of the economic activity of the country is funded by international aid, despite having gold ores in abundance. Burkina Faso is the fourth-largest gold producer in Africa, after South Africa, Mali and Ghana.

The December 2023 report by the World Bank, for example, indicated that the poverty rate across the Sahelian region is still deepening due to poor management and governance. The economic and social development could, to some extent, be sustained based on ensuring political stability in the subregion, supporting and intensifying local production, its openness to international trade and export diversification.

According to the UN’s Multidimensional Poverty Index (MPI) report of 2023, Niger is one of the poorest countries in the world. It faces challenges to development due to its landlocked position, even though it possesses some natural resources including uranium ore. Government finance is derived from revenue exports (mining, oil and agricultural exports) as well as various forms of taxes collected by the government. Reports, however, estimated improvement in its revenues after the exit of France. Niger was the main supplier of uranium to the EU, followed by Kazakhstan and Russia.

Across the Sahel, the estimated aggregate population of 120 million is predominantly young, with 49.2% generally under 25 years old. The conflicts have only deepened poverty and food insecurity, and the challenges increasingly gaining ground in those countries. Future growth may be sustained by the exploitation of various untapped resources. Uranium prices have recovered somewhat over the last few years. But much also depends largely on state control, and good governance, by prioritizing economic sectors in the region.

Latest Developments

Niger has scrapped two key security agreements with the European Union that were intended to help fight violence in the Sahel region. It completely withdrew from EU Military Partnership Mission that was launched in February in Niger. It has also revoked approval for the EU Civilian Capacity-Building Mission, which was established in 2012 to help the country’s security forces fight militants and other threats. Most of Niger’s foreign economic and security allies have sanctioned the country, including France, which had 1,500 troops operating in Niger. All of them have been asked to leave.

In June 2022, Mali also abruptly withdrew from the G5-Sahel group and its Joint Force. The Joint Force was created in 2017 by the “G5” Heads of State—Burkina Faso, Chad, Mali, Mauritania and Niger—to counter-terrorism in the region. Reports pointed to the anti-French sentiments and under-equipped local armies to quickly step up their game against Islamist rebels in the volatile Sahelian region. By the end of 2022, France reduced and moved its troops. That ended the so-called “Operation Barkhane” which was a military mission marked by a tactic of permanent occupation of the Sahel countries by French troops. The French government, however, apparently would try to reorganize its strategy in Africa. From some indications, it appears the focus of action turns to the Gulf of Guinea.

At the AU Extraordinary Summit from May 25 to 28, 2022, held in Equatorial Guinea, Moussa Faki Mahamat, Chairperson of the African Union Commission, highlighted the factors contributing to the lack of development including good governance, the growing tendency of usurping power by the military and the significance of forging collective solidarity as a basis for resolving continental and regional problems. Both Senegalese president Macky Sall (then the AU Chairperson) and Moussa Mahamat, issued statements urging the interim military governments to return to constitutional regimes as early as possible, reassuring that the solutions to continental problems and overcoming the existing challenges depend on strong mobilization of African leaders and the effective coordination provided by the African Union. Regrettably, all these have not yet become a thing of the past.

United Nation’s Approach

The United Nations (UN) Under-Secretary-General for Peace Operations, Jean-Pierre Lacroix, has argued that the peacekeeping and terrorism fight faces greater challenges than ever and that it requires multinational mechanisms and approaches. It also requires member-states to adopt a collective capacity to support political and peace processes. Conflict is more complex and multi-layered.

According to Jean-Pierre Lacroix, peacekeepers are facing terrorists, criminals, armed groups and their allies, who have access to powerful modern weapons and a vested interest in perpetuating the chaos in which they thrive.  Further complicating this situation is the fact that most peacekeeping operations – particularly our large, so-called multidimensional missions in Africa – have long been affected by a discrepancy between their capacities and what is demanded of them by the Security Council and host countries. Financial resources are often inadequate for their mandated tasks.

What’s at Stake

Niger and Burkina Faso exited the anti-Islamist force this early December 2023, withdrawing from an international force known as the G5 that was set up to fight Islamists in the Sahel region. Now Burkina Faso, Mali and Niger – run by military rulers following coups who have formed their mutual defence pact. Their so-called Alliance of Sahel States (AES) was signed back in September. United Nations Secretary-General António Guterres has often spoken against such inter-state collaboration.

But Chad and Mauritania are still part of the G5 force which is meant to be made up of about 5,000 soldiers. A statement from the military-led governments of Burkina Faso and Niger was critical of the G5 force for failing to make the Sahel region safer. It also suggested the anti-jihadist force undermined the two African nations’ desire for greater “independence and dignity” – and was serving foreign interests instead. They almost certainly meant France, whose power has dramatically deteriorated.

Usually referred to as the G5 Sahel, these countries – Burkina Faso, Chad, Mali, Mauritania and Niger – are engulfed with various socio-economic problems primarily due to the system of governance and poor policies toward sustainable development. In addition, rights abuse and cultural practices to a considerable extent affect the current state of development.

The big question is what impact this would have on the Islamist militant groups that have been growing in numerical strength, scope of operations and degree of force across the Sahel region. Russia is back in prominence on the world stage. As it flexes its muscles and tentacles to gain influence, the stature of the EU/US continues seemingly fading away. And former French colonies are simply turning to Russia for military support, bartering their natural resources for further much-anticipated collaborative partnerships. Russia has already agreed to develop nuclear power plants in Mali, while in Burkina Faso, it plans to construct an oil refinery.

For fear and concerns about the new rise of all kinds of terrorism and frequent attacks, the Sahel-5 are all turning to Russia for military assistance to fight growing terrorism, and efforts to strengthen political dialogue and promote some kind of partnerships relating to trade and the economy in the region. At the same time, with renewed and full-fledged interest to uproot French domination, Russia has ultimately begun making inroads into the entire Sahel region, an elongated landlocked territory located between North Africa (Maghreb) and West Africa, that stretches from the Atlantic Ocean to the Red Sea.

Unique Lessons from Southern Africa

At least the majority of African leaders have to consider a complete overhaul of their security system across Africa. The Security Committees of the African Union and that of the Economic Community of West African States have to learn a few lessons and methodological approaches in dealing with indiscriminate threats of terrorism, militant groups, Islamic State-linked insurgencies and other related issues in Mozambique.

The worsening security situation at that time was a major setback for Mozambique but has been controlled by the involvement of regional troops from Rwanda and the Southern African Development Community Military Mission (SAMIM). Rwanda offered 1,000 in July 2021. South Africa has the largest contingent of approximately 1,500 troops. External countries are enormously helping to stabilize the situation in Mozambique. Its former colonizers Portugal and the United States both sent special forces to train local troops. Mozambique’s approach towards fighting growing threats of terrorism and conflict resolution offers explicit valuable lessons for the G5 Sahel which are Burkina Faso, Chad, Mali, Mauritania and Niger.

At the panel discussions during the mid-December U.S.-Africa Summit in Washington, Mozambican President Filipe Nyusi was very outspoken and shared valuable experiences with the audience about the use of well-constituted regional military force for enforcing peace and security in Mozambique. He told the panellists that there has been “remarkable progress” as businesses have restarted and displaced people began returning to Cabo Delgado, northern Mozambique. His argument simply was on the necessity of adopting ‘African solutions to African problems’ on peace and security issues across Africa, and this should be seriously considered as the most suitable, comprehensive approach under the current emerging geopolitical situation.

Joint regional forces within the context of multilateralism still have, to a large degree, significance in tackling conflicts in Africa. The Joint Forces of the Southern African Development Community are keeping peace in northern Mozambique. The rules, standards and policies, provision of assistance as well as the legal instruments and practices are based on the protocols of building and security stipulated by the African Union. It falls within the framework of peace and security requirements of the African Union. And has an appreciable commendation from the United Nations Security Council.

“We welcome collective action from SADC in committing to bringing sustainable peace to the region. We urge our leaders to consider the lessons learnt from other similar conflicts in Africa. In the Sahel, Somalia, and the Niger Delta offer stark contemporary reminders that a purely militaristic solution (devoid of measures to address the causes of the insurgency) increases the likelihood of its intractability. It is also unlikely to pave the way towards achieving sustainable peace,” the official statement from SADC.

The complexity and challenges in navigating this regional security partnership could be diverse, it depends also on political culture and mechanism of pragmatic approach. There have been various assessments and interpretations, but the security initiative to create the joint southern force underscores the multiplex dynamics to better play at home-grown solutions. The SADC initiative portrays a distinctive blueprint for purely African-headed peacekeeping success stories in the region, precisely for Mozambique and this could be replicated in West Africa.

With the changes sweeping across the world, it is glaringly well-known that a number of external countries are using Africa to achieve geopolitical goals, sowing seeds of confrontation which threaten African unity. Prime Minister Abiy Ahmed, the Federal Democratic Republic of Ethiopia (FDRE), during the 36th Ordinary Session of the African Union (AU) held in Addis Ababa, interestingly used the phrase – “African solutions to African problems” – seven times in his speech delivered on February 2023. He strongly suggested that for the existing conflicts and disputes on the continent, it is necessary to mobilize collective efforts to resolve them and “must be confined to this continent and quarantined from the contamination of non-African interference.”

Final Security Breathe

As the security situation stands, the best option is to consider new approaches, taking into cognizance local factors, to regulate tensions and to prioritize development and economic sovereignty in the Sahel. And of course, many experts have suggested that addressing the Sahel crisis requires collective efforts and cooperation from all parties involved that can bring positive change in the region. Ultimately, it must be through tailored collective efforts and, most importantly, within the African context taking local conditions into account. As shown by Mozambique, carefully evaluating the tangible advantages combined with results, underscores the degree of consideration given to foreign involvement in conflicts without bartering natural resources. Sometimes the geopolitical factors are intertwined, though. In any case, to separate facts from fiction, Mozambique’s exemplary case is undoubtedly marked by significant successes.

In the context of – “African solutions to African problems” –  the SADC’s regional force was earlier constituted in April 2021, agreed to deploy a regional force (3,000 troops) in Cabo Delgado, located in northern Mozambique and to fight threats of terrorism in neighbouring Southern African countries. What is referred to as Islamic attacks and insurgency caused havoc and devastation in Cabo Delgado province of Mozambique. The insurgency began in 2017 and left an unimaginable negative effect on settlements of the civilian population, and business and industry operations. The situation now is under control and seen as a distinctive example for the rest of Africa. With relative regional peace, Southern Africa looks now toward the direction of attaining its economic sovereignty. Besides that, SADC counted on funding from the United States and European Union (EU) and the United Nations.

Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia. He is an expert at the Roscongress Foundation and the Valdai Discussion Club. As an academic researcher and economist with a keen interest in current geopolitical changes and the emerging world order, Maurice Okoli frequently contributes articles for publication in reputable media portals on different aspects of the interconnection between developing and developed countries, particularly in Asia, Africa and Europe. With comments and suggestions, he can be reached via email: [email protected].

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Nigeria’s Bold Push to Bridge the Housing Deficit and Empower Citizens

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Victor Benjamin YP4T

By Victor Benjamin

Nigeria stands at a critical juncture in its journey towards providing adequate shelter for its burgeoning population. The stark reality of a 20 million unit housing deficit casts a long shadow, impacting not just individual well-being but also the nation’s socio-economic progress. Recognising the urgency and scale of this challenge, the administration of President Bola Tinubu has unveiled a comprehensive and ambitious strategy under the Renewed Hope Agenda, placing affordable housing within reach for millions of Nigerians. This multi-pronged approach, spearheaded by the Renewed Hope Housing Initiative and bolstered by innovative financing mechanisms, offers a beacon of optimism in a sector long plagued by systemic obstacles.

For too long, the dream of homeownership has remained elusive for a significant portion of the Nigerian populace. Several interconnected challenges have contributed to this protracted crisis. Sky-high property prices, often driven by land speculation and exorbitant construction costs, place housing far beyond the reach of average citizens. Compounding this issue is the underdeveloped state of the mortgage market. Access to long-term, affordable financing remains limited, with high interest rates and stringent eligibility criteria effectively excluding a vast majority of potential homeowners. The informal nature of a significant portion of the economy further complicates matters, as many individuals lack the formal employment and consistent income streams often required by traditional mortgage lenders.

Furthermore, infrastructural deficits across the country exacerbate the housing problem. Inadequate road networks, unreliable power supply, and limited access to clean water and sanitation not only make new developments more expensive but also detract from the quality of life in existing residential areas. The bureaucratic hurdles and complexities associated with land titling and approvals also contribute to delays and increased costs for developers, ultimately impacting affordability for buyers.

Against this backdrop of formidable challenges, the Renewed Hope Housing Initiative emerges as a significant and potentially transformative intervention. Its three core components – the Renewed Hope Social Housing Programme, the Renewed Hope Housing Estates, and the Renewed Hope Cities – are strategically designed to cater to different segments of the population and leverage diverse funding models.

The Renewed Hope Social Housing Programme, with its ambitious goal of constructing 100 units in each of the 774 local government areas within a year of launch, directly addresses the needs of the most vulnerable. By earmarking 80% of these homes for local residents earning a living wage, with monthly contributions capped at a third of their income, the program prioritises affordability and accessibility for low-income earners. The allocation of the remaining 20% to the most vulnerable citizens, free of charge, underscores a commitment to social inclusion and providing a safety net for those most in need. The inclusion of essential amenities like schools, clinics, and security outposts within these estates further enhances their liveability and fosters community development.

The Renewed Hope Housing Estates, targeting state capitals with a plan to build 250 units in each of the 30 states, represent a crucial step towards providing more affordable housing options in urban centers. Leveraging government budgetary allocations, infrastructure subsidies, and free land from state governments allows for significantly lower pricing, with one-bedroom apartments ranging between N8 million and N9 million. This initiative aims to bridge the gap for individuals and families with modest incomes who aspire to homeownership in urban areas.

The Renewed Hope Cities, developed through Public-Private Partnerships in seven strategic locations, tap into private sector expertise and capital to deliver large-scale housing projects. While the resulting prices are higher, reflecting the private developers’ investment in land and infrastructure, these cities are expected to offer a wider range of housing options and contribute significantly to reducing the overall housing deficit. The ongoing construction of 3,500 units in Lagos and Kano demonstrates the tangible progress being made under this component.

Complementing these direct housing programs is the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), a critical enabler for sustainable and affordable housing finance. The successful pilot fundraising, securing N250 billion, underscores the confidence of institutional investors in this innovative approach. MREIF’s ability to provide long-term, low-cost mortgage financing at interest rates as low as 12% with extended repayment tenors up to 20 years directly tackles one of the most significant barriers to homeownership in Nigeria. Furthermore, by offering off-take guarantees to developers, MREIF helps de-risk large-scale projects and unlock crucial financing. The integration of MREIF with commercial banks, mortgage providers, and developers promises to create a more robust and efficient housing finance ecosystem.

The vision underpinning the Renewed Hope Housing Initiative is one of a Nigeria where decent and affordable housing is not a privilege but a right accessible to all citizens. By adopting a multi-pronged approach that addresses the diverse needs of the population and leverages both public and private sector resources, the government aims to not only bridge the housing deficit but also stimulate economic growth, create jobs, and foster social stability. Empowering low-income earners with affordable housing options can improve their quality of life, provide a foundation for wealth building, and contribute to a more equitable society. Similarly, enabling middle-income families to access affordable mortgages can unlock their economic potential and contribute to overall national development.

While the Renewed Hope Housing Initiative holds immense promise, its success will hinge on effective implementation, transparency, and sustained commitment. Addressing the underlying challenges of land administration, infrastructure development, and bureaucratic efficiency will be crucial for ensuring the long-term sustainability and impact of these programs. Nevertheless, the bold vision and the comprehensive strategy embodied in the Renewed Hope Agenda offer a renewed sense of optimism that Nigeria is finally embarking on a transformative journey towards housing its citizens and building a more prosperous and inclusive future.

Victor Benjamin is the West/South South Director for YP4T

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e-Commerce Lessons for Scaling Nigeria’s Food Distribution

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Foodstuff Store

By Diana Tenebe

Nigeria stands at the cusp of an agricultural revolution with the ambitious plan to significantly transform its food and agriculture sector through the launch of the $510 million Special Agro-Industrial Processing Zones (SAPZ), financed by the African Development Bank and development partners. Fueled by the integration of cutting-edge technologies aimed at boosting food production and ensuring national food security.

However, as yields increase, a formidable hurdle remains: the efficient and scalable distribution of this bounty across the nation’s diverse landscapes, often hampered by infrastructural limitations and logistical complexities.

Dr. Bosun Tijani, the Minister of Communication, Innovation, and Digital Economy, recently called on Nigerian farmers to prepare for digital and technologically advanced farming methods, emphasising their crucial role in boosting food production and security.

Building upon this call for technological integration, and to truly unlock the full potential of Nigerian agriculture and ensure increased harvests translate to accessible and affordable food for all, the sector can draw invaluable lessons from the operational prowess of e-commerce giants like Amazon. Their success in navigating complex logistics and reaching vast customer bases offers a compelling blueprint for transforming Nigeria’s food distribution network.

Amazon’s dominance in the e-commerce realm is underpinned by a meticulously crafted logistics and supply chain system. Their significant investments in sprawling fulfillment networks, coupled with the strategic deployment of technology for route optimisation and real-time inventory tracking, have created an unparalleled engine for moving goods swiftly and efficiently.

Furthermore, their optimisation of last-mile delivery, integration of automation within warehouses, and a hybrid approach blending in-house capabilities with shrewd partnerships underscore their commitment to scalability. This intricate ecosystem is designed to handle massive volumes and adapt to fluctuating demands – a crucial capability that Nigeria’s agricultural sector desperately needs.

Translating these principles to the Nigerian context requires a fundamental shift towards building a resilient delivery infrastructure specifically tailored for agricultural produce. This necessitates moving beyond traditional, often inefficient methods and embracing hybrid transportation models that account for varying road conditions and geographical challenges.

Imagine a network that leverages a combination of refrigerated trucks for long-haul transport, smaller vehicles for navigating local terrains, and even innovative solutions like riverine transport where feasible. Integrating technologies like GPS tracking for real-time visibility of produce movement and strategically establishing a network of collection and distribution hubs across key agricultural zones can significantly streamline the flow of goods.

Implementing robust systems for real-time tracking of harvests and produce, mirroring Amazon’s inventory management, will be crucial in minimising spoilage and maximizing freshness as food travels from farm to consumer. Moreover, forging strategic alliances with existing local logistics providers, leveraging their on-the-ground knowledge and infrastructure, can provide a vital springboard for building a comprehensive network without starting entirely from scratch.

Beyond the physical movement of goods, the power of data, a cornerstone of Amazon’s success, holds immense potential for revolutionising Nigerian food distribution. Leveraging data analytics can provide invaluable insights into regional demand patterns, allowing for more accurate forecasting of optimal harvest and distribution times.

This data-driven approach can help match agricultural supply with consumer needs with greater precision, reducing waste and ensuring that the right produce reaches the right markets at the right time – much like Amazon utilizes data for personalized recommendations and understanding customer purchase behavior. Imagine farmers making informed decisions about planting based on predicted market demands or logistics providers optimizing routes based on real-time demand fluctuations.

Furthermore, adopting Amazon’s unwavering focus on customer convenience and trust is paramount, especially when dealing with perishable goods. Establishing reliable delivery schedules, ensuring the quality and freshness of produce upon arrival, and implementing transparent processes throughout the supply chain are crucial for building confidence among both farmers and consumers. This might involve implementing quality control measures at various stages, providing clear communication about delivery timelines, and potentially even exploring traceability systems that allow consumers to understand the journey of their food.

Finally, navigating the complexities and dynamism of the Nigerian market demands a long-term vision and a high degree of adaptability, mirroring Amazon’s sustained focus and agility in the ever-evolving e-commerce landscape.

The Nigerian agricultural sector must be prepared to iterate, learn from its experiences, and continuously refine its distribution strategies in response to local challenges and opportunities. This requires a collaborative approach involving government agencies, agricultural organisations, technology providers, and logistics companies working together to build a sustainable and efficient food distribution ecosystem.

By strategically adapting these e-commerce-inspired lessons in logistics, technology adoption, data-driven decision-making, and customer focus to the unique context of Nigerian agriculture, the nation can forge a distribution system capable of efficiently handling increased production. This transformative approach is not merely about moving food; it’s about ensuring that the fruits of Nigeria’s agricultural advancements reach every corner of the country, contributing significantly to food security, mitigating the rising cost of food, and ultimately cultivating a thriving and efficient agricultural future for all Nigerians.

Diana Tenebe is the Chief Operating Officer of Foodstuff Store

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The Blood Profits of Nigerian Banks

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Michael Owhoko

By Michael Owhoko, PhD

The astronomical rise in banks’ profits as reflected in the 2024 full year financial report has exposed the banking industry as a lucrative enterprise powered by arbitrary charges imposed on unwilling customers. In some cases, these inexplicable fees and other unholy electronic deductions, leave customers to reel on the throes of pains, with impact on their blood.

That the Central Bank of Nigeria (CBN) has been penalizing the banks for flouting stipulated guidelines as contained in its Guide to Charges by Banks, Other Financial, and Non-bank Financial Institutions is a confirmation that these banks deliberately use arbitrary and excessive charges to fleece customers, obviously to boost profitability.

Since these painful charges constitute part of the big profits made by banks at the expense of customers, they are likened to blood profits.  Like blood money, which is obtained at the expense of another’s man’s life, blood profits are earnings gained by banks at the cost of customers’ blood.

In context, blood here refers to the sweat, sacrifice, pains, frustration and helplessness customers go through when deductions veiled in hidden and arbitrary charges are made on their accounts.In other words, bank earnings are tantamount to blood profits when viewed against the backdrop of resultant pains suffered by helpless customers who bear the brunt of arbitrary charges.

These charges are embedded in crazy debits alerts sent through SMS notifications and emails, and sometimes,they are delivered incoherently, in arrears or at odd hours, perhaps,to shield or distract customers from scrutinizing the alerts.  Besides causing general body imbalance, the charges also trigger mood swings and countenance upset among customers, once received.

Some of these crazy charges include, but not limited to commission on turnover, withdrawal fees, transfer charges, electronic money transfer, processing fees, VAT charges, ATM fees, debit or credit cards issuance, replacement or renewal fees, account maintenance fees, NIP transfer charges, SMS alert charges, stamp duty fees, interest charges, SMS VAT charges, hardware token charges, cybersecurity levy, bills payment fees, and other random levies.

Besides, the CBN’s recent introduction of on-site and off-site charges during cash withdrawals at ATM machines,is also unhelpful and inimical to current plight of bank customers, who are now compelled to pay withdrawal fees for use of ATM machines owned by banks other than theirs.  But where such transactions are carried out in customers’ own banks, such transactions attract no charges.  This introduction is coming on the heels of a fresh increase of SMS alerts charges from N4 to N6 per transaction, further compounding the woes of customers.

Implicitly, these charges constitute huge burden on the average bank customer who contends daily with depletion in his or her account balances.  Corporate customers or businesses are also not spared from these questionable charges that have become a drain on the balance-sheet of companies.

With about 312 million active accounts bank-wide as at December 2024, these irrational charges have contributed immensely to the bottom line, occupying a larger space in the profit basket of banks, dislodging loans and foreign exchange sources of profits, which have diminished overtime by high-interest rate regime and prevailing foreign exchange dynamics.

For example, from the 2024 financial year report of just five of the tier 1 banks, the profit growth rose enormously with pre-tax profit hitting N4.56 trillion, approximately 69.5 percent increase compared to N2.69 trillion declared in 2023, while their net profit after tax rose by 66.2 percent in 2024, amounting to N3.78 trillion, as against N2.27 trillion recorded in 2023.

These five tier 1 banks, whose total combined assets in 2024 reached N108.21 trillion, from just N72.80 trillion recorded in 2023, include First Holdco Plc, GTCO Plc, Zenith Bank Plc, UBA Plc,and Stanbic IBTC Holdings Plc.

Specifically, First Holdco grew its profit before tax to N862.39 billion in 2024 from N356.15 recorded in 2023, just as its profit after tax rose to N736.7 billion in 2024 from N308.4 billion it earned in 2023. GTCO on the other hand, grew its pre-tax profit from N609.3 billion in 2023 to N1.27 trillion in 2024, with its net profit rising to N1.02 trillion in 2024 from N529.66 billion made in 2023.

Also, Zenith Bank grew its profit before tax to N1.33 trillion in 2024 from N795.96 billion recorded in 2023, just as its profit after tax rose from N676.9 billion in 2023 to N1.03 trillion in 2024. Similarly, UBA grew its pre-tax profit to N803.72 billion in 2024 from N757.68 billion it recorded in 2023, with its net profit increased from N607.7 billion in 2023 to N766.6 billion in 2024.

In the same vein, Stanbic IBTC Holdings reported a profit before tax of N303.8 billion in 2024 from N172.91 billion it made in 2023.  Its profit after tax rose to N225.3 billion in 2024, compared to N140.62 it recorded in 2023.

With charges as sources of cheap revenue, banks are no longer motivated to embark on constructive and creative efforts in their quest for profit generation.  Profits gained from matching of deposit funds against credit lendingin consonant with traditional banking, are now waning.  Perhaps, this explains the drop in number of banks’ female employees deployed to chase depositors for cheap funds.

Though, lacking ingenuity and industry,use of charges as sources ofcheap profits, can make the ordinary businessman to be envious of bank owners.  Even Aliko Dangote, as the richest man in Africa, perhaps, may be regretting for allowing his bank, Liberty Merchant Bank, to go under, just like previous bank owners whose banks have closed shop.  Their banks might have been sources of value addition to their wealth.

Regrettably, rather than portray the banks in positive light, these colossal profits shunned out by Nigerian banks, are stirring negative public perception about their operational methods, believed generally to be unhelpful to individual and business ventures, particularly, small and medium business enterprises.

The Federal Government and CBN are complicit in this unjustifiable charges and levies.  Reason: the Federal Government recently received approximately N84.05 billion from Electronic Money Transfer Levy alone in the first quarter of this year, 2025.  This is unhealthy, and a nightmare for the average Nigerian bank customer, who sees it as sheer extortion.

Since the government is a direct beneficiary of these charges, CBN may have been reluctant to  exercise strict and regular oversight over the banks on compliance with its guidelines.  And this may have unwittingly,encouraged the banks to thrive in unbridled manner, particularly, in “under the table transactions.”  These boom and windfall profits would have been near impossible under a sane financial environment typified by global best banking practices.

So, while the banks jubilate for a job well done for full year 2024 financial reports, the real sector and individual customers for which the banks were established to support, groan and suffocate in pains due to business decline and losses suffered, including, in some cases, complete closure of operations and insolvency.

Put differently, the banking system has become a pain in the neck of customers.  While customers are experiencing frustrations from incessant debit alerts attributable to subjective and jumbled charges, corporate customers, in addition,also suffer from inability to access simple credits to run businesses,including foreign exchange to settle Letters of Credit.

It is therefore imperative to compel the banks to function appropriately without putting the customers through pains.  Gaps created by CBN’s unimpressive efforts at enforcing compliance with rules guiding bank charges, should be filled by various consumer protection agencies for the good of customers.

The Federal Competition and Consumer Protection Commission (FCCPC) and other non-governmental organisations (NGOs) established to protect the interest of consumers should rise to the challenge of banks’growing quest for abnormal profit through use of arbitrary charges,devoid of empathy for emotional state of customers.

Some of the policies that necessitated the bank charges should be reviewed,so as not to discourage Nigerians from optimizing the services of the banking industry.  Failure to do this, could undermine government’s cashless policy, with implication on banks’ total clientele base.  Moreso, as the country is still underbanked.

The banks must therefore, wake up,smell the coffee,feel the impulse of customers, and shore up the dwindling integrity and reputation of the banking industry.

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.

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