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Nigeria: Strengthening Artisans, Kiosk, Micro and Nano Businesses in the Informal Economy

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Timi Olubiyi Informal economy

By Timi Olubiyi, PhD

The expression “informal economy” encompasses a huge diversity of situations and phenomena in the country.

However, working in the informal economy is often characterised by small or undefined workplaces, unsafe and unhealthy working conditions, unregulated, low levels of skills and productivity, low or irregular incomes, long working hours, and lack of access to information, markets, finance, training, and technology.

The activities that occur outside the legal framework are considered informal. The informal economy can be seen either as the nature of the enterprise operation or the nature of the employment relationship that exists in the business.

That said, millions of Nigerians especially those that reside in the economic hub of the country, Lagos State –live, work, trade and produce in this informal economy and also engage the vulnerable citizens.

From context observation, the informal sector in Nigeria is bigger than the formal sector in terms of employment and output year on year. In some cases, the informal economy is referred to as a shadow economy if associated with illegality and illicit activities such as internet scams, black markets, crime, production, and smuggling of illegal drugs, and money laundering, or as the case may be.

For the informal economy, one thing is sure, informality provides critical economic opportunities for the poor and the vulnerable.

In Lagos State alone, the informal economy is said to employ about 5.5 million people – about three-quarters of the state’s 7.5 million labour force recently, and in the country as a whole with nearly 200 million people, over 80 per cent of the population work in the informal sector according to the International Monetary Fund (IMF).

There is no doubt that the majority of enterprises and entrepreneurs around are in this informal sector considering the labour intensity. Though, unlike the formal economy, activities in the informal economy are not included in the Gross Domestic Product (GDP) of the country.

Therefore, it can be said that the GDP number computation is a severe underestimation of the country’s GDP considering the exclusion of the large informal economy.

Meanwhile, the informal economy in the country continues to expand in many contexts and may even be the largest in Africa by estimation considering the population and economy.

Agreeably, across the country, it is easy to notice street traders, artisans, vendors, nano and micro-businesses, commercial buses, tricycles, and motorbikes (Okada riders) domestic workers, market traders among others all operating informally, broadly speaking you can easily see informality all around the country.

The informal economy has witnessed a massive expansion in the last two decades in Nigeria and the root causes of these include elements relating to the economic context in the country, decreasing levels of market regulation, weak policy frameworks, and socio-demographic drivers such as population growth, urbanization, rise in unemployment, widening inequality between the rich and poor, low-level education, including poverty. The key driver of the informal economy, however, is that such businesses in the sector do not need registration with any relevant government agencies.

When workers cannot find opportunities in traditional wage employment, the need for subsistence demands they find work somewhere else. Most times the alternative is usually in the informal sector of the economy where there is no minimum wage and workers are unlikely to pay taxes, have no holiday rights or labour rights, and often work in dangerous conditions.

Most times, it is usually a struggle for them to access microcredit, they lack income security and stable employer-employee relationships. In the midst of all these, it only offers the most vulnerable and often uneducated Nigerians a foothold for survival. This expanded and large informal economy is perceived by the majority of the elite to be at the bottom rung of the economic system when in truth, they are the major driver of the economic system because they are too large, important, and relevant to be ignored.

For instance, it is unclear if the country has reliable data on the National Union of Road Transport Workers (NURTW) activities in the country or the volume of transactions in Ladipo auto spare part market in Oshodi Lagos State and the popular computer village in Ikeja Lagos State, Balogun Market, and Alaba International Market to mention a few. These are visible informal business locations set-up within the country with multi-million daily business turnover, yet the operators are unrecognized or uncaptured by policymakers or relevant authorities.

This part of the economy is particularly large in Nigeria, with the IMF estimating it to constitute about 60 per cent of the entire Nigerian economy, yet not subject to full government regulations.

Meanwhile, working in the sector is attractive due to the ease attached to operations as a result of the absence of a bureaucratic regulatory framework, and little or no formal educational requirements.

There are multiple perspectives on the informal economy, some associate it with lost revenue, unfair competition, low productivity, human rights abuses, and environmental degradation; while others associate it with entrepreneurship, flexibility, and resilience.

Overall, the informal economy is enduring; but suitable regulations and policies are required to improve the sector and introduce formalization. The decision for these businesses to formalize depends on the benefits that are derived from formalization over the risks of remaining in the informal economy. If the former outweighs the latter, only then does formalization seem like a viable option to the operators.

Clearly, there is a need for the government to embark on a series of measures, interventions, and support to encourage the formalization of these businesses to sustain economic growth and development.

As mentioned earlier, this informal sector is too large and important to be ignored, concerted effort to identify and protect them is crucial for sustainability and economic development.

In recent times, the novel Coronavirus (COVID-19) pandemic has negatively impacted these informal businesses greatly. Because they rely on daily income and most of them can rarely “work from home”, so the harsh reality is that most of these businesses need government support. Therefore that presents a good avenue for the government to have a mass registration and identification and equally reach out to them through social interventions and palliative.

Besides, the IMF is urging national statistical agencies to gather information on the informal economy to help in policy formulations and for gathering reliable data for economic planning. In this context, careful attention must be paid to the informal economy and policy solutions need to be in place to encourage and induce their formalization. These suggestions, if efficiently considered might, in turn, reduce the size of the informal economy in the country. Good luck!

How may you obtain advice or further information on the article?

Dr Timi Olubiyi is an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. He is a prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and Securities & Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments.

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Post-UTME Crisis and UNILAG’s New Found Image

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UNILAG Post-UTME Crisis

By Jerome-Mario Utomi

If there is any occurrence in recent time that accurately supports the correctness of the time-honoured belief that ‘every adversity comes with an equal opportunity, it is the recent crisis that hit the University of Lagos occasioned by the inability of some candidates that wrote from their various locations, as introduced by the management during the just concluded University’s Unified Tertiary Matriculation Examination (UTME), conducted in the school from Monday, February 15 to Tuesday, February 23, 2021.

To help those that are unaware of what transpired in the past week, a while ago, the management of UNILAG came up with a cloud-based computer testing solution for the conduct of the 2020/2021 post UTME.

An initiative globally perceived as a versatile, easy to use tool for conducting online computer-based examinations and assessments that allow candidates to write the test from any location of their choice. This elicited happiness and viewed by many as not just innovative leadership but a total departure from the old other.

Trouble, however, started when mid-way into the exercise, an appreciable number of candidates’ encountered varying level/degree of challenges. Problem areas identified include but not limited to; the inability of candidates to log into the school portals, systems non-responsiveness, endless loading throughout the entire examination time, etc.

Expectedly, they (candidates) were particularly concerned about how such hitches will negatively affect their 2020/2021 admission opportunities to the school. This brought about heated debates among stakeholders, tempers and innumerable complaints from parents flowed freely.

Within this milieu, the university management, to the astonishment of candidates and their parents, during a press briefing, announced to the watching world that the school successfully captured about 90 per cent of the candidates and went ahead to give the school a pass mark.

Both parents and candidate wondered where and how the school got the statistics, figure and courage!

But then, the most amazing thing that signalled a new order happened after that announcement. The school management did something that is not only extraordinary, different and historic but characterized as alien to public institutions in Nigeria.

From the ashes of confusion and denials, the school quietly rescheduled and organized examinations for the teaming candidates that experienced the reported hitches.

It was indeed a turning point!

Save for the belief in some quarters that what the school management overtly denied, they covertly admitted, there is in the opinion of this piece, torrent of reasons to celebrate Professor Oluwatoyin Ogundipe’s led administration for this new order.

By this act, the University of Lagos has proved to be both responsible and responsive. And demonstrated an institution that is neither willing nor ready to allow any issue embarrass nor ridicule the enviable academic excellence attained in the past decades of its existence.

In reputation terms, there are more reasons to applaud the institution but one that easily comes to mind is that globally, a public institution is viewed as an establishment conducted with the approval, and from the funds of the public. And whenever such an institution ceases to have public support; it forfeits its right to exist.

But until now, what existed in this part of the world was a direct opposite.

Institutions maintained on permanent public funds in Nigeria, are reputed for, and often found to ignore public opinions, and are frequently responsible for acts contrary to it. They mastered how to ignore criticisms and advice from experts even the ones that are beneficial and the centres on how a society should develop. Even when they claim to listen, they do so without being attentive.

Now, let’s examine the end result of UNILAG’s prompt response to the public’s outcry on her image.

It has been reasonably argued that a leader/organization’s image is an amalgam of a variety of factors, and followers must at intervals evaluate these perceived factors in order to dictate if they are in positive or negative lights. Particularly, as the image is capable of saying much more about a leader than any of his long speeches and verbal declarations. Also very unique is that once established, the image becomes not just the leader’s picture but remains highly durable.

Indeed, by his empathetic behaviour in managing the post-UTME crisis, Professor Ogundipe has developed a spectacular identity for himself that is worthy of emulation. In the same vein, the institution’s responsible and responsive attitude, similar to complex but conventional business environments, has created a connection or ‘hyper ‘relationship between the school and students; Portrayed itself as a good corporate citizen while increasing its corporate visibility and reputation in the estimation of the right-thinking students/parents.

The media also need to be applauded in this whole scenario for reporting the development to the world.

As the fourth estate of the realm, they have again affirmed that they are ‘to watch and not to be watched over. They are to watch over crimes, injustices, malpractices, and every other act that is deemed unfair and unlawful. They have proved to the world that professionally, they are competent to carry out their duties…. They are not the kinds of dogs with ropes tied round about their necks. The fact that they are watchdogs means they know what to do, where they are going, and how to discharge their duties as when due’.

However, even as we celebrate this feat, there are in the opinion of this peace, more work to be done and more reforms to be made. To truly and thoroughly make the experience of the past weeks a dynamic and cohesive way of earning a higher height of excellence, there are however ingrained lessons to be learned from the exercise that we must not allow go with the political winds.

Most fundamental is that it takes a prolonged effort to administer an institution well and change the backward habits of the people. UNILAG and of course other institutions of higher learning in Nigeria must learn how to inculcate and reinforce positive internet-related exposures, social and cultural attitudes among their students while creating a mood in which students become keen to acquire skills and disciplines of developed nations.

Above all, as noted in the previous intervention, another urgent reason why the school authority and of course the Federal Ministry of Education must reassess this process is the threat that keeping brilliant children on the waiting list for university admission for too long could pose to the nation.

Idleness could make them take to the street. As we know, the streets are known for breeding all sorts of criminals and other social misfits who constitute the real threat such as armed robbers, thugs, drug abusers, drunkards, prostitutes and all other social ills that give a bad name to the society.

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

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Nano, Micro, Small, and Medium-sized Businesses in Lagos State, Way Forward

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Timi Olubiyi Businesses in Lagos

By Timi Olubiyi, PhD

Small and Medium-sized Enterprises (SMEs) are generally regarded as the engine of economic growth in any developing economies.

Similarly, a large concentration of SMEs, including micro and nano businesses, are easily noticeable in Lagos State, the economic hub of Nigeria.

The state enjoys a high presence of SMEs, micro and nano businesses, more than any state in Nigeria. Why is that? The simple metric to this is that Lagos State has a population size of about 15 million, according to the United Nations (UN) projections and it appears like a country within a country considering the strength of economic activity and populace.

In fact, without a doubt, Lagos State has a population estimate that is higher than some West African countries namely Guinea (13,132,795), Benin (12,123,200), Togo (8,278,724), and Sierra Leone (7,976,983).

Even the population of the state is higher than that of some developed countries such as Finland (5,540,720), Belgium (11,589,623), Sweden (10,099,265), Denmark (5,792,202), and Ireland (4,937,786).

Supportably, the population is even higher than the combined population of Liberia (5,057,681), Mauritania (4,649,658), Gambia (2,416,668), Guinea-Bissau (1,968,001) as of February 27, 2021.

However, the painful reality is that over 60% of the residents of Lagos State are poor and live in various high density and informal settlements scattered across the state.

These residents lack proper sanitation, power, and other basic services, and most of them heck a living from small businesses which includes nano and micro-businesses most importantly.

A visible reference usually includes the operators of kiosks, commercial tricycles, motorcycles and many other informal business operations in the state.

The estimated figure of micro-businesses in Lagos State is 3,224,324 and to add to this, over 11,663 SMEs operate in the state, according to a recent statement from the Lagos Ministry for Commerce, Industry, and Cooperatives.

In my opinion, this data is underreported and does not reflect the large informal economy that exists in the state particularly the nano businesses.

From reliable data, the informal economy employs about 5.5 million people in Lagos State if not more. So, a reliable database is necessary for adequate planning in the State.

The small business economic activities in Lagos State can contribute largely to the growth of the non-oil sector, employment generation, and the creation of sustainable entrepreneurship. These can largely be driven by businesses in the formal and informal sector in the state.

Arguably, small businesses represent over 90 per cent of private businesses in the state and contribute to more than 50 per cent of employment in the state. Yet, the state government has not duly recognised the significance of this sector in the economic development of the state.

For instance, the popular computer village in Ikeja, Ladipo spare part market in Oshodi and Balogun market in Lagos Island all consist of clusters of mostly micro-businesses with huge economic engagements but the government of Lagos state is yet to facilitate their formality and capacity building with the required policy and incentive considerations.

The novel Coronavirus (COVID-19) and the harsh economic climate currently with us have made many of these businesses struggle and some have shut down due to these challenges which include perennial issues; from infrastructure deficits (power, road, technology, and so on) to inconsistent government policies, security problems, multiple taxations, regulatory burdens, stiff competition from large companies, the entrepreneurial attitude of operators, huge financial and funding problems, lack of meaningful structure, longevity and succession plan among others.

SME operators and entrepreneurs strive with different strategies and tactics to absolve many of these challenges and shocks to make any meaningful balance with little or no external support.

However, the government needs to realise and recognise that small businesses are crucial to job creation, economic diversification, innovation, poverty reduction, wealth creation, and income redistribution in their policy-making activities. If this sector is well harnessed in Lagos State it can be a huge catalyst in transforming the State economically.

The vivid truth is that a well-functioning SME sector would add more value to the economic fortunes of the state, sustain livelihoods, reduce poverty by creating more job opportunities in the economy than any other sector.

Therefore, proper monitoring and evaluation of this sector are crucial for the economic development of Lagos State. When businesses survive, there will be a reduction in market failures and the more businesses are without survival threats the government can equally benefit from their growth and development. It can increase tax receipts and accelerate the growth of industrialisation in the state.

Therefore, the Lagos State government should focus more on policies and programs to widen the SMEs’ involvement in the formal sector particularly the micro and nano businesses.

The state government through the appropriate Ministry can implement policies that will enhance ease of doing business in the state to attract operators from the huge unregulated informal sector to the formal sector.

The informal sector in Nigeria refers to economic activities in all sectors of the economy that are operated outside the purview of government regulation. Therefore, policies to attract business formality should be considered and formulated, and also the capacity and sustainability of these SMEs, micro and nano businesses should be enhanced because if all these are set in place it will encourage the development of the formal sector of the SME sector in the state.

That said, key stakeholders such as the Small and Medium Enterprise Development Agency (SMEDAN), Nigerian Association of Small & Medium Enterprises. (NASME), Association of Small Business Owners of Nigeria (ASBON), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Association of Micro Entrepreneurs of Nigeria (AMEN), the Lagos Chamber of Commerce and Industry (LCCI), Manufacturer Association of Nigeria (MAN), the financial technology (FINTECH) associations, and groups in the Organised Private Sector (OPS) advocate for ways government can create innovative measures to improve business formality, enable secured environment, improve on rule of law, encourage public-private initiatives, invest in infrastructure, and consider policies as the needed.

Corruption has also remained a very serious problem that needs to be genuinely addressed because it can threaten any development policies and programs of the state.

The support of these teeming small, micro, and nano businesses is also imperative and strategies to sustain their business operations should be key in the decision-making process of the government of Lagos State.

The National Bureau of Statistics (NBS) suggested that many of the Nigerian youth are unemployed, majority of them can be meaningfully absorbed into this sector through self-employment, startups, and financial technology (FINTECH) if the SME sector is made viable with an adequate enabling environment.

In conclusion, the Lagos State government should get more involved in the growth, development, and sustainability of SMEs within the state.

More so, the state government needs to ensure the development and patronage of locally produced goods and content while putting in place adequate infrastructures.

Besides corroboration with experts and consultants in the provision of external advice to government and these teeming small businesses on a range of topics such as strategy, having a business and organisational structure for business continuity, financial literacy, technology, and role of innovation to increase their output is equally significant.

Concisely, going forward policies and programs of the government in the State should be rooted in deep rule of law, accountability, creation of a database on small business and uphold strict fiscal discipline. Good luck!

How may you obtain advice or further information on the article?

Dr Timi Olubiyi is an Entrepreneurship & Business Management expert with a PhD in Business Administration from Babcock University Nigeria. He is also a prolific investment coach, seasoned scholar, Chartered Member of the Chartered Institute for Securities and Investment (CISI), and Securities and Exchange Commission (SEC) registered capital market operator. He can be reached on the Twitter handle @drtimiolubiyi and via email: drtimiolubiyi@gmail.com, for any questions, reactions, and comments

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African Leaders Must Prioritise Climate Risks—Verkooijen

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Professor Patrick Verkooijen Climate Risks

By Kester Kenn Klomegah

In this insightful and wide-ranging interview, Professor Patrick Verkooijen, Chief Executive Officer of Global Center on Adaptation discusses the organization’s establishment, its main objectives, challenges and plans for the future.

The Global Center on Adaptation in Africa (GCA Africa), based at the African Development Bank (AfDB), has launched the Africa Adaptation Acceleration Program to mobilize $25 billion to scale up transformative actions on climate adaptation. It hopes to mobilize funds and bridge the financing gap for climate adaptation across Africa. Here are the interview excerpts:

What does the setting up of the Global Center on Adaptation mean for Africa?

Africa is on the frontline of our climate emergency. Five out of the 10 world’s most climate-vulnerable countries are in Africa. Contributing a meagre 5 per cent of global greenhouse gas emissions, Africa is more victim than a contributor to climate change, with the bulk of its emissions deriving from deforestation and poor land-use practices. Climate change is already negatively affecting the continent’s progress towards the Sustainable Development Goals.

Its impacts are showing up in extreme weather events such as floods, droughts and heatwaves affecting most of the continent with severe economic consequences. Hurricanes Idai and Kenneth in 2018 that hit Mozambique, Zimbabwe and Malawi affected over 3 million people, led to the death of over a thousand people and damaged infrastructure worth about $2 billion.

Compounding the already enormous climate challenges, COVID-19 has ushered in an era of multiple, intersecting systemic shocks, and one of its casualties has been our capacity to adapt and respond to escalating climate risks.

Investment in climate adaptation fell in 2020, even as more than 50 million people were affected. There is no doubt the adaptation challenge for Africa is extraordinary. For us, although the adaptation challenge is a global agenda, our priority is Africa.

We must make up for lost ground and lost time by accelerating action on climate adaption and resilience. Climate change did not stop because of COVID-19, and neither should the urgent task of preparing humanity to live with the multiple effects of a warming planet. If the virus is a shared global challenge so too should be the need to build resilience against future shocks.

In September last year, in the midst of the pandemic, we virtually launched our Africa office hosted by the African Development Bank in Abidjan, Côte d’Ivoire. Many African Heads of State and Government participated – they understand how vital accelerated adaptation action is because they are living with the impacts of climate change every day. Our rationale is that it doesn’t make sense to have an Africa office in isolation. We also have offices in Beijing and Dhaka because we think solutions that work well in South Asia, for example, could potentially also be translated to Africa and vice versa.

Do you target regions and different segments of the population in Africa? How do you determine and direct the activities of the GCA-Africa?

If we fail to include fairness and equity in how we adapt to a warming planet, we risk pushing millions of more people into poverty. We know how that story ends – with more conflict, migration and instability. With that in mind, we work closely with our partners including the African Adaptation Initiative and the African Development Bank to ensure our activities are directed towards where the need is greatest. Partnering with existing networks, platforms and organizations ensure that we don’t duplicate existing resources but can play a role in effectively filling the gaps that exist.

Right now, global, regional, national, subnational and local entities are working simultaneously, and in parallel to support adaptation actions and many important initiatives exist. However, the speed and scale of adaptation action is grossly insufficient to meet the demand and many stakeholders are not connected to the resources, knowledge, expertise or support others can offer them.

GCA is key to bridging this gap while ensuring at the same time that best practices can be replicated and scaled up in order to catalyse progress towards resilience in the most effective and efficient way.

Africa’s development – be it in infrastructure, agricultural production, urban development, and youth empowerment – can have a different path from other regions. Africa can have a development that is based on a deep understanding of climate risks for planning, resilient approaches with nature and people at the centre, and continuous innovations in technology, financing, and governance for a climate-smart-adapted future.

What are the long-term priority objectives here? But in the short-term, what projects would you tackle in Africa?

The short-term objective, in terms of the programs, is to make sure that when COVID-19 support packages are developed — and they are being developed in real-time by the IMF [International Monetary Fund] and other partners — they have resilience or adaptation action embedded in them.

Current estimates of the cost of climate change to Africa are between $7 – $15 billion per year. African countries are projected to experience clear detrimental macroeconomic consequences from climate change over the coming decades. The IMF estimates that this cost could rise to $50 billion by 2040, about 3% of the continent’s GDP. It is estimated that climate change could result in lower GDP per capita growth ranging, on average, from 10 to 13 per cent, with the poorest countries in Africa displaying the highest adaptation deficit. So, it’s important we act, and we act now.

Let me give an example. As part of the recovery package in Africa and other continents, there is a lot of investment in infrastructure. We want to make sure that these investments have climate risk embedded in their design and hence in their implementation and maintenance. We don’t want to build infrastructure anymore which will be destroyed when the next floods come.

For us, there is a very simple business case, over and above a moral argument, that investing in adaptation is good economics. We think that it is absolutely vital that, in the development of these new infrastructure projects or agriculture projects, that the climate lens is being applied consistently, and that is what we are planning to do in Africa long-term.

We are developing tools, guidelines, methodologies, and innovation programs for governments and development partners to do precisely that. You cannot develop properly without taking climate into consideration. There is this integrated approach that is not always applied, not only in Africa but also across the globe. That is what we are working on.

Since the start of this initiative, what would you consider as your main achievements on the continent? How did you overcome the initial challenges in order to get these positive results?

The urgency of the compounded COVID-19 and climate crises is compelling a new and expanded effort to accelerate momentum on Africa’s adaptation efforts.

At the GCA, we are joining forces with the African Development Bank to use their complementary expertise, resources and networks to develop and implement a new bold Africa Adaptation Acceleration Program (AAAP) to galvanize climate-resilient actions through a triple win approach to address COVID-19, climate change, and the economy.

The AAAP will contribute to closing Africa’s adaptation gap, support African countries to make a transformational shift in their development pathways by putting climate adaptation and resilience at the centre of their critical growth-oriented and inclusive policies, programs, and institutions.

As part of this program, just a couple of weeks ago, at the inaugural Climate Adaptation Summit, hosted by the Netherlands, we announced a new program to deploy billions of dollars to help young people in Africa build a new digitally-driven model of agriculture that can feed the continent’s people and boost prosperity even as the planet heats up.

The African Development Bank has already committed to putting half its climate finance towards the initiative – $12.5 billion between now and 2025.

The challenge now is to raise an equal amount from donor governments, the private sector and international climate funds. In the COVID-context this is challenging – our latest report “State and Trends in Adaptation” showed that investment in climate adaptation fell in 2020 even as more than 50 million people were affected by a record number of floods, droughts, wildfires and storms.

The pandemic is eroding recent progress in building climate resilience, leaving countries and communities more vulnerable to future shocks. I think awareness is really starting to increase that we can either delay climate action and pay for that choice or plan now and prosper. The returns in investing in building climate adaptation and resilience are much greater than the investment – investing $1.8 trillion globally in the next decade could generate $7.1 trillion in total net benefits.

We are also working to strengthen ecosystems that support youth-led climate adaptation entrepreneurship, and youth participation in adaptation policies; scale up climate adaptation innovations by strengthening business development services to 10,000 youth-owned enterprises and 10,000 youth with business ideas on jobs and adaptation; develop tailored skills and provide starting tool packs for one million youth to prepare them for climate-resilient jobs and entrepreneurial opportunities in adaptation and unlock $3 billion in credit for adaptation action by innovative youth-owned enterprises through innovative financial instruments.

With all these on the agenda, what role do African leaders have to play in terms of the global adaptation agenda?

With climate-related disasters expected to slow GDP per capita growth, African Governments are likely to experience increasing pressure on budgets and fiscal balances. Climate extremes are already leading to increased government expenditure, a reduction in the volume of collected taxes, ultimately resulting in an increase in government debt and impairment of investments. Adaptation and investment in climate resilience remain high development and investment priorities for Africa if the continent is to attain the SDGs.

In their Nationally Determined Contributions, African countries have already identified key areas where investments in adaptation and resilience building could yield high dividends. These include agriculture and forestry, water resources, disaster risk reduction, biodiversity and ecosystems, and human settlement. Many African countries are also in the process of preparing and finalizing their National Adaptation Plans.

Having said that, climate change is an all of social problem, no one can solve it alone. The role of African leaders is crucial to mobilise governments to boost climate action on both mitigation and adaptation. They need to improve their ability to incorporate climate risks into planning and financing major infrastructure, agriculture and other resilience-related investments.

With the youngest population in the world, Africa needs to find ways to unlock the power of its youth for adaptation – something we are very focused on at the GCA. Having said all of that, there are already a lot of good adaptation initiatives happening on the continent and many other countries in different regions are going to be able to learn from what Africa is doing.

Besides this, what specifically are the expectations from the leaders, looking at the fact that policies and approaches are different in African countries?

Earlier this year, we published a GCA policy brief, with the African Adaptation Initiative which recommended focusing stimulus investment in Africa on resilient infrastructure and food security to overcome the COVID-climate crisis. This was endorsed by 54 Heads of State and Government on the continent so when it comes to the need to accelerate adaptation action, it’s clear African countries are very much aligned. We are working hard on the ground to facilitate knowledge management and capacity building both within countries and between countries as well as promoting partnerships and co-operation at sub-regional and regional levels for increased synergy and scale. This cannot happen without the support of African leaders.

For example in Ghana, we are working to develop its first national-level assessment of the resilience of its infrastructure systems to climate change. By exploring and showcasing the potential co-benefits of nature-based solutions as part of a country-level package of investment in grey and green infrastructure, Ghana will function as a demonstration country of how to reduce costs and enhance ecosystems and we plan to roll out the initiative to other countries across the continent.

What platforms are there for discussing the GCA initiatives and programs for the African elite and the public? Do foreign organizations offer any support for these?

In January 2021, we hosted our first annual Ministerial Dialogue with over 50 ministers and leaders from international organizations including the newly appointed climate envoy John Kerry and Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. The aim of this event is to help scale-up global leadership cooperation to accelerate climate adaptation.

Going forward, it will also serve as an annual high-level forum on climate change adaptation, acting as a lever for global leadership to drive a decade of transformation for a climate-resilient world by 2030. African leaders were very active in the dialogue and we look forward to hearing from them in our future sessions.

There are also other partnerships such as the Climate Commissions of the African Union and the African Climate Policy Center. The African Risk Capacity, a specialized agency of the African Union is making important progress enabling countries to manage climate risks and access rapid financing to respond to climate disasters. The African Union is leading the pan-African Great Green Wall initiative which involves many international organizations and foreign governments.

But climate adaptation will not be successful if it just comes from the top-down. The design of adaptation actions must include and be led by local communities who are best placed to understand needs. Solutions need to be context relevant and accompanied by soft support designed to enhance uptakes such as formal education initiatives, agricultural extension or behavioural change campaigns.

Do you suggest governments have to act now to accelerate issues that you have on the agenda for the next few years? What kind of support do you envisage from African governments?

Over half of Africa’s total population experiences food insecurity. The growing number of extreme climate events, from droughts and new crop diseases to floods and unpredictable growing seasons, continue to threaten Africa’s ability to feed itself.

There are increasing rainfall and malaria risks in East Africa, increasing water stress and decreasing agricultural growing periods North Africa, severe flood risks in coastal settlements in West Africa and increased food insecurity, malaria risks and water stress in Southern Africa. The effect of aggregated climate impacts could decrease the continent’s GDP by 30 per cent by 2050.

Suffice to say Africa really doesn’t a moment to lose and we need to accelerate climate adaptation now. In looking towards recovery from the pandemic, we have a unique opportunity to ensure that we all build forward better. It is our responsibility to ensure that the opportunity isn’t wasted and countries around the world must support Africa in this.

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Why Leadership is the Problem

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Leadership

By Jerome-Mario Utomi

During an address by Harvard Political Professor, Samuel Huntington, on August 1995, at Taipei, he was among other things asked of his impression about Prime Minister Lee Kuan Yew’s effort to develop Singapore, and he scantly summed it up this way; the honesty and efficiency Senior Minister Lee has brought to Singapore are likely to follow him to his grave.

However, like faith, which is a belief in things not seen, coupled with the fact that ordinary calculation can be upturned by extra-ordinary personalities, not only did Lee’s efficiency survived him, but history has since assisted in providing answers to the correctness or otherwise of Professor Huntington declaration.

Accordingly, it’s now in public domain those two years after the observation, Singapore- a country with a GDP of $3 billion in 1965 grew to $46 billion in 1997, making it the 8th highest per capita GNP in the world, according to the World Bank ranking.

Clearly, a bracing account and unprecedented result! What is, however, left for those who are living is to learn the lessons from such history and gain wisdom, or ignore it, and wonder in dilemma.

Essentially, the crux of this piece is to use Prime Minister Lee Quen Yew account to analyse and understand the essential ingredients of foresight in leadership and draw a lesson on how the leadership decision-making process involves judgment about uncertain elements and differs from the pure mathematical probability process.

From accounts, aside from the fact that the story of Singapore’s progress is a reflection of the advances of the industrial countries-their inventions, technology, enterprise, and drive, a united and a determined group of leaders, backed by practical and hard-working people who trust them made it possible, It is part of the story of a leader’s search for new fields to increase the wealth and well-being of his people.

From this new awareness, flows the major difference.

When one juxtaposes the above account with the current situation in Nigeria, it, without minding what others may say, points in one direction; Nigeria’s current posturing is more man-made than natural, more of leadership gaps than the lack of resources.

The challenge is further compounded by a misguided view of amalgamation by some segments of Nigerians as more of a historicized occurrence without any barefaced or hidden advantage to the nation; a mindset that further promoted deliberate demonstration of impunity, as well as superiority by one group or region against the other.

But in dramatizing this superiority, the point the people did forget is that never should one ‘be so foolish to believe that you are stirring admiration by flaunting the qualities that raised you above others.

By making them aware of their inferior positions, you are only stirring unhappy admiration or envy that will gnaw at them until they undermine you in ways that you may not foresee’. It is only the fools that dare the god of envy by flaunting his victory’.

The sad news, however, is that this avoidable situation was allowed to complete its gestation and finally gave birth to what is now known and addressed in our political domain as a ‘call for restructuring’ or agitation for resources control.

But at a more significant level, it is the leadership performance deficit which has plundered the socio-economic affairs of the nation to a sorry state; an occurrence that stems from an unknown leadership style described by analysts as neither ‘system nor method based’; without anything exemplary or impressive.

While this appalling situation daily unfolds in our political space, the global leadership stage is littered with telling evidence about leaders that have demonstrated leadership sagacity and professional ingenuity that our leaders have refused to replicate their resourcefulness on our shores.

For instance, in 1932, Franklin D Roosevelt, the Democratic Party candidate, United State of America was elected president in the midst of the great depression. At the time of inauguration in 1933, one-quarter of the labour force was out of a job, with many thrown into poverty. Industrial production had fallen and investments had collapsed.

But within two years of his administration, he revived the economy and moved to the next stage of his agenda. He signed the social security act which introduced the modern welfare state into the United States pension at retirement, unemployment benefits, and some public health care and disability benefits. When asked how? he responded thus; “extraordinary conditions call for extraordinary remedies” This to my mind is leadership accomplishment worthy of emulation.

Regrettably, here in the country, the leadership challenge is given a boost by the ground propensity and penchant for corrupt, nepotistic practices of our ‘leaders’ since independence, a development that is gradually becoming a norm; a state of affairs vast majority of Nigerians claims was responsible for the inability of the nation’s successive leaders to alleviate the real condition of the poor, the deprived, the lonely, the oppressed or get into their lives and participate in their struggle.

Looking at commentaries, one can discern that the above fact is largely responsible for the youth’s restiveness and tribal aggressions as the masses continue to fight in order to register their grievance against state-sponsored socioeconomic deprivations.

It is also of considerable significance to this discourse to note that this leadership challenge has visited Nigerians with not just poverty but what analysts described as ‘island poverty’ or poverty in the midst of plenty; which has, in turn, promoted both hopelessness and powerlessness among innocent Nigerians.

But in all, one thing seems to stand out, our leadership challenge or bad governance was implanted by the leaders, encouraged by our unquestioning obedience to the authorities and can only be reduced or erased by Nigerians.

Having discovered the challenge threatening the continued existence of our country, it becomes imperative that whatever measure the nation may want to use in tackling this challenge can only succeed if it probably puts in place steps that will guarantee leadership restructuring.

Catalysing the process of building the Nigeria of our dreams that is laced with good leadership will among other demands require a sincere and selfless leadership, a politically and economically restructured polity brought by the national consciousness that can unleash the social, economic and political transformation of the country while rejecting the present socio-economic system that has bred corruption, inefficiency, the primitive capital accumulation that socially excluded the vast majority of our people.

Above all, to completely put things right, the federal government must recognize, and position Nigeria to be a society of equal citizens where opportunities are equal and personal contribution is recognised and rewarded on merit regardless of language, culture, religion, or political affiliations.

If we are able to achieve this, it will once again, announce the arrival of a brand new great nation where peace and love shall reign supreme as no nation enjoys durable peace without justice and stability, without fairness and equity!

Part of that effort will entail recognizing that the solution to our leadership challenge may afterward not be based on argument or debate but by the quality of the people in charge.

This will be followed by frantic effort to create a ‘civil society that will help sort out the irresponsible from the response in leadership. Another inoculation that will cure this leadership challenge will demand the development of a mindset for details and history necessary for today’s leadership.

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

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Historical Perspective to Nigeria’s Tertiary Education Challenge (2)

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Nigeria’s Tertiary Education Challenge

By Jerome-Mario Utomi

To understand more fully where this second part is headed, I will encourage readers to search and read a report titled; Scientific and Technological Innovations In Biafra (1967-1970), as it also gave a big helping hands to the first part and chiefly provided the step by step accounts of how the nation’s education sector originally/fundamentally went into ‘trouble.

With this point highlighted, let’s focus on other accounts as history further points at how successive administrations in Nigeria (military and civilian alike) defined learning too narrowly in a manner devoid of process and outcome fairness.

Beginning with the military era, there are so many accounts of how past military administrations visibly contributed to the present education sector crisis in the country. Out of many, one captures it perfectly.

The account by Former Secretary of Afenifere and NADECO, Mr Ayo Opadokun, at the University of Lagos Political Science’s Department symposium with the theme X-Raying 50 Years of Military Intervention in Nigerian Politics, held at the University of Lagos Main Auditorium on Wednesday 2, 2016.

He stated in parts; What the Nigerian State offers today as education is a deception and a fraud for which the Military must be held accountable. …..The Military has oppressed, humiliated and exhibited its contempt for education in many ways. Remember, the Ali Must Go, ABU killings, the OAU Massacre at Ife, the Ejection of University Lecturers from their Official accommodation, incessant strikes etc. The Military constituted itself into a superior class by setting up its own social services-salaries, school institutions, retirement benefits; particularly for the senior ones….They cornered Nigeria in perpetuity, he concluded.

While his position is filled with valid points, the departure of the military from the nation’s political space over two decades ago and the advent of democracy have, however, not changed the education sector fortune.

In fact, many are of the view that if the present is juxtaposed with the past, the experience of the past becomes a child’s play as the sector at the very moment is fundamentally confronted with issues that centre on the phrase ‘uneven resource distribution’, misguided priority and insensitivity of government to education need of Nigerians.

This awareness again brings to mind two separate but related commentaries as most conspicuous examples.

The first comment came a few years ago from Oby Ezekwesili, former minister of education, when she according to media reports, disclosed that Nigerian legislators and the government spent about N1 trillion since 2005.

To the critical minds, Oby’s position may to some extent not be viewed as newsy considering the fact that Sanusi Lamido Sanusi, also a former governor of the Central Bank of Nigeria (CBN), had earlier in a report almost said the same thing when he disclosed that 25 per cent of the nation’s budget was being sent on the federal legislators, apparently at the expense of basic social infrastructure like education.

Now, in the opinion of this piece, If 25 per cent of the nation’s budget is invested in the education sector, think about what that could do for our kids if we invest that in our schools?

‘Think of how many new schools we could build, how many great teachers we could recruit, what kind of computers and technology we could put in our classrooms. Think about how much we could invest in math and science so our kids could be prepared for the 21st-century economy. Think about how many kids we could send to college who’ve worked hard, studied hard, but just can’t afford the tuition.

Simply put, Nigeria’s education sector, which is supposed to be the major and fastest agent of change and civilization, is as a result of these failures, presently burdened and overwhelmed.

To further demonstrate this fact, with the nation’s current population of over 195.9 million, 45 per cent of which are below 15 years, there is a huge demand for learning opportunities translating into increased enrolment. This has created challenges in ensuring quality education since resources are spread more thinly, resulting in more than 100 pupils for one teacher as against the UNESCO benchmark of 35 students per teacher and culminating in students learning under trees for lack of classrooms.

Going a step further to prove how out of order the sector has turned out to be in the past few years, strong evidence abounds that in the 2017 Appropriation Act, N448.01 billion representing 6.0 per cent of the N7.30 trillion budgets was allocated to education.

Similarly, the budgetary allocation for education in 2020 is N671.07 billion constituting 6.7 per cent. Of the N671.07 billion allocated to the Federal Ministry of Education, the sum includes the statutory transfer allocated to the Universal Basic Education Commission (UBEC), which is N111.79 billion.

UBEC intervention funds as we know are focused on collaboration with other state actors towards improving access to basic education and reducing Nigeria’s out-of-school children.

When compared with 2019, there is, however, a 44.37% increase in capital expenditure, yet, a shortfall in the UNESCO’s benchmark.

Moving away from lamentation to finding a solution to the deteriorating education sector, it is important to underline the fact that if the federal government wants progress and development for the nation, there is no reason why everything that will lead to success must not be done.

To catalyse the process, this is the time to recognise that any successful nation/leadership owe its success to certain causative factors. If it loses sight of these, the success of such a nation/leadership or survival may soon be in jeopardy.

Foresighted leader and nation don’t forget for one moment that education sector holds the keys to the success and development of any nation both socioeconomically and scientifically and I hold the opinion that it will definitely be tough to make progress as a nation with the way education sector is presently handled here in the country.

To avert the above forecast, the government at all levels must urgently commit to mind that globally; ‘the relationship between employers/employees is always strained, always headed toward conflict. It is a natural conflict built into the system. Unions do not strike on a whim or use the strike to show off their strength. They look at strikes as costly and disturbing, especially for workers and their families. Strikes are called as last resort. And any government that fails to manage this delicate relationship profitably or fails to develop a cordial relationship with the workers becomes an enemy of not just the workers but that of the open society and, such society will sooner than later find itself degenerate into chaos.

Another important point that the present administration must ponder on to help understand the need for a truce with NAU/SSANU is that university workers (academic and non-academic staff alike) not ‘only teach errant students, but they also parent them, pamper them wherever that is called for, discipline and guide them, take the worst attitude in them and turn it into something more engaging and productive, yet, they are barely acknowledged by society, let alone giving them their just rewards. Many suffer from depression, psychological trauma, and even suicidal tendency out of a sense of inadequacy at various intervals. They work so hard for so little.

Lastly, for the sector to again produce excellent graduates in different fields of human endeavours, it needs to be adequately funded; its policies reworked to meet the 21st-century demands.

Above all, as argued elsewhere, the government must find ways of returning schools created, funded and run by the regions which they forcefully took over as such venture has turned out to be negative.

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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Who Should Measure PR?

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Who should measure PR

By Queen Nwabueze

In public relations, just as you and I can’t deny that PR starts and ends with research, we have agreed that Ad value equivalencies, impression counts, and clicks ALONE don’t measure awareness and other outcomes.

Therefore, unless you plan and measure in a way that matters, campaign success may not be in the cards. At least, not in the way to pass the test of a true expert.

Let’s make this straight. Are you into the hallowed communications profession in whatever form? Never underestimate the benefits of measuring your Public Relations campaigns. DON’T measure using empty or vanity metrics.

Most importantly, engage an independent PR measurement and evaluation service to do the job. Employ this trio to get insights that won’t only help you with sound strategy, but would also make future campaigns planning a walkover for you.

When we hear research, evaluation or measurement in Public Relations, it is important to carry them out the proper way. Yes, really.

It is abominable to burden the most junior member of your team or even yourself to just contact a few consumers and find out what they think about a thing.

In the agency, in the client side, we do this shoddy research, time without number. It’s just so important that we stop already. PR measurement is serious business. Anyone who must undertake any communication research whether basic or in-depth has to be trained and certified for the job.

Are you managing a client? Do you know that merely taking a simple walk to tell your client, what value Public Relations brings to him shouldn’t be your thing? You know why? You’d be biased. You don’t even know how to go about it. Pity, but you will succeed not helping yourself either. Your answers to questions would be so incomplete and jaundiced that they will lead to ill-founded programmes in all your efforts, going forward.

Wait a sec! Do we still need to beam the searchlight any further? Do we still need an answer to “Who should measure PR?” Oh no, we don’t! It’s clear: It is the job of a brand media intelligence and measurement service to do so. They are armed. You’re not. Kindly use them in e.v.e.r.y. research.

In reality, some high-end investment is needed to become competent in communications measurement and evaluation. PR measurement experts have already put in everything it takes to undertake valid research. You have not. Because of time and other resources, you may not be able to go through the drudgery, anyway.

Take for example, a strong PR measurement consultant such as P+ Measurement Services. What P+ did is exemplary. From the outset, the agency tasked itself to become a bonafide member of the International Association of Measurement and Evaluation of Communication (AMEC).

Recall that AMEC is the measurement body of our glorious profession, globally. Not every PR insights and analytics consultant in Nigeria is a member, remember?

You might be wondering: “What does this do for me?” A lot! The adoption of the measurement principles endorsed by the global measurement body is what shall help you prove your value indeed.

Objectivity in the quality of the measurement and evaluation is guaranteed. In everything in life, it is always advisable to use professionals for salutary results. Need we say more?

The Takeaway:

Sincerely, the measurement leg of the communications profession has remained knotty for a long time. Trained and certified external researchers like P+ Measurement Services should be your ally, every step of the way.

In all honesty, hyping the benefits of using independent measurement outfits can’t be too much. P+ knows the business. Just give them the specifics of your research problem and go to sleep.

Need to talk to someone immediately, kindly contact these hotlines: +234-818-1928-989. Quickly, send a mail to info@pplusmeasurement.com.ng and get a response in a minute.

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