Feature/OPED
Nigeria/Russia Relations: The Missing Link
By Hussaini Monguno
On November 15, 1884, 14 mainly European countries gathered in Berlin for a meeting which lasted to February 26, 1885. The aim of that conference was to split the continent of Africa and share it to the Europeans who were scrambling over it.
The countries represented were; Austria-Hungary, Belgium, Denmark, France, Germany, Great Britain, Italy, the Netherlands. Others included; Portugal, Russia, Spain, Sweden-Norway (unified from 1814 to 1905), Turkey, and the United States of America. Of these 14 nations, France, Germany, Great Britain, and Portugal were the major players in the conference, controlling most of Africa at the time.
Russia, though present at the conference, was not interested in the greedy project of acquiring Africa by force of arms. The Russians held firmly to the guiding principle of their policy as advocated by one of their founding fathers, V.I. Lenin who advocated equality and peaceful coexistence amongst all the peoples of the world.
It was this same message of equality of mankind that led Khrushchev (the former Soviet leader) to move a motion to end all forms of colonialism by 1960 at the plenary of the XVth session of the United Nations General assembly. The passage of the motion led to the crumbling of colonialism, and sovereign African states began to emerge one after another. Nigeria took its turn to gain independence in 1960.
The Soviet Union – precursor to Russian Federation – built into its foreign policy architecture a sensitive and positive response to assist Africa in building an egalitarian society for themselves.
In the case of Nigeria, the warm response from Russia was instant. Nigeria became independent on October 1, 1960. In less than two months – on November 25, 1960 – the two countries established diplomatic relations.
Foundation of Nigeria’s Foreign Policy
The founding fathers of Nigeria said the foreign policy of the country was based on Africa as its cornerstone. Ordinarily, this should have drafted Nigeria very close to the Russians who took it on themselves to fight for the decolonization of Africa. Ironically, this was not the case because the first Republic leaders were under the heavy influence of the colonial masters.
The colonial masters induced Nigerian leaders to launch heavy, unfriendly propaganda against Russia in Nigeria during the early and mid-1960s. In contrast to this, nations like the United Kingdom, the United States of America, France, Italy, Spain and other countries in Western Europe at large enjoyed positive propaganda which made them seem as ideal and friendly.
The system of governance in most African countries including Nigeria was fashioned after their former colonialists and gave preference to the interests of the colonial masters. With this mindset, the environment was not conducive to friendly Nigeria-Russia relations.
During the early 60’s, the main interest of the Soviet Union was to expand its political influence among the countries of Africa and have more states converted into socialist-oriented nations in the then ideologically polarized world that was popularly referred to as the cold war. Nigeria being a capitalist state was not inclined to change its orientation. Its colonial master and allies were opposed to Nigeria and any of its former colonies having cordial relationship with Russia which they came to identify as a strong iron curtain – not be allowed a space of further expansion in Africa. Any manifestation of or link to the communist ideology was met with censorship and repression.
But there was no let-up on the part of Russia. They seized every opportunity to advertise their goodwill to Nigeria. When the civil war broke out in Nigeria with the Eastern Region declaring itself an independent state of Biafra, it was Russia that came to bail out Nigeria with arms to put down the insurrection. At the time, both the United States and the United Kingdom refused to sale arms to Nigeria. In fact, France went a step further by recognizing Biafra as a sovereign state.
Nigeria Boosted Relations With Russia After Civil War
The Nigerian Civil War opened the eyes of Nigerian leaders to the reality of world politics. Nigerian youths became eager recipients of Soviet scholarships for higher education in the Soviet Union. This was a major opportunity for the Soviet Union to establish itself in sub-Saharan Africa’s major country.
Immediately after the war, General Yakubu Gowon, Nigeria’s Head of State, paid a State Visit to Moscow in 1971. President Olusegun Obasanjo also visited Russia in 2001 and on June 24 2009, Russian President Dimitry Medvedev became the first Russian President to visit Nigeria.
These top-level visits are too far in between and do not reflect the several challenges confronting Nigeria-Russia relations.
For instance, in order for agreements among nations to become operational, they are to be passed by the National parliament and that forms their legal framework. The agreements signed with Russia during these visits are yet to be ratified by the parliament with particular reference to the Abuja agreement of 2009 which covered six critical areas: Viz- Investment, cooperation in the field of peaceful use of nuclear energy, understanding in the field of exploration of outer space for peaceful purposes, transfer of persons sentenced to imprisonment, declaration on principles of friendly relations and partnership between Nigeria and the Russian Federation and several other agreements on the eventual establishment of the Intergovernmental Commission on Economic and Scientific-Technical Cooperation (ICESTC) between the two countries.
Adequate knowledge and clear understanding of culture, history, language, mentality, world-view, capabilities and potentials of other nations are crucial to foreign policy making. There is weak indication that the two countries have sufficient and adequate perception of each other. This in part is responsible for the lack of the political will to fully implement their existing bilateral agreements.
We have had serial disappointments with the western world from their refusal to help in the fight to keep Nigeria one and their current refusal to help with weapons to put down the Boko Haram insurgency under the spurious claims that the Nigerian military is abusing human rights. The supply of military equipment and materiel notably the MI-35 attack helicopters by Russia have played a high value addition in our fight against Boko Haram. Unfortunately, majority among the Nigeria political elites are under strong influence of London and Washington whose interest is to distance Moscow from the affairs of African countries.
Russia/Nigeria Trade Relations
Still, there has been increased trade between Nigeria and Russia since the civil war experience. Dramatically, the Soviet Union became Nigeria’s best friend and ally such that by the time the civil war ended in 1970 Nigeria had opened its doors to other Soviet imports such as consumer goods and industrial manufacture.
The most significant highlight of the growing economic cooperation between the two countries was the award of contracts to Soviet companies for the establishment of the Ajaokuta Iron and Steel Complex and for the laying of oil pipelines across the country in line with the articles form economic and technical cooperation agreed upon by the two countries.
The project was however not completed as scheduled, and has continued to suffer several setbacks over the decades due to what should be seen as a lack of political will and adequate appreciation of the potential of the steel project to radically transform the economy of Nigeria and its capacity to be the foundation for the industrialization of the nation.
Similarly, ALSCON, Nigeria’s only aluminium smelting plant, handed over to Russian aluminium giant, United Company RUSAL PLC was closed down in 2014. Again, nothing much is heard of Gazprom, the Russian national energy giant, the biggest in the world, who signed a Memorandum of Understanding with the Nigerian National Petroleum Corporation (NNPC) on the exploration and exploitation of the nation’s huge gas reserves with a new joint venture company to be known as NiGaz Energy Company, which will also take part in several other critical infrastructural development projects, including the training of Nigerians among others. Both companies were expected to invest up to 2.5 billion dollars in the joint venture.
Deepening Nigeria/Russia Ties
These are very good signs for Nigeria-Russia relations and should be pursued with vigour because they can lead to slow but steady growth of bilateral trade and the promotion of direct contacts between Nigerian and Russian officials and institutions, agencies and companies, opening up of opportunities for further cooperation in the area of energy, metallurgy, oil and gas and promotion of bilateral cooperation in the cultural sphere.
Nigeria needs Russian technology to boost industrialization just as Russia needs Nigeria as a market for its industrial products and military equipment. All issues on the privatization of ALSCON to Russian RUSAL including the legal tussles require diplomatic solutions in a manner that will bring the company to function at its maximum capacity.
The volume of on-going trade between the two countries still remains very low – a paltry $350 million. This is ridiculous given the rich economic and trade endowments of both Nigeria and Russia. Worse still, there is a consistent huge imbalance in favour of Russia.
Inadequate information on business opportunities in Nigeria poses one of the major problems. Foreign investors including Russians have no access to update and reliable information on business prospects in Nigeria. If and when Russian businesses discover, for example, the rich agricultural products that are available in Nigeria, they’d wonder why they had not known about these all along.
In Nigeria, there are exceptional high-quality agricultural products such as oranges, mangoes, citrus, sweet honey that could easily rise to the top of the market demand in Russia.
There are many options available for the two countries to expand and deepen mutual trade and diplomatic ties in the interest of the two countries, world peace and prosperity. These options must be speedily pursued.
Monguno is member, Board of Directors, FCDA-Abuja-Nigeria.
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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