Feature/OPED
Niger Delta Region; Still a Body without Soul
By Jerome-Mario Chijioke Utomi
Despite President Muhammadu Buhari’s recent signing into law of the Petroleum Industry Act (PIA) on Monday, August 16, 2021, after years of back-and-forth movement, an Act which provides legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry and development of host communities, my recent ‘sojourn’ in the creeks of Niger Delta region, South-South geo-political zone, Nigeria, in the past one month or thereabout has strengthened my belief that nothing has changed.
Aside from raising consciousness that the poor level of infrastructural and socio-economic development in the region is an indication of sustained poor management of revenue accruing to the region, my documented experience firmly explains that this poor management is traceable to a combination of factors ranging from poor governance to outright embezzlement by the region’s leadership.
I have also come to a sudden but painful conclusion that the region will remain a body without a soul until the government and other Nigerians begin to see the problem of the Niger Delta as a national one and not restricted to the region.
A telling example of the above assertion is the deplorable state of some communities visited in Warri Southwest Local Government Areas of Delta state. These communities include but are not limited to Azuzu, Bennett, BATAN, Aweregbene, Egwa, Ekpogbene, Okerenkoko, Pepeama, Kurutie, Ubafan, Kunukunu mkma, Inikorogha and Azama. Others are Opuama, Polobubo, Ogbudugbudu, and Ogbinbiri communities of Egbema kingdom, Warri North Local Government Area.
From the above communities, evidence indicates that when one juxtaposes the level of development with the amount of funds that have been disbursed through the federal allocation and 13% derivation received by crude oil-bearing states, it shows a lack of concerted development efforts on the part of federal, state, local governments and other interventionist agencies/commissions.
The situation in the region is made worse by the destruction of agricultural prospects in rural communities through irresponsible oil operations, which of course, is an indirect violation of the right to life and the right to a safe environment and also a negation of the policy of economic diversification.
According to a report, “the relationship between agriculture and oil production is like a clash of two sectors. The use of land for oil exploration and production has implied the destruction of agriculture and the rural economy. This is a war of opposites. As much as the government derives more revenue from oil than agriculture, its reluctance to protect land resources for agricultural purposes increases.”
Without a doubt, the region, in my view, is faced with interminable socio-economic and environmental challenges, which prove to have no single answer, but one thing is sure. Niger Delta is troubled but not despondent-a situation that makes it easy for them to be managed and contained.
To develop the region, there is an urgent need to find solutions to the challenges created by the ability of the Niger Delta Development Commissions (NDDC), and that of the Presidential Amnesty handlers to live up to their statutory responsibilities.
To explain this point, the coastal dwellers have in recent times perceived and referred to NDDC as ‘a city boy’ that has nothing to do with coastal regions, a challenge that goes beyond the non-appointment/constitution of the NDDC board. The Amnesty Programme, on its part, appears to have completely deviated from its primary objective.
Even the new Interim Administrator of the Presidential Amnesty Programme, Major-General Barry Ndiomu (rtd), recently acknowledged this fact during a courtesy visit to the Pere of Gbaramatu Kingdom, His Royal Majesty, Oboro Gbaraun II, Aketekpe, Agadagba, at his palace in Oporoza town, Delta State, where he lamented that the scheme has been “hijacked” by “a few criminals”, who have “short-changed” lots of youths in the Niger-Delta.
He said: “As I speak to you, there are many people who are not even Niger Deltans that have been awarded scholarships. There are instances where people who are not Niger Deltans bribed their way with N750,000 to N1 million to get PAP’s scholarships. If the scheme is working as was intended by the government, a lot of the complaints by the youths will not be so as the resources which the government has directed to the scheme will get to them.”
While wrestling with this major concern, the Ogoni land cleanup is another thorny challenge that the Federal Government must tackle with sincerity. The truth, as it presently stands, is that to the watching world, the clean-up really holds the success key of this administration. The reason is simple. Apart from failed promises in this direction by the current administration, any effort by the Federal Government to re-engineer prosperity in the region without first cleaning the Ogoni Oil spill will amount to an attempt in futility because of the international attention that particular degradation has elicited.
For example, the African Commission’s decision on a communication submitted by the Social and Economic Rights Action Centre (SERAC) in close collaboration with the New York-based Centre for Economic and Social Rights (CESR) found the Nigerian government culpable of glaring environmental injustice mated to the people of Ogoni land and other Niger Delta communities.
Titled Social and Economic Rights Action Center (SERAC) Vs Nigeria) with suit Number 155/96 before the African Commission on Human and Peoples’ Rights against the then Federal Military Government of Nigeria, the communication asserted that the wild spread contamination of soil, water and air, the destruction of homes and the climate of terror visited upon the Ogoni communities constituted a violation of their rights to health, a healthy environment, housing, and food.
As a response to the communication, the Commission, in October 2001, gave a well-considered rule finding the Federal Republic of Nigeria in violations of 2, 4, 14, 16, 18(1), 21 and 24 of the African Charter on Human and Peoples’ Rights (ACHPR), and therefore recommended a total clean-up of the polluted Ogoni and other adjourning communities in addition to taking preventive remedial and compensatory measures to improve economic and social outcomes for the Ogoni community. But close to two decades after that judgment, the Ogoni and other communities are still waiting for the FG to implement the directive from the same commission that they are a signatory to, a development that is considered bad for morals.
The Ogonis must be saved from these excruciating pains. This should be done not merely for political consideration but from the views of national development and the sustenance of our democracy. Using the minimum components of the right to a healthy environment-Ogoni community as a baseline, the environmental condition of the coastal communities in the Niger Delta region can best be described as not only deplorable but graced with non-development, poverty and extreme lack of government presence. This particular revelation calls for action.
Another key point that may guarantee a fast-tracked development of the region is the immediate relocation of the headquarters of (both private and government-owned) organizations to the region. It will not only add to a new relationship but soaks up the existing tension.
Specifically, Nigerians have, in different times and places, argued that government agencies such as the National Oil Spill Detection and Response Agency (NOSDRA), Nigeria National Petroleum Company Limited (NNPCL), and its subsidiaries have no business being in Abuja since the chunk of its responsibility is in the Niger Delta region.
The federal and state governments should take practical steps to empower communities to protect their environment through policies and legislations that obligate oil companies to apply best practices and grant communities the right to determine how and when oil operations are compatible with human conditions in the communities.
Most importantly, the Federal Government must desist from the current non-participatory approach to development in the region and rather embrace a broad-based consultative approach that will give the people of the Niger Delta some sense of ownership over their issues.
Utomi Jerome-Mario is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), a Lagos-based Non-Governmental Organization (NGO). He can be reached via [email protected]/08032725374
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
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.
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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