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NGX Doubles Down On Goal for Financial Inclusion, Empowering Individual Investors

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NGX Financial Inclusion

By Olumide Bolumole

Nigeria, a country with an adult population of 106 million, offers a vast market for financial services. Despite this, it faces the expectation of a 16.8% shortfall in meeting its financial inclusion target.

Financial literacy is critical to the growth of capital markets and the Nigerian Exchange Limited (“NGX”) prioritises its commitment to bridging the financial inclusion gap in Nigeria.

As a member of the Financial Inclusion Steering Committee of the Central Bank of Nigeria (CBN), and the Financial Inclusion Technical Committee of the Securities and Exchanges Commission (SEC), we continue to contribute towards the achievement of Nigeria’s National Financial Inclusion Strategy (NFIS) of reducing the proportion of Nigerians that are excluded from the capital market.

NGX supports the country-wide approach to addressing financial literacy and inclusion through an array of activities aimed at providing strategic direction, developing educational and outreach programmes, crafting suitable products and pilot initiatives, and reviewing progress of national financial literacy and inclusion targets.

The National Financial Inclusion Strategy targeted policymakers and market innovators alike with a common objective of enhancing access to finance and reducing the financial exclusion rate in Nigeria from 46.3% in 2010 to 20% in 2020. While overall financial inclusion continues to grow incrementally, progress has been too slow in meeting this target.

A survey conducted in 2020 by EFINA revealed that less than 30% of adult Nigerians have or use products or services from non-bank formal financial institutions and 78% attribute a lack of awareness and suitability of products as the main barriers to adoption. The survey also revealed that although Nigeria has a higher proportion of banked adults than many comparator countries, the proportion of adults without access to basic financial services is estimated at 36%.

As the challenges persist, the rapid growth in mobile payment technology and alternative financial services combined with a lack of financial literacy is likely to exacerbate inequality. Amid a growing number of financial instruments, such as equities, bonds and exchange-traded products, gaining importance, financial literacy initiatives need to be scalable to be effective.

NGX recognises that making well-informed financial decisions plays an important role in the ability of individuals to manage their financial affairs and contribute effectively to economic activities. To this end, the Exchange continues to implement and support initiatives that encourage the wider investing public to develop sustainable investment habits.

Inspiring children and youths

As a multi-asset securities exchange hub, NGX has pioneered a collaborative approach to advancing financial literacy and inclusion through a range of initiatives by engaging the next generation of investors and providing training through its dedicated learning arm, NGX X-Academy.

In 2014, NGX joined over 130 countries around the world in celebrating Global Money Week (GMW). The annual global celebration, organized by the Organization for Economic Co-operation and Development (OECD) and International Network on Financial Education (INFE), consists of local and regional events and activities aimed at inspiring children and youths to learn about money, saving, creating livelihoods, gaining employment and entrepreneurship. Since the first celebration in 2014, the Exchange has directly impacted close to 22,368 students through the GMW celebrations.

The role of financial literacy in improving the quality of life cannot be overemphasised. It goes without saying that financially literate investors are knowledgeable about opportunities in the capital market and are therefore in a better position to make informed investment decisions. So, greater awareness about the capital market is required on the part of retail investors to evaluate the choices available to them.

The Exchange’s longstanding commitment to promoting financial literacy is evinced through its hosting of the NGX Essay Competition, its flagship youth-focused financial literacy and inclusion programme. The competition aims to close the gap in classroom learning with the practical knowledge required for long-term personal financial planning.

The programme’s overall goal is to develop a culture of wealth creation among youths towards “Building a Financially Savvy Generation”. The Competition has been in existence since 2000 and has inspired over 67,000 young people in more than 12,000 schools across Nigeria.

NGX, through its X-Tour programme, hosted 1,864 students from 21 schools in 2019. The platform gives students exposure to a ‘live’ view of what happens at a securities exchange through a field trip to any of the Exchange’s trading floors across the country as well as interactive sessions on financial education topics.

The tours help to create interest among youths and inspire them to seek career opportunities in the capital markets. At the onset of the pandemic, NGX transitioned the X-Tours programme to a virtual event and continued to engage schools to host virtual financial literacy sessions with their students.

Capital market training

In 2019, the Exchange strengthened its resolve to promote financial inclusion in the Nigerian capital market by publishing the maiden edition of StockTown, a comic book aimed at promoting financial literacy. The book makes use of illustrated characters to educate readers of all ages about the importance of savings and investment. Now with a second edition, StockTown is available in both print and digital formats and can be downloaded at this link.

As part of efforts to boost capital market literacy, the Exchange also launched X-Academy, its dedicated learning hub, in 2017, and the X-Academy e-learning platform in 2019, to offer bespoke capital market training programmes to empower individuals and businesses to create value, strengthen financial literacy and enhance investment in the capital market.

The X-Academy feeds directly into the government’s National Financial Inclusion Strategy. The programmes offered by X-Academy are facilitated by seasoned subject matter experts, with both domestic and international exposure along with practical experience. These programmes are built around six broad themes, which comprise: Listings and Trading, NGX Products, Market Data and Technology, Financial Education, Corporate Governance, and Risk Management and Compliance.

NGX has played a leading role in developing financial instruments that advance financial inclusion in the Nigerian capital market. The development and issuance of the Federal Government of Nigeria (FGN) Ijarah Sukuk has proven to be a highly attractive instrument that supports inclusion from Nigeria’s ethical and sharia-compliant investors. The Ijarah Sukuk were designed with financial inclusion in mind, offering low entry points to ensure participation from low-income earners.

The Exchange also played a leading role in developing the FGN Savings Bonds, another financial instrument aimed at promoting financial inclusion in the Nigerian capital market. The bond made its debut on the NGX Retail Bond Market in March 2017.

It was designed to provide opportunities to invest in capital markets for all citizens irrespective of income level and to contribute to national development. The bond features a low entry point and is tailored and targeted at retail investors to promote a savings culture among Nigerians while diversifying funding sources for the federal government.

Olumide Bolumole is the Divisional Head, Listings Business, Nigerian Exchange Limited

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CEPEJ and the Reality of Niger Delta Underdevelopment Crisis

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flood in bayelsa niger delta

By Jerome-Mario Utomi

Talking about the Niger Delta region of Nigeria, it is true that today there exists in the Petroleum Industry Act (PIA) which made some far-reaching provisions for the host community’s development such as its demand that any oil prospecting licence or mining lease or an operating company on behalf of joint venture partners (the settlor) is required to contribute 3% of its actual operating expenditure in the immediately preceding calendar year to the host communities development trust fund. This is in addition to the existing contribution of 3% to the Niger Delta Development Commission (NDDC).

It is also true that recently, Professor Yemi Osinbajo, the Vice President of Nigeria, at a function in Lagos noted that the present administration was determined to see through to the completion of all the critical projects in the region.

Once more, we are equally witnesses to the fact that the Minister of Environment, Dr Mohammad Abubakar, after a meeting in Port Harcourt, said his ministry was in talks with key stakeholders in the Niger Delta region on devising a blueprint for alternative ways to preserve, conserve and restore mangrove in the region.

Abubakar, who said the destruction of mangroves was catastrophic to the economy of the nation, noted that the resolution of the meeting in Port Harcourt was to focus on starting with short term goals of seeking alternative means of making people stay away from mangrove destruction.

However, if a serious statistical study is carried out about the area, it may be ‘amazing’ how the Niger Delta region has, and despite all these moves remained a backward and degraded, coastal region occasioned by crude oil exploration, exploitation and production with no better chance of development as the government is not ready to learn from its past mistakes which bother on the adoption of a non-participatory approach to development that strips the people of the region their sense of ownership over their own issues.

And as a consequence, cast a long dark shadow on efforts to improve the wellbeing and economic development of the region’s individuals, peoples, and communities while resulting in a state where the region’s communal right to a clean environment and access to clean water supplies was brazenly violated. And fierce war raged in the region between ethnic and social forces over the ownership and control of oil resources in the Niger Delta.

Bringing this ugly account to the fore is a recently well-timed statement/alarm raised by the Centre for Peace and Environmental Justice (CEPEJ), Comrade Mulade Sheriff, calling on the Federal Government of Nigeria not to hands-off Niger Delta region until it completes the environmental remediation and socio-economic rejuvenation of the zone devastated by long periods of oil spill neglect, crude oil exploration/exploitation, deprivation and marginalization.

The group spoke recently in Warri, Delta State against the backdrop of speculations, claims and counterclaims in some quarters regarding the advent of the PIA that the federal government will abandon its responsibility to remediate the environment.

It was argued that the PIA and allocation of 3% to host communities do not mean the federal government should shy aware of its primary responsibility of providing basic amenities for and care for her citizens, especially when the government is the main beneficiary of oil production proceeds from the region and the cause of degradation of the Niger Delta environment.

The environmental rights group, while speaking with newsmen in Warri, asserted that it is the responsibility of the Nigeria government and oil companies to remediate the degraded environment, pay adequate compensation to affected host communities and rejuvenate the lost socio-economic wellbeing of Niger Deltans for the impoverished state caused by crude oil exploration activities engineered by the federal government.

CEPEJ drew the attention of the federal government and other relevant agencies to the fact that the region has long been degraded and the environment devastated before the emergence of PIA, hence, it cannot and should not hide under the Act to further marginalize the region, rather, it should be directly involved in the remediation and socio-economic rejuvenation of the region.

Remediation and rejuvenation of the socio-economic life of the people in the Niger Delta region of the country is a responsibility that is extremely important which successive administrations have failed to address and spent far too long a time not only to attend to but also to accomplish.

In explaining the importance of the PIA to host communities, CEPEJ said “the Law or Act cannot take retrospective effect on the people it’s meant to benefit and Nigerians should not lose sight of the beneficial reality of the Act.

“Before the federal government can hands off the Niger Delta, it must complete its environmental remediation as well as socioeconomic rejuvenation of the environment which is what the federal government owns the people living in the region.

“It will be unethical for the federal government to hands off at a time when the world is in agreement in terms of citizen and communal right of the people, and that it is the communal rights of the Niger Delta people to have a clean environment and access to clean water supplies which are being violated by Nigeria government and oil-producing companies operating in the region.”

It also asserts that, by the admission of oil companies to the region, ‘the oil industries have abandoned thousands of polluted sites in the region which need to be identified and studied in detail, He, therefore, called on environmental experts to go the extra mile to identify these spots, study them and make cases for the affected communities.

While complaining about the negative effect of oil operations in the Niger Delta, CEPEJ said due to degradation of the environment, aquatic organism and water supply sources are being adversely affected including the health and wellbeing of the people which has resulted in high mortality.

He also said that the present environmental state caused by oil companies and their operational activities need to be recovered while affected communities are adequately compensated for their losses.

Referencing what is obtainable in other oil-producing nations around the world, the rights group said, “We expect the federal government to apply what is obtainable in countries such as the Netherlands where the Dutch government requires all operators to restore their areas of operation back to how nature intended, which means all infrastructures used for operations during active production will be removed at the end of production and proper maintenance of the environment need to be carried out.”

“He said this method of operation is referred to “abandonment liability” which the operating company need to carry out at the end of active operation, and that is what he expects the Nigeria government to emulate.

On the management of the 3% to host communities, the group submitted that the 13 per cent oil derivation fund and the PIA fund are meant to address the environmental, ecological and infrastructural development issues of oil communities and “we expect that should be done to better the lives of people living in oil and gas host communities.”

He further insisted that the 3 per cent PIA fund should be managed by the Host Community Trust Fund as stipulated by the PIA.

It concluded that leaving the funds under the hands of Ministers or State Governors to control or even nominate candidates to manage the fund for host communities might lead to its being mismanaged the same way the 13% derivation fund allocated to oil and gas producing states for the development of oil and gas host communities was misappropriated.

To avoid a repeat of such stories, the host communities should nominate credible individuals to manage the Host Community Trust Fund as stipulated in the PIA for speedy infrastructural development and environmentally friendly condition of the oil-rich region of Nigeria.

Indeed, CEPEJ, in my view, may not be wrong.

Jerome-Mario Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He could be reached via jeromeutomi@yahoo.com/08032725374

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#EndSARS: No Real Consequence for Leadership Failures in Nigeria

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Chinwendu Ohakpougwu Consequence for Leadership Failures

By Chinwendu Ohakpougwu

I was in Zanzibar, on a work leave when the protest that held Nigeria standstill happened. It was the #EndSARS, a protest which was largely and primarily against police brutality, but which spiralled to all other things holding the Nigerian nation down.

It was the 20th of October 2020 precisely – and our flight had left for Nigeria from Zanzibar. We had a stop-over in Addis Ababa. Just as we landed in Ethiopia, we received news that flights were grounded from entering Nigeria.

This was the second time I could clearly see a reflection of what I had watched in the movie ‘Sometimes in April’. We had no transit visas and were stranded in a foreign land – with our own country evidently in ruins. It was a painful feeling. It was clear things had gone out of hand.

The airport hotel we were put in felt like some prison. Apparently, they too had received the news of what was happening in Nigeria – and they made sure to treat us in a way that was demeaning. We were not let out of the hotel. They wouldn’t let us have the keys to our rooms. We slept that night, praying and hoping that the next day we would receive good news from Nigeria. Some of us had started to make plans about taking a flight to neighbouring Ghana, after all, we had the ECOWAS passport.

Miraculously, the next morning, they allowed a few more flights into the country and we took the opportunity. Ethiopian Airlines landed in Lagos in the late afternoon on the 21st of October amidst great tension. There were soldiers everywhere. We were told not to leave the airport, but most people tried to get accommodation in the hotels around the international airport.

They had to walk long distances to these hotels in Ajao. No cab wanted to leave the airport premises – and those who eventually did charged outrageous prices.

As we walked out of the airport premises to find hotels nearby, the young men littered around, blocking the road, yelled at us and cursed us, that we were the mistresses to some of these politicians and are kept away from the chaotic scenes happening back in Nigeria. They searched our bags and took some items. Soldiers were patrolling like it was Lebanon, the air was too tense and volatile. Eventually, I made it back home, safely.

Fast-forward – it’s 20th October 2021, and I am witnessing the memorial of the #EndSARS. The feeling is still the same – hurt everywhere, and yet more oppression and injustice can still be seen and felt. It is as though we never picked up any lesson one year after.

As a Comms person, I try to look at these things with an industry eye and wondered why the Lagos state governor was not present at the #EndSARS memorial. I had an exchange with a friend heavily involved in political PR and he said something that struck me “Two weeks after the 2020 massacre, APC won the election in that same senatorial zone by like 10k votes. Do you know what 10k votes are? You can mobilize 10k people.

So, when I sit with politicians and tell them to care about young people, they can only scoff because there is no consequence to ignoring them. Each time events like this happen, all politicians need to do is ignore their social media accounts for a while, send some other young people to disrupt the activities and the world is fine again.”

This, right here is my vexation with Nnamdi Kanu and IPOB – all that power and influence and yet all they do in the SE is a Sit At Home? What happened to real influence over who wins elections in the SE? What about teaming with the people to pick only the crop of leaders who are fit for the future we want to achieve? Nigerian youths have the numbers – and in all games, numbers are great leverage. Get out and get involved in politics. The change we desire will not happen on social media. Let us start to strategically get more smart young people into the National Assembly. That is where true and long-lasting change happens.

Chinwendu Ohakpougwu is the Head of Corporate Communications at DLM Capital Group

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Nigeria: Between Persuasive Leaders and Coquettish Behaviour

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Persuasive Leaders

By Jerome-Mario Utomi

For most of our political history, concept and reality, particularly banking on the underlying understanding of a Coquette by Robert Green, the author of The 48 Laws of Power, it will not be out of place to describe an average Nigerian as a Coquette.

The reason stems from the belief that they are experts at arousing desire through a provocative appearance or an alluring attitude.

Their strength lies in their ability to trap people emotionally and to keep their victims in their clutches long after that titillation of desire. This is the skill that puts them in the ranks of the most effective seducers. Instead of persuasion, some resort to lies, many to propaganda while the rest take to intimidation of their followers.

Regrettable, while this attribute has not only flourished but thrived with unhindered access in Nigeria, it is true that today in many parts of Europe, America and Asia; it is in sharp contrast with the demand of modern leadership. Let’s look at particulars that support this claim.

First, writing on the theme the Necessary Art of Persuasion, Jay A Conger, a Henry R. Kravis Research Chair in Leadership Studies at Claremont Mckenna College, noted that gone are the command-and-control days of executives managing by decree.

Persuasion is widely perceived as a skill reserved for selling products and closing deals. It is also commonly seen as just another form of manipulation-devious and to be avoided.

Certainly, persuasion can be used in selling and deal-clinching situations, and it can be misused to manipulate people. But exercised constructively and to its full potential, persuasion supersedes sales and is quite the opposite of deception.

Effective persuasion he argues become a negotiating and learning process through which a persuader leads colleagues to a problem’s shared solution. Persuasion does indeed involve moving people to a position they don’t currently hold, but not by begging or cajoling. Instead, it involves careful preparation, the proper framing of arguments, the presentation of vivid supporting evidence, and the effort to find the correct emotional match with your audience.

Also, Deborah Tannen, a Professor of Linguistics at Georgetown University, in a similar research report titled The Power of Talk, Who Gets Heard and Why, underlined something that could be described as a missing link in Nigeria’s leadership corridor when she among other things thus observed that In organizations, formal authority comes from the position one holds. But the actual authority has to be negotiated day-to-day. The effectiveness of individual managers/leaders depends in part on their skill in negotiating authority and on whether others reinforce or undercut their efforts. The way linguistic style reflects status plays a subtle role in placing individuals within a hierarchy.

Often, so many leaders assume persuasion is a one-shot effort. Persuasion is a process, not an event. Rarely, if ever, is it possible to arrive at a shared solution on the first try. More often than not, persuasion involves listening to people, developing a new position that reflects input from the group, more testing, incorporating compromises, and then trying again. If this sounds like a slow and difficult process, that’s because it is. But the results are worth the effort.

Now, this is the lesson that every leader in Nigeria must draw from this conversation.

For a leader to be a successful persuader, Deborah Tannen and Jay A Conger were unanimous in agreement that such a leader must ask this question; do those I am hoping to persuade see me as helpful, trustworthy, and supportive?

The duo also said something striking.

Let’s listen again; some leaders think the secret of persuasion lies in presenting great arguments. In persuading people to change their minds, great arguments matter. No doubt about it. But arguments, per se, are only one part of the equation.

Other factors matter just as much, such as the persuader’s credibility and his or her ability to create a proper, mutually beneficial frame for a position, connect on the right emotional level with an audience, and communicate through vivid language that makes arguments come alive.

In my view, it will not be considered as an overstatement to conclude that was Nigeria’s public office holder’s quest to achieve persuasive purpose considered as strategic, that explains as well as propels the never-ending manner with which offices such as the Minister of Information (for the federal government), the Commissioners for Information (states), chief press secretaries, senior special assistant (media), senior special assistant media (technical), special assistant (media), special assistant (information gathering), special assistant (print media) and special assistant (electronic media), among others are created.

Under this arrangement, a government spokesperson communicates to people the work done (i.e. political and institutional) by the government. The task of assisting and supporting the members of the government and the government itself is assigned to the spokesperson.

However, the question may be asked: has the discussed topic any relevance in Nigeria public leadership arena? How well have these appointed/elected public officials performed/harnessed persuasive leadership strategies in their day to day administrations? What is the future of persuasive leadership in Nigeria? What will the state of public leadership in Nigeria be like in hundred years to come; success or failure?

While providing answers to the questions are as important as the piece itself, one thing that bothers me, in addition, is that instead of developing the art and act of persuasive leadership, most of the present public office holders in Nigeria are capped with the spirit/attributes of Paul Joseph Goebbels, a German Nazi politician and Reich Minister of Propaganda of Nazi Germany from 1933 to 1945. He was one of Adolf Hitler’s closest and most devoted associates and was known for his skills in public speaking and his deeply virulent antisemitism, which was evident in his publicly voiced views.

This newfound attribute by Nigerian public office holders has made the innocent/well-intentioned position of persuasion in leadership become a platform for fierce political and ideological warfare in ways that negates rationality as human beings.

A great amount of innocent human character has been spilt, wars of words waged, countless souls/ambition persecuted and martyred.

Spokespersons have in recent times failed to communicate noble ideas and ideals. This consequence of their failures is responsible for why anarchy presently prevails in the country and accounts for why Nigerians daily diminish and are impoverished.

Take as an illustration, instead of telling their principals what the real issues are or encouraging them to keep promises that gave them victory at the polls, curtail the challenges confronting the people, and promote consensus politics, some government spokespersons encourage divisiveness, uphold autocratic tendencies, and endorse/promote media trial of political opponents.

In most cases, they become propagandists using radio, television and the internet as outlets to relentlessly false feed Nigerians.

Each time some of these spokespersons are faced with embarrassing facts about their principals, they fall back on data that is hardly objective, generating inferences that can never be described as explicit.

While finding solutions to the unwelcoming behaviours of government’s spokespersons will have far-reaching effects on both the public officials and the entire Nigerians, as it is laced with the capacity to engineer socioeconomic prosperity and propel the masses to work together for the greater good of the nation, it has become overwhelmingly urgent for government spokespersons, image makers and media assistants to understand that every decision they make requires a value judgment as different decisions bring different results

Jerome-Mario Utomi, the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy, SEJA, wrote from Lagos. He could be reached via; jeromeutomi@yahoo.com or 08032725374.

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